By Shauna Krause, President, Capitol Services, Inc.
Can a licensed contractor be ‘on-the-job’ with an Inactive status? Yes, but it has more to do with how ‘qualified’ you might be, in CA or other states…
Q: My company has asked me to get a contractor’s license and they suggested that I place it on Inactive status. I’m trying to figure out what the point of getting an Inactive license is. Doesn’t that mean I cannot use it and they cannot either?
A: Usually when a company requests that an individual get their own license, it’s for the purpose of a “back-up” license for the company. It’s basically a way to get you through testing and fingerprinting and such so that if the Qualifier on the company leaves unexpectedly, they have a back-up person to jump on the company license right away. Once a Qualifier leaves a company, the license has 90 days to replace him/her so having a back-up ensures they don’t have any lapse in licensure.
Q: I have a Sole Owner license that I have kept Inactive for the last several years. I want to advertise to be an RMO (Responsible Managing Officer) for someone else’s company. Do I need activate my license first? What is the fee to re-activate?
A: No, it is not necessary to reactivate your license prior to applying to act as the RMO for another license, and yes, there is a fee to reactivate a license.
Q: We need to obtain a new license for a new entity we are forming in California. We will be using one of our employees to act as the RME (Responsible Managing Employee). I know there are rules about an RME only Qualifying one license at a time. Does this apply from State to State as well? In other words, can we use the same person to Qualify our licenses for Arizona and Nevada?
A: Yes, you can use the same Qualifying Individual for Arizona and Nevada. While you are required to list your licenses in other States on the applications, they do not have a rule as to how many licenses you can Qualify outside of Nevada and Arizona.
Q: Our Qualifying Individual is going to be leaving the company soon. I understand that the license belongs to the company, not the Qualifier. Does that mean we automatically retain the license when the Responsible Managing Employee (RME) leaves? If we do need to put someone in his place, does that person have to take the exam, or does the fact that the company has the license waive that requirement?
A: You are correct, the license does belong to the company, so yes, the license does stay with the company if your RME leaves. However, you have 90 days to replace the Qualifier on the license. If the individual replacing your current Qualifier has never been licensed before, then yes, he/she would be required to take the exams. In certain circumstances, a Waiver of the exams may be an option. Please contact me if you’d like further information on this option.
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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 columns at www.cutredtape.com.