fight foreclosure pertinenent - the california codes (secured)

8/9/2019 FIGHT FORECLOSURE Pertinenent - the California Codes (Secured)

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403

PERTINENT EXCERPTS FROM THE

BUSINESS AND PROFESSIONS CODE

Reporting to Franchise Tax Board Federal

Employer I.D. Number and Social Security

Number

30. (a) Notwithstanding any other provision oflaw, any board, as defined in Section 22, and theState Bar and the Department of Real Estateshall at the time of issuance of the licenserequire that the licensee provide its federalemployer identification number, if the licensee isa partnership, or his or her social securitynumber for all others.

(b) Any licensee failing to provide the federalidentification number or social security number

shall be reported by the licensing board to theFranchise Tax Board and, if failing to provideafter notification pursuant to paragraph (1) ofsubdivision (b) of Section 19528 of the Revenueand Taxation Code, shall be subject to thepenalty provided in paragraph (2) of subdivision(b) of Section 19528 of the Revenue andTaxation Code.

(c) In addition to the penalty specified insubdivision (b), a licensing board may not

process any application for an original licenseunless the applicant or licensee provides itsfederal employer identification number or socialsecurity number where requested on theapplication.

(d) A licensing board shall, upon request of theFranchise Tax Board, furnish to the FranchiseTax Board the following information withrespect to every licensee:

(1) Name.

(2) Address or addresses of record.

(3) Federal employer identification numberif the entity is a partnership or socialsecurity number for all others.

(4) Type of license.

(5) Effective date of license or a renewal.

(6) Expiration date of license.

(7) Whether license is active or inactive, if

known.

(8) Whether license is new or a renewal.

(e) For the purposes of this section:

(1) "Licensee" means any entity, other thana corporation, authorized by a license,certificate, registration, or other means toengage in a business or profession regulatedby this code or referred to in Section 1000 or3600.

(2) "License" includes a certificate,registration, or any other authorizationneeded to engage in a business or professionregulated by this code or referred to in

Section 1000 or 3600.(3) "Licensing board" means any board, asdefined in Section 22, the State Bar, and theDepartment of Real Estate.

(f) The reports required under this section shallbe filed on magnetic media or in other machine-readable form, according to standards furnishedby the Franchise Tax Board.

(g) Licensing boards shall provide to theFranchise Tax Board the information requiredby this section at a time that the Franchise TaxBoard may require.

(h) Notwithstanding Chapter 3.5 (commencingwith Section 6250) of Division 7 of Title 1 ofthe Government Code, the social securitynumber and federal employer identificationnumber furnished pursuant to this section shallnot be deemed to be a public record and shallnot be open to the public for inspection.

(i) Any deputy, agent, clerk, officer, oremployee of any licensing board described insubdivision (a), or any former officer oremployee or other individual who in the courseof his or her employment or duty has or has hadaccess to the information required to befurnished under this section, may not disclose ormake known in any manner that information,except as provided in this section to theFranchise Tax Board or as provided insubdivision (k).


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EXCERPTS FROM THEBUSINESS ANDPROFESSIONSCODE404

(j) It is the intent of the Legislature in enactingthis section to utilize the social security accountnumber or federal employer identificationnumber for the purpose of establishing theidentification of persons affected by state taxlaws and for purposes of compliance with

Section 17520 of the Family Code and, to thatend, the information furnished pursuant to thissection shall be used exclusively for thosepurposes.

(k) If the board utilizes a national examination toissue a license, and if a reciprocity agreement orcomity exists between the State of Californiaand the state requesting release of the socialsecurity number, any deputy, agent, clerk,officer, or employee of any licensing board

described in subdivision (a) may release a socialsecurity number to an examination or licensingentity, only for the purpose of verification oflicensure or examination status.

(l) For the purposes of enforcement of Section17520 of the Family Code, and notwithstandingany other provision of law, any board, as definedin Section 22, and the State Bar and theDepartment of Real Estate shall at the time ofissuance of the license require that each licenseeprovide the social security number of eachindividual listed on the license and any personwho qualifies the license. For the purposes ofthis subdivision, "licensee" means any entity thatis issued a license by any board, as defined inSection 22, the State Bar, the Department ofReal Estate, and the Department of MotorVehicles.

Licensees Not in Compliance with a Judgment

or Order for Support

31. (a) As used in this section, board means

any entity listed in Section 101, the entitiesreferred to in Sections 1000 and 3600, the StateBar, the Department of Real Estate, and anyother state agency that issues a license,certificate, or registration authorizing a person toengage in a business or profession.

(b) Each applicant for the issuance or renewal ofa license, certificate, registration, or other meansto engage in a business or profession regulatedby a board who is not in compliance with a

judgment or order for support shall be subject to

Section 11350.6 of the Welfare and InstitutionsCode.

(c) Compliance with a judgment or order forsupport, has the meaning given in paragraph (4)of subdivision (a) of Section 11350.6 of theWelfare and Institutions Code.

License Offenses

119.Anyperson who does any of the followingis guilty of a misdemeanor:

(a) Displays or causes or permits to be displayedor has in his or her possession either of thefollowing:

(1) A canceled, revoked, suspended, orfraudulently altered license.

(2) A fictitious license or any documentsimulating a license or purporting to be orhave been issued as a license.

(b) Lends his or her license to any other personor knowingly permits the use thereof by another.

(c) Displays or represents any license not issuedto him or her as being his or her license.

(d) Fails or refuses to surrender to the issuingauthority upon its lawful written demand anylicense, registration, permit, or certificate whichhas been suspended, revoked, or canceled.

(e) Knowingly permits any unlawful use of alicense issued to him or her.

(f) Photographs, photostats, duplicates,manufactures, or in any way reproduces anylicense or facsimile thereof in a manner that itcould be mistaken for a valid license, or displaysor has in his or her possession any suchphotograph, photostat, duplicate, reproduction,

or facsimile unless authorized by this code.(g) Buys or receives a fraudulent, forged, orcounterfeited license knowing that it isfraudulent, forged, or counterfeited. Forpurposes of this subdivision, "fraudulent" meanscontaining any misrepresentation of fact. Asused in this section, "license" includes"certificate," "permit," "authority," and"registration" or any other indicia givingauthorization to engage in a business or


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EXCERPTS FROM THEBUSINESS ANDPROFESSIONSCODE 405

profession regulated by this code or referred toin Section 1000 or 3600.

Subversion of Exam Definition Penalty

123. It is a misdemeanor for any person toengage in any conduct which subverts orattempts to subvert any licensing examination orthe administration of an examination, including,but not limited to:

(a) Conduct which violates the security of theexamination materials; removing from theexamination room any examination materialswithout authorization; the unauthorizedreproduction by any means of any portion of theactual licensing examination; aiding by anymeans the unauthorized reproduction of anyportion of the actual licensing examination;

paying or using professional or paidexamination-takers for the purpose ofreconstructing any portion of the licensingexamination; obtaining examination questions orother examination material, except by specificauthorization either before, during, or after anyexamination; or using or purporting to use anyexamination questions or materials which wereimproperly removed or taken from anyexamination for the purpose of instruction orpreparing any applicant for examination; orselling, distributing, buying, receiving, or havingunauthorized possession of any portion of afuture, current, or previously administeredlicensing examination.

(b) Communication with any other examineeduring the administration of a licensingexamination; copying answers from anotherexaminee or permitting ones answers to becopied by another examinee; having in onespossession during the administration of the

licensing examination any books, equipment,notes, written or printed materials, or data of anykind, other than the examination materialsdistributed, or otherwise authorized to be inones possession during the examination; orimpersonating any examinee or having animpersonator take the licensing examination onones behalf.

Nothing in this section shall precludeprosecution under the authority provided for in

any other provision of law.

In addition to any other penalties, a person foundguilty of violating this section, shall be liable forthe actual damages sustained by the agencyadministering the examination not to exceed tenthousand dollars ($10,000) and the costs oflitigation.

(c) If any provision of this section or theapplication thereof to any persons orcircumstances is held invalid, that invalidityshall not affect other provisions or applicationsof the section that can be given effect withoutthe invalid provision or application, and to thisend the provisions of this section are severable.

Violation of Section 123 Injunction

123.5.Whenever any person has engaged, or isabout to engage, in any acts or practices which

constitute, or will constitute, a violation ofSection 123, the superior court in and for thecounty wherein the acts or practices take place,or are about to take place, may issue aninjunction, or other appropriate order, restrainingsuch conduct on application of a board, theAttorney General or the district attorney of thecounty.

