By Shauna Krause, President, Capitol Services, Inc.
A hurdle falls for contractors! Things can change in CA licensing law so keeping your eye on the rules and interpretations is important for contractors, especially those who want to bid and work here. General Building Contractors from other states please take note!
At their March 2025 board meeting, the Contractors State License Board approved the National Association of State Contractors Licensing Agencies (NASCLA) Commercial General Building Contractor license examination for CSLB reciprocity purposes.
This means licensed contractors, regardless of state of licensure, can apply for the CSLB General Building Contractor license if they have passed the NASCLA Commercial General Building Contractor examination and not have to take the CA “B” trade exam.
Prior to this action, CSLB only waived certain trade examinations for contractors if they were licensed in specific classifications from Arizona, Nevada, and Louisiana.
The Board’s action is a significant step toward removing barriers to licensure, enhancing professional mobility, and promoting consistent standards of practice nationwide.
Of course, like all reciprocity applicants, out-of-state licensees must be licensed in good standing in their home state for the last five years, the other state must accept CSLB license qualifications for licensure in that state, and CSLB staff must determine on a case-by-case basis that the licensing standards in the other state are comparable to CSLB’s.
Reciprocity applicants must also take CSLB’s law and business examination and meet all other requirements for California licensure (such as obtaining a license bond, fingerprinting, and securing Workers’ Compensation insurance if they employ any workers).
Q: We acquired a licensed business and have applied for a new license using the Qualifying Individual who currently qualifies the business we acquired. The CSLB has requested that he disassociate from the current license in order for the new entity to officially be licensed. However, the currently licensed company still has projects going on. How do companies typically handle this for such acquisitions?
A: You can delay the submittal of the disassociation for a bit. Once the CSLB requests that from you, you aren’t required to provide it right away, they will keep the application for the new company pending/active for a period of time while you are still working under the current license. However, that obviously delays the issuance of the new license! Be aware that once he disassociates from the current license, that license will have 90 days to continue operating.
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While knowledge is power, knowing where to go for the answers is half he 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