BILL NUMBER: AB 2018 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 9, 2014
AMENDED IN SENATE JUNE 2, 2014
AMENDED IN ASSEMBLY APRIL 21, 2014
AMENDED IN ASSEMBLY APRIL 10, 2014
INTRODUCED BY Assembly Member Bocanegra
FEBRUARY 20, 2014
An act to amend Section Sections
10159.5 and 10165 of, and to add Sections 10159.6 and
10159.7 to, the Business and Professions Code, relating to real
estate licensees.
LEGISLATIVE COUNSEL'S DIGEST
AB 2018, as amended, Bocanegra. Real estate licensees: fictitious
business names.
Existing law , the violation of which is a misdemeanor,
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.
Under existing law, any violation of these provisions is a
misdemeanor. Existing law also authorizes the commissioner to
temporarily suspend or permanently revoke the license of a real
estate licensee for violation of any specified provisions, including,
but not limited to, a requirement that a real estate
broker immediately notify the commissioner when he or she employs, or
terminates the employment of, a real estate salesperson.
This bill would authorize a supervising broker, as defined, by
contract, to permit a salesperson to apply 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 and provide, for purposes of the provisions
described above, that a team name is not a fictitious business name
if the name is used by two or more real estate licensees, the name
includes a licensee's surname in conjunction with the term
"associates," "group," or "team," and the 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, to include certain identifying information. Because
any violation of these provisions would be a misdemeanor, the bill
would impose 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.
This bill would provide that a violation of the provisions
described above is not a misdemeanor, and would instead expand the
commissioner's authority to temporarily suspend or permanently revoke
the license of a licensee for a violation of these provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 10159.5 of the Business and Professions Code is
amended to read:
10159.5. (a) Every person applying for a license under this
chapter who desires to have the license issued under a fictitious
business name shall file with his or her application a certified copy
of his or her fictitious business name statement filed with the
county clerk pursuant to Chapter 5 (commencing with Section 17900) of
Part 3 of Division 7.
(1) A supervising broker may, by contract, permit a salesperson to
do all of the following:
(A) File an application with a county clerk to obtain a fictitious
business name.
(B) Deliver to the bureau an application, signed by the
supervising broker, requesting the bureau's approval to use a county
approved fictitious business name that shall be identified with the
broker's license number.
(C) Pay for any fees associated with filing an application with a
county or the bureau to obtain or use a fictitious business name.
(D) Maintain ownership of a fictitious business name, as defined
in paragraph (4) of subdivision (a) of Section 10159.7, that may be
used subject to the control of a supervising broker.
(b) (1) A salesperson using a fictitious business name authorized
by subdivision (a), shall use that name only as permitted by his or
her supervising broker.
(2) This section does not change a real estate broker's duties
under this division to supervise a salesperson.
(c) A person applying to a county for a fictitious business name
pursuant to subdivision (a) may file his or her application in the
county or counties where the fictitious business name will be used.
(d) Marketing materials, including print or electronic media and
"for sale" signage, using a fictitious business name obtained in
accordance with subdivision (a) shall include the supervising broker'
s identity in a manner equally as prominent as the fictitious
business name.
(e) Notwithstanding subdivision (b) of Section 10140.6,
advertising, including print or electronic media and "for sale"
signage, containing a fictitious business name obtained in accordance
with subdivision (a) shall include the salesperson's name and
license number.
(f) Notwithstanding Section 10185, a violation of this Section is
not a misdemeanor and shall be enforced pursuant to Section 10165.
SEC. 2. Section 10159.6 is added to the Business and Professions
Code, to read:
10159.6. All of the following apply to use of a team name, as
defined in subdivision (c) of Section 10159.7:
(a) Notwithstanding subdivision (b) of Section 10140.6,
advertising that contains a team name, including print or electronic
media and "for sale" signage, shall include the licensee's name and
license number.
(b) The supervising broker's identity shall be displayed as
prominently as the team name in all advertising.
(c) The advertising material shall not contain terms that imply
the existence of a real estate entity independent of the supervising
broker.
(d) Notwithstanding Section 10185, a violation of this Section is
not a misdemeanor and shall be enforced pursuant to Section 10165.
SEC. 3. Section 10159.7 is added to the Business and Professions
Code, to read:
10159.7. (a) For the purposes of this article, the following
definitions shall apply:
(1) "Fictitious business name" means a professional identity or
brand name under which activity requiring a real estate license is
conducted and the use of which is subject to approval by the bureau
pursuant to Section 10159.5.
(2) "Ownership of a fictitious business name" means the right to
use, renew, and control the use of a fictitious business name
obtained in accordance with Section 10159.5.
(3) "Supervising broker" means a corporate designated officer
responsible for the exercise of control of corporate activities under
Section 10159.2, or a licensee subject to discipline under
subdivision (h) of Section 10177 for failure to supervise activity
requiring a real estate license. The supervision of a salesperson
required under this part is limited to regulatory compliance and
consumer protection.
(4) "Team name" means a professional identity or brand name used
by a salesperson or broker associate. A team name does not constitute
a fictitious business name if all of the following apply:
(A) The name is used by two or more real estate licensees.
(B) The name includes a licensee's surname in conjunction with the
term "associates," "group," or "team."
(C) The name does not include terms that imply the existence of a
real estate entity independent of a supervising broker.
(b) Nothing in this section changes a real estate broker's duties
under this division to supervise a salesperson.
SEC. 4. 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.
SEC. 4. Section 10165 of the
Business and Professions Code is amended to read:
10165. For a violation of any of the provisions of Section
10159.5, 10159.6, 10160, 10161.8, 10162, or 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.