Capitol Connection Q&A for Contractors - Week of 4/22/2024

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By Shauna Krause, President, Capitol Services, Inc.

I look into fifty reasons why a contractor needs a license where they want to work. While common contractor licensing nationwide might make sense, the reality is very different. Keeping the family business in the family requires foresight that the unexpected must be planned for…

Q: I am a licensed contractor in the State of Arizona. One of my customers would like me to do a job for them in Southern California. My Company is a Limited Liability Company (LLC) and I understand there are many requirements for LLC’s to obtain a contractor’s license in California. My customer mentioned something about being able to get permission from the CA licensing board to do one job in CA without obtaining a CA license, being that I’m licensed in Arizona and there is a reciprocal agreement between the two States. Is that possible and if so, how do I go about getting permission?

A: That is not a possibility. And contracting work you do in CA which is over $500 requires that you obtain a CA contractor’s license. There is no temporary license or waiver of the licensing requirement based on holding a license in a reciprocal State. Every state has it’s own, individual rules and licensing requirements. 

Q: Do you know by chance if CA has reciprocity with FL in terms of General Contractor (GC) licenses? Specifically, the employee's GC license we're using in FL, could we use his license in CA as well? 

A: No, CA does not have reciprocity with FL. Even with the States that CA has reciprocity with, you can’t just use the out-of-State license in CA. You would still need to apply for a CA license and complete all the requirements, including taking the law exam.

Q: We have a corporate license in which my Dad is the RMO and the only Officer listed on the license. He is currently not doing well and we are making plans to ensure the license is in order, if and when, something were to happen to him. Is there a way that I can replace him as the RMO, but have him still be shown as an Officer of the corporation? The idea being that he is still a part of the business and will continue to be for the time being, but we want to set it up so that the license is not left with no one associated with it and more importantly, that no projects are in jeopardy if something were to happen to him. I have worked for my Dad for over 20 years now if that is of any importance.

A: Sorry to hear about your Dad not doing well. Yes, you can replace your Dad as the RMO on the license and keep him on the license as an Officer. There is a box on the CSLB’s replacement application which asks just that question and you just mark it if the current Qualifier is to remain on the license as an officer. 

Because you’ve worked for the company for over five years, you can request a Waiver of the exams when you complete the replacement process. Let me know if you would like our assistance with the process.

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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

 

 

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