Cal. Code Regs. Tit. 10, § 2911 - Criteria for Rehabilitation (Denial)

Current through Register 2021 Notice, Register No. 40, October 1, 2021

(a) The following criteria have been developed and will be considered by the Bureau pursuant to Section 482 of the Business and Professions Code for the purpose of evaluating whether or not an applicant is rehabilitated for purposes of issuance or for reinstatement of a license:
(1) The time that has elapsed since commission of the acts(s) or offense(s):
(A) The passage of less than two years after the most recent criminal conviction or act of the applicant that is a cause of action in the Bureau's Statement of Issues against the applicant is inadequate to demonstrate rehabilitation.
(B) Notwithstanding subdivision (a)(1)(A), above, the two year period may be increased based upon consideration of the following:
(i) The nature and severity of the crime(s) and/or act(s) committed by the applicant.
(ii) The applicant's history of criminal convictions and/or license discipline that are "substantially related" to the qualifications, functions, or duties of a real estate licensee. However, no rehabilitation shall be required where the sole proven basis or bases for denial of an application is an expunged conviction as described in Business and Professions Code Section 480(c).
(2) Restitution to any person who has suffered monetary losses through "substantially related" acts or omissions of the applicant, or escheat to the State of these monies or other properties if the victim(s) cannot be located.
(3) Expungement of criminal convictions.
(4) Expungement or discontinuance of a requirement of registration pursuant to the provisions of Section 290 of the Penal Code.
(5) Successful completion or early discharge from probation or parole.
(6) Abstinence from the use of controlled substances and/or alcohol for not less than two years if the conduct which is the basis to deny the Bureau action sought is attributable in part to the use of controlled substances and/or alcohol.
(7) Payment of the fine and/or other monetary penalty imposed in connection with a criminal conviction or quasi-criminal judgment.
(8) Stability of family life and fulfillment of parental and familial responsibilities subsequent to the conviction or conduct that is the basis for denial of the Bureau action sought.
(9) Completion of, or sustained enrollment in, formal education or vocational training courses for economic self-improvement.
(10) Discharge of, or bona fide efforts toward discharging, adjudicated debts or monetary obligations to others.
(11) Correction of business practices resulting in injury to others or with the potential to cause such injury.
(12) Significant or conscientious involvement in community, church or privately-sponsored programs designed to provide social benefits or to ameliorate social problems.
(13) New and different social and business relationships from those which existed at the time of the conduct that is the basis for denial of the Bureau action sought.
(14) Change in attitude from that which existed at the time of the conduct in question as evidenced by the following:
(A) Testimony and/or other evidence of rehabilitation submitted by the applicant.
(B) Evidence from family members, friends and/or other persons familiar with applicant's previous conduct and with his or her subsequent attitudes and/or behavioral patterns.
(C) Evidence from probation or parole officers and/or law enforcement officials competent to testify as to applicant's social adjustments.
(D) Evidence from psychiatrists or other persons competent to testify with regard to neuropsychiatric or emotional disturbances.
(E) Absence of subsequent felony convictions, misdemeanor convictions, or other conduct that provides grounds to discipline a real estate licensee, which reflect an inability to conform to societal rules when considered in light of the conduct in question.
(b) The SAFE Act, commencing with section 10166.01 of the Business and Professions Code, imposes specific conditions that apply to applications for a mortgage loan originator license endorsement. Each of the above criteria notwithstanding, no mortgage loan originator license endorsement shall be issued to an applicant for such license endorsement where the applicant:
(1) Has been convicted of any felony during the seven year period preceding the date of his or her application for a license endorsement. This ban is not subject to mitigation or rehabilitation unless the felony conviction has been expunged or pardoned, or unless the real estate licensee has obtained a certificate of rehabilitation under Chapter 3.5 (commencing with Section 4852.01 ) of Title 6 of Part 3 of the Penal Code.
(2) Has ever been convicted of a felony where such felony involved an act of fraud, dishonesty, a breach of trust, or money laundering. This ban is not subject to mitigation or rehabilitation unless the felony conviction has been expunged or pardoned, or unless the real estate licensee has obtained a certificate of rehabilitation under Chapter 3.5 (commencing with Section 4852.01 ) of Title 6 of Part 3 of the Penal Code.

Notes

Cal. Code Regs. Tit. 10, § 2911

Note: Authority cited: Sections 482, 10080 and 10166.17, Business and Professions Code. Reference: Sections 480, 482, 10166.05(b) and 10166.051, Business and Professions Code.

1. New subsection (d), subsection relettering and new Note filed 6-20-2002; operative 7-20-2002 (Register 2002, No. 25).
2. New subsection (n)(5) and amendment of Note filed 9-5-2003; operative 10-5-2003 (Register 2003, No. 36).
3. New subsections (o) and (p) and amendment of Note filed 2-23-2010 as an emergency; operative 2-23-2010 (Register 2010, No. 9). A Certificate of Compliance must be transmitted to OAL by 8-23-2010 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 2-23-2010 order transmitted to OAL 5-6-2010 and filed 6-29-2010 (Register 2010, No. 27).
5. Change without regulatory effect amending first paragraph and subsections (a), (f) and (h) filed 6-30-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 27).
6. Amendment of section heading, section and Note filed 3-9-2017; operative 7-1-2017 (Register 2017, No. 10).

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