Bill Text: CA SB641 | 2025-2026 | Regular Session | Introduced
Bill Title: Department of Consumer Affairs and Department of Real Estate: states of emergency: waivers and exemptions.
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Introduced) 2025-02-21 - From printer. May be acted upon on or after March 23. [SB641 Detail]
Download: California-2025-SB641-Introduced.html
CALIFORNIA LEGISLATURE—
2025–2026 REGULAR SESSION
Senate Bill
No. 641
| Introduced by Senator Ashby (Principal coauthors: Senators Cervantes, Cortese, Gonzalez, Grayson, Hurtado, and Pérez) (Coauthors: Senators Allen, Cabaldon, Padilla, Rubio, and Wahab) |
February 20, 2025 |
An act to amend Sections 122, 136, and 10176 of, and to add Sections 108.1, 136.5, 7058.9, and 10089 to, the Business and Professions Code, relating to professions and vocations, and declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 641, as introduced, Ashby.
Department of Consumer Affairs and Department of Real Estate: states of emergency: waivers and exemptions.
Existing law establishes in the Business, Consumer Services, and Housing Agency the Department of Real Estate to license and regulate real estate licensees, and the Department of Consumer Affairs, which is composed of various boards that license and regulate various businesses and professions.
This bill would authorize the Department of Real Estate and boards under the jurisdiction of the Department of Consumer Affairs to waive the application of certain provisions of the licensure requirements that the board or department is charged with enforcing for licensees and applicants impacted by a declared federal, state, or local emergency or whose home or business is located in a declared disaster area, including certain examination, fee, and continuing education requirements. The bill would exempt impacted licensees of boards from, among other
requirements, the payment of duplicate license fees. The bill would require all applicants and licensees of the Department of Real Estate or boards under the Department of Consumer Affairs to provide the board or department with an email address. The bill would prohibit a contractor licensed pursuant to the Contractors State License Law from engaging in private debris removal unless the contractor has one of specified license qualifications or as authorized by the registrar of contractors during a declared state of emergency or for a declared disaster area. The bill would require the Real Estate Commissioner, upon the declaration of a state of emergency, to determine the nature and scope of any unlawful, unfair, or fraudulent practices, as specified, and provide specified notice to the public regarding those practices. The bill would authorize the commissioner to suspend or revoke a real estate license if the licensee makes an unsolicited offer to an owner of real property to purchase or acquire an interest
in the real property for an amount less than the fair market value of the property or interest of the property if the property is located in a declared disaster area, and would also make a violation of that provision a misdemeanor. By creating a new crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would declare that it is to take effect immediately as an urgency statute.
Digest Key
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
It is the intent of the Legislature to provide boards, bureaus, commissions, and regulatory entities within the jurisdiction of the Department of Consumer Affairs and the Department of Real Estate with authority to address licensing and enforcement concerns in real time after an emergency is declared. The Legislature does not intend for any provision of this bill to require regulations to implement.SEC. 2.
Section 108.1 is added to the Business and Professions Code, to read:108.1.
(a) For purposes of this section, “disaster area” means an area for which a federal, state, or local emergency or disaster has been declared.(b) To aid in the protection of the public health, the provision of patient care, the continuity of services, and to support impacted individuals, the Department of Real Estate or any board under the jurisdiction of the Department of Consumer Affairs, as specified in Section 101, may waive the application of any provision of law that the board or department is charged with enforcing for licensees and applicants impacted by a declared federal, state, or local emergency or whose home or business is located in a disaster area, that is related to any of the following:
(1) Examination eligibility and timing requirements.
(2) Licensure renewal deadlines.
(3) Continuing education completion deadlines.
(4) License display requirements.
(5) Fee submission timing requirements.
(6) Delinquency fees.
(c) The authority specified in subdivision (b) shall extend through the duration of a declared federal, state, or local emergency or disaster for licensees and applicants located in a disaster area and for either of the following, as determined by the board or the Department of Real Estate and will aid in the protection of the public health,
the provision of patient care, the continuity of services, or the support of impacted individuals:
(1) One year after the end of the declared emergency or disaster.
(2) An additional period of time beyond one year after the end of the declared emergency or disaster, as determined by the board or the Department of Real Estate.
SEC. 3.
Section 122 of the Business and Professions Code is amended to read:122.
(a) Except as specified in subdivision (b) or otherwise provided by law, the department and each of the boards, bureaus, committees, and commissions within the department may charge a fee for the processing and issuance of a duplicate copy of any certificate of licensure or other form evidencing licensure or renewal of licensure. The fee shall be in an amount sufficient to cover all costs incident to the issuance of the duplicate certificate or other form but shall not exceed twenty-five dollars ($25).(b) This section shall not apply to a licensee impacted by a declared federal, state, or local emergency or disaster or whose home or business is located in an area for which a federal, state, or local emergency or disaster has been declared.
SEC. 4.
Section 136 of the Business and Professions Code is amended to read:136.
(a) Each person holding a license, certificate, registration, permit, or other authority to engage in a profession or occupation issued by a board within the department shall notify the issuing board at its principal office of any change in the person’s mailing address within 30 days after the change, unless the board has specified by regulations a shorter time period.(b) Except as otherwise provided by law, failure of a licensee to comply with the requirement in subdivision (a) constitutes grounds for the issuance of a citation and administrative fine, if the board has the authority to issue citations and administrative fines.
