Department of Real Estate and the Bureau of Real Estate Appraisers: Bureau of Automotive Repair.

Existing law authorizes the director to include in the citation system a process for informal review of and recommendation on citations, as specified. Existing law subjects the bureau to review by the appropriate policy committees of the Legislature, as specified, and requires that review to be performed as if the act were scheduled to be repealed on January 1, 2028.

Existing law authorizes the director to include in the citation system a process for an automotive repair dealer to prevent disclosure of the citation on the internet, as specified and subject to a certain eligibility requirement. Existing law also authorizes the bureau to require any employee of the automotive repair dealer who was involved in the violation resulting in the bureau's issuance of the citation to attend remedial training with the automotive repair dealer to prevent disclosure of the citation. Existing law repeals these provisions on July 1, 2026.

This bill would extend the effective date of these provisions until January 1, 2028. By extending these provisions, the violation of which is a crime, this bill would impose a state-mandated local program.

The Real Estate Law establishes the Department of Real Estate in the Business, Consumer Services, and Housing Agency to license and regulate real estate licensees under that law, including real estate brokers and real estate salespersons. The Real Estate Appraisers' Licensing and Certification Law establishes within the Department of Consumer Affairs the Bureau of Real Estate Appraisers to license and regulate real estate appraisers. Under existing law, the powers and duties of the Department of Real Estate and the Bureau of Real Estate Appraisers under those laws, respectively, are subject to review by the appropriate policy committees of the Legislature as if those laws were to be repealed on January 1, 2026.

This bill would extend that date to January 1, 2030.

Existing law requires the department to register a service member or spouse of a service member who relocated to this state because of military orders for military service within this state and who holds a professional license in good standing outside of California, subject to satisfaction of specified requirements, and deems the person to be a licensee of the department for specified purposes.

This bill would add conforming provisions to the Real Estate Law.

Existing law requires the department to compile information on military, veteran, and spouse licensure and submit an annual report to the Legislature and specifies the information required to be included in the report.

This bill would require additional information to be included in the report, including the number of applicants who requested to apply military education, training, or experience towards meeting licensure requirements. The bill would require the department, in every application for licensure, to inquire as to whether the applicant is serving or has served in the military and whether the applicant intends to apply military experience and training toward licensure requirements. The bill would require the department to post specified information on the department's internet website about applying military experience and training toward licensure requirements.

This bill would delete obsolete provisions relating to applications for licensure received by the commissioner before October 1, 2007. The bill would deem a salesperson license issued to an applicant who applied before October 1, 2007, whose license was suspended for failing to satisfy specified requirements to be deemed expired 4 years following the date of issuance of the license. The bill would make conforming changes.

Existing law requires a fingerprint-based criminal history information check required by statute to be requested from the Department of Justice and to be applicable to the person identified in the referencing statute. Existing law also requires the agency or entity identified in the statute to submit to the Department of Justice fingerprint images and related information required by the Department of Justice of the types of applicants identified in the referencing statute, for the purpose of obtaining certain conviction and arrest information. Existing law requires the department to disseminate certain criminal history information when certain conditions are met, including that the information is to be used for employment, licensing, or certification purposes.

This bill would require the Department of Real Estate to submit to the Department of Justice fingerprint images and related information required by the Department of Justice for certain applicants and licensees, as specified. The bill would also require the Department of Justice to provide a state- or federal-level response pursuant to the above-described criminal history information dissemination provisions.

Existing law requires every real estate broker and salesperson licensee to provide their current email address to the commissioner.

This bill would specify that a licensee's email address shall not be considered a public record subject to disclosure under the California Public Records Act. The bill would specify that information sent from an email account to a valid email address provided by the applicant or licensee is presumed to have been delivered to the email address provided.

Existing law authorizes the Real Estate Commissioner to require proof as they may deem advisable concerning the honesty and truthfulness of certain applicants for a license, designated agents, and others, as specified, before authorizing the issuance of a license for a location. Existing law also authorizes the commissioner to hold a hearing and to refuse to issue a license to an applicant who does not furnish satisfactory proof of their honesty and truthfulness or of the honesty and truthfulness of the corporate officers, directors, and shareholders. To assist in this determination, existing law requires the fingerprinting of every original applicant, including designated agents, officers, directors, and persons owning 25 percent or more of the shares of the corporate applicant.

This bill would also require, for that purpose, the fingerprinting of persons owning or controlling a beneficial ownership interest of 25 percent or more in the entity making application.

