Michigan to Arkansas: general contractor license reciprocity

1. 1Law / code exam. Pass a law, rules, or code exam. Arkansas Business and Law examination, taken by the qualifying party and scheduled with PSI Services LLC: fifty multiple-choice questions, two hours, open book, tested only from the NASCLA Contractors Guide to Business, Law and Project Management, Arkansas Edition. The license can be approved but not released without the passing score. The Board does not publish the passing score..
2. 2Trade exam. Pass the destination's trade exam (if applicable). Optional NASCLA Accredited Examination for Commercial General Building Contractors, used by the Board in place of the applicant demonstrating appropriate experience: 115 questions, 330 minutes, open book, minimum passing score 81, with a published reference list covering the International Building Code, ACI 318, OSHA 29 CFR Part 1926 and commercial construction management texts. Booked through NASCLA and delivered by PSI, with the result transferred to the Board through NASCLA's National Examination Database. An applicant who already holds a substantially equivalent out-of-state license does not need it..
3. 3Application fee. Pay the application fee ($100). Non-refundable, non-transferable $100 filing fee for a Commercial New Application, payable to the Contractors Licensing Board by check or money order. A sole proprietor on certain public assistance, recently approved for unemployment, or with household income under 200% of the federal poverty guidelines may apply for an initial fee waiver under 17 CAR § 255-207..
4. 4Exam fee. Pay the exam fee ($84). $84 paid to PSI Services LLC when the Arkansas Business and Law examination is scheduled. Examination fees are not refundable or transferable. The NASCLA Accredited Examination is booked and paid for separately through NASCLA; the Board does not publish that fee..
5. 5Surety bond. Post a surety bond ($10,000). Fully executed $10,000 contractor's surety bond in the principal name and EIN registered with the Secretary of State, filed with the power of attorney. The license can be approved but not released until the bond is on file, unless the same entity already holds a license or registration with the Board. The surety must be authorized to do business in Arkansas and the bond executed by an agent licensed by the Insurance Commissioner..
6. 6Financial responsibility. Show financial responsibility of at least $50,000. CPA-prepared financial statement, not from an in-house CPA, dated less than one year before filing, with a balance sheet on a GAAP or accrual income tax basis. A Restricted Commercial applicant files a compiled report; an Unrestricted Commercial applicant files a reviewed report or audited opinion. Minimum business-related net worth is set by classification: $50,000 for Building, Heavy, Highway/Railroad/Airport and Municipal and Utility; $20,000 for Light Building, Mechanical and Electrical; $5,000 for a specialty. A new applicant must hold half the minimum in cash in the bank, not as receivables or a stockholder note, and must show positive working capital. The amount shown is the Building classification figure. The license expiry date is set by the date of the financial statement..
7. 7Surety bond. Post a surety bond ($500,000) (if applicable). Optional surety bond in lieu of the financial statement under Ark. Code Ann. § 17-25-304(c), filed on the Board's form as an original: the amount is ten times the required net worth for the classification, so $500,000 for the Building classification. It must be continuous, list the State of Arkansas as obligee and stay in force while the license is held, and it may be cancelled once an acceptable financial statement is filed. It does not replace the $10,000 contractor's surety bond..
8. 8Insurance. Carry the required insurance. Current certificate of workers' compensation insurance if the applicant has one or more employees, verified to the Board with the application..
9. 9Business license. Obtain a business license. The license is issued to a legal entity, so a corporation, LLC, LP or LLP must file its Articles or filings from the Secretary of State's office with the application, together with any fictitious name registration. An out-of-state entity must therefore be registered to do business in Arkansas before the license issues, and the bond must be in that registered name and EIN..
10. 10Other. Three reference forms completed by the referees themselves and no more than ninety days old, verifying the experience behind each classification or specialty requested. References from a supplier or banker are accepted only if that person has observed the work. This requirement falls away for an applicant holding a substantially equivalent out-of-state license in good standing under 17 CAR § 255-208(b)(2), and for uniformed service applicants..
11. 11Other. Ninety-day temporary license: an applicant who holds a substantially equivalent license in good standing in another jurisdiction may file the temporary license application and fee alongside the new application and work while the full application is reviewed. An applicant from a jurisdiction that issues no substantially equivalent license may still get one by demonstrating experience or appropriate testing. The Board does not publish the temporary license fee. (if applicable).
12. 12Other. Adding residential work: a commercial license automatically authorizes residential work in the same classifications. A commercial licensee who wants a residential classification the commercial license does not carry files the residential application as well, with references for that classification, but pays no additional fee and sits no additional test. (if applicable).

Published fees on this path total $184, excluding exam-vendor fees, bonds, and insurance.