Bill Text: CA AB345 | 2015-2016 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
BILL NUMBER: AB 345 INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Frazier FEBRUARY 13, 2015 An act to amend Sections 10153.4 and 10170.5 of the Business and Professions Code, relating to real estate licensees. LEGISLATIVE COUNSEL'S DIGEST AB 345, as introduced, 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, as part of the licensee'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. 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(5),(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 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 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 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.(6)(7) Not less than 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 DevelopmentAct.Act (Part 5 (commencing with Section 4000) of Division 4 of the Civil Code).(7)(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 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 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(5),(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(5),(6), inclusive, of subdivision (a) means the passing of a final examination.