Bill Text: CA SB706 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Business and professions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2011-10-09 - Chaptered by Secretary of State. Chapter 712, Statutes of 2011. [SB706 Detail]

Download: California-2011-SB706-Amended.html

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BILL NUMBER: SB 706	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 24, 2011

INTRODUCED BY   Senator Price

                        FEBRUARY 18, 2011

   An act to add Sections 10050.1  and 11310.1  
, 10100.4, 10106, 11310.1, 11315.7, and 11315.9  to the
Business and Professions Code, relating to real estate.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 706, as amended, Price. Real estate.
   Existing law provides for the licensure and regulation of real
estate brokers and real estate salespersons by the Real Estate
Commissioner of the Department of Real Estate. Existing law provides
for the licensure and regulation of persons who engage in specified
real estate appraisal activity by the Director of the Office of Real
Estate Appraisers.
   This bill would state that protection of the public shall be the
highest priority for the department and the office in exercising
their licensing, regulatory, and disciplinary functions.  The
bill would authorize the department and the office to enter into a
settlement with a licensee or applicant instead of the issuance of an
accusation or statement of issues against the licensee or applicant,
would require the settlement to identify the factual basis for the
action being taken and the statutes   or regulations that
have been violated, and would provide that settlement against a
licensee or applicant would be a public record, as specified. The
bill would authorize an administrative law judge to order a licensee
in a disciplinary proceeding to pay, upon request of the department
or the office, the reasonable costs of investigating and prosecuting
the disciplinary case against the licensee. The bill would require
costs recovered in these disciplinary proceedings to be deposited in
either the Real Estate Fund or the Real Estate Appraisers Regulation
Fund, as specified, and would make the funds available upon
appropriation by the Legislature. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 10050.1 is added to the Business and
Professions Code, to read:
   10050.1.  Protection of the public shall be the highest priority
for the Department of Real Estate in exercising its licensing,
regulatory, and disciplinary functions. Whenever the protection of
the public is inconsistent with other interests sought to be
promoted, the protection of the public shall be paramount.
   SEC. 2.    Section 10100.4 is added to the  
Business and Professions Code   , to read:  
   10100.4.  (a) Notwithstanding Section 11415.60 of the Government
Code, the department may enter into a settlement with a licensee or
applicant instead of the issuance of an accusation or statement of
issues against that licensee or applicant.
   (b) The settlement shall identify the factual basis for the action
being taken and the statutes or regulations violated.
   (c) A person who enters a settlement pursuant to this section is
not precluded from filing a petition, in the timeframe permitted by
law, to modify the terms of the settlement or a petition for early
termination of probation, if probation is part of the settlement.
   (d) Any settlement with a licensee executed pursuant to this
section shall be considered discipline and a public record and shall
be posted on the department's Internet Web site. Any settlement
against an applicant executed pursuant to this section shall be
considered a public record and shall be posted on the department's
Internet Web site. 
   SEC. 3.    Section 10106 is added to the  
Business and Professions Code   , to rea  d: 

