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,  
           NOES:  Gaines
           NO VOTE RECORDED:  Bates


           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  


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          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  

          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  
          (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".  


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          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  

          5) Requires that the owner or operator of the advertising  
             display maintain liability insurance coverage, as specified.

          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  


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          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  

          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."


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          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

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