By Shauna Krause, President, Capitol Services, Inc.
Better to know beforehand than worry, so let’s shock a contractor with this answer. Another inquiry seeks to know who really ‘owns’ a contractor’s license when a Qualifier parts ways with the company. Finally, a NV and CA comparison for RME’s…
Q: My brother-in-law is a “C-10” (Electrical) qualifier. He recently left the company he worked for, and he and I are going to start an electrical company. Does it matter what we name the business? He seems to remember the CSLB having an issue with his former Company’s business name and there being some back and forth which delayed the licensing process. We don’t want to run into any of that!
A: The CSLB is very particular about business names. Your business name of course cannot be misleading (i.e., you will not be able to call it “ABC Plumbing”), and it also cannot be too “general” such as “ABC Services” or “Systems Inc”. Most anything with “Electrical”, “Electric”, “Power”, “Controls”, etc. in the name should work for a “C-10” contracting business. You’ll want to check the business name with the CA Secretary of State as well to make sure it’s available for use.
Q: Our Qualifying Individual is going to be leaving the company soon. I understand that the license belongs to the company, not the Qualifier. Does that mean we automatically retain the license when the Responsible Managing Employee (RME) leaves? If we do need to put someone in his place, does that person have to take the exam, or does the fact that the company has the license waive that requirement?
A: You are correct, the license does belong to the company, so yes, the license does stay with the company if your RME leaves. However, you have 90 days to replace the Qualifier on the license. If the individual replacing your current Qualifier has never been licensed before, then yes, he/she would be required to take the exams. In certain circumstances, a Waiver of the exams may be an option. Please contact me if you’d like further information on this option.
Q: I am familiar with the requirement for an RME (Responsible Managing Employee) in California to work a certain number of hours for the company. We are interested in hiring a licensed Qualifier to help obtain a Nevada license. Does Nevada have those same hour requirements for the Qualifying employee?
A: No, they do not. Nevada requires the Qualifying Party to be a bona fide employee of the licensee and to be responsible for overseeing and making technical and administrative decisions for the company. Additionally, they are required to devote themselves solely to the employer’s/licensee’s business and not take any other employment which conflicts with his/her duties. But no hour requirement!
***
While knowledge is power, knowing where to go for the answers is half he battle. Get expert assistance immediately when you call 866-443-0657, email info@cutredtape.com, or write us at Capitol Services, Inc., 3609 Bradshaw Rd, Ste H, #343, Sacramento, CA 95827. Search past columns at www.cutredtape.com