Text of proposed regulation and new statute regarding 'first point of contact' materials.

The following is the text of new Section 2773 of Title 10, California Code of Regulations, as proposed by the DRE:

Section 2773. Disclosure of License Identification Number on Solicitation Materials - First Point of Contact with Consumers.

(a) A real estate broker or salesperson, when engaging in acts for which a license is required, shall disclose its, his or her eight (8) digit real estate license identification number on all solicitation materials intended to be the first point of contact with consumers. If the name of more than one licensee appears in the solicitation, the license identification number of each licensee shall be disclosed. The license numbers of employing brokers or corporate brokers whose names or logos or trademarks appear on solicitation materials along with the names and license numbers of licensed employees or broker associates do not need to appear on those materials.

Solicitation materials intended to be the first point of contact with consumers, and in which a licensee must disclose a license identification number, include the following:

(1) Business cards;
(2) Stationery;
(3) Websites owned, controlled, and/or maintained by the soliciting real estate licensee; and
(4) Promotional and advertising fliers, brochures, email and regular mail, leaflets,and any marketing or promotional materials designed to solicit the creation of a professional relationship between the licensee and a consumer, or which is intended to incentivize, induce or entice a consumer to contact the licensee about any service for which a license is required.
The type size of the license identification number shall be no smaller than the smallest size type used in the solicitation material.

(b) For the purposes of Business and Professions Code Section 10140.6, solicitation materials do not include the following:
(1) Advertisements in electronic media (including, without limitation, radio, cinema and television ads, and the opening section of streaming video and audio);
(2) Print advertising in any newspaper or periodical; and
(3) "For Sale" signs placed on or around a property intended to alert the public the property is available for lease, purchase or trade.
Note: Authority cited: Section 10080, Business and Professions Code. Reference: Section 10140.6, Business and Professions Code.

The following is the text of the new statute:

SB 1461 has amended Section 10140.6 of the California Business and Professions Code, to read as follows:

10140.6. (a) A real estate licensee shall not publish, circulate, distribute, or cause to be published, circulated, or distributed in any newspaper or periodical, or by mail, any matter pertaining to any activity for which a real estate license is required that does not contain a designation disclosing that he or she is performing acts for which a real estate license is required.
(b) (1) A real estate licensee shall disclose his or her license identification number on all solicitation materials intended to be the first point of contact with consumers and on real property purchase agreements when acting as an agent in those transactions. The commissioner may adopt regulations identifying the materials in which a licensee must disclose a license identification number.
(2) For purposes of this section, "solicitation materials intended to be the first point of contact with consumers" includes business cards, stationery, advertising fliers, and other materials designed to solicit the creation of a professional relationship between the licensee and a consumer, and excludes an advertisement in print or electronic media and "for sale" signs.
(3) Nothing in this section shall be construed to limit or change the requirement described in Section 10236.4 as applicable to real estate brokers.
(c) The provisions of this section shall not apply to classified rental advertisements reciting the telephone number at the premises of the property offered for rent or the address of the property offered for rent.
(d)The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2009.