BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1145
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                 AB 1145 (Price) - As Introduced:  February 27, 2009 

          Policy Committee:                              Business and  
          Professions  Vote:                            11 - 0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill doubles the maximum fee for the renewal of an  
          architect's license $200 to $400.

           FISCAL EFFECT 

          The 2009-10 budget assumes the California Architects Board Fund  
          will receive $2.5 million from licensing renewals.  This  
          legislation would double that amount to $5 million per year in  
          licensing renewal revenue. 

           COMMENTS  

           1)Purpose  . The intent of this bill is to adjust the architect's  
            licensing fee for the first time in 20 years in order to  
            ensure that the licensing revenue is sufficient to cover the  
            costs of the California Architects Board (CAB).  

           2)Background  . The CAB establishes regulations for the  
            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 office, if there is no license renewal  
            fee increase, the California Architects Board 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 CAB increases the  








                                                                  AB 1145
                                                                  Page  2

            renewal fee to $350 and assumes a 2% growth in expenditures in  
            FY 2010-11, it will remain solvent and maintain a positive  
            balance and reserve in the upcoming years.  Assuming a $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.


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081