AB 1545, as introduced, Irwin. State of California Housing Agency Act.
(1) Existing law establishes various agencies within the executive branch of state government, including the Business, Consumer Services, and Housing Agency. Under existing law, the Business, Consumer Services, and Housing Agency is comprised of the Department of Consumer Affairs, the Department of Housing and Community Development, the Department of Fair Employment and Housing, the Department of Business Oversight, the Department of Alcoholic Beverage Control, the Alcoholic Beverage Control Appeals Board, the California Horse Racing Board, and the Alfred E. Alquist Seismic Safety Commission. Existing law establishes, within the Department of Housing and Community Development, the California Housing Finance Agency which is administered by a board of 13 voting members, including the Secretary of Business, Consumer Services, and Housing. Under existing law, the Department of Consumer Affairs includes, among other entities, the Contractors’ State License Board, the Bureau of Real Estate, and the Structural Pest Control Board.
This bill would establish in state government the Housing Agency, comprised of the Department of Housing and Community Development; the Bureau of Real Estate, which this bill would redesignate as the Department of Real Estate; the Contractors’ State License Board; the Structural Pest Control Board; and the Department of Real Estate Finance, which this bill would also establish. The bill would redesignate the Business, Consumer Services, and Housing Agency as the Business and Consumer Services Agency, transfer certain duties of that agency to the Housing Agency, and make other conforming changes.
(2) Existing law establishes in state government the Bureau of Real Estate, headed by a Real Estate Commissioner appointed by the Governor. Existing law requires the Real Estate Commissioner to enforce, among other laws, the Real Estate Law, which provides for the licensure of real estate brokers and salespersons.
This bill would establish the Department of Real Estate Finance, headed by a Director of Real Estate Finance appointed by the Governor. The bill would require the director to execute the Real Estate Appraiser’s Licensing and Certification Law, the Escrow Law, provisions of the California Finance Lenders Law as they pertain to mortgage loan origination services and housing purchase and refinance lending activities, the California Residential Mortgage Lending Act, specified provisions pertaining to title and mortgage insurance, and laws regulating business activities as those laws pertain to the activities of home warranty companies. The bill would make various conforming changes to these laws.
(3) This bill would provide that its provisions shall be known, and may be cited, as the State of California Housing Agency Act. The bill would make various findings and declarations.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
(a) This act shall be known, and may be cited,
2as the State of California Housing Agency Act.
3(b) The Legislature finds and declares that the housing market
4plays a critical role in the California economy, and further finds
5and declares all of the following:
6(1) The need for housing is the highest priority for all
8(2) Adequate, stable, and accessible housing is a crucial
9component of life for all Californians.
10(3) The expenditure for housing is one of the most significant
11financial commitments Californians undertake in their day-to-day
13(4) Housing and housing-related activities are of primary
14importance to the people of the state that they warrant the clear
15and unified focus of state government.
16(c) It is the intent of the Legislature to establish the position of
17Secretary of Housing within state government to oversee all
18activities related to housing in the state. In creating this position,
19it is the intent of the Legislature to provide that all professional
20entities that play a role in the housing market be authorized to be
21incorporated into, or report to, this agency in order to have a more
22clear and unified approach to meet the housing needs of all
Section 100 of the Business and Professions Code is
25amended to read:
There is in the state government, in the
begin delete Business,
27Consumer Services, and Housingend delete
28 Agency, a Department of Consumer Affairs.
Section 101 of the Business and Professions Code is
30amended to read:
The department is comprised of the following:
32(a) The Dental Board of California.
33(b) The Medical Board of California.
34(c) The State Board of Optometry.
35(d) The California State Board of Pharmacy.
36(e) The Veterinary Medical Board.
37(f) The California Board of Accountancy.
38(g) The California Architects Board.
P4 1(h) The Bureau of Barbering and Cosmetology.
2(i) The Board for Professional Engineers and Land Surveyors.
3(j) The Contractors’ State License Board.end delete
5 The Bureau for Private Postsecondary Education.
7 The Bureau of Electronic and Appliance Repair, Home
8Furnishings, and Thermal Insulation.
10 The Board of Registered Nursing.
12 The Board of Behavioral Sciences.
14 The State Athletic Commission.
16 The Cemetery and Funeral Bureau.
18 The State Board of Guide Dogs for the Blind.
20 The Bureau of Security and Investigative Services.
22 The Court Reporters Board of California.
24 The Board of Vocational Nursing and Psychiatric
27 The Landscape Architects Technical Committee.
29 The Division of Investigation.
31 The Bureau of Automotive Repair.
33 The Respiratory Care Board of California.
35 The Acupuncture Board.
37 The Board of Psychology.
39 The California Board of Podiatric Medicine.
P5 1 The Physical Therapy Board of California.
3 The Arbitration Review Program.
5 The Physician Assistant Committee.
7 The Speech-Language Pathology and Audiology Board.
9 The California Board of Occupational Therapy.
11 The Osteopathic Medical Board of California.
13 The Naturopathic Medicine Committee.
15 The Dental Hygiene Committee of California.
17 The Professional Fiduciaries Bureau.
19 The State Board of Chiropractic Examiners.
20(al) The Bureau of Real Estate.end delete
21(am) The Bureau of Real Estate Appraisers.end delete
22(an) The Structural Pest Control Board.end delete
24 Any other boards, offices, or officers subject to its
25jurisdiction by law.
Section 7000.5 of the Business and Professions Code
27 is amended to read:
(a) There is in the
begin delete Department of Consumer Affairsend delete
29 a Contractors’ State License Board, which consists
30of 15 members.
31(b) Notwithstanding any other provision of law, the repeal of
32this section renders the board subject to review by the appropriate
33policy committees of the Legislature.
34(c) This section shall remain in effect only until January 1, 2016,
35and as of that date is repealed, unless a later enacted statute, that
36is enacted before January 1, 2016, deletes or extends that date.
Section 7011 of the Business and Professions Code is
38amended to read:
(a) The board, by and with the approval of the
begin delete director,end delete
2 shall appoint a registrar of contractors and
3fix his or her compensation.
4(b) The registrar shall be the executive officer and secretary of
5the board and shall carry out all of the administrative duties as
6provided in this chapter and as delegated to him or her by the
8(c) For the purpose of administration of this chapter, there may
9be appointed a deputy registrar, a chief reviewing and hearing
10officer, and, subject to Section 159.5, other assistants and
11subordinates as may be necessary.
12(d) Appointments shall be made in accordance with the
13provisions of civil service laws.
14(e) This section shall remain in effect only until January 1, 2016,
15and as of that date is repealed, unless a later enacted statute, that
16is enacted before January 1, 2016, deletes or extends that date.
Section 7015 of the Business and Professions Code is
18amended to read:
The board shall adopt a seal for its own use. The seal
20shall have the words “Contractors’ State License Board, State of
begin delete Department of Consumer Affairs,”end delete
22 and the care and custody thereof shall be in the hands of the
Section 8520 of the Business and Professions Code is
25amended to read:
(a) There is in the
begin delete Department of Consumer Affairsend delete
27 a Structural Pest Control Board, which consists
28of seven members.
29(b) Subject to the jurisdiction conferred upon the director by
30Division 1 (commencing with Section 100), the board is vested
31with the power to and shall administer the provisions of this
33(c) It is the intent of the Legislature that consumer protection
34is the primary mission of the board.
