Capitol Connection Q&A for Contractors 4-29-2024

Capitol Connection Q&A for Contractors

By Shauna Krause, President, Capitol Services, Inc.

I start by ‘wrecking’ a contractor’s misconception, but we all learn from the answer. Another inquiry illustrates who can, and who can’t, sign for a corporate contractor and I find a way to give new ‘life’ to an RME whose status has changed…

 

Q: We currently have a “C-21” (Demolition) license and want to add the HAZ and Asbestos certifications to our license. Can we have a different employee take the exams for the HAZ and Asbestos certifications, or does it have to be the current Responsible Managing Officer (RMO)?

A: The individual must be an existing Qualifier holding a classification on the license they are adding it to. The HAZ and ASB certifications are not stand alone certifications.

 

Q: We have an incorporated General contractor’s license. When reviewing our list of Officers we saw that our previous “Board Chair” was on there listed as an Officer. We dissociated her when she left our Board of Directors, however we weren’t sure if we needed to add the current Board Chair to our license or not. I couldn’t find anything that said it was required to have that particular position on the license. Do you have any guidance there?

A: The CSLB’s rule is Corporations are only required to list their President, Secretary, and Treasurer on the contractor’s license. Any additional Officers that you have are optional. If you want them to have signing authority for the license and be able to communicate with the CSLB, you will want to add them. 

 

Q: We obtained our license about seven years ago with a Responsible Managing Employee (RME) who went through the testing and fingerprinting for our Company license. As you know, you helped us with putting one of our Officers on the license as the RMO, replacing our RME, and he was able to waive the testing requirement. The prior RME is still with our company but he is wondering if there is a way for him to keep his “license” active.

A: Your previous RME can obtain a sole owner license, or he can attach it to a corporation or LLC. From the date of his disassociation from your company, he has five years to attach his qualification to a license without having to re-test.

 

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.

 

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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Capitol Connection Q&A for Contractors 4-22-2024

Capitol Connection Q&A for Contractors

By Shauna Krause, President, Capitol Services, Inc.

Almost all rules have, but an expert can share what may be little known exceptions! Why would a licensed contractor choose a 64 hour work week? An elevator contractor learns that what went down can come up again, but there will be a test…

Q: Instead of converting our entity type from an ’S’-Corp to an Limited Liability Company (LLC) in Nevada, we would prefer to hold separate licenses under the LLC. Do you know the limit for the number of licenses for which a Qualified Individual is permitted to qualify in Nevada? I am struggling to find that answer on the Board’s website.

A: A Qualified Individual can qualify more than one license in Nevada if one of the following conditions exists:

  1. The individual owns at least 25% of each company in which he/she qualified for, OR
  2. One licensee owns at least 25% of the other license.

There is nothing in Nevada which specifies a limit to the number of licenses a person can qualify as long as one of the above conditions exists.

 

Q: I am an Responsible Managing Employee (RME) on a license (CA) and would like to know if I can qualify two separate businesses with the same ownership?  I have no stake in either one.  One company has me as the RME/Qualifier and I would like to be the Qualifier for the other as well.  The classifications would be the same.  I receive a paycheck from both companies and work over 32 hours at each business.

A: An RME can only qualify one license unless either a) one entity you are qualifying directly owns at least 20% of the other, OR b) the majority of the Officers/Managers/Members are the same on both licenses. You will be required to provide a statement to the CSLB certifying that you work for over 32 hours a week for each company and will continue to do so while you are acting as RME for both entities.

 

Q: We have an incorporated General contractor’s license. When reviewing our list of Officers we saw that our previous “Board Chair” was on there listed as an Officer. We dissociated her when she left our Board of Directors, however we weren’t sure if we needed to add the current Board Chair to our license or not. I couldn’t find anything that said it was required to have that particular position on the license. Do you have any guidance there?

A: The CSLB’s rule is Corporations are only required to list their President, Secretary, and Treasurer on the contractor’s license. Any additional officers that you have are optional. If you want them to have signing authority for the license and be able to communicate with the CSLB, you will want to add them.

 

Q: I used to have an elevator company that had a “C-11” license. It was suspended eight years ago. I shut the company down and I want to start another company. Can I get another license under a different company name? Would I have to take the exam again?

