BILL NUMBER: SB 676	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 6, 2013
	AMENDED IN SENATE  APRIL 22, 2013

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. 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.
   This bill would authorize the Department of Real Estate to suspend
or revoke the license of any real estate broker, real estate
salesperson, or  any director, officer, employee, agent, or
shareholder of any  corporation licensed as a real estate
broker,  who   if the real estate broker, real
estate salesperson, or any director, officer, employee, or agent of
the corporation licensed as a real estate broker  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
commissioner. The bill would exempt a violation of these provisions
from the criminal offense described above.
   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 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) (1) The department may suspend or revoke the license of any
real estate broker, real estate salesperson, or  any
director, officer, employee, agent, or shareholder of any 
corporation licensed as a real estate broker,  who 
 if the real estate broker, real estate salesperson, or any
director, officer, employee, or agent of the corporation licensed as
a real estate broker  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.
   (2) A violation of this subdivision shall not be subject to
Section 10185.