AB 2018, as amended, Bocanegra. Real estate licensees: fictitious business names.
Existing lawbegin insert, the violation of which is a misdemeanor,end insert provides for the licensure and regulation of real estate brokers and real estate salespersons by the Bureau of Real Estate headed by the Real Estate Commissioner. Existing law requires an applicant who desires to have his or her license issued under a fictitious business name to file with his or her application a certified copy of his or her fictitious business name statement.
This bill wouldbegin insert authorize a supervising broker, as defined, by contract, to permit a salesperson to applyend insertbegin insert for a
fictitious business name with the appropriate county and the bureau, to be identified with that supervising broker’s license number, and to maintain ownership of a fictitious business name, as defined. The bill would define a team name andend insert provide, for purposes of the provisions described above, that abegin delete businessend deletebegin insert teamend insert name is not a fictitious business name if the name is used by two or more real estate licensees, the name includesbegin delete one or more first and last names or surnamesend deletebegin insert a licensee’s surnameend insert in conjunction with the term “associates,” “group,” or “team,” and thebegin delete licenseesend deletebegin insert
name does not include terms that imply the existence of a real estate entity independent of a supervising broker. The bill would require advertising that contains a team name, including print or electronic media and “for sale” signage, toend insert include certain identifyingbegin delete information on marketing and advertising materials, “for sale” signage, and solicitation materials intended to be the first point of contact with consumers.end deletebegin insert information. Because any violation of these provisions would be a misdemeanor, the bill would impose a state-mandated local program.end insert
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.
end insertbegin insertThis bill would provide that no reimbursement is required by this act for a specified reason.
end insertVote: majority.
Appropriation: no.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: begin deleteno end deletebegin insertyesend insert.
The people of the State of California do enact as follows:
Section 10159.5 of the Business and Professions
2Code is amended to read:
(a) Every person applying for a license under this
4chapter who desires to have the license issued under a fictitious
5business name shall file with his or her application a certified copy
6of his or her fictitious business name statement filed with the
7county clerk pursuant to Chapter 5 (commencing with Section
817900) of Part 3 of Division 7.
9(b) For purposes of this section, a business name is not a
10fictitious business name if all of the following conditions are
11satisfied:
12(1) The name is used by two or more real estate licensees.
13(2) The name includes one or more first and last names or
14surnames in conjunction with the term “associates,” “group,” or
15“team.”
16(3) The licensees include all of the following information on
17all marketing
and advertising materials in print or electronic media,
18“for sale” signage, and solicitation materials intended to be the
P3 1first point of contact with consumers, as defined in paragraph (2)
2of subdivision (b) of Section 10140.6:
3(A) Name or surname.
4(B) License number.
5(C) Name of the employing broker, which shall be equally
6prominent as the first and last names or surnames used in
7conjunction with the term “associates,” “group,” or “team.”
8(c) Nothing
in this section shall be construed to limit or change
9a real estate broker’s duties to supervise a salesperson under this
10division.
11(d) A business name using the term “associates,” “group,” or
12“team,” means an association of two or more real estate licensees.
13(1) A supervising broker may, by contract, permit a salesperson
14to do all of the following:
15(A) File an application with a county clerk to obtain a fictitious
16business name.
17(B) Deliver to the bureau an application, signed by the
18supervising broker, requesting the bureau’s approval to use a
19county approved fictitious business name that shall be identified
20with the broker’s license number.
21(C) Pay for any fees associated with filing an application with
22a county or the bureau to obtain or use a fictitious business name.
23(D) Maintain ownership of a fictitious business name, as defined
24in paragraph (4) of subdivision (a) of Section 10159.7, that may
25be used subject to the control of a supervising broker.
26(b) (1) A salesperson using a fictitious business name authorized
27by subdivision (a), shall use that name only as permitted by his or
28her supervising broker.
29(2) This section does not change a real estate broker’s duties
30under this division to supervise a salesperson.
31(c) A person applying to a county for a fictitious business name
32pursuant to subdivision (a) may file his or her application in the
33county or counties where the fictitious business name will be used.
34(d) Marketing materials, including print or electronic media
35and “for sale” signage, using a fictitious business name obtained
36in accordance with subdivision (a) shall include the supervising
37broker’s identity in a manner equally as prominent as the fictitious
38business name.
39(e) Notwithstanding subdivision (b) of Section 10140.6,
40advertising, including print or electronic media and “for sale”
P4 1signage, containing a fictitious business name obtained in
2accordance with subdivision (a) shall include the salesperson’s
3name and license number.
begin insertSection 10159.6 is added to the end insertbegin insertBusiness and
5Professions Codeend insertbegin insert, to read:end insert
All of the following apply to use of a team name, as
7defined in subdivision (c) of Section 10159.7:
8(a) Notwithstanding subdivision (b) of Section 10140.6,
9advertising that contains a team name, including print or electronic
10media and “for sale” signage, shall include the licensee’s name
11and license number.
12(b) The supervising broker’s identity shall be displayed as
13prominently as the team name in all advertising.
14(c) The advertising material shall not contain terms that imply
15the existence of a real estate entity independent of the supervising
16broker.
begin insertSection 10159.7 is added to the end insertbegin insertBusiness and
18Professions Codeend insertbegin insert, to read:end insert
(a) For the purposes of this article, the following
20definitions shall apply:
21(1) “Fictitious business name” means a professional identity
22or brand name under which activity requiring a real estate license
23is conducted and the use of which is subject to approval by the
24bureau pursuant to Section 10159.5.
25(2) “Ownership of a fictitious business name” means the right
26to use, renew, and control the use of a fictitious business name
27obtained in accordance with Section 10159.5.
28(3) “Supervising broker” means a corporate designated officer
29responsible for the exercise of control of corporate activities under
30Section
10159.2, or a licensee subject to discipline under
31subdivision (h) of Section 10177 for failure to supervise activity
32requiring a real estate license. The supervision of a salesperson
33required under this part is limited to regulatory compliance and
34consumer protection.
35(4) “Team name” means a professional identity or brand name
36used by a salesperson or broker associate. A team name does not
37constitute a fictitious business name if all of the following apply:
38(A) The name is used by two or more real estate licensees.
39(B) The name includes a licensee’s surname in conjunction with
40the term “associates,” “group,” or “team.”
P5 1(C) The name does not include terms that imply the existence
2of a real estate entity independent of a supervising broker.
3(b) Nothing in this section changes a real estate broker’s duties
4under this division to supervise a salesperson.
No reimbursement is required by this act pursuant to
6Section 6 of Article XIII B of the California Constitution because
7the only costs that may be incurred by a local agency or school
8district will be incurred because this act creates a new crime or
9infraction, eliminates a crime or infraction, or changes the penalty
10for a crime or infraction, within the meaning of Section 17556 of
11the Government Code, or changes the definition of a crime within
12the meaning of Section 6 of Article XIII B of the California
13Constitution.
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