BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 645
                                                                  Page  1

          Date of Hearing:   April 14, 2009

                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
                                 Mary Hayashi, Chair
                 AB 645 (Niello) - As Introduced:  February 25, 2009
           
          SUBJECT  :   Professional engineers and land surveyors: licensing.

           SUMMARY  :   Extends the licensure renewal period for professional  
          engineers and land surveyors and doubles the maximum amounts of  
          the license application fees.  Specifically,  this bill  :  

          1)Requires licenses issued by the Board of Professional  
            Engineers and Land Surveyors (Board) to be renewed every four  
            years instead of every two years. 

          2)Increases the maximum fee for filing an application for  
            licensure as a professional engineer or land surveyor from  
            $400 to $800.

          3)Increases the maximum fee for filing an application for  
            certification as an engineer-in-training or a land  
            surveyor-in-training from $100 to $200. 

           EXISTING LAW  :

          1)Provides for the licensure and regulation of professional  
            engineers and land surveyors by the Board, and requires  
            licenses issued by the Board to be renewed every two years. 

          2)Authorizes the Board to fix license application fees, up to  
            specified amounts, and provides for other related fees, the  
            amounts of which are based on the amount of the application  
            fees. 

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office,  
          "Current statute requires professional engineers to be  
          re-licensed every two years.  The extended length of today's  
          project delivery timelines means that many design professionals  
          and surveyors must be re-licensed midstream during the project  
          approval process.  Re-licensing in the middle of a project  








                                                                  AB 645
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          requires the duplication, re-stamping and re-certification of  
          hundreds or thousands of pages of design documents and  
          subdivision maps, among others.  This is an unnecessary  
          duplication that adds time and expense to the delivery of  
          projects in California." 

          Background  .  Prior to 2003, the Board renewed professional  
          licenses on a four year basis.  In 2003 the Board amended its  
          regulations to require a two year renewal period for  
          professional licenses and increased the associated fees in  
          accordance with SB 136 (Figueroa), Chapter 495, Statutes of  
          2001.  The Assembly Business and Professions Committee's 2001  
          analysis of SB 136 suggests that bill's primary purpose was to  
          generate additional revenue stating, "According to the author,  
          there is a critical need for the fee increase contained in this  
          bill pertaining to the Board of Professional Engineers and Land  
          Surveyors.  According to BPELS, the fee increases will prevent  
          BPELS from accumulating a $1.7 million deficit by fiscal year  
          2003-04.  By increasing the licensing and certification fees,  
          BPELS will be able to continue to support current examination  
          processes and enforcement programs."  

          Because this bill doubles both the applications fees and the  
          renewal period, it does not increase the overall cost of  
          professional engineering licensure.  However, doubling the  
          application fee does potentially double other related fees.  The  
          maximum fees for a temporary authorization for a professional  
          engineer, a retired license, and a delinquent licensure renewal  
          are all defined as a percentage of the current application fee.   


           Support  .  The bill's sponsor, the American Council of  
          Engineering Companies of California (ACEC California), states,  
          "ACEC California has been receiving feedback from our members  
          that the shortened renewal period, coupled with longer timelines  
          in both private and public sector project delivery, are  
          resulting in situations where licensure renewal occurs midstream  
          in the project lifecycle.

          "Under the current conditions, licenses expire prior to the  
          completion of many projects.  Many times plans have to be  
          reprinted, signed and sealed solely due to license expirations.   
          This is both time consuming and costly.  A four year licensure  
          renewal period would eliminate a tremendous amount of this  
          avoidable redundancy.








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          "It is our intention to provide statutory changes that will  
          extend the licensure renewal period back to four years, and  
          enable the Board to commensurately double the licensure renewal  
          fee.  It is also our intention to ensure that there is no loss  
          of revenue to the Board as a result of this action, and that  
          there is no increase in the cost of professional renewal on the  
          professional community." 

           Previous Legislation  .  SB 136 (Figueroa), Chapter 495, Statutes  
          of 2001, increased the application-filing fee for registration  
          and application for authority level designation as a  
          professional engineer to $400 every two years (instead of $175  
          every four years), increased the fee for certification as an  
          engineer-in-training to be not more than $100 (instead of $60),  
          increased the application-filing fee for licensure as a land  
          surveyor to be not more than $400 (instead of $175), and  
          increased the fee for certification as a land  
          surveyor-in-training to be not more than $100 (instead of $60). 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Council of Engineering Companies of California  
          (sponsor)

           Opposition 
           
          None on file. 
           
          Analysis Prepared by  :    Whitney Clark / B. & P. / (916)  
          319-3301