CSLB Law & Business ExamBusiness Organization and LicensingMedium
A contractor lets his license go inactive due to a temporary lack of work but continues to pay his renewal fees on time every two years. Which statement best describes his legal status?
- AHis license is automatically canceled after one renewal cycle in inactive status
- BHe may continue bidding and performing contracting work as long as fees are current
- CHe may not perform or bid on contracting work while inactive, but the license remains renewable
- DHe must retake the trade examination before renewing an inactive license
Show answer & explanationAnswer & explanation
Correct answer: C. He may not perform or bid on contracting work while inactive, but the license remains renewable
An inactive license cannot be used to perform or bid on contracting work, but it remains valid for renewal purposes as long as the licensee continues to pay fees, allowing reactivation later without retesting.
Why the other options are wrong
- A. Inactive status does not automatically expire after one cycle if fees are paid.
- B. Inactive status specifically prohibits performing or bidding on contracting work.
- D. Reactivation does not require retaking the trade exam, only paperwork and fee payment.
Inactive License Status
A license status allowing a contractor to keep their license on file without performing contracting work, while still renewing it periodically.
- Inactive licensees cannot bid or contract work
- License remains renewable every two years with fees
- Can be reactivated later without new exams if in good standing
Memory trick: 'Inactive means idle, not invalid' — you keep the license alive but can't work.