When a qualifying individual disassociates from a California contractor license, how long does the licensee have to replace them?
Correct Answer
D) 90 days
Business and Professions Code Section 7068.1 requires replacement of a qualifying individual within 90 days of disassociation. During this period, the license remains valid but the contractor cannot enter new contracts or pull permits. Failure to replace within 90 days results in automatic license suspension.
Why This Is the Correct Answer
Business and Professions Code Section 7068.1 gives the licensee 90 days to replace a disassociated qualifying individual. During this 90-day window, the license remains technically active, but the contractor may not enter into new contracts or obtain new permits. After 90 days without a replacement, the CSLB automatically suspends the license.
Why the Other Options Are Wrong
Option A: 120 days
120 days is too long. The statute grants only 90 days. If a contractor relies on the mistaken belief that they have 120 days, they risk operating with a suspended license for the final 30 days of what they thought was the grace period.
Option B: 30 days
30 days is too short. While other contractor notice requirements may use a 30-day window, the qualifying individual replacement period is specifically set at 90 days by BPC Section 7068.1.
Option C: 60 days
60 days is also shorter than the actual 90-day requirement. This is a plausible distractor because 60 days is a common time frame in various legal and regulatory contexts, but it is not the correct period for qualifying individual replacement.
Memory Technique
90 days = one quarter of the year. When the QI leaves, the business has 'one quarter' to find a replacement. Think of a sports season: you have one quarter left in the game to sub in a replacement or the game is over (license suspended).
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 scheduling inspections for a residential project in California, which inspection must typically be completed before the insulation inspection can occur?
Next Question
A qualifying individual for a B-General Building contractor license must post a bond in what amount according to California regulations?