Bill Text: CA AB345 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Real estate licensees: continuing education requirements.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2015-07-13 - Chaptered by Secretary of State - Chapter 68, Statutes of 2015. [AB345 Detail]

Download: California-2015-AB345-Amended.html

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BILL NUMBER: AB 345	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 16, 2015

INTRODUCED BY   Assembly Member Frazier

                        FEBRUARY 13, 2015

   An act to amend  Sections 10153.4 and  
Section  10170.5 of the Business and Professions Code, relating
to real estate licensees.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 345, as amended, Frazier. Real estate licensees: continuing
education requirements.
   The Real Estate Law provides for the licensure and regulation of
real estate brokers and salespersons by the Real Estate Commissioner.
The law requires a salesperson to be supervised by a responsible
broker, as defined, and allows an employing broker or corporate
designated broker officer to appoint a licensee as a manager of a
branch office or division of a real estate business if specified
requirements are met. The law requires a licensee to successfully
complete 45 hours of continuing education as a prerequisite to
license renewal, as specified.
   This bill would require a  licensee,  
broker,  as part of the  licensee's  
broker's  45 hours of continuing education, to successfully
complete a 3-hour course in the management of offices and supervision
of licensed activities, as  specified, and would also make
related and conforming changes.   specified. 
   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 10153.4 of the Business and
Professions Code is amended to read:
   10153.4.  (a) This section shall apply to an application for the
real estate salesperson license examination, the real estate
salesperson license, and for both the examination and license
received by the commissioner prior to October 1, 2007, if the
applicant obtains a passing score on the real estate salesperson
license examination and submits a license application prior to
October 1, 2007.
   (b) Application for the real estate salesperson license
examination pursuant to this section shall be made in writing to the
commissioner. The commissioner may prescribe the format and content
of the salesperson examination application. The application for the
salesperson examination shall be accompanied by the real estate
salesperson license examination fee.
   (c) An applicant under this section shall comply with the
requirements of subdivision (c) of Section 10153.3 in order to take
the real estate salesperson license examination.
   (d) An applicant under this section who obtains a passing score on
the real estate salesperson license examination prior to October 1,
2007, shall, prior to the issuance of the real estate salesperson
license, submit evidence or certification satisfactory to the
commissioner of successful completion at an accredited institution of
a three-semester unit course, or the quarter unit equivalent
thereof, or successful completion of an equivalent course of study as
defined in Section 10153.5, in real estate principles as described
in subdivision (c) of Section 10153.3. An applicant for an original
real estate salesperson license under this section shall also, prior
to the issuance of the license, or within 18 months after issuance,
submit evidence or certification satisfactory to the commissioner of
successful completion at an accredited institution or a private
vocational school, as specified in Section 10153.5, of a course in
real estate practice and one additional course set forth in Section
10153.2, other than real estate principles, real estate practice,
advanced legal aspects of real estate, advanced real estate finance,
or advanced real estate appraisal.
   (e) A salesperson who qualifies for a license pursuant to this
section shall not be required for the first license renewal
thereafter to complete the continuing education pursuant to Article
2.5 (commencing with Section 10170), except for the courses specified
in paragraphs (1) to (4), inclusive, of subdivision (a) of Section
10170.5 or, on and after July 1, 2007, except for the courses
specified in paragraphs (1) to (6), inclusive, of subdivision (a) of
Section 10170.5.
   (f) The salesperson license issued to an applicant who has
satisfied only the requirements of subdivision (c) at the time of
issuance shall be automatically suspended effective 18 months after
issuance if the licensee has failed to satisfy the requirements of
subdivision (d). The suspension shall not be lifted until the
suspended licensee has submitted the required evidence of course
completion and the commissioner has given written notice to the
licensee of the lifting of the suspension.
   (g) The original license issued to a salesperson shall clearly set
