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SB-263 Real estate applicants and licensees: education requirements: fair housing and implicit bias training.(2021-2022)

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Date Published: 09/29/2021 02:00 PM
SB263:v95#DOCUMENT

Senate Bill No. 263
CHAPTER 361

An act to amend, repeal, and add Sections 10151, 10153.2, and 10170.5 of the Business and Professions Code, relating to real estate.

[ Approved by Governor  September 28, 2021. Filed with Secretary of State  September 28, 2021. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 263, Rubio. Real estate applicants and licensees: education requirements: fair housing and implicit bias training.
Existing law, the Real Estate Law, establishes the Department of Real Estate, with the Real Estate Commissioner as its chief officer, and sets forth the powers and duties of the commissioner relating to the licensure and regulation of real estate brokers and salespersons. Existing law requires an applicant for an original real estate broker license examination to successfully complete courses of study in specified subjects, including real estate practice, legal aspects of real estate, and real estate appraisal. Existing law specifies each of these courses to be a 3-semester unit course. Existing law also requires an applicant for a real estate salesperson license examination or for both the examination and license to successfully complete courses of study in specified subjects, including real estate principles and real estate practice. Existing law requires a licensee to successfully complete 45 hours of continuing education as a prerequisite to initial license renewal, including, among other things, a 3-hour course in fair housing. For subsequent renewals, the law requires a licensee to complete 45 hours of continuing education, including an 8-hour update survey course.
This bill would revise the real estate practice course for an applicant for a real estate broker or salesperson license to include a component on implicit bias, as specified, and would revise the legal aspects of real estate course for that applicant to include a component on state and federal fair housing laws, as specified. The bill would require that fair housing component to include an interactive participatory component, as specified. The bill would revise the fair housing course requirement for initial license renewals to include an interactive participatory component, as specified. The bill would also require a licensee, as part of the licensee’s 45 hours of continuing education, to successfully complete a 2-hour course in implicit bias training, as specified. The bill would increase the hours required for the update survey course to 9 hours. The bill would delay the operation of these provisions until January 1, 2023.
This bill would revise the description of the courses required for an applicant for a real estate broker or salesperson license to be 3-unit semester courses.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 10151 of the Business and Professions Code is amended to read:

10151.
 (a) Application for the real estate salesperson license examination 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 include valid contact information at which the department may contact the applicant and shall be accompanied by the real estate salesperson license examination fee.
(b) Persons who have been notified by the commissioner that they passed the real estate salesperson license examination may apply for a real estate salesperson license. A person applying for the salesperson examination may also apply for a real estate salesperson license. However, a license shall not be issued until the applicant passes the real estate salesperson license examination. If there is any change to the information contained in a real estate salesperson license application after the application has been submitted and before the license has been issued, the commissioner may require the applicant to submit a supplement to the application listing the changed information.
(c) (1) The commissioner may prescribe the format and content of the real estate salesperson license application. The application for the real estate salesperson license shall include valid contact information at which the department may contact the applicant.
(2) An application for the real estate salesperson license examination or for both the examination and license that is received by the commissioner on or after October 1, 2007, shall include evidence or certification, satisfactory to the commissioner, of successful completion at an accredited institution of a three-semester unit course, or the quarter equivalent thereof, or successful completion of an equivalent course of study as defined in Section 10153.5 in real estate principles as well as the successful completion at an accredited institution 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. The applicant shall provide this evidence or certification to the commissioner prior to taking the real estate salesperson license examination.
(d) The commissioner shall waive the requirements of this section for the following applicants:
(1) An applicant who is a member of the State Bar of California.
(2) An applicant who has qualified to take the examination for an original real estate broker license by satisfying the requirements of Section 10153.2.
(e) Application for endorsement to act as a mortgage loan originator, as defined in Section 10166.01, shall be made either electronically or in writing as directed by the commissioner. The commissioner may prescribe the format and the content of the mortgage loan originator endorsement application, which shall meet the minimum requirements for licensing of a mortgage loan originator, pursuant to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (Public Law 110-289).
(f) This section shall remain in effect only until January 1, 2023, and as of that date is repealed.

