One contractor has ‘elected’ to replace the President! That isn’t always required, and while you can’t share a license between individuals, in most cases the same is also true for businesses. I wrap up with a ‘wait’ and see answer…

Q: Our President has left the company. Do we need to replace him within 90 days? We don’t have another President elected just yet.

A: No, it is not necessary to “replace” your President. You should however notify the CSLB of your President’s departure by filing a disassociation. Once you have elected a new President, you should then notify the CSLB within 90 days.

Q: We are creating a wholly owned subsidiary to serve as the Owner/Builder for one of our California projects. This is a common practice in the energy business. Do you know if our license for the parent company can be utilized by the subsidiary?

A: It cannot. Two separate entities cannot use the same license.

Q: I have a “C-10” Responsible Managing Officer (RMO) on my license currently. How long do I need to keep him associated with the business so I can get the license in my name without taking the test?

A:After five years, you can apply to replace him on the license and request to waive the exams.

Q: Our qualifier is retiring soon. How quickly can we sub someone in assuming he/she has all the experience qualifications but still needs to take a test and file paperwork? And how does that timing compare with substituting in an already licensed individual?

A: For the individual who needs to sit for the exams, the timing depends on when they take the test. It will take about four weeks, possibly sooner, for the CSLB to review the application, and from there, it is up to the applicant to schedule the exams. They are given 18 months, so you can see the timing greatly depends on whether they get in for the test right away or take months. For an already licensed individual, the replacement process usually takes about four weeks or less right now.

Q: We have a current license under a Partnership. We received a complaint which we are in the process of closing out with the CSLB, however the CSLB mentioned something about our business name as shown on the CA Secretary of State’s records needs to match what is on our license. We are looking for some help updating the business name on the Secretary of State and making sure our license is in regulatory compliance.

A: We would be happy to help you out with that.

Your Partnership is actually not registered with the Secretary of State. I see what the problem is here. Based on the contract you provided me for review, you are operating as a corporation but your license is a Partnership license. Because Partnership licenses are not transferrable, you are required to apply for a new license in the corporation business name as reflected with the Secretary of State. We will assist you with the process of getting everything updated so that you are in compliance!

Reminder regarding expanded Worker’s Comp insurance requirement

We remind contractors of the increase in bond amounts to take effect on January 1, 2023. Also starting January 1, 2023, concrete (“C-8”), HVAC (“C-20”), asbestos abatement (“C-22”), and tree service (“D-49”) contractors will be required to have worker’s compensation insurance, regardless of whether they have employees.

According to the CSLB, “research confirms that many of the approximate 50 to 60 percent of licensed contractors who currently claim an exemption to worker’s compensation insurance do use employees. This problem creates an unfair competitive disadvantage for law-abiding contractors who are subject to higher business costs and puts employees and the public at risk for workplace injuries. CSLB hopes to protect the public and level the playing field for law-abiding contractors by requiring more contractors to carry worker’s compensation insurance starting in 2023 and eventually all contractors by 2026.” 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 [email protected]

By Shauna Krause, President, Capitol Services, Inc- www.cutredtape.com