BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2540|
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CONSENT
Bill No: AB 2540
Author: Dababneh (D)
Amended: 8/5/14 in Senate
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEVELOP. COMM. : 8-0, 6/23/14
AYES: Lieu, Wyland, Berryhill, Corbett, Galgiani, Hernandez,
Hill, Torres
NO VOTE RECORDED: Block
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 78-0, 5/15/14 (Consent) - See last page for
vote
SUBJECT : Real estate licenses
SOURCE : California Association of Realtors
DIGEST : This bill requires real estate brokers and real
estate salespersons to supply the Bureau of Real Estate (BRE)
with valid contact information, including a current mailing
address, electronic mail address, and telephone number, as part
of their examination and license applications and to inform BRE
of any change in the broker or salesperson's contact information
within 30 days.
ANALYSIS :
Existing law:
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1.Licenses and regulates real estate brokers, real estate
salespersons, and mortgage loan originator license
endorsements by BRE in the Department of Consumer Affairs
(DCA).
2.Pursuant to the Governor's Reorganization Plan No. 2 of 2012
(GRP 2), reorganized, revised, consolidated and eliminated
numerous entities of California state government, including
transferring the regulation of real estate licensees,
effective July 1, 2013, from the Department of Real Estate
within the Business, Transportation and Housing Agency to BRE.
3.Requires an application for a real estate broker license
examination, and an application for a real estate broker
license to be made in writing and accompanied by the specified
fee.
4.Requires an application for a real estate salesperson license
examination to be made in writing and accompanied by the
specified fee.
5.Requires each real estate broker to maintain a place of
business in California which serves as an office for the
transaction of business, and where the license is displayed
and personal consultations with clients are held.
6.Authorizes BRE to take disciplinary action to suspend or
revoke a real estate licensee, as specified.
7.Authorizes BRE to issue a citation or a citation and fine, as
specified, to a real estate licensee found to have violated
the Real Estate Law.
8.Makes willful violation of the Real Estate Law a misdemeanor
(crime).
This bill:
1.Requires an applicant for a real estate broker license
examination or a real estate broker license to also include on
the application, valid contact information at which BRE may
contact the applicant.
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2.Requires an applicant for a real estate salesperson license
examination to also include on the application, valid contact
information at which BRE may contact the applicant.
3.Clarifies that BRE may prescribe the format and content of the
real estate salesperson license application, and requires the
application to include valid contact information where BRE may
contact the applicant.
4.Modifies the requirement for a real estate broker to maintain
an office from which to transact business to further specify:
A. Each real estate broker and salesperson must provide BRE
his/her current office or mailing address, a current
telephone number, and a current electronic mail address
that is maintained or used to conduct real estate business,
and where BRE may contact the licensee.
B. Each real estate broker and salesperson must inform BRE
of any change in office or mailing address, telephone
number, or electronic mail address no later than 30 days
after making the change.
C. Violations of these provisions are not punishable as
misdemeanors.
1.Specifies that BRE is not required to post or publish
electronic mail address or telephone numbers collected
pursuant to this bill, and if released by BRE, the information
shall be released in a way that discourages its use in
unauthorized or unsolicited commercial electronic mail
advertisement programs.
2.Makes technical, updating and conforming changes.
Comments
The author's office states that existing law requires real
estate licensees to provide a valid business or mailing address
to BRE. However, the law is currently silent on allowing BRE to
collect contact information in addition to mailing addresses,
such as e-mail addresses and telephone numbers. The author's
office indicates that due to state budget constraints, BRE no
longer mails out its newsletter, the Real Estate Bulletin to the
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over 400,000 licensees. Instead, BRE posts the Bulletin on its
Web site and e-mails the Real Estate Bulletin to the few who
have subscribed to BRE's "News Flash" RSS (Really Simple
Syndication) feed. Moreover, the author's office states,
without a requirement for maintaining a valid telephone number,
communication to address simple issues that can be handled with
a telephone call must instead be handled by mail.
This bill addresses these issues by requiring applicants for
broker licenses or salesperson licenses or licensees renewing
license to provide BRE with a current office or mailing address,
telephone number, and an e-mail address, and to inform BRE
within any 30 days of any change of address, e-mail address or
phone number.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/5/14)
California Association of Realtors (source)
ARGUMENTS IN SUPPORT : In sponsoring this bill, the California
Association of Realtors (CAR) writes that BRE does not have the
legislative authority to require licensees to provide and
maintain valid e-mail addresses and telephone numbers. Thus,
all communications are handled by mail. CAR states that
collection of e-mail addresses and phone numbers would enable
BRE to communicate more time and cost effectively with
licensees. Additionally, licensees will benefit from up-to-date
knowledge of any notices, warnings or other relevant information
essential to licensing and business practices, according to CAR.
ASSEMBLY FLOOR : 78-0, 5/15/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández,
Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian,
Nestande, Olsen, Pan, Patterson, Perea, John A. Pérez, V.
Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,
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Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,
Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Mansoor, Vacancy
MW:nl 8/5/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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