CSLB Law & Business ExamBusiness Organization and LicensingMedium
A licensed corporation promotes its vice president of operations to also serve on the board of directors, but she remains uninvolved in qualifying the license. Under CSLB rules, what must the corporation do regarding this change?
- AReport the personnel change to CSLB within 90 days since officer information must stay current
- BNotify CSLB within 90 days only if the new director becomes the RMO
- CFile a new license application because the corporate structure has changed
- DNo report is needed unless the corporation's bond amount changes
Show answer & explanationAnswer & explanation
Correct answer: A. Report the personnel change to CSLB within 90 days since officer information must stay current
CSLB requires licensees to report changes in personnel of record, including officers and directors, within 90 days, even if the individual does not serve as the qualifying individual. Failure to report can lead to license issues, though it does not automatically suspend the license as disassociation of a qualifier would.
Why the other options are wrong
- B. Reporting is required for any officer/director change, not just qualifier changes.
- C. A promotion within the same corporation does not require a brand-new license application.
- D. Bond amount is unrelated to the personnel reporting requirement.
Personnel of Record Change Notification
Licensees must notify CSLB within 90 days of any change in officers, directors, partners, or other personnel of record, regardless of qualifying individual status.
- 90-day reporting window for personnel changes
- Applies to officers/directors even if not the qualifier
- Different from the 90-day qualifier disassociation replacement rule
Memory trick: Any name change on the roster gets a 90-day report.