Q: How long would it take and what is the process to change the RMO on our contractor's license if the new RMO already has a contractor's license and has been fingerprinted?

A: You'll need to file an application for replacing the Qualifying Individual. The likely processing time at present, since the person has already been fingerprinted, is four weeks. The Board's review backlog changes on a regular basis. It will almost certainly run another two weeks, or more, if fingerprints have not previously cleared the review process.

Did you know that you might get a license in one state, even if you've only been licensed for 24 hours in another?

Q: Since 2000, we have had licenses in Utah, California, Arizona, and Nevada. Our qualifying agent for Arizona left. I am inquiring about this statement you made:

"If you're an out-of-state contractor who has been licensed in California, Utah, Arizona, or Nevada for five years, you may be eligible to secure a waiver of the trade exam." Please let me know what this means for our company?

A: The states of Utah, California, Arizona, and Nevada have a reciprocal agreement that allows for a waiver of the trade exam in one state if the qualifying individual has been licensed for the prior five years in another state. For instance, the person who has been the responsible managing employee (RME) or responsible managing officer (RMO) in California for the past five years will likely be able to replace your Arizona qualifier with a waiver of the trade test (the law exam would still be required).

Please keep in mind that the overall reciprocity rules are different from state to state. In some cases, like Nevada, a state will not allow for a waiver of certain license classifications (like plumbing or electrical). In other cases — Arizona being a prime example, I've found — the reciprocity waiver is subjective and open to a case-by-case interpretation by the registrar. In Utah, the new qualifier need only be licensed for one day — in one of the other three states — rather than five years.

Q: If I have a contractor from another state (non-reciprocating) that I want to use as an RMO, does he have to become a full-time employee of the company?

A: Your RMO should be an employee of your company; however, there is nothing in the contractor licensing statues that says he must be full-time. For instance, if your RMO were able to handle his responsibilities working 25 hours a week, this would be acceptable. On the other hand, if your qualifier is an RME, he or she is subject to more strict employment requirements. The fact that your RMO is from another state or lives in another state has no bearing on his ability to act as your qualifier.

Some questions about government practices don't really have a clear answer. That's just the way it is, and an explanation is as close to an answer as you will get. Some simple questions about government policy require long, complicated answers. How the complex world of contractor's regulations works is why this space is here. It's like the tax codes; you might need an expert to help navigate a quick, successful course through the rules, regulations, policy, and practices in contractor's licensing ...

Q: Does the RMO have to be one of the officers listed on the SI-200, or can the RMO be a vice president or other officer not listed on this form?

It's frustrating that the CSLB and the secretary of state cannot make their forms more compatible. It appears one agency asks for the president while the other wants the CEO listed. One would never know that these two agencies are branches of the same state government!

A: I assume you're referring to the Statement of Information (form SI-200) required by the CA secretary of state (SOS). Corporations must file each year and list their chief executive officer (CEO), secretary and chief financial officer (CFO) as well as directors. There is no requirement to list a vice president, although a company can choose to do so.

The CSLB will often research this form when processing an application for new license, change of officers or change of qualifier. If the president (which is requested by the CSLB) does not match what is on file with the SOS (which asks for the CEO), the CSLB will reject the application. This can be confusing since different individuals can hold these titles. As indicated, the Contractors Board has little choice but to allow a VP as the RMO because this officer is not required to be listed.

Q: I have a question regarding a corporation that is part of a limited partnership. Where a limited partnership holds a license (by virtue of a RME), may a corporation, or any other person or entity that is a general or limited partner of the licensed limited partnership, do business under that license and/or hold itself out publicly as holding a contractor's license? Thank you very much for any assistance you can provide.

A: With any contractor's license number, you can only conduct business under one name. The business name, which is licensed with the CSLB, is what you should use for all advertising, bidding, contracts, etc. Using more than one name with a given license is not proper.

A limited (LP) or general (GP) partnership should ONLY conduct business under the name as registered with the CSLB. An individual (or corporate) partner that is part of the LP or GP should not hold himself (or itself) out publicly (or privately) as being a contractor independent from the licensed entity.

Q: Quick question my attorney brought up: I am thinking of becoming the RMO on my son's new contractor's license, using my name and my personal license, and holding 20 percent. My attorney said that if a complaint was filed against the NEW license that it would tie up all the licenses I sign on. Is this correct?

A: In theory, yes, a complaint against the new license could impact your other licenses. However, this is only if the complaint is not resolved and turns into an accusation or judgment against the company. Disputes with customers are not unusual; but most contractors resolve these so there will not be any action taken against their license. n

Knowledge is power. Knowing where to go for the answers is half the battle.

Get expert assistance immediately when you e-mail, call 916-443-0657, e-mail info@cutredtape.com, fax 916-443-1908, or write me at Capitol Services, Inc., 1225 8th St. Ste. 580, Sacramento, CA 95814.