SBE News

Capitol Connection #1086

Some of the time it’s an easy contractor licensing answer, some are complex and others just take longer to develop the ‘full-time’ picture. Help arrives for a contractor planning for his road trip to AZ but, first, we start with a General looking for some ‘cool’ new business.

Shauna Krause, writer of Capitol ConnectionQ:  I am a “B” General Building contractor.  The HVAC business is huge right now and I’d like to expand my business so that I can advertise for and perform specifically HVAC work.  Is it just a matter of paying a fee to add it to my license or is a new license required?

A:  A new license is not required.  In order to add the “C-20” (HVAC) classification to your license, you will be required to document at least four years of full-time work experience doing that specific work.  You will need to take and pass the Trade exam and in addition, “C-20” contractors are required to have an EPA CFC Certificate; either Universal or Type II.  The fee to add a classification is $150.00.

Q:  We are trying to obtain our Arizona Contractors License and I don’t know if I should bother with the Reciprocity Waiver Request.  We just obtained our California license, we had our Responsible Managing Employee (RME) take the exams at the end of last year.  Should we just have him take the exams for the Arizona license?  I was under the impression you had to have had an Active license for five years in order to qualify for Reciprocity but I’ve heard conflicting information.

A:  Arizona allows for a Waiver of the Trade exam if the qualifying party has taken the equivalent Trade exam in another State and has been Actively licensed within the previous five years. So, yes go for it!

Q:  I understand that an RME (Responsible Managing Employee) is required to be a direct employee of the licensee they are qualifying and therefore they must receive W-2’s.  Does an RMO (Responsible Managing Officer) have the same requirement, or can an RMO act as a consultant and be 1099’d?

A:  Yes, while I am not a tax advisor, I can tell you RMO’s are held to the same requirement.  Whether an RME or RMO, a Qualifying Individual cannot be an Independent Contractor.

Q:  I have had a Contractor’s license since the 70’s.  I would like my son to be able to take over the license in the future if he wants the option.  I’m a General Building contractor and he is a Design Engineer.  I read that we can do a family transfer so he can retain the license number.  He wouldn’t be doing any active business, but I just want him to have it in case he branches in to the building side of things.  I would still want to be involved in the business though as he doesn’t have any hands-on experience doing building work.  Can you help with this?

A:  Thank you for contacting Capitol Services Inc.  That is a loaded question that would be best to discuss over the phone, but on the surface, it doesn’t sound like he would qualify.  Please call our office when you have time and we can chat further about your potential options.

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