BILL ANALYSIS Ó
SB 706
Page 1
SENATE THIRD READING
SB 706 (Price)
As Amended August 26, 2011
Majority vote
SENATE VOTE :22-12
BUSINESS & PROFESSIONS 6-3
APPROPRIATIONS 12-5
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|Ayes:|Hayashi, Allen, Butler, |Ayes:|Fuentes, Blumenfield, |
| |Eng, Hill, Ma | |Bradford, Charles |
| | | |Calderon, Campos, Davis, |
| | | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bill Berryhill, Hagman, |Nays:|Harkey, Donnelly, |
| |Smyth | |Nielsen, Norby, Wagner |
| | | | |
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SUMMARY : Makes numerous enforcement changes to the Department
of Real Estate (DRE) and the Office of Real Estate Appraisers
(OREA), requires specified licensing boards to post information
about licensees on the Internet, and makes updating and
conforming changes. Specifically, this bill :
1)Requires the California Board of Accountancy; the California
Architects Board; the State Athletic Commission; the State
Board of Barbering and Cosmetology; the State Board of Guide
Dogs for the Blind; the State Board of Chiropractic Examiners
(BCE); DRE; and, OREA to post specified information regarding
their licensees and registrants on the Internet, and makes
conforming changes. Requires the Board of Behavioral Sciences
to include information about licensed professional clinical
counselors.
2)Requires the information specified above to include
accusations filed pursuant to the Administrative Procedures
Act. Provides that, in providing information on the Internet,
entities within the Department of Consumer Affairs (DCA) and
the BCE shall comply with DCA guidelines for access to public
records.
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3)Authorizes an administrative law judge to order a licensee in
a disciplinary proceeding to pay, upon request of the DRE
Commissioner (Commissioner), the reasonable costs of
investigation and enforcement of the disciplinary case against
the licensee, as specified. Prohibits DRE from renewing or
reinstating the license of a licensee who fails to pay costs
ordered, unless the licensee demonstrates financial hardship
and enters into an agreement to pay, as specified. Recovered
costs must be deposited in the Real Estate Fund, as specified.
4)Allows the Commissioner to require a restricted licensee, as
specified, to pay the monetary costs associated with
monitoring the licensee's activities, as specified, in
addition to any other terms and conditions placed upon the
restricted licensee.
5)Allows the Commissioner to require, as a condition precedent
to the issuance of a restricted license or restricted mortgage
loan originator license endorsement, the licensee to pay
monetary restitution to any person who sustained damages by
reason of the act or acts that led to the discipline.
6)Prohibits the Commissioner from renewing a license or a
mortgage loan originator license endorsement, and allows the
Commissioner to deny an application for the removal of license
restrictions or for the reinstatement of an unrestricted
license, if the licensee fails to pay all of the costs he or
she is ordered to pay pursuant to this bill.
7)Allows the Commissioner to require a holder of a restricted or
revoked license to pay the reasonable costs of processing a
petition request for reinstatement of a license, as specified.
8)Requires the automatic suspension of any license or
endorsement of a licensee during any time the licensee is
incarcerated after conviction of a felony, regardless of
whether the conviction has been appealed, as specified.
9)Requires a DRE licensee to submit a written report of any of
the following to the DRE: the bringing of an indictment or
information charging a felony against the licensee; conviction
of the licensee, including any felony or misdemeanor; and, any
disciplinary action taken by another licensing entity or
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authority of this state, another state, or an agency of the
federal government. Requires the report to be made in writing
within 30 days, and provides that failure to make a report
shall constitute a cause for discipline.
10)Subjects DRE and OREA to review by the appropriate committees
of the Legislature, beginning January 1, 2015.
11)Requires the Secretary of the Business, Transportation and
Housing Agency to review and evaluate OREA and make
recommendations to the Legislature by October 1, 2014,
regarding whether OREA should be consolidated within DRE or
consolidated within any other state department or office, as
specified.
12)Adds to existing information that a licensee, applicant for
licensure, course provider, or applicant for course provider
accreditation must report in writing to OREA within 30 days,
by including misdemeanor convictions and the bringing of an
indictment or information charging a felony, as specified.
Failure to make a report constitutes a cause for discipline.
13)Requires, effective January 1, 2013, applicants for renewal
of a license from OREA to fulfill continuing education
requirements including a minimum of four hours of federal and
California appraisal related statutory and regulatory law
every four years.
FISCAL EFFECT : According to Assembly Appropriations Committee:
1)DRE estimates that they may be able to generate as much as $1
million per year in revenue by having the authority to recoup
the investigation and enforcement costs for disciplinary cases
against licensees.
2)Workload costs for DRE and OREA are minor and absorbable
within existing resources.
COMMENTS : According to the author's office, "Recent reports and
articles have criticized the DRE as well as the OREA for a lack
of taking action against licensees who have violated the
law?(This) bill gives both DRE and OREA a set of tools to
enhance their enforcement operations."
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The DRE is responsible for regulating the practice of real
estate brokers and real estate salespersons in California. The
OREA is responsible for regulating the practice of real estate
appraisers in the state.
This bill provides a number of enhancements to these agencies'
authority to enforce California real estate and appraisal laws,
discipline licensees and applicants for licensure who violate
these laws, and recover costs in doing so.
Analysis Prepared by : Angela Mapp / B.,P. & C.P. / (916)
319-3301
FN: 0002249