California State Contractors License
Law and Business Test Study
Guide/177 Questions and Solutions
Who must be licensed as a contractor? - -Anyone who constructs or alters on
any job that costs 500 dollars or more.
-How old do your have to be to get a contractors license. - -18
-What are the types of licenses issued. - -Individual, partnership, or
corporation licenses. Joint Venture licenses are made up of 2 individual
active licenses for a specific purpose.
-Does California recognize contractors licenses from other states or
countries? - -No
-What charge is it to contract without a license? - -Misdemeanor, meaning
potential jail time, fines and administrative fines
-Are there educational requirements to obtain a contractors license? - -No
-Can technical training and apprenticeship training substitute the required
training required for the 4 years needed. - -Yes. As long as the applicant has
a minimum of 1 year of practical experience.
-Are all applicants required to submit to a background check? - -Yes
-What are the total fees I must pay to obtain a contractor license? - -
$480.00. The non-refundable processing fee of $300 and the two year initial
license fee of $180. Current fees are printed on the application forms and
notices.
-How often do I have to renew my license? - -every two years
-Will I receive notice before my active license expires? - -Yes. 60 days, but
remember it is your responsibility to know and renew without being
reminded.
-What is the active license renewal fee? - -$360. You are required to renew
every two years.
-Is there a fee for renewing an active license - -$180.
, -Inactive licenses must be renewed how often? - -Every four years
-What is the minimum operating capital that you must have to qualify to be
a contractor? - -$2500
-If you are changing the business name or address, or changing the
personnel or business type, how long do you have to notify the state of those
changes? - -90 days
-If you change owners or the business entity, changing the license structure,
can you renew your license at the end of the year or do you need to apply for
a new one. - -Apply for a new one.
-Can your old license be renewed? - -Yes. If your license has been expired
between 3 to 5 years.
-Another name for the qualifier. - -The test-taker. Or the person whom the
license is going to be issued.
-What is the qualifier called if he/she is an individual? - -The owner
-What is the qualifier called if he or she is a partner? - -Qualifying Partner.
-What is the qualifier called if he or she is an officer? - -RMO, Responsible
Managing Officer
-What is the qualifier called if he or she is an employee? - -RME,
Responsible Managing Employee
-How many hours is an RME, Responsible Managing Employee required to
work. - -80% or 32 hours
-How many licenses can an Owner or Qualifying Partner qualify for at a time.
- -3
-How may licenses can an RME or RMO qualify for at a time? - -1
-Can you lend your license to someone? - -No. That would be punishable by
law.
-Can you abandon a project without a legal excuse? - -No. This would be
cause for disciplinary action. It is classified as "Breach of Contract".
-A contractor is not prohibited from taking and executing a contract
involving the use of two or more crafts or trades, if the performance of the
Law and Business Test Study
Guide/177 Questions and Solutions
Who must be licensed as a contractor? - -Anyone who constructs or alters on
any job that costs 500 dollars or more.
-How old do your have to be to get a contractors license. - -18
-What are the types of licenses issued. - -Individual, partnership, or
corporation licenses. Joint Venture licenses are made up of 2 individual
active licenses for a specific purpose.
-Does California recognize contractors licenses from other states or
countries? - -No
-What charge is it to contract without a license? - -Misdemeanor, meaning
potential jail time, fines and administrative fines
-Are there educational requirements to obtain a contractors license? - -No
-Can technical training and apprenticeship training substitute the required
training required for the 4 years needed. - -Yes. As long as the applicant has
a minimum of 1 year of practical experience.
-Are all applicants required to submit to a background check? - -Yes
-What are the total fees I must pay to obtain a contractor license? - -
$480.00. The non-refundable processing fee of $300 and the two year initial
license fee of $180. Current fees are printed on the application forms and
notices.
-How often do I have to renew my license? - -every two years
-Will I receive notice before my active license expires? - -Yes. 60 days, but
remember it is your responsibility to know and renew without being
reminded.
-What is the active license renewal fee? - -$360. You are required to renew
every two years.
-Is there a fee for renewing an active license - -$180.
, -Inactive licenses must be renewed how often? - -Every four years
-What is the minimum operating capital that you must have to qualify to be
a contractor? - -$2500
-If you are changing the business name or address, or changing the
personnel or business type, how long do you have to notify the state of those
changes? - -90 days
-If you change owners or the business entity, changing the license structure,
can you renew your license at the end of the year or do you need to apply for
a new one. - -Apply for a new one.
-Can your old license be renewed? - -Yes. If your license has been expired
between 3 to 5 years.
-Another name for the qualifier. - -The test-taker. Or the person whom the
license is going to be issued.
-What is the qualifier called if he/she is an individual? - -The owner
-What is the qualifier called if he or she is a partner? - -Qualifying Partner.
-What is the qualifier called if he or she is an officer? - -RMO, Responsible
Managing Officer
-What is the qualifier called if he or she is an employee? - -RME,
Responsible Managing Employee
-How many hours is an RME, Responsible Managing Employee required to
work. - -80% or 32 hours
-How many licenses can an Owner or Qualifying Partner qualify for at a time.
- -3
-How may licenses can an RME or RMO qualify for at a time? - -1
-Can you lend your license to someone? - -No. That would be punishable by
law.
-Can you abandon a project without a legal excuse? - -No. This would be
cause for disciplinary action. It is classified as "Breach of Contract".
-A contractor is not prohibited from taking and executing a contract
involving the use of two or more crafts or trades, if the performance of the
