BILL ANALYSIS �
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|Hearing Date:June 23, 2014 |Bill No:AB |
| |2540 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Ted W. Lieu, Chair
Bill No: AB 2540Author:Dababneh
As Amended: June 18, 2014Fiscal: Yes
SUBJECT: Real estate licenses.
SUMMARY: Requires real estate brokers and real estate salespersons to
supply the Bureau of Real Estate with valid contact information,
including a current mailing address, electronic mail address, and
telephone number, as part of their examination and license
applications and to inform the Bureau of any change in the broker or
salesperson's contact information within
30 days.
Existing law:
1)Licenses and regulates real estate brokers, real estate salespersons,
and mortgage loan originator license endorsements by the Bureau of
Real Estate (BRE) in the Department of Consumer Affairs (DCA).
(Business and Professions Code (BPC) � 10000 et seq.)
2)Pursuant to the Governor's Reorganization Plan No. 2 of 2012 (GRP 2),
reorganized, revised, consolidated and eliminated numerous entities
of California state government, including transferring the
regulation of real estate licensees, effective July 1, 2013, from
the Department of Real Estate within the Business, Transportation,
and Housing Agency to the BRE within the Department of Consumer
Affairs (DCA).
3)Requires an application for a real estate broker license examination,
and an application for a real estate broker license to be made in
writing and accompanied by the specified fee.
(BPC � 10150)
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4)Requires an application for a real estate salesperson license
examination to be made in writing and accompanied by the specified
fee. (BPC � 10151)
5)Requires each real estate broker to maintain a place of business in
California which serves as an office for the transaction of
business, and where the license is displayed and personal
consultations with clients are held. (BPC � 10162)
6)Authorizes the BRE to take disciplinary action to suspend or revoke a
real estate licensee, as specified. (BPC � 10165)
7)Authorizes BRE to issue a citation or a citation and fine, as
specified, to a real estate licensee found to have violated the Real
Estate Law. (BPC � 10080.9)
8)Makes willful violation of the Real Estate Law a misdemeanor (crime).
(BPC � 10185)
9)Specifies under the California Public Records Act, that except for
records exempt from disclosure by express provisions of law, each
state agency, upon request shall make public records in its
possession promptly available to any person, as specified.
(Government Code � 6253)
This bill:
1)Requires an applicant for a real estate broker license examination or
a real estate broker license to also include on the application,
valid contact information at which the BRE may contact the
applicant.
2)Requires an applicant for a real estate salesperson license
examination to also include on the application, valid contact
information at which the BRE may contact the applicant.
3)Clarifies that BRE may prescribe the format and content of the real
estate salesperson license application, and requires the application
to include valid contact information where the BRE may contact the
applicant.
4)Modifies the requirement for a real estate broker to maintain an
office from which to transact business to further specify:
a) Each real estate broker and salesperson must provide the BRE
his or her current office or mailing address, a current telephone
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number, and a current electronic mail address that is maintained
or used to conduct real estate business, and where the BRE may
contact the licensee.
b) Each real estate broker and salesperson must inform the BRE of
any change in office or mailing address, telephone number, or
electronic mail address no later than 30 days after making the
change.
c) Violations of these provisions are not punishable as
misdemeanors, but are subject to disciplinary action to suspend
or revoke the license, as specified.
5)Specifies that the California Public Records Act shall not be
construed to require the posting, publishing, or disclosure of
electronic mail addresses or phone numbers of real estate licensees
collected under the provisions of this bill.
6)Makes technical, updating and conforming changes.
FISCAL EFFECT: This measure has been keyed "fiscal" by Legislative
Counsel. The May 7, 2014 Assembly Appropriations Committee analysis
cites minor and absorbable costs to the BRE within the DCA.
COMMENTS:
1.Purpose. This bill is sponsored by the California Association of
Realtors in order to empower the Bureau of Real Estate (BRE) to
require licensees to supply and maintain valid contact information,
which could include an electronic mail address or telephone number,
that an applicant or licensee intends to use or uses in connection
with licensed activity.
The Author states that existing law requires real estate licensees to
provide a valid business or mailing address to BRE. However, the
law is currently silent on allowing BRE to collect contact
information in addition to mailing addresses, such as email
addresses and telephone numbers. The Author indicates that due to
state budget constraints, BRE no longer mails out its newsletter,
the Real Estate Bulletin to the over 400,000 licensees. Instead,
BRE posts the Bulletin on its web site and emails the Real Estate
Bulletin to the few who have subscribed to BRE's "News Flash" RSS
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(Really Simple Syndication) feed. Moreover, the Author states,
without a requirement for maintaining a valid telephone number,
communication to address simple issues that can be handled with a
telephone call must instead be handled by mail.
This bill addresses these issues by requiring applicants for broker
licenses or salesperson licenses or licensees renewing license to
provide BRE with a current office or mailing address, telephone
number, and an electronic mail address, and to inform BRE within any
30 days of any change of address, electronic mail address or phone
number.
2.Related Legislation. AB 2018 (Bocanegra, 2014) authorizes the BRE to
determine when a business name is not considered a fictitious
business name if it meets specified requirements. ( Status : SB 2018
was heard in Senate Business, Professions and Economic Development
Committee on June 16, 2014.)
SB 706 (Price, Chapter 712, Statutes of 2011) makes numerous
enforcement enhancements to the Department of Real Estate and the
Office of Real Estate Appraisers; requires licensing boards to post
information about licensees on the Internet, as specified; and makes
updating and conforming changes.
SB 676 (Block, Chapter 349, Statutes of 2013) authorizes BRE to suspend
or revoke a real estate license if the licensee knowingly destroys,
alters, conceals, mutilates, or falsifies any of the books,
accounts, or records that are required to be maintained or are
sought by the BRE, as specified.
SB 269 (Hill, Chapter 436, Statutes of 2013) expands the enforcement
powers of the BRE over prepaid rental listing services licensees,
authorizes consumers harmed by providers to seek compensation from
the Consumer Recovery Account, increases application fees for the
prepaid rental listing service license to better fund the Account.
3.Arguments in Support. In sponsoring the bill, the California
Association of Realtors (CAR) writes that BRE 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. CAR states that collection of
email addresses and phone numbers would enable BRE 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, according to CAR.
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SUPPORT AND OPPOSITION:
Support:
California Association of Realtors (Sponsor)
Opposition:
None received as of June 18, 2014.
Consultant:G. V. Ayers