The proceedings under this section shall begoverned by Chapter 3 (commencing with

Section 525) of Title 7 of Part 2 of the Code ofCivil Procedure.

The remedy provided for by this section shall bein addition to, and not a limitation on, theauthority provided for in any other provision oflaw.

Disciplinary Provisions for Discriminatory Acts

125.6.(a) (1) With regard to an applicant,every person who holds a license under theprovisions of this code is subject todisciplinary action under the disciplinaryprovisions of this code applicable to thatperson if, because of any characteristic listedor defined in subdivision (b) or (e) ofSection 51 of the Civil Code, he or sherefuses to perform the licensed activity oraids or incites the refusal to perform thatlicensed activity by another licensee, or if,because of any characteristic listed ordefined in subdivision (b) or (e) of Section

51 of the Civil Code, he or she makes any


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discrimination, or restriction in theperformance of the licensed activity.

(2) Nothing in this section shall beinterpreted to prevent a physician or healthcare professional licensed pursuant toDivision 2 (commencing with Section 500)

from considering any of the characteristicsof a patient listed in subdivision (b) or (e) ofSection 51 of the Civil Code if thatconsideration is medically necessary and forthe sole purpose of determining theappropriate diagnosis or treatment of thepatient.

(3) Nothing in this section shall beinterpreted to apply to discrimination byemployers with regard to employees or

prospective employees, nor shall this sectionauthorize action against any club licenseissued pursuant to Article 4 (commencingwith Section 23425) of Chapter 3 ofDivision 9 because of discriminatorymembership policy.

(4) The presence of architectural barriers toan individual with physical disabilities thatconform to applicable state or local buildingcodes and regulations shall not constitute

discrimination under this section.(b) (1) Nothing in this section requires a person

licensed pursuant to Division 2(commencing with Section 500) to permit anindividual to participate in, or benefit from,the licensed activity of the licensee wherethat individual poses a direct threat to thehealth or safety of others. For this purpose,the term "direct threat" means a significantrisk to the health or safety of others that

cannot be eliminated by a modification ofpolicies, practices, or procedures or by theprovision of auxiliary aids and services.

(2) Nothing in this section requires a personlicensed pursuant to Division 2(commencing with Section 500) to performa licensed activity for which he or she is notqualified to perform.

(c) (1) "Applicant," as used in this section,means a person applying for licensed

services provided by a person licensed underthis code.

(2) "License," as used in this section,includes "certificate," "permit," "authority,"and "registration" or any other indicia givingauthorization to engage in a business or

profession regulated by this code.

Grounds for Denial of a License

475.(a) Notwithstanding any other provisions ofthis code, the provisions of this division shallgovern the denial of licenses on the grounds of:

(1) Knowingly making a false statement ofmaterial fact, or knowingly omitting to statea material fact, in an application for alicense.

(2) Conviction of a crime.

(3) Commission of any act involvingdishonesty, fraud or deceit with the intent tosubstantially benefit himself or another, orsubstantially injure another.

(4) Commission of any act which, if done bya licentiate of the business or profession inquestion, would be grounds for suspensionor revocation of license.

(b) Notwithstanding any other provisions of thiscode, the provisions of this division shall governthe suspension and revocation of licenses ongrounds specified in paragraphs (1) and (2) ofsubdivision (a).

(c) A license shall not be denied, suspended, orrevoked on the grounds of a lack of good moralcharacter or any similar ground relating to anapplicants character, reputation, personality, orhabits.

Inapplicability of Division to Attorneys andPersons Subject to Alcoholic Beverage Control

Act

476.Nothing in this division shall apply to thelicensure or registration of persons pursuant toChapter 4 (commencing with Section 6000) ofDivision 3, or pursuant to Division 9(commencing with Section 23000) or pursuantto Chapter 5 (commencing with Section 19800)of Division 8.


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Board and License Defined

477.As used in this division:

(a) Board includes bureau, commission,committee, department, division,examining committee, program, andagency.

(b) License includes certificate, registration orother means to engage in a business orprofession regulated by this code.

Application; Material Definitions

478. (a) As used in this division, applicationincludes the original documents or writings filedand any other supporting documents or writingsincluding supporting documents provided orfiled contemporaneously, or later, in support of

the application whether provided or filed by theapplicant or by any other person in support ofthe application.

(b) As used in this division, material includesa statement or omission substantially related tothe qualifications, functions, or duties of thebusiness or profession.

Denial of License by Board

480. (a) A board may deny a license regulatedby this code on the grounds that the applicant

has one of the following:

(1) Been convicted of a crime. A convictionwithin the meaning of this section means aplea or verdict of guilty or a convictionfollowing a plea of nolo contendere. Anyaction that a board is permitted to takefollowing the establishment of a convictionmay be taken when the time for appeal haselapsed, or the judgment of conviction hasbeen affirmed on appeal, or when an order

granting probation is made suspending theimposition of sentence, irrespective of asubsequent order under the provisions ofSection 1203.4 of the Penal Code.

(2) Done any act involving dishonesty,fraud, or deceit with the intent tosubstantially benefit himself or herself oranother, or substantially injure another.

(3) (A) Done any act that if done by alicentiate of the business or profession in

question, would be grounds for suspensionor revocation of license.

(B) The board may deny a licensepursuant to this subdivision only if thecrime or act is substantially related tothe qualifications, functions, or duties of

the business or profession for whichapplication is made.

(b) Notwithstanding any other provision of thiscode, no person shall be denied a license solelyon the basis that he or she has been convicted ofa felony if he or she has obtained a certificate ofrehabilitation under Chapter 3.5 (commencingwith Section 4852.01) of Title 6 of Part 3 of thePenal Code or that he or she has been convictedof a misdemeanor if he or she has met all

applicable requirements of the criteria ofrehabilitation developed by the board to evaluatethe rehabilitation of a person when consideringthe denial of a license under subdivision (a) ofSection 482.

(c) A board may deny a license regulated by thiscode on the ground that the applicant knowinglymade a false statement of fact required to berevealed in the application for the license.

Criteria Development

481. Each board under the provisions of thiscode shall develop criteria to aid it, whenconsidering the denial, suspension or revocationof a license, to determine whether a crime or actis substantially related to the qualifications,functions, or duties of the business or professionit regulates.

Rehabilitation Criteria

482. Each board under the provisions of thiscode shall develop criteria to evaluate therehabilitation of a person when:

(a) Considering the denial of a license by theboard under Section 480; or

(b) Considering suspension or revocation of alicense under Section 490.

Each board shall take into account all competentevidence of rehabilitation furnished by theapplicant or licensee.


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Attestation by Other Persons to Good Moral

Character Not Required for Application for

License

484.No person applying for licensure under thiscode shall be required to submit to any licensingboard any attestation by other persons to his

good moral character.Procedure by Board Upon Denial of

Application for License

485. Upon denial of an application for a licenseunder this chapter or Section 496, the board shalldo either of the following:

(a) File and serve a statement of issues inaccordance with Chapter 5 (commencing withSection 11500) of Part 1 of Division 3 of Title 2of the Government Code.

(b) Notify the applicant that the application isdenied, stating (1) the reason for the denial, and(2) that the applicant has the right to a hearingunder Chapter 5 (commencing with Section11500) of Part 1 of Division 3 of Title 2 of theGovernment Code if written request for hearingis made within 60 days after service of the noticeof denial. Unless written request for hearing ismade within the 60-day period, the applicantsright to a hearing is deemed waived.

Service of the notice of denial may be made inthe manner authorized for service of summons incivil actions, or by registered mail addressed tothe applicant at the latest address filed by theapplicant in writing with the board in his or herapplication or otherwise. Service by mail iscomplete on the date of mailing.

Reapplication Informing Applicant of

Requirements

486.Where the board has denied an applicationfor a license under this chapter or Section 496, itshall, in its decision, or in its notice undersubdivision (b) of Section 485, inform theapplicant of the following:

(a) The earliest date on which the applicant mayreapply for a license which shall be one yearfrom the effective date of the decision, or serviceof the notice under subdivision (b) of Section485, unless the board prescribes an earlier dateor a later date is prescribed by another statute.

(b) That all competent evidence of rehabilitationpresented will be considered upon areapplication.

Along with the decision, or the notice undersubdivision (b) of Section 485, the board shallserve a copy of the criteria relating to

rehabilitation formulated under Section 482.