35(d) This section shall
remain in effect only until January 1, 2019,
36and as of that date is repealed, unless a later enacted statute, that
37is enacted before January 1, 2019, deletes or extends that date.
38Notwithstanding any other law, the repeal of this section renders
39the board subject to review by the appropriate policy committees
40of the Legislature.
Section 8520.2 of the Business and Professions Code
2 is repealed.
(a) The Structural Pest Control Board is hereby
4transferred from the jurisdiction of the Department of Pesticide
5Regulation and placed under the jurisdiction of the Department of
7(b) The registrar of the board under the jurisdiction of the
8Department of Pesticide Regulation shall remain as the registrar
9of the board under the jurisdiction of the Department of Consumer
11(c) The members appointed to the board while under the
12jurisdiction of the Department of Pesticide Regulation shall remain
13as members of the board under the jurisdiction of the Department
14of Consumer Affairs.
15(d) All employees of the board under the jurisdiction of the
16Department of Pesticide Regulation are hereby transferred to the
17board under the jurisdiction of the Department of Consumer
19(e) The duties, powers, purposes, responsibilities, and
20jurisdictions of the board under the jurisdiction of the Department
21of Pesticide Regulation shall remain with the board under the
22jurisdiction of the Department of Consumer Affairs.
23(f) For the performance of the duties and the exercise of the
24 powers vested in the board under this chapter, the board shall have
25possession and control of all records, papers, offices, equipment,
26supplies, or other property, real or personal, held for the benefit
27or use by the board formerly within the jurisdiction of the
28Department of Pesticide Regulation.
29(g) Any reference to the board in this chapter or in any other
30provision of law or regulation shall be construed as a reference to
31the board under the jurisdiction of the Department of Consumer
Section 8520.2 is added to the Business and Professions
34Code, to read:
(a) The Structural Pest Control Board is hereby
36transferred from the jurisdiction of the Department of Consumer
37Affairs and placed under the jurisdiction of the Housing Agency.
38(b) The registrar of the board and the members appointed to the
39board under the jurisdiction of the Department of Consumer Affairs
P8 1shall remain as the registrar and members of the board under the
2jurisdiction under the Housing Agency.
3(c) All employees of the board under the jurisdiction of the
4Department of Consumer Affairs are hereby transferred to the
5board under the jurisdiction of the Housing Agency.
6(d) The duties, powers, purposes,
7jurisdictions of the board under the jurisdiction of the Department
8of Consumer Affairs shall remain with the board under the
9jurisdiction of the Housing Agency.
10(e) For the performance of the duties and exercise of the powers
11vested in the board under this chapter, the board shall have
12possession and control of all records, papers, offices, equipment,
13supplies, or other property, real or personal, held for the benefit
14or use by the board formerly within the jurisdiction of the
15Department of Consumer Affairs.
16(f) Any reference to the board in this chapter or in any other
17law or regulation shall be construed as a reference to the board
18under the jurisdiction of the Housing Agency.
Section 8522 of the Business and Professions Code
20 is amended to read:
(a) Members of the board shall be appointed for a term
22of four years, subject to removal by the appointing power at his
23or her pleasure.
24(b) Vacancies shall be filled by the appointing power for the
26(c) Each member shall hold office until the appointment of his
27or her successor not to exceed one year from the expiration of the
28term for which he or she was appointed. No person shall serve as
29a member of the board for more than two consecutive terms.
30(d) Each appointment shall be for a four-year term expiring four
31years after either the date of the appointment or the date a previous
33(e) From the nominations received pursuant to subdivision (f),
34the Governor shall appoint two of the public members and the
35three licensed members qualified as provided in Section 8521. The
36Senate Committee on Rules and the Speaker of the Assembly shall
37each appoint a public member, and their initial appointment shall
38be made to fill, respectively, the first and second public member
39vacancies that occur on or after January 1, 1983.
P9 1(f) (1) At least 60 days prior to the appointment by the Governor
2of a public member or licensed member to the board, the director
3shall solicit nominations to the board from interested parties by
4mailing them a notice and by posting a notice on the
begin delete department’send delete
5 Internet Web site. Interested parties include,
6but are not limited to, members or representatives from the
7structural pest control industry and organizations representing
8consumer, environmental, and real estate interests.
9(2) All nominations shall be made in writing and shall include
10(A) the name and address of each nominee, (B) if an operator, his
11or her license number, and (C) the name, address, and affiliation,
12if any, of the nominator.
13(3) The nominations shall be mailed to the director and shall be
14made available to the Governor and the director.
Section 10004 of the Business and Professions Code
16 is amended to read:
begin delete“Bureau” end deletemeans the begin delete Bureauend delete
18 of Real Estate in the
begin delete Department of Consumer Affairs.end delete
Section 10005 of the Business and Professions Code
21 is amended to read:
Whenever the terms “bureau,” “division,” “department,”
begin delete “Department of Real Estate,” “Stateend delete Real Estate Division,” or begin delete “Realend delete Estate Division” are
25used in this division, they mean the
begin delete Bureauend delete of Real
27Whenever the terms
begin delete “Department of Real Estate,”end delete “ State Real Estate Division,” or “ Real Estate
29Division” are used in any other law, they mean the
begin delete Bureauend delete
30 of Real Estate.
Section 10050 of the Business and Professions Code
32 is amended to read:
(a) There is in the
begin delete Department of Consumer Affairsend delete
begin delete Bureauend delete of Real Estate, the chief
35officer of which
begin delete bureauend delete is named the Real Estate
37(b) It shall
be the principal responsibility of the commissioner
38to enforce all laws in this part (commencing with Section 10000)
39and Chapter 1 (commencing with Section 11000) of Part 2 of this
40division in a manner that achieves the maximum protection for the
P10 1purchasers of real property and those persons dealing with real
3(c) Wherever the term “commissioner” is used in this division,
4it means the Real Estate Commissioner.
Section 11301 of the Business and Professions Code
6 is amended to read:
(a) There is hereby created within the Department of
begin delete Consumer Affairsend delete a Bureau of Real Estate
9Appraisers to administer and enforce this part.
10(b) Whenever the term “Office of Real Estate Appraisers”
11appears in any other law, it means the “Bureau of Real Estate
Section 11302 of the Business and Professions Code
14 is amended to read:
For the purpose of applying this part, the following
16terms, unless otherwise expressly indicated, shall mean and have
17the following definitions:
18(a) “Department” means the Department of
begin delete Consumer Affairs.end delete
20(b) “Appraisal” means a written statement independently and
21impartially prepared by a qualified appraiser setting forth an
22opinion in a federally related transaction as to the market value of
23an adequately described property as of a specific date, supported
24by the presentation and analysis of relevant market information.
25The term “appraisal” does not include an opinion given by a real
26estate licensee or engineer or land surveyor in the ordinary course
27of his or her business in connection with a function for which a
28license is required under Chapter 7 (commencing with Section
296700) or Chapter 15 (commencing with Section 8700) of Division
303, or Chapter 3 (commencing with Section 10130) or Chapter 7
31(commencing with Section 10500) and the opinion shall not be
32referred to as an appraisal. This part does not apply to a probate
33referee acting pursuant to Sections 400 to 408, inclusive, of the
34Probate Code unless the appraised transaction is federally related.
35(c) “Appraisal Foundation” means the Appraisal Foundation
36that was incorporated as an Illinois not-for-profit corporation on
37November 30, 1987.
