Legislation signed by Governor Arnold
Schwarzenegger revised the Board's existing statute
regarding the reporting of settlements and arbitration
awards. Assembly Bill (AB) 302, Chapter 506 by the Assembly
Committee on Business and Professions, became effective
in October 2005. The measure was sponsored by The American
Institute of Architects, California Council.
Perhaps the most prominent change is
regarding the trigger for reporting. The law now requires
"reports of any civil action judgment, settlement,
arbitration award, or administrative action resulting
in a judgment, settlement, or arbitration award that
is $5,000 or greater against the licensee in any action alleging
fraud, deceit, negligence, incompetence, or recklessness
by the licensee in the practice of architecture."
As such, only settlements that are precipitated by formal
legal action must be reported. Previously, all settlements
were reportable provided they met the other criteria
in the statute.
The Board has communicated with insurance companies
regarding the new language, but architects also continue
to have reporting responsibilities. Reports must be
sent to the Board within 30 days of the architect having
knowledge of the triggering event (e.g., settlement).
Below are links to view the language and obtain a reporting
form.
Business and
Professions Code Sections 5588 - 5588.4
Report
of Settlement or Arbitration Award Form (.pdf)
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