Hearing

487. If a hearing is requested by the applicant,the board shall conduct such hearing within 90days from the date the hearing is requestedunless the applicant shall request or agree inwriting to a postponement or continuance of thehearing. Notwithstanding the above, the Officeof Administrative Hearings may order, or on ashowing of good cause, grant a request for, up to

45 additional days within which to conduct ahearing, except in cases involving allegedexamination or licensing fraud, in which casesthe period may be up to 180 days. In no caseshall more than two such orders be made orrequests be granted.

Available Actions After Hearing

488. Except as otherwise provided by law,following a hearing requested by an applicantpursuant to subdivision (b) of Section 485, the

board may take any of the following actions:

(a) Grant the license effective upon completionof all licensing requirements by the applicant.

(b) Grant the license effective upon completionof all licensing requirements by the applicant,immediately revoke the license, stay therevocation, and impose probationary conditionson the license, which may include suspension.

(c) Deny the license.

(d) Take other action in relation to denying orgranting the license as the board in its discretionmay deem proper.

Denial for Same Reason Within One Year

489. Any agency in the department which isauthorized by law to deny an application for alicense upon the grounds specified in Section480 or 496, may without a hearing deny anapplication upon any of those grounds, if withinone year previously, and after proceedings

conducted in accordance with Chapter 5


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(commencing with Section 11500) of Part 1 ofDivision 3 of Title 2 of the Government Code,that agency has denied an application from thesame applicant upon the same ground.

Conviction of Crime Relationship of Crime to

Licensed Activity

490. (a) In addition to any other action that aboard is permitted to take against a licensee, aboard may suspend or revoke a license on theground that the licensee has been convicted of acrime, if the crime is substantially related to thequalifications, functions, or duties of thebusiness or profession for which the license wasissued.

(b) Notwithstanding any other provision of law,a board may exercise any authority to discipline

a licensee for conviction of a crime that isindependent of the authority granted undersubdivision (a) only if the crime is substantiallyrelated to the qualifications, functions, or dutiesof the business or profession for which thelicensee's license was issued.

(c) A conviction within the meaning of thissection means a plea or verdict of guilty or aconviction following a plea of nolo contendere.Any action that a board is permitted to take

following the establishment of a conviction maybe taken when the time for appeal has elapsed,or the judgment of conviction has been affirmedon appeal, or when an order granting probationis made suspending the imposition of sentence,irrespective of a subsequent order under theprovisions of Section 1203.4 of the Penal Code.

(d) The Legislature hereby finds and declaresthat the application of this section has beenmade unclear by the holding in Petropoulos v.

Department of Real Estate (2006) 142Cal.App.4th 554, and that the holding in thatcase has placed a significant number of statutesand regulations in question, resulting in potentialharm to the consumers of California fromlicensees who have been convicted of crimes.Therefore, the Legislature finds and declares thatthis section establishes an independent basis fora board to impose discipline upon a licensee, andthat the amendments to this section made bySenate Bill 797 of the 2007-08 Regular Session

do not constitute a change to, but rather aredeclaratory of, existing law.

License Suspension for Failure to Pay Child

Support

490.5.A board may suspend a license pursuantto Section 11350.6 of the Welfare andInstitutions Code if a licensee is not incompliance with a child support order orjudgment.

Information to Ex-Licensee

491.Upon suspension or revocation of a licenseby a board on one or more of the groundsspecified in Section 490, the board shall:

(a) Send a copy of the provisions of Section11522 of the Government Code to the ex-

licensee.(b) Send a copy of the criteria relating torehabilitation formulated under Section 482 tothe ex-licensee.

Substantially Related Crime Inquiry Beyond

Fact of Conviction

493. Notwithstanding any other provision oflaw, in a proceeding conducted by a boardwithin the department pursuant to law to deny anapplication for a license or to suspend or revoke

a license or otherwise take disciplinary actionagainst a person who holds a license, upon theground that the applicant or the licensee hasbeen convicted of a crime substantially related tothe qualifications, functions, and duties of thelicensee in question, the record of conviction ofthe crime shall be conclusive evidence of thefact that the conviction occurred, but only of thatfact, and the board may inquire into thecircumstances surrounding the commission ofthe crime in order to fix the degree of disciplineor to determine if the conviction is substantiallyrelated to the qualifications, functions, andduties of the licensee in question.

As used in this section, license includescertificate, permit, authority, andregistration.

Public Reprovals

495. Notwithstanding any other provision oflaw, any entity authorized to issue a license or

certificate pursuant to this code may publicly


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reprove a licentiate or certificate holder thereof,for any act that would constitute grounds tosuspend or revoke a license or certificate. Anyproceedings for public reproval, public reprovaland suspension, or public reproval andrevocation shall be conducted in accordance

with Chapter 5 (commencing with Section11500) of Part 1 of Division 3 of Title 2 of theGovernment Code, or, in the case of a licenseeor certificate holder under the jurisdiction of theState Department of Health Services, inaccordance with Section 100171 of the Healthand Safety Code.

Examination Security Penalty for Violating

496. A board may deny, suspend, revoke, orotherwise restrict a license on the ground that an

applicant or licensee has violated Section 123pertaining to subversion of licensingexaminations.

License Secured by Fraud, Deceit or Knowing

Misrepresentation

498.A board may revoke, suspend, or otherwiserestrict a license on the ground that the licenseesecured the license by fraud, deceit, or knowingmisrepresentation of a material fact or byknowingly omitting to state a material fact.

False Statement in Support of AnotherPersons Application

499.A board may revoke, suspend, or otherwiserestrict a license on the ground that the licensee,in support of another persons application forlicense, knowingly made a false statement of amaterial fact or knowingly omitted to state amaterial fact to the board regarding theapplication.

Illegal Practice of Law Punishable

6125.No person shall practice law in this Stateunless he is an active member of the State Bar.

[Note: The term to practice law andequivalent expressions are not confined toappearances in court. They include legal adviceand counsel and the preparation of legalinstruments by which such legal rights aresecured. It has been held that the selection andpreparation of a note, mortgage and deed oftrust by a broker in an independent loan

transaction, in which a fee was charged, was the

unlawful practice of law, even though only onetransaction was involved. People v. Sipper,(1943) 61 C.A. 2d, Supp. 844.]

6126. (a) Any person advertising or holdinghimself or herself out as practicing or entitled topractice law or otherwise practicing law who is

not an active member of the State Bar, orotherwise authorized pursuant to statute or courtrule to practice law in this state at the time ofdoing so, is guilty of a misdemeanor punishableby up to one year in a county jail or by a fine ofup to one thousand dollars ($1,000), or by boththat fine and imprisonment. Upon a second orsubsequent conviction, the person shall beconfined in a county jail for not less than 90days, except in an unusual case where the

interests of justice would be served byimposition of a lesser sentence or a fine. If thecourt imposes only a fine or a sentence of lessthan 90 days for a second or subsequentconviction under this subdivision, the court shallstate the reasons for its sentencing choice on therecord.

(b) Any person who has been involuntarilyenrolled as an inactive member of the State Bar,or has been suspended from membership fromthe State Bar, or has been disbarred, or hasresigned from the State Bar with chargespending, and thereafter practices or attempts topractice law, advertises or holds himself orherself out as practicing or otherwise entitled topractice law, is guilty of a crime punishable byimprisonment in the state prison or a county jail.However, any person who has been involuntarilyenrolled as an inactive member of the State Barpursuant to paragraph (1) of subdivision (e) ofSection 6007 and who knowingly thereafter

practices or attempts to practice law, oradvertises or holds himself or herself out aspracticing or otherwise entitled to practice law,is guilty of a crime punishable by imprisonmentin the state prison or a county jail.

(c) The willful failure of a member of the StateBar, or one who has resigned or been disbarred,to comply with an order of the Supreme Court tocomply with Rule 9.20 of the California Rules ofCourt, constitutes a crime punishable by

imprisonment in the state prison or a county jail.


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(d) The penalties provided in this section arecumulative to each other and to any otherremedies or penalties provided by law.

6126.5. (a) In addition to any remedies andpenalties available in any enforcement actionbrought in the name of the people of the State of

California by the Attorney General, a districtattorney, or a city attorney, acting as a publicprosecutor, the court shall award relief in theenforcement action for any person who obtainedservices offered or provided in violation ofSection 6125 or 6126 or who purchased anygoods, services, or real or personal property inconnection with services offered or provided inviolation of Section 6125 or 6126 against theperson who violated Section 6125 or 6126, or

who sold goods, services, or property inconnection with that violation. The court shallconsider the following relief:

(1) Actual damages.

