California 2017-2018 Regular Session Status: Enacted

SB 764 — Real estate trust fund accounts: fidelity insurance.

Last action — Chaptered by Secretary of State. Chapter 248, Statutes of 2017.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 17, 2017. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 5 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Existing law, the Real Estate Law, provides for the licensure and regulation of real estate brokers by the Real Estate Commissioner. Existing law requires a real estate broker who accepts funds belonging to others in connection with a transaction to deposit all those funds in either a neutral escrow depository, into the hands of the broker's principal, or into a trust fund account, as specified. Existing law authorizes certain persons, including, among others, a real estate salesperson licensed to the broker to withdraw funds from a trust fund account of the broker if specifically authorized in writing. Existing law authorizes an unlicensed employee of the broker to withdraw funds from the broker's trust fund account if the broker has fidelity bond coverage equal to the maximum amount of the trust funds to which the unlicensed employee has access to at any time. Existing law authorizes this bond to have a deductible of up to 5% of the coverage amount, if the employing broker has evidence of financial responsibility and requires financial responsibility to be a separate fidelity bond coverage or a cash deposit adequate to cover the amount of the fidelity bond deductible, as specified, or any other evidence of financial responsibility approved by the commissioner. This bill would also authorize an unlicensed employee of the broker to withdraw funds if the broker has insurance coverage equal to the maximum amount of the trust funds to which the unlicensed employee has access to at any time. The bill would require, in this context, that bonds and insurance protect the broker from intentional wrongful acts committed by an employee of that business, including theft, dishonest acts, or forgery. The bill would make conforming changes.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 248, Statutes of 2017.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3 p.m.

  4. In Senate. Ordered to engrossing and enrolling.

  5. Read third time. Passed. (Ayes 76. Noes 0. Page 2770.) Ordered to the Senate.

  6. Read second time. Ordered to consent calendar.

  7. From committee: Do pass. Ordered to consent calendar. (Ayes 16. Noes 0.) (July 19).

  8. From committee: Do pass and re-refer to Com. on APPR. (Ayes 15. Noes 0.) (June 27). Re-referred to Com. on APPR.

  9. Referred to Com. on B. & P.

  10. In Assembly. Read first time. Held at Desk.

  11. Read third time. Passed. (Ayes 39. Noes 0. Page 1069.) Ordered to the Assembly.

  12. Read second time. Ordered to third reading.

  13. From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

  14. Set for hearing May 15.

  15. May 8 hearing postponed by committee.

  16. Set for hearing May 8.

  17. Re-referred to Com. on APPR.

  18. Withdrawn from committee.

  19. Read second time and amended. Re-referred to Com. on B., P. & E.D.

  20. From committee: Do pass as amended and re-refer to Com. on B., P. & E.D. (Ayes 7. Noes 0. Page 781.) (April 19).

  21. Set for hearing April 19.

  22. April 5 set for first hearing canceled at the request of author.

  23. Set for hearing April 5.

  24. Referred to Coms. on B. & F.I. and B., P. & E.D.

  25. From printer. May be acted upon on or after March 23.

  26. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Moorlach · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Moorlach

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

SB 764 Moorlach Consent Calendar Second Day

Passed 76 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 56002
Democratic 14001
Republican 6000
Total 76003
% of votes cast 96%0%0%4%
How each member voted (79)
Member Party Vote
Acosta — Yea
Baker — Yea
Bloom — Yea
Brough — Yea
Holden — Yea
Mathis — Yea
Nazarian — Yea
O'Donnell — Yea
Thurmond — Yea
Waldron — Yea
Weber — Yea
Frazier — Yea
Gloria — Yea
Gonzalez Fletcher — Yea
Burke — Yea
Fong — Yea
Salas — Yea
Kiley — Yea
Levine — Yea
Gray — Yea
Low — Yea
Bocanegra — Yea
Mayes — Yea
Medina — Yea
Chau — Yea
Chu — Yea
Cooley — Yea
Cunningham — Yea
Daly — Yea
Melendez — Yea
Mullin — Yea
Quirk — Yea
Rendon — Yea
Rodriguez — Yea
Santiago — Yea
Ting — Yea
Voepel — Yea
Wood — Yea
Rubio — Yea
Chiu — Yea
Friedman — Yea
Harper — Yea
Jones-Sawyer — Yea
Maienschein — Yea
McCarty — Not Voting
Obernolte — Yea
Ridley-Thomas — Yea
Bigelow — Yea
Chávez — Yea
Steinorth — Yea
Eggman — Yea
Cooper — Yea
Dababneh — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Mark Stone — Yea
Travis Allen — Not Voting
Aguiar-Curry, Cecilia M. Democratic Not Voting
Arambula, Joaquin Democratic Yea
Berman, Marc Democratic Yea
Bonta, Mia Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Do pass. To Consent Calendar.

