BILL NUMBER: AB 2018 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 12, 2014
AMENDED IN SENATE AUGUST 6, 2014
AMENDED IN SENATE JUNE 9, 2014
AMENDED IN SENATE JUNE 2, 2014
AMENDED IN ASSEMBLY APRIL 21, 2014
AMENDED IN ASSEMBLY APRIL 10, 2014
INTRODUCED BY Assembly Member Bocanegra
FEBRUARY 20, 2014
An act to amend Section 10159.5 of, and to add Sections 10159.6
and 10159.7 to, the Business and Professions Code, relating to real
estate licensees.
LEGISLATIVE COUNSEL'S DIGEST
AB 2018, as amended, Bocanegra. Real estate licensees: fictitious
business 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.
Under existing law, any violation of these provisions is a
misdemeanor.
This bill would authorize a responsible broker, as defined, by
contract, to permit a salesperson to apply for a fictitious business
name with the appropriate county and the bureau, to be identified
with that responsible broker's license number, and to maintain
ownership of a fictitious business name, as defined. The bill would
define a team name and provide, for purposes of the provisions
described above, that a team name is not a fictitious business name
if the name is used by two or more real estate licensees, the name
includes a licensee's surname in conjunction with the term
"associates," "group," or "team," and the name does not include any
term or terms that imply or suggest the existence of a real estate
entity independent of a responsible broker. The bill would require
advertising that contains a team name, including print or electronic
media and "for sale" signage, to include certain identifying
information in a conspicuous manner.
This bill would provide that a violation of the provisions
described above is not a misdemeanor.
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 10159.5 of the Business and Professions Code is
amended to read:
10159.5. (a) 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.
(1) 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
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 a 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) Marketing and solicitation materials, including business
cards, print or electronic media and "for sale" signage, using a
fictitious business name obtained in accordance with subdivision (a)
shall include the responsible broker's identity in a manner equally
as prominent as the fictitious business name.
(e) Notwithstanding subdivision (b) of Section 10140.6,
advertising, including print or electronic media and "for sale"
signage, containing a fictitious business name obtained in accordance
with subdivision (a) shall include the salesperson's name and
license number.
(f) Notwithstanding Section 10185, a violation of this section is
not a misdemeanor.
SEC. 2. Section 10159.6 is added to the Business and Professions
Code, 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 that contains a team name, including print or electronic
media and "for sale" signage, shall include the licensee's name and
license number in all advertising, and shall be displayed in a
conspicuous manner.
(b) The responsible broker's identity shall be displayed as
prominently and conspicuously as the team name in all advertising.
(c) The advertising material 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 is added to the Business and Professions
Code, to read:
10159.7. (a) For the purposes of this article, the following
definitions shall apply:
(1) "Broker identity" means the name under which the broker
operates or conducts business and may include a sole proprietorship
or business entity name.
(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 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 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.