BILL ANALYSIS                                                                                                                                                                                                    Ó






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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  








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          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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          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,  







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            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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