Amended in Senate August 6, 2014

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 Sections end delete begin insert Section end insert 10159.5 begin delete and 10165 end delete 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 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. Under existing law, any violation of these provisions is a misdemeanor. begin delete 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 delete

This bill would authorize a begin delete supervising end delete begin insert responsible end insert 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 begin delete supervising end delete begin insert responsible end insert 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 begin insert any term or end insert terms that imply begin insert or suggest end insert the existence of a real estate entity independent of a begin delete supervising end delete begin insert responsible end insert 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 insert in a conspicuous manner end insert .

This bill would provide that a violation of the provisions described above is not a begin delete 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 delete begin insert misdemeanor end insert .

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 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 begin delete supervising end delete begin insert responsible end insert broker may, by contract, permit
a salesperson to do all of the following:

(A) File an application begin insert on behalf of a responsible broker end insert with
a county clerk to obtain a fictitious business name.

(B) Deliver to the bureau an application, signed by the
begin delete supervising end delete begin insert responsible end insert 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 begin delete (4) end delete begin insert (2) end insert of subdivision (a) of Section 10159.7, that
may be used subject to the control of a begin delete supervising end delete begin insert responsible end insert
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 begin delete supervising end delete begin insert responsible end insert 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 begin insert and solicitation end insert materials, including begin insert business
cards, end insert print or electronic media and “for sale” signage, using a
fictitious business name obtained in accordance with subdivision
(a) shall include the begin delete supervising end delete begin insert responsible end insert 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.

(f) Notwithstanding Section 10185, a violation of this begin delete Section end delete
begin insert section end insert is not a begin delete misdemeanor and shall be enforced pursuant to
Section 10165 end delete begin insert misdemeanor 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 begin insert paragraph (5) of end insert subdivision begin delete (c) end delete begin insert (a) end insert 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 begin insert in all advertising, and shall be displayed in a
conspicuous manner end insert .

(b) The begin delete supervising end delete begin insert responsible end insert broker’s identity shall be
displayed as prominently begin insert and conspicuously end insert 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 begin delete supervising end delete
begin insert responsible end insert broker.

(d) Notwithstanding Section 10185, a violation of this begin delete Section end delete
begin insert section end insert is not a begin delete misdemeanor and shall be enforced pursuant to
Section 10165 end delete begin insert misdemeanor 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)  begin insert “Broker identity” means the name under which the broker
operates or conducts business and may include a sole
proprietorship or business entity name. end insert

begin insert (2) end insert begin insert   end insert “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.

begin delete

(2)

end delete

begin insert ( end insert begin insert 3) end insert  “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.

begin delete

(3) “Supervising

end delete

begin insert (4) end insert begin insert   end insert begin insert “Responsible end insert broker” means begin delete a corporate designated officer end delete
begin insert the broker end insert responsible for the exercise of control begin delete of corporate
activities end delete begin insert and supervision of salespersons end insert 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.

begin delete

(4)

end delete

begin insert ( end insert begin insert 5) end insert  “Team name” means a professional identity or brand name
used by a begin delete salesperson or broker associate end delete begin insert salesperson, and one or
more other real estate licensees, for the provision of real estate
licensed services. Notwithstanding any other law, the use of a team
name does not require that a separate license be issued for that
name pursuant to Section 10159.5 end insert . A team name does not constitute
a fictitious business name begin delete if end delete begin insert for purposes of this part end insert all of the
following apply:

(A) The name is used by two or more real estate licensees begin insert who
work together to provide licensed real estate services, or who
represent themselves to the public as being a part of a team, group,
or association to provide those services end insert .

(B) The name includes begin delete a licensee’s end delete begin insert the end insert surname begin insert of at least one
of the licensee members of the team, group, or association end insert in
conjunction with the term “associates,” “group,” or “team.”

(C) The name does not include begin delete terms end delete begin insert any term or terms, such
as “real estate broker,” “real estate brokerage,” “broker,” or
“brokerage” or any other term that would lead a member of the
public to believe that the team is offering real estate brokerage
services, end insert that imply begin insert or suggest end insert the existence of a real estate entity
independent of a begin delete supervising end delete begin insert responsible end insert broker.

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

begin delete

SEC. 4.  

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

10165.  

For a violation of any of the provisions of Section
10159.5, 10159.6, 10160, 10161.8, 10162, or 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.

end delete