Amended in Senate March 23, 2015

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 amended, 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 begin insert or for purposes of filing a fictitious business name statement with an application as described above end insert when the criteria apply. This bill would make technical and clarifying changes to the provisions described above.

begin insert

Existing law requires advertising and solicitation materials using a fictitious business name or that contain a team name to display the responsible broker’s identity, as provided. Existing law defines “responsible broker’s identity” to mean the name under which the responsible broker operates or conducts business.

end insert begin insert

This bill would revise the definition of “responsible broker’s identity” to mean a name under which the responsible broker operates or conducts business in general for the real estate firm as a whole and that does not include a fictitious business name or a team name owned or used solely by a salesperson or group of salespersons, and would provide that a responsible broker’s identity may include divisions of the real estate firm registered with the Bureau of Real Estate under the broker, as specified.

end insert

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)  begin insert (1) end insert begin insert   end insert 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.

begin delete

(1)

end delete

begin insert (2) end insert  A responsible broker may, by contract, permit the
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
responsible 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 the 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) Advertising 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 begin delete identity end delete begin insert identity, as
defined in paragraph (1) of subdivision (a) of Section 10159.7, end insert in
a manner equally as prominent as the fictitious business name.

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

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

(b) The responsible broker’s begin delete identity end delete begin insert identity, as defined in
paragraph (1) of subdivision (a) of Section 10159.7, end insert shall be
displayed as prominently and conspicuously as the team name in
all begin delete advertising. end delete begin insert advertising and solicitation materials. end insert

(c) The advertising and solicitation materials 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) “Responsible broker’s identity” means begin delete the end delete begin insert a end insert name under
which the responsible broker operates or conducts business begin delete and
may include a sole proprietorship or business entity name. end delete begin insert in
general for the real estate firm as a whole and that does not include
a fictitious business name pursuant to subdivision (a) of Section
10159.5 or a team name pursuant to paragraph (5) of subdivision
(a) of Section 10159.7 owned or used solely by a salesperson or
group of salespersons. Responsible broker’s identity may include
divisions of the real estate firm registered with the bureau under
the broker that are used for specialty or areas within the firm that
are available to all salespersons within that specialty area. end insert

(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 or any other law 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 or any other law begin insert or for purposes of
filing a fictitious business name statement with an application as
required by subdivision (a) of Section 10159.5 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.