BILL ANALYSIS �
SB 875
Page 1
SENATE THIRD READING
SB 875 (Price)
As Amended August 6, 2012
Majority vote
SENATE VOTE :37-0
BUSINESS & PROFESSIONS 9-0
APPROPRIATIONS 17-0
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|Ayes:|Hayashi, Bill Berryhill, |Ayes:|Fuentes, Harkey, |
| |Allen, Butler, Eng, | |Blumenfield, Bradford, |
| |Hagman, Hill, Ma, Smyth | |Charles Calderon, Campos, |
| | | |Davis, Donnelly, Gatto, |
| | | |Hall, Hill, Lara, |
| | | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Allows the Department of Real Estate Commissioner
(Commissioner) to bar individuals from licensure and licensure
examinations for specified violations, and makes other changes
to Real Estate Law. Specifically, this bill :
1)Allows the Commissioner to bar from participation in a
licensure examination a real estate salesperson, a real estate
broker, or specified unlicensed persons if the Commissioner
makes certain findings.
2)Provides that persons suspended or barred from a position of
employment, management, or control under existing law are also
barred from participating in licensure examinations.
3)Requires the Department of Real Estate (DRE), upon denial of a
license application or a license endorsement, to proceed under
statutes governing the denial, suspension and revocation of
licenses issued by the boards and bureaus within the
Department of Consumer Affairs (DCA), which require a
statement of issues or a notification of denial, as specified.
4)Requires the Commissioner to require a person who submits a
petition for reinstatement of a license or reduction of a
SB 875
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penalty to submit his or her fingerprints with the petition.
5)Provides that no person shall cheat on, subvert, or attempt to
subvert a licensing examination given by the DRE, and provides
definitions for cheating and subverting.
6)Allows the Commissioner to bar any candidate who willfully
cheats on, subverts, or attempts to subvert an examination
from taking any license examination and from holding an active
real estate license under any provision of the Business and
Professions code for up to three years.
7)Repeals provisions relating to conditional licenses (which the
DRE no longer issues).
8)Clarifies grounds for disciplinary action against a licensee
for acting as a dual agent without the knowledge or written
consent of all parties.
9)Clarifies that an applicant for a Mortgage Loan Originator
(MLO) endorsement may fail the examination only three
consecutive times before having to wait six months before
re-taking the exam.
10)Allows licensees with an MLO endorsement who are called to
active military duty to extend the timeframe in which they
must complete continuing education (CE) requirements.
11)Makes conforming and technical changes.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, costs associated with this legislation are minor and
absorbable within existing resources.
COMMENTS : This bill makes a number of changes to enhance and
streamline DRE's enforcement authority and reduce associated
costs, clarify DRE's examination procedures, and allow active
military more time to complete CE required to maintain an MLO
license endorsement.
Analysis Prepared by : Angela Mapp / B.,P. & C.P. / (916)
319-3301
SB 875
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FN: 0004851