BILL NUMBER: SB 510 ENROLLED
BILL TEXT
PASSED THE SENATE MAY 31, 2011
PASSED THE ASSEMBLY AUGUST 25, 2011
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, the
Business and Professions Code, relating to real estate licensees.
LEGISLATIVE COUNSEL'S DIGEST
SB 510, 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
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 and that the employing broker or corporate
designated broker officer send a notice to the department 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.
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 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 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 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.