RME Rule, Changing Entity and “B-2” License

To be, or “B-2” is the question now, and we have the answers! Complex regulations are the rule as two contractors who are less confident about RME’s get my expert help in knowing for sure where the boundaries are in CA…

Exciting news!  On June 1, the Contractors State License Board (CSLB) will begin accepting applications for the new B-2 Residential Remodeling Classification. This classification is available to licensees and applicants whose principal contracting business involves working on existing homes with residential wood frame structures which require at least three unrelated trades or crafts for a single contract.

Please note that the “B-2” license classification has the following restrictions: 

  • Limited to working on existing residential wood frame structures 
  • Cannot make structural alterations to load-bearing partitions and walls  
  • Cannot install or extend electrical or plumbing systems but can make modifications to existing systems (e.g., install recessed lighting or alter plumbing for two shower heads).
  • Cannot install or replace an HVAC system

Please call us with any questions regarding this exciting new classification.

Q:  You just recently assisted us with obtaining a new “A” license for my Limited Liability Company (LLC) with one of my employees as the RME (Responsible Managing Employee).  I want to sit for the exams as well, but since the CSLB only allows a person to have one application in process at a time, we had to complete one process at a time.  I’m wondering if it’s best for me to replace him on the license that was just issued or go get a separate license.  Does the license belong to the LLC or to the individual?

A:  The license belongs to the entity, in your case, the LLC.

Q:  We have a Corporate license with several employees acting as RME’s.  We are going to be starting a new company and moving employees around.  Before we get too far into the deal, I wanted to confirm whether the CSLB still requires RME’s to work 32 hours a week?  Also, in the event we move them from one license to the other, how long does the “old Company’s” license stay in place?

A:  Yes, RME’s are still required to work at least 32 hours a week, or 80% of the Company’s operating time.  The “old Company’s” license will remain in place until you request that it be cancelled, however it will go suspended if you do not replace the Qualifier’s within 90 days of them Disassociating from the license.