Last Updated: December 9, 2009
Legislative Gossip Years: 2009 / 2010 / 2011 / 2012 / 2013
Here’s a list of the 2009 Legislative Session’s bills and Department of Real Estate Regulations which may substantially affect how you do business as a real estate licensee. We give you a brief digest, including the current status of the bill in the legislature, and the date of any updates by the legislature. Check back often, as we review the legislature status frequently!
Reports on passed bills can be found on our Legislative Watch page.
Status Legend:
INTRO = Date the bill was originally introduced for consideration. Bill is still being considered, but not yet law.
AMENDED = Date the bill was last amended. Bill is still being considered, but not yet law.
ENROLLED = Bill approved by both houses and pending the governor’s signature.
PASSED = Bill signed by the governor and passed into law. Click the link to see our monthly Legislative Watch.
INACTIVE = Bill is suspended or no longer being considered for passage into law.
| Bill | Topic | Status |
| DRE Reg 2716.1 | DRE Licensing / Renewal / Examination Fees: This regulation would go into effect July 1, 2009, and increase DRE fees for licensing, renewal, and examination by 40-55%. See more information on this in our “first tuesday blogs the news” article “The DRE to charge higher licensing fees.” | PASSED Effective 07/01/09 |
| DRE Reg 2728 | Partnerships: This regulation would allow licensed brokers to form partnership for the practice of real estate, provided each partner is licensed as a real estate broker. | INTRO 03/27/09 |
| DRE Reg 2731(d) | DBAs containing “Escrow”: This regulation would require any DRE licensee doing business under a DBA containing “escrow” to include the phrase “a non-independent broker escrow” in the DBA name. | INTRO 03/27/09 |
| DRE Reg 2773 | First contact items requiring license number disclosure: This regulation would list advertising items which require a disclosure of the advertising licensee’s license number, as required by legislation passed in 2008. Also see our January 2009 Legislative Watch. | PASSED07/01/09 |
| DRE Reg 2848 | Advertising for trust deed investments: This regulation would make any advertisement for trust deed investments (secured by an interest in real estate) false and misleading for failing to include the phrase, “Investments in trust deeds secured by one or more interest in real property are subject to loss.” | INTRO 03/27/09 |
| DRE Reg 2903 | Dual role disclosure: This regulation would require any licensee who both arranges financing and acts as agent for a client to give written disclosure of this dual role. The written disclosure must be signed by the client. | INTRO 03/27/09 |
| DRE Reg 2930 | Trust fund violations: This regulation would require any licensee whose license has been suspended due to a trust funds violation to complete a continuing education course on trust fund handling no more than 120 days prior to seeking a suspension removal. | INTRO03/27/09 |
| DRE Reg 2971 | Standardized advance fee agreements: This regulation would establish a DRE-standardized advance fee agreement. | INTRO 03/27/09 |
| DRE Reg 3006 | Changes to continuing education: This regulation would make several changes to continuing education courses required of real estate licensees. Most notably, the regulation would require all continuing education course materials to contain a minimum number of words per credit hour, mandate pre-final exam assessments, and limit the speed at which a student may read their course materials. | AMENDED06/10/09 |
| DRE Reg 3007.3 | Continuing education final exams: This regulation would make several changes to final exams on continuing education courses required of real estate licensees. Most notably, the regulation would limit the number of true/false questions on a final exam to 10% of the total number of questions, limit the student to only one re-test upon failing an exam, require a different exam upon re-test, and increase the number of test questions per credit hour. | AMENDED06/10/09 |
| ABX2 2 | DRE Commissioner authority: This bill would give the DRE Commissioner the ability to suspend, revoke, or deny a license based on the violation of federal lending laws.Higher-price mortgage loans: This bill would define and establish guidelines for “higher-priced mortgage loans”, including placing a cap on broker commissions, prohibiting negative amortization provisions, and capping prepayment penalties on such loans. (This bill is the same as AB 260.) | INACTIVE 02/06/09 |
