BILL NUMBER: AB 2007 CHAPTERED 09/22/04 CHAPTER 676 FILED WITH SECRETARY OF STATE SEPTEMBER 22, 2004 APPROVED BY GOVERNOR SEPTEMBER 22, 2004 PASSED THE ASSEMBLY AUGUST 26, 2004 PASSED THE SENATE AUGUST 25, 2004 AMENDED IN SENATE AUGUST 19, 2004 AMENDED IN SENATE AUGUST 4, 2004 AMENDED IN SENATE JULY 7, 2004 AMENDED IN SENATE JUNE 8, 2004 AMENDED IN ASSEMBLY APRIL 1, 2004 AMENDED IN ASSEMBLY MARCH 26, 2004 AMENDED IN ASSEMBLY MARCH 22, 2004 INTRODUCED BY Committee on Business and Professions (Correa (Chair), Aghazarian, Bermudez, Corbett, Shirley Horton, Koretz, Leno, Maldonado, Maze, Nation, Vargas, Wyland, and Yee) FEBRUARY 13, 2004 An act to amend Sections 10150, 10151, 10153.3, 10210, 10215, 10226, 10226.5, and 12028 of the Business and Professions Code, relating to business, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 2007, Committee on Business and Professions. Business. (1) Existing law authorizes any sealer to levy a civil penalty against a person who violates specified laws or regulations governing weights and measures with specified exceptions. Existing law also provides that any person convicted of violating specified laws governing weights and measures, or any person who is determined to be civilly liable for violating any of those provisions, is liable for reasonable costs incurred in investigating the action. Existing law provides that no administrative costs shall be imposed for violations for which civil penalties may be imposed under these provisions. This bill would clarify that no administrative costs shall be imposed for violations for which civil penalties are imposed under the above provisions. (2) The Real Estate Law provides for the examination and licensure of real estate salespersons and real estate brokers, and for the payment of specified fees for real estate salesperson and real estate broker licenses. This bill would authorize a person applying for the real estate broker or salesperson license examination to also apply for licensure, but would prohibit a license from being issued until the applicant passes the respective license examination. The bill would require a person applying for a real estate salesperson license to meet specified existing educational requirements. The bill would provide that if an applicant fails to pass the license examination within 2 years from the date of filing the license application, the application would lapse and no further proceedings on it would be taken. Because this bill would increase the number of persons eligible to apply for real estate salesperson licenses and for real estate broker licenses, and would increase the amount of fee revenue deposited in the Real Estate Fund, a continuously appropriated fund, it would make an appropriation. Existing law requires the Real Estate Commissioner, if, as of June 30 of any fiscal year, the balance of funds in the Real Estate Fund exceeds 50% of the department's authorized budget for the following year, to, within 30 days, reduce real estate salesperson license fees and other specified fees. Existing law also requires that, if funds are transferred from the Real Estate Fund to the General Fund by the Budget Act, certain fees are required to be reduced. This bill would change the amount that the balance of funds in the Real Estate Fund may not exceed to 150% of the department's authorized budget. The bill would also require that if funds are loaned from the fund to the General Fund by the Budget Act, certain fees would be reduced. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 10150 of the Business and Professions Code is amended to read: 10150. (a) Application for the real estate broker license examination shall be made in writing to the commissioner. The commissioner may prescribe the format and content of the broker examination application. The application for the broker examination shall be accompanied by the real estate broker license examination fee. (b) Persons who have been notified by the commissioner that they passed the real estate broker license examination may apply for a real estate broker license. A person applying for the broker examination may also apply for a real estate broker license. However, a license shall not be issued until the applicant passes the real estate broker license examination. If there is any change to the information contained in a real estate broker license application after the application has been submitted and before the license has been issued, the commissioner may require the applicant to submit a supplement to the application listing the changed information. (c) Application for the real estate broker license shall be made in writing to the commissioner. The commissioner may prescribe the format and content of the broker license application. The application for the real estate broker license shall be accompanied by the appropriate fee. SEC. 2. Section 10151 of the Business and Professions Code is amended to read: 10151. (a) Application for the real estate salesperson license examination shall be made in writing to the commissioner. The commissioner may prescribe the format and content of the salesperson examination application. The