SBE News

Capitol Connection #1052

Sometimes, it’s yes and no as conditions dictate. Either way may be right. It takes a skilled expert to tell the difference. As builders know, ‘it’s measure twice, cut once’ but contractors complex law is sometimes all about ‘splitting hairs’…

Shauna Krause, writer of Capitol ConnectionQ:  I will be purchasing the corporation I work for in April 2018.  We are a “C-20” Heating and Air Conditioning company. What do I need to do in regards to licensing? I understand the license stays with the corporation, ut is there anything I need to do in order to become Qualified?  What are the fees associated with this?

A:  Whether the license stays with the corporation or not depends on what type of sale it is.  If it’s a Stock sale, then yes, the license remains with the corporation.  However, if it’s an Asset sale you will need to apply for a new license number.  To become the Qualifying Individual on the license, you will need to submit an application which must document at least four years of full-time work experience doing HVAC work.  You will also need to take the exams (Law and Trade) and be fingerprinted.  If you will be replacing the Qualified Individual on the existing license, the State fee is $150.  If you will be applying for a new contractor’s license, the State fee is $530.

Q:  I currently work for a construction company and their Responsible Managing Officer (RMO) is resigning from the company.  They will be left without a contracting license.  Knowing I have my own license, they approached me asking if I would like to become the Responsible Managing Employee (RME) for the company and operate under my license.  Can this be done without reissuing a new license number?  If I leave the company, will the Disassociation Request be dependent upon a signature from the company to be granted/approved?

A:  I looked up your company’s license and it is a corporation, in which case the license belongs to the company.  Therefore, they will not lose their license/license number and they will not be operating under yours.  In fact, since you would be acting as the RME, you will be required to Inactivate your Sole Owner license.  You can Reactivate it in the future if you decide to leave the company. The Disassociation Notice can either be signed by you or an Officer listed on the license, either way, will be acceptable.

Consumer and Contractor Alert!

Amid all the recent disasters which have caused massive property destruction in CA, the CSLB recently circulated a brochure with tips for consumers looking to hire a contractor.

  1. Hire only State-licensed contractors.
  2. Check the contractor’s license number online at, or by calling 800-321-CSLB (2752).
  3. Get at least three bids.
  4. Get three references from each bidder and review past work in person.
  5. Make sure all project expectations are in writing and only sign the contract if you completely understand the terms.
  6. Confirm that the contractor has Worker’s Compensation Insurance for employees.
  7. Never pay more than 10% down or $1000, whichever is less. *Don’t pay in cash.
  8. Don’t let payments get ahead of the work.
  9. Keep a job file of all papers relating to your project, including all payments.
  10. Don’t make the final payment until you’re satisfied with the job.

A season of terrible loss in our state, it would be doubly tragic to have our neighbors stricken again by unlicensed work. And criminal penalties are harsh.

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, or write us at Capitol Services, Inc., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns at