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

7068.1.  (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."

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

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State agency concerned about selling of contractor licenses

rmo agency

"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