BILL ANALYSIS �
AB 2540
Page 1
Date of Hearing: April 22, 2014
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Susan A. Bonilla, Chair
AB 2540 (Dababneh) - As Amended: April 7, 2014
SUBJECT : Real estate licenses.
SUMMARY : Requires real estate brokers and salespersons to
supply a valid email address as part of their examination and
licensure applications, and requires licensees to inform the
Real Estate Commissioner (Commissioner) of the licensee's
current office or mailing address, telephone number, and email
address, as well as any change to that information no later than
thirty days after making the change. Specifically, this bill :
1)Requires an applicant for a real estate broker license
examination and for a real estate broker license to provide a
valid email address at which the Bureau of Real Estate (BRE)
may contact the applicant.
2)Authorizes the Commissioner to prescribe the format and
content of the application for the real estate salesperson
examination and license, and requires the applicant to provide
a valid email address at which BRE may contact the applicant.
3)Requires licensed real estate brokers and real estate
salespersons to provide the Commissioner with his or her
current office or mailing address, a current phone number, and
a current email address that he or she uses to perform any
activity that requires a real estate license, at which BRE may
contact the licensee, and to inform the Commissioner of any
change to the licensee's office, mailing address, phone
number, or email address no later than thirty days after
making the change.
4)Provides that no reimbursement is required by this bill
pursuant to the California Constitution because the only costs
that may be incurred by a local agency or school district will
be incurred because this bill creates a new crime or
infraction, eliminates a crime or infraction, changes the
penalty for a crime or infraction, or changes the definition
of a crime.
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5)Makes other technical and clarifying amendments.
EXISTING LAW
1)Establishes the BRE, which is headed by the Commissioner, and
issues licenses to and regulates real estate brokers and real
estate salespersons under the Real Estate Law. (Business and
Professions Code Section (BPC) 10150 et seq.)
2)Authorizes the Commissioner to prescribe the format and
content of the applications for the real estate broker
examination and license. (BPC 10150)
3)Authorizes the Commissioner to prescribe the format and
content of the real estate salesperson examination and
license. (BPC 10162)
4)Requires every licensed real estate broker to maintain a
definite place of business that serves as his or her office
for the transaction of business, where his or her license is
displayed, and personal consultations with clients are held.
(BPC 10162)
FISCAL EFFECT : Unknown
COMMENTS :
1)Purpose of this bill . This bill requires real estate brokers
and real estate salespersons to supply BRE with a valid email
address as part of their examination and license applications
and to inform the Commissioner of any change in the broker or
salesperson's contact information within thirty days. The
ultimate aim is to lower BRE's postal mail transaction costs
and increase communication efficiency between the licensee and
BRE. This bill is sponsored by the California Association of
Realtors.
2)Author's statement . According to the author, "This bill would
empower [BRE] to require licensees to supply a valid email
address as part of their license application or renewal
materials. Currently, [BRE] has less than 15,000 valid e-mail
addresses -- out of a licensee population of over 400,000.
Due to state budget constraints, the BRE no longer mails out
the Real Estate Bulletin to licensees. Instead, the BRE posts
the Bulletin on their website and e-mails it to the few
AB 2540
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available email addresses."
3)Suggested technical amendments . The Committee and author may
wish to consider the following technical and clarifying
amendments:
a) On page 2, in line 8, after "address" insert "and phone
number"
b) On page 3, in line 9, after "address" insert "and phone
number"
c) On page 3, in line 27, after "address" insert "and phone
number"
d) On page 4, in line 2, strike out "application for both
the examination and license." And insert "real estate
salesperson license application."
e) On page 4, in line 3, after "application" insert "for
the real estate salesperson license"
f) On page 4, in line 4, after "address" insert "and phone
number"
g) On page 5, in line 6, after "Every" insert "real estate
broker and salesperson"
h) On page 5, in line 11, after "Every" insert "real estate
broker and salesperson"
4)Arguments in support . The California Association of Realtors
writes in support, "[California Bureau of Real Estate] CalBRE
does not have the legislative authority to require licensees
to provide and maintain valid e-mail addresses and telephone
numbers. Thus, all communications are handled by mail.
Collection of email addresses and phone numbers would enable
CalBRE to communicate more time and cost effectively with
licensees. Additionally, licensees will benefit from
up-to-date knowledge of any notices, warnings or other
relevant information essential to licensing and business
practices."
REGISTERED SUPPORT / OPPOSITION :
AB 2540
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Support
California Association of Realtors (sponsor)
Opposition
None on file.
Analysis Prepared by : Girard Kelly / B.,P. & C.P. / (916)
319-3301