Skip to content
CalContractorPrep
Menu

About the exam

CSLB Law & Business Exam Format, Passing Score and Open-Book Rules (What CSLB Actually Says)

Updated

The CSLB Law and Business exam is a closed-book, computer-based, multiple-choice test. Each question has four choices and one BEST answer. You get 3.5 hours, a calculator is provided, and there is no penalty for guessing. Neither CSLB's study guide nor its applicant guide gives a fixed passing percentage or a question count.

This page sticks to what CSLB and the Contractors' State License Law say. Where CSLB is silent, we say so. Two official documents carry most of the detail:

Quick answers

Question What CSLB says Source
Open or closed book? Closed book. No reference materials may be used. Study guide
Question format Multiple choice, four choices, one BEST answer Study guide
Calculator Provided; some questions need math Study guide
Guessing penalty None Study guide
Time 3.5 hours for each exam Get Licensed to Build
Where On a computer, at a PSI test center Get Licensed to Build
Passing score Not published; it varies by exam. Get Licensed to Build says to ask CSLB; for trade exams, CSLB's web page says you are told the percentage at the test site. Get Licensed to Build, CSLB: Studying for the Examination
Number of questions Not stated in CSLB's study guide or applicant guide —
Deadline to pass 18 months after CSLB accepts the application B&P Code §7074

Is the CSLB Law and Business exam open book?

No. The study guide's test policy is direct: "This is a closed-book examination. No reference materials may be used during the examination." See the CSLB study guide.

The confusion comes from a different test. Every applicant for an initial license must also complete an open book exam about asbestos-related work before CSLB issues the license (B&P Code §7058.5). CSLB offers that one on its website (Get Licensed to Build). It is separate from the Law and Business exam, which stays closed book.

You also cannot bring your own notes. Among the exam security rules, CSLB lists "possessing any written material other than test materials provided by CSLB" as a violation (Get Licensed to Build).

What is the passing score?

CSLB does not publish one number. Get Licensed to Build says you "can inquire with CSLB regarding the percentage needed to pass the exam as it varies for each exam" (Get Licensed to Build).

For the trade exams, CSLB's Studying for the Examination page answers "What are the trade examinations like?" with: "You will be informed at the test site about the percentage of correct answers needed to pass each examination."

CSLB publishes no fixed percentage, so treat any number quoted by prep sites as unverified.

How many questions are on the exam?

CSLB's study guide and Get Licensed to Build do not give a question count. The study guide says only that "Plenty of time is provided to answer all examination questions" (CSLB study guide). Other counts are third-party claims.

What CSLB does publish is how the exam is weighted. The study guide splits it into seven sections and notes that the "percentages are approximate":

Section Weight
1. Business Organization and Licensing 13%
2. Business Finances 15%
3. Employment Requirements 20%
4. Insurance and Liens 12%
5. Contract Requirements and Execution 21%
6. Public Works 5%
7. Safety 14%

Source: CSLB study guide.

What the questions look like

The study guide includes three sample questions with the answers marked (CSLB study guide):

  1. How often an employer makes payroll deposits to the IRS depends on the amount of payroll liability.
  2. Participants must return an "agreement to arbitrate" within 30 calendar days after CSLB's Registrar mails it.
  3. Depreciation on a car bought for the sales staff is charged to general and administrative costs.

The guide adds that "All questions are written and reviewed by licensed contractors who are actively working in the trade." The law itself requires the exam to include "pertinent questions relating to the laws of this state and the contracting business and trade" (B&P Code §7065).

Scheduling and test day

  • Notice first. When your application is accepted and an exam is required, CSLB sends a "Notice to Schedule an Examination." PSI Exams, CSLB's testing vendor, sends a "Candidate Information Bulletin" with scheduling details. You book the date, time and location on PSI's website (Get Licensed to Build). The law lets the registrar contract with an outside organization to run the exam (B&P Code §7065).
  • Exam fee. The fee to take an exam run by an outside organization "shall be paid directly to the organization by the applicant." It can be no greater than the actual cost of running the exam (B&P Code §7137). It is separate from the $450 CSLB application fee in the same section. The CSLB pages cited here do not state the PSI exam fee; check with PSI when you schedule.
  • Arrive 30 minutes early with a current, valid photo ID. Both CSLB sources list a driver license, a DMV identification card or a military ID card (Get Licensed to Build, CSLB: Exam Application Accepted).
  • Late arrival. If you arrive late, you may not be admitted, and you may forfeit your exam registration fee (same source).
  • Computer tutorial. Before the exam starts, an on-screen tutorial shows you how to use the testing system (same source).
  • Language and disability help. CSLB may allow a translator, but it must approve your translator in advance, and you ask CSLB in writing. If your exam is offered in your preferred language, you cannot use a translator (CSLB: Exam Application Accepted). You can also request a disability accommodation under the ADA (Get Licensed to Build).

