BILL NUMBER: AB 345	ENROLLED
	BILL TEXT

	PASSED THE SENATE  JUNE 25, 2015
	PASSED THE ASSEMBLY  MAY 7, 2015
	AMENDED IN ASSEMBLY  MARCH 16, 2015

INTRODUCED BY   Assembly Member Frazier

                        FEBRUARY 13, 2015

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 345, 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 broker, as part of the broker'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.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  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) In addition to paragraphs (1) to (5), inclusive, a broker
shall complete 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.
   (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 (Part
5 (commencing with Section 4000) of Division 4 of the Civil Code).
   (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,
including relevant information to assist a salesperson or broker in
understanding how to be effectively supervised by a responsible
broker or branch manager, 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 (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 (6), inclusive, of subdivision
(a) means the passing of a final examination.