Capitol Connection 05/25/2021
FRANCHISEE LICENSING, RETAINING OLDER NUMBERS AND PARTNERSHIP LICENSING
Capitol Services, Inc. https://cutredtape.com/
Can we talk? Of course, assisting contractors for more than 30 years begins with a conversation. Sometimes it’s a question I’ve never been asked, and for another contractor it’s a common concern shared by many over the years with Capitol Services, Inc. Of course, that conversation often now begins with an email…
Q: We recently obtained a new license for our Corporation with a Qualifying Individual who was previously licensed with a Sole Owner license. We filled out the form titled “Request for License Number Reissuance” and marked the box indicating we did want his Sole Owner license re-issued. The CSLB issued us a new number! When I called, the person I spoke with at the CSLB stated that because our Qualifier’s license was Expired, they are unable to re-issue it, quoting B&P Section 7075.1. I re-read Section 7075.1 of the Business and Professions Code and the statute indicates that a “license number may be reissued after cancellation, revocation, suspension, or expiration” under the identified circumstances. Therefore, I don’t follow the reasoning the technician provided because the statute expressly permits the reissuance of an expired license number. Do you have someone you can talk to at the CSLB to get clarification?
A: Yes, do! The key in this statute is “under the identified circumstances”. If you read further along in the statute, it identifies the parameters where your request would be permissible. Sole Owner license numbers are always offered back to the applicant as long as it’s the same person. The “Request for License Number Reissuance” form specifically states the license number has to be in good standing to reissue to a corporation. The only way you could have accomplished the scenario you described is if your Qualifier would have re-applied for a Sole Owner license again, requested the number back, and then re-applied with the Corporation to have it re-issued.
Q: I have a question about a Partnership license, I know they can be tricky. If a General Partner of a Limited Partnership license (not the qualifying Partner) wants to transfer their interest to an irrevocable trust (in his name), would it be considered a “re-structuring” and therefore require a new Contractor’s license?
A: I’ve actually never been asked that before! In this instance there would not need to be any changes to the Contractor’s license.
Q: We are a Franchisor looking to expand our Franchisee business in California. Currently, we have about 25 licensed Franchisees. Our organization has many prospective Franchisees looking to obtain their license, however, while they will be required to go through our training program and most are college educated, they will lack the experience to qualify to be their own RMO initially. Is this something you’ve dealt with and are willing to discuss the possibilities and options we have?
A: Yes, we deal with this situation all the time and I am always here for guidance so please feel free to call my office anytime! Or email…