SBE News

Capitol Connection #1075

Some state’s contractor exams are hard while others can be an ‘open book’. However, our first contractor gets a ‘pass’ on one exam and ‘cracks’ the book on another. A NV question has a ‘foreign’ accent, while I demonstrate how to ‘cut red tape’ for a multi-state contractor…

Shauna Krause, writer of Capitol ConnectionQ:  I am going to be taking the Arizona Construction Business exam.  I don’t believe I have to take the “CR-39” (Air Conditioning & Refrigeration) trade exam, although I’d like you to check on that for me if you could.  I read in PSI’s informational packet it is permitted to bring a book in the Business exam with me.  Do you have the book and am I allowed to take notes within the book?

A:   With regards to the trade exam, I checked your CA license and you just recently took the exams to get your “C-20” (HVAC) license, which is considered the equivalent to Arizona’s “CR-39” exam.  Your CA license is also currently Active, so based on those two factors you should not have to take the trade exam in Arizona.  Just be aware Arizona ROC (Registrar of Contractors) does not do their own research so you will need to get verification of your CA license to submit to Arizona.  Contact our office if you’d like assistance with obtaining the verification.

As you stated, Arizona’s Business Management is open book.  They do not allow you to make notes in the books, however you can tab the book with PSI’s pre-made tabs. We have the book we can send out to you, or you can order it online.

Q:  I have a Limited Liability Company (LLC) Registered in Nevada related to my Nevada contractor’s license; can I use the same LLC I have there to apply for a California license, or do I need to form a separate LLC?

A:  Yes, you can.  You can apply as a “foreign” LLC in CA.  That will allow you to use your existing NV LLC to do business in CA.  We can help you with the licensing process in CA. You may qualify for Reciprocity as well, so contact me to look into this option in particular.

Q:  We are currently licensed in California and Utah as a General Building contractor.  Will this speed up the process of obtaining a license in Nevada?

A:  It will not necessarily “speed up” the process in Nevada, however there may be less paperwork involved based on your CA or UT license.  If your Qualifying Individual has been licensed (Actively) for five out of the last seven years and passed the trade exam when they were originally licensed in CA or UT, they will qualify for Reciprocity in Nevada.  While it doesn’t speed up the process of obtaining the license (since the Business/Management exam is still required), it does eliminate the need for references and a resume, therefore reducing the amount of paperwork involved.

CSLB ‘Strikes’ Scammers Out- According to news from the Board, unlicensed contractors were busted in an April ‘sting’ operation by SWIFT and local law enforcement in Napa County. Fourteen suspects busted for (Strike One) contracting without a license, twelve also cited (Strike Two) for unlawful advertising and (Strike Three) six bidders required excessive down payments. A first-time conviction could result in a fine up to $5000 and/or up to six months jailtime for unlicensed contracting.

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