Capitol Connection Q&A for Contractors

By Shauna Krause, President, Capitol Services, Inc.

The prevailing wind is hot and not for an HVAC contractor hoping to grow new work in NV. Reciprocal isn’t the same as equivalent, yet there is an expert course to level the difference. The solution is a little more straight-forward to another contractor and, no pun intended, a final answer on bankruptcy…

Q: I’ve had a “C-20” (HVAC) license in California and one of my clients who has locations in Nevada wants me to do some work for them over there. He was telling me the licenses are reciprocal so I shouldn’t have to take any exams. I thought I would check with you first to make sure that’s accurate before I dive in. Can you tell me if getting licensed over there is as easy as he makes it sound?

A:  There is a limited reciprocal agreement between CA and NV. The classification system in Nevada is not equivalent to California’s and therefore the licenses are not automatically recognized as reciprocal. California’s “C-20” license for example is equivalent to Nevada’s “C-21B” license, which is a sub-category of their full “C-21” license. There is no reciprocity for the sub-category classifications. In order to qualify for a waiver of the “C-21” Trade exam in Nevada, you would have had to have passed both the CA “C-20” and the “C-4” (Boilers) exams, and held those licenses actively for the previous four years. So to answer your question, no, obtaining a license in Nevada is not as easy as you were told. We can help with the process though so give me a call if you decide to move forward!

Q: Can I have two Sole Proprietorship licenses, each with different business names? I have multiple classifications and I want to start promoting and advertising for specific trades and have the business name line up with that particular trade.

A: Yes you can! You are on the right track as most of the time I get licensees wanting to operate with multiple business names under the same license number, which is not permitted. As long as you do as you described, and obtain separate licenses with the separate business names, you are good to go!

Q: I had a contractor’s license for my corporation which expired a couple of years ago. I filed for personal bankruptcy last year. I would like to get my license back, but have it just as a personal/Sole Owner license. Will the bankruptcy affect my ability to get licensed again?

A: A bankruptcy, in and of itself, does not prevent you from being able to get licensed. There is a question on the new license application asking whether you have failed to resolve any outstanding final liabilities, which includes taxes, penalties, interest, and any fees assessed by the CSLB, the DIR, EDD, FTB, and BOE. If you have to answer ‘yes’ to this question, the CSLB requires that you provide an explanation and indicate a payment plan or whatever the case may be, but as long as you can answer ‘no’, you should be fine with moving forward.

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

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

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

We are thrilled to announce our 2024 North Coast Builders Exchange Teacher Grants awards. The NCBE Teacher Grant Program is aimed at supporting shop class teachers in Sonoma, Mendocino, Lake, and Napa counties. This initiative, made possible through a generous lead matching gift from Redwood Credit Union, has raised a total of $23,500 to enhance educational experiences for students.

The heart of this program lies in recognizing the invaluable contribution of shop class teachers who play a pivotal role in shaping the skills and future of our students. Thanks to the collaboration with Redwood Credit Union, North Coast Builders Exchange has been able to provide grants to 14 deserving teachers, empowering them to create enriching learning environments.

The grants, totaling $23,500, will not only benefit the teachers but will directly impact the students in these counties, fostering a hands-on and practical approach to learning. The funds will be utilized to enhance shop class resources, provide necessary materials, and facilitate innovative projects that inspire and educate.

In a strategic move to further amplify the impact of these grants, North Coast Builders Exchange has established credit accounts at reputable suppliers. Mead Clark Lumber, Friedmans Home Improvement, Healdsburg Lumber, Central Valley Building Supply, Kelseyville Lumber, Mount Storm Forest Products, and Rossi’s Building Supply are among the selected partners, ensuring that the funds are efficiently utilized to procure high-quality materials.

This initiative reflects North Coast Builders Exchange’s commitment to promoting excellence in education, fostering skill development, and strengthening the connection between the industry and the community. By investing in our teachers, we invest in the future of our students and the growth of our communities. The following is a list of 2024 Teacher Grant Recipients:

• Michael Zeni, Kelseyville High School (Lake County)
• Kevin McCammon, Point Arena High School (Mendocino County)
• Taimi Barty, Mendocino High School (Mendocino County)
• Erik Perry, Calistoga Junior Senior High School (Napa County)
• Clay Pafford, Analy High School (Sonoma County)
• Cole Smith, Rancho Cotate High School (Sonoma County)
• James Arseneau, Rancho Cotate High School (Sonoma County)
• Jason Castro, Roseland Collegiate Prep (Sonoma County)
• John Williams, Piner High School (Sonoma County)
• Kyle Desideri, Herbert Slater Middle School (Sonoma County)
• Matt O’Donnell, Santa Rosa High School (Sonoma County)
• Robert Hanni, Windsor High School (Sonoma County)
• Todd Sheehy, Healdsburg High School (Sonoma County)
• Zeke Gifford, Montgomery High School (Sonoma County)

We extend our heartfelt gratitude to Redwood Credit Union for their lead matching gift, which has been instrumental in making these grants possible and to all of our amazing members who donated to our Teacher Grants Program. Together, we are shaping a brighter future through education and empowerment.

Stay tuned for updates on the impactful projects and inspiring stories that will emerge from the classrooms of the dedicated shop class teachers who are now equipped with the resources to make a lasting difference in the lives of their students.

Capitol Connection Q&A for Contractors

By Shauna Krause, President, Capitol Services, Inc.

Can what’s old really be ‘new’ again?  I give a contractor a very positive spin and sort a competitive question about multiple names before charging into the answer on battery storage systems licensing…

Q: If I was a Responsible Managing Employee (RME) in 2016 but am no longer associated with a license, can I initiate a license under a new company with my old test results?

A: If you have not been associated with a license for over five years, you will be required to re-test to become the Qualifier on a license again.

Q: I always get helpful information from your posts. I currently have a Sole Proprietorship “B” (General Building) license. Would I be allowed to RMO an additional two licenses as long as I have 20% ownership in each corporation? It is very important to me that I be able to maintain my own license for projects on the side.

A: Yes! Actually, as long as you have 20% ownership in each company, you can actually qualify up to three licenses aside from your personal license.

Q: We are discussing internally whether there is any benefit to operating our company under two business names, however we are unsure if we are able to do this as a contractor licensed entity. For example, I am aware that in CA licensed contractors are not permitted to conduct business under more than one name for each license (Cal.Bus. & Prof.Code § 7059.1), however I know there are other companies, including our competitor, who operate with two different names. Do you have any insight on if and how licenses entities can operate with multiple business names in CA, AZ and NV? Take CA for example, does the section referenced above simply prohibit a company from operating under two names entirely, or does it mean that we would need to obtain separate licenses for each name?

A: Companies operating with more than one business name either have multiple businesses set up with separate contractor’s license numbers, OR they are operating under different dba names under the same entity, with each dba needing it’s own contractor’s license.

Q: What type of license is required for battery energy storage systems? I’m an out of State contractor and I’m getting answers that are all over the map.

A: That’s because the answer is somewhat all over the map. A licensed contractor with an “A”, “B”, “C-10”, or “C-46”  classification can perform work involving battery energy storage systems.

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.