By Shauna Krause, President, Capitol Services, Inc.
While we have previously mentioned that contractor’s law in written in black and white, as readers know, there is a middle ground. This is one reason expert opinions are required, as the ‘gray’ areas can be loopholes or quicksand for contractors! These ‘spaces’ in the written law also are exploited by some who just want your money…
Q: I read your column in the North Coast Builder’s Exchange newsletter and we used your company to help us get a license for a new division of ours. We are a construction manager for an owner in Oregon and we are not the entity that contracts with subcontractors. Are there any licenses, besides the applicable local business licenses, that we need to have?
A: Thank you for contacting Capitol Services and following our column in the North Coast Builder’s Exchange newsletter. The answer to your question has ‘historically’ always been somewhat of a ‘gray’ area. Some might say that it depends on exactly what type of work you are doing. However, there was a bill that passed in 2013 that specified the term “Contractor” to include consultants who provide or oversee bids, or arrange for and set up work schedules and maintain oversight of a home improvement project. That being said, if you are doing these duties you should hold a contractor’s license.
Q: Capitol Services is currently helping me obtain my license and I received the Annual Minutes Requirement Notice from the Corporate Compliance Center that is due by the end of the month. I assume we are to mail it back and pay the fee?
A: It sounds like you received a ‘solicitation’. While you may want to keep annual minutes internally, these minutes are not filed with the State nor are you required to use this company to prepare your corporation’s annual minutes. I am also not aware of any “due date” for annual minutes. As we are not attorneys and cannot provide legal advice, it’s best if you contact a business attorney if you have further questions regarding this subject.
Q: Can we use an employee from one of our sister companies to Qualify a new license, or is that individual required to be employed by the license holder?
A: The CSLB requires that the Qualifying Individual be employed by the entity for which he/she acts as the RME/RMO. There is no limitation that would restrict that individual from being employed by both entities as long as he/she complies with Board requirements for acting as the RME/RMO.
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.