Capitol Connection Q&A for Contractors

By Shauna Krause, President, Capitol Services, Inc.

 

2024 sprouted a new limb on tree service licensing in CA, and the new class will be tested! The old class is dismissed. I also help a HVAC contractor plumb some new opportunity and ‘reconstruct’ the rules on remediation work…

 

Just a reminder that the new “C-49” (Tree and Palm) classification took effect on January 1, 2024 and the CSLB is now accepting applications for the new “C-49”. The CSLB created this classification to ensure tree service contractors are tested on health and safety protocols in the tree service industry. 

CSLB will no longer accept applications for the “C-61”/“D-49 “ (Tree Service) limited specialty classification. Applications received for the “C-61”/“D-49”, Tree Service classification, will be processed as a “C-49”or Tree and Palm application. Contractors who wish to specialize in tree service work who do not hold a “C-61”/“D-49” (Tree Service) classification will need to apply for the new “C-49” (Tree and Palm) Contractor classification.

 Bad news is, all applicants for the “C-49” Tree and Palm Contractor classification will need to sit for a trade examination regardless of other license classifications they hold. The good news is the CSLB will prioritize the application experience review for “C-49” applicants that have held an active “C-61”/“D-49” (Tree Service) license for at least four years. 

Contractors who hold a “C-61”/“D-49” (Tree Service) classification issued before January 1, 2024, may retain and work under that classification. However, “C-61”/“D-49” are encouraged to apply for the new Tree and Palm classification, which will become the industry standard. While the “C-49” and older “C-61”/“D-49” classification descriptions differ slightly (the “C-49” description includes palms) CSLB regards the classification of work as the same.

 

Q: I am a “C-20” contractor and am looking to add the “C-36”(Plumbing) classification. As part of my HVAC work, I frequently install boilers, do pipe insulation, etc. I understand I will be required to take the “C-36” trade exam, but do I need to re-take the law portion of the exam?
A: No, you will not be required to re-take the law exam.

 

Q: Does a company need a license from the Board to do water remediation work for a personal property owner?  We remove tile flooring, subfloor, baseboards, carpets and drywall.  I have been told that a contractor’s license is not required, but then I’ve also been asked for our contractor’s license number on some jobs. Please assist with your expert opinion.

A: If the project is over $500 in labor and materials, then yes, a contractor’s license is required. The most appropriate license classification for the removal of damaged building materials and drying out the structure, but with no reconstruction, is the “C-61”/“D-64” Non-Specialized classification. The CSLB will likely give the classification a title of “water remediation”, or something similar.

 

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

If it’s fixed it can also be ‘brokered’. How can you cancel a license and still qualify another? You can also ‘qualify’ twice in the right circumstances and another contractor wants to keep the family in the business, maybe…

 

Q: I have a question.  I am a Business Broker and one my client’s has a CSLB license (“License A”) which is no longer needed as he just sold his business.  However, he is now Responsible Managing Officer (RMO) Qualifier for Seller (“License B”).  May he cancel License A without affecting his ability to act as RMO for Seller (License B)?

A: Yes, he should be able to cancel License A without it affecting License B.

 

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: I have a Sole Proprietorship license. Looking forward to someday retiring, can one of my sons automatically take over the business in the future or do they need to be working for me in order to take over? In the event they do not want to continue the business, will I be able to sell my license?

A: An immediate family member can request to have your license number transferred to them, however if they are looking to take advantage of the family waiver (of the exams), they would have had to of worked for you for at least five years. If they are not concerned about the waiver option, they can still request your license number and take the exams, but they still need to have at least four years of experience in the trade. If you are considering selling your business to someone other than a family member, you would likely want to consider obtaining the license as a corporation or LLC. Holding the license as a corporation or LLC allows you to sell the business to family members OR the general public. You should probably contact a business broker or an attorney for more information on selling a business and the entity type best suited to your need. 

 

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

No matter our age or experience, taking an exam still sends ‘chills’ up your back! For
this NV contractor I find a ‘cool’ way to meet their goal. I share some insight on
reciprocity from state to state, and help another contractor understand the license
options on an unexpected departure…

Q: Our company has a “C-21” (Air Conditioning and Refrigeration) license in Nevada.
Our qualifying party left the company recently and we are on the hunt within our
organization to find someone to take over as the Qualifier. One of our employees
previously held a “C-21B” contractor’s license for his previous company. Will that work
for us to designate him and he would not be required to take exams?
A: The full “C-21”has a different trade exam than the “C-21B” alone, therefore if you
wanted him to qualify the full “C-21”, he would be required to obtain references certifying
his experience in the other sub-categories of the “C-21” (refrigeration, sheet, boilers, and
industrial piping), and pass the “C-21” exam. If your company doesn’t need the other
sub-categories and only does air conditioning work, you can use him as the Qualifier
and when applying to add him, request that the NSCB “downgrade” your license from
a “C-21” to a “C-21B”.

Q: I have what I think is probably a silly question: do contractor’s licenses translate
from State to State? For example, if we have an employee who has an AZ license, can
we use that license in CA?
A: I am only familiar with CA, NV, and AZ. There is a reciprocal agreement between the
three that can make it easier to obtain a license, however contractor’s licenses are not
automatically recognized from State to State. Each State has their own requirements, so
you are required to go through the licensing process in each State.

Q: Our current Qualifier is wanting to be removed from our license and one of our
Officers is planning to take over as Responsible Managing Officer (RMO) on the license.
However, we had originally applied for the license a year and a half ago with that
Officer as the Qualifier and the CSLB rejected her experience. Since we were in a hurry
to obtain the license, rather than have her gather the requested items, we hired our
current Qualifier, who was already licensed. With the understanding now that it may
take several months for our Officer to go through the approval process, we are
considering hiring another licensed contractor in the meantime. How should we
proceed?
A: That’s up to you. Once your current Qualifier disassociates, you have an automatic
90 days to replace him. If you submit the application for your Officer to become the
Qualifier and the approval and testing process is looking like it’s going to take more
than 90 days, you can request a one-time 90-day extension. Six months is usually ample
time to complete the replacement process. However, if you want to play it completely
safe, you can hire another licensed contractor to act as the Qualifier in the interim. For
this option, you would need to complete the process of putting the already licensed
Qualifier on your license, and then once complete, submit the application for your
Officer to take over.

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

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