BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2330|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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THIRD READING
Bill No: AB 2330
Author: Ridley-Thomas (D)
Amended: 8/19/16 in Senate
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 6/20/16
AYES: Hill, Bates, Block, Gaines, Galgiani, Hernandez,
Jackson, Mendoza, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/1/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
ASSEMBLY FLOOR: 80-0, 5/31/16 - See last page for vote
SUBJECT: Real estate licensees
SOURCE: California Association of Realtors
DIGEST: This bill requires the Real Estate Commissioner to
disclose on the Bureau of Real Estate's Web site for every
licensee, whether that licensee is an associate licensee;
requires the Real Estate Commissioner to identify, if the
associate licensee is also a broker, every responsible broker
with whom the associate licensee is contractually associated;
requires the responsible broker to report the employment
relationship between themselves and the associate licensee to
the Bureau of Real Estate; adds a delayed operative date to
January 1, 2018; and adds double jointing language with AB 1807
(Bonta).
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Senate Floor Amendments of 8/19/16 add a delayed operative date
to January 1, 2018, and add double jointing language with AB
1807 (Bonta).
ANALYSIS:
Existing law:
1) Establishes within the Department of Consumer Affairs the
Bureau of Real Estate (CalBRE), which regulates the licensing
of real estate agents, brokers, and mortgage loan
originators. (Business and Professions Code (BPC) § 10000 et
seq.)
2) Defines a "real estate broker" as a person who, among other
things, sells, buys, or rents real property for another for
compensation, as specified.
(BPC §§ 10131-10131.6)
3) Defines a "real estate salesperson" as a natural person who
is employed by a licensed real estate broker for
compensation. (BPC §§ 10017; 10132)
4) Defines a "responsible broker" to mean the broker responsible
for the exercise of control and supervision of licensed
salespersons. (BPC § 10159.7(a)(4))
5) Defines an associate licensee as a person who is licensed as
a real estate broker or salesperson and who acts under the
supervision of a broker and as the broker's agent in
connection with real estate functions. (Civil Code §
2079.13)
6) Authorizes a real estate broker acting in the capacity of a
salesman to another broker under written agreement to perform
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acts for which a license is required on behalf of the
employing broker at any place of business at which the
employing broker is currently licensed to perform acts for
which a real estate license is required. (Title 10
California Code of Regulations (CCR) § 2728.5)
7) Requires every broker, except a broker acting in the capacity
of a salesperson to another broker under written agreement,
to maintain on file with the Real Estate Commissioner
(Commissioner) the address of his principal place of business
for brokerage activities, the address of each branch business
office and his current mailing address, if different from the
business address.
(10 CCR § 2715)
8) Requires every broker who is acting in the capacity of a
salesperson to another broker under written agreement to
maintain on file with the Commissioner the address of the
business location where he expects to conduct most of the
activities for which a license is required and his current
mailing address.
(10 CCR § 2715)
9) Requires the Commissioner of the CalBRE to post on the
Internet non-confidential license information of every
salesperson or broker licensed by the CalBRE. (BPC § 10083.2)
This bill:
1) Requires the Commissioner to disclose on the CalBRE's Web
site for every licensee, whether that licensee is an
associate licensee.
2) Requires the Commissioner to identify on its Web site, if the
associate licensee is also a broker, every responsible broker
with whom the associate licensee is contractually associated.
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3) Requires the responsible broker to report the employment
relationship between themselves and the associate licensee to
the CalBRE.
4) Adds a delayed operative date to January 1, 2018.
5) Adds double jointing language with AB 1807 (Bonta).
6) Makes other technical and clarifying changes.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
According to the Senate Appropriations Committee, this bill will
incur "one-time costs of about $140,000 per year for two years
and ongoing costs of $80,000 per year to collect the required
information and make it available on the Bureau's website (Real
Estate Fund)."
SUPPORT: (Verified8/22/16)
California Association of Realtors (source)
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OPPOSITION: (Verified8/22/16)
None received
ARGUMENTS IN SUPPORT: The California Association of Realtors
writes in support, "AB 2330 makes a simple, but important,
change in the way real estate licensees are shown on the
[CalBRE] license verification website. In short, the bill
requires that a salesperson who also maintains a broker's
license can still be linked to his or her responsible broker.
The current system makes it difficult for consumers to verify
who is actually in charge of the licensee, and the change will
greatly simplify that task."
ASSEMBLY FLOOR: 80-0, 5/31/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,
Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,
Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth
Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,
Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper,
Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim,
Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,
Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,
O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,
Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104
8/22/16 22:42:33
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