BILL NUMBER: SB 676 CHAPTERED
BILL TEXT
CHAPTER 349
FILED WITH SECRETARY OF STATE SEPTEMBER 24, 2013
APPROVED BY GOVERNOR SEPTEMBER 24, 2013
PASSED THE SENATE SEPTEMBER 4, 2013
PASSED THE ASSEMBLY SEPTEMBER 3, 2013
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, 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 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 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, 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.
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 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.