SB 1196, as amended, Hill. Bureau of Real Estate: Bureau of Real Estate Appraisers.
Existing law, the Real Estate Law, provides for the licensure and regulation of real estate brokers and real estate salespersons by the Real Estate Commissioner, the chief officer of the Bureau of Real Estate within the Department of Consumer Affairs. That law authorizes the commissioner to suspend or revoke the license of a real estate licensee if the licensee has entered a plea of guilty or nolo contendere to, or been found guilty of, or been convicted of, a felony, or a crime substantially related to the qualifications, functions, or duties of a real estate licensee, and the time for appeal has elapsed or the judgment of conviction has been affirmed on appeal, or other conditions are met.
Existing law, the Real Estate Appraisers’ Licensing and Certification Law, provides for the licensure, certification, and regulation of real estate
appraisers and appraisal management companies by the Bureau of Real Estate Appraisers within the Department of Consumer Affairs, which is headed by the Chief of the Bureau of Real Estate Appraisers. That law requires the chief to adopt regulations governing the process and the procedure of applying for a real estate appraiser’s license and requires these regulations to include, among others, necessary experience or
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This bill would subject the Bureau of Real Estate and the Bureau of Real Estate Appraisers to review by the appropriate policy committees of the Legislature, as specified. The bill would further authorize the Real Estate Commissioner to suspend the license of a real estate licensee upon the entry of a guilty plea by the licensee to any of the crimes described above and would require the commissioner to rescind the suspension if the plea is withdrawn. The bill would further require the Chief of the Bureau of Real Estate Appraisers to require, as part of the educational requirements for applicants for licensure, the completion of a course on state and federal laws regulating the appraisal profession, as
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Fiscal committee: yes.
State-mandated local program:
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The people of the State of California do enact as follows:
Section 10050 of the Business and Professions
2Code is amended to read:
(a) (1) There is in the Department of Consumer Affairs
2a Bureau of Real Estate, the chief officer of which bureau is named
3the Real Estate Commissioner.
4(2) Notwithstanding any other law, the powers and duties of the
5bureau, as set forth in this part and Chapter 1 (commencing with
6Section 11000) of Part 2, shall be subject to review by the
7appropriate policy committees of the Legislature. The review shall
8be performed as if this part and that chapter were scheduled to be
9repealed as of January 1, 2021.
10(b) It shall be the principal responsibility of the commissioner
11to enforce all laws in this part and Chapter 1 (commencing with
12Section 11000) of Part 2 in a manner that achieves the maximum
13protection for the purchasers of real property and those persons
14dealing with real estate licensees.
15(c) Wherever the term “commissioner” is used in this division,
16it means the Real Estate Commissioner.
Section 10177 of the Business and Professions Code
18 is amended to read:
The commissioner may suspend or revoke the license
20of a real estate licensee, delay the renewal of a license of a real
21estate licensee, or deny the issuance of a license to an applicant,
22who has done any of the following, or may suspend or revoke the
23license of a corporation, delay the renewal of a license of a
24corporation, or deny the issuance of a license to a corporation, if
25an officer, director, or person owning or controlling 10 percent or
26more of the corporation’s stock has done any of the following:
27(a) Procured, or attempted to procure, a real estate license or
28license renewal, for himself or herself or a salesperson, by fraud,
29misrepresentation, or deceit, or by making a material misstatement
30of fact in an application for a real estate license, license renewal,
32(b) (1) Entered a plea of guilty or nolo contendere to, or been
33found guilty of, or been convicted of, a felony, or a crime
34substantially related to the qualifications, functions, or duties of a
35real estate licensee, and the time for appeal has elapsed or the
36judgment of conviction has been affirmed on appeal, irrespective
37of an order granting probation following that conviction,
38suspending the imposition of sentence, or of a subsequent order
39under Section 1203.4 of the Penal Code allowing that licensee to
P4 1withdraw his or her plea of guilty and to enter a plea of not guilty,
2or dismissing the accusation or information.
3(2) Notwithstanding paragraph (1), and with the recognition
4that sentencing may not occur for months or years following the
5entry of a guilty plea, the commissioner may suspend the license
6of a real estate licensee upon the entry by the licensee of a guilty
7plea to any of the crimes described in paragraph (1). If the guilty
8plea is withdrawn, the suspension shall be rescinded and the license
9reinstated to its status prior to the suspension. The bureau shall
10notify a person whose license is subject to suspension pursuant to
11this paragraph of his or her right to elect to have the issue of the
12suspension heard in accordance with Section 10100.
