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Law and Order CHAP 1
Contractors License Law
| Question | Answer |
|---|---|
| 1E: RME’s must work at least | 32 hours a week or 80% whichever is less, they cannot own any part of the business |
| 1E: cases where RME can be QI for multiple liscenses | both licensee’s are subsidiaries (20%)/ both licensee’s share majority partners |
| 1E: What is the max number of licensees you can be a QI for | 3 |
| 1F: What are standard consequence for 1st offense of contracting without license | 6 months in jail max/ $500 fine max |
| 1F: When is contracting without a license considered a felony? | any project that is covered by a state of emergency or a disaster |
| 1F: What are consequence for 2nd offense “contracting without license” | 20% of contract/$4,500 plus minimum 90 days jail |
| 1F: What is the fine for advertising for work you are not licensed for | $700-$1000 |
| 1F: What is the fine for a contractor who contracts with an unlicensed contractor or allowing him to use license | up to $15,000 |
| 1F: CSLB has established the ______ that focuses on unlicensed business | Statewide Investigative Fraud Team (SWIFT) |
| 1G: What is the amount of bond or cash required to be posted for the business? | $15,000 |
| 1G: In addition to the licensee, what size bond needs to be posted for the RME if he is the QI? | $12,500 |
| 1G: How Soon must a bond be filed with the CSLB? | within 90 days of the effective date |
| 1G: How long does an individual have to file a claim against a bond? | 2 years following the license period of the bond |
| 1G: If CSLB requires a contractor to post a higher bond, what are restrictions? | no less than $15,000 higher no more than 10x higher |
| 1H: When MUST the license number be included on a truck or commercial vehicle? | If the vehicle indicates that he/she is a contractor |
| 1H: What size must the license number be on a truck or commercial vehicle | ¾” |
| 1A: The name of the Law created by the Board is | The Contractors License Law |
| 1A: how many classifications does the CSLB regulate | 43 |
| 1B: How many years experience needed to be QI? | 4 full years in the past 10 years |
| 1B: Does college experience or training count towards experience? | only for up to 3 years |
| 1B: How much operating capital do you need to qualify? | $2500 |
| 1B: Upon failure of exam, applicant must apply for another test within | 90 days |
| 1B: Applicant is given a total of _____ to pass the exam | 18 months |
| 1C: Exam may be waived if applicant has passed both exams within | last 5 years |
| 1C: Exam may be waived if applicant has served or is serving as QI in same classification within | last 5 years |
| 1C: Upon death of a liscense holder, family member may be waived from exam if | been actively engaged in business for 5 of the past 7 yrs |
| 1D: What are the limitations of the work a B Contractor can do himself? | Must include carpentry work OR at least two unrelated trades. |
| 1D: What are two “unrelated trades” a B Contractor can NEVER do himself? | Fire Protection & Water Well Drilling |
| 1E: What is a RME and a RMO | Responsible Managing Employee & Responsible Managing Owner |
| 1E: steps for keeping a liscense if the RME/RMO leaves? | Filing a Notice of Disassociation and App for replacing with new QI within 90 days |
| 1H: Who is REQUIRED to show their name and license on vehicles? What size letters? | Plumbers/Well drillers/Electrical sign contractors, on all commercial vehicles in 1 ½” font |
| 1H: What is a retroactive renewal of a license | if a licensee misses his expiration date he may petition within 90 days for a renewal |
| 1H: If a licensee misses his renewal period how long until his license becomes void | 5 years |
| 1H: How does a licensee renew his license? How often must he/she renew? | must complete a proper renewal form and pay a renewal fee every two years |
| 1I: If a licensee dies, the license is canceled unless the immediate family files a continuation within | 90 days |
| 1I: How long can a family member operate the deceased license before becoming qualified? | no more than 1 year |
| 1I: In a partnership, when is a license cancelled? When must they obtain new? | If ANY member leaves/ if a new member joins, they must obtain new license w/in 90 days |
| 1I: When can a licensee designate a responsible managing individual to act in his/her place | if he/she joins the armed forces |
| 1I: What are two distinct advantages to inactivating your license while not contracting | not required to post bond/ renew every 4 years |
| 1I: If a licensee changes the name or address he/she must notify the Registrar within | 90 days |
| 1J: When does the Registrar have authority to take disciplinary action against a licensee | when they violate the Contractors License Law |
| 1J: A complaint against a Licensee must be written and filed within ______ from when the act occurred | 4 years |
| 1J: How long does a contractor have to appeal a citation against his license | 15 working days |
| 1J: If a license is revoked, how long before the licensee may obtain a new license | at least one year |
| 1J: What is an injuction/ why would you receive one | it prohibits from doing work, may be filed if unlicensed/ in severe violation |
| 1K: What is Mediation | When a third party assists, facilitates, and encourages parties to reach a negotiated settlement |
| 1K: What is Arbitration? | When a third party decides on a dispute, the owner and contractor must both agree to the arbitration process |
| 1K: Under what circumstance can CSLB require the contractor to attend mandatory arbitration? | if the amount requested is under $12,500 |
| 1K: Under what circumstance can a contractor voluntarily choose arbitration? | if the amount requested is between $12,500 - $50,000 |
| 1K: If the amount requested is over $50,000 the dispute must be settled through | litigation |
| 1K: What are limits for an individual and business in small claim courts | individual no more than $10,000, business no more than $5,000 |
Created by:
yobryan2009
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