BILL ANALYSIS
AB 1145
Page 1
Date of Hearing: April 21, 2009
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Mary Hayashi, Chair
AB 1145 ( Price) - As Introduced: February 27, 2009
SUBJECT : Architects: fees.
SUMMARY : Increases the maximum fee for renewal of an architect
license to four hundred dollars ($400).
EXISTING LAW :
1)Provides for the licensure and regulation of architects by the
California Architects Board (CAB).
2)Imposes various fees on licenses and applicants for an
architect license, which are deposited in the CAB Fund (Fund),
a continuously appropriated fund.
3)Provides that the fee for renewing an architect's license may
not exceed two hundred dollars ($200).
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of the bill . According to the author's office, "The
architect licensing fee has not been adjusted for 20 years and
is currently at two hundred dollars ($200) for a two-year
license. After two decades, it has become necessary to increase
the fee in order for the CAB to sustain its current level of
services. According to the CAB, they will not be able to
generate the revenue to maintain current operations beginning in
2010-11. It is the intent of this bill to provide the board
with more flexibility by raising the statutory cap, thereby
allowing the board to raise the fees if it is ever deemed
necessary."
Background . The Board establishes regulations for examination
and licensing of the profession of architecture in California,
which today numbers approximately 22,000 licensed architects and
approximately 11,000 candidates who are in the process of
meeting examination and licensure requirements. According to
data provided by the Department of Consumer Affairs (DCA) Budget
AB 1145
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Office, if there is no license renewal fee increase, the Fund
will become insolvent with a $879,000 deficit in FY 2010-11 that
will grow to approximately $2.05 million in FY 2011-12, and $4.1
million in FY 2012-13. The DCA Budget Office projects if the
Board increases the renewal fee to three hundred fifty dollars
($350) and assumes a 2% growth in expenditures in FY 2010-11,
that it will remain solvent and maintain a positive balance and
reserve in the upcoming years. Assuming a three hundred fifty
dollars ($350) renewal fee, the fund balance will be $587,000 in
FY 2010-11, $1.5 million in FY 2011-12, and $916,000 in FY
2012-13.
Support . According to the Board, "AB 1145 is necessary because
the Board's statutory cap for its license renewal fee is still
at the level at which it was set at in 1989, two hundred dollars
($200). AB 1145 was pursued at the suggestion of the DCA Budget
Office. The Budget Office's projected fund condition shows
insolvency of the Board's fund beginning in FY 2010-11 if
additional revenue is not received. Increases in the cost of
doing business and new mandates, such as disabled access
continuing education (as required by) SB 1608 (Corbett), Chapter
549, Statutes of 2008, put the Board in the position of needing
to increase is fees. This bill will give the Board authority to
raise the fee by increasing the statutory cap of the fee to four
hundred dollars ($400). The Board will only increase the fee to
(a) level necessary to maintain solvency pursuant to DCA's
recommendation. This proposed statutory fee cap level will
enable the Board to keep its fund solvent and maintain its
valuable services to consumers, candidates for licensure, and
architects."
According to the AIACC, "The architectural profession is
licensed for the sole purpose of protecting the HSW of the
public, and the CAB has the responsibility to license, regulate,
and discipline architects for the benefit of the public.
Because the state restricts who can provide architectural
services, it is the obligation of California licensed architects
to completely fund the operation of the CAB. The CAB receives
no general fund support. The stewardship, smart planning, and
strong management of the CAB have allowed the architect
licensing fee to remain unchanged for 20 years. The two hundred
dollars ($200) fee adopted in 1989 would be $342 today if
adjusted for the increase in the cost of living? The architect
licensing fee statutory cap needs to be changed to allow the CAB
to raise the licensing fee so that it can sustain its current
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and needed level of service to the public."
Based on the data provided by the DCA Budget Office, if CAB
increases the architect license fee to three hundred fifty
dollars ($350), the Fund will remain solvent and maintain a
positive balance and reserve in the upcoming years. Should the
maximum fee for renewal of an architect license be capped at
three hundred fifty dollars ($350) instead of four hundred
dollars ($400)?
Prior Legislation . SB 1608 (Corbett), Chapter 549, Statutes of
2008, requires, as a condition of license renewal, that an
architect complete coursework regarding disability access
requirements, as specified, and certify to the Board, as part of
the license renewal process, completion of the coursework prior
to renewing their license.
REGISTERED SUPPORT / OPPOSITION :
Support
American Institute of Architects, California Council (sponsor)
California Architects Board (Board) (sponsor)
Opposition
None on file.
Analysis Prepared by : Joanna Gin / B. & P. / (916) 319-3301