BILL ANALYSIS Ó
SB 679
Page 1
Date of Hearing: August 14, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 679 (Berryhill) - As Amended: June 12, 2013
Policy Committee: JudiciaryVote:10 -
0
Business and Professions 11 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill revises the monetary threshold amounts above which a
licensed engineer or land surveyor must report a settlement,
judgment, or arbitration made against him or her to the Board
for Professional Engineers, Land Surveyors, and Geologists
(Board). Specifically, this bill:
1)Revises the minimum amounts for which a licensed engineer or
land surveyor must report to the Board a settlement, judgment,
or arbitration award arising from a civil or administrative
action alleging fraud, deceit, misrepresentation, breach or
violation of contract, negligence, incompetence, or
recklessness, as follows:
a) For settlements, from $50,000 or more, to greater than
$50,000.
b) For judgment and binding arbitration awards, from
$50,000 or more, to $25,000 or greater.
2)Revises the threshold from $50,000 or greater, to greater than
$50,000 for reporting a judgment, settlement, or arbitration
award to the Board by an insurer who provides professional
liability insurance to, or a state or local government agency
that self-insures, a licensed engineer or land surveyor for an
award resulting from an allegation of fraud, deceit,
misrepresentation, breach or violation of contract,
negligence, incompetence, or recklessness.
FISCAL EFFECT
SB 679
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Costs associated with this legislation should be minor and
absorbable within existing resources.
COMMENTS
1)Purpose . This bill, sponsored by the California Geotechnical
Engineering Association, would lower the minimum reporting
amount for judgments and binding arbitration awards for
unprofessional conduct against a licensed engineer or land
surveyor from $50,000 or more to $25,000 or more, thereby
theoretically increasing the reporting of judgments and
arbitration awards. Conversely, it would also change the
reporting threshold for settlements from $50,000 or more to
greater than $50,000 in order to prevent $50,000 settlements
from being reported to the Board. The author contends that
this change would help avoid unnecessary administrative review
of settlements by the Board.
2)Recent Settlement Data . From 2008-2012, licensees reported
112 actions to the Board in which a settlement, judgment, or
arbitration award involving the licensee was $50,000 or more.
The overwhelming majority of reported actions were
settlements, out of which only five were exactly $50,000. One
of these resulted in a formal accusation by the Board to
revoke or suspend the license. All other settlements were
significantly greater than $50,000 and the reporting of these
settlements to the Board would be unaffected by this bill. Of
the 112 reports to the Board mentioned above, only two were
arbitration awards.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081