Let the 90-Day Countdown Begin

Most contractors are diligent about making sure that they pay their licensing fees, renew worker’s compensation insurance, and maintain the required bonds. What may be less obvious is how critically important it is to have current company personnel listed on the company’s licensing records with the Contractor’s State Licensing Board. Only personnel listed on the CSLB’s records are authorized to act on behalf of the licensee with respect to CSLB-related matters.

Although this may sound simple enough, all such personnel will be required to comply with fingerprinting (and background check) requirements before their applications to be added to the company’s licensing records can be approved. No new personnel will be associated with the licensee until their application is determined to be acceptable and all other requirements are met. Unforeseeable processing delays could result in this new personnel being unable to timely act on behalf of the licensee.

Once such time-sensitive scenario could include a sudden departure of the company’s license qualifier, i.e., the responsible managing officer (RMO) or responsible managing employee (RME). The disassociation of an RMO/RME is to be received at the CSLB Headquarters within 90 days after the effective date of the disassociation and the licensee is then to replace the qualifier within 90 days of the disassociation date. If a licensee is unable to replace the RME/RMO within the 90-day period, under certain circumstances, a one-time 90-day extension can be requested by personnel listed on the Contractor’s State Licensing Board’s records for the licensee. An extension request will be considered if received by an individual listed on the company’s licensing records within 90 days from the date of the RMO’s/RME’s disassociation. Failure to replace the qualifier within 90 days would ordinarily result in the automatic suspension of the license or removal of the classification, which could be catastrophic if the company is engaged in or contracting to perform work requiring a contractor’s license.

The CSLB provides forms to change the following persons listed on a license:

• Application to Add New Personnel to Existing Corporate or Limited Liability Company License
• Application to Report Change of Title for Current Officer or Personnel of Existing Corporate or Limited Liability Company License – No Fee
• Application to Add a New Limited Partner to An Existing Partnership License
• Application to Add a New Limited Partner to an Existing Partnership License
• Disassociation Request for Officers, Qualifiers, a General Partner, a Limited Partner a Joint Venture Entity or Joint Venture (Bus. & Prof. Code § 7076(c), (e), (f))
• Death of a person licensed as an individual (Bus. & Prof. Code § 7076(a))
• Death of a general partner or limited partner (Bus. & Prof. Code § 7076(b), (d))

Additional Resource: How to Lose Your Contractor’s License in 90 Days (or Less)