BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1996
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1996 (Hill)
          As Amended  April 14, 2010
          Majority vote 

           BUSINESS & PROFESSIONS     11-0 APPROPRIATIONS      12-1         
           
           ----------------------------------------------------------------- 
          |Ayes:|Hayashi, Emmerson,        |Ayes:|Fuentes, Conway, Ammiano, |
          |     |Conway, Eng,              |     |Coto, Davis, Bonnie       |
          |     |Hernandez, Hill, Ma,      |     |Lowenthal, Hall, Nielsen, |
          |     |Nava, Niello,             |     |Skinner, Solorio,         |
          |     |Ruskin, Smyth             |     |Torlakson, Hill           |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Miller                    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :   Increases the chiropractic license renewal fee from $150  
          to $210, effective July 1, 2011, and between $245 and $295, as  
          determined by the State Board of Chiropractic Examiners (BCE),  
          effective July 1, 2012.  

           FISCAL EFFECT :   According to the Assembly Appropriations Committee  
          analysis, annual increased fee-supported special fund revenues of  
          $1.3 million to support enforcement and administration workload for  
          the Board of Chiropractic Examiners (Board). 

           COMMENTS  :   According to the author's office, "BCE has implemented  
          significant consumer protection changes that are necessary to  
          fulfill its consumer protection mandate.  For example, in 2008, the  
          BCE expanded its enforcement program to include a permanent field  
          investigation and inspection program.  Continued improvements to  
          investigations are very important for consumer protection, but  
          require resources.

          "With these necessary enhancements in the BCE's enforcement program  
          and the increase in costs of doing business, the BCE's current  
          revenue is inadequate to pay for the level of service that is needed  
          to protect consumers.  The BCE expends approximately 70% of its  
          operating budget on enforcement.  If the renewal fee remains at its  
          current level, the BCE's fund will be insolvent in FY 2010-11, and  
          the BCE will be forced to make drastic cuts to its enforcement  
          program."

          The BCE was created on December 21, 1922 by initiative.  Governed by  





                                                                  AB 1996
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          a seven member board appointed by the Governor, BCE is comprised of  
          five licensed doctors of chiropractic and two public members.  BCE  
          regulates the chiropractic profession in California, protecting  
          Californians from licensed and unlicensed individuals who engage in  
          fraudulent, negligent, or incompetent practice.  The BCE oversees  
          approximately 14,000 licensees and 18 chiropractic schools and  
          colleges located throughout the United States and Canada.
                                      
          The BCE's annual budget is funded exclusively by the profession  
          through licensing and other regulatory fees.  The BCE allocates  
          approximately 70% of its total operating budget to enforcement  
          related activities. 

          The BCE has not raised fees since 1991, and though BCE comes in  
          under budget each year, expenditures currently exceed revenue by  
          approximately $1 million.  Expenditures will increase further as the  
          BCE fully implements its newly expanded enforcement program.  

           Analysis Prepared by  :    Sarah Weaver / B.,P. & C.P. / (916)  
          319-3301                                               FN: 0004071