What your score report shows

Results are shared before you leave the test center (Get Licensed to Build):

  • If you pass, you are told you passed, but "are not given detailed information about their score."
  • If you fail, the computer shows how well you did on each section of the exam. The sections match the seven study guide sections in the table above.

You cannot review the test questions afterward. You may type a comment about a question during the exam, and you can ask CSLB for a "Request for Examination Appeal" form after the exam (same source).

Retakes, rescheduling and deadlines

Situation Rule Source
Time limit to pass The application becomes void if you fail to pass within 18 months after CSLB deems it acceptable B&P Code §7074
Wait after failing 21 calendar days before you can pay for and reschedule the exam CSLB: Exam Application Accepted
Retake after failing Allowed after 21 calendar days; pay the re-examination fee to PSI. Get Licensed to Build (2023) lists a non-refundable $100 rescheduling fee; CSLB's current page gives no amount, so confirm with PSI. Get Licensed to Build, CSLB: Exam Application Accepted
Missed exam (no-show) Allowed within your 18-month eligibility period; pay the re-examination fee to PSI (confirm the amount with PSI). Get Licensed to Build, CSLB: Exam Application Accepted
Cancel without losing the fee Notice must be received two days before the exam date Get Licensed to Build
Medical emergency or other circumstance beyond your control One exam may be rescheduled without a fee, or the void date extended up to 90 days, with documented evidence B&P Code §7074(b)
Passed one exam, failed the other Retake only the one you failed; results are good for five years Get Licensed to Build

After the application becomes void, you must submit a new application with new fees (Get Licensed to Build). If you fail within three weeks of your 18-month void date, you cannot reschedule past that date (CSLB: Exam Application Accepted).

When you may not need to take the exam again

Under B&P Code §7065(d), no exam is required if, within the five years before the application, the qualifying individual either:

  • personally passed the written exam for the same classification, or
  • served as the qualifier for a license in good standing in the same classification.

§7065(d) only covers the same classification; passing the exam for one classification does not, by itself under §7065(d), waive the exam for a different one. Other waivers may apply: §7065.1 (the registrar may waive the exam if, for five of the last seven years, you were listed as personnel on an active license in good standing in the same classification and actively worked in it, plus family-business and replacement-qualifier variants), §7065.3 (adding a closely related classification to an existing license, with five of seven years as personnel and four years' experience) and §7065.4 (trade exam only, for some out-of-state licensees).

Exam security

CSLB treats exam content as confidential. Violations include giving information about test questions to anyone other than CSLB exam staff, removing exam materials (including notes) from the test site, and taking the exam for someone else. Listed penalties include automatic exam failure, forfeiture of fees, misdemeanor prosecution that can bring a $500 fine and a county jail sentence, damages of up to $10,000 plus litigation costs, and a one-year bar on applying for any CSLB license (Get Licensed to Build).

So be wary of any site selling "actual exam questions." Good practice questions teach the rules; they do not copy the test.

Sources

CalContractorPrep is not affiliated with CSLB or PSI. Last verified against these sources on October 28, 2026.

Practice questions

Think of your answer first, then open the explanation.

  1. Business Organization and Licensing

    1. CSLB finds Dan's license application acceptable. Dan is the qualifier, and he keeps failing the exam. Under section 7074, how long after the application was found acceptable does he have to pass before the application becomes void?

    • A. 6 months
    • B. 12 months
    • C. 18 months
    • D. 24 months
    Show answer

    Correct answer: C

    • A. 6 months

      Six months is not the time limit; section 7074 gives 18 months after the application is found acceptable.

    • B. 12 months

      Twelve months is too short; the applicant has 18 months after the application is found acceptable to pass the exam.

    • C. 18 months

      Correct answer

      Correct. Section 7074 says the application becomes void if the qualifying exam is not passed within 18 months after the board finds it acceptable.

    • D. 24 months

      Twenty-four months is too long; the application becomes void if the exam is not passed within 18 months.

    Explanation

    Business and Professions Code section 7074 says an application becomes void if the applicant does not pass the qualifying exam within 18 months after the board finds the application acceptable. After that, Dan would need to file a new application with a new fee. The 90-day periods in the same section apply to other steps, such as returning a rejected application or paying the initial license fee. Six, 12, and 24 months are not the time limit in the law.

    Source

  2. Business Organization and Licensing

    2. A qualifier passed the CSLB written exam for the C-10 classification three years ago. Now she applies to qualify a new license in the same C-10 classification. Under section 7065, must she take the exam again?

    • A. Yes, because each new license needs a new exam
    • B. No, because she passed it within the past five years
    • C. Yes, because exam results are good for only one year
    • D. No, because a passed exam never needs to be repeated
    Show answer

    Correct answer: B

    • A. Yes, because each new license needs a new exam

      A new license does not always need a new exam. Under section 7065, no exam is required if the qualifier personally passed the written exam for the same classification within the five years before the application.

    • B. No, because she passed it within the past five years

      Correct answer

      Correct. Section 7065 says no exam is required if, within the five years before the application, the qualifier personally passed the written exam for the same classification, and she passed the C-10 exam three years ago.

