(a) The Commission shall place the license of a licensee on inactive status, and issue an inactive status certificate to the licensee, if the licensee:

(1) submits to the Commission an application for inactive status on the form that the Commission provides;

(2) pays to the Commission an inactive status application fee set by the Commission;

(3) except for the liability insurance requirement of § 8-302.1 of this subtitle, qualifies for an active license; and

(4) returns the license of the licensee to the Commission.

(b) (1) The holder of a contractor license that is on inactive status may not act as a contractor in the State.

(2) The holder of a salesperson license that is on inactive status may not sell a home improvement in the State.

(c) (1) The holder of a contractor license that is on inactive status is not required to meet the liability insurance requirement of § 8-302.1 of this subtitle.

(2) The holder of a contractor license that is on inactive status is not subject to an assessment for the Fund under § 8-404(b) of this title.

(d) The placement of a license on inactive status does not affect the power of the Commission to suspend or revoke the license or to take any other disciplinary action against the licensee.

(e) (1) A licensee whose license is on inactive status remains responsible for renewing the license as required under § 8-308 of this subtitle.

(2) The holder of a contractor license that is on inactive status may renew the license without complying with the liability insurance requirement of § 8-302.1 of this subtitle.

(3) A licensee whose license is on inactive status shall pay to the Commission a renewal fee set by the Commission.

(f) The Commission shall reactivate the license of a licensee that is on inactive status and reissue the license to the licensee, if the licensee:

(1) submits to the Commission an application for reactivation on the form that the Commission provides;

(2) pays to the Commission a reissuance fee set by the Commission; and

(3) meets the requirements for a license, including, in the case of a contractor, the liability insurance requirement under § 8-302.1 of this subtitle.