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In recent years, the Construction Industry Licensing Board (“CILB”)has expressed concerns with qualifiers that qualify more than one business entity. The CILB requires that a licensee appear before the board at a monthly meeting in order for the board to approve such licensee to qualify an additional business. This in-person evaluation is one way the board can ensure that the licensee is not “renting” its license out, and is actually participating in the construction activities of the additional business entity.
The CILB has formulated the following Administrative Rule, which seems to impose the following guidelines in their effort to ensure proper oversight by the licensee of the construction activities.
Notably, the rules does not require all factors, and factor (3) seems to be broad enough for the licensee to provide its own measures to be put in place to satisfy the board.
61G4-15.0024 Supervision of Business Entities.
Documentation of one or more of the following factors in an application to qualify a business entity will demonstrate to the Board, absent evidence to the contrary, that an applicant possesses the ability to properly supervise the proposed additional business entity for purposes of the application:
(1) The applicant to qualify an additional business owns 20% or more of the business to be qualified;
(2) The applicant to qualify an additional business is a W2 employee of the business to be qualified; or
(3) Other evidence of the means and methods utilized by the applicant to ensure control over the construction work of the proposed additional entity.
Rulemaking Authority 489.108, 489.119 FS Law Implemented 489.108, 489.119 FS History–New 5-2-12.