BILL ANALYSIS �
SB 676
Page 1
SENATE THIRD READING
SB 676 (Block)
As Amended August 30, 2013
Majority vote
SENATE VOTE :39-0
BUSINESS & PROFESSIONS 13-0BANKING AND FINANCE 9-0
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|Ayes:|Gordon, Jones, Bocanegra, |Ayes:|Dickinson, Morrell, |
| |Campos, Dickinson, | |Achadjian, Chau, Gatto, |
| |Bonilla, Hagman, Holden, | |Harkey, Linder, Perea, |
| |Maienschein, Mullin, | |Weber |
| |Skinner, Ting, Wilk | | |
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APPROPRIATIONS 17-0
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|Ayes:|Gatto, Harkey, Bigelow, | | |
| |Bocanegra, Bradford, Ian | | |
| |Calderon, Campos, | | |
| |Donnelly, Eggman, Gomez, | | |
| |Hall, Holden, Linder, | | |
| |Pan, Quirk, Wagner, Weber | | |
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SUMMARY : Authorizes the Bureau of Real Estate (BRE) to suspend
or revoke a real estate license if the licensee knowingly
destroys, alters, conceals, mutilates, or falsifies any of the
books, accounts, or records that are required to be maintained
or are sought by the Commissioner of the BRE (Commissioner), as
specified. Specifically, this bill :
1)Authorizes BRE 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 by this section or
that have been sought in connection with an investigation,
audit, or examination of a real estate licensee by the
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Commissioner.
2)Clarifies that the Commissioner may maintain an action for the
recovery of the cost of an audit in any court of competent
jurisdiction.
3)Changes the Department of Real Estate to BRE.
EXISTING LAW :
1)Requires a licensed real estate broker to retain 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 for three years. (Business
and Professions Code (BPC) 10148(a))
2)Requires a licensed real estate broker, after receiving
notice, to make the books, accounts, and records available for
examination, inspection, and copying by the commissioner, or
his or her designated representative, during regular business
hours; specifies that upon the appearance of sufficient cause,
the broker shall be subject to audit without further notice,
except that the audit shall not be harassing in nature. (BPC
10148(a))
3)Authorizes the Commissioner to suspend or revoke the license
of a real estate licensee, delay the renewal of a license of a
real estate licensee, or deny the issuance of a license to an
applicant, for specified violations to the Real Estate Law.
(BPC 10175 et seq.)
FISCAL EFFECT : According to Assembly Appropriations Committee,
there are no significant costs associated with this legislation.
COMMENTS :
1)Purpose of this bill . This bill provides direct authorization
for BRE to suspend or revoke a real estate license if the
licensee knowingly destroys or alters any records that are
required to be maintained or are sought by the Commissioner.
Currently, BRE must first prove that the destruction or
alteration constitutes fraud or dishonest dealing before
revoking a license, which is difficult when the records to
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prove that fact have been altered or destroyed. This bill is
author sponsored.
2)Author's statement . According to the author, "SB 676
expressly codifies that knowingly destroying, altering,
concealing, mutilating, or falsifying records is a violation
of real estate law resulting in two important outcomes. This
legislation creates clear rules for real estate professionals
and authorizes the BRE to seek administrative disciplinary
action against licensees who willingly engage in these
dishonest actions."
1)Problems with existing law . Existing law requires a real
estate broker to maintain copies of all records connected with
real estate transactions for three years. Failure to do so is
a misdemeanor punishable by a fine not exceeding $10,000, or
by imprisonment in the county jail not exceeding six months,
or both. Presently, to revoke the real estate license of a
licensee who destroys or alters these records requires that
BRE prove that the act constitutes fraud or dishonest dealing.
Unfortunately, this is difficult when the records have been
destroyed or altered. This bill will allow BRE to take
administrative action directly.
Explicitly codifying the increased penalty for violating the
real estate record retention requirement strengthens the BRE's
ability to investigate records and punish wrongdoing. The
clarification of the risk to the broker's license may also act
as an additional deterrent to the crime.
Analysis Prepared by : Angela Pontes / B.,P. & C.P. / (916)
319-3301
FN: 0001976