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Change in Personnel

If there is a change in the personnel listed on your license, you must report the change within 90 days of the effective date (Business and Professions Code section7083). Some changes in personnel will result in the cancellation or suspension of the license. The following explains how changes in personnel affect the different business entities.

Sole Owner

A sole owner license is issued to a specific individual.

  • If a sole owner dies, the license must be cancelled. A copy of the death certificate must be sent to CSLB's Headquarters Office. A family continuance may be granted under certain conditions for a specified amount of time (Business and Professions Code section 7076(a)).
  • If a sole owner ceases to do business, the owner may wish to cancel or inactivate the license.
    • To cancel the license, the owner must complete a License Cancellation Request Form and submit the form to CSLB's Headquarters Office. To reinstate a cancelled license, the owner must reapply and request that the license number be reissued.
    • To inactivate the license, the owner must complete an Application to Inactivate Contractor's License and submit the application to CSLB's Headquarters Office. You cannot actively contract with an inactive license. If you inactivate your license and later wish to have the license put on active status, you will be required to submit an Application for Reactivation and pay the required fee. You may order this application from CSLB. You will be required to provide your license number.
  • If a sole owner sells the business to another individual, the sole owner license number is not transferable and cannot be included in the sale of the business. The new business owner must apply obtain his/her own license before he/she can legally contract.
Partner of a General Partnership

A General Partnership license is issued to a specific partnership structure and the structure cannot be altered. When a general partnership structure is altered, the partnership license must be cancelled.

  • If a general or qualifying partner leaves the partnership, a Disassocation Request must be completed and sent to CSLB's Headquarters Office within 90 days of the disassociation date. If the form is not received by CSLB within 90 days of the effective date of the disassociation, the date the notice is received by CSLB will be used as the disassociation and cancellation date.
  • If a general or qualifying partner is deceased, a Disassocation Request must be completed and sent to CSLB's Headquarters Office within 90 days of the date of death. When possible, a copy of the death certificate should be attached to the disassociation form. The date of death will be used as the cancellation date.
  • General partners cannot be added to an existing partnership license. A new license is required for the new partnership structure.
Partner of a Limited Partnership

A Limited Partnership license is issued to a specific partnership structure. It consists of one or more general partners and one or more limited partners. A limited partner may be added or removed from a limited partnership without cancelling the license, provided that all general partners remain the same, and at least one limited partner is listed. Changes in general partners, or removing all limited partners, will result in cancellation of the license.

  • A limited partner may be added to a limited partnership by completing an Application to Change Limited Partners of a Partnership. The completed form must be sent to CSLB's Headquarters Office.
  • A limited partner may be removed from a limited partnership by completing and submitting the appropriate form below.

    • If there is at least one limited partner remaining on the limited partnership license, complete an Application to Change Limited Partners of a Partnership. The completed form must be sent to the CSLB's Headquarters Office.
    • If there are no limited partners remaining on the limited partnership license, complete a Disassocation Request for the limited partner. The completed form must be sent to CSLB's Headquarters Office within 90 days of the disassociation date. If the form is not received by CSLB within 90 days of the effective date of the disassociation, the date the notice is received by CSLB will be used as the disassociation and cancellation date.
  • If a general or qualifying partner leaves the limited partnership, a Disassocation Request must be completed and sent to CSLB's Headquarters Office within 90 days of the disassociation date. If the form is not received by CSLB within 90 days of the effective date of the disassociation, the date the notice is received by CSLB will be used as the disassociation and cancellation date.
  • When a general or qualifying partner dies, a Disassocation Request must be completed and sent to CSLB's Headquarters Office within 90 days of the date of death. When possible, a copy of the death certificate should be attached to the disassociation request. The date of death will be used as the cancellation date.
  • General partners cannot be added to an existing limited partnership license. A new license is required for the new partnership structure.
IMPORTANT INFORMATION FOR GENERAL AND LIMITED PARTNERSHIP LICENSES

If a partnership license is cancelled due to a change in personnel, the remaining partner(s) may request a one-year continuance of the license to complete projects in progress. The request must be received at CSLB's Headquarters Office within 90 days of the partner's death or disassociation. If the remaining partners intend to remain in business beyond the continuance period, they must apply for a new license.

