BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 1996 (Hill) Hearing Date: 7/15/2010 Amended: 6/1/2010 Consultant: Bob Franzoia Policy Vote: B,P&ED 5-2 _________________________________________________________________ ____ BILL SUMMARY: AB 1996 would require a licensed chiropractor to pay an annual renewal fee of $250. By increasing the amount deposited in the State Board of Chiropractic Examiners' Fund, the bill would make an appropriation. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2010-11 2011-12 2012-13 Fund License renewal fee increase Up to an estimated ($1,330) annually Special* (revenue) * Chiropractic Examiners' Fund _________________________________________________________________ ____ STAFF COMMENTS: The board regulates over 14,000 licensed chiropractors with an annual budget of $3,627,000 (program expenditures/state operations in 2010-11). This analysis assumes a five percent reduction in the number of renewals as a result of the higher fee. The current renewal fee, which was last revised in 1991, is not to exceed $150. At the current level, the Chiropractic Examiner's Fund, which is the source of more than 88 percent of the board's operating revenue ($2,045,000 of $2,319,000 in 2010-11), will have less than one month of funding in reserve in 2011-12 and be insolvent in 2012-13 by a projected $1,292,000, increasing to $2,851,000 in 2013-14 and $4,487,000 in 2014-15. These estimates are based on September 2009 data and assume expenditure growth of two percent beginning 2011-12.