BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 269
                                                                  Page  1

          Date of Hearing:   July 3, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     SB 269 (Hill) - As Amended:  June 27, 2013 

          Policy Committee:                             Business and  
          Professions  Vote:                            12 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill phases out the prepaid rental listing services (PRLS)  
          license under the Department of Real Estate (DRE) by January 1,  
          2015, and instead requires a provider of PRLS to hold a valid  
          real estate broker's license and to provide prospective clients  
          with a written notice of the consumer's rights before accepting  
          payment.   

           FISCAL EFFECT  

          Costs associated with this legislation should be minor and  
          absorbable within existing DRE resources. 

           COMMENTS  

           1)Purpose  .  This bill is intended to improve consumer protection  
            in the rental housing market by eliminating a separate class  
            of license that allows individuals to provide PRLS without  
            having a real estate license, and by mandating the provision  
            of a written notice of consumer rights to prospective clients.  
             This bill was motivated by allegations of fraud and abuse by  
            some PRLS companies.  

            According to the author, the high demand for rental properties  
            has created a market ripe for prepaid rental listing service  
            scams.  In recent months, the author notes, there have been  
            press reports in various regions of the state, documenting  
            some of the abuses, and DRE has issued a Consumer Fraud Alert  
            and Warning, hoping to encourage consumers to check out their  
            rental list providers, before paying for services. This bill  
            eliminates the PRLS-only license, and requires people to have  








                                                                 SB 269
                                                                  Page  2

            a real estate salesperson or real estate broker license in  
            order to offer prepaid rental listing services.

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081