BILL NUMBER: AB 1650 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY FEBRUARY 17, 2016
INTRODUCED BY Assembly Member Frazier
JANUARY 12, 2016
An act to amend, repeal, and add Section 10140.6 of the Business
and Professions Code, relating to real estate.
LEGISLATIVE COUNSEL'S DIGEST
AB 1650, as amended, Frazier. Real estate licensees:
advertisements.
Existing law, the Real Estate Law, governs the licensing and
regulation of real estate licensees, as defined, as administered by
the Real Estate Commissioner. Under those provisions, a real estate
licensee is prohibited from publishing, circulating, distributing, or
causing to be published, circulated, or distributed in any newspaper
or periodical, or by mail, any matter pertaining to any activity for
which a real estate license is required that does not contain a
designation disclosing that the licensee is performing acts for which
a real estate license is required. Existing law further requires a
real estate licensee to include his or her license identification
number and, if that licensee is a mortgage loan originator, the
unique identifier assigned to that licensee, on the above-described
circulations, distributions, publications, or mailings, on all
solicitation materials, as described, and on all real property
agreements when acting as an agent in those transactions. Existing
law authorizes the Real Estate Commissioner to adopt regulations in
that regard.
This bill, beginning January 1, 2018, would revise the disclosure
requirements with regard to solicitation materials to require the
inclusion of the name of the licensee, remove the
identification of the mortgage loan originator and instead would
require the inclusion of licensee and the
responsible broker's identity, and would revise the description of
solicitation materials.
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 10140.6 of the Business and Professions Code is
amended to read:
10140.6. (a) A real estate licensee shall not publish, circulate,
distribute, or cause to be published, circulated, or distributed in
any newspaper or periodical, or by mail, any matter pertaining to any
activity for which a real estate license is required that does not
contain a designation disclosing that he or she is performing acts
for which a real estate license is required.
(b) (1) A real estate licensee shall disclose his or her license
identification number and, if that licensee is a mortgage loan
originator, the unique identifier assigned to that licensee by the
Nationwide Mortgage Licensing System and Registry, on all
solicitation materials intended to be the first point of contact with
consumers and on real property purchase agreements when acting as an
agent in those transactions. The commissioner may adopt regulations
identifying the materials in which a licensee must disclose a license
identification number and, if that licensee is a mortgage loan
originator, the unique identifier assigned to that licensee by the
Nationwide Mortgage Licensing System and Registry.
(2) For purposes of this section, "solicitation materials intended
to be the first point of contact with consumers" includes business
cards, stationery, advertising fliers, and other materials designed
to solicit the creation of a professional relationship between the
licensee and a consumer, and excludes an advertisement in print or
electronic media and "for sale" signs.
(3) Nothing in this section shall be construed to limit or change
the requirement described in Section 10236.4 as applicable to real
estate brokers.
(c) The provisions of this section shall not apply to classified
rental advertisements reciting the telephone number at the premises
of the property offered for rent or the address of the property
offered for rent.
(d) "Mortgage loan originator," "unique identifier," and
"Nationwide Mortgage Licensing System and Registry" have the meanings
set forth in Section 10166.01.
(e) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 2. Section 10140.6 is added to the Business and Professions
Code, to read:
10140.6. (a) A real estate licensee shall not publish, circulate,
distribute, or cause to be published, circulated, or distributed in
any newspaper or periodical, or by mail, any matter pertaining to any
activity for which a real estate license is required that does not
contain a designation disclosing that he or she is performing acts
for which a real estate license is required.
(b) (1) A real estate licensee shall disclose his or her name,
license identification number number and
unique identifier assigned to that licensee by the Nationwide
Mortgage Licensing System and Registry, if that licensee is a
mortgage loan originator, and responsible broker's identity, as
defined in Section 10159.7, on all solicitation materials intended
to be the first point of contact with consumers and on real property
purchase agreements when acting as an agent in those transactions.
The commissioner may adopt regulations identifying the materials in
which a licensee must disclose a license identification
number number and unique identifier assigned to that
licensee by the Nationwide Mortgage Licensing System and Registry,
and responsible broker's identity.
(2) A real estate licensee shall disclose his or her name and
responsible broker's identity, as defined in Section 10159.7, on "for
sale," rent, lease, "open house," and directional signs.
(2)
(3) For purposes of this section, "solicitation
materials intended to be the first point of contact with consumers"
includes business cards, stationery, advertising fliers,
advertisements on television, in print, or electronic media,
"for sale," rent, lease, "open house," and directional signs,
and other materials designed to solicit the creation of a
professional relationship between the licensee and a consumer.
(3)
(4) Nothing in this section shall be construed to limit
or change the requirement described in Section 10236.4 as applicable
to real estate brokers.
(c) (1) This section shall
not apply to "open house" and directional signs displaying only the
responsible broker's identity, as defined in Section
10159.7. 10159.7, that do not contain a reference to a
licensee's name.
(2) This section shall not apply to "open house" and directional
signs that do not contain a reference to a licensee's name or
responsible broker's identity, as defined in Section 10159.7.
(d) "Mortgage loan originator," "unique identifier," and
"Nationwide Mortgage Licensing System and Registry" have the meanings
set forth in Section 10166.01.
(d)
(e) This section shall become operative on January 1,
2018.