   10106.  (a) Except as otherwise provided by law, in any order
issued in resolution of a disciplinary proceeding before the
department, the commissioner may request the administrative law judge
to direct a licensee found to have committed a violation of this
part to pay a sum not to exceed the reasonable costs of the
investigation and enforcement of the case.
   (b) In the case of a disciplined licensee that is a corporation or
a partnership, the order may be made against the licensed corporate
entity or licensed partnership.
   (c) A certified copy of the actual costs, or a good faith estimate
of costs where actual costs are not available, signed by the
commissioner or the commissioner's designated representative, shall
be prima facie evidence of reasonable costs of investigation and
prosecution of the case. The costs shall include the amount of
investigative and enforcement costs up to the date of the hearing,
including, but not limited to, charges imposed by the Attorney
General.
   (d) The administrative law judge shall make a proposed finding of
the amount of reasonable costs of investigation and prosecution of
the case when requested pursuant to subdivision (a). The finding of
the administrative law judge with regard to costs shall not be
reviewable by the commissioner to increase the cost award. The
commissioner may reduce or eliminate the cost award, or remand to the
administrative law judge where the proposed decision fails to make a
finding on costs requested pursuant to subdivision (a).
   (e) Where an order for recovery of costs is made and timely
payment is not made as directed in the commissioner's decision, the
commissioner may enforce the order for repayment in any appropriate
court. This right of enforcement shall be in addition to any other
rights the commissioner may have as to any licentiate to pay costs.
   (f) In any action for recovery of costs, proof of the commissioner'
s decision shall be conclusive proof of the validity of the order of
payment and the terms for payment.
   (g) (1) Except as provided in paragraph (2), the department shall
not renew or reinstate the license of any licensee who has failed to
pay all of the costs ordered under this section.
   (2) The department may, in its discretion, conditionally renew or
reinstate for a maximum of one year the license of any licensee who
demonstrates financial hardship and who enters into a formal
agreement with the department to reimburse the department within that
one-year period for the unpaid costs.
   (h) All costs recovered under this section shall be considered a
reimbursement for costs incurred and shall be deposited in the Real
Estate Fund to be available, notwithstanding Section 10451, upon
appropriation by the Legislature.
   (i) Nothing in this section shall preclude the department from
including the recovery of the costs of investigation and enforcement
of a case in any stipulated settlement. 
   SEC. 2.  SEC. 4.   Section 11310.1 is
added to the Business and Professions Code, to read:
   11310.1.  Protection of the public shall be the highest priority
for the Office of Real Estate Appraisers in exercising its licensing,
regulatory, and disciplinary functions. Whenever the protection of
the public is inconsistent with other interests sought to be
promoted, the protection of the public shall be paramount.
   SEC. 5.    Section 11315.7 is added to the  
Business and Professions Code   , to read:  
   11315.7.  (a) Notwithstanding Section 11415.60 of the Government
Code, the office may enter into a settlement with a licensee or
applicant instead of the issuance of an accusation or statement of
issues against that licensee or applicant.
   (b) The settlement shall identify the factual basis for the action
being taken and the statutes or regulations violated.
   (c) A person who enters a settlement pursuant to this section is
not precluded from filing a petition, in the timeframe permitted by
law, to modify the terms of the settlement or a petition for early
termination of probation, if probation is part of the settlement.
   (d) Any settlement with a licensee executed pursuant to this
section shall be considered discipline and a public record and shall
be posted on the office's Internet Web site. Any settlement with an
applicant executed pursuant to this section shall be considered a
public record and shall be posted on the office's Internet Web site.

   SEC. 6.    Section 11315.9 is added to the  
Business and Professions Code   , to read:  
   11315.9.  (a) Except as otherwise provided by law, in any order
issued in resolution of a disciplinary proceeding before the office,
the director may request the administrative law judge to direct a
licensee found to have committed a violation of this part to pay a
sum not to exceed the reasonable costs of the investigation and
enforcement of the case.
   (b) In the case of a disciplined licensee that is a corporation or
a partnership, the order may be made against the licensed corporate
entity or licensed partnership.
   (c) A certified copy of the actual costs, or a good faith estimate
of costs where actual costs are not available, signed by the
director or the director's designated representative shall be prima
facie evidence of reasonable costs of investigation and prosecution
of the case. The costs shall include the amount of investigative and
enforcement costs up to the date of the hearing, including, but not
limited to, charges imposed by the Attorney General.
   (d) The administrative law judge shall make a proposed finding of
the amount of reasonable costs of investigation and prosecution of
the case when requested pursuant to subdivision (a). The finding of
the administrative law judge with regard to costs shall not be
reviewable by the director to increase the cost award. The director
may reduce or eliminate the cost award, or remand to the
administrative law judge where the proposed decision fails to make a
finding on costs requested pursuant to subdivision (a).
   (e) Where an order for recovery of costs is made and timely
payment is not made as directed in the director's decision, the
office may enforce the order for repayment in any appropriate court.
This right of enforcement shall be in addition to any other rights
the office may have as to any licentiate to pay costs.
   (f) In any action for recovery of costs, proof of the director's
decision shall be conclusive proof of the validity of the order of
payment and the terms for payment.
   (g) (1) Except as provided in paragraph (2), the office shall not
renew or reinstate the license of any licensee who has failed to pay
all of the costs ordered under this section.
   (2) The office may, in its discretion, conditionally renew or
reinstate for a maximum of one year the license of any licensee who
demonstrates financial hardship and who enters into a formal
agreement with the office to reimburse the office within that
one-year period for the unpaid costs.
   (h) All costs recovered under this section shall be considered a
reimbursement for costs incurred and shall be deposited in the Real
Estate Appraisers Regulation Fund to be available upon appropriation
by the Legislature.
   (i) Nothing in this section shall preclude the office from
including the recovery of the costs of investigation and enforcement
of a case in any stipulated settlement.