(c) This section shall not apply to a licensee whose home or business mailing address is located in an area for which a federal, state, or local emergency or disaster area is declared.
SEC. 5.
Section 136.5 is added to the Business and Professions Code, to read:136.5.
Every applicant for licensure and every licensee of the Department of Real Estate or a board under the jurisdiction of the Department of Consumer Affairs, as specified in Section 101, shall provide the Department of Real Estate or the board with an email address.SEC. 6.
Section 7058.9 is added to the Business and Professions Code, to read:7058.9.
(a) A contractor shall not engage in private debris removal unless the contractor has one of the following licenses or classifications:(1) A - General Engineering Contractor.
(2) B - General Building Contractor.
(3) A C-61 - Limited Specialty Contractor Classification for Debris Removal and Flood Muck Out. The board may adopt regulations to define the scope and requirements of this classification.
(b) During a declared federal, state, or local emergency or for a declared disaster area, the registrar may authorize additional classifications to perform
private debris removal or muck out services based on the needs of the declared emergency or disaster.
(1) The registrar may make the determination on a case-by-case basis and without requiring regulations.
(2) The registrar may require the qualifier for the license to have passed an approved hazardous substance certification examination as the disaster requires.
SEC. 7.
Section 10089 is added to the Business and Professions Code, to read:10089.
Immediately upon the declaration of a federal, state, or local emergency or disaster area, the commissioner, in consultation with other agencies and departments, as appropriate, shall do the following:(a) Expeditiously, and until 90 days following the end of the emergency, determine the nature and scope of any unlawful, unfair, or fraudulent practices employed by any individual or entity seeking to take advantage of property owners in the wake of the emergency.
(b) Provide notice to the public of the nature of these practices, their rights under the law, relevant resources that may be available, and contact information for authorities to whom violations may be
reported.
SEC. 8.
Section 10176 of the Business and Professions Code is amended to read:10176.
The commissioner may, upon(a) Making any substantial misrepresentation.
(b) Making any false promises of a character likely to influence, persuade, or induce.
(c) A continued and flagrant course of misrepresentation or making of false promises through licensees.
(d) Acting for more than one party in a transaction without the knowledge or consent of all parties thereto.
(e) Commingling with his or her their own money or property the money or other property of
others which that is received and held by him or her. the licensee.
(f) Claiming, demanding, or receiving a fee, compensation, or commission under any exclusive agreement authorizing a licensee to perform any acts set forth in Section 10131 for compensation or commission where the agreement does not contain a definite, specified date of final and complete termination.
(g) The claiming or taking by a licensee of any secret or undisclosed amount of compensation, commission, or profit or the failure of a
licensee to reveal to the buyer or seller contracting with the licensee the full amount of the licensee’s compensation, commission, or profit under any agreement authorizing the licensee to do any acts for which a license is required under this chapter for compensation or commission prior to or coincident with the signing of an agreement evidencing the meeting of the minds of the contracting parties, regardless of the form of the agreement, whether evidenced by documents in an escrow or by any other or different procedure.
(h) The use by a licensee of any provision, which allows the licensee an option to purchase, in an agreement with a buyer or seller that authorizes the licensee to sell, buy, or exchange real estate or a business opportunity for compensation or commission, except when the licensee, prior to or coincident with election to exercise the option to purchase, reveals in writing to the buyer or seller the full amount of the
licensee’s profit and obtains the written consent of the buyer or seller approving the amount of the profit.
(i) Any other conduct, whether of the same or of a different character than specified in this section, which constitutes fraud or dishonest dealing.
(j) Obtaining the signature of a prospective buyer to an agreement which provides that the prospective buyer shall either transact the purchasing, leasing, renting, or exchanging of a business opportunity property through the broker obtaining the signature, or pay a compensation to the broker if the property is purchased, leased, rented, or exchanged without the broker first having obtained the written authorization of the owner of the property concerned to offer the property for sale, lease, exchange, or rent.
(k) Failing to disburse funds in accordance with a
commitment to make a mortgage loan that is accepted by the applicant when the real estate broker represents to the applicant that the broker is either of the following:
(1) The lender.
(2) Authorized to issue the commitment on behalf of the lender or lenders in the mortgage loan transaction.
(l) Intentionally delaying the closing of a mortgage loan for the sole purpose of increasing interest, costs, fees, or charges payable by the borrower.
(m) Violating any section, division, or article of law which provides that a violation of that section, division, or article of law by a licensed person is a violation of that person’s licensing law, if it occurs within the scope of that person’s duties as a licensee.
(n) (1) Making an unsolicited offer to an owner of real property, on their own behalf or on behalf of a client, to purchase or otherwise acquire any interest in the real property for an amount less than the fair market value of the property or interest in the property when that property is located in an area included in a declared federal, state, or local emergency or disaster area, for the duration of the declared emergency and for three months thereafter.
(2) Any person, including, but not limited to, an officer, director, agent, or employee of a corporation, who violates this subdivision is guilty of a misdemeanor punishable by a fine of up to ten thousand dollars ($10,000), by imprisonment for up to six months, or both.
SEC. 9.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.SEC. 10.
This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:In order to support licensed professionals impacted by the disasters caused by the Palisades and Eaton wildfires, it is necessary that this act take effect immediately.
