A specialty contractor discovers their qualifier has left the company. According to B&P Code requirements, what must happen within 90 days?
Correct Answer
C) Replace the qualifier or license becomes invalid
Under B&P Code Section 7068.1, if a qualifier is disassociated, a replacement must be found within 90 days or the license becomes invalid.
Why This Is the Correct Answer
Under B&P Code Section 7068.1, a qualifying individual is essential to the validity of a contractor's license. When a qualifier disassociates from the licensee, the law grants a 90-day cure period to find a replacement. If no replacement qualifier is designated within those 90 days, the license automatically becomes invalid. This rule exists because the qualifier is personally responsible for ensuring the company's work meets licensing standards — a license without a qualifying individual lacks the required responsible managing employee or officer.
Why the Other Options Are Wrong
Option A: Cease all contracting operations immediately
The law does not require the contractor to cease all operations immediately upon the qualifier's departure. The 90-day grace period exists precisely to allow the business to continue while a replacement qualifier is secured. Immediate cessation would impose an unreasonably harsh penalty for a personnel change that may be beyond the contractor's immediate control.
Option B: Apply for license transfer to new qualifier
There is no 'license transfer' mechanism to a new qualifier. A qualifier is designated on an existing license — the process involves associating a new qualifying individual with the existing license, not transferring the license itself to another entity. Using the word 'transfer' mischaracterizes the CSLB process.
Option D: File for inactive license status
Filing for inactive license status is a voluntary election by the licensee and is not the required legal outcome under Section 7068.1. If no replacement qualifier is named within 90 days, the license does not go inactive by the contractor's choice — it becomes invalid by operation of law. Inactive status and invalid status are distinct.
Memory Technique
90 days = your window to fill the seat. No qualifier in 90 days = invalid license, not inactive, not suspended — INVALID. Think of the qualifier as the engine: remove the engine and the car has 90 days before it's officially 'not a car.'
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