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California State Contractors License Law and Business Test Study Guide

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California State Contractors License Law and Business Test Study Guide 1. Who needs to hold a contractor's license? - Answer: Anyone involved in construction or modification of a project costing $500 or more is required to be licensed. 2. What is the minimum age to obtain a contractor’s l...

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  • August 3, 2024
  • 16
  • 2024/2025
  • Exam (elaborations)
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California State Contractors License Law and Business Test Study
Guide
1. Who needs to hold a contractor's license?

- Answer: Anyone involved in construction or modification of a project costing $500 or more is
required to be licensed.



2. What is the minimum age to obtain a contractor’s license?

- Answer: 18 years old.



3. What types of contractor licenses are available?

- Answer: There are individual, partnership, corporation licenses, and joint venture licenses, which
combine two active licenses for a specific purpose.



4. Does California accept contractor licenses from other states or countries?

- Answer: No, California does not recognize licenses from outside the state.



5. What are the consequences of contracting without a license?

- Answer: It is classified as a misdemeanor, which can result in jail time, fines, and administrative
penalties.



6. Are there any educational prerequisites to apply for a contractor's license?

- Answer: No, there are no educational requirements.



7. Can practical experience from technical training or apprenticeships substitute for the required four
years of training?

- Answer: Yes, as long as the applicant possesses at least one year of practical experience.



8. Are all applicants subject to a background check?

- Answer: Yes.

,9. What are the total fees needed to obtain a contractor's license?

- Answer: The total is $480. This includes a non-refundable processing fee of $300 and an initial two-
year license fee of $180. Current fees are available on application forms and notices.



10. How frequently must a contractor renew their license?

- Answer: Every two years.



11. Will you be notified before your active license expires?

- Answer: Yes, you will receive a notice 60 days before expiration, but it is your responsibility to be
aware of and renew your license.



12. What is the fee for renewing an active contractor's license?

- Answer: The renewal fee is $360, required every two years.



13. How often must inactive licenses be renewed?

- Answer: Every four years.



14. What is the minimum operating capital required to qualify as a contractor?

- Answer: $2,500.



15. If you need to change your business name or address, or update personnel or business type, how
long do you have to notify the state?

- Answer: You must notify the state within 90 days.



16. If there is a change in ownership or business entity that alters the license structure, must you apply
for a new license or can you renew the existing one?

- Answer: You must apply for a new license.



17. Is it possible to renew an expired license?

- Answer: Yes, a license can be renewed if it has been expired for between 3 to 5 years.

, 18. What is another term for the license qualifier?

- Answer: The test-taker or the individual to whom the license is issued.



19. What is the title of the qualifier if they are the owner?

- Answer: The owner.



20. If the qualifier is a partner, how are they referred to?

- Answer: Qualifying Partner.



21. If the qualifier is an officer, what title do they hold?

- Answer: Responsible Managing Officer (RMO).



22. What title is given to a qualifier who is also an employee?

- Answer: Responsible Managing Employee (RME).



23. What is the minimum number of hours an RME must work?

- Answer: 80% of the workweek, or at least 32 hours.



24. How many licenses can an Owner or Qualifying Partner qualify for simultaneously?

- Answer: A maximum of three licenses.



25. What is the limit for how many licenses an RME or RMO can qualify for at one time?

- Answer: One license.



26. Is it legal to lend your contractor's license to someone else?

- Answer: No, lending your license is punishable by law.



27. Can a contractor abandon a project without a valid legal reason?

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