LawWiki
HomeCodesSearchGlossaryAPIAbout
LawWiki

Plain English summaries of California law with zero-hallucination AI. Every summary is verified against official source text.

Product

  • Search
  • Codes
  • About

Legal

  • Privacy Policy
  • Terms of Service
  • Disclaimer

© 2026 LawWiki. All rights reserved.

HomeBusiness and Professions CodeDiv. 4Pt. 1Ch. 2Art. 3§ 10106 Disciplinary Cost Recovery Orders

§ 10106 Disciplinary Cost Recovery Orders

Business and Professions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 10106 Disciplinary Cost Recovery Orders

Key Takeaways

  • •If a licensed professional breaks the rules, they might have to pay back the cost of the investigation.
  • •The cost includes things like the time spent investigating and legal fees.
  • •If they don’t pay, their license might not be renewed or could be canceled.
  • •They can sometimes get a temporary license if they promise to pay back the money within a year.

Example

A real estate agent breaks the rules and gets investigated.

The agent might have to pay for the cost of the investigation, like the time investigators spent and any legal fees. If they don’t pay, they could lose their license.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 10106 Disciplinary Cost Recovery Orders

(a) Except as otherwise provided by law, in any order issued in resolution of a disciplinary proceeding before the department, the commissioner may request the administrative law judge to direct a licensee found to have committed a violation of this part to pay a sum not to exceed the reasonable costs of the investigation and enforcement of the case. (b) In the case of a disciplined licensee that is a corporation or a partnership, the order may be made against the licensed corporate entity or licensed partnership. (c) A certified copy of the actual costs, or a good faith estimate of costs where actual costs are not available, signed by the commissioner or the commissioner’s designated representative, shall be prima facie evidence of reasonable costs of investigation and prosecution of the case. The costs shall include the amount of investigative and enforcement costs up to the date of the hearing, including, but not limited to, charges imposed by the Attorney General. (d) The administrative law judge shall make a proposed finding of the amount of reasonable costs of investigation and prosecution of the case when requested pursuant to subdivision (a). The finding of the administrative law judge with regard to costs shall not be reviewable by the commissioner to increase the cost award. The commissioner may reduce or eliminate the cost award, or remand to the administrative law judge where the proposed decision fails to make a finding on costs requested pursuant to subdivision (a). (e) Where an order for recovery of costs is made and timely payment is not made as directed in the commissioner’s decision, the commissioner may enforce the order for repayment in any appropriate court. This right of enforcement shall be in addition to any other rights the commissioner may have as to any licentiate to pay costs. (f) In any action for recovery of costs, proof of the commissioner’s decision shall be conclusive proof of the validity of the order of payment and the terms for payment. (g) (1) Except as provided in paragraph (2), the department shall not renew or reinstate the license of any licensee who has failed to pay all of the costs ordered under this section. (2) The department may, in its discretion, conditionally renew or reinstate for a maximum of one year the license of any licensee who demonstrates financial hardship and who enters into a formal agreement with the department to reimburse the department within that one-year period for the unpaid costs. (h) All costs recovered under this section shall be considered a reimbursement for costs incurred and shall be deposited in the Real Estate Fund to be available, notwithstanding Section 10451, upon appropriation by the Legislature. (i) Nothing in this section shall preclude the department from including the recovery of the costs of investigation and enforcement of a case in any stipulated settlement. (Added by Stats. 2011, Ch. 712, Sec. 6. (SB 706) Effective January 1, 2012.)

Last verified: January 22, 2026

Key Terms

disciplinary proceedingreasonable costsadministrative law judge

Related Statutes

  • § 10100 License Suspension Procedures
  • § 10100.2 License Surrender And Reinstatement
  • § 10100.4 Licensee Settlement Discipline Rules
  • § 10101 Disciplinary Action Time Limits
  • § 10103 License Suspension Jurisdiction

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 10106.
View Official Source