Business & LicensingQuestion 1395 of 1605
A licensee wants to place a license on 'inactive' status. What is the effect of inactive status?
a.The license is permanently canceled
b.The licensee may not contract, but retains the license number and renews at a reduced fee
c.The contractor may still bid on jobs
d.The bond requirement doubles
Explanation
Under B&P Code section 7076.5, an inactive license means the holder cannot engage in contracting, but preserves the license number. Inactive licenses renew at a lower fee and do not require an active bond.
Law Reference: B&P Code §7076.5Practice all 1605 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)