BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1381|
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|(916) 651-1520 Fax: (916) | |
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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.
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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".
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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
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
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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
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."
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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
**** END ****
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