BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1381|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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THIRD READING
Bill No: AB 1381
Author: Weber (D)
Amended: 8/26/16 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 provides that an "outdoor advertising
representative" is not required to register as a broker with the
Bureau of Real Estate; defines an "outdoor advertising
representative" as specified; requires the owner or operator of
the advertising display to maintain liability insurance; and
requires the Bureau of Real Estate Appraisers to provide
AB 1381
Page 2
information on its Web site regarding the continuing education
courses taken by a licensee.
Senate Floor Amendments of 8/26/16 define an "outdoor
advertising representative", as specified, clarify that an
"outdoor advertising representative" is not required to obtain a
real estate broker's license, and require that the owner or
operator of the advertising display maintain liability insurance
coverage, as specified.
ANALYSIS:
Existing law:
1) Establishes the Outdoor Advertising Act that regulates
outdoor advertising structures and signs. (Business and
Professions Code (BPC) § 5200)
2) Declares that it is the intent of the Legislature to regulate
advertising displays adjacent to highways included in the
national system of interstate and defense highways or the
federal-aid primary highway system. (BPC § 5228)
3) Authorizes the governing body of any city or city and county
to enact ordinances requiring licenses or permits for the
placing of advertising displays in view of any highway. (BPC
§ 5231)
4) States that a person engages in the business of outdoor
advertising whenever, personally or through employees, that
person places an advertising display, changes the advertising
message of an advertising display that does not pertain
exclusively to that person's business and is visible to a
state highway or freeway. (BPC § 5300)
5) Prohibits a person to engage in or carry on the business or
occupation of outdoor advertising without first having paid
the license fee. The fee is payable annually in advance on
the first day of July of each year to the Director of
Transportation or his authorized agent. Requires each license
remain in force for the term of one year from and after the
first day of July, and may be renewed annually. (BPC § 5301)
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6) Provides that persons acting in the capacity of a film
location representative in connection with a transaction are
not required to be licensed as a real estate broker. (BPC §
10133.4(a))
7) Defines "film location representative" as an employee of a
principal arranging for the use of real property for
photographic purposes. (BPC § 10133.4(b)(1))
8) Defines "principal" as the person who will use the real
property for photographic purposes. (BPC § 10133.4(b)(2))
9) Requires, in every transaction by a film location
representative, the principal maintain liability insurance
coverage for death, bodily injury, and property damage
arising out of, or in connection with the use, ownership, or
maintenance of real property which is the subject of the
transaction. (BPC § 10133.4(c))
10)Requires that the liability insurance not be less than five
hundred thousand dollars ($500,000) per person or one million
dollars ($1,000,000) per occurrence for personal injury and
five hundred thousand dollars ($500,000) for property damage.
(BPC § 10133.4(c))
11)Requires that the liability insurance be issued by an
insurance carrier authorized to sell such insurance in
California. (BPC § 10133.4(c))
12)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. (BPC § 11300 et seq.)
13)Requires the BREA to provide information on the Internet in
regarding, among other things, the status of every license
and registration issued by the BREA.
(BPC § 11317.2(a))
14)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
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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))
15)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) Provides that an "outdoor advertising representative" is not
required to register as a broker with the Bureau of Real
Estate (BRE).
2) Defines an "outdoor advertising representative" as an
employee of a corporation or a limited liability company or a
general partner of a partnership, that holds a license issued
by the Department of Transportation to engage in the business
of outdoor advertising, arranging for the lease or transfer
of real property by his or her employer or an interest in
real property solely for the placement of, access to, or
operation of, an advertising display and appurtenances.
3) Requires, in every transaction involving the transfer, lease,
or use of real property for the operation of an advertising
display negotiated by an outdoor advertising representative,
the owner or operator of the advertising display to maintain
liability insurance coverage for death, bodily injury, and
property damage arising out of, or in connection with, its
acts, omissions, or operations on the real property.
4) Requires that the liability insurance not be less than five
hundred thousand dollars ($500,000) per person or one million
dollars ($1,000,000) per occurrence for personal injury and
five hundred thousand dollars ($500,000) for property damage.
5) Requires that the liability insurance be issued by an
insurance carrier authorized to sell such insurance in
California.
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6) Requires BREA to provide, on the Internet, the continuing
education course information provided by a licensee when an
individual applies for licensure renewal.
7) Removes obsolete references to the Office of Real Estate
Appraisers and inserts the word "Bureau".
Background
According to the author, "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.
Additionally, AB 1381 clarifies that employees of outdoor
advertising companies can continue to conduct business
negotiations related to the placement and operation of outdoor
advertising displays without seeking licensure as a real estate
broker for specific transactions related to the placement,
access, and operation of an outdoor advertising display. Since
1901, this has been industry practice, and with decades of
experience, we have little evidence that the status quo needs to
be changed.
This issue was raised recently as the result of a signal inquiry
raised at the BRE. 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. As the Little Hoover Commission and others continue
their efforts to study appropriate levels of licensure, and how
appropriate licensure levels can facilitate economic prosperity
as well as maintain consumer protection, it is appropriate to
codify this century-long practice."
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
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Page 6
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."
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee that analyzed
the June 1, 2016 version, this bill will result in minor and
absorbable costs. Given the new outdoor advertising provisions,
additional costs are unknown.
SUPPORT: (Verified8/25/16)
Broadway Heights Community Council
California State Outdoor Advertising Association
Outfront Media
OPPOSITION: (Verified8/25/16)
None received
The California State Outdoor Advertising 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."
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,
AB 1381
Page 7
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
8/29/16 18:49:53
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