BILL NUMBER: SB 146 CHAPTERED
BILL TEXT
CHAPTER 129
FILED WITH SECRETARY OF STATE JULY 16, 2015
APPROVED BY GOVERNOR JULY 16, 2015
PASSED THE SENATE JULY 6, 2015
PASSED THE ASSEMBLY JUNE 29, 2015
AMENDED IN ASSEMBLY JUNE 18, 2015
AMENDED IN SENATE MARCH 23, 2015
INTRODUCED BY Senator Galgiani
(Coauthor: Assembly Member Gatto)
JANUARY 28, 2015
An act to amend Sections 10159.5, 10159.6, and 10159.7 of the
Business and Professions Code, relating to real estate licensees, and
declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 146, Galgiani. Real estate licensees: fictitious business
names: team 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.
Existing law authorizes a responsible broker, as defined, by
contract, to permit a salesperson to apply for a fictitious business
name with the appropriate county, and to maintain ownership of a
fictitious business name. Existing law defines a team name and
provides, for purposes of the provisions described above, that a team
name is not a fictitious business name if specified criteria apply.
This bill would provide that a team name is also not a fictitious
business name for purposes of any other law or for purposes of filing
a fictitious business name statement with an application as
described above when the criteria apply. This bill would make
technical and clarifying changes to the provisions described above.
Existing law requires advertising and solicitation materials using
a fictitious business name or that contain a team name to display
the responsible broker's identity, as provided. Existing law defines
"responsible broker's identity" to mean the name under which the
responsible broker operates or conducts business.
This bill would revise the definition of "responsible broker's
identity" to mean a name and the associated license identification
number under which the responsible broker is currently licensed and
conducts business in general or is a substantial division of the real
estate firm and that does not include a fictitious business name or
a team name, as specified.
This bill would declare that it is to take effect immediately as
an urgency statute.
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) (1) 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.
(2) A responsible broker may, by contract, permit a salesperson to
do all of the following:
(A) File an application on behalf of a responsible broker with a
county clerk to obtain a fictitious business name.
(B) Deliver to the bureau an application, signed by the
responsible broker, requesting the bureau's approval to use a county
approved fictitious business name that shall be identified with the
responsible 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 (2) of subdivision (a) of Section 10159.7, that may be
used subject to the control of the responsible 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 responsible 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) Advertising and solicitation materials, including business
cards, print or electronic media and "for sale" signage, using a
fictitious business name obtained in accordance with paragraph (2) of
subdivision (a) shall include the responsible broker's identity, as
defined in paragraph (1) of subdivision (a) of Section 10159.7, in a
manner equally as prominent as the fictitious business name.
(e) Notwithstanding subdivision (b) of Section 10140.6,
advertising and solicitation materials, including print or electronic
media and "for sale" signage, containing a fictitious business name
obtained in accordance with paragraph (2) of subdivision (a) shall
include the name and license number of the salesperson who is using
the fictitious business name.
(f) Notwithstanding Section 10185, a violation of this section is
not a misdemeanor.
SEC. 2. Section 10159.6 of the Business and Professions Code is
amended to read:
10159.6. All of the following apply to use of a team name, as
defined in paragraph (5) of subdivision (a) of Section 10159.7:
(a) Notwithstanding subdivision (b) of Section 10140.6,
advertising and solicitation materials that contain a team name,
including print or electronic media and "for sale" signage, shall
include, and display in a conspicuous and prominent manner, the team
name and the name and license number of at least one of the licensed
members of the team.
(b) The responsible broker's identity, as defined in paragraph (1)
of subdivision (a) of Section 10159.7, shall be displayed as
prominently and conspicuously as the team name in all advertising and
solicitation materials.
(c) The advertising and solicitation materials shall not contain
terms that imply the existence of a real estate entity independent of
the responsible broker.
(d) Notwithstanding Section 10185, a violation of this section is
not a misdemeanor.
SEC. 3. Section 10159.7 of the Business and Professions Code is
amended to read:
10159.7. (a) For the purposes of this article, the following
definitions shall apply:
(1) "Responsible broker's identity" means a name and the
associated license identification number under which the responsible
broker is currently licensed by the bureau and conducts business in
general or is a substantial division of the real estate firm.
Responsible broker's identity does not include a fictitious business
name obtained pursuant to paragraph (2) of subdivision (a) of Section
10159.5 or the use of a team name pursuant to Section 10159.6.
(2) "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.
(3) "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.
(4) "Responsible broker" means the broker responsible for the
exercise of control and supervision of salespersons 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 or any other law is limited to regulatory compliance and
consumer protection.
(5) "Team name" means a professional identity or brand name used
by a 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. A team
name does not constitute a fictitious business name for purposes of
this part or any other law or for purposes of filing a fictitious
business name statement with an application as required by
subdivision (a) of Section 10159.5 if all of the following apply:
(A) The name is used by two or more real estate licensees 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.
(B) The name includes the surname of at least one of the licensee
members of the team, group, or association in conjunction with the
term "associates," "group," or "team."
(C) The name does not include 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, that imply or
suggest the existence of a real estate entity independent of a
responsible broker.
(b) Nothing in this section changes a real estate broker's duties
under this division to supervise a salesperson.
SEC. 4. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to ensure that the law regarding "team names" is applied
consistently at the state and local level and that a "team name" does
not constitute a fictitious business name for purposes of any law,
it is necessary that this act take effect immediately.