Existing law establishes, within the Real Estate Fund, a Consumer Recovery Account, which is funded by fees and fines imposed on licensees. Existing law authorizes an aggrieved person to file an application with the department for payment from the Consumer Recovery Account for the unpaid amount of a final judgment or an arbitration award that the aggrieved person has obtained against a defendant for fraud, misrepresentation, or deceit, made with intent to defraud, or conversion of trust funds, arising out of a transaction in which the defendant, while licensed, performed acts for which a license was required. Existing law specifies that all matters finally adjudicated in the underlying action are conclusive as to the judgment debtor and applicant in the proceeding against the Consumer Recovery Account. Existing law requires the claimant to serve a notice to the judgment debtor with a specified statement, and requires the commissioner to give notice of a decision rendered with respect to the application to the claimant and judgment debtor that contains a specified statement relating to denial or payment of the claim. Existing law provides that the license of the broker, salesperson, or prepaid rental listing service license shall be automatically suspended upon the date of payment from the Consumer Recovery Account.

This bill would instead specify that all matters finally adjudicated in the underlying action are conclusive if the final judgment was established by proof by clear and convincing evidence or the commissioner determined that the applicant provided clear and convincing evidence of the judgment debtor's fraud, misrepresentation, deceit, or conversion of trust funds. The bill would authorize the commissioner to grant payment on an application if the final judgment was established by proof by preponderance of the evidence or a higher standard of proof. Under the bill, the above-described requirement for the automatic suspension of the license upon the date of payment from the Consumer Recovery Account would be conditioned on the final judgment being established by proof by clear and convincing evidence or the commissioner determining that the claimant provided clear and convincing evidence of the fraud, misrepresentation, deceit, or conversion of trust funds. The bill would revise the statements in the notices specified above, including revising the statement on the notice required to be given by the commission after the decision rendered, depending on whether the decision includes suspension of the judgment debtor's license.

Existing law establishes the Real Estate Appraisers Regulation Fund, consisting of moneys raised by fees and assessments imposed pursuant to the Real Estate Appraisers' Licensing and Certification Law. Existing law further establishes within that fund the Administration Account and the Recovery Account and requires 5% of the amount of any license or certificate fee under the Real Estate Appraisers' Licensing and Certification Law to be credited to the Recovery Account, a continuously appropriated fund. Existing law requires the Bureau of Real Estate Appraisers to adopt regulations for the administration of the Recovery Account relating to claims, funding, and administrative procedures, as specified.

This bill would repeal the provisions providing for the adoption of regulations and would instead enact provisions relating to claims, funding, and the administration of the Recovery Account. The bill, among other things, would establish eligibility, application, and notice requirements and procedures for the bureau's consideration and investigation of applications. The bill would authorize the bureau to transfer funds between the Administration Account and the Recovery Account under specified circumstances. By authorizing the transfer of funds into a continuously appropriated fund, the bill would make an appropriation. The bill would require a real estate appraiser's license to be automatically suspended upon payment from the Recovery Account of a settlement of a claim or toward satisfaction of a judgment based on clear and convincing evidence of fraud, misrepresentation, or deceit with intent to defraud. The bill would require a claimant who is an electronic filer who signs the application using an electronic signature to declare under penalty of perjury that the information submitted is true and correct, and would make it a misdemeanor for a person to file documents with false information. By expanding the crime of perjury and creating a new crime, the bill would impose a state-mandated local program. The bill would repeal all of the provisions relating to the Real Estate Appraisers Regulation Fund on January 1, 2030.

This bill would require the Bureau of Real Estate Appraisers, on and after July 1, 2026, to post specified information about the Recovery Account on the bureau's internet website, including eligibility requirements and the application process. The bill would require the bureau, upon receipt of a complaint by a licensee or a member of the public, to provide a notification to the complainant that includes information regarding eligibility and the application process. The bill would require the bureau, on or before January 1, 2027, and annually thereafter, to submit to the Legislature a report that includes specified information relating to the Recovery Account, including the balance of the account for the prior fiscal year and the total payments made from the Recovery Account.

This bill would require the bureau to conduct a study on the feasibility of mandatory licensing for real estate appraisers in California and to report its findings to the appropriate committees of the Legislature on or before December 31, 2028. The bill would require the report to include, among other things, the types of real estate appraisal assignments for which a license is currently not required in California and the bureau's recommendations on specified matters, including recommended amendments to existing law. The bill would repeal those provisions on January 1, 2030.

The bill would make other conforming and technical changes to various provisions of the Real Estate Law, including eliminating gendered pronouns and updating cross-references.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

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.