| ABX2 7 | Trustee’s sales: This bill would require a lender to wait an additional 90 days before giving notice of a trustee’s sale on a defaulted homeowner, provided the defaulted loan is a first trust deed securing the homeowner’s principal residence. This bill only applies to loans that were recorded between January 1, 2003 and January 1, 2008, and has a sunset date of January 1, 2011. (This bill is the same as SBX2 7.) | PASSED 02/20/09 |
| AB 33 | New Department of Financial Services: This bill transfers the regulation of real estate appraisers to the Department of Real Estate (DRE) and further transfers the powers of the DRE to a newly created Division of Corporations. | AMENDED 08/25/09 |
| AB 34 | Nationwide Mortgage Licensing System and Registry compliance: This bill would require DRE (and CFL) licensees engaging in loan origination to be registered in the National Mortgage Licensing System and Registry under federal law. Licensees under this registry are subject to certain examination, education, and continuing education requirements. | INACTIVE 09/03/09 |
| AB 103 | Transfer of cotenancy interest: This bill would no longer consider the transfer of cotenancy interest from a deceased cotenant to a living cotenant a change of ownership. This would affect all such transfers occurring prior to January 1, 2020. | INACTIVE 04/22/09 |
| AB 111 | Tax treatment of canceled mortgage debt: This bill would extend the exclusion of discharge of indebtedness income from taxation through January 1, 2012. | AMENDED 03/31/09 |
| AB 113 | Sale of state real property: This bill would require the Department of Transportation to sell the real property it owns adjacent to the unconstructed portion of State Highway 710. The proceeds in excess of the original acquisition prices of the property will be used to fund public higher education. | AMENDED 04/28/09 |
| AB 193 | Suspension of license for tax lien: This bill would authorize the Franchise Tax Board to suspend a license issued by a state governmental licensing entity (including the DRE) for failure to pay taxes pursuant to a state tax lien. | INACTIVE 06/26/09 |
| AB 260 | DRE Commissioner authority: This bill would give the DRE Commissioner the ability to suspend, revoke, or deny a license based on the violation of federal lending laws.Higher-price mortgage loans: This bill would define and establish guidelines for “higher-priced mortgage loans”, including placing a cap on broker commissions, prohibiting negative amortization provisions, and capping prepayment penalties on such loans. ((This bill is the same as ABX2 2.) | PASSED 10/11/09 |
| AB 327 | Minimum franchise tax: This bill would decrease the minimum franchise tax for corporations, limited partnerships, limited liability partnerships, and limited liability companies doing business in California from $800 to $100 for each taxable year beginning on or after January 1, 2009. | INTRO 02/18/09 |
| AB 329 | Reverse mortgages: This bill would require mortgage lenders to advise reverse loan applicants, in writing, to seek financial counseling before entering into a reverse mortgage agreement. Lenders would not be permitted to refer prospective borrowers to mortgage counseling agencies, or pay counseling service fees, without first informing borrowers in writing of any potential conflicts of interest. A lender who offers reverse mortgages to an elder would have a fiduciary duty to act in the elder’s best interest. | PASSED 10/11/09 |
| AB 331 | Rental property possibly subject to foreclosure: This bill would require any landlord of a one-to-four unit residential property to disclose, at the time of executing a rental agreement, if the property is subject to any default or foreclosure. Any tenancy terminated in such a foreclosure would expose the landlord to liability for the greater of twice the monthly rent or twice the damages of any affected tenant. | AMENDED 05/19/09 |
| AB 333 | Subdivision Map Act: This bill would extend the expiration date for tentative and vesting tentative subdivision maps by 12 months. The expiration date for parcel maps with approved tentative or vesting maps that do not expire by January of 2011 would also be extended by 12 months. For vesting tentative maps expiring before January of 2016, the expiration date would be extended to 72 months. | PASSED 07/15 /09 |
| AB 433 | Air quality in dwellings: This bill would require newly constructed buildings with 10 or more dwelling units, with a certain concentration of airborne particles at the proposed building site, to have ventilation systems designed to remove a minimum of 80% of particles from the habitable areas of the units if they are within potential roadway exposure zones. Projects meeting this standard would be subject to an air quality assessment. | AMENDED 04/13/09 |
