Capitol Connection Q&A for Contractors - Week of October 5, 2015

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By Shauna Krause, President, Capitol Services, Inc.

A question from the Lone Star state and another from across the Atlantic ‘points’ to requirements in the Golden State others might find ‘foreign’ to doing business. 

First, while it may be a choice, you can ‘run’ but you can’t ‘hide’…

Q:  I am listed as an Officer of a corporation that has a lawsuit pending.  Litigation will likely take at least a year.  I plan to disassociate from the license and open a new corporation with a “clean record.”  Will the pending lawsuit be an issue when we go to apply for a new Contractor’s License?

A:  While the pending lawsuit doesn’t necessarily prevent you from obtaining a new contractor’s license, I recommend that you disclose the issue with the CSLB when applying for a new license.  The application asks that you identify all judgments and it particularly specifies both- “pending or on record”.  

Q:  We are a company based in Texas and we manage construction projects but we don’t actually do any of the work.  Consumers contact us and we will set them up with one of our preferred subcontractors to perform various services such as plumbing, electrical, landscaping, etc.  The individuals are paid by us but we do not employ them they each have their own contracting business.  We want to provide this service in CA as well.  Is our company required to have a Contractor’s License, or is it just the subcontractors that need to be licensed?

A:  Your company must have a Contractor’s License as well as each of the subcontractors performing the work.  The CSLB requires anyone providing or overseeing bids for construction, arranging for subcontractor work and schedules, and/or overseeing a project to be State-licensed.

Q:  We are Engineering corporation based in Spain and we have some work coming up in California and need to obtain a Contractor’s License.  Our attorney registered our corporation in the State of Delaware and is now working on registering us in CA as well. However, I now have several questions for you because after speaking with our attorney we both see that we may run into several roadblocks.  First, she informed us that all of our Officers need to get fingerprinted and if they don’t complete the requirement via live scan in CA the licensing process would be delayed significantly.  Is there any way to get around this if your Officers reside outside of the US?  Secondly, our attorney also informed us that all persons listed on the application need to have U.S. Social Security Numbers.  Again, is there an exception for individuals who do not live in the United States?  Lastly, our employee who will serve as our RME (Responsible Managing Employee) does not speak/read English very well.  Does CA allow for translators to assist him with the exams?

A:  To address your first question, foreign corporations are only required to list their President and the Qualifying individual on the license application so they are the only two required to be fingerprinted.  Your attorney is correct in recommending that they come to CA and complete the requirement via live scan if timing is of importance.  Secondly, if the individuals on the application do not have Social Security Numbers, they can provide their Individual Taxpayer Identification Number in lieu of a SSN.  Lastly, there is a box on the license application that your RME can check to request a translator for the exams.  The translator must be approved by the CSLB in advance and they will send him the information on the process once your application is submitted.

 

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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