SB364

Senate Bill 364 amends Arkansas law regarding legal actions available to contractors who have violated state licensing requirements. Under current law, contractors who operate in violation of licensing statutes are generally barred from enforcing contracts or seeking compensation through quantum meruit. The bill maintains this general prohibition but creates a new, narrow exception. Specifically, it allows unlicensed contractors to pursue claims for unjust enrichment or quantum meruit if two conditions are met: the contractor must have timely paid all fines assessed by the state licensing board, and the contractor must have properly applied for a valid contractor's license. This bill effectively provides a pathway for unlicensed contractors to recover payment for work performed, provided they take steps to rectify their regulatory standing and pay state-mandated penalties.