By David Kalb, President of Capitol Services, Inc.
Parting may be ‘sweet sorrow’ but it’s also more paperwork for contractors. Nothing ‘ventured’, nothing gained. As a license qualifier departs it can also open up new avenues of individual opportunity. Another contractor faces a dire situation, and last I want your feedback to share…
Q: I am in the process of leaving my company. What steps do I need to take to remove myself from their license as I was the Responsible Managing Employee (RME) for the A & B. Being that I took and passed the tests is it possible for me to carry my own license forward into my next venture or do I need to re-test? Please let me know how to go about this. Thank you
A: The first step would be to complete and file a Notice of Disassociation to remove yourself from your present license. Since the license belongs to the corporation not you as the RME, you can take these classifications anywhere you want; however, you may not take the license number. If “your next venture” is to operate as a Sole owner, you’ll need to apply for a new original license. If you intend on qualifying as a RME on another corporation, you’ll need to file two applications for additional classifications. Either way there is no need to re-test.
Q: I have enjoyed reading your Q&A in the 'California Builder & Engineer' for many years.
About 10 years ago I was forced to bankrupt my Engineering Company. I also had an unrelated contracting company. One of the listed creditors was a bank. About the same time as I was making this filing, a company purchased what they thought was a recoverable obligation. They either did not know or did not care if they were violating an automatic stay.
Nevertheless, they failed to file a demand under a list of creditors and proceeded to secure a judgment from a Court. I knew nothing about the court action and was not served notice of the hearing. This is by way of background.
I am upset at the actions of the Contractors Board since they will not issue my 'pocket card', even though my fees are paid, and I requested 'inactive' status. After the Contractors License Board had deposited my renewal check, they sent me a letter saying they could not issue my pocket license, which is required when contracting.
Section 7071.17 of the B & P Code regarding judgments states "construction related". What does a credit card issued to Engineering Company have to do with my contractor’s license? Any suggestions on what to do?
A: Your license has been renewed Inactive until 2013 but is suspended due to “an outstanding civil judgment”. I do not know why the Board would hold back issuing a pocket card with an “inactive” license. Conversely, with an Inactive license the pocket card is not critical since you cannot do any contracting.
I would suggest providing the CSLB with a copy of your BK, which lists the applicable bank creditor? Often this is the only thing the Board looks for. I do not believe it matters that someone else purchased the asset; however, I would consult with a bankruptcy attorney to see if this is an issue.
If this doesn’t work you might try making the argument that “a credit card issued to an Engineering Company” is not “construction related” however, it’s up to the CSLB to determine what does and does not fall into this category.
CONTRACTOR ALERT: If you have called or emailed the Governor’s Office regarding the CSLB hiring freeze, please contact me with the response you have received. Hardest hit are the Board’s enforcement efforts against the underground economy and the “phone units” ability to respond to everyday calls from contractors and consumers.
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 me at Capitol Services, Inc., 1225 8th St. Ste. 580, Sacramento, CA 95814. Research past columns at www.cutredtape.com.
***