BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1762
                                                                  Page  1
          CONCURRENCE IN SENATE AMENDMENTS
          AB 1762 (Hayashi)
          As Amended  June 2, 2010
          Majority vote
           
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          |ASSEMBLY:  |73-0 |(April 8, 2010) |SENATE: |32-0 |(June 28,      |
          |           |     |                |        |     |2010)          |
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           Original Committee Reference:    B.,P. & C.P.   

           SUMMARY  :   Redefines "advance fee" to exclude fees charged or  
          collected for advertising or promotion, for referral fees to  
          other real estate brokers or salespersons in connection with  
          mortgage loan origination, or fees associated with prepaid  
          rental listings.

           The Senate amendments  redefined "advance fee" in the following  
          ways: 

          1)Exempts a fee earned for a specific service under a "limited  
            service" contract.  For purposes of this bill, a limited  
            services contract is a written agreement for real estate  
            services, which are promoted, advertised, or presented as  
            stand-alone services, to be performed on a task-by-task basis,  
            and for which compensation is received as each separate,  
            contracted-for task is completed.
               
          2)States that a contract between a real estate broker and a  
            principal that requires payment of a commission to the broker  
            after the contract is fully performed does not represent an  
            agreement for an advance fee.

          3)States that the changes made by this bill are intended to  
            supersede the changes made to Business and Professions Code  
            Section 10026 by SB 94 (Calderon), Chapter 630, Statutes of  
            2009, but are not otherwise intended to alter the obligations  
            or liability of any person pursuant to SB 94 (Calderon),  
            Chapter 630, Statutes of 2009.

          4)Makes technical and clarifying amendments. 

           EXISTING LAW  : 
           
           1)Provides for the regulation and licensure of real estate  








                                                                  AB 1762
                                                                  Page  2
            brokers and salespersons by the Department of Real Estate. 

          2)Defines "advance fee" as a fee, regardless of the form,  
            claimed, demanded, charged, received, or collected by a  
            licensee from a principal before fully completing each and  
            every service the licensee contracted to perform, or  
            represented would be performed. 

           AS PASSED BY THE ASSEMBLY  , this bill clarified the scope of  
          "advance fee" when used in real estate transactions.  

           FISCAL EFFECT  :  Unknown.  This bill has been keyed non-fiscal. 

           COMMENTS  :  This bill was amended in the Senate and is consistent  
          with Assembly actions. 


           Analysis Prepared by  :    Joanna Gin / B.,P. & C.P.  / (916)  
          319-3301                                               FN:  
          0005057