What Is an Rmo in a Contractor`s License

NO EXAMINATION IS REQUIRED UNDER SECTION 3065 With respect to estimated time limits for an applicant who does not request the review under section 7065, the Board shall, within 50 days of receiving the review, inform the applicant whether the application is complete and has been referred for review or is deficient and what specific information is required. Become a licensee, consultant and mentor to up to 3 new or established construction companies. Similar to an RMO, any official who is legally affiliated with the company then has the right to apply for their own license after five years. A RMO or TRA remains responsible for all work performed by the Company during this 90-day period. An RME or RMO entrepreneur cannot qualify more than three companies in a one-year period. If a 20% interest no longer exists, the Contractor State License Board must be informed of the separation. Licensed individuals should be cautious when serving as RMO for a business license without being directly involved in the day-to-day operations of the business. This practice of „hiring” a licensed person as a RMO can result in disciplinary action against the licensee, including revocation of the licence and criminal charges of misdemeanors, which can result in up to six months in jail and a fine of up to $5,000. (Bus and teacher code § 7068.1(e).) It can also result in personal liability for negligence if a construction project goes wrong. In construction, this is a relatively common phenomenon among investors or outside government institutions who want to get involved in construction by hiring an official or employee to hold the license. A qualified person on behalf of an individual or company under paragraph (a), (b) or (c) of section 7068 is responsible for the construction of the licensee until the Commission receives written notice of the separation. Thus, the „dissociated” licensee is. remains online.

Compliance with the above conditions entitles RME or RMO to have more than one active license. However, you can only be eligible for a maximum of three businesses in a year. If the qualifier does not meet these conditions, only one license can remain active. This means that if a person chooses to be an RME or RMO, they must deactivate their personal license.   Businesses and individuals in the construction industry need a license if they are involved in projects where the total cost of labor and materials is $500 or more. Licences may be issued to a commercial entity if the company employs an authorized person to qualify for the licence. (Bus and teacher code § 7065(b).) In the case of corporations, the qualified person is designated either as an accountable officer („RES”) or, in the case of an officer, the responsible director („RMO”). (Bus and Teacher Code § 7065(c)(3).) A RMO may simply be an officer of the corporation without property, but may be required to pay an additional deposit for its license. If the RMO owns at least ten percent of the business, a licence bond is not required. If the RMO has less than twenty percent ownership, that RMO is limited to being the RMO for that business. This law is subject to change and should be reviewed for its current status.

Note that in California, if you have fifty-one percent of a company`s capital, you effectively control the company. Faced with a sharp increase in consumer complaints against construction companies that „hire” qualified members, the legislature passed SB 862 at the request of the CLSB, which came into effect in January of this year. SB 862 gave the CSLB additional enforcement powers to take action against qualified „hired” by allowing the CLSB to take disciplinary action against a qualified and a licensee if the qualifier is not actively involved in the construction activities of the licensee`s business, and to lay criminal charges for offenses that can include up to six months imprisonment in the county jail. a fine of up to $5,000, or both. To replace an RMO, the licensee must submit an application as required by the Registrar, along with the fee. Code §7068.2. The notice may be given by letter or by means of the notice of separation. The replacement of the qualifier may be made by submitting the application for replacement of the eligible person and a reasonable fee. As mentioned above, the license is automatically suspended if the RMO is not replaced within 90 days. For more information on the process and requirements to obtain a license in the State of California, see our article on applying for a contractor`s license. RMO agencies often act as advisors, providing ongoing support and assistance to the company as well as the entrepreneur in their dealings with the Council of State.

If the licensee or qualifier fails to notify the Registrar of the separation within 90 days of the date of separation, the licence will be automatically suspended or the classification withdrawn and the qualifier removed from the permit, effective from the date of receipt of the written notice by the Commission. You may have heard of the term RMO – it stands for Responsible Managing Officer, a qualified person who can sponsor your own company for a new contractor license. If you have a trusted family member or friend who is a licensed CA contractor, this may be your RMO. Properly configured, you will have your own new license for your own registered business, using the qualified experience of your RMO, so no audit is required. In accordance with Article 12 § 827 (a) (6) (A), the minimum, average and maximum time limits for an application requiring consideration for admission as a contract, for further classification or for the replacement of the beneficiary, from the date of receipt of the application until the decision of the Council on the grant of the licence, grant additional classification or replacement of the beneficiary, Based on the performance of the Licensing Council over the past two years: MREs act as a qualifier for the license of a construction company that has proven experience in the same field as the company they work for. (2) A licence is required to continue the existing family business in the event of the absence or death of the holder. The California Contractors State License Board („CSLB”) recently warned licensees of the „dangers” of „leasing” a qualifier. Hiring a qualifier means that an unlicensed contractor will pay a person authorized by a California contractor to serve as an officer („RMO”) or officer („RME”) of a construction company if that person is not actually involved in the day-to-day operations of the business.

Construction companies do this in order to obtain a licence without the owner(s) meeting the experience and testing requirements required to obtain a contractor`s licence. Before you apply for a contractor`s licence, find out about the rules and regulations for contractors. Are you exempt? What is your particular industry and what are the restrictions and conditions? What are the penalties? The CLSB requires a qualifier for each classification on each licence issued, who may or may not be the owner of the business. Note that the terms „eligible person” and „qualifier” are used interchangeably. Qualifiers, also known as RME or RMO, are bona fide employees or officers of a construction company. They have similarities with respect to conditions of licence, but they differ in responsibilities. If you have questions about setting up a construction business with RMO or RME, confirm all licensing requirements with the CSLB www.cslb.ca.gov/ and consult with an experienced lawyer in the field. This can be especially important if you plan to start a construction business with an RMO as a minority shareholder and later get your own license. Corporate counsel can help you structure a shareholders` agreement so that you can later purchase the RMO`s interest in the corporation when you no longer need it as a supervising licensee, and so that the RMO cannot leave without reasonable notice before the corporation has another licensee. (a) For five of the seven years immediately preceding the application for a licence, the eligible person was recorded in the official records of the board of directors as a staff member of a licensee who was a licensee, who was the subject of an active application in good standing under the same classification, and who was actively involved in the construction activities of a licensee of the same classification during the period specified on the contractor`s licence. under which the applicant is applying for a licence.