(2) Restitution of all amounts paid.

(3) The amount of penalties and taxliabilities incurred in connection with thesale or transfer of assets to pay for anygoods, services, or property.

(4) Reasonable attorney's fees and costsexpended to rectify errors made in theunlawful practice of law.

(5) Prejudgment interest at the legal ratefrom the date of loss to the date of judgment.

(6) Appropriate equitable relief, includingthe rescission of sales made in connectionwith a violation of law.

(b) The relief awarded under paragraphs (1) to

(6), inclusive, of subdivision (a) shall bedistributed to, or on behalf of, the person forwhom it was awarded or, if it is impracticable todo so, shall be distributed as may be directed bythe court pursuant to its equitable powers.

(c) The court shall also award the AttorneyGeneral, district attorney, or city attorneyreasonable attorney's fees and costs and, in thecourt's discretion, exemplary damages asprovided in Section 3294 of the Civil Code.

(d) This section shall not be construed to create,abrogate, or otherwise affect claims, rights, orremedies, if any, that may be held by a person orentity other than those law enforcement agenciesdescribed in subdivision (a). The remediesprovided in this section are cumulative to each

other and to the remedies and penalties providedunder other laws.

Certification of Absence or Presence of Wood-

Destroying Pests or Organisms

8519. Certification as used in this section meansa written statement by the registered companyattesting to the statement contained thereinrelating to the absence or presence of wood-destroying pests or organisms and, listing suchrecommendations, if any, which appear on an

inspection report prepared pursuant to Section8516, and which relate to (1) infestation orinfection of wood-destroying pests or organismsfound, or (2) repair of structurally weakenedmembers caused by such infestation or infection,and which recommendations have not beencompleted at the time of certification.

Any registered company which makes aninspection report pursuant to Section 8516, shall,if requested by the person ordering theinspection report, prepare and deliver to thatperson or his or her designated agent, acertification, to provide:

(a) When the inspection report preparedpursuant to Section 8516 has disclosed noinfestation or infection: This is to certify thatthe above property was inspected on _________(date) in accordance with the Structural PestControl Act and rules and regulations adoptedpursuant thereto, and that no evidence of activeinfestation or infection was found in the visible

and accessible areas.

(b) When the inspection report preparedpursuant to Section 8516 discloses infestation orinfection and the notice of work completedprepared pursuant to Section 8518 indicates thatall recommendations to remove that infestationor infection and to repair damage caused by thatinfestation or infection have been completed:This is to certify that the property describedherein is now free of evidence of active


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infestation or infection in the visible andaccessible areas.

(c) When the inspection report preparedpursuant to Section 8516 discloses infestation orinfection and the notice of work completedprepared pursuant to Section 8518 indicates that

the registered company has not completed allrecommendations to remove that infestation orinfection or to repair damage caused by it: Thisis to certify that the property described herein isnow free of evidence of active infestation orinfection in the visible and accessible areasexcept as follows: ____ (describing infestations,infections, damage or evidence thereof,excepted).

This certificate shall be accompanied by a copy

of the inspection report prepared pursuant toSection 8516, and by a copy of the notice ofwork completed prepared pursuant to Section8518, if any notice has been prepared at the timeof the certification, or the certification may beendorsed on and made a part of that inspectionreport or notice of work completed.

Certification of Inspection

8519.5. (a) After an inspection report has beenprepared by a Branch 3 registered company

pursuant to Section 8516, which discloses awood destroying pest that can be eradicated byfumigation, and the fumigation has been dulyperformed by a Branch 1 registered company,the Branch 1 registered company, on a companydocument that identifies the licensee performingthe fumigation and the name and address of theregistered company, shall issue the followingcertification: "This is to certify that the propertylocated at ___________ (address) was fumigatedon ____ (date) for the extermination of _______

(target pest)." This certification shall be issuedto the person ordering the fumigation and to theregistered company that prepared the inspectionreport within five working days after completingthe fumigation.

(1) Where a consumer has authorized aBranch 3 registered company to subcontractthe fumigation to a Branch 1 registeredcompany, a copy of the certification shallaccompany any reinspection report, notice

of work completed pursuant to Section

8518, or any certification issued by theBranch 3 company.

(2) Where the consumer has elected tocontract directly with a Branch 1 registeredcompany to perform a fumigation, thedistribution of any documents pertinent to

the fumigation shall be the responsibility ofthe Branch 1 registered company.

(b) In the event of a failed fumigation performedby a Branch 1 registered company that hascontracted directly with the consumer, theBranch 1 registered company shall do all of thefollowing:

(1) Verify the need for a refumigation.

(2) Maintain with the original inspection

report, on a company document, all of thefollowing:

(A) The name of the current owner ofthe structure fumigated, the address ofthe structure, and the date of the failedfumigation.

(B) An explanation of the need forrefumigation.

(C) The proposed date for the

refumigation.(3) Within five working days after thecompletion of the refumigation, the Branch1 registered company, on a companydocument, shall file with the current owner,and the Branch 3 registered company whosereport was used for the original fumigation,information regarding the completion of therefumigation, a new certification, and anywarranty or guarantee.

PART 3.

LICENSING AND CERTIFICATION OF REAL

ESTATE APPRAISERS

Title

11300. This part may be cited as the Real EstateAppraisers Licensing and Certification Law.

Office of Real Estate Appraisers

11301. There is hereby created within theBusiness, Transportation and Housing Agency


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an Office of Real Estate Appraisers toadminister and enforce this part.

CHAPTER 1. DEFINITIONS

11302.For the purpose of applying this part, thefollowing terms, unless otherwise expresslyindicated, shall mean and have the followingdefinitions:

(a) "Agency" means the Business,Transportation and Housing Agency.

(b) "Appraisal" means a written statementindependently and impartially prepared by aqualified appraiser setting forth an opinion in afederally related transaction as to the marketvalue of an adequately described property as of a

specific date, supported by the presentation andanalysis of relevant market information.

The term "appraisal" does not include an opiniongiven by a real estate licensee or engineer orland surveyor in the ordinary course of his or herbusiness in connection with a function for whicha license is required under Chapter 7(commencing with Section 6700) or Chapter 15(commencing with Section 8700) of Division 3,or Chapter 3 (commencing with Section 10130)or Chapter 7 (commencing with Section 10500)and the opinion shall not be referred to as anappraisal. This part does not apply to a probatereferee acting pursuant to Sections 400 to 408,inclusive, of the Probate Code unless theappraised transaction is federally related.

(c) "Appraisal Foundation" means the AppraisalFoundation that was incorporated as an Illinoisnot-for-profit corporation on November 30,1987.

(d) (1) "Appraisal management company"means any person or entity that satisfies allof the following conditions:

(A) Maintains an approved list or lists,containing 11 or more independentcontractor appraisers licensed orcertified pursuant to this part, oremploys 11 or more appraisers licensedor certified pursuant to this part.

(B) Receives requests for appraisals

from one or more clients.

(C) For a fee paid by one or more of itsclients, delegates appraisal assignmentsfor completion by its independentcontractor or employee appraisers.

(2) "Appraisal management company" doesnot include any of the following, when that

person or entity directly contracts with anindependent appraiser:

(A) Any bank, credit union, trustcompany, savings and loan association,or industrial loan company doingbusiness under the authority of, or inaccordance with, a license, certificate, orcharter issued by the United States orany state, district, territory, orcommonwealth of the United States that

is authorized to transact business in thisstate.

(B) Any finance lender or financebroker licensed pursuant to Division 9(commencing with Section 22000) ofthe Financial Code, when acting underthe authority of that license.

(C) Any residential mortgage lender orresidential mortgage servicer licensedpursuant to Division 20 (commencingwith Section 50000) of the FinancialCode, when acting under the authorityof that license.

(D) Any real estate broker licensedpursuant to Part 1 (commencing withSection 10000) of Division 4 of theBusiness and Professions Code, whenacting under the authority of thatlicense.

(3) "Appraisal management company" doesnot include any person licensed to practicelaw in this state who is working with or onbehalf of a client of that person inconnection with one or more appraisals forthat client.

(e) "Appraisal Subcommittee" means theAppraisal Subcommittee of the FederalFinancial Institutions Examination Council.

(f) "Controlling person" means one or more of

the following:


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(1) An officer or director of an appraisalmanagement company, or an individual whoholds a 10 percent or greater ownershipinterest in an appraisal managementcompany.

