Amended in Senate June 9, 2014

Amended in Senate June 2, 2014

Amended in Assembly April 21, 2014

Amended in Assembly April 10, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2018

Introduced by Assembly Member Bocanegra

February 20, 2014

An act to amend begin delete Section end delete begin insert Sections end insert 10159.5 begin insert and 10165 end insert of, and to add Sections 10159.6 and 10159.7 to, 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 begin delete , the violation of which is a misdemeanor, end delete provides for the licensure and regulation of real estate brokers and real estate salespersons by the 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. begin insert Under existing law, any violation of these provisions is a misdemeanor. Existing law also authorizes the commissioner to temporarily suspend or permanently revoke the license of a real estate licensee for violation of any specified provisions, including, but not limited to, a requirement that a real estate broker immediately notify the commissioner when he or she employs, or terminates the employment of, a real estate salesperson. end insert

This bill would authorize a supervising broker, as defined, by contract, to permit a salesperson to apply for a fictitious business name with the appropriate county and the bureau, to be identified with that supervising broker’s license number, and to maintain ownership of a fictitious business name, as defined. The bill would define a team name and provide, for purposes of the provisions described above, that a team name is not a fictitious business name if the name is used by two or more real estate licensees, the name includes a licensee’s surname in conjunction with the term “associates,” “group,” or “team,” and the name does not include terms that imply the existence of a real estate entity independent of a supervising broker. The bill would require advertising that contains a team name, including print or electronic media and “for sale” signage, to include certain identifying information. begin delete Because any violation of these provisions would be a misdemeanor, the bill would impose a state-mandated local program. end delete

begin delete

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end delete begin delete

This bill would provide that no reimbursement is required by this act for a specified reason.

end delete begin insert

This bill would provide that a violation of the provisions described above is not a misdemeanor, and would instead expand the commissioner’s authority to temporarily suspend or permanently revoke the license of a licensee for a violation of these provisions.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete yes end delete begin insert no end insert .

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

SECTION 1.  

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

10159.5.  

(a) Every person applying for a license under this
chapter who desires to have the license issued under a fictitious
business name shall file with his or her application a certified copy
of his or her fictitious business name statement filed with the
county clerk pursuant to Chapter 5 (commencing with Section
17900) of Part 3 of Division 7.

(1) A supervising broker may, by contract, permit a salesperson
to do all of the following:

(A) File an application with a county clerk to obtain a fictitious
business name.

(B) Deliver to the bureau an application, signed by the
supervising broker, requesting the bureau’s approval to use a
county approved fictitious business name that shall be identified
with the broker’s license number.

(C) Pay for any fees associated with filing an application with
a county or the bureau to obtain or use a fictitious business name.

(D) Maintain ownership of a fictitious business name, as defined
in paragraph (4) of subdivision (a) of Section 10159.7, that may
be used subject to the control of a supervising broker.

(b) (1) A salesperson using a fictitious business name authorized
by subdivision (a), shall use that name only as permitted by his or
her supervising broker.

(2) This section does not change a real estate broker’s duties
under this division to supervise a salesperson.

(c) A person applying to a county for a fictitious business name
pursuant to subdivision (a) may file his or her application in the
county or counties where the fictitious business name will be used.

(d) Marketing materials, including print or electronic media and
“for sale” signage, using a fictitious business name obtained in
accordance with subdivision (a) shall include the supervising
broker’s identity in a manner equally as prominent as the fictitious
business name.

(e) Notwithstanding subdivision (b) of Section 10140.6,
advertising, including print or electronic media and “for sale”
signage, containing a fictitious business name obtained in
accordance with subdivision (a) shall include the salesperson’s
name and license number.

begin insert

(f) Notwithstanding Section 10185, a violation of this Section
is not a misdemeanor and shall be enforced pursuant to Section
10165.

end insert

SEC. 2.  

Section 10159.6 is added to the Business and
Professions Code, to read:

10159.6.  

All of the following apply to use of a team name, as
defined in subdivision (c) of Section 10159.7:

(a) Notwithstanding subdivision (b) of Section 10140.6,
advertising that contains a team name, including print or electronic
media and “for sale” signage, shall include the licensee’s name
and license number.

(b) The supervising broker’s identity shall be displayed as
prominently as the team name in all advertising.

(c) The advertising material shall not contain terms that imply
the existence of a real estate entity independent of the supervising
broker.

begin insert

(d) Notwithstanding Section 10185, a violation of this Section
is not a misdemeanor and shall be enforced pursuant to Section
10165.

end insert

SEC. 3.  

Section 10159.7 is added to the Business and
Professions Code, to read:

10159.7.  

(a) For the purposes of this article, the following
definitions shall apply:

(1) “Fictitious business name” means a professional identity or
brand name under which activity requiring a real estate license is
conducted and the use of which is subject to approval by the bureau
pursuant to Section 10159.5.

(2) “Ownership of a fictitious business name” means the right
to use, renew, and control the use of a fictitious business name
obtained in accordance with Section 10159.5.

(3) “Supervising broker” means a corporate designated officer
responsible for the exercise of control of corporate activities under
Section 10159.2, or a licensee subject to discipline under
subdivision (h) of Section 10177 for failure to supervise activity
requiring a real estate license. The supervision of a salesperson
required under this part is limited to regulatory compliance and
consumer protection.

(4) “Team name” means a professional identity or brand name
used by a salesperson or broker associate. A team name does not
constitute a fictitious business name if all of the following apply:

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

(B) The name includes a licensee’s surname in conjunction with
the term “associates,” “group,” or “team.”

(C) The name does not include terms that imply the existence
of a real estate entity independent of a supervising broker.

(b) Nothing in this section changes a real estate broker’s duties
under this division to supervise a salesperson.

begin delete

SEC. 4.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

end delete

begin insert

begin insert SEC. end insert begin insert 4. end insert   

end insert

begin insert Section 10165 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

10165.  

For a violation of any of the provisions of Section
begin insert 10159.5, 10159.6, end insert 10160, 10161.8, 10162, begin insert or end insert 10163, or subdivision
(b) of Section 10164, the commissioner may temporarily suspend
or permanently revoke the license of the real estate licensee in
accordance with the provisions of this part relating to hearings.