C33 Business Organization 3 — Questions and Answers
Question 1: A Responsible Managing Employee (RME) must meet which minimum work-hour requirement to qualify a California contractor's license?
- At least 20 hours per week at the business location
- At least 32 hours per week or 80% of the business's total hours of operation (Correct answer)
- Full-time, defined strictly as 40 hours per week minimum
- At least 24 hours per week with a written schedule on file
Correct answer: At least 32 hours per week or 80% of the business's total hours of operation
The CSLB requires an RME to work at least 32 hours per week or 80% of the business's operating hours, whichever is less.
Question 2: Under what circumstances may an individual serve as Responsible Managing Officer (RMO) for more than one licensed contractor simultaneously?
- Never—an RMO may only qualify one contractor license at a time
- Only if both contractors hold exactly the same trade classification
- With CSLB approval, when the businesses are under common ownership (Correct answer)
- When both licenses are bonded through the same surety company
Correct answer: With CSLB approval, when the businesses are under common ownership
The CSLB may permit one RMO to qualify multiple entities when they share common ownership and the RMO can demonstrate active management of construction activities for each.
Question 3: If the qualifying individual (RME or RMO) leaves a painting contracting company, how long does the contractor have to replace them before the license is suspended?
- 30 days
- 45 days
- 60 days
- 90 days (Correct answer)
Correct answer: 90 days
Under California Business and Professions Code, a contractor has 90 days after the qualifying individual disassociates to replace them before the license is automatically suspended.
Question 4: To obtain a C33 California Painting Contractor license, the qualifying individual must pass which examinations?
- Trade (painting) exam only
- Law and business exam only
- Both the trade (painting) exam and the law and business exam (Correct answer)
- No exam is required if the individual has 10 or more years of experience
Correct answer: Both the trade (painting) exam and the law and business exam
The CSLB requires all qualifying individuals to pass both the trade-specific exam and the law and business exam, regardless of experience level.
Question 5: Which statement best describes the role of a Responsible Managing Officer (RMO) in a painting contracting corporation?
- An outside compliance consultant hired to manage CSLB filings
- A corporate officer who actively exercises management control over the company's contracting operations (Correct answer)
- A licensed field supervisor who oversees all jobsite workers daily
- A government-appointed overseer required for contracts exceeding $500,000
Correct answer: A corporate officer who actively exercises management control over the company's contracting operations
An RMO must be a bona fide officer of the corporation who actively controls and supervises the construction operations, not merely a nominal title holder.
Question 6: When a sole proprietor painting contractor wishes to take on a business partner, what must happen regarding their existing CSLB license?
- The new partner must file a separate individual license application
- The existing license is automatically amended to reflect the new partner
- A new license must be obtained in the name of the partnership entity (Correct answer)
- The partner must hold a journeyman painter certification before joining
Correct answer: A new license must be obtained in the name of the partnership entity
Because a partnership is a distinct legal entity from a sole proprietorship, the new partnership must apply for and obtain its own CSLB contractor's license.
Question 7: An RME serving as the qualifying individual for a painting contractor decides to open their own competing painting business. What restriction applies?
- They cannot qualify another license while actively serving as RME for the original contractor (Correct answer)
- They must wait two years after leaving before qualifying a competing license
- They must purchase the original business before starting their own
- No restrictions apply; they may qualify multiple licenses simultaneously
Correct answer: They cannot qualify another license while actively serving as RME for the original contractor
An RME can only qualify one contractor license at a time, so they must formally disassociate from the current employer before qualifying a new entity.
C33 Business Organization 3
A Responsible Managing Employee (RME) must meet which minimum work-hour requirement to qualify a California contractor's license?