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Domain 1: Licensing Requirements and Classifications (12 Questions)
Q1: A contractor operates as a sole proprietorship but wants to add a partner to share
business responsibilities. Under California Contractors License Law, what must occur
regarding the contractor's license?
A. The existing license automatically covers the new partnership without any filing
B. The partnership must apply for a new license, as sole proprietorship licenses are
non-transferable to other business entities
C. The sole proprietor can simply notify CSLB of the change within 90 days
D. The partnership can operate under the sole proprietor's license for up to one year
while processing the new application
Correct Answer: B
Rationale: Under California Business and Professions Code (BPC) Section 7075, a
contractor's license is issued to a specific business entity and is not transferable. A sole
proprietorship license is personal to the individual and cannot be transferred to a
partnership, corporation, or LLC. When changing business structure from sole
proprietorship to partnership, the new partnership entity must apply for its own license.
Distractor A is incorrect because licenses are never automatic or transferable between
entity types. Distractor C is incorrect because notification alone is insufficient—a new
application is required. Distractor D is incorrect because there is no grace period;
operating without the proper license constitutes unlicensed contracting (BPC §7028).
,Q2: A "B" General Building Contractor is bidding on a project that involves installing a
new roof, electrical panel upgrades, and kitchen cabinetry installation. Under CSLB
classification rules, which statement is correct?
A. The "B" contractor can only perform the roofing work and must subcontract all
electrical and cabinetry work to C-10 and C-6 licensees respectively
B. The "B" contractor may perform all work because framing/carpentry (cabinetry) and
electrical work are considered unrelated trades, satisfying the
two-or-more-unrelated-trades requirement
C. The "B" contractor must subcontract the electrical work to a C-10 electrician but may
perform the roofing and cabinetry work
D. The "B" contractor may perform the entire project because the work involves framing
for the structure (roof) and at least two unrelated trades
Correct Answer: D
Rationale: Under California Code of Regulations (CCR) Title 16, Section 832, a "B"
General Building Contractor may perform any construction work involving two or more
unrelated building trades on an entire structure or projects involving framing or
carpentry. The "B" classification specifically allows contractors to take prime contracts
for projects requiring two or more unrelated trades, or any project involving framing or
carpentry. Here, the roofing involves structural framing, and the project includes multiple
unrelated trades (roofing, electrical, cabinetry). Distractor A is incorrect because a "B"
contractor is not limited to only one trade. Distractor B is partially correct about the
two-trade rule but misstates the reasoning—roofing is not merely carpentry but
structural work. Distractor C is incorrect because the "B" contractor may supervise and
contract for all trades, though they typically must use specialty contractors for
trade-specific work unless they hold those classifications.
Q3: An applicant for a CSLB contractor license has 3 years of experience as a
journeyman carpenter and 1 year as a construction supervisor. However, 3 years of this
,experience occurred 12 years ago. Under current CSLB experience requirements, what is
the status of this application?
A. The application will be approved because the applicant has 4 total years of qualifying
experience
B. The application will be denied because only 1 year of experience falls within the
required 10-year window
C. The application will be approved with the requirement to complete additional
continuing education
D. The application will be denied because supervisor experience cannot be combined
with journeyman experience
Correct Answer: B
Rationale: Per BPC Section 7065 and CCR Section 823, applicants must have at least 4
years of journeyman-level experience within the last 10 years immediately preceding the
application. The 10-year lookback period is strict—experience older than 10 years does
not qualify. Here, only 1 year (the supervisor role) occurred within the last 10 years,
making the applicant ineligible. Distractor A is incorrect because it ignores the critical
10-year recency requirement. Distractor C is incorrect because continuing education
cannot substitute for the minimum experience requirement. Distractor D is incorrect
because supervisor/foreman experience and journeyman experience can be combined,
provided both fall within the 10-year window.
Q4: A licensed contractor allows their license to expire and continues to operate for 45
days before discovering the lapse. What are the consequences and reinstatement
requirements?
A. The contractor may reinstate immediately by paying the renewal fee plus a 50%
penalty with no other consequences
B. The contractor must apply for a new license, as licenses expired more than 30 days
cannot be reinstated
, C. The contractor may reinstate within 5 years by paying renewal fees and penalties, but
cannot legally contract during the lapse period
D. The contractor may retroactively reinstate to cover the 45-day period by paying
double the renewal fee
Correct Answer: C
Rationale: Under BPC Section 7141, a contractor may renew an expired license within 5
years by paying all accrued renewal fees and penalties (CCR Section 868). However,
BPC Section 7028 makes it a misdemeanor to engage in contracting without an active
license. The 45-day lapse constitutes unlicensed contracting, and work performed
during this period is illegal. Distractor A is incorrect because while reinstatement is
possible, the contractor cannot legally contract during the lapse, and penalties are more
substantial than 50%. Distractor B is incorrect because the 5-year reinstatement window
applies, not 30 days. Distractor D is incorrect because retroactive reinstatement to
legitimize unlicensed work is prohibited—CSLB does not backdate license
reinstatements.
Q5: A qualifying individual (RME or RMO) serves as the qualifier for three active
contractor licenses. A fourth company requests that this individual serve as their
qualifier. Under CSLB regulations, what is the permissible arrangement?
A. The qualifier may serve as RMO for the fourth company if they own at least 20% of
that company
B. The qualifier may serve as RME for the fourth company if they reduce their ownership
in one existing company to below 10%
C. The qualifier cannot serve more than three licenses simultaneously under any
circumstances
D. The qualifier may serve the fourth company if one of the existing licenses is for a
specialty classification only
Correct Answer: C