A qualifying party for an Arizona contractor license wishes to qualify a second contracting entity. What restriction applies under Arizona ROC regulations?
Correct Answer
D) Allowed only if both entities have the same ownership
A qualifying party may qualify multiple entities only if they have common ownership or the qualifying party has a substantial ownership interest in both.
Why This Is the Correct Answer
Under Arizona ROC rules, a qualifying party may hold that role for more than one licensed entity only when the entities share common ownership or the qualifier holds a substantial ownership interest in each. This prevents a single individual from serving as a 'hired qualifier' for unrelated companies.
Why the Other Options Are Wrong
Option A: Not permitted under any circumstances
The Arizona ROC does permit qualifying multiple entities, so an absolute prohibition is incorrect. The key is that ownership ties must exist.
Option B: Allowed only for different classification types
The ROC does not restrict dual qualification to different license classifications. Classification type is irrelevant; ownership is the controlling factor.
Option C: Permitted with ROC approval and additional bond
There is no ROC mechanism that allows dual qualification simply by posting an additional bond or obtaining case-by-case approval without the ownership requirement.
Memory Technique
Picture a qualifying party as a family member who can vouch for businesses the family owns together. They cannot vouch for a stranger's business — there must be an ownership 'family' connection.
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