(2) An individual employed, appointed, or

authorized by an appraisal managementcompany that has the authority to enter intoa contractual relationship with clients for theperformance of appraisal services and thathas the authority to enter into agreementswith independent appraisers for thecompletion of appraisals.

(3) An individual who possesses the powerto direct or cause the direction of themanagement or policies of an appraisal

management company.

(g) "Director" means the Director of the Officeof Real Estate Appraisers.

(h) "Federal financial institutions regulatoryagency" means the Federal Reserve Board,Federal Deposit Insurance Corporation, Officeof the Comptroller of the Currency, Office ofThrift Supervision, Federal Home Loan BankSystem, National Credit Union Administration,and any other agency determined by the directorto have jurisdiction over transactions subject tothis part.

(i) "Federally related real estate appraisalactivity" means the act or process of making orperforming an appraisal on real estate or realproperty in a federally related transaction andpreparing an appraisal as a result of that activity.

(j) "Federally related transaction" means anyreal estate-related financial transaction which a

federal financial institutions regulatory agencyengages in, contracts for or regulates and whichrequires the services of a state licensed realestate appraiser regulated by this part. This termalso includes any transaction identified as suchby a federal financial institutions regulatoryagency.

(k) "License" means any license, certificate,permit, registration, or other means issued by theoffice authorizing the person to whom it is

issued to act pursuant to this part within thisstate.

(l) "Licensure" means the procedures andrequirements a person shall comply with in orderto qualify for issuance of a license and includesthe issuance of the license.

(m) "Office" means the Office of Real EstateAppraisers.

(n) "Registration" means the procedures andrequirements with which a person or entity shallcomply in order to qualify to conduct businessas an appraisal management company.

(o) "Secretary" means the Secretary of Business,Transportation and Housing.

(p) "State licensed real estate appraiser" is aperson who is issued and holds a current validlicense under this part.

(q) "Uniform Standards of ProfessionalAppraisal Practice" are the standards ofprofessional appraisal practice established by theAppraisal Foundation.

(r) "Course provider" means a person or entitythat provides educational courses related toprofessional appraisal practice.

CHAPTER 2. ADMINISTRATION

OREA Director and Deputy Directors

11310. The Governor shall appoint, subject toconfirmation by the Senate, the Director of theOffice of Real Estate Appraisers who shall, inconsultation with the Governor and secretary,administer the licensing and certificationprogram for real estate appraisers. In making theappointment, consideration shall be given to thequalifications of an individual that demonstrateknowledge of the real estate appraisalprofession.

(a) The director shall serve at the pleasure of theGovernor. The salary for the director shall befixed and determined by the secretary withapproval of the Department of PersonnelAdministration.

(b) The director shall not be actively engaged inthe appraisal business or any other affected

industry for the term of appointment, and


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thereafter the director shall be subject to Section87406 of the Government Code.

(c) The director, in consultation with thesecretary and in accordance with the State CivilService Act, may appoint and fix thecompensation of legal, clerical, technical,

investigation, and auditing personnel as may benecessary to carry out this part. All personnelshall perform their respective duties under thesupervision and direction of the director.

(d) The director may appoint not more than fourdeputy directors as he or she deems appropriate.The deputy directors shall perform theirrespective duties under the supervision anddirection of the director.

(e) Every power granted to or duty imposedupon the director under this part may beexercised or performed in the name of thedirector by the deputy directors, subject toconditions and limitations as the director mayprescribe.

OREA Supervision Enforcement

Regulations

11313. The office is under the supervision andcontrol of the secretary. The duty of enforcingand administering this part is vested in thedirector and he or she is responsible to thesecretary therefor. The director shall adopt andenforce rules and regulations as are determinedreasonably necessary to carry out the purposesof this part. Those rules and regulations shall beadopted pursuant to Chapter 3.5 (commencingwith Section 11340) of Part 1 of Division 3 ofTitle 2 of the Government Code.

OREA Regulations to Include Licensing and

Disciplinary Provisions

11314. The office is required to include in itsregulations requirements for licensure anddiscipline of real estate appraisers that ensureprotection of the public interest and comply inall respects with Title XI of the FinancialInstitutions Reform, Recovery and EnforcementAct of 1989, Public Law 101-73 and anysubsequent amendments thereto. Requirementsfor each level of licensure shall, at a minimum,meet the criteria established by the Appraiser

Qualification Board of the Appraisal

Foundation. The office may additionally includein its regulations requirements for theregistration of appraisal management companiesconsistent with this part.

OREA Directors Authority to Issue Citations

and Assess Fines

11315.(a) The director may issue to a licensee,applicant for licensure, person who acts in acapacity that requires a license under this part,course provider, applicant for course provideraccreditation, or a person who, or entity that,acts in a capacity that requires course provideraccreditation a citation that may contain an orderto pay an administrative fine assessed by theoffice if the person or entity is in violation ofthis part or any regulations adopted to carry out

its purposes.(b) A citation shall be written and describe withparticularity the nature of the violation,including a specific reference to the provision oflaw determined to have been violated.

(c) If appropriate, the citation may contain anorder of abatement fixing a reasonable time forabatement of the violation.

(d) (1) If appropriate, the citation may containan order to enroll in and successfullycomplete additional basic or continuingeducation courses.

(2) When a citation imposes an educationcourse or courses, the completion of thecourse or courses by the licensee shall besubject to the following conditions:

(A) The citation imposing the educationrequirement may specify the specificcourse content, the number of hours to

be completed, the date by which thecourse is to be completed, and themethod by which satisfaction of theorder is to be reported to the office.

(B) An education course imposed bycitation may not be credited towards thelicensees continuing educationrequirements pursuant to Section 11360.

(C) Only courses accredited by theoffice shall be accepted for purposes of

fulfilling education imposed by citation.


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(D) Any failure to satisfactorilycomplete or timely report an educationcourse to the office by the date specifiedin the citation shall result in theautomatic suspension of the licenseesreal estate appraiser license as of that

date.(E) Reinstatement of a licensesuspended pursuant to subparagraph (D)shall be made only if all of the followingevents occur:

(i) Satisfactory verification of thecompletion of the education courseor courses imposed by the citation.

(ii) Completion and filing of a

reinstatement application.(iii) Payment of all applicable fees,fines, or penalties.

(e) In no event shall an administrative fineassessed by the office by citation or orderexceed ten thousand dollars ($10,000) perviolation. In assessing a fine, the office shallgive due consideration to the appropriateness ofthe amount of the fine with respect to factorssuch as the gravity of the violation, the good

faith of the person who committed the violation,and the history of previous violations.

(f) A citation or fine assessment issued pursuantto a citation shall inform the person cited that, ifhe or she desires a hearing to contest the findingof a violation, he or she must request a hearingby written notice to the office within 30 days ofthe date of issuance of the citation orassessment. Hearings shall be held pursuant toChapter 5 (commencing with Section 11500) of

Part 1 of Division 3 of Title 2 of theGovernment Code. The citation or fineassessment shall also inform the person citedthat failure to respond to the citation or fineassessment shall result in any order oradministrative fine imposed becoming final, andthat any order or administrative fine shallconstitute an enforceable civil judgment inaddition to any other penalty or remedyavailable pursuant to law.

(g) (1) If a licensee, applicant for licensure,person who acts in a capacity that requires alicense under this part, course provider,applicant for course provider accreditation,or a person who, or entity that, acts in acapacity that requires course provider

accreditation fails to pay a fine, penalty, orrequired installment payment on the fine orpenalty by the date when it is due, thedirector shall charge him or her interest anda penalty of 10 percent of the fine orinstallment payment amount. Interest shallbe charged at the pooled money investmentrate.

(2) Failure of a licensee, applicant forlicensure, person who acts in a capacity that

requires a license under this part, courseprovider, applicant for course provideraccreditation, or a person who, or entity that,acts in a capacity that requires courseprovider accreditation to pay a fine orrequired installment payment on the finewithin 30 days of the date ordered in thecitation, unless the citation is beingappealed, shall be cause for additionaldisciplinary action by the office.

(3) If a citation is not contested and a fine orfine payment is not paid within 30 days ofthe date ordered in the citation or other orderof the director, the full amount of the unpaidbalance of the assessed fine shall be addedto any fee for renewal of a license. A licenseshall not be renewed prior to payment of therenewal fee and fine.

(4) The director may order the full amountof any fine to be immediately due andpayable if any payment due on a fine is not

received by the office within 30 days of itsdue date.

(5) Any fine, or interest thereon, not paidwithin 30 days of a final citation or ordershall constitute a valid and enforceable civiljudgment.

