What happens to a construction license after the death of the sole qualified partner?

When a sole qualified partner passes away, the construction license is typically treated as automatically suspended. This suspension occurs because the required qualifying individual, who serves as the responsible party, is no longer available to meet the licensing requirements. States mandate that a licensed contractor must have a designated qualifying individual to ensure accountability and adherence to regulations.

Suspending the license allows for a period during which the business can transition and potentially appoint a new qualified partner or individual. This automatically suspended status gives the company a chance to reorganize its operations without losing its license entitlement immediately. During this period, the business cannot engage in licensed activities until a new qualifying individual is approved and the license is reinstated.

The other options relate to different regulatory actions, but none align with the typical procedure regarding the death of a sole qualified partner. For instance, immediate revocation is too severe as it would prevent the business from possibly reorganizing or designating a new qualifying partner. A review by the state or allowing the license to remain active until renewal does not reflect the regulatory framework in place, which focuses on ensuring proper oversight and accountability through qualified individuals.