CSLB CONTRACTOR S LAW COMPREHENSIVE STUDY GUIDE EXAM Q&A BUNDLE / NEWEST!!
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.
What is the renewal fee for an inactive license that is not renewed in time? ✔️$270. This includes the renewal fee of $180+ the
deliquent late fee of $90 (Inactive license)
, What is the minimum operating capital that you must have to qualify to be a contractor? ✔️$2,500. Operating capital is defined
as your current assets minus your current liabilities. (C.A.-C.L.=O.C.)
You must notify the state of any changes within how many days? ✔️90 days. This includes changes in business name or address,
as well as changes in personnel and business type.
Can I renew my current license if there have been changes in license structure? ✔️No. If there are changes in License structure
you cannot renew your license, you have to apply for a new one. Changes in license structure include: change in business entity,
corporate registration number and owner.
Can your license be re-issued? ✔️Yes. If your license has been expired between 3-5 years it can be re-issued.
What is another term for the "qualifier"? ✔️The qualifier is the Test taker a.k.a the person to whom the license is going to be
issued.
What is the qualifier called if he/she is an individual? ✔️When a license is issued to an individual, the name often given to that
qualifying individual is "owner".
What is the qualifier called if he/she is a partner? ✔️Qualifying Partner (Q.P) is the title given to the qualifying individual in a
partnership license.
What is the qualifier called if he/she is a officer? ✔️If the qualifier is an officer, the title given to the individual is RMO
(Responsible Managing Officer).
What is a qualifier called if he/she is a employee? ✔️If the qualifier is an employee, the title given to the individual is RME
(Responsible Managing Employee).
How many hours is an RME required to work? ✔️A Responsible Managing Employee is required to work a minimum of 32 hours
or 80%
How many licenses can an RME qualify for at a time? ✔️A Responsible Managing Employee (RME) can only qualify for one
license at a time.
Other qualifiers, besides RMEs and RMOs can qualify for how many licenses at a time? ✔️They can qualify up to 3 licenses at a
time.
Can you lend someone your license? ✔️No.The license must only be used by the person to whom it is assigned to. Using
someone else's license or license # or letting someone use your license or license # is illegal and punishable by law.
Can you abandon a project to finish another? ✔️No. Such use of funds are causes for a disciplinary action. It is qualified as
larceny with punishment ranging from a misdemeanor to a felony.
Can you use misleading advertisement? ✔️No. It is a misdemeanor to use false, misleading, or deceptive advertising as an
inducement to enter into any contract for a work of improvement.
What is a joint venture license? ✔️A combination of 2 licenses. A joint venture contractors license is a license issued to two or
more licensees together whose licenses are current and active.
When does a Joint Venture expire? ✔️2 Years after it was first given. Since a joint-venture license is made up of 2 individual
active licenses for a specific purpose it has a short active life of 2 years.
If a QP (qualifying partner) leaves, what can the remaining party file to get more time? ✔️A continuance of up to 1 year is
granted in order for the remaining party to complete the project.
Can a continuance be extended? ✔️Yes. The registrar may approve an extension to the one year provision if additional time is
necessary to complete projects contracted for or commenced before the disassociation with a qualifier or his/her death.
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.
What is the renewal fee for an inactive license that is not renewed in time? ✔️$270. This includes the renewal fee of $180+ the
deliquent late fee of $90 (Inactive license)
, What is the minimum operating capital that you must have to qualify to be a contractor? ✔️$2,500. Operating capital is defined
as your current assets minus your current liabilities. (C.A.-C.L.=O.C.)
You must notify the state of any changes within how many days? ✔️90 days. This includes changes in business name or address,
as well as changes in personnel and business type.
Can I renew my current license if there have been changes in license structure? ✔️No. If there are changes in License structure
you cannot renew your license, you have to apply for a new one. Changes in license structure include: change in business entity,
corporate registration number and owner.
Can your license be re-issued? ✔️Yes. If your license has been expired between 3-5 years it can be re-issued.
What is another term for the "qualifier"? ✔️The qualifier is the Test taker a.k.a the person to whom the license is going to be
issued.
What is the qualifier called if he/she is an individual? ✔️When a license is issued to an individual, the name often given to that
qualifying individual is "owner".
What is the qualifier called if he/she is a partner? ✔️Qualifying Partner (Q.P) is the title given to the qualifying individual in a
partnership license.
What is the qualifier called if he/she is a officer? ✔️If the qualifier is an officer, the title given to the individual is RMO
(Responsible Managing Officer).
What is a qualifier called if he/she is a employee? ✔️If the qualifier is an employee, the title given to the individual is RME
(Responsible Managing Employee).
How many hours is an RME required to work? ✔️A Responsible Managing Employee is required to work a minimum of 32 hours
or 80%
How many licenses can an RME qualify for at a time? ✔️A Responsible Managing Employee (RME) can only qualify for one
license at a time.
Other qualifiers, besides RMEs and RMOs can qualify for how many licenses at a time? ✔️They can qualify up to 3 licenses at a
time.
Can you lend someone your license? ✔️No.The license must only be used by the person to whom it is assigned to. Using
someone else's license or license # or letting someone use your license or license # is illegal and punishable by law.
Can you abandon a project to finish another? ✔️No. Such use of funds are causes for a disciplinary action. It is qualified as
larceny with punishment ranging from a misdemeanor to a felony.
Can you use misleading advertisement? ✔️No. It is a misdemeanor to use false, misleading, or deceptive advertising as an
inducement to enter into any contract for a work of improvement.
What is a joint venture license? ✔️A combination of 2 licenses. A joint venture contractors license is a license issued to two or
more licensees together whose licenses are current and active.
When does a Joint Venture expire? ✔️2 Years after it was first given. Since a joint-venture license is made up of 2 individual
active licenses for a specific purpose it has a short active life of 2 years.
If a QP (qualifying partner) leaves, what can the remaining party file to get more time? ✔️A continuance of up to 1 year is
granted in order for the remaining party to complete the project.
Can a continuance be extended? ✔️Yes. The registrar may approve an extension to the one year provision if additional time is
necessary to complete projects contracted for or commenced before the disassociation with a qualifier or his/her death.
