BILL NUMBER: AB 1762	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Hayashi

                        FEBRUARY 9, 2010

   An act to amend Section 10026 of the Business and Professions
Code, relating to real estate.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1762, as introduced, Hayashi. Real estate.
   The Real Estate Law provides for the regulation and licensure of
real estate brokers and salespersons by the Real Estate Commissioner.
As used in the Real Estate Law, the term "advance fee" is defined as
a fee, regardless of the form, that is claimed, demanded, charged,
received, or collected by a licensee from a principal before fully
completing each and every service the licensee contracted to perform,
or represented would be performed, with certain exceptions.
   This bill would redefine the term "advance fee" to mean a fee for
services requiring a real estate license, regardless of the form of
compensation, that is claimed, demanded, charged, received, or
collected by a licensee from a principal before fully completing the
service the licensee contracted to perform, with certain exceptions.
The bill would, in addition to the existing exceptions, also exempt
from the definition of advance fee moneys charged or collected for
advertising or promotion that are paid to other service providers, or
for referral to other real estate brokers or salespersons, or in
connection with mortgage loan origination activity. The bill would
also exempt from that definition fees associated with prepaid rental
listing services.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 10026 of the Business and Professions Code is
amended to read:
   10026.   (a)    The term "advance fee" as used
in this part is a fee  for services requiring a real estate
license  , regardless of the form of compensation  
, t   hat is  claimed, demanded, charged, received, or
collected by a licensee from a principal before fully completing
 each and every  the  service the licensee
contracted to perform  , or represented would be performed
 . Neither  an advance fee nor the services to be
performed   a fee, nor the services contracted for,
 shall be separated or divided into components for the purpose
of avoiding the application of this section.  The term
applies to a fee for a listing, advertisement or offer to sell or
lease property, other than in a newspaper of general circulation,
issued primarily for the purpose of promoting the sale or lease of
business opportunities or real estate or for referral to real estate
brokers or salesmen, or soliciting borrowers or lenders for, or to
negotiate loans on, business opportunities or real estate. As used in
this section, "advance fee" does not include "security" as that term
is used in Section 1950.5 of the Civil Code, or a "screening fee" as
that term is used in Section 1950.6 of the Civil Code. This section
does not exempt from regulation the charging or collecting of a fee
under Section 1950.5 or 1950.6 of the Civil Code, but instead
regulates fees that are not subject to those sections.  

   (b) The term "advance fee" does not include moneys charged or
collected for advertising or promotion that are paid to other service
providers, or for referral to other real estate brokers or
salespersons, or in connection with mortgage loan origination
activity subject to this part, and does not include fees described in
Article 2.3 (commencing with Section 10167) of Chapter 3, or Section
1950.5 or 1950.6 of the Civil Code.