Amended in Assembly April 21, 2014

Amended in Assembly April 10, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2018


Introduced by Assembly Member Bocanegra

February 20, 2014


An act to amend Section 10159.5 of the Business and Professions Code, relating to real estate licensees.

LEGISLATIVE COUNSEL’S DIGEST

AB 2018, as amended, Bocanegra. Real estate licensees: fictitious business names.

Existing law provides for the licensure and regulation of real estate brokers and real estate salespersons by thebegin delete Californiaend delete 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.

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This bill would authorize the bureau to establish, by regulation, criteria for a business name that shall be approved, including examples in which the adequate identification of the licensee in a business name by licensee surname, identification of employing broker, if any, and display of license numbers is sufficient to avoid characterization as a fictitious name.

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This bill would provide, for purposes of the provisions described above, that a business name is not a fictitious business name if the name is used by two or more real estate licensees, the name includes one or more first and last names or surnames in conjunction with the term “associates,” “group,” or “team,” and the licensees include certain identifying information on marketing and advertising materials, “for sale” signage, and solicitation materials intended to be the first point of contact with consumers.

Vote: majority. Appropriation: no. Fiscal committee: begin deleteyes end deletebegin insertnoend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 10159.5 of the Business and Professions
2Code
is amended to read:

3

10159.5.  

(a) Every person applying for a license under this
4chapter who desires to have the license issued under a fictitious
5business name shall file with his or her application a certified copy
6of his or her fictitious business name statement filed with the
7county clerk pursuant to Chapter 5 (commencing with Section
817900) of Part 3 of Division 7.

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9(b) The bureau may, by regulation, establish criteria for a
10business name that shall be approved pursuant to this section,
11including examples in which the adequate identification of the
12licensee in a business name by licensee surname, identification of
13employing broker, if any, and display of license numbers is
14sufficient to avoid characterization as a fictitious name.

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15 15(c)

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16begin insert(b)end insert For purposes of this section, a business name is not a
17fictitious business name if all of the following conditions are
18satisfied:

19(1) The name is used by two or more real estate licensees.

20(2)  The name includes one or more first and last names or
21surnames in conjunction with the term “associates,” “group,” or
22“team.”

23(3) The licensees include all of the following information on
24all marketing and advertising materials in print or electronic media,
25“for sale” signage, and solicitation materials intended to be the
26first point of contact with consumers, as defined in paragraph (2)
27of subdivision (b) of Section 10140.6:

28(A) Name or surname.

29(B) License number.

P3    1(C) Name of the employing broker, which shall be equally
2prominent as the first and last names or surnames used in
3conjunction with the term “associates,” “group,” or “team.”

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P3   1 4(d)

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5begin insert(c)end insert Nothing in this section shall be construed to limit or change
6a real estate broker’s duties to supervise a salesperson under this
7division.

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4 8(e)

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9begin insert(d)end insert A business name using the term “associates,” “group,” or
10“team,” means an association of two or more real estate licensees.


CORRECTIONS:

Digest--Vote Key Line--Page 2.




O

Corrected 4-29-14—See last page.     97