Unexpected Expiration, Reciprocal States & HIS Experience Requirement

A contractor needs to be sure. Our first question is all about unsure! I will also answer ‘HIS’ questions, suggest another expert might also weigh-in and wrap with a positive note on an ‘expiration’ date…

Q:  I was reading the Nevada’s Contractor licensing website and I see that they reciprocate with California. Does the license holder have to hold the license for 4 years, or have been licensed within the last 4 years?  Our license holder is probably not eligible anyway, because he hasn’t held the license very long, and I don’t even think he actually took an exam, but I just wanted to confirm.

A:  Nevada has a limited reciprocal agreement with Alabama, Arizona, California, Connecticut, Florida, Hawaii, Louisiana, New Mexico, North Carolina, South Carolina, Tennessee, Utah, and West Virginia.  In order to qualify for reciprocity in Nevada, your Qualifier will need to have been actively licensed for the past four (4) years.  Other requirements to qualify include no disciplinary actions, suspensions or sanctions against your license.  If your qualifier does qualify for reciprocity, he/she will not have to take the trade exam or provide Work Certification forms.

Q:  We just obtained our license and we want to register several of our employees as Home Improvement Salespeople (HIS).  What are the experience qualifications for an HIS?

A:  There are no educational or experience requirement for a Home Improvement Salesperson.  The only requirement is they must be at least 18 years old.

Q:  I’m a Sole Proprietor Contractor in California and I’m forming a new Corporation and I plan to transfer my license number to the Corporation.  My attorney, who is handling the Corporation formation, is asking whether I want to elect to be an “S” or a “C” Corporation.  How will my choice affect my Contractor’s License and the ability to transfer the number?

A:  While I’m not a tax or legal advisor so you may also want to check in with one, I can speak to the fact that whether you elect to be a “C” Corporation vs. an “S” Corporation will not affect your Contractor’s license or the ability to transfer the number.  The CSLB never inquires as to whether you file taxes as an “S” or “C” Corporation.  In order to transfer the license number to the Corporation, the CSLB requires that you own at least 51% of the Corporation.

Q:  I never received our license renewal packet through the mail. Luckily, I caught it before our license expired, and had it postmarked on time. However, the CSLB is about a month behind on processing renewals currently, so our license is going to be expired for a month! I think you can imagine the monetary impact this will have. I’ve called the CSLB and they say there is nothing they can do. I’m also confused about what I can and can’t perform while our license is expired. I understand that means we can’t perform work under our license, but are we also restricted from bidding on jobs?

A:  Yes, the CSLB’s backlog for processing renewals at this time is about 3-4 weeks.  You are not supposed to be doing any contracting work, including bidding on jobs, while your license is expired. The good news is, as long as the CSLB receives an acceptable renewal application, they will retroactively renew the license, so there technically will not be any “gap” in the license.