Military Veterans Get Preferred Application Processing for a Contractor's License

On October 13, 2016 in a show of support for our veterans, the Contractors State License Board announced that the applications received by veterans are being processed by specially trained staff for faster test date issuance. Include your DD-214 and I would suggest stapling a piece of paper on the application stating "Military Applicant".

Other documents you can submit but are not required:

Copy of ERB (Enlisted Record Brief)

Copy of ORB (Officer Record Brief)

Copy of DD2586 (Verification of Military Experience and Training form)

Copy of Joint Service Transcripts (military transcripts)

Sealed, official educational transcripts for formal civilian education

If you don't have a copy of your DD-214 (or any other document listed above) you can request one at www.archives.gov/veterans/military-service-records

There is also expedited application service for spouses/domestic partners under certain circumstances.

For more information you can visit the official website of the Contractors State License Board at:

http://www.cslb.ca.gov/Contractors/Applicants/Military/

The CSLB Streamlines The Application Process

The California State Contractors License Board has, in the last couple of months, streamlined the application process. They are now requiring less paperwork for applicants resulting in faster test dates for a large percentage of applicants.

If you were thinking about becoming a contractor, now is a great time to apply for your contractor's license.

New C-1 Classification for Handymen and Light Remodels

The Contractors State License Board is considering adding a classification of license that addresses the gap between light general work, such as handyman and light remodels, and more extensive general building such as additions and new construction. It is still in meetings and it is unsure at this point whether it will be approved. The idea is that a person who does general building work that does not include structural (load bearing) framing and is less than $15,000.00 (the new amount of a contractor's bond) will be able to legally contract. The problem currently is that a person who does construction that doesn't involve framing can't qualify for a B-General Building license but is required to be licensed to do work that is $500.00 or more. More on this issue soon.

2016 California Contractors License Bond Increase

The Governor has recently signed Senate Bill 467 increasing the bond amount for licensed contractors from $12,500.00 to $15,000.00. This will not affect the Bonds of Qualifying Individuals (bonds for RME's and RMO's who own less than 10% of the business). Although the bill itself does not set an exact time, it is my understanding that the Contractors State License Board intends to make it effective on January 1, 2016. If you are a licensed contractor, this probably means that you will be getting a supplemental bill for the increase. Since it is a 20% increase, you can expect new and renewal bonds to cost about 20% more. If you are already bonded, you will only have to pay a pro-rata increase based on the amount of time that you have left on your current bond. For example, if you purchased a 2-year bond one year ago, you will be billed approximately 10% of your original premium, or half the 20% increase.

Take a look at our video detailing how the process of preparing for the California Contractor's License exam works.

Social Security Number No Longer Required to Obtain a Contractors License

Due to Senate Bill 1159 professional and vocational licensing in California will no longer require a Social Security Number (SSN), effective no later than January 1, 2016. This affects those obtaining a contractors license among many others. These types of licenses can now be obtained with only an IRS-issued ITIN (Individual Taxpayer Identification Number).

The practicality of this is dubious since you need to have a contractors license bond in order to have an active license, unless you can make a cash deposit of $12,500.00. A bond usually requires a credit check and therein lies the dilemma.

Whether you are for it or against it, it is now the law of the land. The Contractors State License Board is being proactive and accepting applications now with only ITIN's, ahead of the mandated effective date.

New C-22 Asbestos Abatement Contractor Classification Became Effective on January 1, 2015

The State has added a new classification to the 43 existing classifications. Prior to this year, the Asbestos Certification was the only option to legally remove asbestos. The problem was that contractors were limited to removing asbestos within their classification. So a drywall contractor could not remove asbestos outside of the scope of his/her drywall classification.

The argument to justify the new classification was that if a contractor was qualified to remove asbestos from a home within their classification, why not allow that same contractor to remove asbestos from any part of the house since the process is the same?

The law describes the C-22 as:

"An asbestos abatement contractor performs abatement, including containment, encapsulation, or removal, and disposal of asbestos containing construction materials, as defined in Section 6501.8 of the Labor Code, in and on buildings and structures. 

All work performed and all documentation prepared by an asbestos abatement contractor shall be done in accordance with regulations and requirements of the Department of Industrial Relations’ Division of Occupational Safety and Health (DOSH).

The C-22 Asbestos Abatement contractor classification operates as a stand-alone specialty contractor classification for asbestos abatement work, regardless of any other classification(s) that may be held by the licensed contractor, and functions within the scope of the contractor’s DOSH registration."

The Contractors State License Board requires that a C-22 contractor be registered with DOSH in order to be licensed in that classification. Proof needs to be submitted to the Board prior to any work being done in this classification. The State will issue the license without it, but proof of registration must be received by the Board within 90 days of licensure and the contractor cannot perform any asbestos work until the Board receives it.