The short answer is similar to when the RMO or RME disassociates from the corporation the entity has 90 days to obtain a new RMO or RME after the dissociation. Things are a little more complicated with the death of the RMO or RME.
The RMO or RMO or RME has to be replaced within 90 days of his death. See B & P Code Section 7083 below. Where it is a sole proprietor license an immediate family member, “can request a continuance of the license to complete projects in progress and undertake new work for a reasonable amount of time” (B & P Code Section 7076). The request must be made in writing to the CSLB within 90 days of his death and will likely result in the CSLB granting you a one-year continuance. The Board will require a change in the contractors bond, plus if any of the projects last for more than a year, you or another family member would be required to obtain your own license to continue contracting. B & P 7076(a). If the entity is a corporations pursuant to B & P Code Section 7076 a new Qualifier must be inserted for them to continue, B & P Code section 7065.1 provides for a family member, if they have worked in the business for 5 of the last 7 years to qualify for a license without taking the tests. Short of that there are people who have a license and will sign no to be the RME or RMO for a fee until you or someone in the family can obtain a license. The CSLB may also agree to a second 90 day continuance for the family to obtain a new RME or RMO.
See Code Sections below.
Do not ignore this vital step, if you fail to keep the entity properly licensed you will be forced to refund all monies under contracts that were performed when not properly license pursuant to B & P Code Section 7031.
B & P Code Section 7083
(a) Notwithstanding any other law, licensees shall notify the registrar, on a form prescribed by the registrar, in writing within 90 days of any change to information recorded under this chapter. This notification requirement shall include, but not be limited to, changes in business address, personnel, business name, qualifying individual bond exemption pursuant to Section 7071.9, or exemption to qualify multiple licenses pursuant to Section 7068.1.
(b) Failure of the licensee to notify the registrar of any change to information within 90 days shall cause the change to be effective the date the written notification is received at the board’s headquarters office.
(c) Failure to notify the registrar of the changes within the 90 days is grounds for disciplinary action.
B & P 7076(a)
- a) An individual license shall be canceled upon the death of a person licensed as an individual. An immediate member of the family of the deceased licensee may request a continuance of the license to complete projects in progress and undertake new work for a reasonable amount of time to be determined by rules of the board. The request for a continuance must be made in writing and received at the board’s headquarters office within 90 days after the death. Approval of the continuance of an individual license may be contingent upon meeting the bond requirements of Sections 7071.5 and 7071.6 within 90 days of notification by the board of that requirement. The immediate member of the family must apply for and obtain his or her own license to continue contracting after the continuance expires.
B & P 7065.1
Notwithstanding Section 7065, the registrar may waive the examination for a contractor’s license under any of the following circumstances:
(a) The qualifying individual has, for five of the seven years immediately preceding the application for licensure, been listed on the official records of the board as a member of the personnel of any licensee who held a license, which was active and in good standing, in the same classification being applied for, and who during the period listed on the license has been actively engaged in a licensee’s construction activities in the same classification within which the applicant applies for a license.
(b) The qualifying individual is an immediate member of the family of a licensee whose individual license was active and in good standing for five of the seven years immediately preceding the application for licensure, and the qualifying individual is able to show all of the following:
(1) The qualifying individual has been actively engaged in the licensee’s business for five of the seven years immediately preceding the application for licensure.
(2) The license is required to continue the existing family business in the event of the absence or death of the licensee.
(3) An application is made for a new license in the same classifications in which the licensee is or was licensed.