SBE News

Capitol Connection #1094

Need Comp? When you absolutely won’t. Planning a ‘family’ license ‘tree’ and how to grow it into the future as one contractor looks ahead. Like legal ‘superheroes’ a lawyer can save the day, but even a ‘power of attorney’ has it’s limit, and that’s why I’m here!…

Shauna Krause, writer of Capitol ConnectionQ:  We are going to be filing for a Joint Venture (JV) license with two other entities.  Typically, when we file for JV licenses we file the Exemption from Worker’s Comp, however in this case, one of the entities has an RME (Responsible Managing Employee).  Does that create the need for the JV to obtain a Worker Comp policy?

A:  No it does not.  The RME is an employee of one entity, which is part of the JV, but the RME is not a direct employee of the JV itself.  As long as the Joint Venture entity itself will not have direct employees, you can file the Exemption from Workers Comp.

Q:  I currently have a corporate contractor’s license.  My Son has worked for me for over ten years and I’d like my Son take over the business eventually.  If I were to make him an Officer and have him replace me on the license as RMO (Responsible Managing Officer), does that remove me from the license?  I’m not sure I’m ready to remove myself from the license, but at the same time, I want to take care of this in case anything were to happen to me unexpectedly.  Thank you in advance for your advice.

A:  No, you do not have to remove yourself from the license.  You have the option to remain on the license as an Officer when you apply to have your Son replace you as RMO.

Q:  Our license expires at the end of this month and one of our signers is not going to be available to sign until the end of next week.  I know the CSLB needs time to process it so I’m a bit nervous.  Is there a way I can have Power of Attorney executed for someone else to sign?  If not, is it going to be an issue to wait to submit until he is available to sign?

A:  You cannot file a Power of Attorney with the CSLB that would give someone who’s, not officially listed on the license, signing authority for the license.  I looked up your license and you have two CEO/Presidents listed and an RME.  The RME has to sign, and then just one of the Presidents, you don’t need all three signatures.  I would suggest sending it in as soon as possible though because the CSLB is currently taking about three weeks to process Renewals.  As long as you get an acceptable Renewal in before the expiration date, even if they don’t process it by the deadline, they will retroactively renew the license so it will not show a break in licensure.

Q: What type of license is required to do rigging in California?

A:  The “A” General Engineering license is required to perform rigging work.  In 1987, the “C-61”/”D-36” (Rigging and Rig Building) was discontinued and that work was put under the General “A” license.

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