Senate Bill No. 146

Introduced by Senator Galgiani

January 28, 2015

An act to amend Sections 10159.5, 10159.6, and 10159.7 of the Business and Professions Code, relating to real estate licensees, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

SB 146, as introduced, Galgiani. Real estate licensees: fictitious business names: team names.

Existing 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 an applicant who desires to have his or her license issued under a fictitious business name to file with his or her application a certified copy of his or her fictitious business name statement. Existing law authorizes a responsible broker, as defined, by contract, to permit a salesperson to apply for a fictitious business name with the appropriate county, and to maintain ownership of a fictitious business name. Existing law defines a team name and provides, for purposes of the provisions described above, that a team name is not a fictitious business name if specified criteria apply.

This bill would provide that a team name is also not a fictitious business name for purposes of any other law when the criteria apply. This bill would make technical and clarifying changes to the provisions described above.

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

SECTION 1.  

Section 10159.5 of the Business and Professions
Code is amended to read:

10159.5.  

(a) Every person applying for a license under this
chapter who desires to have the license issued under a fictitious
business name shall file with his or her application a certified copy
of his or her fictitious business name statement filed with the
county clerk pursuant to Chapter 5 (commencing with Section
17900) of Part 3 of Division 7.

(1) A responsible broker may, by contract, permit begin delete a end delete begin insert the end insert
salesperson to do all of the following:

(A) File an application on behalf of a responsible broker with
a county clerk to obtain a fictitious business name.

(B) Deliver to the bureau an application, signed by the
responsible broker, requesting the bureau’s approval to use a county
approved fictitious business name that shall be identified with the
begin insert responsible end insert broker’s license number.

(C) Pay for any fees associated with filing an application with
a county or the bureau to obtain or use a fictitious business name.

(D) Maintain ownership of a fictitious business name, as defined
in paragraph (2) of subdivision (a) of Section 10159.7, that may
be used subject to the control of begin delete a end delete begin insert the end insert responsible broker.

(b) (1) A salesperson using a fictitious business name authorized
by subdivision (a), shall use that name only as permitted by his or
her responsible broker.

(2) This section does not change a real estate broker’s duties
under this division to supervise a salesperson.

(c) A person applying to a county for a fictitious business name
pursuant to subdivision (a) may file his or her application in the
county or counties where the fictitious business name will be used.

(d)  begin delete Marketing end delete begin insert Advertising end insert and solicitation materials, including
business cards, print or electronic media and “for sale” signage,
using a fictitious business name obtained in accordance with
subdivision (a) shall include the responsible broker’s identity in a
manner equally as prominent as the fictitious business name.

(e) Notwithstanding subdivision (b) of Section 10140.6,
advertising, including print or electronic media and “for sale”
signage, containing a fictitious business name obtained in
accordance with subdivision (a) shall include the begin delete salesperson’s end delete
name and license number begin insert of the salesperson who is using the
fictitious business name end insert .

(f) Notwithstanding Section 10185, a violation of this section
is not a misdemeanor.

SEC. 2.  

Section 10159.6 of the Business and Professions Code
is amended to read:

10159.6.  

All of the following apply to use of a team name, as
defined in paragraph (5) of subdivision (a) of Section 10159.7:

(a) Notwithstanding subdivision (b) of Section 10140.6,
advertising begin insert and solicitation materials end insert that begin delete contains end delete begin insert contain end insert a team
name, including print or electronic media and “for sale” signage,
shall include the licensee’s name and license number in all
advertising, and shall be displayed in a conspicuous manner.

(b) The responsible broker’s identity shall be displayed as
prominently and conspicuously as the team name in all advertising.

(c) The advertising begin delete material end delete begin insert and solicitation materials end insert shall not
contain terms that imply the existence of a real estate entity
independent of the responsible broker.

(d) Notwithstanding Section 10185, a violation of this section
is not a misdemeanor.

SEC. 3.  

Section 10159.7 of the Business and Professions Code
is amended to read:

10159.7.  

(a) For the purposes of this article, the following
definitions shall apply:

(1)  begin delete “Broker end delete begin insert “Responsible broker’s end insert identity” means the name
under which the begin insert responsible end insert broker operates or conducts business
and may include a sole proprietorship or business entity name.

(2) “Fictitious business name” means a professional identity or
brand name under which activity requiring a real estate license is
conducted and the use of which is subject to approval by the bureau
pursuant to Section 10159.5.

(3) “Ownership of a fictitious business name” means the right
to use, renew, and control the use of a fictitious business name
obtained in accordance with Section 10159.5.

(4) “Responsible broker” means the broker responsible for the
exercise of control and supervision of salespersons under Section
10159.2, or a licensee subject to discipline under subdivision (h)
of Section 10177 for failure to supervise activity requiring a real
estate license. The supervision of a salesperson required under this
part begin insert or any other law end insert is limited to regulatory compliance and
consumer protection.

(5) “Team name” means a professional identity or brand name
used by a salesperson, and one or more other real estate licensees,
for the provision of real estate licensed services. Notwithstanding
any other law, the use of a team name does not require that a
separate license be issued for that name pursuant to Section
10159.5. A team name does not constitute a fictitious business
name for purposes of this part begin insert or any other law end insert if all of the
following apply:

(A) The name is used by two or more real estate licensees who
work together to provide licensed real estate services, or who
represent themselves to the public as being a part of a team, group,
or association to provide those services.

(B) The name includes the surname of at least one of the licensee
members of the team, group, or association in conjunction with
the term “associates,” “group,” or “team.”

(C) The name does not include any term or terms, such as “real
estate broker,” “real estate brokerage,” “broker,” or “brokerage”
or any other term that would lead a member of the public to believe
that the team is offering real estate brokerage services, that imply
or suggest the existence of a real estate entity independent of a
responsible broker.

(b) Nothing in this section changes a real estate broker’s duties
under this division to supervise a salesperson.

SEC. 4.  

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order to ensure that the law regarding “team names” is applied
consistently at the state and local level and that a “team name”
does not constitute a fictitious business name for purposes of any
law, it is necessary that this act take effect immediately.