Amended in Senate April 22, 2013

Senate Bill No. 676

Introduced by Senator Block

February 22, 2013

An act to amend Section 10148 of the Business and Professions Code, relating to real estate.

LEGISLATIVE COUNSEL’S DIGEST

SB 676, as amended, Block. Real estate records: unlawful destruction.

Existing law requires a licensed real estate broker to retain for 3 years copies of all listings, deposit receipts, canceled checks, trust records, and other documents executed by him or her or obtained by him or her in connection with any transactions for which a real estate broker license is required. Existing law provides that after notice, the books, accounts, and records shall be made available for examination, inspection, and copying by the commissioner or his or her designated representative during regular business hours, and shall, upon the appearance of sufficient cause, be subject to audit without further notice, except that the audit shall not be harassing in nature. begin insert Existing law provides that any person who willfully violates or knowingly participates in the violation of these provisions is guilty of a misdemeanor with specified penalties. end insert

This bill would begin delete provide that end delete begin insert authorize the Department of Real Estate to suspend or revoke the license of end insert any real estate broker, real estate begin delete , end delete salesperson, or any director, officer, employee, agent, or shareholder of any corporation licensed as a real estate broker, who knowingly destroys, alters, conceals, mutilates, or falsifies any of the books, papers, writings, documents, or tangible objects that are required to be maintained or that have been sought in connection with an investigation, audit, or examination of a real estate licensee by the begin delete commissioner is guilty of a misdemeanor. end delete begin insert commissioner. The bill would exempt a violation of these provisions from the criminal offense described above. end insert

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By creating a new crime, this bill would impose a state-mandated local program.

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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.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete yes end delete begin insert no end insert .

The people of the State of California do enact as follows:

SECTION 1.  

Section 10148 of the Business and Professions
Code is amended to read:

10148.  

(a) A licensed real estate broker shall retain for three
years copies of all listings, deposit receipts, canceled checks, trust
records, and other documents executed by him or her or obtained
by him or her in connection with any transactions for which a real
estate broker license is required. The retention period shall run
from the date of the closing of the transaction or from the date of
the listing if the transaction is not consummated. After notice, the
books, accounts, and records shall be made available for
examination, inspection, and copying by the commissioner or his
or her designated representative during regular business hours;
and shall, upon the appearance of sufficient cause, be subject to
audit without further notice, except that the audit shall not be
harassing in nature.

(b) The commissioner shall charge a real estate broker for the
cost of any audit, if the commissioner has found, in a final desist
and refrain order issued under Section 10086 or in a final decision
following a disciplinary hearing held in accordance with Chapter
5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code that the broker has violated Section
10145 or a regulation or rule of the commissioner interpreting
Section 10145.

(c) If a broker fails to pay for the cost of an audit as described
in subdivision (b) within 60 days of mailing a notice of billing,
the commissioner may suspend or revoke the broker’s license or
deny renewal of the broker’s license. The suspension or denial
shall remain in effect until the cost is paid or until the broker’s
right to renew a license has expired.

(d) The commissioner may maintain an action for the recovery
of the cost of an audit in any court of competent jurisdiction. In
determining the cost incurred by the commissioner for an audit,
the commissioner may use the estimated average hourly cost for
all persons performing audits of real estate brokers.

(e)  begin delete Any end delete begin insert (1) end insert begin insert   end insert begin insert The department may suspend or revoke the license
of any end insert real estate broker, real estate begin delete , end delete salesperson, or any director,
officer, employee, agent, or shareholder of any corporation licensed
as a real estate broker, who knowingly destroys, alters, conceals,
mutilates, or falsifies any of the books, papers, writings, documents,
or tangible objects that are required to be maintained by this section
or that have been sought in connection with an investigation, audit,
or examination of a real estate licensee by the commissioner begin delete is
guilty of a misdemeanor end delete .

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(2) A violation of this subdivision shall not be subject to Section
10185.

end insert

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SEC. 2.  

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.

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