Sunday, January 18, 2015

PROTECT YOURSELF AND YOUR LICENSE

IF YOU TALK TO A GOOD ATTORNEY THAT YOU HIRE TO PROTECT YOUR INTEREST AS A RESPONSIBLE MANAGING OFFICER - THEY WILL HELP YOU TO STAY OUT OF  TROUBLE  AS AN  ( RMO ) R M O 


AN ATTORNEY THAT SPECIALIZES IN CONTRACTOR / LICENSING LAW SHOULD BE ABLE TO CONSULT YOU - BEFORE - DURING - AFTER - A PROBLEM WITH THE CALIFORNIA CONTRACTORS STATE LICENSE BOARD - CSLB 


Christine McCall and  Mike Classens 

of 

LICENSE ADVOCATES are exactly who I personally recommend -
I found a good attorney for contractors that can help you to protect your professional licenses, especially for general contractors and specialty contractors. It is always advised to know a good attorney that is caring and intelligent.

I found Christine on the net, and gave her a call
License Advocates
225 South Lake Avenue, Suite 300
Pasadena, CA, 91101
United States
Show Map
Phone: 888.406-4020

    

I was very impressed with her attitude and professionalism, I am not connected to the law firm or Christine McCall other than to say that she helped me with some issues and gave me great advice. I actually found her on her blog http://californialicenselaw.com/

Christine McCall seems to be a perfect fit. If you are a contractor and you want to do business, I recommend Christine. Having a good attorney can protect you from entering into dangerous business
situations and  relationships, and can help you avoid pitfalls.

It is important that you know the law so you can be in compliance with all of the laws of the CSLB
California Contractor State License  Board http://www.cslb.ca.gov/ .

Be proactive and do not wait until it is too late. Do yourself a favor. Call Christine, Christine is dedicated to her clients, is knowledgeable about contractor law, is resourceful, experienced and fair priced.

Being a licensed contractor means more than just pulling permits and doing a good job. There are many compliance law that you may not know about, Christine can help you start  right and stay out of trouble before an incident arises and even after the fact.

As contractors we need to be determined to know the rules, laws, business and professional codes - There is a lot to know, in fact a lot more than  there is on any test or more than most of us will ever experience in our training or education.

linkedin christine mc call

linkedin mike claessens

license advocates

california license law

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R M O Responsible Managing Officer

More Articles - Responsible Managing Officer
responsible managing officer rmo abuse
There are many different ways a contractor can be determined to be unlicensed.  One that the State is now cracking down on very diligently is the improper use of a Responsible Managing Officer (RMO) or Responsible Managing Employee (RME).   Corporations are attempting to “borrow” another company’s RME or RMO............
cumminsandwhite responsible managing officer rmo abuse

A qualifying individual can be a Responsible Managing Officer (“RMO”), a Responsible Employee (“RME”), a Responsible Managing Member, or Resopnsible Managing Manger, who holds his or her own individual contractor’s license which is associated with the company.
In order for a qualifying individual to obtain a contractor’s license they must satisfy the California Contractors State License Board’s (“CSLB”) experience requirements and take and pass a written Law and Business Examination and a specific trade examination for each classification in which the individual seeks a license.
And that’s where the rub lies.
calconstructionlawblog.com/2013 Renting a Contractors License
cal construction law blog




Q: I have an opportunity to RMO my licenses. They are both under one CA license number. I have never been a Responsible Managing Officer (RMO) and know nothing about the good & bad points of doing this. One question is can I leave at any time with my license? I would be hired as a Corporate Officer, Manager or Superintendent with an hourly wage. Where can I get good information without paying an attorney???????????
cut red tape

That’s part of the problem, said David Fogt, chief of enforcement with the licensing board. He said his office investigates cases to determine if the licensed officers, or “qualifiers,” are actually participating in a job. “If we find the qualifier is not actively involved, we allege there’s a violation.”
 - See more at: Renting License


                                                                                                                                

