CSLB Recognition

Over a hundred people got special ‘bracelets’ from the CSLB in recognition of their ‘work’. Can a contractor preserve a partnership license while removing a partner? ‘Generally’ that has some ‘limited’ consequences. Another contractor discovers why what worked for him one year, may not the next when it comes to providing Worker’s Comp coverage…

Q: I am having FITS with our license. I’ve attached a copy of the Worker’s Comp Cert that was sent to the Contractors Board. This is the same as was sent last year. I don’t understand what the Board is asking for in their form letter, and why the Cert they returned is unacceptable. What do I need to do? Thank you for your input.

A: It would appear this is a new Worker’s Compensation Certificate. My research indicates the one from last year is from a different insurance company. Since a Responsible Managing Employee qualifies your license, the CSLB will not allow an exemption or coverage through a leasing company (which it appears you have). I would contact your insurance agent and discuss a change back to the company you had last year.

Q: We have a limited partnership contractor’s license in several states. In CA, we want to replace one general partner and the limited partner. Can this be done and if so how?

A: If you change a general partner on a partnership license this will result in the licensed being cancelled. You may however substitute the limited partner with no penalty. The CSLB has a form to do this. If in fact the existing partnership has dissolved, you should apply for a new one. This will result in a new license number being issued.

Q: I hold a “C-10″(electrical) and “C-20″(HVAC) license. Sometimes work will be required on a project that does not fall under either of these classifications. Can I get into trouble if I perform this work?

A: B&P Code 7059 addresses your question. A specialty contractor can perform a contract involving the use of two or more crafts or trades if the work is “incidental and supplemental” to the work for which you’re licensed.

The CSLB recently announced the results of its biggest undercover operation ever. The Board’s entire Statewide Investigative Fraud Team (SWIFT) conducted sting operations in 7 different cities. These included Escondido, Orange, Hemet, Redondo Beach, Brentwood, Sacramento and Davis. A total of 167 people were arrested and will need to appear before a Superior Court to answer the misdemeanor charges. About a dozen more serious criminals were ‘cuffed’ and hauled off to jail.

According to CSLB Registrar, Steve Sands, “we could only pull off this type of operation with the cooperation of industry, local cities and law enforcement agencies, District Attorneys and our partners in the Fraud Division at the Department of Insurance”

As I have stated previously in this column, SWIFT’s goal is to combat the underground economy and level the playing field for licensed contractors by getting unlicensed individuals off the street.