BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 510
                                                                  Page  1

          Date of Hearing:   July 13, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     SB 510 (Correa) - As Amended:  May 4, 2011 

          Policy Committee:                              Banking and 
          Finance      Vote:                            11 - 0 
                        Business and Professions                9 - 0 

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill establishes requirements for an individual to become a 
          real estate branch manager and authorizes the Commissioner of 
          the Department of Real Estate (DRE) to discipline a branch 
          manager for failure to supervise branch operations.  

           FISCAL EFFECT  

          Costs associated with this legislation are minor and absorbable 
          within DRE resources. 

           COMMENTS  

           Rationale . According to the author, SB 510 will add 
          accountability to the managers of real estate branch offices by 
          ensuring that managers' licenses can be sanctioned for failure 
          to supervise. The bill sets minimum standards for licensees that 
          may be appointed as a branch office manager, and empowers DRE to 
          require registration of appointed managers in a form approved by 
          the DRE.

          This legislative proposal is one of the recommendations of the 
          DRE Broker Supervision Task Force. The Task Force was an 
          internal group with industry participation, set up by the DRE 
          Commissioner in 2009-10 that looked at ways to improve the 
          supervision of sales licensees. 
           

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081 








                                                                 SB 510
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