BILL NUMBER: SB 676	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 30, 2013
	AMENDED IN SENATE  MAY 14, 2013
	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
  Real Estate 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, in addition, authorize the  Department
  Bureau  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,  accounts, or records    
papers, writings, documents, or tangible objects  that are
required to be maintained and provided pursuant to notice, as
described above  , or that have been sought in connection with an
investigation, audit, or examination, as specified  .
   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) The  department   bureau  may
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, 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.