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.

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

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.

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.

How long does it take to get a test date and can you get a faster contractors exam date?

The first correspondence you receive from the Contractors State License Board after submitting an application for a California Contractors License is a letter informing you that your application has been received. This letter will also provide you with your unique Application Fee Number and a PIN. You can use this to log into the State's website to track the progress of your application. About a week later you will receive a letter from the state informing you that you have a test date in about three to four weeks. So you can expect to test about five to six weeks from the time you submit your application. This is assuming the state does not require any corrections or additional proof of your experience.

You can take the test faster if you like. There are two ways this can be accomplished:

(1) You can include a letter with your application addressed to the Expedite Committee. This committee meets once a week and reviews such requests. If granted you can expect to test much sooner (maybe two weeks) and have your license number issued much quicker than the three weeks it normally takes after you pass the exams. Expedites are rarely granted except under extremely urgent situations that were not under the control of the applicant, especially now since you have the next option discussed below.

(2) The other option is to do what is called a "Walk-In". Once you are notified that you have a test date in the future, you can just show up at a State testing center at 7:30 a.m. on any weekday and, if they have room, they will test you! Some days they don't test so you should call in advance and check to see if they are testing on the day you would like to do a Walk-In (be sure to specify which city). They almost always have room, especially now since they are only testing about half the number of applicants that they were just a few years ago. I have not had one student call me and say that they could not get in. This way you are testing as fast as if you were approved for an Expedite. The only difference is you will still have to wait the three weeks after you pass to get your license number.

Keep in mind that the three weeks it takes to get your license number after your exam is assuming you pay your license fee and get your bond(s) right after your test.

You cannot bid on a contract until you have a license number, even if you have passed the test.

The California Contractors License Exam

A lot of you are probably wondering what kind of test is involved in order to get a contractors license. There are actually two tests that you must pass, one on law and one on your trade, unless you are getting a C-61 classification which has no trade exam. If you pass one and fail the other, you only have to retake the one that you failed.

The questions are multiple-choice (A, B, C or D). There are 115 questions on the law test and a passing score is 66%. The trade tests range between 100 and 120 questions, depending on the trade. The scores required to pass range between 60% to 76%.

If you fail, the State charges $60.00 to re-take the test(s). You can keep taking the test for up to eighteen months and then your application voids and you must re-apply. Your application also voids if you fail (or fail to appear) and don't pay the re-exam fee within the 90-day time limit. Note that if you fail to appear twice your application will void as well. If you re-apply within 60 days of your void date you will not have to prove your experience again.

Once you have passed the test and obtained your license you do not have to test again. There are no continuing education requirements either. If you pass your test(s) and do not move forward with getting the license, for whatever reason, it is good for five years. So, if you re-apply you will not have to take the test(s) that you passed.

The key, of course, is good preparation.

For more detailed information, see this article http://ezinearticles.com/?California-Contractors-License---How-To-Obtain-One&id=8066189

Does Construction Experience Count if it Was Obtained in the Military?

Military experience absolutely does count when applying for a contractors license. As a matter of fact it affects the 10 year limitation and you might be able to get the whole process sped up because of your service.

The Contractors License Law and Reference Book states:

"An applicant shall not be jeopardized in computing time for service in the armed forces of the United States during a National Emergency and the length of service may be added to the 10 years mentioned above."

This means that if you did serve during a National Emergency in the last 10 years, it extends the time limitation. Let's say you served 3 years. You now can count experience in your trade going back 13 years, including your military service if it was engaging in or directly supervising the trade for which you are applying.

Another benefit if you served in the military is The Military Veterans Application and Assistance Program. See the following:

"The Military Veterans Application Assistance Program aids those who are transitioning from military service to civilian employment. In some cases, veterans possess transferable skills that help meet the minimum experience and training requirements to apply for a contractor’s license. This program offers expedited processing of veterans’ applications, including the evaluation of transferable military experience and training, as well as education.
CSLB assists military veterans by providing:

• Expedited application processing when appropriate;
• Direct contact with CSLB staff;
• Licensing staff specially trained to evaluate transferable military training and experience from all branches of the military in an effort to meet minimum licensure requirements; and
• Evaluation of college transcripts to help verify acceptable educational credit (in addition to military training and experience)."

On a personal note: Thank you for your service!