AB 688

Eligibility for licensure or registration by Real Estate Examining Board

following criminal convictions

Under current law (the Fair Employment Law), a state agency may refuse to

license, and may suspend from licensing, an individual who has been convicted of a

felony, misdemeanor, or other offense only if the circumstances of the offense

substantially relate to the circumstances of the particular licensed activity. The

definition of state agency, for purposes of the Fair Employment Law, includes

examining boards such as the Real Estate Examining Board (REEB), which issues

broker's and salesperson's licenses and time-share salesperson's certificates of

registration (real estate licenses and certificates).

Under this bill, notwithstanding the Fair Employment Law, no person may be

issued a real estate license or certificate if the applicant has been convicted of any

felony, other than: 1) a felony for which the person has been pardoned; 2) a felony

for which the conviction has been reversed, set aside, or vacated; or 3) a felony for

which the conviction has been expunged. The bill, however, provides for an exception

to the prohibition if five years have elapsed since the person completed the sentence

imposed for the felony, including any probation, parole, or extended supervision. In

that case, the person may apply to the REEB for a determination as to whether the

person is suitable to be granted a real estate license or certificate. The REEB must

then make a determination by reviewing any information relating to the felony;

reviewing any supplemental information provided by the applicant bearing upon his

or her suitability for licensure or registration; and considering various factors that

are specified in the bill. The bill provides that the applicant bears the burden of

demonstrating his or her suitability for licensure or registration if seeking such a

determination under this exception. The prohibition applies to current real estate

license and certificate holders as of the next time a real estate license or certificate

is renewed; the next deadline for renewing a license or certificate is December 15,

2014. In addition, the bill requires the REEB to revoke a person's real estate license

or certificate if the person is convicted of a felony after the bill's effective date. The

bill does not modify the law with respect to disqualifications from obtaining real

estate licenses or certificates due to convictions for misdemeanors or other offenses.

The bill also authorizes the REEB to, by rule, establish a preapplication

procedure. Under the preapplication procedure, a person who does not possess a real

estate license or certificate may apply for a determination of whether the person

would be disqualified from obtaining a real estate license or certificate due to his or

her criminal record without submitting a full application and without paying the fees

applicable to applicants. Any determination by the REEB under the preapplication

procedure is binding upon the REEB if the person subsequently applies for a real

estate license or certificate, unless there is information relevant to the determination

that was not available to the REEB at the time of the determination.