Under Business and Professions Code Section 7071.17, what happens when a qualifying individual disassociates from a contractor license?
Correct Answer
C) The license becomes inactive and the contractor has 90 days to designate a replacement
Business and Professions Code Section 7071.17 requires that when a qualifying individual disassociates, the license becomes inactive. The contractor has 90 days from the date of disassociation to file an application to replace the qualifying individual. During this inactive period, no contracting work may be performed.
Why This Is the Correct Answer
B&P Code Section 7071.17 states that when a qualifying individual disassociates from a license, the license becomes inactive immediately. The contractor then has 90 days to file an application designating a replacement qualifying individual. During the inactive period no contracting work may legally be performed under that license.
Why the Other Options Are Wrong
Option A: The CSLB must be notified within 30 days and the license remains valid for one year
This option incorrectly states that notification must occur within 30 days and that the license remains valid for one year. Neither element is accurate under Section 7071.17. The license does not stay valid — it becomes inactive — and the replacement window is 90 days, not one year.
Option B: The license remains active for 90 days while a replacement qualifier is found
The license does not 'remain active for 90 days' while a replacement is found. The license becomes inactive immediately upon disassociation. The 90-day period is the window to file for a replacement qualifier, not a grace period during which work can continue.
Option D: The license is immediately suspended until a new qualifying individual is designated
The license is not 'immediately suspended' in the punitive sense — suspension implies disciplinary action. Instead, it becomes inactive by operation of law. Additionally, the contractor has 90 days to replace the qualifier before further action may be taken, rather than requiring immediate designation.
Memory Technique
Remember the sequence: Disassociation → Inactive → 90 days to replace. Use the acronym DIR: Disassociation makes it Inactive, then you have 90 days to Replace. The '90' matches the 90-day IIPP investigation window — same number, so it is easy to recall in context.
More law-business Questions
Under B&P Code Section 7071.9, a contractor may deposit cash or securities instead of obtaining a surety bond. If a contractor chooses this option, where must the deposit be maintained and what happens to interest earned?
Under California's AB 5 law (Dynamex decision), which factor is NOT part of the ABC test for determining independent contractor status?
According to Business and Professions Code Section 7031, what is required when a licensed contractor supervises work performed by unlicensed employees on a construction project?
Under California Building Standards Code Title 24, which entity has the authority to issue building permits for most residential and commercial construction projects?
According to B&P Code 7159.5, service and repair contracts must include specific provisions. Which statement is correct regarding these contracts?
Which of the following activities is exempt from California contractor licensing requirements under Business and Professions Code Section 7048?
Under Cal/OSHA regulations in Title 8 CCR Section 5192, Safety Data Sheets (SDS) for hazardous chemicals used on construction sites must be readily accessible to employees during which hours?
Under California Business and Professions Code Section 7071.9, in lieu of a surety bond, what alternative security may a contractor provide to satisfy the contractor license bond requirement?
According to Cal/OSHA regulations, which of the following is NOT a required element of a written Injury and Illness Prevention Program (IIPP)?
A homeowner requests that a B-General Building Contractor provide a certificate of insurance naming the homeowner as an additional insured on the contractor's general liability policy. Under California law, what is the contractor's obligation?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
When calculating equipment costs for a California construction project bid, what is the primary difference between owned equipment rates and rental equipment rates for tax purposes?
Next Question
What is the deadline for recording a mechanics lien when NO notice of completion or cessation has been recorded on a private construction project under California Civil Code Section 8412?