(6) A certified copy of the final order, or thecitation with certification by the office thatno request for hearing was received within30 days of the date of issuance of the


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citation, shall be conclusive proof of thecivil judgment, its terms, and its validity.

(h) A citation may be issued without theassessment of an administrative fine.

(i) Any administrative fine or penalty imposed

pursuant to this section shall be in addition toany other criminal or civil penalty provided forby law.

(j) Administrative fines collected pursuant tothis section shall be deposited in the Real EstateAppraisers Regulation Fund.

Citations and Fines

11315.1. (a) The director may issue to aregistrant or person who acts in a capacity thatrequires a certificate of registration under this

part, a citation that may contain an order to payan administrative fine assessed by the office, ifthe person is in violation of this part or anyregulations adopted to carry out its purposes.

(b) A citation shall be written and shall describewith particularity the nature of the violation,including a specific reference to the provision oflaw determined to have been violated.

(c) If appropriate, the citation may contain anorder of abatement fixing a reasonable time forabatement of the violation.

(d) In no event shall an administrative fineassessed by the office by citation or orderexceed ten thousand dollars ($10,000) perviolation. In assessing a fine, the office shallgive due consideration to the appropriateness ofthe amount of the fine with respect to factorssuch as the gravity of the violation, the goodfaith of the person that committed the violation,and the history of previous violations.

(e) A citation or fine assessment issued pursuantto a citation shall inform the person cited that, ifthe person desires a hearing to contest thefinding of a violation, he or she or one of itscontrolling persons must request a hearing bywritten notice to the office within 30 days of thedate of issuance of the citation or assessment.Hearings shall be held pursuant to Chapter 5(commencing with Section 11500) of Part 1 ofDivision 3 of Title 2 of the Government Code.

The citation or fine assessment shall also inform

the person cited that failure to respond to thecitation or fine assessment shall result in anyorder or administrative fine imposed becomingfinal, and that any order or administrative fineshall constitute an enforceable civil judgment inaddition to any other penalty or remedy

available pursuant to law.

(f) (1) If a registrant or person who acts in acapacity that requires a certificate ofregistration fails to pay a fine, penalty, orrequired installment payment on the fine orpenalty by the date when it is due, thedirector shall charge that person interest anda penalty of the fine or installment paymentamount. Interest shall be charged at thepooled money investment rate.

(2) Failure of a registrant or person whorequires a certificate of registration to pay afine or required installment payment on thefine within 30 days of the date ordered in thecitation, unless the citation is beingappealed, shall be cause for additionaldisciplinary action by the office.

(3) If a citation is not contested and a fine orfine payment is not paid within 30 days ofthe date ordered in the citation or other order

of the director, the full amount of the unpaidbalance of the assessed fine shall be addedto any fee for renewal of a certificate ofregistration. A certificate of registrationshall not be renewed prior to payment of therenewal fee and fine.

(4) The director may order the full amountof any fine to be immediately due andpayable if any payment due on a fine is notreceived by the office within 30 days of its

due date.

(5) Any fine, or interest thereon, not paidwithin 30 days of a final citation or ordershall constitute a valid and enforceable civiljudgment.

(6) A certified copy of the final order, or thecitation with certification by the office thatno request for hearing was received within30 days of the date of issuance of thecitation, shall be conclusive proof of the

civil judgment, its terms, and its validity.


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(g) A citation may be issued without theassessment of an administrative fine.

(h) Any administrative fine or penalty imposedpursuant to this section shall be in addition toany other criminal or civil penalty provided forby law.

(i) Administrative fines collected pursuant tothis section shall be deposited in the Real EstateAppraisers Regulation Fund.

OREA Settlement of Administrative Allegation

of Violation

11315.5.Notwithstanding any other provision oflaw, the office may, at any time the directordeems it to be in the public interest, enter into asettlement of any administrative allegation of

violation of this part, or of regulationspromulgated pursuant thereto, upon any termsand conditions as the director deems appropriate.Those settlements may include, but are notlimited to, a plan for abatement of the violationor rehabilitation or requalification of theapplicant, licensed appraiser, course provider,registrant, or person acting in a capacityrequiring a license, certificate of registration, orcourse provider accreditation within a specifiedtime.

OREA Director May Assess Fines

11316.(a) The director may assess a fine againsta licensee, applicant for licensure, person whoacts in a capacity that requires a license underthis part, course provider, applicant for courseprovider accreditation, or a person who, or entitythat, acts in a capacity that requires courseprovider accreditation for violation of this partor any regulations adopted to carry out itspurposes.

(b) (1) Failure of a licensee, applicant forlicensure, person who acts in a capacity thatrequires a license under this part, courseprovider, applicant for course provideraccreditation, or a person who, or entity that,acts in a capacity that requires courseprovider accreditation to pay a fine or makea fine payment within 30 days of the date ofassessment shall result in disciplinary actionby the office. If a licensee, applicant for

licensure, person who acts in a capacity that

requires a license under this part, courseprovider, applicant for course provideraccreditation, or a person who, or entity that,acts in a capacity that requires courseprovider accreditation fails to pay a finewithin 30 days, the director shall charge him

or her interest and a penalty of 10 percent ofthe fine or payment amount. Interest shall becharged at the pooled money investmentrate.

(2) If a fine is not paid, the full amount ofthe assessed fine shall be added to any feefor renewal of a license. A license shall notbe renewed prior to payment of the renewalfee and fine.

(3) The director may order the full amount

of any fine to be immediately due andpayable if any payment on the fine, orportion thereof, is not received within 30days of its due date.

(4) Any fine, or interest thereon, not paidwithin 30 days of a final order shallconstitute a valid and enforceable civiljudgment.

(5) A certified copy of the final order shallbe conclusive proof of the validity of theorder of payment and the terms of payment.

(c) Any administrative fine or penalty imposedpursuant to this section shall be in addition toany other criminal or civil penalty provided forby law.

(d) Administrative fines collected pursuant tothis section shall be deposited in the Real EstateAppraisers Regulation Fund.

OREA Publication of Public Disciplinary

Actions11317. The office shall publish a summary ofpublic disciplinary actions taken by the office,including resignations while under investigationand the violations upon which these actions arebased, which shall meet, at a minimum, therequirements of the appraisal subcommittee. Theoffice shall not publish identifying informationwith respect to private reprovals or letters ofwarning, which shall remain confidential.


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Criminal or Administrative Action Report to

OREA

11318. (a) A licensee, applicant for licensure,course provider, or applicant for course provideraccreditation shall report to the office, inwriting, the occurrence of any of the following

events within 30 days of the date he or she hasknowledge of any of these events:

(1) The conviction of the licensee, applicantfor licensure, course provider, or applicantfor course provider accreditation of any ofthe following:

(A) A felony.

(B) Any crime related to thequalifications, functions, or duties of a

licensee, or to acts or activitiescommitted in the course of thelicensees or course providers practice.

As used in this section, a conviction includesan initial plea, verdict, or finding of guilty,plea of no contest, or pronouncement ofsentence by a trial court even though thatconviction may not be final, the sentencemay not be imposed, or all appeals may notbe exhausted.

(2) The cancellation, revocation, orsuspension of a license, other authority topractice, or refusal to renew a license orother authority to practice as an occupationalor professional licensee or course provider,by any other regulatory entity.

(3) The cancellation, revocation, orsuspension of the right to practice beforeany governmental body or agency.

(b) The report required by subdivision (a) shall

be signed by the licensee, applicant forlicensure, course provider, or applicant forcourse provider accreditation and clearly setforth the facts that constitute the reportableevent. The report shall include the title of thematter, court or agency name, docket number,and dates of occurrence of the reportable event.

(c) The licensee, applicant for licensure, courseprovider, or applicant for course provideraccreditation shall also promptly obtain and

submit a certified copy of the police or

administrative agencys investigative report andcertified copies of the court or administrativeagencys docket, complaint or accusation, andjudgment or other order.

(d) A licensee, applicant for licensure, courseprovider, or applicant for course provider

accreditation shall promptly respond to oral orwritten inquiries from the office concerning thereportable events.

Standard of Conduct and Performance

11319. Notwithstanding any other provision ofthis code, the Uniform Standards of ProfessionalAppraisal Practice constitute the minimumstandard of conduct and performance for alicensee in any work or service performed that isaddressed by those standards. If a licensee also

is certified by the Board of Equalization, he orshe shall follow the standards established by theBoard of Equalization when fulfilling his or herresponsibilities for assessment purposes.

