SB641 - Department of Consumer Affairs and Department of Real Estate: states of emergency: waivers and exemptions.

Enrolled September 18, 2025 Passed IN Senate September 13, 2025 Passed IN Assembly September 12, 2025 Amended IN Assembly September 04, 2025 Amended IN Assembly September 02, 2025 Amended IN Senate April 09, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 641 Introduced by Senator Ashby (Principal coauthors: Senators Cervantes, Cortese, Gonzalez, Grayson, Hurtado, and Pérez) (Coauthors: Senators Allen, Cabaldon, Padilla, Rubio, and Wahab) February 20, 2025 An act to amend Sections 122, 136, and 10176 of, and to add Sections 108.1, 136.5, 7058.9, and 10089 to, the Business and Professions Code, relating to professions and vocations, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 641, Ashby. Department of Consumer Affairs and Department of Real Estate: states of emergency: waivers and exemptions. Existing law establishes in the Business, Consumer Services, and Housing Agency the Department of Real Estate to license and regulate real estate licensees, and the Department of Consumer Affairs, which is composed of various boards that license and regulate various businesses and professions. This bill would authorize the Department of Real Estate and boards under the jurisdiction of the Department of Consumer Affairs to waive the application of certain provisions of the licensure requirements that the board or department is charged with enforcing for licensees and applicants who reside in or whose primary place of business is in a location damaged by a natural disaster for which a state of emergency is proclaimed by the Governor, as specified, or for which an emergency or major disaster is declared by the President of the United States, including certain examination, fee, and continuing education requirements. The bill would require a board to notify the director of the Department of Consumer Affairs in writing of any waiver approved by that board, and would prohibit the waiver from taking effect for a period of 5 business days after the director receives the notification from the board. The bill would authorize the director to approve or disapprove a waiver within the 5 business days described above, and require the director to notify the board of any decision to approve or disapprove a waiver within those 5 business days. The bill would prohibit a waiver from taking effect if the director disapproves the waiver, and require a waiver that is approved by the director, or that fails to be approved or disapproved by the director within the 5 business days described above, to take effect the following day. The bill would require the Department of Consumer Affairs to, among other things, post each waiver that takes effect on its website. The bill would exempt the above-described licensees of boards from, among other requirements, the payment of duplicate license fees. The bill would require all applicants and licensees of the boards under the Department of Consumer Affairs to provide the board with an email address. The bill would prohibit a contractor licensed pursuant to the Contractors State License Law from engaging in debris removal unless the contractor has one of specified license qualifications or has been authorized by the registrar of contractors during a declared state of emergency or for a declared disaster area due to a natural disaster. The bill would require a licensee authorized to perform debris removal to pass an approved hazardous substance certification examination, and comply with certain occupational safety and health requirements concerning hazardous waste operations and emergency response, as specified. The bill would require the Real Estate Commissioner, immediately upon the declaration of a natural disaster for which a state of emergency, emergency, or major disaster is proclaimed or declared as described above, to determine the nature and scope of any unlawful, unfair, or fraudulent practices, as specified, and provide specified notice to the public regarding those practices. The bill would authorize the commissioner to suspend or revoke a real estate license if the licensee, until one year following the declaration of a natural disaster for which a state of emergency, emergency, or major disaster is proclaimed or declared as described above, makes an unsolicited offer to an owner of real property to purchase or acquire an interest in the real property, when that property is located in an area included in a declared federal, state, or local emergency or disaster, for an amount less than the fair market value, as defined, of the property or interest of the property, as specified. This bill would declare that it is to take effect immediately as an urgency statute. Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. It is the intent of the Legislature to provide boards, bureaus, commissions, and regulatory entities within the jurisdiction of the Department of Consumer Affairs and the Department of Real Estate with authority to address licensing and enforcement concerns in real time after an emergency is declared. SEC. 2. Section 108.1 is added to the Business and Professions Code, to read: 108.1. (a) To aid in the protection of the public health, the provision of patient care, the continuity of services, and to support impacted individuals, the Department of Real Estate or any board under the jurisdiction of the Department of Consumer Affairs, as specified in Section 101, may waive the application of any provision of law that the board or department is charged with enforcing for licensees and applicants who reside in or whose primary place of business is in a location damaged by a natural disaster for which a state of emergency is proclaimed by the Governor pursuant to Section 8625 of the Government Code or for which an emergency or major disaster is declared by the President of the United States, that is related to any of the following: (1) Requirements related to timing for taking examinations. (2) Extending licensure renewal deadlines. (3) Permitting license renewal without completing continuing education and postponing continuing education deadlines to a time after renewal. (4) Permitting license display requirements to include displaying a license verification printout from the boards’ websites during declared emergencies. (5) Permitting license renewal without paying the renewal fee and postponing payment of the renewal fee to a time after renewal. (6) Requirements to pay delinquency fees. (7) Extending the time for applicants to complete their applications before the application is considered abandoned. (b) (1) A board shall notify the director of the Department of Consumer Affairs in writing of any waiver approved by that board, and the waiver shall not take effect for a period of five business days after the director receives the notification from the board. (2) The director may approve or disapprove a waiver within five business days of receiving the notification from the board. The director shall notify the board of any decision to approve or disapprove a waiver within five business days of receiving the notification. (3) If the director disapproves a waiver, it shall not take effect. If the director approves a waiver, or the director fails to approve or disapprove a waiver within five business days of receiving the notification, the waiver shall take effect the following day. (4) The Department of Consumer Affairs