38(d) (1) “Appraisal
management company” means any person
39or entity that satisfies all of the following conditions:
P11 1(A) Maintains an approved list or lists, containing 11 or more
2independent contractor appraisers licensed or certified pursuant
3to this part, or employs 11 or more appraisers licensed or certified
4pursuant to this part.
5(B) Receives requests for appraisals from one or more clients.
6(C) For a fee paid by one or more of its clients, delegates
7appraisal assignments for completion by its independent contractor
8or employee appraisers.
9(2) “Appraisal management company” does not include any of
10the following, when that person or entity directly contracts with
11an independent appraiser:
12(A) Any bank,
credit union, trust company, savings and loan
13association, or industrial loan company doing business under the
14authority of, or in accordance with, a license, certificate, or charter
15issued by the United States or any state, district, territory, or
16commonwealth of the United States that is authorized to transact
17business in this state.
18(B) Any finance lender or finance broker licensed pursuant to
19Division 9 (commencing with Section 22000) of the Financial
20Code, when acting under the authority of that license.
21(C) Any residential mortgage lender or residential mortgage
22servicer licensed pursuant to Division 20 (commencing with
23Section 50000) of the Financial Code, when acting under the
24authority of that license.
25(D) Any real estate broker licensed pursuant to Part 1
26(commencing with Section 10000) of Division 4 of the Business
27and Professions Code, when acting under the authority of that
29(3) “Appraisal management company” does not include any
30person licensed to practice law in this state who is working with
31or on behalf of a client of that person in connection with one or
32more appraisals for that client.
33(e) “Appraisal Subcommittee” means the Appraisal
34Subcommittee of the Federal Financial Institutions Examination
36(f) “Controlling person” means one or more of the following:
37(1) An officer or director of an appraisal management company,
38or an individual who holds a 10 percent or greater ownership
39interest in an appraisal management company.
P12 1(2) An individual employed, appointed, or
authorized by an
2appraisal management company that has the authority to enter into
3a contractual relationship with clients for the performance of
4appraisal services and that has the authority to enter into
5agreements with independent appraisers for the completion of
7(3) An individual who possesses the power to direct or cause
8the direction of the management or policies of an appraisal
10(g) “Director” or “chief” means the Chief of the Bureau of Real
12(h) “Federal financial institutions regulatory agency” means the
13Federal Reserve Board, Federal Deposit Insurance Corporation,
14Office of the Comptroller of the Currency, Federal Home Loan
15Bank System, National Credit Union Administration, and any other
16agency determined by the director to have jurisdiction over
17transactions subject to this part.
18(i) “Federally related real estate appraisal activity” means the
19act or process of making or performing an appraisal on real estate
20or real property in a federally related transaction and preparing an
21appraisal as a result of that activity.
22(j) “Federally related transaction” means any real estate-related
23financial transaction which a federal financial institutions
24regulatory agency engages in, contracts for or regulates and which
25requires the services of a state licensed real estate appraiser
26regulated by this part. This term also includes any transaction
27identified as such by a federal financial institutions regulatory
29(k) “License” means any license, certificate, permit, registration,
30or other means issued by the bureau authorizing the person to
31whom it is issued to act pursuant to this part within this state.
32(l) “Licensure” means the procedures and requirements a person
33shall comply with in order to qualify for issuance of a license and
34includes the issuance of the license.
35(m) “Office” or “bureau” means the Bureau of Real Estate
37(n) “Registration” means the procedures and requirements with
38which a person or entity shall comply in order to qualify to conduct
39business as an appraisal management company.
P13 1(o) “State licensed real estate appraiser” is a person who is
2issued and holds a current valid license under this part.
3(p) “Uniform Standards of Professional Appraisal Practice” are
4the standards of professional appraisal practice established by the
5 Appraisal Foundation.
6(q) “Course provider” means a person or entity that provides
7educational courses related to professional appraisal practice.
Section 11310 of the Business and Professions Code
9 is amended to read:
The Governor shall appoint, subject to confirmation
11by the Senate, the Chief of the Bureau of Real Estate Appraisers
12who shall, in consultation with the Governor and the Director of
begin delete Consumer Affairs,end delete administer the licensing
14and certification program for real estate appraisers. In making the
15appointment, consideration shall be given to the qualifications of
16an individual that demonstrate knowledge of the real estate
18(a) The chief shall serve at the pleasure of the Governor. The
19salary for the chief shall be fixed and determined by the Director
20of Consumer Affairs with approval of the Department of Human
22(b) The chief shall not be actively engaged in the appraisal
23business or any other affected industry for the term of appointment,
24and thereafter the chief shall be subject to Section 87406 of the
26(c) The chief, in consultation with the Director of
begin delete Consumer and in accordance with the State Civil
28Service Act, may appoint and fix the compensation of legal,
29clerical, technical, investigation, and auditing personnel as may
30be necessary to carry out this part. All personnel shall perform
31their respective duties under the supervision and direction of the
33(d) The chief may appoint not more than four deputies as he or
34she deems appropriate. The deputies shall perform their respective
35duties under the supervision and direction of the chief.
36(e) Every power granted to or duty imposed upon the chief under
37this part may be exercised or performed in the name of the chief
38by the deputies, subject to conditions and limitations as the chief
Section 11313 of the Business and Professions Code
2 is amended to read:
The bureau is under the supervision and control of the
begin delete Consumer Affairs.end delete The duty of
5enforcing and administering this part is vested in the chief, and he
6or she is responsible to the Director of
begin delete Consumer Affairsend delete therefor. The chief shall adopt and enforce rules
8and regulations as are determined reasonably necessary to carry
9out the purposes of this part. Those rules and regulations shall be
10adopted pursuant to Chapter 3.5 (commencing with Section 11340)
11of Part 1 of Division 3 of Title 2 of the Government Code.
12Regulations adopted by the former Director of the Office of Real
13Estate Appraisers shall continue to apply to the bureau and its
Section 19404 of the Business and Professions Code
16 is amended to read:
“Board” means the California Horse Racing Board
begin delete Business, Consumer Services, and Housingend delete Agency.
Section 23050 of the Business and Professions Code
21 is amended to read:
There is in the state government, in the
begin delete Business,
23Consumer Services, and Housingend delete
24 Agency, a Department of Alcoholic Beverage Control. The
25department shall be administered through a civil executive officer
26who shall be known as the Director of Alcoholic Beverage Control.
27The director shall be appointed and shall serve as provided in
28Section 22 of Article XX of the Constitution and shall receive an
29annual salary as provided for by Chapter 6 of Part 1 of Division 3 of Title 2 of the Government
Section 23075 of the Business and Professions Code
33 is amended to read:
There is in the state government, in the
begin delete Business,
35Consumer Services, and Housingend delete
36 Agency, an Alcoholic Beverage Control Appeals Board the
37members of which shall be appointed and shall serve as provided
38in Section 22 of Article XX of the Constitution, and shall receive
39an annual salary as provided for by Chapter 6 (commencing with
P15 1Section 11550) of Part 1 of Division 3 of Title 2 of the Government
Section 300 of the Financial Code is amended to read:
(a) In this section:
5(1) “Business and industrial development corporation” means
6a corporation licensed under Division 15 (commencing with
8(2) “Payment instrument” has the same meaning as set forth in
10(3) “Stored Value” has the same meaning as set forth in
11subdivision (v) of Section 2003.
