CSLB California Contractor Law and Regulations 1 — Questions and Answers
Question 1: Under California Business and Professions Code, what is the maximum civil penalty the CSLB can impose for an unlicensed contractor citation?
- $2,500
- $5,000
- $10,000
- $15,000 (Correct answer)
Correct answer: $15,000
The CSLB can issue citations with civil penalties up to $15,000 per violation for unlicensed contracting activity.
Question 2: Which California code primarily governs the licensing of contractors in California?
- California Labor Code
- California Civil Code
- California Business and Professions Code (Correct answer)
- California Health and Safety Code
Correct answer: California Business and Professions Code
The Contractors State License Law is found in the California Business and Professions Code, Sections 7000–7191.
Question 3: What is the minimum dollar threshold for a project that requires a contractor to hold a valid CSLB license?
- $100
- $500
- $1,000 (Correct answer)
- $5,000
Correct answer: $1,000
Any project with a combined labor and materials cost of $500 or more requires the contractor to hold a valid CSLB license.
Question 4: How long does an unlicensed contractor have to request a hearing after receiving a CSLB citation?
- 15 days
- 30 days (Correct answer)
- 60 days
- 90 days
Correct answer: 30 days
A cited unlicensed contractor has 30 days from the date of the citation to request a formal hearing to contest it.
Question 5: Under California law, an unlicensed contractor who performs work requiring a license may NOT:
- Hire subcontractors
- Sue in court to collect payment for the work (Correct answer)
- Purchase materials tax-exempt
- Advertise services online
Correct answer: Sue in court to collect payment for the work
California law bars unlicensed contractors from pursuing legal action to collect compensation for work that required a contractor's license.
Question 6: Which entity administers the CSLB and oversees contractor licensing in California?
- Department of Consumer Affairs (Correct answer)
- Department of Industrial Relations
- Department of Housing and Community Development
- Office of the Attorney General
Correct answer: Department of Consumer Affairs
The CSLB operates under the California Department of Consumer Affairs, which oversees many professional licensing boards.
CSLB California Contractor Law and Regulations 1
Under California Business and Professions Code, what is the maximum civil penalty the CSLB can impose for an unlicensed contractor citation?