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 wouldbegin insert, in addition,end insert authorize the Department of Real Estate to suspend or revoke the license of any real estate broker, real estate salesperson, or corporation licensed as a real estate broker, 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,begin delete papers, writings, documents, or tangible objectsend deletebegin insert accounts, or recordsend insert that are required to be maintainedbegin delete 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.end deletebegin insert and provided pursuant to notice, as described above.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 10148 of the Business and Professions
2Code is amended to read:
(a) A licensed real estate broker shall retain for three
4years copies of all listings, deposit receipts, canceled checks, trust
5records, and other documents executed by him or her or obtained
6by him or her in connection with any transactions for which a real
7estate broker license is required. The retention period shall run
8from the date of the closing of the transaction or from the date of
9the listing if the transaction is not consummated. After notice, the
10books, accounts, and records shall be made available for
11examination, inspection, and copying by the commissioner or his
12or her designated representative during regular business hours;
13and shall, upon the appearance of sufficient cause, be subject to
14audit
without further notice, except that the audit shall not be
15harassing in nature.
16(b) The commissioner shall charge a real estate broker for the
17cost of any audit, if the commissioner has found, in a final desist
18and refrain order issued under Section 10086 or in a final decision
19following a disciplinary hearing held in accordance with Chapter
205 (commencing with Section 11500) of Part 1 of Division 3 of
21Title 2 of the Government Code that the broker has violated Section
2210145 or a regulation or rule of the commissioner interpreting
23Section 10145.
24(c) If a broker fails to pay for the cost of an audit as described
25in subdivision (b) within 60 days of mailing a notice of billing,
26the commissioner may suspend or revoke the broker’s license or
27deny renewal of the broker’s license. The
suspension or denial
P3 1shall remain in effect until the cost is paid or until the broker’s
2right to renew a license has expired.
3(d) The commissioner may maintain an action for the recovery
4of the cost of an audit in any court of competent jurisdiction. In
5determining the cost incurred by the commissioner for an audit,
6the commissioner may use the estimated average hourly cost for
7all persons performing audits of real estate brokers.
8(e) begin delete(1)end deletebegin delete end deleteThe department may suspend or revoke the license of
9any real estate broker, real estate salesperson, or corporation
10licensed as a real estate broker, if the real estate broker, real
estate
11salesperson, or any director, officer, employee, or agent of the
12corporation licensed as a real estate broker knowingly destroys,
13alters, conceals, mutilates, or falsifies any of the books, papers,
14writings, documents, or tangible objects that are required to be
15maintained by this section or that have been sought in connection
16with an investigation, audit, or examination of a real estate licensee
17by the commissioner.
18(2) A violation of this subdivision shall not be subject to Section
1910185.
O
96