forth the conditions of the license and shall be accompanied by a
notice of the provisions of this section and of any regulations
adopted by the commissioner to implement this section.
   (h) The commissioner shall waive the requirements of this section
for any person who presents evidence of admission to the State Bar of
California, and the commissioner shall waive the requirement for any
course for which an applicant has completed an equivalent course of
study as determined under Section 10153.5. 
   SEC. 2.   SECTION 1.   Section 10170.5
of the Business and Professions Code is amended to read:
   10170.5.  (a) Except as otherwise provided in Sections 10153.4 and
10170.8, no real estate license shall be renewed unless the
commissioner finds that the applicant for license renewal has, during
the four-year period preceding the renewal application, successfully
completed the  45-clock   45 clock  hours
of education provided for in Section 10170.4, including all of the
following:
   (1) A three-hour course in ethics, professional conduct, and legal
aspects of real estate, which shall include, but not be limited to,
relevant legislation, regulations, articles, reports, studies, court
decisions, treatises, and information of current interest.
   (2) A three-hour course in agency relationships and duties in a
real estate brokerage practice, including instruction in the
disclosures to be made and the confidences to be kept in the various
agency relationships between licensees and the parties to real estate
transactions.
   (3) A three-hour course in trust fund accounting and handling.
   (4) A three-hour course in fair housing.
   (5) A three-hour course in risk management that shall include, but
need not be limited to, principles, practices, and procedures
calculated to avoid errors and omissions in the practice of real
estate licensed activities.
   (6)  A   In addition to paragraphs (1) to
(5), inclusive, a broker shall complete a  three-hour course in
the management of real estate offices and supervision of real estate
licensed activities that shall include, but need not be limited to,
the requirements described in subdivision (a) of Section 10159.7 and
Section  10164 and the duties of a broker or salesperson
acting under the reasonable supervision of a responsible broker or
branch manager.   10164. 
   (7) Not less than  18-clock   18 clock 
hours of courses or programs related to consumer protection, and
designated by the commissioner as satisfying this purpose in his or
her approval of the offering of these courses or programs, which
shall include, but not be limited to, forms of real estate financing
relevant to serving consumers in the marketplace, land use regulation
and control, pertinent consumer disclosures, agency relationships,
capital formation for real estate development, fair practices in real
estate, appraisal and valuation techniques, landlord-tenant
relationships, energy conservation, environmental regulation and
consideration, taxation as it relates to consumer decisions in real
estate transactions, probate and similar disposition of real
property, governmental programs such as revenue bond activities,
redevelopment, and related programs, business opportunities, mineral,
oil, and gas conveyancing, and California law that relates to
managing community associations that own, operate, and maintain
property within common interest developments, including, but not
limited to, management, maintenance, and financial matters addressed
in the Davis-Stirling Common Interest Development Act (Part 5
(commencing with Section 4000) of Division 4 of the Civil Code).
   (8) Other courses and programs that will enable a licensee to
achieve a high level of competence in serving the objectives of
consumers who may engage the services of licensees to secure the
transfer, financing, or similar objectives with respect to real
property, including organizational and management  techniques
  techniques, including relevant information to assist
a salesperson or broker in understanding how to be effectively
supervised by a responsible broker or branch manager,  that will
significantly contribute to this goal.
   (b) Except as otherwise provided in Section 10170.8, no real
estate license shall be renewed for a licensee who already has
renewed under subdivision (a), unless the commissioner finds that the
applicant for license renewal has, during the four-year period
preceding the renewal application, successfully completed the
 45-clock   45 clock  hours of education
provided for in Section 10170.4, including an eight-hour update
survey course that covers the subject areas specified in paragraphs
(1) to (6), inclusive, of subdivision (a).
   (c) Any denial of a license pursuant to this section shall be
subject to Section 10100.
   (d) For purposes of this section, "successful completion" of a
course described in paragraphs (1) to (6), inclusive, of subdivision
(a) means the passing of a final examination.