By Shauna Krause, President, Capitol Services, Inc.
It’s true, we go away for a holiday or vacation and lose our memories! Another contractor gets help in determining the scope of his General, and an Attorney gets a pat on the back for making his case…
Q: We spoke a couple of weeks ago and since then, not only has time passed, but I went on vacation for the Fourth of July holiday and now of course many of the details of our conversation have left my head. From the notes I took, I have down that we have a Responsible Managing Employee (RME) on our current license. In the same notes I have down that we have another individual as our Responsible Managing Officer (RMO). I have yet another note that states a company cannot have an RMO and an RME at the same time. Can you help me decipher/clarify my notes please?
A: I looked up your license again and yes, you have one individual who is an RME for the “B” General Building classification. You have a different individual who is listed as your RMO, and he qualifies the “C-10” Electrical classification on the license.
In an attempt, to decipher your notes, a license is permitted to have multiple Qualifiers (RME’s/RMO’s) as long as the license holds more than one classification. If a company only holds one classification, it would not be possible for the company to have an RME and an RMO at the same time on the same license.
OR, it’s possible your notes were referring to the fact that an individual cannot be an RMO on one Active license, and at the same time be an RME on a separate Active Contractor’s License (unless under very few/special circumstances).
Q: I am a licensed contractor and I have both the “A” General Engineering and the “C-61”/”D-06” Concrete Related Services classifications on my license. I wanted to bid on a job for repairing a bus stop which was knocked down by a vehicle. The project would include installing the benches, bolting them into the concrete as well as constructing and installing the enclosure/shelter at the bus stop. Can I do this project with my current license?
A: An “A” Contractors license would not be appropriate for the work you described. You would need to hold the “B” General Building classification or the “D-34” Prefabricated Equipment classification.
Q: I am an Attorney helping one of my Contractor clients with a couple of transactions and we believe we need to enlist your assistance, and definitely your advice. The individual client is 100% owner of Corporation A. He is the RMO and has a specialty license. He has purchased two other corporations doing the same type of work as Corporation A, but in slightly different geographical areas. The two purchased corporations (Corp B and C) are intended to be wholly owned by the Qualifier. Corps B and C have existing specialty licenses with the CSLB holding the same classification as Corp. A.
The client wants to own, operate, and act as the RMO for Corps. B and C, replacing the sellers/retiring owners. He would like to use the same business names due to the business good will of each.
It appears to me that the client would not violate B&P Code Section 7068.1 because he would be the 100% owner of all three corporations and he would not have to be a “bona fide employee” of all three under 7068 since he would not be the RME, but rather the RMO of each. Am I correct in my interpretation?
A: You are correct. If you’re an Attorney with a contractor concern I will have no ‘objection’ in assisting you!
While knowledge is power, knowing where to go for the answers is half the battle. Get expert assistance immediately when you call 866-443-0657, email email@example.com, or write us at Capitol Services, Inc., 3609 Bradshaw Rd, Ste H, #343, Sacramento, CA 95827. Search past column at www.cutredtape.com.