BILL NUMBER: AB 1762	ENROLLED
	BILL TEXT

	PASSED THE SENATE  JUNE 28, 2010
	PASSED THE ASSEMBLY  JULY 1, 2010
	AMENDED IN SENATE  JUNE 2, 2010

INTRODUCED BY   Assembly Member Hayashi

                        FEBRUARY 9, 2010

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1762, 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,
regardless of the form, that is claimed, demanded, charged, received,
or collected by a licensee for services requiring a license, or for
a listing, as defined, before fully completing the service the
licensee contracted to perform or represented would be performed,
with certain exceptions. The bill would, in addition to the existing
exceptions, also exempt from the definition of advance fee moneys
claimed, demanded, charged, received, or collected for the purposes
of advertising the sale, lease, or exchange of real property or a
business opportunity in a newspaper, written publication, or other
electronic media, as specified, or moneys earned for real estate
services under a limited service contract, as defined, for
stand-alone services. The bill would also exempt from that definition
a contract between a real estate broker and a principal that
requires payment of a commission to the broker after the contract is
fully performed.


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

  SECTION 1.  Section 10026 of the Business and Professions Code is
repealed.
  SEC. 2.  Section 10026 is added to the Business and Professions
Code, to read:
   10026.  (a) The term "advance fee," as used in this part, is a
fee, regardless of the form, that is claimed, demanded, charged,
received, or collected by a licensee for services requiring a
license, or for a listing, as that term is defined in Section 10027,
before fully completing the service the licensee contracted to
perform or represented would be performed. Neither an advance fee nor
the services to be performed shall be separated or divided into
components for the purpose of avoiding the application of this
division.
   (b) For the purposes of this section, the term "advance fee" does
not include:
   (1) "Security" as that term is used in Section 1950.5 of the Civil
Code.
   (2) A "screening fee" as that term is used in Section 1950.6 of
the Civil Code.
   (3) A fee that is claimed, demanded, charged, received, or
collected for the purpose of advertising the sale, lease, or exchange
of real estate, or of a business opportunity, in a newspaper of
general circulation, any other written publication, or through
electronic media comparable to any type of written publication,
provided that the electronic media or the publication is not under
the control or ownership of the broker.
   (4) A fee earned for a specific service under a "limited service"
contract. For purposes of this section, a "limited service" contract
is a written agreement for real estate services described in
subdivision (a), (b), or (c) of Section 10131, and pursuant to which
such services are promoted, advertised, or presented as stand-alone
services, to be performed on a task-by-task basis, and for which
compensation is received as each separate, contracted-for task is
completed. To qualify for this exclusion, all services performed
pursuant to the contract must be described in subdivision (a), (b),
or (c) of Section 10131.
   (c) A contract between a real estate broker and a principal that
requires payment of a commission to the broker after the contract is
fully performed does not represent an agreement for an advance fee.
   (d) 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.
  SEC. 3.  The changes made to Section 10026 of the Business and
Professions Code by this act are intended to supersede the changes
made to Section 10026 of the Business and Professions Code by Chapter
630 of the Statutes of 2009, but are not otherwise intended to alter
the obligations or liability of any person pursuant to Chapter 630
of the Statutes of 2009.