Law & Business · Lesson 2 of 8

The Qualifying Individual: RMO, RME, and the 90-Day Replacement Clock

"The Qualifying Individual: RMO, RME, and the 90-Day Replacement Clock" is lesson 2 of 8 in the Law & Business Learning Hub. It opens with "What a Qualifier Is and Does" and works through 5 short steps, then a worked example you can check yourself against.

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Steps in this lesson

  1. What a Qualifier Is and Does
  2. Who Can Qualify Each Entity
  3. The RME Test: Bona Fide Employee, Actively Engaged
  4. The Qualifier Bond and Who Is Exempt
  5. When the Qualifier Leaves: The 90-Day Clock

The worked example in the course applies this lesson to a realistic job in 5 steps, from "Did she meet the "actively engaged" test?" through "Who is responsible meanwhile?".

What you'll be able to do

  • Explain the main idea of "The Qualifying Individual: RMO, RME, and the 90-Day Replacement Clock" in plain language you can use on the exam.
  • Apply this step with confidence: "The RME Test: Bona Fide Employee, Actively Engaged".
  • Apply this step with confidence: "The Qualifier Bond and Who Is Exempt".
  • Apply this step with confidence: "When the Qualifier Leaves: The 90-Day Clock".
  • Test yourself on the worked example and the quick-check quiz inside the classroom.
THE QUALIFIER: RMO, RME, AND THE 90-DAY CLOCKLicenseWho can qualify it (B&P 7068(b))Sole ownerThe owner, or an RMEPartnershipA general partner, or an RMECorporationAn RMO (officer), or an RMELLCRMO, managing manager,managing member, or RMERME "ACTIVELY ENGAGED" TEST32 hrs/week or 80% of hours open, whichever is lessShop open 35 hrs: 80% x 35 = 28 hrs28 is less than 32, so the test is 28 hrsMarisol works 30 hrs: passesQUALIFIER LEAVES (B&P 7068.2)Jan 12: Marisol resignsDay 0 - both clocks start+ 90 daysApr 12: notify CSLB ANDreplace the qualifier, or thelicense is suspended / theclassification is removed+ 90 more days (petition only)Jul 11: 180-day limit(date dispute or death only)RME test: 80% x 35 hrs = 28 hrs; Marisol’s 30 hrs passesReplacement deadline: Jan 12 + 90 days = April 12Source: B&P Code 7068, 7068.1, 7068.2, 7071.9; Get Licensed to Build (Applying for a License)CC
The diagram for this lesson, exactly as it appears in the Learning Hub.

The first steps of this lesson

Step 1: What a Qualifier Is and Does

A qualifier (also called the qualifying individual) is the person who qualifies the license by passing the exams under B&P Code 7068 (defined in 7025(c)). After the license issues, the qualifier is responsible for "supervision and control" of the employer's construction operations to secure compliance with the License Law (7068.1(a)). That means supervising operations, making technical and administrative decisions, checking jobs for proper workmanship, or supervising on construction sites, or monitoring and being available to assist the people to whom those duties were delegated (7068.1(c)(3)-(4)). The qualifier must be qualified in the same classification the license carries (7068(b)).

Step 2: Who Can Qualify Each Entity

B&P Code 7068(b) and Get Licensed to Build (Applying for a License, Q4): a sole owner license is qualified by the owner or a responsible managing employee (RME); a partnership by a general partner or an RME; a corporation by a responsible managing officer (RMO) or an RME; an LLC by a responsible managing manager, a responsible managing member, an RMO, or an RME. An RMO is a current officer listed in CSLB records. An RME is different: a bona fide employee of the firm (see the test below).

The remaining 3 steps, the worked example and the quiz are in the course. This is a preview. The full lesson, with the step-by-step explanations, a worked example and a quick-check quiz, is inside the classroom.

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