Under what circumstances can a contractor's license be summarily suspended according to B&P Code Section 7106?
Correct Answer
A) All of the above
B&P Code Section 7106 allows summary suspension for various serious violations including failure to maintain required insurance, conviction of related felonies, and other specified violations.
Why This Is the Correct Answer
B&P Code Section 7106 authorizes summary suspension — an immediate administrative action without a prior hearing — for multiple serious violations, including failure to maintain required workers' compensation insurance and conviction of a felony substantially related to contracting qualifications or duties. Because both listed circumstances (options B and C) individually trigger summary suspension, 'All of the above' is the correct and most complete answer.
Why the Other Options Are Wrong
Option B: Failure to maintain workers' compensation insurance
Failure to maintain workers' compensation insurance is indeed a ground for summary suspension under B&P Code Section 7106, but selecting only this option is incomplete. Option C is equally correct, making 'All of the above' the better answer.
Option C: Conviction of a felony substantially related to contracting
Conviction of a felony substantially related to contracting is a valid ground for summary suspension, but choosing only this option is incomplete. Option B is also correct, so 'All of the above' is the most accurate choice.
Option D: Failure to pay renewal fees within 30 days
Failure to pay renewal fees within 30 days is not a ground for summary suspension under B&P Code Section 7106. Non-payment of renewal fees results in license expiration or delinquency status through a different administrative process, not an immediate summary suspension.
Memory Technique
Think of summary suspension as the CSLB's emergency 'stop button.' It is reserved for the most serious public-safety violations: no workers' comp coverage (employees are unprotected) and felony convictions (character/integrity issue). Fee non-payment is an administrative matter — important but not an emergency.
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