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Panel advances licensure fairness bill to limit total disgorgement for contractors
California State Senate Judiciary Committee · January 13, 2026
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Summary
SB 342 would limit total disgorgement when contractors are later found to have had short license lapses, allowing recovery for work done while licensed; supporters said current law can create inequitable windfalls for owners and ruin contractors, and the committee advanced the bill.
The committee advanced SB 342, the Contractors Licensure Fairness Act, which modifies California contractor licensing consequences so that judges can limit disgorgement to the period a contractor actually performed work while unlicensed rather than…
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