California Code, Business and Professions Code - BPC § 7076.5

(a) A contractor may inactivate their license by submitting a form prescribed by the registrar accompanied by the current active license certificate.  When the current license certificate has been lost, the licensee shall pay the fee prescribed by law to replace the license certificate.  Upon receipt of an acceptable application to inactivate, the registrar shall issue an inactive license certificate to the contractor.  The holder of an inactive license shall not be entitled to practice as a contractor until their license is reactivated.

(b) Any licensed contractor who is not engaged in work or activities which require a contractor's license may apply for an inactive license.

(c) Inactive licenses shall be valid for a period of four years from their due date.

(d) During the period that an existing license is inactive, no bonding requirement pursuant to Section 7071.6, 7071.8, or 7071.9, qualifier requirement pursuant to Section 7068, or workers' compensation requirements pursuant to Section 7125 shall apply.  An applicant for licensure having met the qualifications for issuance may request that the license be issued inactive unless the applicant is subject to the provisions of Section 7071.8.

(e) The board shall not refund any of the renewal fee which a licensee may have paid prior to the inactivation of their license.

(f) An inactive license shall be renewed on each established renewal date by submitting the renewal application and paying the inactive renewal fee.

(g) An inactive license may be reactivated by submitting an application acceptable to the registrar, by paying the full renewal fee for an active license and by fulfilling all other requirements of this chapter.  No examination shall be required to reactivate an inactive license.

(h) The inactive status of a license shall not bar any disciplinary action by the board against a licensee for any of the causes stated in this chapter.