Dear Editor:
To clear up misinformation about the Contractors State License Board (CSLB) that your readers may have received from SF Public Press’s March 26, 2012 article, titled “State says lax rules might let builders use questionable licenses,” I offer a few of the most important points that need clarification.
CSLB regulates the state’s construction contractors and provides information and education to consumers so they can make informed choices related to home improvement and other construction projects.
There is no state program that enables or “allows” a licensee to lease out a contractor license. In fact, California law prohibits the fraudulent use of a contractor license and it would be possible cause for CSLB to revoke the license and for a prosecutor to file felony charges against the person who fraudulently used the license. What’s more, the licensee is financially liable for any damages caused by the non-licensed person.
It’s important that your readers have some context about Responsible Managing Officers (RMO). Laws outlining the requirements to serve as a qualifier on a contractor license have been part of California’s Business and Professions Code since 1959. An amendment more than 20 years ago added a limit to the number of partnerships or corporations on which an individual could serve as an RMO to three licenses in any one-year period. (This year, limited liability companies (LLC) were added to the code and CSLB now licenses LLCs, as well.)
The code also states that the RMO “shall be responsible for exercising that direct supervision and control of his or her employer’s or principal’s construction operations as is necessary to secure full compliance with this chapter and the rules and regulations of the board relating to the construction operations.” Your article implies that RMOs are required to physically monitor job sites regularly and cannot do so if the job sites are spread out geographically. No part of the law states that the RMO has to physically be onsite or supervising the daily activities of any active job site. If physically monitoring job sites were a legal requirement, it is possible that hundreds, if not thousands, of California contractors with only one license would be unable to conduct business in different parts of the state at the same time.
With that in mind, it’s important to remember that the RMO is ultimately responsible for everything that happens on a job site. If laws are broken and CSLB takes an action against a license, all licenses associated with that RMO would be negatively affected. In addition, RMOs are required to have at least 20 percent interest in the corporation.
Some private companies may to try circumvent current RMO laws by putting licensees in a position of serving as a qualifier without direct involvement in the supervision and control of a company. If that occurs, there are severe consequences. Penalties for violating state contracting laws (both administrative and punitive) have been in place for years, and CSLB aggressively pursues anyone who tries to skirt these laws.
Your article also states that one can obtain a license without passing the state exam or having the required journey-level experience because of RMOs. With rare exceptions, each RMO has passed the law and business and the separate trade exam for the license classification he or she is seeking, and has provided proof of the required four years’ journey-level work experience. Without successful completion of the exams and experience an individual would not qualify for a license.
We are hopeful that your readers have not misinterpreted your article to mean that state law or CSLB allows individuals to operate without having successfully met all contracting licensure requirements, and that this explanation confirms that not only do state law and regulations exist, but that they actively are upheld and violators legally and financially are held accountable.
Before hiring any contractor to work in or around their home or business, CSLB encourages your readers to check the status of a contractor’s license and find other important information, including personnel on the license by visiting the CSLB website at www.cslb.ca.gov or www.CheckTheLicenseFirst.com. They can also follow us on Twitter and Facebook to learn more about and engage in ongoing discussions regarding the board’s role in protecting the state’s consumers, licensing contractors, and enforcing state contractor license laws.
- See more at: Questions Contractors License RMO

