BILL ANALYSIS
AB 1145
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ASSEMBLY THIRD READING
AB 1145 (Price)
As Introduced February 27, 2009
Majority vote
BUSINESS & PROFESSIONS 11-0 APPROPRIATIONS 16-1
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|Ayes:|Hayashi, Emmerson, |Ayes:|De Leon, Nielsen, |
| |Conway, Eng, | |Ammiano, |
| |Hernandez, Nava, Niello, | |Charles Calderon, Davis, |
| |John A. Perez, Price, | |Duvall, Fuentes, Hall, |
| |Ruskin, Smyth | |Harkey, Miller, |
| | | |John A. Perez, Price, |
| | | |Skinner, Solorio, |
| | | |Torlakson, Krekorian |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Audra Strickland |
| | | | |
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SUMMARY : Increases the maximum fee for renewal of an architect
license to $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 $200.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, the 2009-10 Budget assumes that the 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 : According to the author's office, "The architect
AB 1145
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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."
CAB 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 Office, if there is
no license renewal fee increase, the Fund will become insolvent
with a $879,000 deficit in fiscal year (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 $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 : Joanna Gin / B. & P. / (916) 319-3301
FN: 0001185