BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 1996
          Author:   Hill (D)
          Amended:  6/1/10 in Senate
          Vote:     21

           
           SENATE BUSINESS, PROF. & ECON. DEVELOP. COMM.  :  5-2,  
            6/28/10
          AYES:  Negrete McLeod, Calderon, Corbett, Florez, Yee
          NOES:  Aanestad, Correa
          NO VOTE RECORDED:  Wyland, Walters

           SENATE APPROPRIATIONS COMMITTEE  :  7-1, 7/15/10
          AYES:  Kehoe, Corbett, Emmerson, Leno, Price, Wolk, Yee
          NOES:  Walters
          NO VOTE RECORDED:  Alquist, Wyland

           ASSEMBLY FLOOR  :  64-8, 05/06/10 - See last page for vote


           SUBJECT  :    Chiropractors:  license renewal fee

           SOURCE  :     State Board of Chiropractic Examiners


           DIGEST  :    This bill amends the Chiropractic Initiative Act  
          of California by increasing the license renewal fees of  
          chiropractors from $150 to $250.

           ANALYSIS  :    Existing law establishes the Chiropractic  
          Initiative Act of California, approved by voters on  
          November 7, 1922, and became effective on December 21,  
          1922.  Establishes, under the Initiative Act, the State  
                                                           CONTINUED





                                                               AB 1996
                                                                Page  
          2

          Board of Chiropractic Examiners (BCE) to license and  
          regulate the chiropractic practice, and prescribes the  
          licensing and renewal fees for chiropractors.  

          This bill amends the Initiative Act by increasing the  
          license renewal fees of chiropractors from $150 to $250.

           Background
           
          In 1922, California voters approved the Initiative Act,  
          described as an act prescribing the terms upon which  
          licensees may be issued to practitioners of chiropractic,  
          creating the State Board of Chiropractic Examiners and  
          declaring its powers and duties, prescribing penalties for  
          violation hereof, and repealing all acts and parts of acts  
          inconsistent therewith.  Among other provisions, the  
          Initiative Act provides that each applicant must pay an  
          initial licensure fee of not more than $100, as determined  
          by the board.  Additionally, a licensee must pay a renewal  
          fee annually of not more than $150 as determined by the  
          board.  The Initiative Act also authorized the Legislature  
          to fix the amounts of the fees payable by applicants and  
          licensees.

          The BCE currently regulates over 14,000 licensed  
          chiropractors in California.  According to the BCE, its  
          annual budget is $3.4 million, funded exclusively by the  
          profession through licensing fees and other regulatory  
          fees.  

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee: 

                          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







                                                               AB 1996
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           SUPPORT  :   (Verified  7/15/10)

          State Board of Chiropractic Examiners (source) 
          International Chiropractors Association


           ARGUMENTS IN SUPPORT  :    According to State Board of  
          Chiropractic Examiners, 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.  

          BCE points out that it expends approximately 70 percent 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 it will be forced to make  
          drastic cuts to its enforcement program.  The BCE points  
          out that it has not raised renewal fees since 1991, and  
          with no increase in revenue for two decades, it was only a  
          matter of time until expenditures outpaced the funding  
          necessary for the BCE to maintain a balance in its reserve  
          and keep its funds solvent.  


           ASSEMBLY FLOOR  :  
          AYES: Adams, Ammiano, Arambula, Beall, Bill Berryhill,  
            Blakeslee, Blumenfield, Bradford, Brownley, Buchanan,  
            Caballero, Charles Calderon, Carter, Chesbro, Conway,  
            Cook, Coto, Davis, De La Torre, De Leon, Emmerson, Eng,  
            Evans, Feuer, Fletcher, Fong, Fuentes, Fuller, Furutani,  
            Galgiani, Garrick, Hall, Hayashi, Hernandez, Hill, Huber,  
            Huffman, Jones, Lieu, Bonnie Lowenthal, Ma, Monning,  
            Nava, Nestande, Niello, Nielsen, Norby, V. Manuel Perez,  
            Portantino, Ruskin, Salas, Saldana, Silva, Skinner,  
            Smyth, Solorio, Swanson, Torlakson, Torres, Torrico,  
            Tran, Villines, Yamada, John A. Perez







                                                               AB 1996
                                                                Page  
          4

          NOES: Anderson, Tom Berryhill, Gaines, Harkey, Jeffries,  
            Knight, Miller, Audra Strickland
          NO VOTE RECORDED: Bass, Block, DeVore, Gilmore, Hagman,  
            Logue, Mendoza


          JA:nl  7/28/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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