Amended in Assembly March 16, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 345

Introduced by Assembly Member Frazier

February 13, 2015

An act to amendbegin delete Sections 10153.4 andend deletebegin insert Sectionend insert 10170.5 of the Business and Professions Code, relating to real estate licensees.


AB 345, as amended, 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 abegin delete licensee,end deletebegin insert broker,end insert as part of thebegin delete licensee’send deletebegin insert broker’send insert 45 hours of continuing education, to successfully complete a 3-hour course in the management of offices and supervision of licensed activities, asbegin delete specified, and would also make related and conforming changes.end deletebegin insert specified.end insert

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

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

begin delete
P2    1


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



(a) This section shall apply to an application for the
4real estate salesperson license examination, the real estate
5salesperson license, and for both the examination and license
6received by the commissioner prior to October 1, 2007, if the
7applicant obtains a passing score on the real estate salesperson
8license examination and submits a license application prior to
9October 1, 2007.

10(b) Application for the real estate salesperson license
11examination pursuant to this section shall be made in writing to
12the commissioner. The commissioner may prescribe the format
13and content of the salesperson examination application. The
14application for the salesperson examination shall be accompanied
15by the real estate salesperson license examination fee.

16(c) An applicant under this section shall comply with the
17requirements of subdivision (c) of Section 10153.3 in order to take
18the real estate salesperson license examination.

19(d) An applicant under this section who obtains a passing score
20on the real estate salesperson license examination prior to October
211, 2007, shall, prior to the issuance of the real estate salesperson
22license, submit evidence or certification satisfactory to the
23commissioner of successful completion at an accredited institution
24of a three-semester unit course, or the quarter unit equivalent
25thereof, or successful completion of an equivalent course of study
26as defined in Section 10153.5, in real estate principles as described
27in subdivision (c) of Section 10153.3. An applicant for an original
28real estate salesperson license under this section shall also, prior
29to the issuance of the license, or within 18 months after issuance,
30submit evidence or certification satisfactory to the commissioner
31of successful completion at an accredited institution or a private
32vocational school, as specified in Section 10153.5, of a course in
33real estate practice and one additional course set forth in Section
3410153.2, other than real estate principles, real estate practice,
35advanced legal aspects of real estate, advanced real estate finance,
36or advanced real estate appraisal.

37(e) A salesperson who qualifies for a license pursuant to this
38section shall not be required for the first license renewal thereafter
P3    1to complete the continuing education pursuant to Article 2.5
2(commencing with Section 10170), except for the courses specified
3in paragraphs (1) to (4), inclusive, of subdivision (a) of Section
410170.5 or, on and after July 1, 2007, except for the courses
5specified in paragraphs (1) to (6), inclusive, of subdivision (a) of
6Section 10170.5.

7(f) The salesperson license issued to an applicant who has
8satisfied only the requirements of subdivision (c) at the time of
9issuance shall be automatically suspended effective 18 months
10after issuance if the licensee has failed to satisfy the requirements
11of subdivision (d). The suspension shall not be lifted until the
12suspended licensee has submitted the required evidence of course
13completion and the commissioner has given written notice to the
14licensee of the lifting of the suspension.

15(g) The original license issued to a salesperson shall clearly set
16forth the conditions of the license and shall be accompanied by a
17notice of the provisions of this section and of any regulations
18adopted by the commissioner to implement this section.

19(h) The commissioner shall waive the requirements of this
20section for any person who presents evidence of admission to the
21State Bar of California, and the commissioner shall waive the
22requirement for any course for which an applicant has completed
23an equivalent course of study as determined under Section 10153.5.

end delete

begin deleteSEC. 2.end delete
25begin insertSECTION 1.end insert  

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



(a) Except as otherwise provided in Sections 10153.4
28and 10170.8, no real estate license shall be renewed unless the
29commissioner finds that the applicant for license renewal has,
30during the four-year period preceding the renewal application,
31successfully completed thebegin delete 45-clockend deletebegin insert 45 clockend insert hours of education
32provided for in Section 10170.4, including all of the following:

33(1) A three-hour course in ethics, professional conduct, and
34legal aspects of real estate, which shall include, but not be limited
35to, relevant legislation, regulations, articles, reports, studies, court
36decisions, treatises, and information of current interest.

37(2) A three-hour course in agency relationships and duties in a
38real estate brokerage practice, including instruction in the
39disclosures to be made and the confidences to be kept in the various
P4    1agency relationships between licensees and the parties to real estate

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

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

5(5) A three-hour course in risk management that shall include,
6but need not be limited to, principles, practices, and procedures
7calculated to avoid errors and omissions in the practice of real
8estate licensed activities.

9(6) begin deleteA end deletebegin insertIn addition to paragraphs (1) to (5), inclusive, a broker
10shall complete a end insert
three-hour course in the management of real estate
11offices and supervision of real estate licensed activities that shall
12include, but need not be limited to, the requirements described in
13subdivision (a) of Section 10159.7 and Sectionbegin delete 10164 and the
14duties of a broker or salesperson acting under the reasonable
15supervision of a responsible broker or branch manager.end delete
begin insert 10164.end insert

16(7) Not less thanbegin delete 18-clockend deletebegin insert 18 clockend insert hours of courses or programs
17related to consumer protection, and designated by the commissioner
18as satisfying this purpose in his or her approval of the offering of
19these courses or programs, which shall include, but not be limited
20to, forms of real estate financing relevant to serving consumers in
21the marketplace, land use regulation and control, pertinent
22 consumer disclosures, agency relationships, capital formation for
23real estate development, fair practices in real estate, appraisal and
24valuation techniques, landlord-tenant relationships, energy
25conservation, environmental regulation and consideration, taxation
26as it relates to consumer decisions in real estate transactions,
27probate and similar disposition of real property, governmental
28programs such as revenue bond activities, redevelopment, and
29related programs, business opportunities, mineral, oil, and gas
30conveyancing, and California law that relates to managing
31community associations that own, operate, and maintain property
32within common interest developments, including, but not limited
33to, management, maintenance, and financial matters addressed in
34the Davis-Stirling Common Interest Development Act (Part 5
35(commencing with Section 4000) of Division 4 of the Civil Code).

36(8) Other courses and programs that will enable a licensee to
37achieve a high level of competence in serving the objectives of
38consumers who may engage the services of licensees to secure the
39transfer, financing, or similar objectives with respect to real
40property, including organizational and managementbegin delete techniquesend delete
P5    1begin insert techniques, including relevant information to assist a salesperson
2or broker in understanding how to be effectively supervised by a
3responsible broker or branch manager,end insert
that will significantly
4contribute to this goal.

5(b) Except as otherwise provided in Section 10170.8, no real
6estate license shall be renewed for a licensee who already has
7renewed under subdivision (a), unless the commissioner finds that
8the applicant for license renewal has, during the four-year period
9preceding the renewal application, successfully completed the
10begin delete45-clockend deletebegin insert 45 clockend insert hours of education provided for in Section
1110170.4, including an eight-hour update survey course that covers
12the subject areas specified in paragraphs (1) to (6), inclusive, of
13subdivision (a).

14(c) Any denial of a license pursuant to this section shall be
15subject to Section 10100.

16(d) For purposes of this section, “successful completion” of a
17course described in paragraphs (1) to (6), inclusive, of subdivision
18(a) means the passing of a final examination.