13(c) Knowingly authorized, directed, connived at, or aided in the
14publication, advertisement, distribution, or circulation of a material
15false statement or representation concerning his or her designation
16or certification of special education, credential, trade organization
17membership, or business, or concerning a business opportunity or
18a land or subdivision, as defined in Chapter 1 (commencing with
19Section 11000) of Part 2, offered for sale.
20(d) Willfully disregarded or violated the Real Estate Law (Part
211 (commencing with Section 10000)) or Chapter 1 (commencing
22with Section 11000) of Part 2 or the rules and regulations of the
23commissioner for the administration and enforcement of the Real
24Estate Law and Chapter 1 (commencing with Section 11000) of
26(e) Willfully used the term “realtor” or a trade name or insignia
27of membership in a real estate organization of which the licensee
28is not a member.
29(f) Acted or conducted himself or herself in a manner that would
30have warranted the denial of his or her application for a real estate
31license, or either had a license denied or had a license issued by
32another agency of this state, another state, or the federal
33government revoked or suspended for acts that, if done by a real
34estate licensee, would be grounds for the suspension or revocation
35of a California real estate license, if the action of denial, revocation,
36or suspension by the other agency or entity was taken only after
37giving the licensee or applicant fair notice of the charges, an
38opportunity for a hearing, and other due process protections
39comparable to the Administrative Procedure Act (Chapter 3.5
40(commencing with Section 11340), Chapter 4 (commencing with
P5 1Section 11370), and Chapter 5 (commencing with Section 11500)
2of Part 1 of Division 3 of Title 2 of the Government Code), and
3only upon an express finding of a violation of law by the agency
5(g) Demonstrated negligence or incompetence in performing
6an act for which he or she is required to hold a license.
7(h) As a broker licensee, failed to exercise reasonable
8supervision over the activities of his or her salespersons, or, as the
9officer designated by a corporate broker licensee, failed to exercise
10reasonable supervision and control of the activities of the
11corporation for which a real estate license is required.
12(i) Used his or her employment by a governmental agency in a
13capacity giving access to records, other than public records, in a
14manner that violates the confidential nature of the records.
15(j) Engaged in any other conduct, whether of the same or a
16different character than specified in this section, that constitutes
17fraud or dishonest dealing.
18(k) Violated any of the terms, conditions, restrictions, and
19limitations contained in an order granting a restricted license.
20(l) (1) Solicited or induced the sale, lease, or listing for sale or
21lease of residential property on the ground, wholly or in part, of
22loss of value, increase in crime, or decline of the quality of the
23schools due to the present or prospective entry into the
24neighborhood of a person or persons having a characteristic listed
25in subdivision (a) or (d) of Section 12955 of the Government Code,
26as those characteristics are defined in Sections 12926 and 12926.1,
27subdivision (m) and paragraph (1) of subdivision (p) of Section
2812955, and Section 12955.2 of the Government Code.
29(2) Notwithstanding paragraph (1), with respect to familial
30status, paragraph (1) shall not be construed to apply to housing for
31older persons, as defined in Section 12955.9 of the Government
32Code. With respect to familial status, nothing in paragraph (1)
33shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
34and 799.5 of the Civil Code, relating to housing for senior citizens.
35Subdivision (d) of Section 51 and Section 4760 of the Civil Code
36and subdivisions (n), (o), and (p) of Section 12955 of the
37Government Code shall apply to paragraph (1).
38(m) Violated the Franchise Investment Law (Division 5
39(commencing with Section 31000) of Title 4 of the Corporations
P6 1Code) or regulations of the Commissioner of Corporations
3(n) Violated the Corporate Securities Law of 1968 (Division 1
4(commencing with Section 25000) of Title 4 of the Corporations
5Code) or the regulations of the Commissioner of Corporations
7(o) Failed to disclose to the buyer of real property, in a
8transaction in which the licensee is an agent for the buyer, the
9 nature and extent of a licensee’s direct or indirect ownership
10interest in that real property. The direct or indirect ownership
11interest in the property by a person related to the licensee by blood
12or marriage, by an entity in which the licensee has an ownership
13interest, or by any other person with whom the licensee has a
14special relationship shall be disclosed to the buyer.
15(p) Violated Article 6 (commencing with Section 10237).
16(q) Violated or failed to comply with Chapter 2 (commencing
17with Section 2920) of Title 14 of Part 4 of Division 3 of the Civil
18Code, related to mortgages.
