BILL NUMBER: AB 2018 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 6, 2014
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 Sections Section
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 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
responsible 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 responsible 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 any term or terms that imply or
suggest the existence of a real estate entity independent of a
supervising responsible 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 in a conspicuous manner .
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 misdemeanor .
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: 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 responsible broker
may, by contract, permit a salesperson to do all of the following:
(A) File an application on behalf of a responsible broker
with a county clerk to obtain a fictitious business name.
(B) Deliver to the bureau an application, signed by the
supervising responsible 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) (2) of subdivision (a)
of Section 10159.7, that may be used subject to the control of a
supervising responsible 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 responsible 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 and solicitation materials, including
business cards, print or electronic media and "for sale"
signage, using a fictitious business name obtained in accordance with
subdivision (a) shall include the supervising
responsible 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 section is not a misdemeanor
and shall be enforced pursuant to Section 10165
misdemeanor .
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 paragraph (5) of subdivision (c)
(a) 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 in all advertising, and shall be
displayed in a conspicuous manner .
(b) The supervising responsible
broker's identity shall be displayed as prominently and
conspicuously 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 responsible broker.
(d) Notwithstanding Section 10185, a violation of this
Section section is not a misdemeanor
and shall be enforced pursuant to Section 10165
misdemeanor .
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) "Broker identity" means the name under which the broker
operates or conducts business and may include a sole proprietorship
or business entity name.
(2) "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)
( 3) "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
(4) "Responsible broker" means
a corporate designated officer the broker
responsible for the exercise of control of corporate
activities and supervision of salespersons 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)
( 5) "Team name" means a professional
identity or brand name used by a salesperson or broker
associate salesperson, and one or more other real
estate licensees, for the provision of real estate licensed services.
Notwithstanding any other law, the use of a team name does not
require that a separate license be issued for that name pursuant to
Section 10159.5 . A team name does not constitute a fictitious
business name if for purposes of this part
all of the following apply:
(A) The name is used by two or more real estate licensees who
work together to provide licensed real estate services, or who
represent themselves to the public as being a part of a
team, group, or association to provide those services .
(B) The name includes a licensee's the
surname of at least one of the licensee members of the
team, group, or association in conjunction with the term
"associates," "group," or "team."
(C) The name does not include terms any
term or terms, such as "real estate broker," "real estate brokerage,"
"broker," or "brokerage" or any other term that would lead a member
of the public to believe that the team is offering real
estate brokerage services, that imply or suggest the
existence of a real estate entity independent of a
supervising responsible broker.
(b) Nothing in this section changes a real estate broker's duties
under this division to supervise a salesperson.
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.