Capitol Connection Q&A for Contractors - Week of January 8, 2018

By Shauna Krause, President, Capitol Services, Inc.

Impossible no. You can do that, but it won’t be easy! Oh, say can you “C”? How about letting a buddy use your license? Answers are the reason you ask and we share them here so contractors learn from the issues of others…

Q:  I had a Sole Owner license that expired back in 2007.  Since then, I have been listed on my company’s license as an RME (Responsible Managing Employee).  I am leaving the company and I want to get my own license number back which starts with a ‘4’, but I’d like it to be Incorporated.  Is that possible?

A:  It is possible, but it will involve a few steps.  In order to transfer a Sole Owner license number to a Corporation, the Sole license must be Active and in good standing.  Therefore, you would be required to first apply for a Sole Owner contractor’s license, requesting that your old number be re-issued to you.  Next, you would apply for a Corporate contractor’s license, requesting the Sole Owner license number to be re-issued to the Corporation.  This is assuming you own at least 50% of the corporation which is required in order to make the transfer. You should also be aware that once transferred to the corporation you can’t get it back as a Sole Owner.

Q:  Our company specializes in network cabling and video surveillance.  We currently have a “C-10” (Electrical) contractor’s license.  We are now being told we also need to have a “C-7” (Low Voltage) classification on our license.  I thought we were permitted to do cabling and video surveillance with our “C-10”.  If we do need to add the Low Voltage classification, will there be additional testing needed?

A:  That is just wrong. The “C-10” classification covers both high and low voltage installations so you are not required to have the additional “C-7”. 

Q:  My Partner recently passed away.  I have read that a Partnership license is cancelled upon the death or Disassociation of one of the General Partners.  I plan to apply for a new license but I know that takes some time.  We have quite a bit of work in progress.  Is it possible to request that the CSLB hold off on cancelling the license until we finish the work in progress?

A:  First of all, I’m sorry for your loss.  B&P Code Section 7076 allows for the remaining General Partner or Partners to request a continuance of the license to complete projects in progress and undertake new work for a reasonable amount of time, which will be determined by the CSLB.  This request must be made in writing within 90 days of his death.

Q:  A buddy of mine is in the process of obtaining his license but he hasn’t tested yet so it will be several weeks before he is issued a number.  Is it possible for he and I to form a Joint Venture so that he can use my license in the meantime?

A:  No you can’t.  Unless he is an employee of yours, he cannot work under your license number under any circumstances.  Both Partners which make up a Joint Venture must be licensed and in good standing. 

 

While knowledge is power, knowing where to go for the answers is half the battle. Get expert assistance immediately when you call 866-443-0657, email info@cutredtape.com, or write us at Capitol Services, Inc., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns atwww.cutredtape.com.

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