By Shauna Krause, President, Capitol Services
What if? Hasn’t every contractor ask themselves this? As an expert in licensing law for contractors I know you do! Let’s also update you on the latest interpretation of a change in public works projects…
Q: If we dissolved our CA corporation and let the license expire, and we have registered it again with the CA Secretary of State (SOS), are we able to renew the contractor’s license?
A: No, once you dissolve a company and register it again, a new registration number is issued. When you have a new SOS registration number, a new contractor’s license is required. If it’s been less than five years since the original license expired, your RME/RMO will not have to re-test or anything. Let me know if you would like our assistance with the new license!
The Contractors State License Board (CSLB) is providing additional guidance on following licensing regulations for public works projects as a result of Senate Bill 1455 (2024). As the Boards says, SB 1455 amendedCalifornia Business and Professions Code (BPC) 7059 to clarify that awarding authorities must ensure contractors bidding on public works projects hold the license classification that is appropriate for the work being performed according to CSLB regulations. The information in BPC 7059 (b)(1) shows contractors what was changed in the law.
In public works contracts, as defined in Section 1101 of the Public Contract Code, the awarding authority shall determine the license classification necessary to bid and perform the project, in accordance with the classifications prescribed by this article and as set forth in Division 8 of Title 16 of the California Code of Regulations.
Here’s what changed. Aren’t you glad I read all this! SB 1455 clarifies that awarding authorities must determine the required license classification using CSLB’s classification descriptions in Division 8 of Title 16 of the California Code of Regulations. Previously, the law required proper licensure but did not expressly connect to CSLB’s classification descriptions.
The classification descriptions noted in Division 8 of Title 16 of the California Code of Regulations are included in CSLB’s Description of Classifications, which awarding agencies should review in determining the most appropriate classification or classifications.
In addition, CSLB’s Fast Facts: What Jobs “B” General Building Can/Cannot Perform provides further clarification to help awarding authorities determine whether a “B” is appropriate for a project. While it is CSLB’s largest classification, the “B” is not always suitable depending on the project. “B” General Building may not be appropriate if the work does not involve the construction of a structure involving framing or carpentry, does not require multiple building trades, and is not incidental to a project.
According to the latest from the Board, this means that awarding authorities must review the project scope and select the appropriate classification that best aligns with the work described using CSLB’s Description of Classifications.
Contractors are responsible for ensuring they hold the appropriate license classification at the time of bid and use properly licensed subcontractors for work outside their classification. Failure to do so may affect bid eligibility and could result in enforcement action under existing contractor license laws.
As always for more information or questions regarding classification determinations, contact CSLB’s Classification Deputy at Classifications@cslb.ca.gov. I urge those interested in public works to read this more than once. I know I have!
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