BILL ANALYSIS Ó AB 685 Page 1 Date of Hearing: April 22, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 685 (Irwin) - As Amended April 8, 2015 ----------------------------------------------------------------- |Policy |Business and Professions |Vote:|14 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill makes several changes to the conditions under which the California Bureau of Real Estate (CalBRE) may deny, suspend, or revoke a real estate license, and requires a licensee to report the bringing of a criminal complaint charging a felony against the licensee. AB 685 Page 2 FISCAL EFFECT: Costs are minor and absorbable within existing CalBRE resources. COMMENTS: 1)Purpose. According to the Author, "AB 685 is a cleanup of the Real Estate Law intended to provide greater clarity as well as remove any redundancy. The measure will (1) allow CalBRE to deny the issuance of a license due to unpaid fine, (2) allow CalBRE to discipline a licensee for actions taken against another state license if the behavior that resulted in that action would have resulted in the discipline of a real estate licensee, and (3) make it clear that licensees must report any information regarding the charging of a felony to CalBRE. These are changes that will allow CalBRE to better oversee the licensure and discipline of real estate licensees." 2)Previous legislation. a) SB 875 (Price), Chapter 380, Statutes of 2012, among other things, authorized CalBRE to use additional procedures when denying a license and deleted an obsolete provision dealing with the issuing of conditional licenses. b) SB 706 (Price), Chapter 712, Statutes of 2011, made enforcement enhancements to the Department of Real Estate (DRE) and the Office of Real Estate Appraisers (OREA); transferred OREA into DRE; required DRE to appoint a Real Estate Advisory Commission; and required licensing boards to post information about licensees on the Internet. AB 685 Page 3 Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081