Capitol Connection #1006
Capitol Connection: Mick Jagger couldn’t get it. However, our first contractor will find ‘satisfaction’ in my answer while our second contractor not so much. While I help find a way, another contractor gets advice just in time to save his ‘venture’…
Q: My company has a “C-22” (Asbestos Abatement) Contractor’s License in California and we are going to be forming a Joint Venture with a company that has an “A” license. We plan to have both classifications associated with the new Joint Venture license. I remember we ran into issues when we obtained our “C-22” license earlier this year with regards to being registered with DOSH. Will the Joint Venture need to be registered with DOSH to obtain the license, or is the fact that one entity has a DOSH Registration enough?
A: The fact that your entity is registered with DOSH satisfies the requirement. You do not need to register the Joint Venture with DOSH, and in fact, it is our understanding that DOSH will not issue a registration number to a Joint Venture.
Q: I have an Inactive Contractor’s License in California (Class “A”, “B” General, and “C-10” Electrical). I recently moved to Arizona and have an opportunity to do a solar project at a single location. Is this possible for me to do without obtaining an Arizona Contractor’s license? If not, how long does it take to get a license in Arizona and will I qualify for Reciprocity?
A: Any contracting work done in Arizona over $750, even if it’s just one single project requires a Contractor’s License. As you stated, your California license is currently Inactive. To qualify for reciprocity which will grant you a Waiver of the Trade exam, you are required to show you passed the equivalent exam in the State you are licensed, and your license must have been Active within the previous five years.
Q: We have a General Building (“B”) classification and a Roofing (“C-39”) classification on our company’s license. We have always run the business with a staff of all Officers of the corporation, so we don’t have any employees. As you probably know, Roofing contractors are all required to have Worker’s Comp Insurance, regardless of whether they have employees. We are wanting to Inactivate the license to avoid paying Comp, however we have 20+ active contracts in all phases under a Joint Venture license with another entity, which only holds the “B” classification. Some of the contracts are signed but work has not started yet. Will Inactivating our company license preserve the Joint Venture license and at the same time eliminate the need for worker’s comp?
A: Absolutely not. Joint Venture licenses are made up of two entities, each of which must have a current Active Contractor’s license. If you were to Inactivate your company’s license, the Joint Venture license would in turn be Suspended. If you are not using the “C-39” classification, and only require the General Building (“B”) I would suggest you submit an application to remove the Roofing classification from your license. Once it’s removed, you can submit an Exemption from Worker’s Comp form and cancel your policy.
By Shauna Krause, President, Capitol Services, Inc.
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 firstname.lastname@example.org, or write us at Capitol Services, Inc., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns at www.cutredtape.com.