Capitol Connection Q&A for Contractors - Week of May 22, 2023

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By Shauna Krause, President, Capitol Services, Inc.

Can what’s old really be ‘new’ again?  I give a contractor a very positive spin and sort a competitive question about multiple names before charging into the answer on battery storage systems licensing…

Q: If I was a Responsible Managing Employee (RME) in 2016 but am no longer associated with a license, can I initiate a license under a new company with my old test results?

A: If you have not been associated with a license for over five years, you will be required to re-test to become the Qualifier on a license again.

Q: I always get helpful information from your posts. I currently have a Sole Proprietorship “B” (General Building) license. Would I be allowed to RMO an additional two licenses as long as I have 20% ownership in each corporation? It is very important to me that I be able to maintain my own license for projects on the side.

A: Yes! Actually, as long as you have 20% ownership in each company, you can actually qualify up to threelicenses aside from your personal license.

Q: We are discussing internally whether there is any benefit to operating our company under two business names, however we are unsure if we are able to do this as a contractor licensed entity. For example, I am aware that in CA licensed contractors are not permitted to conduct business under more than one name for each license (Cal.Bus. & Prof.Code § 7059.1), however I know there are other companies, including our competitor, who operate with two different names. Do you have any insight on if and how licenses entities can operate with multiple business names in CA, AZ and NV? Take CA for example, does the section referenced above simply prohibit a company from operating under two names entirely, or does it mean that we would need to obtain separate licenses for each name?

A: Companies operating with more than one business name either have multiple businesses set up with separate contractor’s license numbers, OR they are operating under different dba names under the same entity, with each dba needing it’s own contractor’s license.

Q: What type of license is required for battery energy storage systems? I’m an out of State contractor and I’m getting answers that are all over the map.

A: That’s because the answer is somewhat all over the map. A licensed contractor with an “A”, “B”, “C-10”, or “C-46”  classification can perform work involving battery energy storage systems.

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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. 

 

 

 

 

 

 

 

 

 

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