19If a real estate broker that is a corporation has not done any of
20the foregoing acts, either directly or through its employees, agents,
21officers, directors, or persons owning or controlling 10 percent or
22more of the corporation’s stock, the commissioner may not deny
23the issuance or delay the renewal of a real estate license to, or
24suspend or revoke the real estate license of, the corporation,
25provided that any offending officer, director, or stockholder, who
26has done any of the foregoing acts individually and not on behalf
27of the corporation, has been completely disassociated from any
28affiliation or ownership in the corporation. A decision by the
29commissioner to delay the renewal of a real estate license shall
30toll the expiration of that license until the results of any pending
31disciplinary actions against that licensee are final, or until the
32licensee voluntarily surrenders his, her, or its license, whichever
Section 11301 of the Business and Professions Code
35 is amended to read:
(a) (1) There is hereby created within the Department
37of Consumer Affairs a Bureau of Real Estate Appraisers to
38administer and enforce this part.
39(2) Notwithstanding any other law, the powers and duties of the
40bureau, as set forth in this part, shall be subject to review by the
P7 1appropriate policy committees of the Legislature. The review shall
2be performed as if this part were scheduled to be repealed as of
3January 1, 2021.
4(b) Whenever the term “Office of Real Estate Appraisers”
5appears in any other law, it means the “Bureau of Real Estate
No person shall engage in federally related real estate
10appraisal activity governed by this part or assume or use the title
11of or any title designation or abbreviation as a licensed appraiser
12in this state without
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13in Section 11302. Any person who willfully violates this provision
14is guilty of a public offense punishable by imprisonment pursuant
15to subdivision (h) of Section 1170 of the Penal Code, or in a county
16jail for not more than one year, or by a fine not exceeding ten
17thousand dollars ($10,000), or by both the imprisonment and fine.
18The possession of a license issued pursuant to this part does not
19preempt the application of other statutes including the requirement
20for specialized training or licensure pursuant to Article 3
21(commencing with Section 750) of Chapter 2.5 of Division 1 of
22the Public Resources Code.
To substantiate documentation of appraisal experience,
26or to facilitate the investigation of illegal or unethical activities by
27a licensee, applicant, or other person acting in a capacity that
28requires a license, that licensee, applicant, or person shall, upon
29the request of the director, submit copies of
30 appraisals, or any work product which is addressed by the Uniform
31Standards of Professional Appraisal Practice, and all supporting
32documentation and data to the office. This material shall be
33confidential in accordance with the confidentiality provisions of
34the Uniform Standards of Professional Appraisal Practice.
Section 11340 of the Business and Professions Code
37 is amended to read:
The director shall adopt regulations governing the
39process and the procedure of applying for a license which shall
40include, but not be limited to, necessary experience or education,
P8 1equivalency, and minimum requirements of the Appraisal
2Foundation, if any.
3(a) For purposes of the educational background requirements
4established under this section, the director shall do both of the
6(1) Grant credits for any courses taken on real estate appraisal
7ethics or practices pursuant to Section 10153.2, or which are
8deemed by the director to meet standards established pursuant to
9this part and federal law.
10(2) Require the completion of a course on state and federal laws
11regulating the appraisal profession, as approved by the bureau
12every two years. The course shall include an examination that
13requires an applicant to demonstrate the applicant’s knowledge of
15(b) For the purpose of implementing and applying this section,
16the director shall prescribe by regulation “equivalent courses” and
17“equivalent experience.” The experience of employees of an
18assessor’s office or of the State Board of Equalization in setting
19 forth opinions of value of real property for tax purposes shall be
20deemed equivalent to experience in federally related real estate
21appraisal activity. Notwithstanding any other law, a holder of a
22valid real estate broker license shall be deemed to have completed
23appraisal license application experience requirements upon proof
24that he or she has accumulated 1,000 hours of experience in the
25valuation of real property.
26(c) The director shall adopt regulations for licensure which shall
27meet, at a minimum, the requirements and standards established
28by the Appraisal Foundation and the federal financial institutions
29regulatory agencies acting pursuant to Section 1112 of the Financial
30Institutions Reform Recovery and Enforcement Act of
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32director shall, by regulation, require the application for a real estate
33appraiser license to include the applicant’s social security
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35(d) In evaluating the experience of any applicant for a license,
36regardless of the number of hours required of that applicant, the
37director shall apply the same standards to the experience of all
39(e) No license shall be issued to an applicant who is less than
4018 years of age.