| AB 473 | Recycling in multifamily dwellings: This bill would require the owner of a dwelling with five or more living units to arrange appropriate services for the collection, handling, and recycling of the dwelling’s solid waste. | INACTIVE 09/11/09 |
| AB 568 | Counterfeiting as a nuisance: This bill would declare that every place used for counterfeiting a registered mark is a nuisance. Individuals would be prohibited from conducting such a nuisance. The owner, lessee, or agent of a nonresidential building upon which such counterfeiting takes place would also be forbidden to allow counterfeiting on the premises. A failure to end the counterfeiting would be punishable by a fine and imprisonment. This bill would have a sunset date of 01/01/15. | PASSED 10/11/09 |
| AB 603 | Tenants of foreclosed properties: This bill would, until January 1, 2013, prohibit a purchaser of foreclosed property from terminating the tenancy of any occupants of that property for 90 days after the purchase, unless the tenant has failed to pay rent or honor a condition of the tenancy. A breaching landlord would be subject to fines of $100 per day of violation. | INACTIVE 06/02/09 |
| AB 761 | Mobilehome rent control: Upon any termination or transfer of interest in a mobilehome tenancy, this bill would permit the management of a mobilehome park to offer a new rental agreement containing rent greater than the maximum rent subject to specific percentages. | AMENDED 05/28/09 |
| AB 869 | Mobilehome park management: This bill would establish a certification program for mobilehome park managers. | INACTIVE04/29/09 |
| AB 891 | Gang use of property: This bill would make the owner of property used by a criminal street gang liable for a fine of up to $1,000 for the first violation, and $2,500 for the second violation. Upon the third violation, the city or district attorney would be authorized to file a petition with the court for seizure and forfeiture of the property. The proceeds from the fines and seizure would be used to fund gang prevention activities. | INTRO 02/26/09 |
| AB 902 | Tax credit for foreclosured home purchase: This bill would state the intent of the legislature to approve a tax credit for individuals who purchase a foreclosed home. | AMENDED 04/14/09 |
| AB 919 | Residential Mortgage Participant Rider: This bill would require that a Residential Mortgage Participant Rider be attached to all deeds of trust secured by residential real property before the trust deed can be recorded. This rider would identify the names and license numbers of the appraiser, lender, real estate broker, and loan originator associated with the origination of the loan secured by the property. | AMENDED 06/22/09 |
| AB 957 | Title insurance: This bill would prohibit a person who acquired title to residential real estate at a foreclosure sale from, as a condition of selling or receiving offers on that property, requiring the buyer to purchase title insurance, escrow services, or a Natural Hazards Disclosure Form from a company chosen by the seller. | PASSED 10/11/09 |
| AB 1029 | Senior citizen and disabled property tax deferral: This bill would require that within 90 days of filing a notice of default, the filing creditor must determine whether the defaulting party is a participant in the property tax deferral program. | AMENDED 09/03/09 |
| AB 1046 | Homestead exemption increases: This bill would increase the homestead exemption amounts. | PASSED 10/11/09 |
| AB 1118 | Home inspector certification: This bill would impose minimum qualifications for certification as a home inspector. | INTRO 02/27/09 |
| AB 1170 | Sex offender and property management disclosures: This bill would require the Department of Justice to make available a consumer information booklet providing information about federal and state law pertaining to sex offender registration as it relates to the renting of leasing of property. Any owner or owner’s agent providing this booklet to a prospective or current resident is considered to have met his sex offender registration disclosure requirements. | AMENDED 04/15/09 |
| AB 1263 | Delivery of unlawful detainer action: This bill would require unlawful detainer notices to be delivered to the tenant personally at the property involved, and not at the tenant’s residence or place of business. | AMENDED 04/27/09 |
| AB 1588 | Monitored mortgage workout: This bill would establish a monitored mortgage workout program and require a notice of right to participate in said program to be sent along with a notice of default. If the defaulted borrower elects to participate in the program, no further steps could be completed in the foreclosure process prior to the borrower’s completion of the program. | INTRO 09/09/09 |
