Business & LicensingQuestion 449 of 1632
A qualifying individual disassociates from a contractor license. The contractor wants to keep operating. Under California law, the contractor generally has a limited window to replace the qualifier; if it fails to do so, the license:
a.Is automatically transferred to the CSLB for safekeeping
b.Remains fully active indefinitely with no qualifier
c.Is downgraded to a home improvement salesperson registration
d.May be suspended or invalidated for lack of a qualifying individual
Explanation
Under §7068.2, when a qualifier disassociates, the contractor must notify the CSLB and replace the qualifier within the time allowed. Failure to associate a new qualifying individual can result in suspension or invalidation of the license.
Law Reference: Bus. & Prof. Code §7068.2This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)