BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 706|
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UNFINISHED BUSINESS
Bill No: SB 706
Author: Price (D)
Amended: 8/26/11
Vote: 21
SENATE BUS., PROF. & ECON. DEVEL. COMMITTEE : 7-2, 5/2/11
AYES: Price, Emmerson, Corbett, Correa, Hernandez, Negrete
McLeod, Vargas
NOES: Walters, Wyland
SENATE APPROPRIATIONS COMMITTEE : 6-2, 5/26/11
AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
NOES: Walters, Runner
NO VOTE RECORDED: Emmerson
SENATE FLOOR : 22-12, 6/1/11
AYES: Alquist, Calderon, Corbett, Correa, De León,
DeSaulnier, Evans, Hancock, Hernandez, Kehoe, Leno, Lieu,
Liu, Lowenthal, Negrete McLeod, Pavley, Price, Simitian,
Steinberg, Vargas, Wright, Yee
NOES: Anderson, Blakeslee, Cannella, Dutton, Fuller,
Gaines, Harman, Huff, La Malfa, Strickland, Walters,
Wyland
NO VOTE RECORDED: Berryhill, Emmerson, Padilla, Rubio,
Runner, Wolk
ASSEMBLY FLOOR : 53-26, 9/8/11 - See last page for vote
SUBJECT : Business and Professions
SOURCE : Author
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DIGEST : This bill makes numerous enforcement
enhancements to the Department of Real Estate and the
Office of Real Estate Appraisers; requires licensing boards
to post information about licensees on the Internet, as
specified; and makes updating and conforming changes.
Assembly Amendments revise and recast the bill with similar
intent as it left the Senate.
ANALYSIS :
Existing law :
1. Provides for the licensure, and regulation of more than
483,000 real estate brokers, real estate salespersons,
and more than 22,000 mortgage loan originator license
endorsements by Department of Real Estate (DRE) in the
Business, Transportation and Housing Agency (BT&H). The
Real Estate Commissioner (Commissioner), who serves as
the chief executive of DRE, is appointed by the
Governor, subject to Senate confirmation. The
Commissioner is mandated to enforce the Real Estate Law.
2. Provides for the licensure and regulation of more than
13,800 real estate appraisers, and the certification of
more than 200 appraisal management companies (AMCs) by
OREA within BT&H. The Director of OREA (Director)
serves as the chief executive of OREA, and is appointed
by the Governor, subject to Senate confirmation. The
Director is mandated to enforce the Real Estate
Appraisers Licensing and Certification Law.
3. Requires specified boards within the Department of
Consumer Affairs (DCA) to disclose on the Internet
information on their respective licensees, including
information on the status of every license, suspensions
and revocations of licenses issued and other related
enforcement actions.
This bill:
1. Requires the California Board of Accountancy; the
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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 DCA and the BCE
shall comply with DCA guidelines for access to public
records.
3. Authorizes an administrative law judge to order a
licensee in a disciplinary proceeding to pay, upon
request of the 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
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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 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
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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 : Appropriation: No Fiscal Com.: Yes
Local: No
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; and (2) workload
costs for DRE and OREA are minor and absorbable within
existing resources.
ASSEMBLY FLOOR : 53-26, 9/8/11
AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block,
Blumenfield, Bonilla, Bradford, Brownley, Buchanan,
Butler, Charles Calderon, Campos, Carter, Cedillo,
Chesbro, Davis, Dickinson, Eng, Feuer, Fong, Fuentes,
Furutani, Galgiani, Gatto, Gordon, Hall, Hayashi, Roger
Hernández, Hill, Huber, Hueso, Huffman, Lara, Bonnie
Lowenthal, Ma, Mendoza, Mitchell, Monning, Norby, Pan,
Perea, V. Manuel Pérez, Portantino, Skinner, Solorio,
Swanson, Torres, Wieckowski, Williams, Yamada, John A.
Pérez
NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly,
Fletcher, Beth Gaines, Garrick, Grove, Hagman, Halderman,
Harkey, Jeffries, Jones, Knight, Logue, Mansoor, Miller,
Morrell, Nestande, Nielsen, Olsen, Silva, Smyth, Valadao,
Wagner
NO VOTE RECORDED: Gorell
JJA:do 9/9/11 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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