BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 2330|
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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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