SBE News

Capitol Connection 01/27/2020

Retaking Exams, Comp Suspension And License Transfer To An LLC

The second question should probably be first, but the suspense is too great! 

A complicated question from a lawyer that has its roots in a contractor’s ‘family tree’. Finally, a worried applicant may need a second, or third, or fourth ‘take’ to pass his contractor’s exam, and that’s okay! …

Q:  Our license is currently Suspended because the CSLB has not processed the Worker’s Comp certificate that our insurance company submitted yet.  It’s also up for renewal and expires at the end of the month.  If I submit the Renewal application with a Suspended license, will they still renew it timely?

Shauna Krause, writer of Capitol Connection

A:  I would suggest submitting the Renewal application with the Worker’s Comp Certificate and then they will process them together.  As long as the CSLB has an acceptable Renewal before the expiration date, they will retroactively renew the license.  They are taking about three weeks right now to process renewal so the sooner you send it in the better!

Q:  I am an Attorney and I have a client whose Trust I’m handling.  He unfortunately is not doing well.  He has a Sole Proprietor Contracting business that his Son has basically been running for the last 6+ years.  Before he “took over”, the Son worked for him for at least 10 years prior.  The Son would like to continue the business with the low license number but operate as a Limited Liability Company (LLC).  Let’s say the Father applies now to transfer his license number to an LLC.  If he were to pass away, does that license number go away because it was originally his number, or does it now belong to the LLC?  If it’s the latter, can the Son take over the license?  And would he need to take the exams?

A:  Three questions and I have three answers for you.  If the Father transfers the license number to an LLC, then the license number would remain with the LLC if anything unfortunate and unexpected were to happen to the Father.  Being that the Son has worked for his Dad for so long, he would be able to qualify to take over the license as the Qualifier.  There are only a few ways to qualify for a Waiver of the exams, and given the background you gave me, he would likely qualify, however please call me to discuss this further. 

Q:  My company wants me to be the Responsible Managing Employee (RME) for their “A” (General Engineering) license.  I applied for my own personal license just to get through the exam before I go through the process of applying as their RME.  I have a test scheduled for next month, but they are pressuring me to get started on the process of getting the company licensed.  What happens if I don’t pass the exams?  I don’t want to hold the company up any longer than I have to.

A:  If you don’t pass the exams the first time around, the CSLB requires that you wait three weeks to re-take them.  You can take the exams as many times as you need to within an 18-month period.