By Shauna Krause, President, Capitol Services, Inc.
Your Qualifier just called and quit, what now? We ‘bond’ with a young contractor who is following in his father’s footsteps. We ‘re-member’ rules on a ‘limited’ question about names, but first new law brings new opportunity for contractors ready to travel…
Q: One of my subcontractors recently obtained his Arizona license and he didn’t have to take the trade exam because he has been licensed in Oregon for over 5 years. It was my understanding that Arizona’s reciprocal agreement was only with California, Nevada, and Utah. Did something change?
A: Yes, there were several changes to the licensing law in Arizona that became effective July 1, 2014. And yes, one of those changes was expanding the reciprocal agreement to include all States that require licenses. This being said, contact our office if you need assistance with obtaining an Arizona contractor’s license or information on any other state’s regulations.
Q: I have worked for my father’s contracting company for many years and he passed away recently. I have applied for a new license and I’m requesting that his license number be re-issued to me. The CSLB sent me a letter requesting a contractor’s bond. My Dad just renewed the bond on his license. Can I request that the CSLB also transfer his bond?
A: No, unfortunately bonds are not transferrable. So even though you will be keeping your father’s license number you will need to obtain a new contractor’s bond.
Q: My CPA recommended that I change my corporation to LLC since CA now allows Limited Liability Companies to have contractor’s licenses. On the application I see that there are boxes to check for “Responsible Managing Member” and “Responsible Managing Manager.” What is the difference between Member and Manager?
A: It is my understanding that “members” own interest in the company while “managers” are employees of the company who function as Officers of a corporation would, but without having a share of the company’s profit. You should consult your CPA or an attorney to assist you with the formation of your new LLC.
Q: We are a fire sprinkler installation company and one of our competitors is using a Responsible Managing Employee (RME) that is not involved in the company at all. He receives a monthly payment but he lives out of state and works for another company full time. How do I make the CSLB aware of this?
A: You would want to complete a complaint form which is available on the CSLB’s website. It is also helpful to submit any supporting documentation that you have available. The CSLB will “investigate” the complaint from there.
Q: Our Qualifier resigned from our company recently. We have a new individual that is going to Qualify for the company but he is currently the Qualifier on another company’s license. I see the form to replace the Qualifying party, but does he need to disassociate with his prior employer first, or is that automatic? Also, does the license number change when we switch out the Qualifying party? In other words, do license numbers follow the individuals or stick with the company?
A: No, he is not automatically removed from the current license. He will need to complete a Disassociation Notice to remove himself from his previous company’s license which is available on the CSLB’s website www.cslb.ca.gov.
License numbers stay with the company. In certain limited circumstances you can transfer a license number, but in the case of a corporation such as yours, the license number remains with the company.
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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