BILL NUMBER: SB 510 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 4, 2011
INTRODUCED BY Senator Correa
FEBRUARY 17, 2011
An act to amend Section 10165 of, and 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 amended, Correa. Real estate brokers;
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
designated broker 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 and that
the employing broker or corporate designated broker officer send a
notice to the department with a notice
identifying the appointed manager and branch office or division, as
specified. The bill would also require the employing broker or
corporate designated broker officer to notify the commissioner,
immediately and in writing, whenever a branch manager is
terminated or changed. 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 within 5 years preceding the appointment. The bill
provisions described above would become operative on July 1, 2012
. 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 designated broker
officer may appoint a licensee as a manager of a branch office
or division of the employing broker's or employing corporate
designated broker officer'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) Notwithstanding subdivision (a), nothing in this section
shall be construed to limit the responsibilities of an employing
broker or a corporate designated broker officer pursuant to
subdivision (h) of Section 10177. 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
designated broker officer shall send a copy of the
contract to the department, along with a notice,
retain a copy of the contract and send a notice to the department,
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 or has been 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
within five years preceding the appointment .
(e) Whenever an appointment of a branch manager is terminated or
changed, the employing broker or corporate designated broker officer
shall immediately notify the commissioner thereof in writing.
(f) This section shall become operative on July 1, 2012.
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, 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.