CHAPTER 3. SCOPE OF PRACTICE

License Requirement Violation Penalty

11320. No person shall engage in federallyrelated real estate appraisal activity governed bythis part or assume or use the title of or any title

designation or abbreviation as a licensedappraiser in this state without first obtaining alicense as defined in Section 11302. Any personwho willfully violates this provision is guilty ofa public offense punishable by imprisonment inthe state prison, or in a county jail for not morethan one year, or by a fine not exceeding tenthousand dollars ($10,000), or by both theimprisonment and fine. The possession of alicense issued pursuant to this part does notpreempt the application of other statutes

including the requirement for specializedtraining or licensure pursuant to Article 3(commencing with Section 750) of Chapter 2.5of Division 1 of the Public Resources Code.

AMC Registration

11320.5. No person or entity shall act in thecapacity of an appraisal management company


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without first obtaining a certificate ofregistration from the office.

License Requirement, continued

11321.(a) No person other than a state licensedreal estate appraiser may assume or use that titleor any title, designation, or abbreviation likely tocreate the impression of state licensure as a realestate appraiser in this state.

(b) No person other than a licensee may sign anappraisal. A trainee licensed pursuant to Section11327 may sign an appraisal if it is also signedby a licensee.

(c) No person other than a licensee holding acurrent valid license at the residential levelissued under this part to perform, make, or

approve and sign an appraisal may use theabbreviation SLREA in his or her real propertyappraisal business.

(d) No person other than a licensee holding acurrent valid license at a certified level issuedunder this part to perform, make, or approve andsign an appraisal may use the term statecertified real estate appraiser or theabbreviation SCREA in his or her real propertyappraisal business.

Sales Commission Cannot Affect AppraisalFee

11323.No licensee shall engage in any appraisalactivity in connection with the purchase, sale,transfer, financing, or development of realproperty if his or her compensation is dependenton or affected by the value conclusion generatedby the appraisal.

Assistance by Person Not Licensed

11324.An individual who is not a licensee may

assist in the preparation of an appraisal under thefollowing conditions:

(a) The assistance is under the direct supervisionof an individual who is a licensed appraiser andthe final conclusion as to value is made by alicensed appraiser.

(b) The final appraisal document is approvedand signed, with acceptance of fullresponsibility, by the supervising individual whois licensed by the state pursuant to this part,

identifies the assisting individual, and identifies

the scope of work performed by the individualwho assisted in preparation of the appraisal.

Regulations to Specify Types of Federally

Related Transactions

11325. (a) The director shall adopt regulationswhich determine the parameters of appraisalwork which may be performed by licensedappraisers.

(b) Regulations adopted by the director pursuantto this section shall, at a minimum, meet thestandards established by federal financialinstitution regulatory agencies as required bySection 1112 of Title XI of the FinancialInstitutions Reform, Recovery and EnforcementAct of 1989, Public Law 101-73.

Assessor to Provide Records for Investigation11326. (a) The county assessor shall, uponrequest, disclose information, furnish abstracts,copies of maps, construction permits, notices ofcompletion, sales confirmation, and permitaccess to all records in his or her office orbranch offices, to the Office of Real EstateAppraisers when it is conducting aninvestigation related to professional conduct ofappraisers.

(b) Whenever the assessor discloses information,furnishes abstracts, and all of the above andpermits access to records to the Office of RealEstate Appraisers, the office shall reimburse theassessor for any reasonable cost incurred as aresult thereof.

Trainee License

11327. The director shall adopt regulationsgoverning the process and procedure of applyingfor a trainee license, which shall meet, at aminimum, the requirements of the AppraisalFoundation.

Submission of Materials to Document

Experience or Facilitate Investigation

11328. To substantiate documentation ofappraisal experience, or to facilitate theinvestigation of illegal or unethical activities bya licensee, applicant, or other person acting in acapacity that requires a license, that licensee,applicant, or person shall, upon the request ofthe director, submit copies of appraisals, or any

work product which is addressed by the Uniform


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Standards of Professional Appraisal Practice,and all supporting documentation and data to theoffice. This material shall be confidential inaccordance with the confidentiality provisions ofthe Uniform Standards of Professional AppraisalPractice.

Production of Book Records and Materials

11328.1. If the director has a reasonable beliefthat a registrant, or person or entity acting in acapacity that requires a certificate of registration,has engaged in activities prohibited under thispart, he or she may submit a written request tothe registrant, person, or entity, requestingcopies of written material related to his or herinvestigation. Any registrant, person, or entityreceiving a written request from the director for

information related to an investigation ofprohibited activities shall submit thatinformation to the director or the office within areasonable period of time, which shall bespecified by the director in his or her writtenrequest. Any material submitted shall be keptconfidential by the director and the office.

CHAPTER 4. LICENSE APPLICATION

Regulations to Govern Applications for License

11340. The director shall adopt regulationsgoverning the process and the procedure ofapplying for a license which shall include, butnot be limited to, necessary experience oreducation, equivalency, and minimumrequirements of the Appraisal Foundation, ifany.

(a) For purposes of the educational backgroundrequirements established under this section, thedirector shall grant credits for any courses takenon real estate appraisal ethics or practices

pursuant to Section 10153.2, or which aredeemed by the director to meet standardsestablished pursuant to this part and federal law.

(b) For the purpose of implementing andapplying this section, the director shall prescribeby regulation equivalent courses andequivalent experience. The experience ofemployees of an assessors office or of the StateBoard of Equalization in setting forth opinionsof value of real property for tax purposes shall

be deemed equivalent to experience in federally

related real estate appraisal activity.Notwithstanding any other law, a holder of avalid real estate broker license shall be deemedto have completed appraisal license applicationexperience requirements upon proof that he orshe has accumulated 1,000 hours of experience

in the valuation of real property.(c) The director shall adopt regulations forlicensure which shall meet, at a minimum, therequirements and standards established by theAppraisal Foundation, the Resolution TrustCorporation, and the federal financialinstitutions regulatory agencies acting pursuantto Section 1112 of the Financial InstitutionsReform Recovery and Enforcement Act of 1989,Public Law 101-73 (FIRREA). The director

shall, by regulation, require the application for areal estate appraiser license to include theapplicants social security number.

(d) In evaluating the experience of any applicantfor a license, regardless of the number of hoursrequired of that applicant, the director shallapply the same standards to the experience of allapplicants.

(e) No license shall be issued to an applicantwho is less than 18 years of age.

Term of License

11341.A license issued with an effective date ofJanuary 1, 2000, or later shall be valid for twoyears unless otherwise extended or limited bythe director.

Fingerprint Cards Required Records Check

11343. (a) The office shall submit to theDepartment of Justice fingerprint images andrelated information required by the Departmentof Justice of all real estate appraiser licenseapplicants and each controlling person of eachapplicant for registration as an appraisalmanagement company, for the purposes ofobtaining information as to the existence andcontent of a record of state or federalconvictions and state or federal arrests and alsoinformation as to the existence and content of arecord of state or federal arrests for which theDepartment of Justice establishes that the personis free on bail or on his or her own recognizance

pending trial or appeal.


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(b) When received, the Department of Justiceshall forward to the Federal Bureau ofInvestigation requests for federal summarycriminal history information received pursuantto this section. The Department of Justice shallreview the information returned from the

Federal Bureau of Investigation and compile anddisseminate a response to the office.

(c) The Department of Justice shall provide aresponse to the office pursuant to paragraph (1)of subdivision (p) of Section 11105 of the PenalCode.

(d) The office shall request from the Departmentof Justice subsequent arrest notification service,as provided pursuant to Section 11105.2 of thePenal Code, for persons described in subdivision

(a).

(e) The Department of Justice shall charge a feesufficient to cover the cost of processing therequest described in this section.

Temporary License Probationary License

11344. (a) Notwithstanding Section 11341, atemporary license may be issued pending theoutcome of the fingerprint and backgroundcheck or as otherwise prescribed by the director.A temporary license is valid for up to 150 days.Unless otherwise prohibited pursuant to Section11350.6 of the Welfare and Institutions Code, atemporary license may be renewed once at thediscretion of the director.

(b) The director may issue a probationary licenseas follows:

(1) By term.

(2) By conditions to be observed in theexercise of the privileges granted.

Appraisal Management Companies

Regulations

11345. The director shall adopt regulationsgoverning the process and procedure of applyingfor registration as an appraisal managementcompany. Applications for a certificate ofregistration shall require, at a minimum, all ofthe following:

(a) The name of the person or entity seeking

registration.

