Gov. Brown Signature Returns CalBRE to Dept. of R.E.
Gov. Jerry Brown
Gov. Jerry Brown has signed SB 173 (Dodd), a C.A.R.-sponsored bill that will return CalBRE to its standing as the Department of Real Estate within the Business, Consumer Services, and Housing Agency (BCSH) under the Department of Consumer Affairs.
In 2012, the Brown Administration made changes to the state’s organizational structure in an effort to streamline government practices. These changes included moving the Department of Real Estate to the BCSH to function under the Department of Consumer Affairs as a bureau. SB 173 would return CalBRE to its standing as the Department of Real Estate within BCSH.
Despite Gov. Brown’s intention to save the state money and improve operational efficiencies, under the Department of Consumer Affairs, the cost to operate the CalBRE increased. Nearly 10% of CalBRE’s budget is diverted through a “pro-rata assessment” to maintain unspecified operations of the Department of Consumer Affairs. It is estimated that by returning BRE to its former status as a department, the Bureau would save about $3.5 million, all collected through fees paid by licensees.
This transfer of license monies is essentially an off-budget diversion of licensees’ fees that ought better to be used to serve the licensees that pay them.
SB 173 passed the legislature with unanimous floor votes in both houses and was signed by Gov. Brown on Oct. 15.