A residential contractor's qualifying party leaves the company. Under Arizona law, how long does the contractor have to replace the qualifying party before their license becomes inactive?
Correct Answer
B) 90 days
Arizona contractors have 90 days to replace a qualifying party before their license automatically becomes inactive.
Why This Is the Correct Answer
Under A.R.S. § 32-1122, a licensed contractor has 90 days from the departure of the qualifying party to designate a new qualifying party. If they fail to do so within that window, the license automatically becomes inactive.
Why the Other Options Are Wrong
Option A: 120 days
120 days exceeds the statutory deadline and would give contractors false confidence that they have more time than the law allows. The correct period is 90 days.
Option C: 30 days
30 days is the deadline for some other licensing notices or responses, but not for replacing a qualifying party. Confusing different 30-day rules is a common error.
Option D: 60 days
60 days is half of 120 and may seem like a reasonable midpoint, but it is not the statutory period. The law specifies 90 days.
Memory Technique
90 days = one business quarter. Think: 'When your qualifier quits, you have one quarter to find a new one.' Quarter = 90 days.
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