Amended in Assembly March 16, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 345

Introduced by Assembly Member Frazier

February 13, 2015

An act to amend begin delete Sections 10153.4 and end delete begin insert Section end insert 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 begin delete licensee, end delete begin insert broker, end insert as part of the begin delete licensee’s end delete begin insert broker’s end insert 45 hours of continuing education, to successfully complete a 3-hour course in the management of offices and supervision of licensed activities, as begin delete specified, and would also make related and conforming changes. end delete begin insert specified. 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:

begin delete

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.

end delete

begin delete SEC. 2. end delete
begin insert SECTION 1. end insert   

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 begin delete 45-clock end delete begin insert 45 clock end insert 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)  begin delete A end delete begin insert In addition to paragraphs (1) to (5), inclusive, a broker
shall complete a end insert 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 begin delete 10164 and the
duties of a broker or salesperson acting under the reasonable
supervision of a responsible broker or branch manager. end delete begin insert 10164. end insert

(7) Not less than begin delete 18-clock end delete begin insert 18 clock end insert 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 begin delete techniques end delete
begin insert techniques, including relevant information to assist a salesperson
or broker in understanding how to be effectively supervised by a
responsible broker or branch manager, end insert 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
begin delete 45-clock end delete begin insert 45 clock end insert 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.