Business & LicensingQuestion 1366 of 1632

What is the qualifying individual's core statutory duty toward the license he or she qualifies?

a.To sign personally every contract that the licensed firm enters
b.To guarantee the firm's payments to owners and to suppliers
c.To hold at least 51 percent of the firm's voting equity
d.To supervise and control the firm's construction operations

Explanation

B&P §7068.1(a) makes the qualifying individual — the RMO or RME — responsible for exercising supervision and control of the employer's or principal's construction operations to secure compliance with the license law and the board's regulations. (a) confuses supervision with signature authority; nothing requires the qualifier to execute the contracts. (b) imports the surety's job: the $25,000 qualifier's bond under §7071.9 answers to claimants, and the qualifier does not personally guarantee the firm's debts. (c) invents a controlling-ownership test — the ownership figures in this area are the 20 percent common ownership in §7068.1(a)(1) that lets one person qualify a second firm, and the 10 percent of voting stock in §7071.9(c) that waives the qualifier's bond.

Law Reference: B&P Code §7068.1(a)

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