California Legislature—2015–16 Regular Session

Assembly BillNo. 345

Introduced by Assembly Member Frazier

February 13, 2015

An act to amend Sections 10153.4 and 10170.5 of the Business and Professions Code, relating to real estate licensees.


AB 345, as introduced, Frazier. Real estate licensees: continuing education requirements.

The Real Estate Law provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner. The law requires a salesperson to be supervised by a responsible broker, as defined, and allows an employing broker or corporate designated broker officer to appoint a licensee as a manager of a branch office or division of a real estate business if specified requirements are met. The law requires a licensee to successfully complete 45 hours of continuing education as a prerequisite to license renewal, as specified.

This bill would require a licensee, as part of the licensee’s 45 hours of continuing education, to successfully complete a 3-hour course in the management of offices and supervision of licensed activities, as specified, and would also make related and conforming changes.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P1    1


Section 10153.4 of the Business and Professions
is amended to read:

P2    1


(a) This section shall apply to an application for the
2real estate salesperson license examination, the real estate
3salesperson license, and for both the examination and license
4received by the commissioner prior to October 1, 2007, if the
5applicant obtains a passing score on the real estate salesperson
6license examination and submits a license application prior to
7October 1, 2007.

8(b) Application for the real estate salesperson license
9examination pursuant to this section shall be made in writing to
10the commissioner. The commissioner may prescribe the format
11and content of the salesperson examination application. The
12application for the salesperson examination shall be accompanied
13by the real estate salesperson license examination fee.

14(c) An applicant under this section shall comply with the
15requirements of subdivision (c) of Section 10153.3 in order to take
16the real estate salesperson license examination.

17(d) An applicant under this section who obtains a passing score
18on the real estate salesperson license examination prior to October
191, 2007, shall, prior to the issuance of the real estate salesperson
20license, submit evidence or certification satisfactory to the
21commissioner of successful completion at an accredited institution
22of a three-semester unit course, or the quarter unit equivalent
23thereof, or successful completion of an equivalent course of study
24as defined in Section 10153.5, in real estate principles as described
25in subdivision (c) of Section 10153.3. An applicant for an original
26real estate salesperson license under this section shall also, prior
27to the issuance of the license, or within 18 months after issuance,
28submit evidence or certification satisfactory to the commissioner
29of successful completion at an accredited institution or a private
30vocational school, as specified in Section 10153.5, of a course in
31real estate practice and one additional course set forth in Section
3210153.2, other than real estate principles, real estate practice,
33advanced legal aspects of real estate, advanced real estate finance,
34or advanced real estate appraisal.

35(e) A salesperson who qualifies for a license pursuant to this
36section shall not be required for the first license renewal thereafter
37to complete the continuing education pursuant to Article 2.5
38(commencing with Section 10170), except for the courses specified
39in paragraphs (1) to (4), inclusive, of subdivision (a) of Section
4010170.5 or, on and after July 1, 2007, except for the courses
P3    1specified in paragraphs (1) tobegin delete (5),end deletebegin insert (6),end insert inclusive, of subdivision (a)
2of Section 10170.5.

3(f) The salesperson license issued to an applicant who has
4satisfied only the requirements of subdivision (c) at the time of
5issuance shall be automatically suspended effective 18 months
6after issuance if the licensee has failed to satisfy the requirements
7of subdivision (d). The suspension shall not be lifted until the
8suspended licensee has submitted the required evidence of course
9completion and the commissioner has given written notice to the
10licensee of the lifting of the suspension.

11(g) The original license issued to a salesperson shall clearly set
12forth the conditions of the license and shall be accompanied by a
13notice of the provisions of this section and of any regulations
14adopted by the commissioner to implement this section.

15(h) The commissioner shall waive the requirements of this
16section for any person who presents evidence of admission to the
17State Bar of California, and the commissioner shall waive the
18requirement for any course for which an applicant has completed
19an equivalent course of study as determined under Section 10153.5.


SEC. 2.  

Section 10170.5 of the Business and Professions Code
21 is amended to read:



(a) Except as otherwise provided in Sections 10153.4
23and 10170.8, no real estate license shall be renewed unless the
24commissioner finds that the applicant for license renewal has,
25during the four-year period preceding the renewal application,
26successfully completed the 45-clock hours of education provided
27for in Section 10170.4, including all of the following:

28(1) A three-hour course in ethics, professional conduct, and
29legal aspects of real estate, which shall include, but not be limited
30to, relevant legislation, regulations, articles, reports, studies, court
31decisions, treatises, and information of current interest.

32(2) A three-hour course in agency relationships and duties in a
33real estate brokerage practice, including instruction in the
34disclosures to be made and the confidences to be kept in the various
35agency relationships between licensees and the parties to real estate

37(3) A three-hour course in trust fund accounting and handling.

38(4) A three-hour course in fair housing.

39(5) A three-hour course in risk management that shall include,
40but need not be limited to, principles, practices, and procedures
P4    1calculated to avoid errors and omissions in the practice of real
2estate licensed activities.

begin insert

3(6) A three-hour course in the management of real estate offices
4and supervision of real estate licensed activities that shall include,
5but need not be limited to, the requirements described in
6subdivision (a) of Section 10159.7 and Section 10164 and the
7duties of a broker or salesperson acting under the reasonable
8supervision of a responsible broker or branch manager.

end insert
begin delete


end delete

10begin insert(7)end insert Not less than 18-clock hours of courses or programs related
11to consumer protection, and designated by the commissioner as
12satisfying this purpose in his or her approval of the offering of
13these courses or programs, which shall include, but not be limited
14to, forms of real estate financing relevant to serving consumers in
15the marketplace, land use regulation and control, pertinent
16 consumer disclosures, agency relationships, capital formation for
17real estate development, fair practices in real estate, appraisal and
18valuation techniques, landlord-tenant relationships, energy
19conservation, environmental regulation and consideration, taxation
20as it relates to consumer decisions in real estate transactions,
21probate and similar disposition of real property, governmental
22programs such as revenue bond activities, redevelopment, and
23related programs, business opportunities, mineral, oil, and gas
24conveyancing, and California law that relates to managing
25community associations that own, operate, and maintain property
26within common interest developments, including, but not limited
27to, management, maintenance, and financial matters addressed in
28the Davis-Stirling Common Interest Developmentbegin delete Act.end deletebegin insert Act (Part
295 (commencing with Section 4000) of Division 4 of the Civil Code).end insert

begin delete


end delete

31begin insert(8)end insert Other courses and programs that will enable a licensee to
32achieve a high level of competence in serving the objectives of
33consumers who may engage the services of licensees to secure the
34transfer, financing, or similar objectives with respect to real
35property, including organizational and management techniques
36that will significantly contribute to this goal.

37(b) Except as otherwise provided in Section 10170.8, no real
38estate license shall be renewed for a licensee who already has
39renewed under subdivision (a), unless the commissioner finds that
40the applicant for license renewal has, during the four-year period
P5    1preceding the renewal application, successfully completed the
245-clock hours of education provided for in Section 10170.4,
3including an eight-hour update survey course that covers the subject
4areas specified in paragraphs (1) tobegin delete (5),end deletebegin insert (6),end insert inclusive, of
5subdivision (a).

6(c) Any denial of a license pursuant to this section shall be
7subject to Section 10100.

8(d) For purposes of this section, “successful completion” of a
9course described in paragraphs (1) tobegin delete (5),end deletebegin insert (6),end insert inclusive, of
10subdivision (a) means the passing of a final examination.