SEC. 2.

 Section 10151 is added to the Business and Professions Code, to read:

10151.
 (a) Application for the real estate salesperson license examination 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 include valid contact information at which the department may contact the applicant and shall be accompanied by the real estate salesperson license examination fee.
(b) Persons who have been notified by the commissioner that they passed the real estate salesperson license examination may apply for a real estate salesperson license. A person applying for the salesperson examination may also apply for a real estate salesperson license. However, a license shall not be issued until the applicant passes the real estate salesperson license examination. If there is any change to the information contained in a real estate salesperson license application after the application has been submitted and before the license has been issued, the commissioner may require the applicant to submit a supplement to the application listing the changed information.
(c) (1) The commissioner may prescribe the format and content of the real estate salesperson license application. The application for the real estate salesperson license shall include valid contact information at which the department may contact the applicant.
(2) An application for the real estate salesperson license examination or for both the examination and license that is received by the commissioner on or after October 1, 2007, shall include evidence or certification, satisfactory to the commissioner, of successful completion at an accredited institution of a three-semester unit course, or the quarter equivalent thereof, or successful completion of an equivalent course of study as defined in Section 10153.5 in real estate principles as well as the successful completion at an accredited institution of a course in real estate practice, a course in fair housing set forth in Section 10153.2, 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. The applicant shall provide this evidence or certification to the commissioner prior to taking the real estate salesperson license examination.
(d) The commissioner shall waive the requirements of this section for the following applicants:
(1) An applicant who is a member of the State Bar of California.
(2) An applicant who has qualified to take the examination for an original real estate broker license by satisfying the requirements of Section 10153.2.
(e) Application for endorsement to act as a mortgage loan originator, as defined in Section 10166.01, shall be made either electronically or in writing as directed by the commissioner. The commissioner may prescribe the format and the content of the mortgage loan originator endorsement application, which shall meet the minimum requirements for licensing of a mortgage loan originator, pursuant to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (Public Law 110-289).
(f) This section shall become operative on January 1, 2023.

SEC. 3.

 Section 10153.2 of the Business and Professions Code is amended to read:

10153.2.
 (a) An applicant to take the examination for an original real estate broker license shall also submit evidence, satisfactory to the commissioner, of successful completion, at an accredited institution, of:
(1) A three-unit semester course, or the quarter equivalent thereof, in each of the following:
(A) Real estate practice.
(B) Legal aspects of real estate.
(C) Real estate appraisal.
(D) Real estate financing.
(E) Real estate economics or accounting.
(2) A three-unit semester course, or the quarter equivalent thereof, in three of the following:
(A) Advanced legal aspects of real estate.
(B) Advanced real estate finance.
(C) Advanced real estate appraisal.
(D) Business law.
(E) Escrows.
(F) Real estate principles.
(G) Property management.
(H) Real estate office administration.
(I) Mortgage loan brokering and lending.
(J) Computer applications in real estate.
(K) On and after July 1, 2004, California law that relates to common interest developments, including, but not limited to, topics addressed in the Davis-Stirling Common Interest Development Act (Part 5 (commencing with Section 4000) of Division 4 of the Civil Code) and in the Commercial and Industrial Common Interest Development Act (Part 5.3 (commencing with Section 6500) of Division 4 of the Civil Code).
(b) The commissioner shall waive the requirements of this section for an applicant who is a member of the State Bar of California and shall waive the requirements for which an applicant has successfully completed an equivalent course of study as determined under Section 10153.5.
(c) The commissioner shall extend credit under this section for any course completed to satisfy requirements of Section 10153.3 or 10153.4.
(d) This section shall remain in effect only until January 1, 2023, and as of that date is repealed.

SEC. 4.

