By Shauna Krause, President, Capitol Services, Inc.
While we have ‘plowed the ground’ on RME/RMO, it’s an area that always requires more answers than space allows. Answers often ‘grow’ new questions for readers. We give another contractor his wish in ‘passing’ the trade exam for a new classification. While they may be ‘married’ thru the corporation, ‘sisters’ can’t share the license!...
Q: We are a Georgia corporation and are in need of a California Contractor’s License. In the interest of timing we have hired someone who has an Inactive license for the purpose of acting as our Qualifying individual. We are unfamiliar with the difference with regards to responsibility between an RME (Responsible Managing Employee) and RMO (Responsible Managing Officer). If he lives in Southern California and we plan to have work throughout the State, how does that work? Can you provide us with any insight on this matter?
A: Whether an RMO or RME, the qualifying individual must be a bona-fide employee of your company and actively engaged in the business operations. The CSLB requires that an RMO exercise direct supervision/ control of the construction activities. That doesn’t mean that he/she has to be, but the CSLB requires that he/she perform any one or combination of the following activities: supervising construction, managing construction activities by making technical and administrative decisions, checking on jobs for proper workmanship, or direct supervision on construction sites.
RME’s have the same responsibilities, however in addition, RME’s must be employed at least 32 hours per week or 80% of the total hours per week you are actively working. Readers please call for further assistance or additional questions.
Q: Based on B&P Code Section 7075.1(c)(1), can a corporation who is currently licensed transfer their license number to another corporation if they owned by the same Parent Company? The Parent Company formed a new subsidiary and they want to transfer one of it’s other subsidiary’s license number to the new entity?
A: The CSLB will only transfer a corporate license number to another corporation under very few circumstances. Section 7075.1(c)(1) refers to mergers as well as changing filing status with the Secretary of State from domestic to foreign or vice versa. “Sister” companies cannot transfer their license number from one to the other under this code section.
Q: We have been an “A” (General Engineering) license holder since 1995. A new contract that we want to bid on requires that we also have a “C-31” (Traffic Control) classification on our license. Would I qualify for a Waiver of the trade exam based on my “A” license?
A: B&P Code Section 7065.3(c) allows the CSLB to consider a Request to Waive the trade exam when adding a classification to your license if the additional classification is closely related to the license currently held. You will need to show that the additional classification is a significant component of your construction business, which is typically done with project lists specific to, in your case, traffic control. Additionally, your license needs to have been Active and in good standing for at least five years. All that being said, it appears that you would be a good candidate to qualify for a Waiver of the “C-31” trade exam.
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 info@cutredtape.com, or write us at Capitol Services, Inc., 1225 8th St. Ste. 500, Sacramento, CA 95814. Research past columns at www.cutredtape.com.
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