Passed 16 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 13000
Democratic 3000
Republican 0001
Total 16001
% of votes cast 94%0%0%6%
How each member voted (17)
Member Party Vote
Bigelow — Yea
Bloom — Yea
Brough — Yea
McCarty — Yea
Quirk — Yea
Eggman — Yea
Friedman — Yea
Obernolte — Yea
Fong — Yea
Gonzalez Fletcher — Yea
Bocanegra — Yea
Chau — Yea
Eduardo Garcia — Yea
Bonta, Mia Democratic Yea
Muratsuchi, Al Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Gallagher, James Republican Not Voting

Official roll call →

Do pass and be re-referred to the Committee on [Appropriations]

Passed 15 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 9001
Democratic 4000
Republican 2000
Total 15001
% of votes cast 94%0%0%6%
How each member voted (16)
Member Party Vote
Baker — Yea
Bloom — Not Voting
Steinorth — Yea
Eggman — Yea
Holden — Yea
Low — Yea
Mullin — Yea
Ting — Yea
Chiu — Yea
Cunningham — Yea
Arambula, Joaquin Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Chen, Phillip Republican Yea
Dahle, Megan Republican Yea

Official roll call →

3rd Reading

Passed 39 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 34001
Democratic 5000
Total 39001
% of votes cast 98%0%0%3%
How each member voted (40)
Member Party Vote
Hertzberg — Yea
Lara — Yea
Mendoza — Yea
Morrell — Yea
Nielsen — Yea
Skinner — Yea
Wieckowski — Yea
Glazer — Yea
Hernandez — Yea
Atkins — Yea
Cannella — Yea
Mitchell — Yea
Hill — Yea
Allen — Yea
Dodd — Yea
De León — Yea
Portantino — Yea
Hueso — Yea
Leyva — Yea
Monning — Yea
Moorlach — Yea
Newman — Yea
Anderson — Yea
Bates — Yea
Beall — Yea
Bradford — Yea
Pan — Yea
Roth — Yea
Vidak — Not Voting
Wilk — Yea
Fuller — Yea
Galgiani — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Mark Stone — Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Yea
Stern, Henry I. Democratic Yea
Wiener, Scott D. Democratic Yea

Official roll call →

Subjects

finance housing
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 764 do?
Existing law, the Real Estate Law, provides for the licensure and regulation of real estate brokers by the Real Estate Commissioner. Existing law requires a real estate broker who accepts funds belonging to others in connection with a transaction to deposit all those funds in either a neutral escrow depository, into the hands of the broker's principal, or into a trust fund account, as specified. Existing law authorizes certain persons, including, among others, a real estate salesperson licensed to the broker to withdraw funds from a trust fund account of the broker if specifically authorized in writing. Existing law authorizes an unlicensed employee of the broker to withdraw funds from the broker's trust fund account if the broker has fidelity bond coverage equal to the maximum amount of the trust funds to which the unlicensed employee has access to at any time. Existing law authorizes this bond to have a deductible of up to 5% of the coverage amount, if the employing broker has evidence of financial responsibility and requires financial responsibility to be a separate fidelity bond coverage or a cash deposit adequate to cover the amount of the fidelity bond deductible, as specified, or any other evidence of financial responsibility approved by the commissioner. This bill would also authorize an unlicensed employee of the broker to withdraw funds if the broker has insurance coverage equal to the maximum amount of the trust funds to which the unlicensed employee has access to at any time. The bill would require, in this context, that bonds and insurance protect the broker from intentional wrongful acts committed by an employee of that business, including theft, dishonest acts, or forgery. The bill would make conforming changes.
Who sponsors SB 764?
SB 764 is sponsored by Moorlach.
What is the current status of SB 764?
This bill has been enacted into law. Introduced February 17, 2017. Enacted.
Where can I track SB 764?
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Last checked for changes 3 months ago · updated continuously

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