Old CSLB study guides are full of dollar figures and dates the Legislature has since changed — and a single stale number can cost you a question on exam day. Below are the verified 2025-26 changes that matter most for the Law & Business exam, each with its official California Business & Professions Code section and effective date so you can confirm it at the source.
✓ Last verified: August 1, 2026
Educational summary, not legal advice — always confirm the current law with the official source (leginfo / CSLB).
1Licensing threshold
Minor-work license threshold: $500 → $1,000
No CSLB license is required if the total contract price for labor and materials combined is LESS than $1,000, and the work is casual or minor. Materials that still say the cutoff is $500 are out of date.
Why it matters for the exam
If a question gives a small-job price to test whether a license is required, the line is now $1,000 — not $500.
Bus. & Prof. Code §7048 · Effective: Raised to $1,000 by AB 2622 (eff. 1/1/2025); re-enacted at $1,000 by AB 1170 (Stats. 2025, Ch. 67, eff. 1/1/2026).
Verify at leginfo →2Contractor's bond
Contractor license bond: $15,000 → $25,000
Old study guides say
$15,000
→
The required contractor's bond is now $25,000. Related bonds moved too: the qualifying individual's bond (§7071.9) is also $25,000, and the LLC employee/worker bond (§7071.6.5) is $100,000.
Why it matters for the exam
Memorize $25,000 as the contractor's bond amount. Any answer choice showing $12,500 or $15,000 is an old figure.
3Workers' compensation
Workers' comp: the “no employees = exempt” rule is phasing out — NOT all at once
Common wrong answer
Every no-employee contractor must carry it (2026)
→
Correct as of 2026
Only C-8, C-20, C-22, C-39, D-49/C-61 so far
SB 216 ends the no-employee workers'-comp exemption, but SB 1455 (Stats. 2024, Ch. 485) POSTPONED the all-classifications date from 1/1/2026 to 1/1/2028. As of 2026, only C-8, C-20, C-22, C-39, and D-49/C-61 have lost the exemption; ALL OTHER classifications keep it until 1/1/2028.
Why it matters for the exam
Do NOT pick “as of 2026 every contractor with no employees must carry workers' comp” — that is wrong for most classifications until 1/1/2028.
Bus. & Prof. Code §7125 (SB 216, as amended by SB 1455) · Effective: All-classifications date postponed to 1/1/2028.
Verify at leginfo →4License fees
License fees updated (2026)
Prior fee schedule
Superseded
→
2026 fees (statutory cap)
$450 app · $450 renew · $300 inactive
SB 861 (Stats. 2025, Ch. 592, eff. 1/1/2026) updated the fee schedule: original application for a single classification is $450 (statutory cap $563); active license renewal is $450 (cap $563); inactive renewal is $300 (cap $375).
Why it matters for the exam
If asked the current original-application or renewal fee, $450 is the amount; the $563 figure is the statutory cap, not the fee charged.
Bus. & Prof. Code §7137 · Effective: SB 861 (Stats. 2025, Ch. 592), eff. 1/1/2026.
Verify at leginfo →5Home improvement contracts
Home improvement contract rules amended (2026)
Section status
Amended for 2026
→
Still-tested rule (unchanged)
Down payment ≤ lesser of $1,000 or 10%
Bus. & Prof. Code §7159 was amended by SB 517 (Stats. 2025, Ch. 585, eff. 1/1/2026). The key memorizable rule is unchanged and still tested: the down payment on a home improvement contract may not exceed the LESSER of $1,000 or 10% of the contract price.
Why it matters for the exam
The down-payment cap — the lesser of $1,000 or 10% of the contract price — is unchanged. Don't let “§7159 was amended” trick you into thinking this number moved.
Bus. & Prof. Code §7159 / §7159.5 · Effective: SB 517 (Stats. 2025, Ch. 585), eff. 1/1/2026.
Verify at leginfo →Every figure above is quoted from the California Business & Professions Code as published on the Legislature's official site. Use the “Verify at leginfo” link on each card to read the section in full.
Educational summary, not legal advice. Last verified: August 1, 2026.