Amended in Assembly April 4, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1807

Introduced by Assembly Member Bonta

February 8, 2016

An act to amend Section begin delete 10176.1 end delete begin insert 10083.2 end insert of the Business and Professions Code, relating to begin delete escrow agents. end delete begin insert real estate licensees. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1807, as amended, Bonta. begin delete Escrow agents. end delete begin insert Real estate licensees. end insert

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The Real Estate Law provides for the licensure and regulation of real estate brokers and real estate salespersons by the Bureau of Real Estate headed by the Real Estate Commissioner. Existing law requires the commissioner to provide on the Internet specific information regarding the status of every license issued by the department.

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This bill would require the commissioner, upon petition by a licensee accompanied by a specified fee, to remove from the posting of discipline an item that through passage of time and evidence of rehabilitation is no longer required to prevent a credible risk to members of the public utilizing licensed activity of the licensee.

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Existing law subjects the escrow industry to various laws and regulations under the oversight of the Real Estate Commissioner, the Commissioner of Business Oversight, or the Insurance Commissioner. Existing law requires the commissioners to notify each other when taking enforcement or disciplinary action related to certain escrow services. Existing law requires the Bureau of Real Estate to maintain an Internet Web site that displays a database of individuals who have been subject to disciplinary action related to the escrow industry.

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This bill would limit the time period for which the Bureau of Real Estate’s Internet Web site is required to display disciplinary actions taken against a licensee to 10 years or a lesser as the Real Estate Commissioner deems to be in the best interest of the public.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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The Legislature finds and declares the following:

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(a) It is appropriate for the Bureau of Real Estate to continue
to report on its license verification Internet Web page when
discipline has been imposed upon a licensee for conduct that
indicates a credible risk of financial or physical harm to members
of the public in the future.

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(b) It is appropriate for the Bureau of Real Estate to consider
and grant on a case-by-case basis a licensee’s petition to
discontinue the reporting of past disciplinary actions when the
petitioning licensee has demonstrated to the satisfaction of the
Real Estate Commissioner that the continued reporting is no longer
required in order to avoid or reduce such a risk to the public.

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(c) The Bureau of Real Estate may require a petitioner to pay
in advance of consideration a fee to defray costs associated with
consideration of the petition.

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(d) Nothing in this act shall be construed to authorize or require
the destruction of public records maintained pursuant to the
California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code),
or to refuse a request for production of such a record.

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(e) The Legislature intends by this act to establish a process by
which a licensee may petition the Bureau of Real Estate to remove
a notice of past discipline from the license verification Internet
Web page of the bureau.

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begin insert SEC. 2. end insert   

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begin insert Section 10083.2 of the end insert begin insert Business and Professions Code end insert

begin insert is amended to read: end insert

10083.2.  

(a) The commissioner shall provide on the Internet
information regarding the status of every license issued by the
department in accordance with the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1 of the Government Code) and the Information Practices
Act of 1977 (Chapter 1 (commencing with Section 1798) of Title
1.8 of Part 4 of Division 3 of the Civil Code). The public
information to be provided on the Internet shall include information
on suspensions and revocations of licenses issued by the
department and accusations filed pursuant to the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code) relative
to persons or businesses subject to licensure or regulation by the
department. The information shall not include personal information,
including home telephone number, date of birth, or social security
number. The commissioner shall disclose a licensee’s address of
record. However, the commissioner shall allow a licensee to
provide a post office box number or other alternate address, instead
of his or her home address, as the address of record. This section
shall not preclude the commissioner from also requiring a licensee
who has provided a post office box number or other alternative
mailing address as his or her address of record to provide a physical
business address or residence address only for the department’s
internal administrative use and not for disclosure as the licensee’s
address of record or disclosure on the Internet.

(b) For purposes of this section, “Internet” has the meaning set
forth in paragraph (6) of subdivision (f) of Section 17538.

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(c) Upon petition by a licensee accompanied by a fee sufficient
to defray costs associated with consideration of a petition, the
commissioner shall remove from the posting of discipline described
in subdivision (a), an item that through passage of time and
evidence of rehabilitation is no longer required in order to prevent
a credible risk to members of the public utilizing licensed activity
of the licensee.

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SECTION 1.  

Section 10176.1 of the Business and Professions
Code is amended to read:

10176.1.  

(a) (1) Whenever the commissioner takes any
enforcement or disciplinary action against a licensee, and the
enforcement or disciplinary action is related to escrow services
provided pursuant to paragraph (4) of subdivision (a) of Section
17006 of the Financial Code, upon the action becoming final the
commissioner shall notify the Insurance Commissioner and the
Commissioner of Business Oversight of the action or actions taken.
The purpose of this notification is to alert the departments that
enforcement or disciplinary action has been taken, if the licensee
seeks or obtains employment with entities regulated by the
departments.

(2) The commissioner shall provide the Insurance Commissioner
and the Commissioner of Business Oversight, in addition to the
notification of the action taken, with a copy of the written
accusation, statement of issues, or order issued or filed in the matter
and, at the request of the Insurance Commissioner or the
Commissioner of Business Oversight, with any underlying factual
material relevant to the enforcement or disciplinary action. Any
confidential information provided by the commissioner to the
Insurance Commissioner or the Commissioner of Business
Oversight shall not be made public pursuant to this section.
Notwithstanding any other provision of law, the disclosure of any
underlying factual material to the Insurance Commissioner or the
Commissioner of Business Oversight shall not operate as a waiver
of confidentiality or any privilege that the commissioner may
assert.

(b) The commissioner shall establish and maintain, on the
Internet Web site maintained by the Bureau of Real Estate, a
database of its licensees, including those who have been subject
to any enforcement or disciplinary action that triggers the
notification requirements of this section for a period of 10 years
or a lesser time as the commissioner deems to be in the best interest
of the public. The database shall also contain a direct link to the
databases, described in Section 17423.1 of the Financial Code and
Section 12414.31 of the Insurance Code and required to be
maintained on the Internet Web sites of the Department of Business
Oversight and the Department of Insurance, respectively, of persons
who have been subject to enforcement or disciplinary action for
malfeasance or misconduct related to the escrow industry by the
Insurance Commissioner and the Commissioner of Business
Oversight.

(c) There shall be no liability on the part of, and no cause of
action of any nature shall arise against, the State of California, the
Bureau of Real Estate, the Real Estate Commissioner, any other
state agency, or any officer, agent, employee, consultant, or
contractor of the state, for the release of any false or unauthorized
information pursuant to this section, unless the release of that
information was done with knowledge and malice, or for the failure
to release any information pursuant to this section.

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