By Shauna Krause, President, Capitol Services, Inc.
While it’s not pulling a rabbit out of a hat like the stage magician, we will show a contractor the way to change a ‘member’ into a LLC ‘manager’. SWIFT justice comes to ‘posers’ who harm real contractors with acts no one will applaud and, unfortunately, we can’t help a contractor make ‘ornamental metal’ stand-in for a ‘structure’…
Q: Your firm assisted us in getting set up with our “B”, “C-23” (Ornamental Metal), and “C-17” (Glazing) licenses. We would now like to add the “C-51” (Structural Steel) to the license. Our company is very diverse and sometimes gets into areas that could be considered “structural” and we of course don’t want any problems. Would this require an examination if we use the same Responsible Managing Officer (RMO) that holds our current licenses?
A: Thank you for contacting us again. While the CSLB will sometimes consider waiving a trade exam for an individual who has held a classification that is very closely related to the classification being applied for, in my opinion the “C-51” is not very closely related to the classifications currently on your license. I don’t believe the CSLB will grant a waiver of the trade exam in this case.
Q: We recently obtained a contractor’s license for our Limited Liability Company (LLC). We noticed on the license that the CSLB has our personnel listed as “members” instead of “managers”. I’m not sure if this was our mistake when we applied or the CSLB’s mistake, but regardless, we need to get that corrected. How do we do that?
A: This change can be made by completing an Application to Report Change of Title for Current Personnel of a Limited Liability Company with the Board. There is no fee for filing this change.
As indicated in a recent CSLB press release, “one of the goals of (our) undercover sting operations is to convince those caught for illegal contracting that they’re far better off getting their license and working as a legitimate contractor.” Unfortunately, for some individuals that message just doesn’t seem to sink in.
Of the 13 persons cited April 24 on illegal contracting charges at stings in Chino and Lake Elsinore, three were repeat offenders, including one who had a $5,000 warrant hanging over his head for failing to appear in court on a previous contracting violation.
As has often been covered in this column, the CSLB’s Statewide Investigative Fraud Team (SWIFT) regularly conducts these sting operations in order to put a dent in the underground economy. In this most recent action, CSLB investigators requested bids for painting, fencing, concrete, and tile work at two locations, with the highest estimate coming in at $9,350 for a fence project. The suspect with the $5,000 warrant, is a very familiar figure to CSLB investigators. He’s an unlicensed painter from Riverside who has three prior misdemeanor charges related to illegal contracting, and has been cited twice by CSLB on administrative violations.
The Contractors Board tries to bring unlicensed contractors over to the legal side and will even give those caught in these stings an application to apply for a license. However, according to CSLB Registrar Steve Sands, “we won’t tolerate these chronic offenders who think they can sidestep the law and endanger the public.”
Twelve of the 13 suspects, including the previous offenders, received misdemeanor citations for contracting without a license. According to B&P Code 7028, conviction penalties for contracting without a license include up to six months in jail and/or up to $5,000 in fines -- plus penalties escalate with successive violations.
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. 580, Sacramento, CA 95814. Research past columns at www.cutredtape.com.
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