A: Thank you for contacting Capitol Services. You should be able to obtain a license again, but of course it depends on the reason for the prior suspension. Unfortunately, since it’s been over five years since you were licensed, you would be required to take the exams again.

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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Capitol Connection Q&A for Contractors 4-15-2024

Capitol Connection Q&A for Contractors

By Shauna Krause, President, Capitol Services, Inc.

One contractor discovers while you can be one, you can’t be called one. I also dip into the strange way waterproofing is handled by contractor rules, and an attorney finds that the ‘fourth’ is strong in this one… 

 

Q: I want to add one of my long time employees to our license as an Officer. However, he doesn’t have any ownership in the Company and is not listed on the CA Secretary of State records, nor do I really want him to be. I just need him to be able to communicate with the CSLB about licensing issues. They will only talk to individuals listed on the license. Am I able to add him with just the title “Officer”?

A: The CSLB doesn’t accept “officer” as an official Officer title. The CA Secretary of State (SOS) only requires that a President, Secretary, Treasurer, and sometimes Director be listed on their records. As long as you give him a title, which is not one of those, you do not need to add him to the SOS records. Examples are Vice President, Assistant Secretary, Chief Compliance Officer, etc. 

 

Q: Is there a “waterproofing” license/classification we can add to our license? We have a “C-39” (Roofing) and a “C-17” (Glazing) license. Some of our customers purchase a waterproofing package from us where the waterproofing may go in the shower surround, or concrete, or whatever the case may be. We are looking for something to cover us for all of the waterproofing we do.

A: The short answer is no, there is no waterproofing classification. The long answer is, there are several classifications that can perform waterproofing. Certainly, the “C-39” (Roofing) can when it’s related to the roofing. Waterproofing is covered under the classification you are performing the work in relation to. For example, waterproofing concrete could be covered under “D-06” (Concrete Related Services), or if you are applying a protective sealant, it could be covered with the “D-12” (Synthetic Products) classification. Waterproofing a shower surround would again depend on what you are doing/applying to waterproof it. Feel free to call my office to discuss. 

 

Q: I am an Attorney and I have a situation in relation to a case I’m reviewing. I’m seeing that the same individual is on 3 corporate licenses and one individual, all concurrently Active now. Is this possible, or is this an oversight by the CSLB?  I know you can be an Responsible Managing Officer (RMO) on 3 but can you still have a fourth one as an individual?  

A: Yes. The way B&P Code section 7068.1 is written, as long as the Qualifying Individual meets the guidelines, “a qualifying individual may act as the qualifier for no more than three firms in any one-year period.” Further, it defines “firm” to mean a partnership, a limited partnership, a corporation, or an LLC. Sole Proprietorships do not count in the rule of three.

 

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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Capitol Connection Q&A for Contractors 4-8-2024

Capitol Connection Q&A for Contractors

By Shauna Krause, President, Capitol Services, Inc.

While contractor law is written in ink the words can be subject to interpretation. That is where expert understanding is sharpest in avoiding ‘errors’ or misunderstanding…

 

Q: It appears that, per California Business & Professions Code § 7071.19, professional liability insurance and errors & omissions insurance will also be required at the time of obtaining the General contractor license. Is that your understanding as well? I know when we spoke you had mentioned the need for bonds, liability, and Worker’s Compensation insurance. Are we to ignore the regulation in regards to the E&O insurance?
A: No, you do not ignore B&P Code 7071.19 which is referring to the requirement for liability insurance coverage for Limited Liability Companies (LLC). They use the words “errors” and “omissions” in the statute to describe the reason for needing to maintain liability insurance – “maintain a policy or policies of insurance against liability imposed on or against it by law for damages arising out of claims based upon acts, errors, or omissions arising out of the contracting services it provides”. But the CSLB does require that you obtain or show proof of a separate E&O policy. They require that an LLC maintain at least $1 million in general liability coverage.

 

Q: We need to replace our Qualifying Individual who left the Company recently. The person who makes the most sense to have as our new Qualifier is one of our Officers who is not planning on leaving the company until retirement.

