(a) The director may refuse to issue any license provided for in this chapter to any of the following:

(1) An individual who has had any license revoked, has a license currently under suspension, or failed to renew their license while under suspension.

Terms Used In California Business and Professions Code 7538.5

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • director: means the Director of Consumer Affairs, unless the context indicates otherwise. See California Business and Professions Code 7512.1
  • license: means license, certificate, registration, or other means to engage in a business or profession regulated by this code or referred to in Section 1000 or 3600. See California Business and Professions Code 23.7
  • licensee: means a person licensed under this chapter. See California Business and Professions Code 7512.6
  • manager: means an individual designated under an operating agreement of a manager-managed limited liability company who is responsible for performing the management functions for the limited liability company specified in subdivision (c) of §. See California Business and Professions Code 7512.15
  • member: means an individual who is a member of a limited liability company as specified in §. See California Business and Professions Code 7512.14
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • qualified manager: means the individual under whose direction, control, charge, or management the business of a licensee is operated as specified in Section 7536. See California Business and Professions Code 7512.7

(2) An individual who, while acting as a partner of a partnership, an officer or director of a corporation, or a member, manager, or officer of a limited liability company, had their license revoked, has a license currently under suspension, or failed to renew their license while under suspension.

(3) An individual who, while acting as a partner of the partnership, an officer, director of the corporation, or a member, manager, or officer of a limited liability company meets both of the following conditions:

(A) The individual was a partner of any partnership, an officer or director of any corporation, or a member, manager, or officer of any limited liability company whose license was revoked, is currently under suspension, or was not renewed while under suspension.

(B) While acting as a partner, officer, director, member, or manager, they participated in any of the prohibited acts for which the license was revoked or suspended.

(4) An individual who is serving or has served as the qualified manager for any licensee that has had its license revoked, is currently under suspension, or failed to renew while under suspension.

(b) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.

(Amended (as amended by Stats. 2020, Ch. 312, Sec. 89) by Stats. 2022, Ch. 625, Sec. 31. (SB 1443) Effective January 1, 2023. Repealed as of January 1, 2025, by its own provisions. See later operative version, as amended by Sec. 32 of Stats. 2022, Ch. 625.)

  Previous section
Next section  
 Article 3 Contents