Capitol Connection #1060
You can ‘share’ almost anything on social media, but contractor’s licenses are not one of those things. I remind a frazzled contractor why it’s important to keep your ‘snail-mail’ address up to ‘speed’ with the Contractor’s Board. And we wrap with how a ‘name’ gives direction, and just because others are jumping off the cliff doesn’t make it right…
Q: My husband has a corporate contractor’s license in California. He is the RMO/CEO and President. My husband’s son (my Stepson) and I are Officers of the corporation. My Stepson does some contracting on his own. My Stepson also has his own corporation. He believes he can do contracting work under his corporation because he is listed on my husband’s license. Is this true?
A: No, that is not true. A corporate license number is issued exclusively to a specific corporation. Your Stepson’s corporation is a separate entity, and would need it’s own contractor’s license in order to do contracting work over $500. Being listed as an officer on a license does not permit an individual to contract under a different business entity.
Q: I just received a letter from the CSLB stating that my pending application is going to go void soon. When I look it up online it says I failed to appear for my exam. I don’t recall ever receiving notice of an exam date. Is there anything I can do at this point?
A: Don’t panic, I looked up your pending application and it doesn’t go void until February 15, two thousand nineteen (perhaps you thought it was next month). When you fail to appear for an exam you are required to pay a $60 re-schedule fee and they will get you set up with a new date. You should also be sure that the CSLB has the correct address on file to ensure you receive your exam notification.
Q: I’m going to be purchasing a company which has a current/valid contractor’s license. The seller who is currently the Qualifying Individual does not want to be associated with the license. While I don’t have the requisite experience to qualify and pass the exams, I have a guy who is willing to be the RME on the license (his personal license is currently Inactive and he no longer does contracting work). My attorney is telling me that if my RME is not technically an employee of the entity, our contractor’s license will not be valid. The thing is, I know of companies who are doing exactly that. Was it allowed in the past and it’s just no longer permitted?
A: An RME (Responsible Managing Employee) is required to a be a bona fide employee of the licensed entity. CA Code of Regulations (T16CCR) section 823 states that the RME must be permanently employed by the applicant and actively engaged in the operation of the business for at least 32 hours per week or 80% of the total hours per week that the business is in operation. This rule has always been in effect. While there may be companies out there who have an RME listed on their license who is not technically employed by the company, those companies are operating improperly and it is likely only a matter of time before the CSLB is made aware and possibly takes disciplinary action.
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 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.