            However, he is concerned about providing his personal information to the CSLB. Can you confirm exactly what personal information he would be required to disclose? Secondly, specific to his ownership shares, is this something that the general public will be able to see online?
A: The CSLB requires the Qualifying party list their full name, residential address, phone number, date of birth, social security number, and percentage of ownership on the application. They ask for a driver’s license number but it’s not required. The CSLB never shares personal information, even if someone was to request a copy of a licensee’s entire file. They always withhold all personal information such as DOB and SSN.
With regards to ownership, on the CSLB’s website the general public will not be able to see the specific ownership amount the Qualifying Individual has in the company, however they will be able to see whether the person owns more than 10%, or less than 10%. This is because if the RMO/RME owns less than 10% of the company, they are required to have a Bond of Qualified Individual on file. If the RMO/RME owns more than 10%, no Qualifier Bond is required. Outside of the website, if the general public wanted to see the specific ownership the Qualifier owns, they would need to make a copy request with the CSLB and pay the fee.

 

            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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April 2024 Anniversaries

APRIL 2024 ANNIVERSARIES & MARCH NEW MEMBERS
45 Years
LEFF DESIGN BUILDhttps://leffdesignbuild.com/Sebastopol
FACILITY DEVELOPMENT COMPANY, LLChttp://www.fdc-corp.com/Santa Rosa
40 Years
CONTRACTORS LICENSE COURSES OF CAhttp://www.contractorslicensecourses.org/Santa Rosa
CARY & ASSOCIATES BUILDERS INC.http://www.carybuilders.com/Sebastopol
30 Years
DYLESKI FAMILY CONSTRUCTIONSebastopol
ARCHITECTURAL METAL, INC.http://www.metalroofcompany.com/Hopland
ROGERS & YOUNG INSURANCE SERVICEShttp://www.rogers-young.com/Windsor
REGE CONSTRUCTION INC.Cloverdale
20 Years
CHERNOH EXCAVATING, INC.Lower Lake
5 Years
CORE ELECTRICAL SERVICES INCSanta Rosa
1 Year
CROMWELL CONSTRUCTION & MANAGEMENT, INChttp://ccmcromwellconstruction.com/Santa Rosa
STEPHEN MICHAEL MURPHEY DBA MM MECHANICAL, INCSanta Rosa
JERRY BEATY’S TREE SURGERYFort Bragg
TOTAL IMAGE PAINT, INChttp://www.totalimagepaintinc.com/Santa Rosa
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Capitol Connection Q&A for Contractors 4-1-2024

Capitol Connection Q&A for Contractors

By Shauna Krause, President, Capitol Services, Inc.

There are ‘degrees’ of value in a contractor claiming credit toward experience. Another contractor discovers good news that takes a turn for the worse, depending on his choices. While CA has license reciprocity with some other states it’s not a completely free ride as there are still ‘hoops’ to jump through…

 

Q: I am applying for a new license and there is a question on the application regarding education. I obtained several degrees outside of the US. The application states that if you answer ‘yes’ to the education question, you are required to attach the transcripts. They are going to be difficult for me obtain. Is this really necessary?
A: Only if you are looking for credit in lieu of work experience, but if you are showing at least four years of work experience, no need to go to the trouble to obtain the transcripts.

 

Q: Can I reactivate my license if it expired in 2021? Thanks for your assistance.
A: Yes! You have five years from the time a license expires to renew it. I looked up your license and your Bond and Worker’s Comp have both (obviously) expired as well so you would need to provide a new Bond and proof of Worker’s Compensation insurance if you have employees. Also, I noticed that you are currently the Responsible Managing Employee (RME) for a corporate license. The CSLB will not allow you to renew your
license on “active” status unless you disassociate from the company license you are Qualifying. An RME can only Qualify one active license at a time.

 

Q: I am finalizing my CA contractor’s license this week, I am scheduled to take the second exam tomorrow and the CSLB informed me the license would be issued shortly after that. Once I am officially licensed, can I immediately obtain my Arizona and Nevada licenses and not have to sit for the Trade exams?
A: Nevada requires that you are the Qualifying Individual for four years immediately preceding the submittal of your application in one of the reciprocal states in order to qualifyfor a Waiver of the Trade exam. But you will be able to immediately apply for an AZ license and be granted a Waiver of the equivalent trade exam. You would still need to complete their online Statutes and Rules training course.

