Criminal History, Corporation License Transfers and More on BESS Rules

I will ‘knock down’ this first contractor inquiry in no time ‘flat.’ I help an attorney work out his client’s mistaken idea about having a license do ‘double duty.’ And for all our friends in the ‘solar’ system, I will ‘launch’ into an explanation of the new rules on BESS enacted by CSLB…

Q:  I have about 10 years of experience doing demolition and residential remodeling.  I have been looking into obtaining a Contractor’s License, I am just concerned that my criminal background from years ago will be an issue.

Thank you for contacting Capitol Services Inc.  The CSLB will require you to get fingerprinted and they will run a background check, however most of the time it’s not a deal breaker.  There are certain circumstances which may prevent you from being able to get a contractor’s license, but it’s very rare.  Some examples would be such as not completing the required rehabilitation or other requirements, the offense being recent, or if the offense was anything Contractor-related.

Q:  We recently purchased the assets of a corporation and we have formed an LLC (Limited Liability Company) which we want to eventually transfer all the contracts to.  We were referred to you by our Attorney who suggested that we run our strategy by you before actually pulling the trigger.  Currently, the corporation still has outstanding contracts in process that we do not want to transfer to the LLC and just have the corporation finish.  

At the same time, we would like to obtain a license for the LLC so that it can start doing business.  The owner of the currently licensed corporation has agreed to become the RMO/RME on the LLC license and disassociate from the corporation.  We understand from that point, the corporation will remain Active and in good standing for a period of 90 days without a Qualifier attached to it.  We anticipate all projects in process will be completed by that time, and once the 90 days is up, we would like to transfer the license number from the Corporation to the LLC.  Thoughts?

A:  A license number can be transferred from a Corporation to an LLC under certain circumstances, however the scenario you described implies you are intending on the Corporation and the LLC both holding licenses at the same time.  Once the LLC license is issued, you are not permitted to request the Corporation number be re-issued after the fact.  To have the corporate license number re-issued, the request must be made at the time the LLC submits an application for licensure.  As soon as the license number is re-issued to the LLC, the Corporation no longer has a Contractor’s License.

Q:  I am still a bit confused regarding the CSLB’s BESS installation requirements.  I am a “C-46” Contractor and I do BESS installations, so I understand I now need to work on adding the “C-10” (Electrical) classification to my license to continue.  I have heard “C-10” Contractors are only permitted to hire Certified Electricians to perform work for them.  In doing some research there is a lot involved in becoming a Certified Electrician.  Can you help me understand this a little better please?

A:  The only time a Contractor is required to have a Certified Electrician on staff is when they have “C-10” and they are engaging in the connection of an electrical device.  This includes connecting a BESS or PV (Photo Voltaic) system to an existing electrical system or to a utility grid. This also includes placing, installing, erecting or connecting an electrical panel.  A “C-10” contractor does not need to use a certified electrician to perform work on a BESS or PV when it involves installation, repair, or service of racks on a roof, installing poles and racks for ground mounted solar system, installing required BESS or PV signage, etc. If anyone still has questions about the new rules give me a call to discuss it at greater length.