Capitol Connection Q&A for Contractors Week of July 23, 2012

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By Shauna Krause & David Kalb, Capitol Services, Inc.
 
The sushi master can cut fish thin but the law ‘cuts’ contractor’s regulation even finer. While it may be okay here, it won’t be over there- what’s a contractor to do in navigating this bureaucratic maze? Regulations exist for almost every aspect of ‘doing business as’ a contractor…
 
Q:   Do I need a contractor’s license to remove graffiti from public and private property?  Our process is to use chemical paint lifters and pressure washing. I have knowledge of the laws in AZ but not in NV or CA where I’m looking to get licensed.
 
A: Thank you for contacting Capitol Services.  In NV a license would NOT be required to REMOVE graffiti via chemicals and pressure washing; however, in CA a “C-61”/”D-38” (Limited Specialty) license would be necessary.  However, a contractor’s license would be required in both states if you also APPLY any paint or sealant after you remove the graffiti. Now that you know you need a license in one or both states, call us back to discuss the application process.
 
Q:  We have a corporation “Smith Concrete Inc., dba Smith Home Remodeling” which has both a “C-8” concrete and “B” General Building license.  Can we advertise and do business as “Smith Concrete Inc” in relation to our “C-8” work, and concurrently advertise/do business as “Smith Home Remodeling” on our General Building projects?
 
A:  Sorry you may not do business as two different names with only one license number.  You can either do business under your entire name, “Smith Concrete Inc., dba Smith Home Remodeling” or use just your  ‘doing business as’ (dba) “Smith Home Remodeling”.  To simultaneously conduct business under two different names, you may want to apply for a second “C-8” license under Smith Concrete Inc.-- with no fictitious business name (dba).  Then you can use the new license number to advertise and conduct your concrete work, while using the existing license for your general construction.
 
Q: We are currently licensed as a corporation in CA, however this is a Limited Liability Company (LLC) in our home state.  Now that the CSLB is issuing licenses to LLC’s, we want to get a license for that business entity as well.  We would like to use an employee of our CA corporate entity as our Responsible Managing Employee (RME) since he has his own inactive Sole Owner license.  Does he have to be an employee of the LLC or could he be a consultant?
 
A:  The new law allows them to serve as a Responsible Managing Member, Manager or Officer (RMM or RMO), or be designated as a RME. Contractor’s Board regulation #823 addresses the specific requirements related to RME’s including that this individual be a Bona-fide employee of the LLC (not a consultant).
 
Q:  I hold a ”B” contractors license and want to be able to take on projects for painting and tile work.  I understand that with my “B”, I can’t do single trade projects without holding these classifications.  Do I have this right?  What would be required if I want to get these two licenses?  Is there any way to get an exam waiver?
 
A:  You are correct; General Building contractors must either hold the specialty class (in this case the “C-33” painting and “C-54” tile) or sub-out the work to a properly licensed specialty contractor.   To secure these classes (and self-perform this work), you’ll need to file two Applications For Additional Classification.
 
The CSLB will only allow you to file one application at a time.  You can request an exam waiver by submitting significant proof (i.e. project lists) that you have handled these trades since your license was issued 5 years ago.  Even with these detailed projects lists, the CSLB may still require to sit for the trade test.
 

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., 1225 8th St. Ste. 580, Sacramento, CA 95814. Research past columns at www.cutredtape.com.
 

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