Capitol Connection #1008
Capitol Connection #1008
By Shauna Krause, President, Capitol Services, Inc.
While change can be a pain our first contractor finds some relief in my answer. The possible ‘suspense’ is causing another contractor to watch the clock and worry if he can go to work before his time runs out…
Q: I am a licensed “C-45” (Electrical Sign) Contractor and I am going to be retiring soon, selling my business, and backing out completely. I want to make the transition as painless as possible and I’m hoping you can help me with the process. The prospective buyer does not have the experience to Qualify for the license, however I have an employee who recently obtained his “C-45” Sole Proprietor license and he is willing to be the RME (Responsible Managing Employee) for the license. What is the process to make the necessary changes to the license?
A: The process will vary depending on whether you are doing a Stock sale or an Asset sale. With a Stock sale the buyer can keep the existing license number and make the appropriate changes to the existing license. He would submit his Application to Replace the Qualifier to add your “C-45” employee to the license as an RME. Be aware that as an RME, the employee would be required to Inactivate his Sole Proprietor license. The buyer would also need to file the forms to update the Officers to remove you (and anyone else who is no longer going to be associated with the business) and add himself as an Officer.
With an asset sale, the buyer would be required to form a new entity and file for a new License number.
Q: I recently obtained my “C-22” (Asbestos Abatement) Contractor’s License. One of the requirements was that I show proof that I was in process of registering with DOSH, which I did. I haven’t completed the registration process yet. Is there a specific time-period I have in completing this process? Am I able to legally work now that the license is issued?
A: The CSLB will issue a “C-22” license provided that you show you are in process of registering with DOSH, however you are not permitted to perform any Asbestos abatement work until you submit proof to the CSLB of your completed DOSH registration. The CSLB allows you 90 days from the time your license is issued to submit proof of registration. If you do not submit proof within 90 days, your license will be Suspended.
Q: We have a Joint Venture (JV) license made up of three entities that we obtained for a large project which was completed at the end of last year. We have another opportunity to bid on a large project due to start early next year. Are we required to get a new Contractor’s License? We are unclear as to whether Joint Venture licenses are for single project purposes or if you are permitted to perform multiple jobs with the same JV License.
A: Licensed Joint Ventures are permitted to perform multiple projects in the State of California.
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 email@example.com, or write us at Capitol Services, Inc., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns at www.cutredtape.com