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 Page 2 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. AB 645 Page 3 "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