12(b) There is in the state government, in the
begin delete Business, Consumer Agency,
13Services, and Housingend delete
14a Department of Business Oversight, which has charge of the
15execution of, among other laws, the laws of this state relating to
16any of the following: (1) banks or trust companies or the banking
17or trust business; (2) savings associations or the savings association
18business; (3) credit unions or the credit union business; (4) persons
19who engage in the business of receiving money for transmission
20or such business; (5) issuers of stored value or such business; (6)
21issuers of payment instruments or the payment instrument business;
22(7) business and industrial development corporations or the
23business and industrial development corporation business; (8)
24insurance premium finance agencies or the insurance premium
25finance business; (9) persons offering or making any contract
26constituting bucketing; (10) persons offering or selling
27off-exchange commodities; (11) deferred deposit originators; (12)
28finance lenders and brokers; (13) residential mortgage lenders and
29 servicers; (14) capital access companies; (15) check sellers, bill
30payers, and proraters; (16) securities issuers, broker-dealers, agents,
31investment advisers, and investment adviser representatives; (17)
32mortgage loan originators employed or supervised by finance
33lenders or residential mortgage lenders; (18) escrow agents; (19)
34franchisors; or (20) persons holding securities as custodians on
35behalf of securities owners.
Chapter 11 (commencing with Section 900) is added
37to Division 1 of the Financial Code, to read:
For the purposes of this chapter, the following definitions
7(a) ”Director” means the Director of Real Estate Finance.
8(b) “Department” means the Department of Real Estate Finance.
There is in state government, in the Housing Agency, a
10Department of Real Estate Finance.
(a) The director shall have charge of the execution of,
12among other laws, the following laws of this state:
13(1) The Real Estate Appraiser’s Licensing and Certification
14Law (Part 3 (commencing with Section 11300) of Division 4 of
15the Business and Professions Code).
16(2) The Escrow Law (Division 6 (commencing with Section
1717000)), as that law pertains to escrow activities affecting real
19(3) The California Finance Lenders Law (Division 9
20(commencing with Section 22000)), as that law pertains to
21mortgage loan origination services and housing purchase and
22refinance lending activities.
23(4) The California Residential Mortgage Lending Act (Division
2420 (commencing with Section 50000)).
25(5) Part 6 (commencing with Section 12340) of Division 2 of
26the Insurance Code, pertaining to title and mortgage insurance.
27(b) In addition, the director shall have charge of the execution
28of laws regulating business activities as those laws pertain to the
29activities of home warranty companies.
(a) (1) The director may adopt rules and regulations
31necessary to carry out this chapter and the laws specified in Section
32902 in accordance with Chapter 3.5 (commencing with Section
3311340) of Part 1 of Division 3 of Title 2 of the Government Code.
34(2) Any rule or regulation adopted by another agency
35implementing the provisions of the laws specified in Section 902
36shall remain in effect until the director adopts new rules and
37regulations pursuant to this section.
38(b) In any hearing required pursuant to the laws specified in
39Section 902, the director shall proceed as prescribed by Chapter
405 (commencing with Section 11500) of Part 1 of Division 3 of
P17 1Title 2 of the Government Code, and shall have all the powers
(a) The chief officer of the department is the Director of
7Real Estate Finance. The director shall be the head of the
8department with the authority and responsibility over all officers,
9employees, and activities in the department.
10(b) The director shall be appointed by, and serve at the pleasure
11of, the Governor.
12(c) The director shall receive an annual salary as provided in
13Chapter 6 (commencing with Section 11550) of Part 1 of Division
143 of Title 2 of the Government Code, to be paid monthly out of
15the State Treasury upon a warrant of the Controller, and shall be
16allowed his or her actual and necessary expenses in the discharge
17of his or her duties.
The director shall have his or her principal office in the
19same facility as the principal office of the Real Estate
(a) (1) The director shall employ any deputies, clerks,
22and employees as he or she may need to discharge in proper manner
23the duties imposed upon him or her by law. Deputies, clerks, and
24employees shall perform those duties that the director assigns to
26(2) Each deputy shall, after his or her appointment, take and
27subscribe to the oath or affirmation of office prescribed in Section
283 of Article XX of the California Constitution, and file that oath
29or affirmation in the office of the Secretary of State.
30(b) Subject to the powers of the State Personnel Board and the
31Director of Finance, the director shall fix the compensation of the
32deputies, clerks, and employees of the department. Compensation
33shall be paid monthly on a certificate of the director, and on the
34warrant of the Controller out of the State Treasury.
The director shall adopt a seal with the words “Director
36of Real Estate Finance, State of California” and any other device
37as the director may desire, by which he or she shall authenticate
38the proceedings of his or her office. Copies of all records and
39papers in the office of the director certified under the hand and
P18 1seal of the director shall be received in evidence in all cases equally
2and with the same effect as the originals.
The Attorney General shall render to the director opinions
4upon all questions of law relating to the construction or
5interpretation of this chapter or the laws specified in Section 902,
6or arising in the administration thereof, that may be submitted to
7him or her by the director. The Attorney General shall act as the
8attorney for the director in all actions and proceedings brought by
9or against him or her under or pursuant to any of the provisions of
10this chapter or of the laws specified in Section 902.
Section 17002.1 is added to the Financial Code, to
“Director” means the Director of Real Estate Finance.
Section 22005.5 is added to the Financial Code, to
“Director” means the Director of Real Estate Finance.
Section 50003 of the Financial Code is amended to
(a) “Annual audit” means a certified audit of the
20licensee’s books, records, and systems of internal control performed
21by an independent certified public accountant in accordance with
22generally accepted accounting principles and generally accepted
24(b) “Borrower” means the loan applicant.
25(c) “Buy” includes exchange, offer to buy, or solicitation to
27(d) “Commissioner” means the Commissioner of Business
30(e) “Control” means the possession, directly or indirectly, of
31the power to direct, or cause the direction of, the management and
32policies of a licensee under this division, whether through voting
33or through the ownership of voting power of an entity that
34possesses voting power of the licensee, or otherwise. Control is
35presumed to exist if a person, directly or indirectly, owns, controls,
36or holds 10 percent or more of the voting power of a licensee or
37of an entity that owns, controls, or holds, with power to vote, 10
38percent or more of the voting power of a licensee. No person shall
39be deemed to control a licensee solely by reason of his or her status
40as an officer or director of the licensee.
P19 1(f) “Depository institution” has the same meaning as in Section
23 of the Federal Deposit Insurance Act, and includes any credit
4(g) “Engage in the business” means the dissemination to the
5public, or any part of the public, by means of written, printed, or
6electronic communication or any communication by means of
7recorded telephone messages or spoken on radio, television, or
8similar communications media, of any information relating to the
9making of residential mortgage loans, the servicing of residential
10mortgage loans, or both. “Engage in the business” also means,
11without limitation, making residential mortgage loans or servicing
12residential mortgage loans, or both.
13(h) “Federal banking agencies” means the Board of Governors
14of the Federal Reserve System, the Comptroller of the Currency,
15the National Credit Union Administration, and the Federal Deposit
17(i) “In this state” includes any activity of a person relating to
18making or servicing a residential mortgage loan that originates
19from this state and is directed to persons outside this state, or that
20originates from outside this state and is directed to persons inside
21this state, or that originates inside this state and is directed to
22persons inside this state, or that leads to the formation of a contract
23and the offer or acceptance thereof is directed to a person in this
24state (whether from inside or outside this state and whether the
25offer was made inside or outside the state).