Tip symbol TIP: If you receive a continuance and plan to remain in business beyond the continuance period, be sure that you submit an Application for Original Contractors License in a timely manner. Do not wait until the continuance is about to expire before you submit the application, as unforeseeable processing delays could result in a lapse in licensure.

Corporate Officer (Non-Qualifier)

Corporate officers can be changed on a corporate license. Adding or removing a corporate officer (non-qualifier) does not affect the status of the license.

  • If a corporate officer leaves the company, a Disassocation Request must be completed and sent to CSLB's Headquarters Office. If this form is not received within 90 days of the effective date of the disassociation, the date the notice is received by CSLB will be used as the disassociation date.
  • To add new officers (non-qualifiers) to a corporate license, an Application to Report Current Officers of a Corporation must be completed and sent to CSLB's Headquarters Office. All new officers will be required to comply with fingerprinting requirements before the application can be approved. The new officers will be associated effective the date the application is determined to be acceptable and all requirements are met.

Alert symbol IMPORTANT: An Application to Report Current Officers of a Corporation cannot be used to:

  • Remove an officer who is the qualifier (Responsible Managing Officer);
  • Change an officer from a non-qualifier to a qualifier;
  • Change a Responsible Managing Employee (RME) to an officer.
Responsible Managing Officer (RMO) or Responsible Managing Employee (RME)

When a Responsible Managing Officer (RMO) or Responsible Managing Employee (RME) leaves a company, it may affect the status of the license if written notification is not received timely and the qualifier is not replaced within the required amount of time.

  • If an RMO or RME leaves the company, a Disassociation Request must be completed and sent to CSLB's Headquarters Office. The form must be received at CSLB within 90 days of the disassociation date (Business and Professions Code section 7068.2).
  • The request must be signed by a member of personnel listed on the CSLB's records.
  • Failure to notify CSLB within 90 days of the disassociation date will result in the automatic suspension of the license or removal of the classification, effective the date written notification is received by CSLB.
  • If notification of the disassociation is not received by CSLB within the 90 days allowed by law, the license record will reflect the qualfier's disassociation date as the date written notification is received by CSLB. Be advised that the RME or RMO remains responsible for all work performed by the company prior to the recorded disassociation date.
Replacing the RMO or RME

To continue to conduct business in the classification for which the RMO or RME was responsible, the company must replace him/her within 90 days of the date of disassociation. Failure to replace the RMO or RME within the time period allowed by law will result in the suspension of the license or removal of the classification from the license.

  • To replace the RMO or RME of an existing class, submit an Application for Replacing the Qualifying Individual. The application also may serve as the notice of disassociation for the former qualifier by providing the date of disassociation in the designated area. (The requirements for a qualifying individual and the criteria for waiver of the examination are defined in the Applicants section of this site.)
  • If the replacement process cannot be completed within the 90-day time frame, you can request a 90-day extension by sending a written request to CSLB's Headquarters Office. (Only one extension may be granted.)
  • If the company disputes the qualifier's disassociation date or can show good cause for failing to notify and replace the qualifier within the prescribed time, the company can petition the Registrar for a 90-day extension. The written request and documentation must be sent to CSLB's Headquarters Office.

Alert symbol IMPORTANT:  It is strongly recommended that you submit the application in a timely manner, as unforeseeable processing delays could result in suspension of the license or removal of the classification if the qualifier is not replaced within the time period allowed by law.

Qualifying Multiple Licenses

A Qualifying Partner or RMO may serve as the qualifier for more than one license at a time, provided one of the following conditions exists.

  • There is a common ownership of at least 20 percent of the equity of each firm.
  • The additional firm is a subsidiary of, or a participant in a joint venture, with the first license.
  • The majority of partners or officers is the same.

The individual may qualify no more than three firms in any one-year period (Business and Professions Code section 7068.1). If the 20 percent common ownership no longer exists, the qualifying individual must disassociate from each license for which the exemption status no longer applies.

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