A Michigan contractor's license expires on June 30th. The contractor submits a renewal application on July 15th with all required documentation and fees. What is the status of the contractor's license?
Correct Answer
B) Expired and must reapply as new applicant
Michigan contractor licenses that are not renewed by the expiration date are considered expired, and the contractor must reapply as a new applicant rather than renew.
Why This Is the Correct Answer
Under Michigan law, a contractor license that is not renewed before the June 30th expiration date is considered fully expired. There is no grace period for late renewal — submitting documentation and fees after the expiration date does not trigger a renewal; the contractor must go through the full new-applicant process, including meeting all current requirements.
Why the Other Options Are Wrong
Option A: Automatically renewed with late fee
Michigan does not offer an automatic renewal with a late fee. Once the expiration date passes, the license lapses entirely. An 'automatic renewal with late fee' option does not exist under LARA's contractor licensing rules.
Option C: Suspended pending review
Suspension implies the license is still active but restricted. An expired license is not suspended — it simply no longer exists as a valid credential. Suspension is a separate enforcement action taken against an active licensee.
Option D: Renewed but with probationary status
Probationary status is an enforcement or disciplinary tool, not a consequence of a late renewal. Michigan does not grant a renewed-with-probation status for late applications — the license is expired and a new application is required.
Memory Technique
Think of a Michigan contractor license like a coupon with a hard expiration date — after June 30th it's worthless, and no amount of money or paperwork can 'renew' it. You must apply fresh, just like getting a new coupon.
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