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ca-license-lawCSLB Licensing Requirementshard

A Class B contractor's net worth drops to $35,000 due to business losses. What action must the contractor take?

Correct Answer

C) Cease operations immediately

Class B contractors must maintain minimum net worth of $100,000. When net worth falls below this amount, they must cease operations until requirements are met per B&P Code Section 7067.5.

Answer Options
A
Apply for hardship exemption
B
Increase bond amount to compensate
C
Cease operations immediately
D
Notify CSLB within 30 days

Why This Is the Correct Answer

Class B contractors must maintain minimum net worth of $100,000. When net worth falls below this amount, they must cease operations until requirements are met per B&P Code Section 7067.5.

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