BILL NUMBER: AB 345	INTRODUCED
	BILL TEXT


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.


	LEGISLATIVE COUNSEL'S DIGEST


   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:

  SECTION 1.  Section 10153.4 of the Business and Professions Code is
amended to read:
   10153.4.  (a) This section shall apply to an application for the
real estate salesperson license examination, the real estate
salesperson license, and for both the examination and license
received by the commissioner prior to October 1, 2007, if the
applicant obtains a passing score on the real estate salesperson
license examination and submits a license application prior to
October 1, 2007.
   (b) Application for the real estate salesperson license
examination pursuant to this section shall be made in writing to the
commissioner. The commissioner may prescribe the format and content
of the salesperson examination application. The application for the
salesperson examination shall be accompanied by the real estate
salesperson license examination fee.
   (c) An applicant under this section shall comply with the
requirements of subdivision (c) of Section 10153.3 in order to take
the real estate salesperson license examination.
   (d) An applicant under this section who obtains a passing score on
the real estate salesperson license examination prior to October 1,
2007, shall, prior to the issuance of the real estate salesperson
license, submit evidence or certification satisfactory to the
commissioner of successful completion at an accredited institution of
a three-semester unit course, or the quarter unit equivalent
thereof, or successful completion of an equivalent course of study as
defined in Section 10153.5, in real estate principles as described
in subdivision (c) of Section 10153.3. An applicant for an original
real estate salesperson license under this section shall also, prior
to the issuance of the license, or within 18 months after issuance,
submit evidence or certification satisfactory to the commissioner of
successful completion at an accredited institution or a private
vocational school, as specified in Section 10153.5, of a course in
real estate practice and one additional course set forth in Section
10153.2, other than real estate principles, real estate practice,
advanced legal aspects of real estate, advanced real estate finance,
or advanced real estate appraisal.
   (e) A salesperson who qualifies for a license pursuant to this
section shall not be required for the first license renewal
thereafter to complete the continuing education pursuant to Article
2.5 (commencing with Section 10170), except for the courses specified
in paragraphs (1) to (4), inclusive, of subdivision (a) of Section
10170.5 or, on and after July 1, 2007, except for the courses
specified in paragraphs (1) to  (5),   (6),
 inclusive, of subdivision (a) of Section 10170.5.
   (f) The salesperson license issued to an applicant who has
satisfied only the requirements of subdivision (c) at the time of
issuance shall be automatically suspended effective 18 months after
issuance if the licensee has failed to satisfy the requirements of
subdivision (d). The suspension shall not be lifted until the
suspended licensee has submitted the required evidence of course
completion and the commissioner has given written notice to the
licensee of the lifting of the suspension.
   (g) The original license issued to a salesperson shall clearly set
forth the conditions of the license and shall be accompanied by a
notice of the provisions of this section and of any regulations
adopted by the commissioner to implement this section.
   (h) The commissioner shall waive the requirements of this section
for any person who presents evidence of admission to the State Bar of
California, and the commissioner shall waive the requirement for any
course for which an applicant has completed an equivalent course of
study as determined under Section 10153.5.
  SEC. 2.  Section 10170.5 of the Business and Professions Code is
amended to read:
   10170.5.  (a) Except as otherwise provided in Sections 10153.4 and
10170.8, no real estate license shall be renewed unless the
commissioner finds that the applicant for license renewal has, during
the four-year period preceding the renewal application, successfully
completed the 45-clock hours of education provided for in Section
10170.4, including all of the following:
   (1) A three-hour course in ethics, professional conduct, and legal
aspects of real estate, which shall include, but not be limited to,
relevant legislation, regulations, articles, reports, studies, court
decisions, treatises, and information of current interest.
   (2) A three-hour course in agency relationships and duties in a
real estate brokerage practice, including instruction in the
disclosures to be made and the confidences to be kept in the various
agency relationships between licensees and the parties to real estate
transactions.
   (3) A three-hour course in trust fund accounting and handling.
   (4) A three-hour course in fair housing.
   (5) A three-hour course in risk management that shall include, but
need not be limited to, principles, practices, and procedures
calculated to avoid errors and omissions in the practice of real
estate licensed activities. 
   (6) A three-hour course in the management of real estate offices
and supervision of real estate licensed activities that shall
include, but need not be limited to, the requirements described in
subdivision (a) of Section 10159.7 and Section 10164 and the duties
of a broker or salesperson acting under the reasonable supervision of
a responsible broker or branch manager.  
   (6) 
    (7)  Not less than 18-clock hours of courses or programs
related to consumer protection, and designated by the commissioner
as satisfying this purpose in his or her approval of the offering of
these courses or programs, which shall include, but not be limited
to, forms of real estate financing relevant to serving consumers in
the marketplace, land use regulation and control, pertinent consumer
disclosures, agency relationships, capital formation for real estate
development, fair practices in real estate, appraisal and valuation
techniques, landlord-tenant relationships, energy conservation,
environmental regulation and consideration, taxation as it relates to
consumer decisions in real estate transactions, probate and similar
disposition of real property, governmental programs such as revenue
bond activities, redevelopment, and related programs, business
opportunities, mineral, oil, and gas conveyancing, and California law
that relates to managing community associations that own, operate,
and maintain property within common interest developments, including,
but not limited to, management, maintenance, and financial matters
addressed in the Davis-Stirling Common Interest Development 
Act.   Act (Part 5 (commencing with Section  
4000) of Division 4 of the Civil Code).  
   (7) 
    (8)  Other courses and programs that will enable a
licensee to achieve a high level of competence in serving the
objectives of consumers who may engage the services of licensees to
secure the transfer, financing, or similar objectives with respect to
real property, including organizational and management techniques
that will significantly contribute to this goal.
   (b) Except as otherwise provided in Section 10170.8, no real
estate license shall be renewed for a licensee who already has
renewed under subdivision (a), unless the commissioner finds that the
applicant for license renewal has, during the four-year period
preceding the renewal application, successfully completed the
45-clock hours of education provided for in Section 10170.4,
including an eight-hour update survey course that covers the subject
areas specified in paragraphs (1) to  (5),  
(6),  inclusive, of subdivision (a).
   (c) Any denial of a license pursuant to this section shall be
subject to Section 10100.
   (d) For purposes of this section, "successful completion" of a
course described in paragraphs (1) to  (5),  
(6),  inclusive, of subdivision (a) means the passing of a final
examination.