BILL NUMBER: SB 510	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Correa

                        FEBRUARY 17, 2011

   An act to add Section 10164 to, and to amend Section 10165 of, the
Business and Professions Code, relating to real estate licensees.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 510, as introduced, Correa. Real estate brokers; corporate
officers: designating branch managers.
    The Real Estate Law, the willful violation of which is a crime,
provides for the regulation and licensure of real estate brokers and
real estate salespersons by the Real Estate Commissioner in the
Department of Real Estate. Existing law also requires a real estate
broker to procure an additional license for each branch office
maintained by the broker. Existing law authorizes the commissioner to
suspend or revoke a licensee's license for violations of specified
requirements.
   This bill would authorize an employing broker or corporate officer
appointed by an employing broker to appoint a manager of a branch
office or division of the employing broker's real estate business and
delegate to that manager responsibility to oversee and supervise
operations and activities, as specified. The bill would also require
that the appointment be made by means of a written contract sent to
the department with a notice identifying the appointed manager and
branch office or division, as specified. The bill also specifies that
an appointee shall not hold a restricted license, be subject to
debarment, or have less than 2 years of full-time real estate
experience. The bill would authorize the commissioner to suspend or
revoke the license of an appointed licensee for failure to properly
oversee and supervise operations, as specified.
   By adding provisions to the Real Estate Law, the willful violation
of which would be a new crime, this bill would create a
state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 10164 is added to the Business and Professions
Code, to read:
   10164.  (a) An employing broker or corporate officer appointed by
an employing broker may appoint a licensee as a manager of a branch
office or division of the employing broker's real estate business and
delegate to the appointed manager the responsibility to oversee
day-to-day operations, supervise the licensed activities of
licensees, and supervise clerical staff employed in the branch office
or division.
   (b) A licensee accepting appointment as a manager shall be subject
to disciplinary action pursuant to Section 10165 for failure to
properly supervise licensed activity pursuant to subdivision (a).
   (c) Appointment of a manager shall only be made by means of a
written contract in which the manager accepts the delegated
responsibility. The appointing employing broker or corporate officer
shall send a copy of the contract to the department, along with a
notice, in a form approved by the commissioner, identifying the
appointed manager and the branch office or division the manager is
appointed to supervise.
   (d) A licensee shall not be appointed as a manager if any of the
following apply:
   (1) The licensee holds a restricted license.
   (2) The licensee is subject to an order of debarment.
   (3) The licensee is a salesperson with less than two years of
full-time real estate experience when appointed.
  SEC. 2.  Section 10165 of the Business and Professions Code is
amended to read:
   10165.  For a violation of any of the provisions of Section 10160,
10161.8, 10162,  or  10163,  or subdivision (b)
of Section 10164,  the commissioner may temporarily suspend or
permanently revoke the license of the real estate licensee in
accordance with the provisions of this part relating to hearings.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.