Leasing your License Question

[prostock]

I have recently earned my Masters License in MD.
I was asked if I would like to lease it to another company. I don't really need it right now as I am involved with another venture. I just decided to study and take the test and I passed. I know that I can assign it to one company in MD. What is the going rate for this service? Who holds the insurance? What are the risk? I would like to turn some money with it and help some good electricians out.

Any info would be helpful. Thanks

 

[jimwalker]

Re: Leasing your License Question

In Florida doing that could make you personally liable and you could lose it if they did anything major wrong.You best be very sure of who they are.How come if they are good electricians do they not get there own

 

[tkb]

Re: Leasing your License Question

In MA the business name has to match the name on the license. Once we get our masters we have to transfer it to a corporate name if the business name is diferent than your own name. You also have to be an officer of the company.

 

[jeff43222]

Re: Leasing your License Question

Why would a company want to lease your license? The only reason I can think of is that a company would need a designated master electrician in order to do business. We have a similar law in Minnesota.

At the very least, it sounds unethical. At worst, it could be dangerous and illegal. As the designated master electrician, you would be responsible for all electrical work done by the company, sign requests for inspection, etc. Do you really want to take responsibility for work that you have no knowledge of? Do you think the authorities think a leasing arrangement is a good idea?

I would never do it.

 

[msd]

Re: Leasing your License Question

Suppose the company you lease your license to is unethical and gets "your" license revolked. Easy for the company to move on as they can find a new license holder. You would be the one stuck without a license.

I am aware of a company in Agoura, CA that has had a few suckers qualify for them. Needless to say they have had several license revokations and referals to the District Attorny's Office.

Beware of what you see on the surface. There has to be some valid reason why the person/company wanting "your" license is unable to obtain a license on their own.

This very well could be a decision you will regret for the rest of your life. Just my $0.02

 

[luke warmwater]

Re: Leasing your License Question

I hold a MD Masters License.

HERE is the State Statute that describes what you propose.

It is not just a simple signing of Inspecton applications for the Contractor.

While the State of MD might allow a way for this to be done, I would suggest against it, and it may or may not be legal at the County level. You also need to check with the County.

What does your insurance agent have to say about it?

 

[goldstar]

Re: Leasing your License Question

Why would a company want to lease your license?

I remember this occurring quite often when I worked in NYC. There are circumstances where this might become necessary. For example, if a licensed electrician starts his/her own business and it grows to the point where there are several large contracts going on with countless employees in the company and suddenly this individual dies, rather than shutting down the company it is left to wives, sons or daughters to run who do not have licenses. Obtaining a license for them may not be practical or out of the question so they, in turn, look for someone to lease a license from so the business can continue to operate and generate incomes for all. Remember, this is a business like any other. The fact that we are electricians who choose to become businessmen/women just adds a small wrinkle to the situation. Now granted, if you know that this company has been notorious for doing shoddy work, leasing your license to this company would be a mistake. However, if it has been a top notch company this could prove to be quite a profitable situation for you (for doing no work at all I might add). I don't know what the $$ amount would be to do this so you'll have to do some research (which was the basis for your original question). Sorry, but I can't help you there.

 

[George Stolz]

Re: Leasing your License Question

Here in CO, the licenses are online for all to see, including time held, revokations, and disciplinary actions by the state electrical board. I agree the the others above me, your license is on the line. If you see it's a good company, I'd try to offer my services as a master electrician to the company, not just the license. Safer, and you'd sleep better.

But there's probably not a big chance of that happening.

 

[charlie tuna]

Re: Leasing your License Question

it happens many times. say a large electrical contractor in new york has a contract with a certain company and they want him to do their work in florida. they do not hold a masters license in florida, so they lease one. now, it is legal. and the responsibilities remain the same for the license holder as "the qualifier" -- he is responsible! and he should protect his license with insurance, remain in a position to control and oversee the work installed under his license. to do this i would suggest a written contract made up by your own attorney --not "the company's" to assure you protection. remember these words "you must have an equal amount of authority to cover that responsibility they are asking for"! and i would ask for the ability to cancel this contract with thirty day notice. they cannot be in business without a qualifier assigned to their business. i would ask for a salary, plus a per centage of the work i qualified them for! and i would oversee the installation of the work i qualified them for!