shall post each waiver that takes effect on its website and notify the appropriate legislative committees of each effective waiver issued by a board within the department. (c) (1) The authority specified in subdivision (a) shall extend through the duration of a declared federal, state, or local emergency or disaster and for either of the following, as determined by the board or the Department of Real Estate, if the extension will aid in the protection of the public health, the provision of patient care, the continuity of services, or the support of impacted individuals: (A) One year after the end of the declared emergency or disaster. (B) An additional period of time beyond one year after the end of the declared emergency or disaster, as determined by the board or the Department of Real Estate. (2) A waiver extension approved by a board is subject to notification and approval of the director, as specified in subdivision (b). SEC. 3. Section 122 of the Business and Professions Code is amended to read: 122. (a) Except as specified in subdivision (b) or otherwise provided by law, the department and each of the boards, bureaus, committees, and commissions within the department may charge a fee for the processing and issuance of a duplicate copy of any certificate of licensure or other form evidencing licensure or renewal of licensure. The fee shall be in an amount sufficient to cover all costs incident to the issuance of the duplicate certificate or other form but shall not exceed twenty-five dollars ($25). (b) This section shall not apply to a licensee who resides in or whose primary place of business is in a location damaged by a natural disaster for which a state of emergency is proclaimed by the Governor pursuant to Section 8625 of the Government Code or for which an emergency or major disaster is declared by the President of the United States. SEC. 4. Section 136 of the Business and Professions Code is amended to read: 136. (a) Each person holding a license, certificate, registration, permit, or other authority to engage in a profession or occupation issued by a board within the department shall notify the issuing board at its principal office of any change in the person’s mailing address within 30 days after the change, unless the board has specified by regulations a shorter time period. (b) (1) Except as otherwise provided by law, failure of a licensee to comply with the requirement in subdivision (a) constitutes grounds for the issuance of a citation and administrative fine, if the board has the authority to issue citations and administrative fines. (2) This section shall not apply to a licensee whose home or business mailing address is located in a location damaged by a natural disaster for which a state of emergency is proclaimed by the Governor pursuant to Section 8625 of the Government Code or for which an emergency or major disaster is declared by the President of the United States. SEC. 5. Section 136.5 is added to the Business and Professions Code, to read: 136.5. Every applicant for licensure and every licensee of a board under the jurisdiction of the Department of Consumer Affairs, as specified in Section 101, shall provide the board with an email address. SEC. 6. Section 7058.9 is added to the Business and Professions Code, to read: 7058.9. (a) Notwithstanding Section 40520 of the Public Resources Code, a contractor shall not engage in debris removal unless the contractor has one of the following licenses or classifications: (1) A - General Engineering Contractor. (2) B - General Building Contractor. (3) C-12 Earthwork and Paving and C-21 Building Moving/Demolition. (b) During a declared federal, state, or local emergency or for a declared disaster area due to a natural disaster, the registrar may authorize additional classifications to perform debris removal, including muck out services, based on the needs of the declared emergency or disaster. The registrar may make the determination on a case-by-case basis and without requiring regulations. (c) Any licensee authorized to perform debris removal pursuant to this section shall have passed an approved hazardous substance certification examination and shall comply with the hazardous waste operations and emergency response requirements pursuant to Section 5192 of Title 8 of the California Code of Regulations. SEC. 7. Section 10089 is added to the Business and Professions Code, to read: 10089. Immediately upon the declaration of a natural disaster for which a state of emergency is proclaimed by the Governor pursuant to Section 8625 of the Government Code or for which an emergency or major disaster is declared by the President of the United States, the commissioner, in consultation with other agencies and departments, as appropriate, shall do the following: (a) Expeditiously, and until one year following the end of the emergency, determine the nature and scope of any unlawful, unfair, or fraudulent practices employed by any individual or entity seeking to take advantage of property owners in the wake of the emergency. (b) Provide notice to the public of the nature of these practices, their rights under the law, relevant resources that may be available, and contact information for authorities to whom violations may be reported. SEC. 8. Section 10176 of the Business and Professions Code is amended to read: 10176. The commissioner may, upon their own motion, and shall, upon the verified complaint in writing of any person, investigate the actions of any person engaged in the business or acting in the capacity of a real estate licensee within this state, and the commissioner may temporarily suspend or permanently revoke a real estate license at any time where the licensee, while a real estate licensee, in performing or attempting to perform any of the acts within the scope of this chapter has been guilty of any of the following: (a) Making any substantial misrepresentation. (b) Making any false promises of a character likely to influence, persuade, or induce. (c) A continued and flagrant course of misrepresentation or making of false promises through licensees. (d) Acting for more than one party in a transaction without the knowledge or consent of all parties thereto. (e) Commingling with their own money or property the money or other property of others that is received and held by the licensee. (f) Claiming, demanding, or receiving a fee, compensation, or commission under any exclusive agreement authorizing a licensee to perform any acts set forth in Section 10131 for compensation or commission where the agreement does not contain a definite, specified date of final and complete termination. (g) The claiming or taking by a licensee of any secret or undisclosed amount of compensation, commission, or profit or the failure of a licensee to reveal to the buyer or seller contracting with the licensee the full amount of the licensee’s compensation, commission, or profit under any agreement authorizing the licensee to do any acts for which a license is required under this chapter for compensation or commission prior to or coincident with the signing of an agreement evidencing the meeting of the minds of the contracting parties, regardless of the form of the agreement, whether evidenced by documents in an escrow or by any other or different procedure. (h) The use by a licensee of any provision, which allows the licensee an option to purchase, in an agreeme [Text truncated for display. Full text available on Congress.gov.]