application for the salesperson examination shall be accompanied by the real estate salesperson license examination fee. (b) Persons who have been notified by the commissioner that they passed the real estate salesperson license examination may apply for a real estate salesperson license. A person applying for the salesperson examination may also apply for a real estate salesperson license. However, a license shall not be issued until the applicant passes the real estate salesperson license examination. If there is any change to the information contained in a real estate salesperson license application after the application has been submitted and before the license has been issued, the commissioner may require the applicant to submit a supplement to the application listing the changed information. (c) Application for the real estate salesperson license examination shall be made in writing to the commissioner. The commissioner may prescribe the format and content of the salesperson license application. The application for the real estate salesperson license shall be accompanied by the appropriate fee. SEC. 3. Section 10153.3 of the Business and Professions Code is amended to read: 10153.3. (a) In order to take an examination for a real estate salesperson license, an applicant shall submit evidence or certification, satisfactory to the commissioner, of enrollment in, or successful completion at, an accredited institution, of a three-semester unit course, or the quarter equivalent thereof, in real estate principles. Evidence of enrollment satisfactory to the commissioner may include a statement from the applicant made under penalty of perjury. (b) An applicant for an original real estate salesperson license, including an applicant who has filed a salesperson license application contemporaneously with an application to take an examination for a real estate salesperson license, shall, prior to the issuance of the license, submit evidence satisfactory to the commissioner of successful completion, at an accredited institution, of a three-semester unit course, or the quarter equivalent thereof, in real estate principles. (c) The commissioner shall waive the requirements of this section for an applicant who is a member of the State Bar of California, or who has completed an equivalent course of study, as determined under Section 10153.5, or who has qualified to take the examination for an original real estate broker license by satisfying the requirements of Section 10153.2. (d) This section shall become operative on July 1, 2004. SEC. 4. Section 10210 of the Business and Professions Code is amended to read: 10210. (a) The fee for a real estate broker license shall not exceed three hundred dollars ($300). In the case of an original applicant, the fee is payable upon filing the real estate broker license application. (b) If an applicant fails to pass the real estate broker license examination within two years from the date of filing his or her broker license application, his or her broker license application shall lapse and no further proceedings thereon shall be taken. (c) This section shall remain in effect unless it is superseded pursuant to Section 10226 or subdivision (a) of Section 10226.5, whichever is applicable. SEC. 5. Section 10215 of the Business and Professions Code is amended to read: 10215. (a) The fee for a real estate salesperson license shall not exceed two hundred forty-five dollars ($245), except that for an applicant qualifying pursuant to Section 10153.4 who has not satisfied all of the educational requirements prior to issuance of the license, the fee shall not exceed two hundred seventy-five dollars ($275). In the case of an original applicant, the fee is payable upon filing the real estate salesperson license application. (b) If an applicant fails to pass the real estate salesperson license examination within two years from the date of filing his or her salesperson license application, his or her salesperson license application shall lapse and no further proceedings thereon shall be taken. (c) This section shall remain in effect unless it is superseded pursuant to Section 10226 or subdivision (a) of Section 10226.5, whichever is applicable. SEC. 6. Section 10226 of the Business and Professions Code is amended to read: 10226. (a) The commissioner may periodically by regulation prescribe fees lower than the maximum fees provided in Sections 10209.5, 10210, 10214.5, 10215, and 10250.3 whenever he or she determines those lower fees are sufficient to offset the costs and expenses incurred in the administration of Part 1 (commencing with Section 10000) of this division. The commissioner shall hold at least one regulation hearing each calendar year, to determine if lower fees should be prescribed. (b) If, as of June 30 of any fiscal year, the balance of funds in the Real Estate Fund exceeds an amount equal to 150 percent of the department's authorized budget for the following year, then within 30 days thereafter the commissioner shall, notwithstanding the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), issue regulations reducing real estate license and subdivision fees so that as of June 30 