Settlement Requirement

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 exceeds $5,000 against the licensee in any action alleging fraud, deceit, negligence, incompetence, or recklessness by the licensee in the practice of architecture." 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.