Prepaid rental listing service.

Existing law authorizes specified state agencies to issue a citation including an order of correction, as specified, if, upon investigation, the agency has probable cause to believe that a person is advertising services in a telephone directory without being properly licensed or registered to offer or perform those services. This bill would authorize the Bureau of Real Estate to issue those citations. The Real Estate Law provides for the licensure and regulation of prepaid rental listing services by the Real Estate Commissioner. Existing law prohibits a person from engaging in the business of a prepaid rental listing service unless licensed in that capacity or licensed as a real estate broker. A willful violation of these provisions is a crime. Existing law authorizes the commissioner, or his or her designated representative, to issue a citation to a person who does not possess a real estate license if the commissioner has cause to believe that the person is engaged or has engaged in activities for which a license is required. This bill would additionally authorize a citation to be issued for a person who does not possess a prepaid rental listing service license or a real estate broker license if the commissioner has cause to believe that the person is engaged or has engaged in activities for which a license is required. Existing law imposes a $100 fee for an application for a license as a prepaid rental listing service for the first location, and a $25 fee for each additional location. Existing law imposes additional fees for obtaining or renewing a broker license or salesperson license when, on June 30 of any year, the balance remaining in the Consumer Recovery Account, a continuously appropriated account in the Real Estate Fund, is less than $200,000, and for 4 years thereafter. This bill would increase those application fees to $125 and $50, respectively. The bill would require $25 of each application fee to be credited to the Consumer Recovery Account. The bill would also impose an additional fee of $1 on every person obtaining or renewing a prepaid rental listing service license for 2 years after the balance in that account is less than $200,000. By increasing the amount of moneys that may be deposited into the Consumer Recovery Account, this bill would make an appropriation. Existing law requires a prepaid rental listing service licensee to offer the prospective tenant a written contract prior to the acceptance of a fee. The contract must include, among other things, the licensee's name. This bill would also require the contract to include the licensee's license number. The bill would also require a specified written notice about refunds to be provided to the prospective tenant prior to the acceptance of a fee. Because a willful violation of these provisions would be a crime, this bill would impose a state-mandated local program. The bill also would make related changes. Existing law authorizes an aggrieved person, who obtains a final judgment, including a criminal restitution order, or an arbitration award based on a defendant's acts for which a real estate license was required, to apply to the bureau for payment from the Consumer Recovery Act, as specified. Existing law requires the license of a broker or salesperson to be automatically suspended when the commissioner pays from the Consumer Recovery Account any amount in the settlement of a claim or toward the satisfaction of a judgment against that broker or salesperson. This bill would additionally apply those provisions to the license of a prepaid rental listing service licensee. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.