of the next fiscal year the balance of funds in the Real Estate Fund shall not exceed an amount equal to 150 percent of the department's authorized budget for that year. (c) If the commissioner fails to reduce these fees within the timeframe specified in subdivision (b), then fees shall automatically be reduced to the levels as indicated in subdivision (b) of Section 10226.5. That reduction shall be effective no later than September 1 of the fiscal year wherein the commissioner is obliged to issue regulations pursuant to subdivision (b). SEC. 7. Section 10226.5 of the Business and Professions Code is amended to read: 10226.5. (a) If at any time funds are transferred or loaned from the Real Estate Fund to the General Fund by the Budget Act, then 30 days from and after the date of the transfer or loan, fees shall be reduced as indicated in subdivision (b), irrespective of any provisions of the Budget Act precluding that reduction. (b) Fees shall be reduced pursuant to paragraph (a) to the following maximum amounts: (1) Real estate broker examination or reexamination: Fifty dollars ($50). (2) First reschedule of broker examination: Fifteen dollars ($15); subsequent reschedules: Twenty-five dollars ($25). (3) Real estate broker license, original or renewal: One hundred sixty-five dollars ($165). (4) Real estate salesperson examination or reexamination: Twenty-five dollars ($25). (5) First reschedule of salesperson examination: Ten dollars ($10); subsequent reschedules: Twenty-five dollars ($25). (6) Real estate salesperson license, original or renewal: One hundred twenty dollars ($120). (7) Real estate salesperson license without all educational requirements: One hundred forty-five dollars ($145). (8) A notice of intention without a completed questionnaire: One hundred fifty dollars ($150). (9) An original public report for subdivision interests described in Section 11004.5: One thousand six hundred dollars ($1,600) plus ten dollars ($10) for each subdivision interest to be offered. (10) An original public report for subdivision interests other than those described in Section 11004.5: Five hundred dollars ($500) plus ten dollars ($10) for each interest to be offered. (11) A conditional public report for subdivision interests described in Section 11004.5: Five hundred dollars ($500). (12) A conditional public report for subdivision interests other than those described in Section 11004.5: Five hundred dollars ($500). (13) A preliminary public report for subdivision interests described in Section 11004.5: Five hundred dollars ($500). (14) A preliminary public report for subdivision interests other than those described in Section 11004.5: Five hundred dollars ($500). (15) A renewal public report for subdivision interests described in Section 11004.5: Five hundred dollars ($500). (16) A renewal public report for subdivision interests other than those described in Section 11004.5: Five hundred dollars ($500). (17) An amended public report for subdivision interests described in Section 11004.5: Three hundred dollars ($300) plus ten dollars ($10) for each subdivision interest to be offered under the amended public report for which a fee has not previously been paid. (18) An amended public report to offer subdivision interests other than those described in Section 11004.5: Three hundred dollars ($300) plus ten dollars ($10) for each subdivision interest to be offered under the amended public report for which a fee has not previously been paid. (19) An application for an original, renewal, or amended registration as required by Section 10249: One hundred dollars ($100). (20) The filing fee for an application for a permit to be issued pursuant to Article 8.5 (commencing with Section 10250) for each subdivision or phase of the subdivision in which interests are to be offered for sale or lease shall be as follows: (A) One thousand six hundred dollars ($1,600) plus ten dollars ($10) for each subdivision interest to be offered for an original permit application. (B) Five hundred dollars ($500) plus ten dollars ($10) for each subdivision interest to be offered that was not permitted to be offered under the permit to be renewed for a renewal permit application. (C) Three hundred dollars ($300) plus ten dollars ($10) for each subdivision interest to be offered under the amended permit for which a fee has not previously been paid for an amended permit application. (D) Five hundred dollars ($500) for a conditional permit application. SEC. 8. Section 12028 of the Business and Professions Code is amended to read: 12028. On or before July 1, 1995, the secretary shall adopt regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code that specify the types of violations for which civil penalties may be imposed pursuant to Section 12015.3, the amount of the penalty for each violation, and a procedure for providing notice to the person charged with a violation of that section. The amount of the penalty shall be based upon the seriousness of the violation and the potential for harm. No investigative costs shall be imposed pursuant to Section 12015.5 for violations for which civil penalties are imposed pursuant to Section 12015.3.