California State Contractors Law and Business Study Guide Questions with 100% Complete Answers, Rated A+

Who must be licensed as a contractor? - All who construct or alter any residential or commercial work that cost more than $500 (labor+material) How old do you have to be to obtain a contractor license? - 18 years old How many years of experience are required to obtain a contractors license - At least 4 years at a journeyman level. Is anyone exempt from the requirements to be licensed? - Yes. 1)Representatives of Federal, state, County, City, or other local governments. 2) Officers of a court acting within the scope of their own business. 3) Owners or tenants engaged in petroleum or gas operations. 4) Manufacturers of mobile homes. 5) Employees working for wages as their sole compensation. 6) Property Owners who build or improve their own property. Licenses are issued - Per entity. Individual license, Partnership License, Joint Venture License etc. Each count as an entity Does California recognize contractor licenses issued by other states or countries? - No. But it does have reciprocal agreements with some states that recognize the experience qualification. What happens if you contract without a license? - Misdemeanor charge. Unlicensed contractors face potential sentences of up to 6 months in jail and/or $500 fine, and potential administrative fines of $200-$15,000 because it is illegal to contract without a contractor's license. Are there educational requirements to obtain a contractor license? - No. However, many community colleges and private schools offer instruction in vocational education. Can technical training substitute the required experience? - Yes. Education in the trade or technical training and apprenticeship training can substitute the 4 years of experience required as long as the applicant has a min. Of 1 year of practical experience. Are there special requirements for contractors who work with asbestos? - Yes. Special knowledge and training is needed. Certification, registration, reporting and safety requirements are required by the DOSH, OSHA and C.S.L.B Are all applicants submitted to a criminal background check? - Yes. All applicants must submit a full set of fingerprints. This requirement comes with additional fees including a live-scan fee. What is the contractors application processing fee? - The non refundable processing fee of $300 + $75 for each additional classification. What is the total amount of fees I must pay to obtain a contractors license? - $480. This amount includes the non refundable processing fee of $300 and two year initial license fee of $180. Fees are subject to change. Current fees are printed on the application forms and notices. How often must I renew my active license? - Every 2 years. there is a fee for renewing your license Will I receive notice before my active license expires? - Yes, approximately 60 days before the license expires the CSLB will send a renewal application. What is the active license renewal fee? - Renewal for an active license is $360. What is the renewal fee for an active license that is not renewed in time? - $540. This includes the renewal fee of $36o+ the deliquent late fee of $180 (active license) What is the inactive license renewal fee? - Renewal fee for an inactive license is $180. Inactive licenses must be renewed every 4 years.