Business & LicensingQuestion 674 of 690
How many separate active CSLB licenses may a single qualifying individual (RMO or RME) qualify simultaneously?
a.Only one license at a time, with no exceptions
b.Up to three firms, BUT only if there is a common ownership/affiliation between the firms (e.g., common officers, partners, or a 20%+ owner) as defined by Bus. & Prof. Code §7068.1(b) and CCR Title 16 §823; otherwise, only one
c.Up to five firms, regardless of affiliation
d.An unlimited number of firms, provided the qualifier holds a Class A license
Explanation
Under Bus. & Prof. Code §7068.1(b) and CCR Title 16 §823, a qualifying individual may simultaneously qualify NO MORE than three firms in any one-year period — and only if there is common ownership or affiliation (typically a 20% or greater common ownership interest, or common officers/partners). Without such affiliation, the qualifier is limited to ONE firm. The 'unlimited' and '5-firm' options misstate the rule. This 'qualifier-of-three' rule is heavily tested and is the statutory backstop against industry-wide 'license renting.'
Law Reference: Bus. & Prof. Code §7068.1Practice all 690 questions free — no signup required.
Related questions on this topic
- An LLC seeking a contractor's license in California must maintain a separate Liability Insurance policy with aggregate limits of at least:
- A licensed contractor changes its business address. Under Bus. & Prof. Code §7083, the contractor must notify the CSLB Registrar within:
- A qualifying individual (RME/RMO) disassociates from a licensed entity on March 1. Under Bus. & Prof. Code §7068.2, by when must the licensee notify the CSLB Registrar?
- Two licensed contractors want to bid on a single project as a joint venture. Under Bus. & Prof. Code §7029, they must:
- Under Bus. & Prof. Code §7059.1, a licensed contractor's business name (including any DBA/fictitious business name) may NOT:
- When a sole proprietor licensed contractor incorporates the business and wants the new corporation to hold the license:
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