California Contractors License Schools

California Contractors License Schools
Preparing Students for the California Contractor's Exam Since 1982.

Thursday, October 29, 2015

2016 California Contractors License Bond Increase

The Governor has recently signed Senate Bill 467 increasing the bond amount for licensed contractors from $12,500.00 to $15,000.00. This will not affect the Bonds of Qualifying Individuals (bonds for RME's and RMO's who own less than 10% of the business). Although the bill itself does not set an exact time, it is my understanding that the Contractors State License Board intends to make it effective on January 1, 2016. If you are a licensed contractor, this probably means that you will be getting a supplemental bill for the increase. Since it is a 20% increase, you can expect new and renewal bonds to cost about 20% more. If you are already bonded, you will only have to pay a pro-rata increase based on the amount of time that you have left on your current bond. For example, if you purchased a 2-year bond one year ago, you will be billed approximately 10% of your original premium, or half the 20% increase.

Monday, June 22, 2015

Take a look at our video detailing how the process of preparing for the California Contractor's License exam works.

Sunday, June 14, 2015

Social Security Number No Longer Required to Obtain a Contractors License

Due to Senate Bill 1159 professional and vocational licensing in California will no longer require a Social Security Number (SSN), effective no later than January 1, 2016. This affects those obtaining a contractors license among many others. These types of licenses can now be obtained with only an IRS-issued ITIN (Individual Taxpayer Identification Number).

The practicality of this is dubious since you need to have a contractors license bond in order to have an active license, unless you can make a cash deposit of $12,500.00. A bond usually requires a credit check and therein lies the dilemma.

Whether you are for it or against it, it is now the law of the land. The Contractors State License Board is being proactive and accepting applications now with only ITIN's, ahead of the mandated effective date.

Wednesday, February 18, 2015

New C-22 Asbestos Abatement Contractor Classification Became Effective on January 1, 2015

The State has added a new classification to the 43 existing classifications. Prior to this year, the Asbestos Certification was the only option to legally remove asbestos. The problem was that contractors were limited to removing asbestos within their classification. So a drywall contractor could not remove asbestos outside of the scope of his/her drywall classification.

The argument to justify the new classification was that if a contractor was qualified to remove asbestos from a home within their classification, why not allow that same contractor to remove asbestos from any part of the house since the process is the same?

The law describes the C-22 as:

"An asbestos abatement contractor performs abatement, including containment, encapsulation, or removal, and disposal of asbestos containing construction materials, as defined in Section 6501.8 of the Labor Code, in and on buildings and structures. 
All work performed and all documentation prepared by an asbestos abatement contractor shall be done in accordance with regulations and requirements of the Department of Industrial Relations’ Division of Occupational Safety and Health (DOSH).
The C-22 Asbestos Abatement contractor classification operates as a stand-alone specialty contractor classification for asbestos abatement work, regardless of any other classification(s) that may be held by the licensed contractor, and functions within the scope of the contractor’s DOSH registration."

The Contractors State License Board requires that a C-22 contractor be registered with DOSH in order to be licensed in that classification. Proof needs to be submitted to the Board prior to any work being done in this classification. The State will issue the license without it, but proof of registration must be received by the Board within 90 days of licensure and the contractor cannot perform any asbestos work until the Board receives it.