What must occur when a business licensed under this chapter is sold or transferred?

When a business licensed under this chapter is sold or transferred, the new owner must apply for a license. This requirement ensures that the new owner meets all the qualifications and standards set by the licensing body, maintaining the integrity and oversight of the professional standards within that industry.

This process allows the regulatory authority to assess whether the new owner is fit to operate the business, ensuring compliance with laws and regulations designed to protect consumers. It also helps in keeping accurate records of who is responsible for the business, which is critical for accountability in cases of legal matters or investigations.

The option stating that the board will issue a new license automatically does not address the need for review and assessment of the new owner's qualifications. Similarly, the idea that the old license remains valid contradicts the regulatory requirements to ensure that licensing reflects the current ownership. Lastly, allowing business operations to continue without interruption would undermine the licensing process, potentially posing risks to clients and the public by enabling unqualified individuals to conduct business.