| SBX2 7 | Trustee’s sales: This bill would require a lender to wait an additional 90 days before giving notice of a trustee’s sale on a defaulted homeowner, provided the defaulted loan is a first trust deed securing the homeowner’s principal residence. This bill only applies to loans that were recorded between January 1, 2003 and January 1, 2008, and has a sunset date of January 1, 2011. (This bill is the same as ABX2 7.) | PASSED 02/20/09 |
| SBX2 15 | New home tax credit: Homeowners who purchased a new home on or after March 1, 2009 and before March 1, 2010 may be eligible for a state tax credit for the lesser of 5% of the purchase price or $10,000. A new home is defined as a home that has never been occupied. Additionally, the homeowner must use the home as their principal residence for a minimum of two years to be eligible for the credit. | PASSED 02/20/09 |
| SBX3 17 | Suspension of license for tax lien: This bill would authorize the Franchise Tax Board to suspend a license issued by a state governmental licensing entity (including the DRE) for failure to pay taxes pursuant to a state tax lien. (This bill is the same as AB 193.) | INACTIVE 06/03/09 |
| SBX3 38 | Income tax credit for purchase of principal residence: This bill would extend the applicable period for the current tax credit (the lesser of 5% or $10,000 of the purchase price of the property) for principal residences purchased after March 1, 2009 to December 1, 2010. It would further extend the total tax credit available to $300,000,000 from $100,000,000, and require that the purchase contract for the property be enforceable. | INTRO 05/13/09 |
| SB 23 | Mobilehome park emergency plan: This bill would require operators of mobilehome parks to distribute and conspicuously post emergency and fire safety plans on the mobilhome park premises. | PASSED 09/08/09 |
| SB 36 | Mortgage loan originator designation: This bill would require any DRE licensee who wishes to do business as mortgage loan originator to apply for and receive from the DRE Commissioner a license endorsement to do business as a mortgage loan originator. Failure to obtain such an endorsement could result in penalties to the offending licensee. | PASSED 10/11/09 |
| SB 94 | Loan modification disclosure: This bill would require any DRE licensee who, for compensation, solicits customers for mortgage loan modifications to provide a statement regarding loan modification fees. This bill would also prohibit the DRE licensee from collecting advance fees prior to providing loan modification services.DRE licensee excluded from definition of foreclosure consultant: Additionally, a DRE license acting under the authority of his license is exempt from the rules regulating foreclosure consultants. | PASSED 10/11/09 |
| SB 97 | Tax treatment of canceled mortgage debt: This bill would extend the exclusion of discharge of indebtedness income from taxation through January 1, 2010. | INACTIVE 05/13/09 |
| SB 109 | Real estate auctioneers subject to bonding, disclosure requirements: This bill would remove the real estate exemption from auctioneers, and require that any auctioneer of real estate to adhere to existing law regarding auctions, including laws requiring surety bonds, disclosure of all bidder fees, and disclosure of reserve bids. | INACTIVE 08/27/09 |
| SB 120 | Residential tenants and utilities: This bill would allow a residential tenant or occupant who has made payment to a public utility to deduct the amount of the payment from the rent due. | PASSED 10/11/09 |
| SB 127 | Notices of sale or default: This bill would require a person recording a notice of sale or a notice of default to make the specified disclosures on a website or telephone line which is accessible 24 hours a day and 7 days a week. Further, this bill would require the disclosure to be made 20 days prior to the date of sale (rather than 14 days under current law). | AMENDED 05/20/09 |
| SB 183 | Smoke detectors, water heaters, and carbon monoxide monitors: This bill would require a separate disclosure to certify the compliance of smoke detectors and water heaters with safety regulations. Additionally, this bill would require carbon monoxide detectors be installed in all residential properties. | INACTIVE 06/22/09 |
| SB 204 | Licensing and regulation of escrow agents: This bill would lower the maximum annual fee paid by escrow agents from $2,800 to $2,500 for each escrow location. This decreased fee schedule would be in effect until January 1, 2016. Additionally, this bill would eliminate net worth requirements. | PASSED 10/11/09 |
