By Shauna Krause, President, Capitol Services
Let’s hit the road to share some insight into how the others states relate to California. There are many advantages in reciprocity, shortcuts on waivers, detours on exams, but in the end each contractor needs to stay in the right lane to pass…
Q: I am a licensed HVAC (“C-20”) contractor in California. I have my own Sole Proprietorship license and then I also am the Responsible Managing Officer (RMO) for three other Company licenses, each of which I own 20% of. I wanted to do the same thing in Arizona. What is their rule regarding how many licenses I can Qualify for?
A: Arizona only allows for you to be the Qualifying party for one additional entity and in order to do so, there must be common ownership of at least 25% between the two licenses.
Q: I was reading where two companies can share a Qualifying Individual if the majority of the Officers/Members/Managers are the same between the two companies. We are going to request this option but the individual we are planning to use to Qualify both entities is an employee with no ownership, not an Officer. Do we need to give him an Officer title in order to be approved for this request?
A: An RME (Responsible Managing Employee) can qualify for two firm’s licenses when the majority of the personnel listed on the license and CA SOS records are the same as long the individual can certify that he/she works at least 32 hours a week (or 80% of the companies’ operating time) for both firm’s licenses. Many times companies will opt for the Qualifying party to become an Officer due to the hour requirement for RME’s.
Either way, remember that the RME/RMO is responsible for exercising supervision and control of their employer’s construction operations for both companies.
Q: As you aware, I passed my CA exams earlier this week and as soon as I provide the Qualifier bond I will be added to our Company license. I just noticed that you also handle Nevada. Can I apply for reciprocity and do the same thing on our Nevada license?
A: Nevada requires that you have been actively licensed as the Qualifying Individual for the previous four years in a reciprocal State. We can certainly do the same process in Nevada, but you will be required to document your experience and take and pass both the Law and Business exams.
Q: Can we add the Glazing classification to our NV license? I’m hoping we don’t need to re-file since the application process was pretty grueling last time around.
A: Unfortunately, you cannot add classifications to your license in NV unless they are under the same category, i.e. you currently have a “C-15c” (Insulation) license so you can add any of the other sub-categories of the “C-15” to your license (“C-15a”, “C-15b”, etc). However, since the Glazing license is a “C-8” license, you would be required to apply for a new license. Each separate classification requires a separate license in Nevada.
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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