By Shauna Krause, President, Capitol Services, Inc.
The rules in contracting can be tough, but knowing the exceptions to the rule, golden!
With a focus on CA, NV and AZ I can, and do, often work with contractors in all 50 states. An out of state contractor finds that ‘time’ is of the essence…
Q: Are you familiar with the fact that Salespeople have to be listed on the Contractor License? Does it have to do with all industries, including HVAC, and are there any exclusions?
A: Yes, I am. This is directly from the CSLB’s website:“You must register with CSLB if you solicit, sell, negotiate or execute home improvement contracts for a licensed contractor (regardless of the dollar amount of those contracts), with limited exceptions.” Exceptions are as follows: “Based upon BPC section 7152(c), the following are the only exceptions where a HIS registration is not required:
- An Officer of record of a licensed corporation, or a Manager, Member, or Officer of record of a licensed Limited Liability Company (LLC)
- A General Partner listed on the license record of a partnership
- A Qualifying person, as defined in BPC section 7025
- A salesperson whose sales are all made after negotiations between the parties if the negotiations are initiated by the prospective buyer at or with a general merchandise retail establishment that operates from a fixed location where goods or services are offered for sale
- A person who contacts the prospective buyer for the exclusive purpose of scheduling appointments for a registered home improvement salesperson.
- A bona fide service repairperson who is employed by a licensed contractor and whose repair or service call is limited to the service, repair, or emergency repair initially requested by the buyer of the service”
Q: Our company is licensed in Arizona and one of our large customers would like us to come in to CA to do a large project for them which needs to start the beginning of July. Therefore, we need to obtain our CA contractor’s license. In doing some research and asking around, it doesn’t seem feasible to get a CA license in under a month, however we really don’t want to turn down this job! We do have a Sister Company that has a current CA license. Are we able to work under their license until our license comes through? Is there a pending application we will receive which may allow us to do work temporarily or anything?
A: No, you cannot contract or do work under a different entity’s license in CA. While you will receive a pending application number, it does not allow for you to do any contracting work. You absolutely have to wait for the license to be issued. There is an expedite request process we can discuss. It’s not an extra fee and not guaranteed, but you can call my office to discuss your situation further.
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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