BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1381| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1381 Author: Weber (D) Amended: 8/19/16 in Senate Vote: 21 SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 7-1, 6/13/16 AYES: Hill, Block, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski NOES: Gaines NO VOTE RECORDED: Bates SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8 SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 8/25/16 (Pursuant to Senate Rule 29.10) AYES: Hill, Bates, Block, Gaines, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski ASSEMBLY FLOOR: 65-10, 1/27/16 - See last page for vote SUBJECT: Professions and vocations: real estate appraisers: real estate brokers SOURCE: Author DIGEST: This bill requires the Bureau of Real Estate Appraisers to provide information on the Internet of the continuing education course information provided by a licensee when an individual applies for licensure renewal. Additionally, this bill clarifies that an "outdoor advertising representative" is not required to obtain a real estate broker's license, as specified. AB 1381 Page 2 ANALYSIS: Existing law: 1) Establishes the Real Estate Appraisers' Licensing and Certification Law (Act), administered by the Bureau of Real Estate Appraisers (BREA) within the Department of Consumer Affairs (DCA), which regulates the licensing of real estate appraisers. (Business and Professions Code (BPC) § 11300 et seq.) 2) Requires the BREA to provide on the Internet information regarding, among other things, the status of every license and registration issued by the BREA. (BPC § 11317.2(a)) 3) Requires the Director of the DCA to adopt regulations for licensure which shall meet, at a minimum, the requirements and standards established by the Appraisal Foundation and the federal financial institutions regulatory agencies acting pursuant to Section 1112 of the Financial Institutions Reform Recovery and Enforcement Act of 1989, Public Law 101-73 (FIRREA). (BPC § 11340(c)) 4) Requires the director to adopt regulations governing the process and procedures for renewal of a license, which shall include, but not be limited to, continuing education requirements, which shall be reported on the basis of four-year continuing education cycles. (BPC § 11360) This bill: 1) Requires the Bureau of Real Estate Appraisers to provide, on the Internet, the continuing education course information provided by a licensee when an individual applies for licensure renewal 2) Removes obsolete references to the Office of Real Estate Appraisers and inserts the word "Bureau". AB 1381 Page 3 3) Clarifies that an outdoor advertising representative is not required to obtain a real estate broker's license. 4) Defines an "outdoor advertising representative", as specified. 5) Requires that the owner or operator of the advertising display maintain liability insurance coverage, as specified. Background According to the Author, "In San Diego, the Broadway Heights Community Council raised concerns about recent appraisals in their neighborhood. Many residents questioned whether this appraiser was knowledgeable in renewable energy sources when appraising residential homes. When searching online for additional information about real estate appraisers, very little information is publically available. To attain a license in real estate appraising, every applicant is required to meet certain educational requirements for the type of license he or she is seeking. Once an applicant becomes licensed, at least 56 hours of continuing education is required during each four-year continuing education cycle. The continuing education requirement includes mandatory courses. For the remainder of the hours required, an appraiser is free to choose from a wide range of courses. This allows an appraiser to develop a specialization for a certain type of appraising, such as renewable energy." Outdoor Advertising Companies. Outdoor advertising companies negotiate with private property owners, business partners and municipalities to reach contractual agreements between the parties for the ownership, operation, or placement of outdoor advertising displays. Outdoor advertising displays must comply with federal, state and municipal ordinances. About a year ago, a member of the public made a complaint about a negotiation that had taken place between two outdoor advertising companies and a private property owner at a Bureau of Real Estate hearing. The complaint raised the question as AB 1381 Page 4 whether employees of outdoor advertising companies were required to be licensed real estate brokers under existing state law. The California State Outdoor Advertising Association (CSOAA) reports that they are unaware of any other such compliant or any other consumer complaint. After conversations with the DCA and the Administration, it was clarified that licensure for outdoor advertising company employees would not achieve additional consumer protection. The proposed language is modeled after an existing exemption for film industry employees who negotiate lease agreements for filming and are not required to seek licensure as real estate brokers. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No SUPPORT: (Verified8/22/16) Broadway Heights Community Council California State Outdoor Advertising Association OPPOSITION: (Verified8/22/16) California Association of Realtors ARGUMENTS IN SUPPORT: Broadway Heights Community Council and the Author ultimately underscore, "AB 1381 would provide the public with additional information on the continuing education courses taken when an appraiser seeks to renew his or her license. By listing an appraiser's continuing education courses, the public will have a better understanding of who appraises their property. In addition, businesses would be better able to evaluate candidates and select appraisers with certain specializations." AB 1381 Page 5 The California State Outdoor Adverting Association writes that, "this bill takes a measured approach explicitly detailing the types of transactions that outdoor advertising representatives may negotiate and further requires that the outdoor advertising company maintain appropriate liability insurance - a model that has served the film industry well." ARGUMENTS IN OPPOSITION: The California Association of Realtors underscore that "the process is flawed and the policy is flawed?The change allows unlicensed agents to evade the recently enacted commercial agency disclosures that were enacted only last session; it also allows unlicensed agents to evade the fiduciary responsibilities that would apply to any other legitimate agent." ASSEMBLY FLOOR: 65-10, 1/27/16 AYES: Achadjian, Alejo, Travis Allen, Baker, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Hadley, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Nazarian, O'Donnell, Olsen, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Williams, Wood, Atkins NOES: Bigelow, Brough, Beth Gaines, Gallagher, Grove, Harper, Melendez, Obernolte, Steinorth, Wilk NO VOTE RECORDED: Chang, Gray, Kim, Patterson Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104 8/25/16 17:23:53 **** END **** AB 1381 Page 6