26(j) “Institutional investor” means the following:
27(1) The United States or any state, district, territory, or
28commonwealth thereof, or any city, county, city and county, public
29 district, public authority, public corporation, public entity, or
30political subdivision of a state, district, territory, or commonwealth
31of the United States, or any agency or other instrumentality of any
32one or more of the foregoing, including, by way of example, the
33Federal National Mortgage Association and the Federal Home
34Loan Mortgage Corporation.
35(2) Any bank, trust company, savings bank or savings and loan
36association, credit union, industrial bank or industrial loan
37company, personal property broker, consumer finance lender,
38commercial finance lender, or insurance company, or subsidiary
39or affiliate of one of the preceding entities, doing business under
40the authority of or in accordance with a license, certificate, or
P20 1charter issued by the United States or any state, district, territory,
2or commonwealth of the United States.
3(3) Trustees of pension, profit-sharing, or
welfare funds, if the
4pension, profit-sharing, or welfare fund has a net worth of not less
5than fifteen million dollars ($15,000,000), except pension,
6profit-sharing, or welfare funds of a licensee or its affiliate,
7self-employed individual retirement plans, or individual retirement
9(4) A corporation or other entity with outstanding securities
10registered under Section 12 of the federal Securities Exchange Act
11of 1934 or a wholly owned subsidiary of that corporation or entity,
12provided that the purchaser represents either of the following:
13(A) That it is purchasing for its own account for investment and
14not with a view to, or for sale in connection with, any distribution
15of a promissory note.
16(B) That it is purchasing for resale pursuant to an exemption
17under Rule 144A (17 C.F.R. 230.144A) of the Securities and
19(5) An investment company registered under the Investment
20Company Act of 1940; or a wholly owned and controlled subsidiary
21of that company, provided that the purchaser makes either of the
22representations provided in paragraph (4).
23(6) A residential mortgage lender or servicer licensed to make
24residential mortgage loans under this law or an affiliate or
25subsidiary of that person.
26(7) Any person who is licensed as a securities broker or
27securities dealer under any law of this state, or of the United States,
28or any employee, officer, or agent of that person, if that person is
29acting within the scope of authority granted by that license or an
30affiliate or subsidiary controlled by that broker or dealer, in
31connection with a transaction involving the offer, sale, purchase,
32or exchange of one or more promissory notes secured directly or
33indirectly by liens on real property or a security representing an
34ownership interest in a pool of promissory notes secured directly
35or indirectly by liens on real property, and the offer and sale of
36those securities is qualified under the California Corporate
37Securities Law of 1968 or registered under federal securities laws,
38or exempt from qualification or registration.
P21 1(8) A licensed real estate broker selling the loan to an
2institutional investor specified in paragraphs (1) to (7), inclusive,
3or paragraph (9) or (10).
4(9) A business development company as defined in Section
52(a)(48) of the Investment Company Act of 1940 or a small
6business investment company licensed by the United States Small
7Business Administration under Section 301(c) or (d) of the Small
8Business Investment Act of 1958.
9(10) A syndication or other combination of any of the foregoing
10entities that is organized to purchase a promissory note.
11(11) A trust or other business entity established by an
12institutional investor for the purpose of issuing or facilitating the
13issuance of securities representing undivided interests in, or rights
14to receive payments from or to receive payments primarily from,
15a pool of financial assets held by the trust or business entity,
16provided that all of the following apply:
17(A) The business entity is not a sole proprietorship.
18(B) The pool of assets consists of one or more of the following:
19(i) Interest-bearing obligations.
20(ii) Other contractual obligations representing the right to receive
21payments from the assets.
22(iii) Surety bonds, insurance policies, letters of credit, or other
23instruments providing credit enhancement for the assets.
24(C) The securities will be either one of the following:
25(i) Rated as “investment grade” by Standard and Poor’s
26Corporation or Moody’s Investors Service, Inc. “Investment grade”
27means that the securities will be rated by Standard and Poor’s
28Corporation as AAA, AA, A, or BBB or by Moody’s Investors
29Service, Inc. as Aaa, Aa, A, or Baa, including any of those ratings
30with “+” or “--” designation or other variations that occur within
32(ii) Sold to an institutional investor.
33(D) The offer and sale of the securities is qualified under the
34California Corporate Securities Law of 1968 or registered under
35federal securities laws, or exempt from qualification or registration.
36(k) “Institutional lender” means the following:
37(1) The United States or any state, district, territory, or
38commonwealth thereof, or any city, county, city and county, public
39district, public authority, public corporation, public entity, or
40political subdivision of a state, district, territory, or commonwealth
P22 1of the United States, or any agency or other instrumentality of any
2one or more of the foregoing, including, by way of example, the
3Federal National Mortgage Association and the Federal Home
4Loan Mortgage Corporation.
5(2) Any bank, trust company, savings
bank or savings and loan
6association, credit union, industrial loan company, or insurance
7company, or service or investment company that is wholly owned
8and controlled by one of the preceding entities, doing business
9under the authority of and in accordance with a license, certificate,
10or charter issued by the United States or any state, district, territory,
11or commonwealth of the United States.
12(3) Any corporation with outstanding securities registered under
13Section 12 of the Securities Exchange Act of 1934 or any wholly
14owned subsidiary of that corporation.
15(4) A residential mortgage lender or servicer licensed to make
16residential mortgage loans under this law.
17(l) “Law” means the California Residential Mortgage Lending
19(m) “Lender” means
a person that (1) is an approved lender for
20the Federal Housing Administration, Veterans Administration,
21Farmers Home Administration, Government National Mortgage
22Association, Federal National Mortgage Association, or Federal
23Home Loan Mortgage Corporation, (2) directly makes residential
24mortgage loans, and (3) makes the credit decision in the loan
26(n) “Licensee” means, depending on the context, a person
27licensed under Chapter 2 (commencing with Section 50120),
28Chapter 3 (commencing with Section 50130), or Chapter 3.5
29(commencing with Section 50140).
30(o) “Makes or making residential mortgage loans” or “mortgage
31lending” means processing, underwriting, or as a lender using or
32advancing one’s own funds, or making a commitment to advance
33one’s own funds, to a loan applicant for a residential mortgage
35(p) “Mortgage loan,” “residential mortgage loan,” or “home
36mortgage loan” means a federally related mortgage loan as defined
37in Section 1024.2 of Title 12 of the Code of Federal Regulations,
38or a loan made to finance construction of a one-to-four family
P23 1(q) “Mortgage servicer” or “residential mortgage loan servicer”
2means a person that (1) is an approved servicer for the Federal
3Housing Administration, Veterans Administration, Farmers Home
4Administration, Government National Mortgage Association,
5Federal National Mortgage Association, or Federal Home Loan
6Mortgage Corporation, and (2) directly services or offers to service
8(r) “Nationwide Mortgage Licensing System and Registry”
9means a mortgage licensing system developed and maintained by
10the Conference of State Bank Supervisors and the American
11Association of Residential Mortgage Regulators for the licensing
12and registration of licensed mortgage loan originators.
13(s) “Net worth” has the meaning set forth in Section 50201.