From the CSLB - California Contractors State License Board

Responsibility of Qualifying Individuals - Responsible Managing Officer R M O

"R" Stands for "Responsible" 
contractors
CSLB licenses and regulates California's construction industry, but its public mandate puts consumer protection above any individual interest.
As a state-licensed contractor, you know that every license requires a qualifying individual, or "qualifier," who is the person listed in CSLB's personnel of record, has demonstrated his or her knowledge and experience through the application process, and holds one or more license classification. (A license qualifier may be a Sole Owner, Qualifying Partner, Responsible Managing Employee (RME), Responsible Managing Officer (RMO), Responsible Managing Manager, or Responsible Managing Member.)
Qualifiers must exercise direct supervision and control of construction operations. Construction performed by unqualified individuals who illegally obtain a license by using an absentee qualifier is a threat to the public. Consumers are put at risk when substandard work is performed by unskilled individuals; the cost to correct deficient work can be exorbitant, often exceeding the original contract amount.
CSLB is aware of "retired" licensees who are serving as RMOs of corporate licenses for a monthly fee, but do not have direct involvement in the construction and business activities. With consumer risk in mind, CSLB is aggressively and stringently taking enforcement actions against those involved in this trend, and is in the process of legislatively enhancing violations to make them a criminal offense.
Many absentee qualifiers are older individuals who are seeking to supplement their retirement income by qualifying licenses, and are unaware of deficiencies and illegal acts performed by those who run the day-to-day operations until CSLB takes formal disciplinary action against their license. Whether the absentee qualifier is 18 or 80, CSLB will hold him or her to answer.
Being the qualifier on a license can be a huge risk and liability. Under existing law (Business and Professions (B&P) Code section 7122.5), if the performance of an act or omission by the license constitutes a cause for disciplinary action, it also is a cause for disciplinary action against the qualifier, regardless of his or her knowledge and participation.
The duties and responsibilities of a qualifier are defined in B&P Code section 7068.1 and the California Code of Regulations (CCR), Title 16, Division 8, Article 2, section 823.
B&P Code section 7068.1 states, in part:
The person qualifying on behalf of an individual or firm under paragraph (1), (2), (3), or (4) of subdivision (b) of Section 7068 shall be responsible for exercising that direct supervision and control of his or her employer's or principal's construction operations as is necessary to secure full compliance with this chapter and the rules and regulations of the board relating to the construction operations.
CCR section 823 further defines a "bona fide employee" and "direct supervision and control" as follows:
(a) For purposes of Section 7068 of the Code, "bona fide employee" of the applicant means an employee who is permanently employed by the applicant and is actively engaged in the operation of the applicant's contracting business for at least 32 hours or 80% of the total hours per week such business in operation, whichever is less.

(b) For purposes of 7068.1 of the Code, "direct supervision and control" includes 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.
See B&P Code section 7068 for additional information.
Protect your license and avoid the risk of violating state law. If you are qualifying a license, make sure you are aware of all contracting activity and that your involvement in business operation meets state requirements.
cslb.ca.gov/Newsletter/2012 Responsible Managing Officer


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Wednesday, January 14, 2015

Licensed Contractors

Building Trade Group Sues 80 Contractors, 

Claiming They're Unlicensed


Rocco DiBenedetto ramped up a yearslong mission against unlicensed contractors by singling out suspected companies and the people behind the businesses.
As head of the Miami-Dade Contractors Alliance, he filed a 242-page lawsuit in Miami-Dade Circuit Court asking Circuit Judge Jennifer Bailey for declaratory relief and an emergency injunction to shut down the companies.
He argued the companies commit fraud and deceptive trade practices and create unfair competition by offering prices 30 percent below market rates—because they avoid thousands of dollars in licensing fees and other annual business expenses.............

Read more: http://www.dailybusinessreview.com/id=1202715052268/Building-Trade-Group-Sues-80-Contractors-Claiming-Theyre-Unlicensed#ixzz3OrJ0jgzs


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Tuesday, January 6, 2015

RMO RESPONSIBLE MANAGING OFFICER



Always consult an attorney before allowing

anyone to have you listed as an RMO or RME

of a business.  Ouch !  Always Before - Before

....keep in mind that under B&P Code section 7122.5 any act or omission that is a cause for disciplinary action by any individual, partnership, corporation or firm is also a cause for disciplinary action against the RMO, RME, or Qualifying Partner, regardless of his or her knowledge and participation.

If you are the qualifying member of a construction business, you and your licenses will be held accountable for all activity and any violations committed by other members of the license. As the Responsible Managing Officer (RMO), Responsible Managing Employee (RME), or Qualifying Partner for a contracting business, you must exercise direct supervision and control of its contracting operations. If you are not doing so, or if any of the business's other officers, general partners, or employees break the law, you could lose this license and any other license on which you serve as qualifier for violating section 7068.1 of the Business and Professions Code (B&P).

