By Shauna Krause, President, Capitol Services, Inc.
I will get ‘artsy’ before this installation of questions and answers concludes!
First, let’s give extended life to a ‘zombie’ license, before pumping the brakes on a purchase agreement. Another inquiry illustrates how contractor license law is sometimes murkier than clear, despite having the rules in writing…
Q: Am I able to add a classification to an Inactive license? I’m thinking that if I am required to pay to activate it in order to add a classification, I’ll just hold off until I’m ready to use the license.
A: Yes, you can add a classification to an Inactive license, no need to pay to activate it first!
Q: I am considering buying an existing contracting business, however I’m not a Contractor. My expertise is in Business, I have an MBA. My Business Broker informed me my degree would be beneficial when putting the license in my name. He also suggested that I contact you regarding additional experience or requirements to make sure I can continue business as is once the purchase is finalized. Do you have any advice for me?
A: You will need to have a Qualifying Individual on the license. Sometimes buyers make it part of the deal for the seller to remain on the license for a certain amount of time until they gain the necessary experience.
Another option is hiring someone with the relevant experience OR using one of the employees who has worked for the business for an appropriate period of time to Qualify the license. The experience requirement is a total of four years of full-time experience in the classification on the license. The CSLB will give you up to three years of credit for education depending on your course of study.
Q: One of your previous Q&A’s makes reference to a Qualifying Party qualifying two company licenses at the same time if “the majority of the personnel are the same”. What does that mean exactly? The employees/staff need to be employed by both companies? I’m a bit confused by how that would be possible or make sense.
A: I understand your confusion! By “personnel”, the CSLB is referring to the Officers/Members/Managers of the entity. More specifically, the individuals (or entities) listed with the CA Secretary of State and in turn, listed on the contractor’s license under “Personnel”. We are not referring to staff/employees.
Contractor License Requirements for Creation and Installation of Artistic Works:
The Contractors State License Board (CSLB) is issuing a reminder about contractor license requirements as they relate to the installation or creation of artistic works in public or private places.
Some examples might include painting of murals along roadways or on indoor or outdoor walls; bolting, cementing, or welding of metal or iron artistic structures to the ground or to other permanent structures; or installing other durable artwork to indoor or outdoor permanent structures or land.
Whether the ultimate purpose of the work is functional or artistic, such services will require a contractor’s license if the activity meets the definition of “contractor” in Business and Professions Code section 7026.
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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 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.