| SB 206 | Income tax credit for purchasing foreclosed property as principal residence: This bill would allow an income tax credit for individuals who purchase a single-family residence that has been foreclosed on. The amount of the tax credit would be the lesser of 10% of the purchase price or $8,000. Only available for individuals whose adjusted gross incomes are less than $95,000 ($170,000 for joint filers). | AMENDED 07/01/09 |
| SB 239 | Increasing the penalties for mortgage fraud: This bill would formally introduce the crime of mortgage fraud as a felony, punishable by imprisonment. | PASSED 10/11/09 |
| SB 274 | Property taxes for base year value transfers: This bill would allow a severely disabled person or a person over the age of 55 to transfer the base year value of their current property to a property of greater value, as well as extending the window to find a replacement property from two to three years. | AMENDED 04/30/09 |
| SB 306 | Trustee’s sales procedures: This bill would revise the declaration that is required to be filed with the notice of default. This bill would also outline specific rules for mailing a notice to the residents of property subject to a trustee’s sale. Additionally, this bill would change the time period for calculating a payoff amount and requires a beneficiary to prepare and deliver a short-pay demand statement within 21 days of written demand. | PASSED 08/06/09 |
| SB 326 | Housing elements and foreclosure statistics: This bill would require a housing element to include the existing foreclosure rate. It would further require the planning entity to use that foreclosure rate in its assessment of housing needs. | AMENDED 04/13/09 |
| SB 407 | Plumbing fixtures in property transfers: This bill would require that all plumbing fixtures in commercial or residential structures meet a minimum water-conserving standard prior to transfer. This bill would go into effect January 1, 2014. | PASSED 10/11/09 |
| SB 479 | Acceptable business standards for mortgage foreclosure consultants: This bill would state the intent of the legislature to enact regulatory provisions to protect the consumer public from abuses from the mortgage foreclosure industry. | INTRO 02/26/09 |
| SB 496 | DRE licensing and sex offenders: This bill would require, with limited exception, the DRE Commissioner to deny or revoke the license of any person who is a registered sex offender. Additionally, it would require any existing licensee to notify the DRE of their sex offender status within five days or being convicted. | AMENDED 04/23/09 |
| SB 633 | Mortgages. This bill would exclude higher-priced loans, Reg Z-controlled loans, or loans made under a lender’s homeownership preservation program from the prohibition against impounds, trusts, or other accounts for payments of property taxes or insurance. | PASSED 08/06/09 |
| SB 660 | Reverse mortgages: This bill would state that any lender, broker, person, or entity who recommends a reverse mortgage to a prospective borrower owes that prospective borrower a duty of honesty, good faith, and fair dealing and must have reasonable belief that the prospective borrower understands the risks and benefits of a reverse mortgage. | AMENDED 08/20/09 |
| SB 763 | Subdivision Map Act: This bill would extend the expiration of tentative of vesting tentative maps from 12 months to 24 months. | AMENDED 04/13/09 |
| SB 764 | Advance fees and real estate brokers: This bill would require the DRE commissioner to determine the form of advance fee agreements and increase the penalties for violation of advance fee regulations. | AMENDED 04/22/09 |
| SB 782 | Residential tenancies and domestic violence: This bill would allow a tenant who is a victim of domestic violent from a co-habitant to request that the landlord commence a partial eviction on the co-habitant alone. This bill would additionally make an unlawful detainer action for domestic violence only actionable against the transgressing co-habitant, and not any victim. | AMENDED 06/25/09 |
| SB 804 | Mobilehome Residency Law: This bill would prohibit the management of a mobilehome park from requiring any mobilehome park occupant to use a specific broker, dealer, or other agent in the purchase or installation of a replacement mobilehome. | PASSED 08/06/09 |
AB 891
WHAT IDIOT CARRIED THIS BILL?
I WAS RAISED IN A GANG AREA OF SOUTH CENTRAL LOS ANGELES. IF YOU ERASE THE GANG ICON OR MARKING IT IS CONSIDERED AND INSULT. THIS WILL BRING RETROBUTION IN MANY CASES FROM THE GANG. THEY SHOOT PEOPLE!
THEN YOU ARE THE VICTIME OF A CRIME FROM THE VANDALS AND AGAIN FROM THE STATE!! DOES ANYBODY HAVE A “BRAIN” IN THE LEGISLATURE??
tank you very helpful
Thank you. Sincerely, Saundra Allman