RMO-or-RME-your-license-and-liability-are-on

Careful Careful There may be some serious Problems and Penalties -  Protect yourself

was released, but the investigation continued. On June 17, the Los Angeles County District Attorney’s Office filed 42 felony counts, including burglary, forgery and grant theft from an elder or dependent adult.
Felony warrants were issued for ___ and a second defendant, 30-year-old ___ who allegedly assisted ___ in defrauding the elderly. Bail was set at $1.4 million for ___ and $1.3 million for ____

RENTING YOUR CONTRACTORS LICENSE – YES OR NO?

I’ve always answered by quoting the Business and Professions Code that covers this issue. I also stress that they must have first hand knowledge of the work being done under the license they are qualifying. This direct supervision could be in the form of on-site visits, progress reports, photo’s, etc. You, as the qualifier, are responsible to ensure that the work being done meets plans, specs, and is to code. By not doing this, you are putting yourself at great risk of losing your personal assets, and being removed from any other license you may be qualifying. My recommendation is to do on-site visits. If the CSLB were to receive a complaint about a project that you are required to oversee, you better have your i’s dotted and t’s crossed. The only way to effectively do that is to make site visits.

Renting You License

7068


7068.1.  (a) The person qualifying on behalf of an individual or
firm under paragraph (1), (2), (3), or (4) of subdivision (b) of
Section 7068 shall be responsible for exercising that direct
supervision and control of his or her employer's or principal's
construction operations to secure compliance with this chapter and
the rules and regulations of the board. This person shall not act in
the capacity of the qualifying person for an additional individual or
firm unless one of the following conditions exists:
   (1) There is a common ownership of at least 20 percent of the
equity of each individual or firm for which the person acts in a
qualifying capacity.
   (2) The additional firm is a subsidiary of or a joint venture with
the first. "Subsidiary," as used in this subdivision, means any firm
at least 20 percent of the equity of which is owned by the other
firm.
   (3) With respect to a firm under paragraph (2), (3), or (4) of
subdivision (b) of Section 7068, the majority of the partners,
officers, or managers are the same.
   (b) Notwithstanding paragraphs (1) to (3), inclusive, of
subdivision (a), a qualifying individual may act as the qualifier for
no more than three firms in any one-year period.
   (c) The following definitions shall apply for purposes of this
section:

california business  7068

"defending the license against disciplinary action 
(revocation, suspension, probation) by the State."
Partner


Read more: License Advocates Law Group http://licenseadvocateslawgroup.blogspot.com/#ixzz3O2oDBcK2






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State agency concerned about selling of contractor licenses



"We have established a task force to take a closer look at the issue within the last couple months," Lopes said.

"We are certainly hearing a lot about this company and are very concerned about how they may be operating," Lopes said.

vcstar state-agency-concerned-about-selling-of-licenses

Senate Bill 862, which became effective earlier this year, and amended Business and Professions Code 7068.1, gave the CSLB additional enforcement authority to crack down on phony qualifiers by allowing the CLSB to take disciplinary action against a qualifier and a licensee if the qualifier is not actively involved in the construction activities of the licensee’s business.  This is on top of misdemeanor criminal charges, which can include imprisonment in the county jail up to six months, a fine of up to $5,000, or both.
The CSLB is now flexing its new enforcement muscles and has announced that it has established a task force to investigate qualifiers who are suspected of acting as straw men for construction companies:
cslb gets tough on phony qualifiers 

This article briefly discusses the California requirements, rules and regulations concerning the Responsible Managing Officer position for companies. California has, by far, one of the most complex and rigorous rules and regulations imposed upon companies and, indeed, not all states require a Responsible Managing Officer, but for those that do, each has different rules with regard to the procedure for replacing the individual.

The State has an interest in making sure that such a person is engaged in the oversight and control of the entity sufficient to provide the protections to the public that the entire licensing regime is created to maintain. Thus, States routinely provide a series of requirements imposed upon the use of such employees who are normally termed the RESPONSIBLE MANAGING OFFICER or “RMOs”.

responsible managing officers under california law



Renting Your California Contractor’s License. Probably Not Such a Good Idea

Are you a retired, expired or “inactive” contractor? Have you been asked to serve as the qualifier for someone else’s license for a monthly fee without having to be involved in day-to-day business operations?
If you receive such a solicitation, your first question should be “Is that legal?” The answer: No.

cal construction law renting

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