 Section 10153.2 is added to the Business and Professions Code, to read:

10153.2.
 (a) An applicant to take the examination for an original real estate broker license shall also submit evidence, satisfactory to the commissioner, of successful completion, at an accredited institution, of:
(1) A three-unit semester course, or the quarter equivalent thereof, in each of the following:
(A) Real estate practice, which shall include a component on implicit bias, including education regarding the impact of implicit bias, explicit bias, and systemic bias on consumers, the historical and social impacts of those biases, and actionable steps students can take to recognize and address their own implicit biases.
(B) Legal aspects of real estate, which shall include a component on state and federal fair housing laws as they apply to the practice of real estate. The fair housing component shall include an interactive participatory component, during which the applicant shall roleplay as both a consumer and real estate professional.
(C) Real estate appraisal.
(D) Real estate financing.
(E) Real estate economics or accounting.
(2) A three-unit semester course, or the quarter equivalent thereof, in three of the following:
(A) Advanced legal aspects of real estate.
(B) Advanced real estate finance.
(C) Advanced real estate appraisal.
(D) Business law.
(E) Escrows.
(F) Real estate principles.
(G) Property management.
(H) Real estate office administration.
(I) Mortgage loan brokering and lending.
(J) Computer applications in real estate.
(K) On and after July 1, 2004, California law that relates to common interest developments, including, but not limited to, topics addressed in the Davis-Stirling Common Interest Development Act (Part 5 (commencing with Section 4000) of Division 4 of the Civil Code) and in the Commercial and Industrial Common Interest Development Act (Part 5.3 (commencing with Section 6500) of Division 4 of the Civil Code).
(b) The commissioner shall waive the requirements of this section for an applicant who is a member of the State Bar of California and shall waive the requirements for which an applicant has successfully completed an equivalent course of study as determined under Section 10153.5.
(c) The commissioner shall extend credit under this section for any course completed to satisfy requirements of Section 10153.3 or 10153.4.
(d) This section shall become operative on January 1, 2023.

SEC. 5.

 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, a real estate license shall not 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) In addition to paragraphs (1) to (5), inclusive, a broker shall complete 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.
(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 the commissioner’s 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 Development Act (Part 5 (commencing with Section 4000) of Division 4 of the Civil Code).
(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, including relevant information to assist a salesperson or broker in understanding how to be effectively supervised by a responsible broker or branch manager, that will significantly contribute to this goal.
(b) Except as otherwise provided in Section 10170.8, a real estate license shall not 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 (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 (6), inclusive, of subdivision (a) means the passing of a final examination.
(e) This section shall remain in effect only until January 1, 2023, and as of that date is repealed.

SEC. 6.

 Section 10170.5 is added to the Business and Professions Code, to read:

10170.5.
 (a) Except as otherwise provided in Sections 10153.4 and 10170.8, a real estate license shall not 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 that shall include an interactive participatory component, during which the applicant shall roleplay as both a consumer and real estate professional.
(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 two-hour course in implicit bias training that shall include both of the following:
(A) A component regarding the impact of implicit bias, explicit bias, and systemic bias on consumers and the historical and social impacts of those biases.
(B) Actionable steps licensees can take to recognize and address their own implicit biases.
(7) In addition to paragraphs (1) to (6), inclusive, a broker shall complete 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.
(8) Not less than 18 clock hours of courses or programs related to consumer protection, and designated by the commissioner as satisfying this purpose in the commissioner’s 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 Development Act (Part 5 (commencing with Section 4000) of Division 4 of the Civil Code).
(9) 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, including relevant information to assist a salesperson or broker in understanding how to be effectively supervised by a responsible broker or branch manager, that will significantly contribute to this goal.
(b) Except as otherwise provided in Section 10170.8, a real estate license shall not 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 a nine-hour update survey course that covers the subject areas specified in paragraphs (1) to (7), 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 (7), inclusive, of subdivision (a) means the passing of a final examination.
(e) This section shall become operative on January 1, 2023.