A California licensed contractor operating as a corporation wishes to add a new qualifying individual. According to CSLB regulations, what is required when the new qualifier assumes responsibility?
Correct Answer
C) File a Personnel Change Application within 90 days and pay a $75 fee
Under California Code of Regulations Title 16, Section 817, when adding a new qualifying individual, contractors must file a Personnel Change Application within 90 days of the change and pay the required $75 fee. The new qualifier must meet all experience and examination requirements before assuming responsibility for the license.
Why This Is the Correct Answer
California Code of Regulations Title 16, Section 817 requires that when a new qualifying individual is added to a license, the contractor must file a Personnel Change Application within 90 days and pay the $75 filing fee. The new qualifier must also meet all experience, examination, and background requirements before CSLB approves the change. This 90-day window allows normal business transitions while ensuring regulatory oversight.
Why the Other Options Are Wrong
Option A: Complete a Responsible Managing Employee application within 30 days
There is no 'Responsible Managing Employee application' as a standalone form, and the 30-day timeframe is incorrect for this type of personnel change. The RME designation is a category of qualifier, not a separate application form distinct from the Personnel Change Application process. The timeframe in the regulation is 90 days, not 30.
Option B: Submit Form 13-A within 10 days and provide a $50,000 bond
Form 13-A is not the correct form number for personnel changes (CSLB uses its own form nomenclature for Personnel Change Applications). The 10-day deadline is far too short and does not appear in Section 817. Additionally, there is no $50,000 bond requirement specifically tied to adding a new qualifier — that figure is unrelated to this transaction.
Option D: File a Disassociation Notice for the previous qualifier within 60 days
Filing a Disassociation Notice for the previous qualifier is a different transaction from adding a new qualifier. While the departing qualifier may need to be disassociated, the question asks what is required when the new qualifier assumes responsibility. The correct requirement is the Personnel Change Application within 90 days, not a disassociation notice. Also, 60 days is not the correct timeframe for this type of filing.
Memory Technique
Remember the '90-75 rule' for adding a qualifier: 90 days to file, $75 fee. Think '90 days to go through the Personnel Change process, $75 to pay the paperwork fee.' This mirrors other CSLB personnel change timelines and helps distinguish this from shorter windows in other contexts.
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