Business & LicensingQuestion 442 of 1632

A contractor wants to keep a license on file but does not intend to contract for a period of time. The contractor may:

a.Inactivate the licence, keeping it on record but barring work
b.Simply stop renewing it, since an expired licence still covers work
c.Transfer the licence to a friend until the business starts again
d.Keep contracting, because an inactive licence still allows work

Explanation

§7076.5(a) lets a contractor inactivate the licence by filing the prescribed form with the current certificate, and the holder of an inactive licence is not entitled to practise as a contractor until it is reactivated; §7076.5(c) keeps the inactive licence valid for four years from its due date. The attraction is §7076.5(d): while the licence is inactive the bonding requirements of §7071.6, §7071.8 and §7071.9, the qualifier requirement of §7068, and the workers' compensation requirement of §7125 all fall away, and §7071.6(c) says the same from the bond's side. (b) is not free: §7141(a) does allow renewal within five years of expiration, but the record reads expired for the whole gap and contracting during it is a misdemeanour under §7028(a). (c) is impossible — §7075.1(a) forbids transferring any licence — and (d) is the very thing §7076.5(a) denies.

Law Reference: Bus. & Prof. Code §7076.5(a)-(d); §7071.6(c); §7141(a); §7028(a); §7075.1(a)

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