(b) The business address and telephone numberof the person or entity seeking registration.

(c) If the applicant is not a person or entitydomiciled in this state, the name and contactnumber of a person or entity acting as agent forservice of process in this state, along with an

irrevocable consent to service of process in favorof the office.

(d) The name, address, and contact informationfor each controlling person employed by theapplicant who has operational authority to directthe management of, and establish policies for,the applicant. If the applicant employs more than10 individuals meeting the criteria of thissubdivision, the applicant may list the names,addresses, and contact information for the 10

individuals meeting the criteria who hold thegreatest level of management responsibilitywithin its organization.

Appraisal Management Companies Contact

Information

11345.05.(a) A registrant shall notify the officewithin 10 business days, on a form developed bythe office, of any additions, deletions, orchanges in the names, addresses, and contactinformation for the individuals listed on its

application.

(b) A registrant shall correct information on filewith the office within 10 business days ofdiscovering an error in that information, andshall not be subject to disciplinary action by thedirector or the office for incorrect informationthe registrant corrects within 10 business days ofits discovery as being inaccurate.

11345.1. A certificate of registration as an

appraisal management company shall be validfor a period of two years, unless otherwiseextended or limited by the director.

11345.2. (a) No individual may act as acontrolling person for a registrant if any of thefollowing apply:

(1) The individual has entered a plea ofguilty or no contest to, or been convicted of,a felony.


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(2) The individual has had a license orcertificate to act as an appraiser or to engagein activities related to the transfer of realproperty refused, denied, canceled, orrevoked in this state or any other state.

(b) Any individual who acts as a controlling

person of an appraisal management companyand who enters a plea of guilty or no contest to,or is convicted of, a felony, or who has a licenseor certificate as an appraiser refused, denied,canceled, or revoked in any other state shallreport that fact or cause that fact to be reportedto the office, in writing, within 10 days of thedate he or she has knowledge of that fact.

11345.3.The director may not issue a certificateof registration to an appraisal managementcompany unless the appraisal managementcompany confirms in its application forregistration that all of its contracts with clientsinclude provision of each of the following asstandard business practices, as and whereapplicable:

(a) Ensuring that independent contractorappraisers contracted by the applicant possess allrequired licenses and certificates from the office.

(b) Reviewing the work of all independentcontractor appraisers contracted by the applicantto ensure that appraisal services are performed inaccordance with the Uniform Standards ofProfessional Appraisal Practice.

(c) Maintaining records of each of the followingfor each service request:

(1) Date of receipt of the request.

(2) Name of the person from whom therequest was received.

(3) Name of the client for whom the requestwas made, if different from the name of theperson from whom the request was received.

(4) The appraiser or appraisers assigned toperform the contracted service.

(5) Date of delivery of the appraisal productto the client.

11345.4. No person or entity acting in the

capacity of an appraisal management company

shall improperly influence or attempt toimproperly influence the development,reporting, result, or review of any appraisal byengaging, without limitation, in any of thefollowing:

(a) Withholding or threatening to withhold

timely payment for an appraisal.

(b) Withholding or threatening to withholdfuture business for an independent appraiser,including removal from approved panels ofappraisers.

(c) Expressly or impliedly promising futurebusiness, promotions, or increased compensationfor an independent appraiser.

(d) Conditioning the request for an appraisal

service or the payment of an appraisal fee orsalary or bonus on the opinion, conclusion, orvaluation in an appraisal report, or on apreliminary estimate or opinion requested froman independent appraiser.

(e) Requesting the payment of compensation toachieve higher priority in the assignment ofappraisal business.

(f) Requesting that an appraiser provide anestimated, predetermined, or desired valuation in

an appraisal report, providing to an appraiser ananticipated, estimated, encouraged, or desiredvaluation in an appraisal report, or requestingthat an appraiser provide estimated values ofcomparable sales at any time before theappraiser completes an appraisal report.

11345.45.A person or entity may not structurean appraisal assignment or a contract with anindependent appraiser for the purpose of evadingthe provisions of this part relating to appraisalmanagement companies.

11345.6. (a) No registered appraisalmanagement company may alter, modify, orotherwise change a completed appraisal reportsubmitted by an independent appraiser,including, without limitation, by doing either ofthe following:

(1) Permanently removing the appraiser'ssignature or seal.


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(2) Adding information to, or removinginformation from, the appraisal report withan intent to change the value conclusion.

(b) No registered appraisal managementcompany may require an appraiser to provide itwith the appraiser's digital signature or seal.

However, nothing in this subdivision shall bedeemed to prohibit an appraiser from voluntarilyproviding his or her digital signature or seal toanother person.

11346. The provisions of this part relating toappraisal management companies shall cease tobe operative 60 days after the effective date of afederal law that mandates the registration orlicensing of appraisal management companieswith an entity other than the state regulatoryauthority with jurisdiction over licensed andcertified appraisers.

CHAPTER 5. RECIPROCITY

Regulations Regarding Reciprocity

11350. The director shall adopt regulationsgoverning the process and procedure of applyingfor reciprocity, which shall meet, at a minimum,the requirements of the AppraisalSubcommittee.

Temporary Practice Not Required if Proper

Assistance Undertaken

11351.Temporary practice is not required underthis chapter if the appraiser from another stateassists in the performance of the appraisal asprovided by Section 11324.

Regulations Regarding Temporary Practice

11352. The director shall adopt regulationsgoverning the process and procedure of applyingfor temporary practice, which shall meet, at aminimum, the requirements of the AppraisalSubcommittee.

CHAPTER 6. CONTINUING EDUCATION

Regulations Governing Renewal Continuing

Education Requirements

11360. (a) The director shall adopt regulationsgoverning the process and procedures forrenewal of a license which shall include, but notbe limited to, continuing education

requirements, which shall be reported on thebasis of four-year continuing education cycles.

(b) An applicant for renewal of a license shall berequired to demonstrate his or her continuingfitness to hold a license prior to its renewal.Applicants shall also fulfill continuing education

requirements established pursuant to this sectionand may certify that they have read andunderstand all applicable California and federallaws and regulations pertaining to the licensingand certification of real estate appraisers in lieuof being required to take a minimum of fourhours of federal and California appraisal-relatedstatutory and regulatory law every four years.

Director to Adopt Continuing Education

Regulations

11361. The director shall adopt regulations forimplementation of this chapter to ensure thatpersons engaged in appraisal activity havecurrent knowledge of real estate appraisaltheories, practices, and techniques which willprovide a high degree of service and protectionto the public.

CHAPTER 7. FEES

When and How Payable Refunds at

Discretion of Director11400.(a) Initial application fees shall be paid tothe office at the time of application.

(b) All issuance-related fees shall be paid to theoffice at the time the issuance application issubmitted to the office.

(c) All fees shall be paid by cashiers check,certified check, money order, or governmentpurchase order. In addition, the office mayaccept personal checks or credit cards for the

payment of fees. All fees shall be deemed earnedby the office upon receipt and are refundable atthe discretion of the director.

Examination Fee

11401. (a) The fee to take an examination orreexamination for a license shall be set at anamount not to exceed the cost to the office asdetermined by competitive bid.

(b) The director may provide that the applicantpay the fee directly to the examination provider.


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Appraiser License Fee

11404. The fee for an original or renewal realestate appraiser license or appraiser traineelicense shall not exceed four hundred fiftydollars ($450), which includes the applicationand issuance fees.

Certification Fee

11405. The fee for an original or renewalcertification as a state certified real estateappraiser shall not exceed five hundred twenty-five dollars ($525), which includes theapplication and issuance fees.

Education Courses Equivalency Claims

Fees

11406. (a) The director shall by regulationestablish fees for approval of basic education

and continuing education courses or theirequivalent, or for the evaluation of petitions ofapplicants based upon claims of equivalencypursuant to Section 11340. The fees establishedby regulation shall be sufficient to cover thecosts incurred by the office in processingapplications for course approvals and petitionsfor equivalency.

(b) The director shall by regulation establish feesfor approval of courses of study required to be

taken by applicants for licenses. The feesestablished by regulation shall be sufficient tocover the costs incurred by the office inprocessing applications for course approvals andpetitions for equivalency.

Appraisal Management Companies

Registration Fees

11406.5. The director shall, by regulation,establish the fees to be imposed on appraisalmanagement companies. The fees shall besufficient to cover the costs incurred by theoffice in administering the changes to this partmade by the act adding this section.

Director May Set Lower Fees if Adequate

11407. The director may by regulation prescr

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