14(t) “Own funds” means (1) cash, corporate capital, or warehouse
15credit lines at commercial banks, savings banks, savings and loan
16associations, industrial loan companies, or other sources that are
17liability items on a lender’s financial statements, whether secured
18or unsecured, or (2) a lender’s affiliate’s cash, corporate capital,
19or warehouse credit lines at commercial banks or other sources
20that are liability items on the affiliate’s financial statements,
21whether secured or unsecured. “Own funds” does not include funds
22provided by a third party to fund a loan on condition that the third
23party will subsequently purchase or accept an assignment of that
25(u) “Person” means a
natural person, a sole proprietorship, a
26corporation, a partnership, a limited liability company, an
27association, a trust, a joint venture, an unincorporated organization,
28a joint stock company, a government or a political subdivision of
29a government, and any other entity.
30(v) “Residential real property” or “residential real estate” means
31real property located in this state that is improved by a one-to-four
33(w) “SAFE Act” means the federal Secure and Fair Enforcement
34for Mortgage Licensing Act of 2008 (Public Law 110-289).
35(x) “Service” or “servicing” means receiving more than three
36installment payments of principal, interest, or other amounts placed
37in escrow, pursuant to the terms of a mortgage loan and performing
38services by a licensee relating to that receipt or the enforcement
39of its receipt, on behalf of the holder of the note evidencing that
P24 1(y) “Sell” includes exchange, offer to sell, or solicitation to sell.
2(z) “Unique identifier” means a number or other identifier
3assigned by protocols established by the Nationwide Mortgage
4Licensing System and Registry.
5(aa) For purposes of Sections 50142, 50143, and 50145,
6“nontraditional mortgage product” means any mortgage product
7other than a 30-year fixed rate mortgage.
8(ab) For purposes of Section 50141, “expungement” means the
9subsequent order under the provisions of Section 1203.4 of the
10Penal Code allowing such individual to withdraw his or her plea
11of guilty and to enter a plea of not guilty, or setting aside the verdict
12of guilty or dismissing the accusation, information, or indictment.
13 With respect to criminal convictions in another state, that state’s
14definition of expungement will apply.
Section 8870.1 of the Government Code is amended
(a) (1) There is created in the state government the
18Alfred E. Alquist Seismic Safety Commission as an independent
19unit within the
begin delete Business, Consumer Services, and Housingend delete Agency.
21(2) Any reference in statute or regulation to the Seismic Safety
22Commission shall be deemed to refer to the Alfred E. Alquist
23Seismic Safety Commission.
24(b) The commission shall report annually to the Governor and
25to the Legislature on its findings, progress, and recommendations
26 relating to earthquake hazard reduction, and any other seismic
27safety issues, as requested by the Governor or the Legislature.
Section 8870.2 of the Government Code is amended
(a) The Alfred E. Alquist Seismic Safety Commission
31shall consist of 15 members appointed by the Governor and
32confirmed by the Senate, one member representing the Office of
33Emergency Services, one member representing the Division of the
34State Architect in the Department of General Services, one member
35representing the California Building Standards Commission, one
36member appointed by the Senate Committee on Rules, and one
37member appointed by the Speaker of the Assembly. The
38commission shall elect annually from its membership its own
39chairperson and vice chairperson and may replace them with other
P25 1commissioners by majority vote. Commission members shall be
2residents of California.
3(b) A quorum shall consist of 11 members if there are no
4vacancies, or else a majority of the members of the commission
5at the time.
6(c) The Legislature declares that the individuals appointed to
7the commission are intended to represent the professions of
8architecture, planning, fire protection, public utilities, structural
9engineering, geotechnical engineering, geology, seismology, local
10government, insurance, social services, emergency services, and
11the Legislature and that such representation serves the public
12interest. Accordingly, the Legislature finds that for purposes of
13persons who hold this office the specified professions are
14tantamount to and constitute the public generally within the
15meaning of Section 87103.
16(d) The commission exists as a separate unit within the
begin delete Business,
17Consumer Services, and Housingend delete
18 Agency, and has the functions of prescribing policy, holding
19meetings and setting dates of the meetings, conducting
20investigations, and holding hearings insofar as those powers are
21given by statute to the commission.
22(e) The decisions and actions of the commission, with respect
23to exercising its authority and carrying out its duties under this
24chapter, or any other applicable law, are not subject to review by
25the Secretary of
begin delete Business, Consumer Services, and Housing,end delete
26 but are final within the limits
27provided by this chapter.
28(f) The Legislature further declares that the highest level of
29 service that the individuals appointed to the commission can
30provide to the residents of California is to offer professional,
31unbiased, scientifically based advice to the Governor and the
32Legislature. To maintain this quality of service, it is imperative
33that the commission retain its functional autonomy and access to
34the Governor and the Legislature. As such, the commission shall
35retain its existing authority to issue reports, publications, and
36literature, as well as to sponsor legislation, and to take official
37positions on proposed state and federal legislation.
Section 11546.1 of the Government Code is amended
The Department of Technology shall improve the
2governance and implementation of information technology by
3standardizing reporting relationships, roles, and responsibilities
4for setting information technology priorities.
5(a) (1) Each state agency shall have a chief information officer
6who is appointed by the head of the state agency, or by the head’s
7designee, subject to the approval of the Department of Technology.
8(2) A chief information officer appointed under this subdivision
9shall do all of the following:
10(A) Oversee the information technology portfolio and
11information technology services within his or her state agency
12through the operational oversight of information technology
13budgets of departments, boards, bureaus, and offices within the
15(B) Develop the enterprise architecture for his or her state
16agency, subject to the review and approval of the Department of
17Technology, to rationalize, standardize, and consolidate
18information technology applications, assets, infrastructure, data,
19and procedures for all departments, boards, bureaus, and offices
20within the state agency.
21(C) Ensure that all departments, boards, bureaus, and offices
22within the state agency are in compliance with the state information
24(b) (1) Each state entity shall have a chief information officer
25who is appointed by the head of the state entity.
26(2) A chief
information officer appointed under this subdivision
27shall do all of the following:
28(A) Supervise all information technology and
29telecommunications activities within his or her state entity,
30including, but not limited to, information technology, information
31security, and telecommunications personnel, contractors, systems,
32assets, projects, purchases, and contracts.
33(B) Ensure the entity conforms with state information technology
34and telecommunications policy and enterprise architecture.
35(c) Each state agency shall have an information security officer
36appointed by the head of the state agency, or the head’s designee,
37subject to the approval by the Department of Technology. The
38state agency’s information security officer appointed under this
39subdivision shall report to the state agency’s chief information
P27 1(d) Each state entity shall have an information security officer
2who is appointed by the head of the state entity. An information
3security officer shall report to the chief information officer of his
4or her state entity. The Department of Technology shall develop
5specific qualification criteria for an information security officer.
6If a state entity cannot fund a position for an information security
7officer, the entity’s chief information officer shall perform the
8duties assigned to the information security officer. The chief
9information officer shall coordinate with the Department of
10Technology for any necessary support.
11(e) (1) For purposes of this section, “state agency” means the
12Transportation Agency, Department of Corrections and
13Rehabilitation, Department of Veterans Affairs,
begin delete Business,
14Consumer Services, and Housingend delete
15 Agency, Natural Resources Agency, California Health and Human
16Services Agency, California Environmental Protection Agency,
17Labor and Workforce Development Agency,
begin delete andend delete Department of
begin delete Agriculture.end delete
19(2) For purposes of this section, “state entity” means an entity
20within the executive branch that is under the direct authority of
21the Governor, including, but not limited to, all departments, boards,
22bureaus, commissions, councils, and offices that are not defined
23as a “state agency” pursuant to paragraph (1).
