BILL ANALYSIS
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|Hearing Date:April 30, 2001 |Bill No:SB |
| |929 |
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SENATE COMMITTEE ON BUSINESS AND PROFESSIONS
Senator Liz Figueroa, Chair
Bill No: SB 929 Author:Machado
As Amended:April 19, 2001 Fiscal:Yes
SUBJECT: Contractors: Construction Management Education
Account.
SUMMARY: Authorizes the Contractors State License Board to
transfer revenue received from other funding sources into
the Construction Education Account.
Existing law, the Contractors State License Law (Law):
1)Establishes the Contractors State License Board (CSLB) as
responsible for licensing and regulating contractors.
2)Establishes the Construction Management Education Account
(CMEA) for the purpose of promoting construction
management education.
3)Allows contractors to voluntarily contribute $25 upon
licensure renewal which is deposited into the CMEA.
4)Authorizes the CSLB to award grants from the CMEA to
qualified post-secondary educational institutions.
5)States legislative intent which emphasizes the need for
construction management education programs.
This bill:
1)Authorizes the CSLB to transfer revenue from other
funding sources including but not limited to donations,
penalties, settlements, and gifts to the Construction
Education Account (CEA).
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2)Deems references in law to the Construction Management
Education Account to be references to the Construction
Education Account. Additionally, deletes references to
"management" in the sections affected by this bill.
FISCAL EFFECT: Unknown
COMMENTS:
1.Purpose. The sponsor believes that there is an
ever-increasing need for continuing education for
contractors in an advancing system. Additionally, the
sponsor states that currently there is little or no
funding for the Construction
Management Education Fund, and this bill will provide
another source of funding for construction education
programs at colleges and universities throughout the
state.
2.Background. The Construction Management Education
Account was established in 1992 pursuant to AB 2158
(Bentley), Chapter 1158, Statutes of 1991. The CMEA,
however, has not grown at the rate that was originally
anticipated by the enabling legislation. Since its
inception, the Construction Management Education Account
has relied solely on voluntary contributions which has
not raised sufficient funding for the program. The fund
balance at the end of March 2001 was $279,000.
3.No Grants Have Been Issued from the CMEA. Apparently,
due to the number of qualifying institutions and the
amount of grants, the CSLB has determined that the
balance of the fund needs to reach $1,000,000 before
grants should be issued. As a result, to date, no grants
have been issued.
4.Bill Takes Out References to Management. The latest set
of amendments deletes references to "management" in the
sections affected by this bill (B & P Code Sections
7139.1 and 7139.2). Additionally, references to
management starting with the title of the article and
throughout the related code (B & P Code Sections 7139 -
7139.10) should be amended to reflect the sponsor's
intent of relating the account to construction education
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generally.
It is unclear, however, if the deletion of the word
"management" in law will change the fact that the money
will go to construction management programs in
institutions of higher learning. The sponsor should
address this issue in committee.
5.Bill Opens the Door for Additional Funding But Does Not
Ensure Money Will Flow There. While giving the CSLB the
authority to transfer revenue to the account is helpful,
it will not create permanent funding for the program.
Also, it is not clear where the funds would come from and
to what extent CSLB programs or its fund would be
affected.
This account has been sitting unused for the past nine
years. Through this bill, the sponsor has the
opportunity to make the CMEA more useful and workable to
aid in the funding of construction education programs in
California. The sponsor should commit to working with
the CSLB to do so.
6.Arguments in Support. The sponsor asserts that while the
funding of the account by voluntary contribution is
well-intentioned, it has not produced the needed funds to
support the CMEA. It is obvious that additional
assistance is necessary in order for the CMEA to be
successful in carrying out its intended purpose.
SUPPORT AND OPPOSITION:
Support:
Associated General Contractors of California (sponsor)
Construction Employers' Association (CEA)
Opposition:
None on file
Consultant:Robin M. Hartley