By Shauna Krause, President, Capitol Services, Inc.
A ‘civil’ answer on discipline! Another contractor seeks out expert assistance to avoid any possible mistakes in applying for his California number. Finally, an interesting question from a Nevada contractor who can’t quite ‘put a finger’ on the answer…
Q: My company’s license was suspended due to a civil judgement. The CSLB informed me that we would be required to comply with the judgement and we would also need to obtain a ‘disciplinary’ bond. Does the Disciplinary Bond take the place of our $15,000 Contractor’s Bond or is it in addition to our Contractor’s bond? How long do we need to keep the extra bond in place?
A: A disciplinary bond is filed in addition to, and does not replace any of the other bonds required for the license. It is my understanding that Disciplinary Bonds are to be in place for two years, however in certain instances the Registrar may require a longer period.
Q: I am applying for a new Contractor’s license (California). One of the questions on the application asks if I have ever had a contractor license or other profession or vocational license or registration denied, suspended, or “revoked” by this state or elsewhere. I have a corporation set up in Nevada that I registered with the Secretary of State several years ago. I received a notice recently that the corporation is revoked with the Secretary of State because I never filed a List of Officers. Should I answer the CSLB’s question on the application “yes” because of my Nevada corporation? Secondly, does the question regarding misdemeanors apply to traffic offenses? As you can tell, I want to try and prevent any possible rejections.
A: The question on the application regarding revocations is referring to contractor licenses or other professional licenses. It does not apply to an entity’s corporate status with the Secretary of State.
The question regarding misdemeanors typically doesn’t apply to traffic offenses but it depends on the severity of the traffic offense. Certainly, offenses such as a DUI should be but minor traffic tickets do not need to be disclosed. In the interest of preventing any possible rejections, always err on the side of caution.
Q: We are going to apply for a Nevada Contractor’s License. We have three owners; one who is President and Secretary, one who is Treasurer, and the third, who happens to be the majority owner, is a Director. The majority owner would prefer not to be listed on the Contractor license because she doesn’t want to go through the fingerprinting like she had to do in California. Are we required to list all owners?
A: The Nevada Contractor’s Board requires that you list your President, Secretary, and Treasurer on the application as personnel, and those are the individuals who will be listed on the license and need to be fingerprinted. As far as Directors, you have the option to list them or not list them on the application. The Nevada application has a section to disclose any individuals or entities who are not listed as personnel but own 25% or more of the company. Individuals listed in this section are not required to get fingerprinted and their name will not show on the license.
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., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns at www.cutredtape.com.