24(f) A state entity that is not defined under subdivision (e) may
25voluntarily comply with any of the requirements of Sections
2611546.2 and 11546.3 and may request assistance from the
27Department of Technology to do so.
Section 11550 of the Government Code is amended
(a) Effective January 1, 1988, an annual salary of
31ninety-one thousand fifty-four dollars ($91,054) shall be paid to
32each of the following:
33(1) Director of Finance.
34(2) Secretary of Transportation.
35(3) Secretary of the Natural Resources Agency.
36(4) Secretary of California Health and Human Services.
37(5) Secretary of
begin delete Business, Consumer Services, and Housing.end delete
39(6) Commissioner of the California Highway Patrol.
P28 1(7) Secretary of the Department of Corrections and
3(8) Secretary of Food and Agriculture.
4(9) Secretary of Veterans Affairs.
5(10) Secretary of Labor and Workforce Development.
6(11) Secretary for Environmental Protection.
7(12) Secretary of Government Operations.
9(b) The annual compensation provided by this section shall be
10increased in any fiscal year in which a general salary increase is
11provided for state employees. The amount of the increase provided
12by this section shall be comparable to, but shall not exceed, the
13percentage of the general salary increases provided for state
14employees during that fiscal year.
Section 12800 of the Government Code is amended
(a) There are in the state government the following
begin delete Business, Consumer Services, and Housing;end delete Transportation; California Environmental
20Protection; California Health and Human Services; Labor and
21Workforce Development; Natural Resources; Government
22Operations; and Corrections and Rehabilitation.
23(b) The secretary of an agency shall be generally responsible
24for the sound fiscal management of each department, office, or
25 other unit within the agency. The secretary shall review and
26approve the proposed budget of each department, office, or other
27unit. The secretary shall hold the head of each department, office,
28or other unit responsible for management control over the
29administrative, fiscal, and program performance of his or her
30department, office, or other unit. The secretary shall review the
31operations and evaluate the performance at appropriate intervals
32of each department, office, or other unit, and shall seek continually
33to improve the organization structure, the operating policies, and
34the management information systems of each department, office,
35or other unit.
Section 12804 of the Government Code, as added by
37Section 12 of Chapter 147 of the Statutes of 2012, is amended to
(a) There is in the state government the
begin delete Business,
2Consumer Services, and Housingend delete
begin delete Business, Consumer Services, and Housingend delete Agency shall consist of the following: the
6Department of Consumer Affairs,
begin delete the Department of Housing and
the Department of Fair Employment
7Community Development,end delete
8and Housing, the Department of Business Oversight, the
9Department of Alcoholic Beverage Control, the Alcoholic Beverage
10Control Appeals Board, the California Horse Racing Board, and
11the Alfred E. Alquist Seismic Safety Commission.
Section 12804.5 of the Government Code is amended
The Secretary of
begin delete Business, Consumer Services, and is hereby authorized to
16develop programs for technical and fiscal assistance to facilitate
17nonprofit, self-help community vegetable gardens and related
Section 12815 is added to the Government Code, to
(a) There is hereby established in state government a
22Housing Agency. The Housing Agency shall be under the
23supervision of the Secretary of Housing, who shall be appointed
24and serve as described in Section 12801.
25(b) The Housing Agency consists of the following:
26(1) The Department of Housing and Community Development.
27(2) The Department of Real Estate.
28(3) The Department of Real Estate Finance.
29(4) The Contractor’s State Licensing Board.
30(5) The Structural Pest Control Board.
Section 12855 of the Government Code is amended
For the purpose of this chapter, “agency” means the
begin delete Business, Consumer Services, and Housingend delete Agency, the California Environmental Protection Agency,
36the California Health and Human Services Agency, the Natural
37Resources Agency, the Labor and Workforce Development
38Agency, the Government Operations Agency, the Transportation
39Agency, or the Corrections and Rehabilitation
P30 1Agency, and “secretary” means the secretary of any
begin delete such agency.end delete
Section 12856 of the Government Code is amended
(a) The Governor, upon the recommendation of the
begin delete Business, Consumer Services, and Housing,end delete may appoint up to three deputies for the
9(b) In addition to any other provision of law, the Secretary of
begin delete Business, Consumer Services, and Housingend delete may appoint an assistant, who is exempt from the civil
12service laws. The secretary shall prescribe the duties of the
13appointed assistant and shall fix the salary of such assistant subject
14to the approval of the Director of Finance. The appointed assistant
15shall serve at the pleasure of the secretary.
Section 12895 of the Government Code is amended
(a) There is in the
begin delete Business, Consumer Services, and Agency a Department
20of Business Oversight containing the Division of Corporations,
21which has the responsibility for administering various laws. In
22order to effectively support the Division of Corporations in the
23administration of these laws, there is hereby established the State
24Corporations Fund. All expenses and salaries of the Division of
25Corporations shall be paid out of the State Corporations Fund.
26Therefore, notwithstanding any provision of any law administered
27by the Division of Corporations declaring that fees,
28reimbursements, assessments, or other money or amounts charged
29and collected by the Division of Corporations under these laws
30are to be delivered or transmitted to the Treasurer and deposited
31to the credit of the General Fund, all fees, reimbursements,
32assessments, and other money or amounts charged and collected
33under these laws shall be delivered or transmitted to the Treasurer
34and deposited to the credit of the State Corporations Fund.
35(b) Funds appropriated from the State Corporations Fund and
36made available for expenditure for any law or program of the
37Division of Corporations may come from the following:
38(1) Fees and any other amounts charged and collected pursuant
39to Section 25608 of the Corporations Code, except for fees and
P31 1other amounts charged and collected pursuant to subdivisions (o)
2to (r), inclusive, of Section 25608 of the Corporations Code.
3(2) Fees collected pursuant to subdivisions (a), (b), (c), and (d)
4of Section 25608.1 of the Corporations Code.
Section 12901 of the Government Code is amended
There is in the state government, in the
begin delete Business,
8Consumer Services, and Housingend delete
9 Agency, the Department of Fair Employment and Housing. The
10department is under the direction of an executive officer known
11as the Director of Fair Employment and Housing, who is appointed
12by the Governor, subject to confirmation by the Senate, and who
13holds office at the pleasure of the Governor. The annual salary of
14the director is provided for by Chapter 6 (commencing with Section
1511550) of Part 1 of Division 3 of Title 2.
Section 12944 of the Government Code is amended
(a) It shall be unlawful for a licensing board to require
19any examination or establish any other qualification for licensing
20that has an adverse impact on any class by virtue of its race, creed,
21color, national origin or ancestry, sex, gender, gender identity,
22gender expression, age, medical condition, genetic information,
23physical disability, mental disability, or sexual orientation, unless
24the practice can be demonstrated to be job related.
25Where the commission, after hearing, determines that an
26examination is unlawful under this subdivision, the licensing board
27may continue to use and rely on the examination until such time
28as judicial review by the superior court of the determination is
30If an examination or other qualification for
31determined to be unlawful under this section, that determination
32shall not void, limit, repeal, or otherwise affect any right, privilege,
33status, or responsibility previously conferred upon any person by
34the examination or by a license issued in reliance on the
35examination or qualification.
36(b) It shall be unlawful for a licensing board to fail or refuse to
37make reasonable accommodation to an individual’s mental or
38physical disability or medical condition.
