BILL NUMBER: AB 1538	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Banking and Finance (Lieu (Chair), Coto,
Mendoza, Parra, Swanson, Torrico, and Wolk)

                        FEBRUARY 23, 2007

   An act to add Section 10149.5 to the Business and Professions
Code, and to add Sections 22169 and 50007 to the Financial Code,
relating to real estate.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1538, as introduced, Committee on Banking and Finance. Real
estate: investigations.
   Under existing law, the Real Estate Law, a real estate licensee is
licensed and regulated by the Department of Real Estate in the
Business, Transportation and Housing Agency. Under the Finance
Lenders Law, finance lenders are regulated by the Department of
Corporations, and under the California Residential Mortgage Lending
Act, residential mortgage lenders are regulated by the Department of
Corporations.
   This bill would require the Department of Real Estate to notify
the Department of Corporations if a real estate licensee is under
investigation. The bill would also require the Department of
Corporations to notify the Department of Real Estate if a finance
lender or a residential mortgage lender is under investigation. The
bill would prohibit a license from being issued or renewed for a
licensee under investigation by the other department.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 10149.5 is added to the Business and
Professions Code, to read:
   10149.5.  The department shall notify the Department of
Corporations if a real estate licensee is under investigation. A
license shall not be issued or renewed for a licensee under
investigation by the Department of Corporations.
  SEC. 2.  Section 22169 is added to the Financial Code, to read:
   22169.  The department shall notify the Department of Real Estate
if a finance lender is under investigation. A license shall not be
issued or renewed for a licensee under investigation by the
Department of Real Estate.
  SEC. 3.  Section 50007 is added to the Financial Code, to read:
   50007.  The department shall notify the Department of Real Estate
if a residential mortgage lender is under investigation. A license
shall not be issued or renewed for a licensee under investigation by
the Department of Real Estate.