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Discussion Starter · #1 ·
Good morning all,

We are a company from Oregon that would like to do business in California.
We have an affiliate in California who is a licensed contractor that will be joining our new company in California.
Can we use his CCB License for our company to pursue work in California or do we need our own CCB license and testing?

Any feedback would be greatly appreciated as we want to pursue this in the correct way.

Thank you for any help/feedback !

J
 

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Eater of sins.
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4,576 Posts
I am no expert but it sounds like a ready made RME/RMO situation.

He will be your qualifier in California as long as he is an actual part of the company, over-sees the construction projects, takes a part of the profit maybe?
And not just "renting" his license to you.

Sounds like you are trying t go about it the right way.
 

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School Director
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64 Posts
Hi,

That really depends on the structure of the "new" company in California and the roll that the current "qualifier" (person who took the test for the existing license In CA) plays in it. Will it be a Sole Proprietorship, Partnership, LLC or Corporation? If it is a corporation, will it be a new CA corporation or an existing one? Also, will it be registered in CA as a Foreign Corporation operating out of Oregon or a new/existing Corporation that is/was incorporated originally in CA.

I would be happy to help you with this question if you can provide more info.
 

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Discussion Starter · #4 ·
It will be a new California Corporation, filed (already) as a foreign corporation. Are there regulations on the role our qualifier will play? What level of involvement does the qualifier need to have in the company?

Thanks for the feedback.
 

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School Director
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64 Posts
Will the qualifier be an officer or employee of the corporation (RME/RMO)? If an officer, what percentage of the corporation will the qualifier own of the corporation? Also, will the qualifier want to keep his own license on active status while acting as the qualifier of the corporation?
 

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Discussion Starter · #6 ·
We will be using his license to operate in California so we are under the assumption that if we do that he needs to be an officer (RMO) of the company or have some stake in it? If he is an employee (RME) we cant use his license? The contractor will want to keep his own license current and active.
 

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School Director
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64 Posts
To be clear, you can't "use" someone's license. You can have someone who is currently licensed "qualify" for another company. If he is an RME for your company it is fair to assume that he does not have ownership interest and would have to put his own license inactive. If a licensed contractor qualifies for another company such as a corporation (qualifying officer) or partnership (qualifying partner), he can keep his own license current and active if he owns at least 20% of the company he is becoming the qualifier for. There are rules regarding his direct responsibility for the construction work of the new company and his control over the work.
 

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Calif Licensing Expert
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1,952 Posts
To expand on License Schools info:

7068.1. Duty of individual qualifying on behalf of another;
Acting as qualifying individual for additional person or firm;
Violation as cause for disciplinary action and misdemeanor
(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.

And....

823. Definitions: Bona Fide Employee; Direct Supervision and
Control
(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 is in operation, whichever is less.
(b) For purposes of Section 7068.1 of the Code, “direct supervision and
control” includes any one or any combination of the following
activities: supervising construction, managing construction activities
by making technical and administrative decisions, checking jobs for
proper workmanship, or direct supervision on construction job sites.
 
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