Capitol Connection Q&A for Contractors - Week of August 17, 2015

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By Shauna Krause, President, Capitol Services, Inc.

Not paying taxes is a no, no and that’s the unfortunate answer required in our first Q&A. While reciprocity is a benefit for licensed CA contractors, there are still some ‘general’ rules that can’t be skipped. Another questioner is ‘floored’ by news that he will be required to have the appropriate contractor’s license and appropriate classification to ‘seal’ the deal…

Q:  Our Corporation is currently suspended with the Secretary of State because we failed to pay taxes the last few years (we weren’t doing any business in California).  We now have a big job opportunity in Southern California and need to get everything in order so that we can sign the contract.  I looked up our contractor’s license and it shows a former employee still listed as our Qualifying individual.  Can we work on replacing him on the license prior to dealing with the tax issues?  I just wanted to hopefully get a head start on these items if possible.

A:  No, no. The CSLB will not add the new Qualifier until your corporation is back in good standing with the Secretary of State.  You must meet all Suspension requirements before you can add a new Qualifying individual. 

Q:  You helped my company obtain a General Contractor’s License in California in 2012.  I am the one who took the exams and I am listed as a Responsible Managing Officer (RMO) on the license.  We now need to obtain our license in Nevada and Arizona.  Can we do this with reciprocity and waive the exams?

A:  Thank you for contacting us again.  Nevada requires that you be actively licensed in one of the reciprocal States for five out of the last seven years.  Since you only obtained your license in 2012 you will not meet the reciprocal requirement in Nevada.  Arizona doesn’t have “reciprocity” any longer, however they allow for you to Waive the trade exam (the Construction Business Management exam is still required) if you can show that you: a) passed the equivalent exam in another State, and b) your license has been active and in good standing at some point within the preceding five years.  It does sounds as if you qualify for a Waiver of the trade exam in Arizona.

Q:  We are a flooring company and I need to know if I need a contractor’s license, and if so, what type of license would be required? The main type of work that we have always done is carpet and floor (tile, concrete, laminate) cleaning.  But we have started to occasionally do more extensive cleaning such as coatings on the concrete and laminate floors as well as touch up caulking on tile floors.  We have a potential job coming up for a large retail facility and I want to make sure that we are in compliance.  Thank you for your advice.

A:  While you are not required to have a contractor’s license to do carpet/floor cleaning, you do need a license for the more extensive work that you mention such as seal coatings.  The appropriate classification for that type of work would be a “C-61”/”D-12” license.  There is no trade test for the “C-61” classifications, only the Law exam is required.  The “C-61”/”D-12” (Synthetic Products) license covers resin and epoxy applications as well as synthetic caulking and sealants.  As with all classifications, you will need to have a qualified individual who can show at least 4 years of experience doing this type of work.  Give us a call if you’d like assistance with obtaining this 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 info@cutredtape.com, or write us at Capitol Services, Inc., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns at www.cutredtape.com.

 

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