Q: I am going to arbitration with one of my customers. This is the first time I’ve had to go through this process and I’m wondering if this is going to affect my license. Will it be public information or “red flagged” when anyone looks up my license?
A: Arbitrations are not listed on your contractor’s license when the public looks it up, unless you do not comply with the terms of the arbitration.

 

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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Workers must be paid for security stops, California high court rules

Employers in California who guard their premises with security gates must pay their employees for the time they spend driving to the gates and being searched, the state Supreme Court ruled Monday. The court also required pay for time that employees are required to stay on company property during lunch breaks.

The decision came four years after the court ruled unanimously that employers like Apple who search their workers’ bags when they go home must pay them for the time spent on the search. Monday’s ruling went further and required compensation for time spent driving to a security checkout, searches of the employee and vehicle and meal breaks that must be spent at the office.

“An employee who is subject to the control of an employer does not have to be working during that time to be compensated,” Justice Goodwin Liu wrote in the 7-0 ruling. While state law does not entitle employees to be paid for time commuting to and from work, Liu said, driving from work to a security gate, and being searched before leaving, is not part of commuting.

The ruling particularly affects workers in construction, mining and other industries that search people entering and leaving the premises to make sure they are employees and are not taking equipment with them. The company in this case, CSI Electrical Contractors, employs construction workers at a solar power facility on private land in Monterey and San Luis Obispo counties.

At least 1,000 workers at CSI go through the daily security checks, and similar suits are pending against other companies in California, said Peter Kindem, lawyer for an employee who challenged the company’s denial of compensation. With cars lined up at the security gate, the employee said it took 10 to 15 minutes to travel from the gate to the parking lot, and anywhere from five to 30 minutes to drive back to the gate and be searched.

“There are many employer-mandated security processes that are unpaid for,” Kindem said after the ruling. “We’re attempting to protect workers’ rights to be paid for all hours worked.”

A lawyer for the company could not be reached for comment. Attorney George Howard, who has represented employers in other cases for more than 40 years, said the ruling, while unfavorable for employers, offered some guidance on reducing their liability.

Companies “should review the specific workplace to reduce so far as possible the time required for employees to exit the workplace and the amount of ‘control’ imposed on the exiting employees,” Howard told the Chronicle. And to avoid another half hour of pay, he said, “do not control employees’ activities during their off-duty meal periods.”

CSI’s contract with its workers’ labor union included an unpaid half-hour meal break each day. But the court said California’s minimum wage law applies to any time in which an employee is prohibited from leaving the workplace.

“Even at remote worksites, there is a meaningful difference between being required to eat at one’s workstation or in a designated meal area and being allowed to return to one’s personal vehicle or take a walk,” Liu said.

Although the court cited the state’s minimum wage law, which currently requires pay of $16 an hour, Kindem said he would argue for compensation at the workers’ regular pay scale for lunch periods when they were prohibited from leaving.

The case is Huerta v. CSI, No. S275431.

Reach Bob Egelko: begelko@sfchronicle.com; Twitter: @BobEgelko

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Capitol Connection Q&A for Contractors 3-25-2024

Capitol Connection Q&A for Contractors

By Shauna Krause, President, Capitol Services, Inc.

Knowledge is how we cut red tape, see for yourself at cutredtape.com where previous contractor Q/A can be found. Keywords offer insight by topic. First, let’s ‘double down’ on a qualifier inquiry, while we also discover some contractor rules are unbending, often depending on the state you’re licensed in…  

 

Q: I’ve been reading through your Q&A articles and see that two related companies can share a Qualifier if the majority of the personnel on the licenses match between the two entities. Under the same provision, where the majority of the personnel are the same on two licenses, can we add the Qualifier of one of the licensees to the other licensee, and vice versa? So in the end, both licenses will have two Qualifiers on them?

A: No, there is no provision which allows you to have two qualifiers on one license both holding the same classification. Only one qualifier per classification is permitted on a license, and this is true across the board.

 

Q: I have had my license for some time and over the years I have had and taken the asbestos certification test and passed. I have an ASB certification attached to this license. In addition, I have had a DOSH registration for well over 5 years in the past. Since I have taken and passed the ASB and have the ASB certification on my current license, is there a way to obtain a Waiver for the new “C-22” certification? 

