BILL ANALYSIS                                                                                                                                                                                                    

                                                                    AB 1650

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          Date of Hearing:  April 13, 2016


                               Lorena Gonzalez, Chair

          1650 (Frazier) - As Amended March 28, 2016

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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No

          SUMMARY:  This bill, beginning January 1, 2018, revises the  
          disclosure requirements for real estate licensees with regard to  
          solicitation materials. Specifically, this bill:  

          1)Requires a real estate licensee to disclose his or her name,  
            license number, and responsible broker's identity on  


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            solicitation materials intended to be the first point of  
            contact with consumers and on real property purchase  
            agreements when acting as an agent in those transactions.

          2)Expands the definition of "solicitation materials intended to  
            be the first point of contact with consumers" to additionally  
            include advertisements on television, in print, or electronic  
            media; "for sale," rent, lease, "open house," and directional  
            signs, and other materials designed to solicit the creation of  
            a professional relationship between the licensee and a  

          3)Excludes from these provisions, "for sale," rent, lease, "open  
            house" and directional signs displaying only the responsible  
            broker's identity, or do not contain a reference to a real  
            estate licensee's name.

          FISCAL EFFECT:

          Minor and absorbable costs to the Bureau of Real Estate to  
          modify existing regulations.


          1)Purpose.  According to the author, "Current law has created  
            confusion about what identity information is required to be  
            included on real estate advertising materials.  Existing law  
            varies greatly depending on the type of advertisement (i.e.  
            'for sale' signs, print and electronic media, business cards,  
            brochures, etc.) and the name being used by the licensee (i.e.  
            given name, nickname, team name, etc.).  This bill will  
            require a licensee conducting advertising of any kind to also  
            include their California Bureau of Real Estate (BRE) license  
            number and responsible broker's identity.  'Open house' and  
            directional signs without a reference to agent name or  
            branding would be exempt from this requirement.  Creating a  


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            uniform advertising standard for real estate licensees would  
            alleviate the existing competing standards and would serve to  
            create more transparency for consumers in the market place."

          2)Background.  Prior to 2008, there were no disclosure  
            requirements for real estate advertisements, other than to  
            state that the services being advertised require a real estate  
            license. After the onset of the housing market crisis, a  
            licensee was required to disclose his or her license number on  
            specified solicitation materials for consumer protection  
            purposes (SB 1461 (Negrete-McLeod), Chapter 284, Statutes of  
            2008). SB 1461 expressly excluded electronic and print  
            advertisements and "for sale" signs from this requirement. 

            AB 2018 (Bocanegra), Chapter 892, Statutes of 2014 clarified  
            and expanded disclosure requirements for real estate  
            advertisements under "fictitious business names" and "team  
            names" to include the responsible broker's identity.  It also  
            expanded the scope of advertising and solicitation materials  
            to include online and print advertisements, as well as "for  
            sale", rent, and lease signs.  The requirements of AB 2018,  
            however, do not apply to real estate licensees advertising  
            under their given names.  Supporters argue that the  
            inconsistent standards have created some confusion among  

          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  


                                                                    AB 1650

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