42. To whom is a license issued?

A license may be issued to an individual, a partnership, a corporation, or a joint venture. The license belongs to the owner of an individual license, to the partnership, to the corporation as it is registered with the California Secretary of State, or to the combination of licensees who are party to the joint venture.

43. If the ownership of a business changes, is the contractor's license considered to be part of the purchase?

No, with the possible exception of a corporation. If the corporation's registration number assigned by the California Secretary of State remains the same, the same license can be used if the license is active and in good standing. The officers and the qualifying individual do not necessarily have to remain the same.

44. What is the difference between an active and an inactive license?

The holder of an active license is entitled to contract for work in the classifications which appear on the license. While the license is active, the licensee must maintain a current Contractor's Bond and a Bond of Qualifying Individual (if required), and workers' compensation coverage.

If a license is inactive, that is, currently renewed but on inactive status, the holder may not bid or contract for work. Neither the Contractor's Bond nor the Bond of Qualifying Individual is required for an inactive license. Also, a licensee does not need to have either the proof or exemption for workers' compensation insurance coverage on file with the CSLB while the license is inactive (see question #55).

45. To whom does the term "qualifying individual" refer?

A qualifying individual, or simply "qualifier," is the person listed on the CSLB records who meets the experience and examination requirements for the license. A qualifying individual is required for every classification on each license issued by the CSLB.

46. What is the qualifying individual required to do?

The qualifying individual for a license is responsible for the employer's (or principal's) construction operations.

47. May the same person serve as the qualifier for more than one license?

A person may act as a qualifying individual for more than one active license only if one of the following conditions exists:

• There is a common ownership of at least 20 percent of the equity of each firm for which the person acts as a qualifier;
  
• The additional firm is a subsidiary of or a joint venture with the first; or
  
• The majority of the partners or officers are the same.

Even if he or she meets the above conditions, A PERSON MAY SERVE AS THE QUALIFYING INDIVIDUAL FOR NO MORE THAN THREE TERMS IN ANY ONE-YEAR PERIOD.

A responsible managing employee (RME) may only act as a qualifying individual for one active license at a time.

48. Who may be a qualifying individual?

If you have an individual license, your qualifier may be either a responsible managing employee (RME) or you.

If you have a partnership license, your qualifier may either be one of the general partners (who shall be designated as the qualifying partner) or the RME.

If you have a corporate license, your qualifier may be either one of the officers listed on the CSLB's records for your license (who shall be designated as the responsible managing officer, or RMO), or an RME.

If your qualifying individual is a (RME) responsible managing employee, he or she must be a bona fide employee of the firm and may not be the qualifier on any other active license. This means that the RME must be regularly employed by the firm and actively involved in the operation of the business at least 32 hours per week or 80 percent of the total business operating hours per week, whichever is less.

49. Will a conviction for a criminal offense prevent a person from being licensed as a contractor or from serving as a qualifying individual?

The CSLB'S applications and other forms include questions regarding criminal convictions. The CSLB may deny a license if the crime is substantially related to the construction profession. Failure to disclose the requested information may, in and of itself, be grounds for denial of a license.