A: Thank you for contacting me. Unfortunately, there is no way to waive the C22 exam, that is the hardest classification to obtain and the CSLB doesn’t bend on offering Waivers for the Trade exam based on passing the ASB certification exam. To qualify for the “C-22” classification, you are required to provide experience, proof of OSHA refresher courses, employee rosters from DOSH showing your name listed there, and of course proof of registration with DOSH.

 

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.

 

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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California Employers Required to Adopt New Comprehensive Workplace Violence Prevention Plans

According to the Occupational Safety and Health Administration (OSHA), workplace violence is the second leading cause of fatal occupational injuries in the United States, affecting nearly 2 million American workers annually. SB 553 addresses workplace violence by requiring employers to implement basic protections to protect employees while at work.

On September 20, 2023, Governor Gavin Newsom signed Senate Bill No. 553 (“SB 553”) into law, which requires California employers to take steps to prevent and respond to workplace violence. Notably, effective July 1, 2024, SB 553 requires covered employers to create a comprehensive workplace violence prevention plan. Employers must also review and update their workplace violence prevention plans on an annual basis and provide an evaluation of the incidents that occurred and maintain records of workplace violence hazards previously identified.

In addition, employers must maintain a log of all incidents of workplace violence even if the incident did not result in injury. This log must include information on every workplace violence incident, based on employee statements, witness statements, and investigation findings.

Employers must provide also effective training and ensure that training materials are easy to understand and match the workers’ education, reading skills, and language. • Employers must provide employees with an initial training and annually thereafter.

 

Violence Prevention Plan Resources

Register for the Active Violence Emergency Response Training at North Coast Builders Exchange. Classes offered in April, May, and June. Register here!

Model Written Workplace Violence Prevention Plan: http://dir.ca.gov/dosh/dosh_publications/Model-WPV-Plan-General-Industry.docx

 

Workplace Violence Prevention in General Industry – Information for Employers: http://dir.ca.gov/dosh/dosh_publications/WPV-General-Industry-for-employers-fs.pdf

 

Workplace Violence Prevention in General Industry – Information for Employees: http://dir.ca.gov/dosh/dosh_publications/WPV-General-Industry-for-workers-fs.pdf

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Capitol Connection Q&A for Contractors 3-18-2024

Capitol Connection Q&A for Contractors

By Shauna Krause, President, Capitol Services, Inc.

The only way to be individually active, and qualify a license as well, is to have ‘skin’ in the game. I let the ‘air’ out of a General’s plan, while helping an RMO clear up his ‘calendar’ problem…

Q: We currently hold “”B and a “C-51” license and are looking to add “C-39” (roofing) work to our scope.  I am considering an individual that will work full time and has his “C-39”. If he is the RME can he continue his weekend work under his license as well?  Or would he need to be an Responsible Managing Officer (RMO)?

A: The only way he would be able to keep his personal license active while acting as your “C-39″ Qualifier is if he’s an RMO and owns at least 20% of your company. If he doesn’t own at least 20%, he would be required to inactivate his personal license.

 

Q: Hi Shauna, I found your company through google.  If we hold a General “B”license but do HVAC work as incidental work over the last 20 years. Is there a way to add the “C-20”(HVAC) license to our company while having the exam waived?

A: Thank you for contacting me. No, the CSLB does not consider the “C-20” to be a closely related and significant component to the General “B” license. Therefore, if you wanted to add it to your license, the person you decide to use as your Qualifier would be required to show their experience and sit for the exam. 

 

Q: When replacing our current RMO with another RMO, how long does the new RMO’s name need to be listed as an Officer on the license with the CSLB?  Does the replacement RMO need to have worked at the corporation in a supervisory capacity for 5 of the last 7 years?

A: No, not necessarily. If the replacement RMO is wanting to be granted a waiver of the exams, he/she would either need to be listed as an Officer on the license for 5 out of the last 7 years, OR worked for the company in a Supervisory capacity for 5 out of the last 7 years. If the person is not concerned with a Waiver, then they just need to show the experience in the Trade and there is no particular time frame in which the individual has to have been listed as an Officer or worked for the company in a supervisory capacity.

 

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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