By Shauna Krause, President, Capitol Services, Inc.
Having assisted contractors for many years, I know sometimes you need an answer yesterday, because tomorrow may depend on it. And while most of us are going back to the office after Covid, an out-of-state contractor still wants to work ‘remotely’…
Q: We are a newly formed Delaware Limited Liability Company (LLC) with several subsidiaries which hold various licenses in California. Our goal is to obtain a license for the new LLC and transfer all work from the subsidiaries to our new entity and combine all the classifications we will need on to one license.
We are planning to transfer employment of a couple of the subsidiaries’ Qualifiers in order to qualify our license. In addition, we are looking to add several classifications which will require some of our employees to sit for exams. I read somewhere that a company cannot have a Qualifier apply for multiple classifications at the same time when a test is required. What if we have separate Qualifiers for each classification in which a test is required, are we then able to put them all on one application since they individually will not be taking multiple exams? Will that work? Time is of the essence which is why I’m asking.
A: Anytime a test is involved, only one individual can apply at a time. Multiple qualifiers cannot apply on the same application if they need to take exams, regardless of the fact they are separate classifications.
Q: Our company is looking to get licensed in California. As you know from our previous conversations, we had a potential Responsible Managing Employee (RME) in mind, however that deal fell through as he was unwilling to disassociate from another company he is acting as RME for. We have an employee who definitely meets the requirements and is willing to sit for the exam. We were wondering though, is there some sort of residency requirement for the qualified person? It seems that some states require the qualified person to be physically present in the state while construction is ongoing, while other states have no such requirement. The candidate we are considering lives in North Carolina, and he wishes to continue residing there even after becoming the qualified person for our Company in CA. He is even requesting to be able to work from home part time. We just want to make sure this will all be permissible before we pull the trigger.
A: There is no residency requirement, however the qualifying individual is required to be actively engaged in the construction activities being performed in CA. Whether that’s done remotely or on site is up to you, but your qualifier can definitely continue living in NC once he becomes the qualifier for your company. Also keep in mind an RME is required to work at least 32 hours a week or 80% of the company’s operating time. The conditions beyond that are not outlined in the law. The law regarding RME’s does not require the qualifier to be physically on the job site.
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 column at www.cutredtape.com.