Costs of not renewing PE licenses in remote states

[ArchGuy]

Hello,

I left my corporate firm 4 months ago and started my own engineering practice. Over the course of my career at previous firms, I became licensed in about 20 states, mostly due to one-off projects. My licenses in some states where I'm pretty sure I will likely never do work again are coming up for renewal (OK, let's be honest - one has already expired).

I've always kept my licenses active (with the exception of one state, in which I never did any work, so I converted it to "inactive status"). However, as a start-up company, maintaining all these licenses is a significant expense, and I've been obligated to do a cost benefit analysis. My understanding of the costs of not renewing/maintaining a license for a state that will not allow license conversion to "inactive" or "retirement" status are:

1. If I ever need to do work again in that state, I will potentially need to "back pay" for all the years since that license expired, plus a late fee(s).
2. If I attempt to become licensed in a new state, I may need to explain why I am "delinquent" in the state(s) where my license has expired.

I'm not so concerned about number 1 above - the only additional cost is the late fees in the unlikely event I get another project in the state. However, number 2 might be a concern. From my experience getting licensed in other states, often the states will ask the applicant to list states where he/she is "delinquent" (meaning licenses have expired) and explain his/her delinquency. I've never had to explain "delinquent" status when applying to a new state because, like I said, I've always maintained (or converted to "inactive") my licenses. Has anyone run into an issue with getting licensed in a new state(s) while being "delinquent" (license expired) in another state(s)?

 

[TigerGuy]

I've allowed 3 licenses to expire. Each state told me that if I ever needed to re-apply, just remind them that I was previously licensed and they would reactivate my number. One state wanted to continue to charge the renewal fee every 2 years to keep my license on inactive status.

I have 2 applications in process for other states and they haven't said a word about my expired licenses.

 

[alchemon]

I agree with TigerGuy... Just call the boards of the states you are considering letting lapse. Just tell them that you are considering not renewing because you aren't actively practicing there. Ask them the same questions as far as future renewal and/or fees and then follow up with a summary email to whoever you talk with. Should be a nothing burger as long as you do your due diligence.

 

[ArchGuy]

Thank you TigerGuy and alchemon for sharing your experiences.

 

[JStephen]

If you let a license expire, I don't think you'll owe anything for the intervening years when you reactivate- although it may be like getting a new license.
If you get licensed in a new state, I don't think any of them care about what states you used to be licensed in. Unless, that is, your original/home state is one of the ones affected.

In my case, the bigger issue is time. We are contractors that also do incidental engineering on projects we sell. So we can sell the product without having the engineering license. But, if we then have to start submitting paperwork for an individual license, get that approved, then submit paperwork for a corporate license and get that approved, that throws in 2-3 months of lead time before starting the engineering. (If you're a consultant, it's different, as you can't "offer to practice" without the license, generally).

If you have a NCEES council record book and keep it active, that can speed things up when activating/reactivating/applying for licenses.
Some states have provisions for temporary/provisional licensing that also speed things up.
You may also have costs associated with being registered with the Secretary of State as a corporation in those states where you're inactive but licensed.
Some states have an "inactive" status, and in TN, that lets me dodge a sizable tax each year. Some states have a "retired" status that would be similar, as it can be reactivated to full status.

 

[XR250]

I unknowingly let my license lapse in MD and sealed 5 LGMF jobs. It was a total CF to straighten that out. They wanted $1,500 for me to renew it so I chose not to. Later, had a customer who wanted me to do job in MD for him and he agreed to pay the fee. Pretty nice.