By Shauna Krause, President, Capitol Services, Inc.
If you are a longtime reader thanks! You may know, but others new to this resource may not, that all our column history is online at cutredtape.com. However, we still get new questions, new situations, new interpretations and new rules from the Legislature to add when we’re done here. It’s always good to know your ‘options’ so looking online is a first step and calling an expert is a good second step…
Q: I looked on your Q & A archives on your website and couldn't find what I was looking for and was hoping you could help me out. I am interested in purchasing a Painting corporation (“C-33”) which has the owner as the Responsible Managing Officer (RMO). The way I understand it, I can buy the stock of the corporation and take over the license that way. The question I have is, who can be the RMO? Do they have to be a Licensed contractor in that field (Painting “C-33”), or can it be me (although I may not have the requisite experience)? If I have a General Builder (“B”) friend, can he be the RMO? I’m just trying to review all my options.
A: It does sound like you have several options. The RMO/RME can be someone who is currently qualified for the “C-33”, meaning someone who is currently a Licensed Painting contractor, or has been within the previous five years. If you can document the requisite experience to qualify for the license (four years of full time experience in the “C-33” classification within the last ten), then you can act as the RMO providing that you pass the Law and Trade exams. Your General Builder (“B”) friend can act as your RMO if he can show that the painting trade has been a significant part of his General Building work, to the tune of four full time years within the last ten. He would be required to pass the “C-33” exam.
FYI, there are also stipulations regarding RMO’s Qualifying more than one license at the same time, so you will want to discuss this with whomever you choose to act as your RMO/RME.
Q: I was referred to you by our Attorney to answer a question about a new opportunity that we have in the State of California. I’ll use generic names to describe the scenario. Company B (that’s us) is an equipment supplier for Company A and we supply equipment for solar plants. Company A (who holds an “A” General Engineering license) wants Company B (us) to now arrange for the installation as well. Company B plans to sub-contract the installation to Company C, who has a “C-46” license. Does Company B need to have an “A” license, will a “C-46”' license suffice, or no license at all? If a license is needed we have employees who would qualify for the “C-46”, but we don’t employ engineers.
A: Company B will need a license for whatever they will be contracting the installation for. It sounds like you are arranging installation for only solar systems, in which case the “C-46” (Solar) classification is sufficient to subcontract to Company C.
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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