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Law and Order CHAP 1

Contractors License Law

QuestionAnswer
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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