BILL ANALYSIS �
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THIRD READING
Bill No: SB 676
Author: Block (D)
Amended: 5/14/13
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEV. COMM. : 10-0, 4/8/13
AYES: Price, Emmerson, Block, Corbett, Galgiani, Hernandez,
Hill, Padilla, Wyland, Yee
SENATE BUSINESS, PROF. & ECON. DEV. COMM. : 10-0, 4/29/13
AYES: Price, Emmerson, Block, Corbett, Galgiani, Hernandez,
Hill, Padilla, Wyland, Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
NOTE: The Senate Business, Professions and Economic
Development Committee passed this bill on April 8, 2013
by a 10-0 vote. It was then re-referred to the Senate
Rules Committee and subsequently referred to the Senate
Public Safety Committee. This bill was withdrawn from
the Senate Public Safety Committee based on author's
amendments which removed the misdemeanor violation and
was re-referred back to the Senate Business, Professions
and Economic Development Committee on April 24, 2013.
SUBJECT : Real estate records: unlawful destruction
SOURCE : Author
DIGEST : This bill authorizes the Department of Real Estate
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(DRE) 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 that are required to be maintained and
provided pursuant to notice, as specified.
ANALYSIS :
Existing law:
1. Requires a real estate broker to retain for three years
copies of all listings, deposit receipts, canceled checks,
trust records, and other documents executed or obtained by
the broker in connection with any transactions for which a
real estate broker license is required. Requires a broker,
after receiving notice, to make available for examination,
inspection, and copying by the Commissioner or the
Commissioner's designee, during regular business hours, all
requested records the broker is legally required to retain.
States that after an initial inspection of retained records,
and upon the appearance of sufficient cause, a broker is
subject to audit without further notice, so long as the audit
is not harassing. (Business and Professions Code (BPC)
Section 10148)
2. States that any person who willfully violates or knowingly
participates in the violation of a provision of the Real
Estate Division of the BPC is guilty of a misdemeanor. (BPC
Section 10185)
3. Gives the Commissioner authority to investigate licensees,
bring administrative actions against licensees, and in some
circumstances suspend or revoke a real estate licensee.
This bill states that DRE 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, accounts, or records that are required to be
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maintained and provided pursuant to notice, as specified.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/20/13)
California Association of Realtors
ARGUMENTS IN SUPPORT : The California Association of Realtors
states that it hopes that clarifying the linkage between the
professional obligations related to recordkeeping and the
potential prosecution for violating those requirements will
raise the quality of practice, to the benefit of consumers and
other licensees.
MW:k 5/20/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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