    • C. Yes, because exam results are good for only one year

      This shortens the time period. Under section 7065, exam results count for five years before the application, not one year.

    • D. No, because a passed exam never needs to be repeated

      Exam results do not last forever. The exemption covers a qualifier who personally passed the same classification's exam within the five years before the application.

    Explanation

    Section 7065 says no exam is required if, within the five years before the application, the qualifying individual personally passed the written exam for the same classification. She passed the C-10 exam three years ago, which is within five years, and she is applying in the same classification. A new license does not always need a new exam, and results last five years, not one year. Exam results do not last forever.

    Source

  3. Business Organization and Licensing

    3. Ana passed the CSLB exam for the C-10 (electrical) classification two years ago. Now she wants to qualify a new license in the C-36 (plumbing) classification. Under section 7065, does the five-year rule let her skip the exam?

    • A. No, because she passed the exam for a different classification
    • B. Yes, because she passed a CSLB exam within five years
    • C. Yes, because she qualifies a license that is in good standing
    • D. No, because the five-year rule applies only to sole owners
    Show answer

    Correct answer: A

    • A. No, because she passed the exam for a different classification

      Correct answer

      Right. The five-year rule lets her skip the exam only if she passed the exam for the same classification being applied for, and C-10 is not C-36.

    • B. Yes, because she passed a CSLB exam within five years

      Passing any CSLB exam within five years is not enough. The exam must be for the same classification being applied for.

    • C. Yes, because she qualifies a license that is in good standing

      The good-standing route also requires a license in the same classification being applied for, and C-36 is not the classification she passed.

    • D. No, because the five-year rule applies only to sole owners

      The rule is not limited to sole owners. It applies to a qualifying individual who passed the exam for the same classification within five years.

    Explanation

    Business and Professions Code section 7065 lets a qualifier skip the exam only if, within the past five years, she passed the exam for the same classification being applied for. She may also skip it if she was a qualifier for a license in good standing in that same classification. Ana passed the C-10 exam, but she is applying for C-36, a different classification. So the five-year rule does not help her, and the rule is not limited to sole owners.

    Source

  4. Business Organization and Licensing

    4. Mia holds a contractor license in a similar classification in another state. That state accepts California contractors' qualifications on the same basis. Under section 7065.4, what must she provide so the registrar may waive the trade exam?

    • A. Proof that she has lived in California for at least the past 12 months
    • B. A passing score on that other state's trade exam taken within the past five years
    • C. Written certification from that state that her license was in good standing for five years
    • D. Written certification that she has worked on California projects for at least four years
    Show answer

    Correct answer: C

    • A. Proof that she has lived in California for at least the past 12 months

      The law does not ask for California residence. It calls for written certification from the other state that her license has been in good standing for the previous five years.

    • B. A passing score on that other state's trade exam taken within the past five years

      The law does not ask for a recent exam score from the other state. It requires certification that her license has been in good standing for the previous five years.

    • C. Written certification from that state that her license was in good standing for five years

      Correct answer

      Correct. Section 7065.4 lets the registrar waive the trade exam if the applicant gives written certification from that state that her license has been in good standing for the previous five years.

    • D. Written certification that she has worked on California projects for at least four years

      The law does not ask for work on California projects. The certification must come from the other state and show five years of good standing.

    Explanation

    Business and Professions Code section 7065.4 lets the registrar accept the qualifications of a contractor licensed in a similar classification in another state that does the same for California contractors. The registrar may waive the trade exam if the applicant gives written certification from that state that her license has been in good standing for the previous five years. The law does not ask for California residence, a recent exam score, or work on California projects.

    Source

  5. Safety

    5. Under Business and Professions Code section 7058.5, what must every applicant for an initial contractor license complete about asbestos?

    • A. A 40-hour classroom course on asbestos removal methods
    • B. A supervised day of field work on an asbestos job
    • C. Nothing, unless they apply for the C-22 classification
    • D. An open book examination about asbestos-related work
    Show answer

    Correct answer: D

    • A. A 40-hour classroom course on asbestos removal methods

      Section 7058.5 requires an open book examination about asbestos, not a classroom course on removal methods.

    • B. A supervised day of field work on an asbestos job

      Supervised field work is not what this section requires; it requires completing an open book examination.

    • C. Nothing, unless they apply for the C-22 classification

      This is wrong because the requirement applies to all applicants for an initial contractor license, not only C-22 applicants.

    • D. An open book examination about asbestos-related work

      Correct answer

      Correct: all applicants for an initial contractor license must complete the open book examination about asbestos-related work and submit it before the license is issued.

    Explanation

    Section 7058.5 says the CSLB makes available a booklet on handling and disposing of asbestos, with an open book examination about asbestos-related work. All applicants for an initial contractor license must complete this open book examination and submit it before the license is issued. It applies to all initial applicants, not only C-22 applicants. A classroom course or field work is not what this section requires.

    Source