BILL NUMBER: AB 2169	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Cooley
   (Principal coauthor: Assembly Member Bonilla)

                        FEBRUARY 20, 2014

   An act to amend Section 10032 of the Business and Professions
Code, relating to real estate.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2169, as introduced, Cooley. Business and professions.
   Existing law, the Real Estate Law, governs the licensure and
regulation of real estate salespersons and real estate brokers.
Existing law requires all obligations under the Real Estate Law, all
regulations issued by the Real Estate Commissioner relating to real
estate salespersons, and all other obligations of brokers and real
estate salespersons to members of the public to apply regardless of
whether the real estate salespersons and the broker to whom he or she
is licensed have characterized their relationship as one of
"independent contractor" or of "employer and employee."
   Existing law authorizes a real estate broker and a real estate
salesperson licensed under that broker to contract between themselves
as independent contractors or as an employer and employee, for the
purposes of their legal relationship with, and obligations to, each
other. Under existing law, the characterization of a relationship as
either "employer and employee" or "independent contractor" for
purposes, including, but not limited to, withholding taxes on wages
and unemployment compensation is governed by certain specified
provisions of law. Existing uncodified law prohibits the above
provisions from being interpreted or applied to affect existing
obligations of a real estate broker regarding liability or workers
compensation insurance or from altering existing case law.
   This bill instead would require the contractual characterization
of a relationship of a real estate broker and a real estate
salesperson licensed under that broker as either "employer and
employee" or "independent contractor" to be conclusive, except as
provided, for all purposes, including, but not limited to,
withholding taxes on wages, unemployment compensation, and all other
statutory, regulatory, common law, and contractual purposes, if
certain statutory requirements are satisfied.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 10032 of the Business and Professions Code is
amended to read:
   10032.  (a) All obligations created under Section 10000, and
following, all regulations issued by the commissioner relating to
real estate salespersons, and all other obligations of brokers and
real estate salespersons to members of the public shall apply
regardless of whether the real estate salesperson and the broker to
whom he or she is licensed have characterized their relationship as
one of "independent contractor" or of "employer and employee."
   (b) A real estate broker and a real estate salesperson licensed
under that broker may contract between themselves as independent
contractors or as employer and employee , for purposes of
their legal relationship with and obligations to each other 
.  Characterization   Except as provided in
subdivision (a) and for purposes of workers compensation, the
contractual characterization  of a relationship as either
"employer and employee" or "independent contractor"  shall be
conclusive  for  statutory   all 
purposes, including, but not limited to, withholding taxes on wages
 and for purposes of   ,  unemployment
compensation,  shall be governed by   and all
other statutory, regulatory, common law, and contractual purposes, if
the requirements of  Section 650 and Sections 13000 to 13054,
inclusive, of the Unemployment Insurance Code  are met  .
For purposes of workers compensation the characterization of the
relationship shall be governed by Section 3200, and following, of the
Labor Code.