 

[George Stolz]

Re: Leasing your License Question

Morning Charlie T! So a transfer of some control is considered normal, then, you think? I certainly would want some, with what's at stake.

edit typo

[ February 02, 2005, 07:51 AM: Message edited by: georgestolz ]

 

[radiopet]

Re: Leasing your License Question

Not possible in VA unless you work for the company a minimum of 30 hours or are made a part of the managment staff and so on.

One of the regulations in VA is that you can't assist someone else by letting them use another tradesmans license or you risk your own license being revoked.

Now, I wonder if the idea of License Brokers came to anyones mind....you actually sign up to become a consultant and hired and made a part of the staff might work...

But I dont even think that will work in VA.....they dont allow others to use someone elses license at all in any case.

 

[charlie b]

Re: Leasing your License Question

I take exception to the use of the word ?lease? in this discussion. For those states that allow what is being described, I hope they don?t use that word as the name of the arrangement. They would not be living in a house that you own, with their payment covering your mortgage cost plus a suitable profit margin. You would not be letting them use your van to move their furniture, with their payment covering normal wear and tear and for a suitable profit margin. It is not a ?lease.?

Here is where I would draw the line. An arrangement in which you receive payment for services rendered is acceptable. The services would have to include being physically present and actively participating in the work, to the extent that you can be satisfied that the work complies with codes and is being performed safely. On the other hand, an arrangement in which they can put your license number on various forms, and all you know about any of it is that you occasionally get a check is not acceptable. This may sound overly harsh, but I would call that arrangement tantamount to prostitution.

In addition to my five active PE licenses, I hold an Electrical Administrator Certificate in Washington State. It is not currently assigned to any company. It is not for sale or lease.

 

[charlie tuna]

Re: Leasing your License Question

i worked seven years for a company who had over three hundred electricians working for them. this company was owned by five brothers who all had journeyman licenses -- none had a masters license. they hired a master to qualify their company. this master worked in the office primarily on paperwork -- permits -- and inspection problems. he was a well qualified master and well respected with the inspection department. i ran two multi million dollar projects for them during this period and never seen him on the job. he probibly aquired the permits on these projects and that was it. i called for all the inspections and maintained the records concerning permits all the way including the final certificate of occupency. this arrangement is not unusual in florida. many (owners)masters die in this state from heart attacks brought on by the way they are treated by the general contractors. therefore, this is not un-usual!!!!!!!!!!

 

[prostock]

Re: Leasing your License Question

Thanks for all the feedback. I too have the same reservations as you all (Y'all). This situation concerns a guy that was my "mentor" when I first got started. We worked at the same shop and I was his helper for awhile. He stressed the importance of a good workmanship and I have carried that throughout my career. He now has been in business for himself for awhile, and i think his business is 99% cookie cutter builder houses. Of course I would check out the work and his employees before making a move. He has recently split with a partner he had from the beginning, for reasons I dont know yet. He will sit for the test soon, but may not have the commercial background to be successful on the test. he is looking for a way to keep his business going. Friends are friends and business is business, and we would have to draw that line firmly. I have the most to lose. As for the insurance, we would have to develop that so that I am protected. My current insurance only covers me. I am trying to research this throughly and any more feedback is appriciated.

Prostock

 

[prostock]

Re: Leasing your License Question

In addition, "Lease" is a bad word for this situation. I could not just sign it over without involvement in activities.

 

[bradleyelectric]

Re: Leasing your License Question

I have worked for a man that owned a rather large electrical contracting business and never saw the man. He was definately a full time employee and manager of the business though. He was also definately responsible for the work performed by his employees.

 

[stew]

Re: Leasing your License Question

The arraingement you have described is illegal in the State of Wash. I have had several offers to"park" my license as well and have turned them all over to our licensing regulators for acxtion. It is unethical as well as illegal at least in Wash.

 

[msd]

Re: Leasing your License Question

Also illegal in CA.

At least a 20% ownership is required if you are a RMO or at least 30 hours per week (or so) as a RME.

RMO = responsible managing owner
RME = responsible managing employee

Unethical even if legal in your state.

 

[highkvoltage]

Re: Leasing your License Question

No Way! I would never concider letting anyone work with my license. I have worked to hard to get it. I would also question that persons qualifications to preform as an EC if he himself can't pass the test. I also would worry everyday about getting sued and losing everything I have worked for.