39(c) It shall be unlawful for any licensing board, unless
40specifically acting in accordance with federal equal employment
P32 1opportunity guidelines or regulations approved by the commission,
2to print or circulate or cause to be printed or circulated any
3publication, or to make any non-job-related inquiry, either verbal
4or through use of an application form, which expresses, directly
5or indirectly, any limitation, specification, or discrimination as to
6race, religious creed, color, national origin, ancestry, physical
7disability, mental disability, medical condition, genetic information,
8sex, gender, gender identity, gender expression, age, or sexual
9orientation or any intent to make any such limitation, specification,
10or discrimination. Nothing in this subdivision shall prohibit any
11licensing board from making, in connection with prospective
12licensure or certification, an inquiry as to, or a request for
13information regarding, the physical fitness of applicants if that
14inquiry or request for information is directly related and pertinent
15to the license or the licensed position the applicant is applying for.
16Nothing in this subdivision shall prohibit any licensing board, in
17connection with prospective examinations, licensure, or
18certification, from inviting individuals with physical or mental
19disabilities to request reasonable accommodations or from making
20inquiries related to reasonable accommodations.
21(d) It is unlawful for a licensing board to discriminate against
22any person because the person has filed a complaint, testified, or
23assisted in any proceeding under this part.
24(e) It is unlawful for any licensing board to fail to keep records
25of applications for licensing or certification for a period of two
26years following the date of receipt of the applications.
27(f) As used in this section, “licensing board” means any state
28board, agency, or authority in the
begin delete Business, Consumer Services, Agency that has the authority to grant licenses or
29and Housingend delete
31certificates which are prerequisites to employment eligibility or
Section 50400 of the Health and Safety Code is
34amended to read:
The Department of Housing and Community
36Development is hereby continued in existence in the
begin delete Business, Housing Agency.
37Consumer Services, andend delete
Section 50407.5 of the Health and Safety Code is
39amended to read:
Notwithstanding the transfer of the department from
2the Business, Transportation, and Housing Agency to the Business,
3Consumer Services, and Housing Agency, the department, the Department of
6Transportation, and the California Transportation Commission
7shall coordinate state housing and transportation policies and
8programs to help achieve state and regional planning priorities and
9to maximize cobenefits of infrastructure investments.
Section 50901 of the Health and Safety Code is
11amended to read:
The agency shall be administered by a board of directors
13consisting of 13 voting members, including a chairperson selected
14by the Governor from among his or her appointees. The Treasurer;
15the Secretary of
begin delete Business, Consumer Services, andend delete Housing; the
16Director of Housing and Community Development; and the
17Secretary of Veterans Affairs, or their designees, shall be members,
18in addition to seven members appointed by the Governor, one
19member appointed by the Speaker of the Assembly, and one
20member appointed by the Senate Committee on Rules. The Director
21of Finance, the Director of Planning and Research, and the
22executive director of the agency shall serve as nonvoting ex officio
23members of the board.
Section 50913 of the Health and Safety Code is
25amended to read:
For its activities under this division, the executive
27director shall prepare a preliminary budget on or before December
281 of each year for the ensuing fiscal year to be reviewed by the
begin delete Business, Consumer Services, andend delete Housing, the
30Director of Finance, and the Joint Legislative Budget Committee.
Section 12340.12 is added to the Insurance Code, to
“Director” means the Director of Real Estate
Section 12640.02 of the Insurance Code is amended
The definitions set forth in this article shall govern
38the construction of the terms used in this chapter but shall not
39affect any other provisions of this code.
40(a) “Mortgage guaranty insurance” means:
P34 1(1) Insurance against financial loss by reason of nonpayment
2of principal, interest, and other sums agreed to be paid under the
3terms of any note or bond or other evidence of indebtedness secured
4by a mortgage, deed of trust, or other instrument constituting a
5first lien or charge on real estate, provided the improvement on
6the real estate is a residential building or a condominium unit or
7buildings designed for occupancy by not more than four families.
8(2) Insurance against financial loss by reason of nonpayment
9of principal, interest, and other sums agreed to be paid under the
10terms of any note or bond or other evidence of indebtedness secured
11by a mortgage, deed of trust, or other instrument constituting a
12junior lien or charge on real estate, provided the improvement on
13the real estate is a residential building or a condominium unit or
14building designed for occupancy by not more than four families.
15(3) Insurance against financial loss by reason of nonpayment
16of principal, interest, and other sums agreed to be paid under the
17terms of any note or bond or other evidence of indebtedness secured
18by a mortgage, deed of trust, or other instrument constituting a
19lien or charge on real estate, provided the improvement on the real
20estate is a building or buildings designed for occupancy by five or
21more families or designed to be occupied for industrial or
23(4) Insurance against financial loss by reason of nonpayment
24of rent and other sums agreed to be paid under the terms of a
25written lease for the possession, use, or occupancy of real estate,
26provided the improvement on the real estate is a building or
27buildings designed to be occupied for industrial or commercial
29(b) (1) “Authorized real estate security” for the purposes of this
30chapter means either (A) real estate, plus the balance of any
31pledged cash account, pledged borrower retirement account, or
32collateralized guaranty agreement contracted for by parents, blood
33relatives, employers, or nonprofit corporations for the benefit of
34the borrower; or (B) real estate securing a note, bond, or other
35evidence of indebtedness by a junior mortgage, deed of trust, or
36other instrument constituting a junior lien or charge on the real
37estate, which, when combined with all existing mortgage loan
38amounts, does not exceed a total indebtedness equal to 103 percent
39of the fair market value of the real estate at the time the junior loan
40is made, provided that, in determining the foregoing 103-percent
P35 1limitation, if the loan securing the junior lien is an equity line of
2credit loan, the full amount of the line of credit to be secured by
3the junior lien shall be considered the amount of the loan, and
4further provided, in all cases that both of the following are true:
5(i) The real estate loan secured in this manner is any type of
6loan that a bank, savings association, mortgage banker, credit
7union, mortgage loan broker, or insurance company, which is
8supervised and regulated by a department of this state or an agency
9of the federal government, is authorized to make or arrange, or
10would be authorized to make or arrange, disregarding any
11requirement applicable to an institution that the amount of the loan
12not exceed a certain percentage of the value of the real estate.
13(ii) The improvement on the real estate is a building or buildings
14designed for occupancy as specified by paragraphs (1), (2), and
15(3) of subdivision (a).
16(2) The lien on the real estate may be subject and subordinate
17to the following:
18(A) The lien of any public bond, assessment, or tax, when no
19installment, call, or payment of or under the bond, assessment, or
20tax is delinquent.
21(B) Outstanding mineral, oil or timber rights, rights-of-way,
22easements or rights-of-way or support, sewer rights, building
23restrictions or other restrictions or covenants, conditions or
24regulations of use, or outstanding leases upon the real property
25under which rents or profits are reserved to the owner thereof.
26(3) “Authorized real estate security” also means a stock or
27membership certificate issued to a tenant-stockholder or
28resident-member by a completed fee simple cooperative housing
29corporation, as defined in Section 17265 of the Revenue and
30Taxation Code and Section 216 of the United States Internal
32(c) “Contingency reserve” means an additional premium reserve
33established for the protection of policyholders against the effect
34of adverse economic cycles.
35(d) “Policyholders surplus” means the aggregate of capital,
36surplus, and contingency reserve.