Ariz. Rev. Stat. § 32-1125 – Renewal of license; qualifying party

A. Except as provided in section 32-4301, a license issued under this chapter is suspended on the next business day following its renewal date by operation of law. An application for renewal of any current contracting license addressed to the registrar, with a valid bond or cash deposit on file with the registrar, accompanied by the required fee and received by the registrar or deposited in the United States mail postage prepaid on or before the renewal date authorizes the licensee to operate as a contractor until actual issuance of the renewal license. The registrar may refuse to renew a license if a licensee or person has committed or been found guilty of any act listed in section 32-1154.
B. A license that has been suspended by operation of law for failure to renew may be reactivated and renewed within one year of its suspension by filing the required application and paying the application fee in the amount provided for renewal in this chapter in addition to a $50 fee. When a license has been suspended for more than one year for failure to renew, a new application for a license must be made and a new license issued in accordance with this chapter.
C. A licensee may apply in writing to the registrar for exemption from a qualifying party. The licensee must show to the satisfaction of the registrar that during the past five years the licensee:
1. 1. Held a valid and active license and could legally contract under this chapter for the entire five-year period.
2. 2. Did not transfer fifty percent or more of its stock or beneficial interest.
3. 3. Did not commit a violation of section 32-1154, subsection A that has not been remedied.
D. The registrar shall approve or deny the application within thirty days after its receipt. If the application is not approved, the licensee, within thirty days, may request a hearing to be held pursuant to section 32-1156. If the application is approved, the exemption takes effect immediately.
E. A licensee that is exempt from the requirement for a qualifying party pursuant to subsection C of this section may be required by the registrar after a hearing to obtain a qualifying party within sixty days on a finding that:
1. 1. A transfer of ownership of fifty percent or more of the stock, if applicable, or beneficial interest, in the licensee has occurred.
2. 2. A violation of section 32-1154 has occurred.