BILL ANALYSIS
AB 1996
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Date of Hearing: March 23, 2010
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Mary Hayashi, Chair
AB 1996 (Hill) - As Introduced: February 17, 2010
SUBJECT : Chiropractors: license renewal fee.
SUMMARY : Increases the chiropractic license renewal fee from
$150 to between $200 and $350, as determined by the State Board
of Chiropractic Examiners (BCE).
EXISTING LAW :
1)Provides for the licensure and regulation of chiropractors by
BCE. Under the Chiropractic Act (Act), each licensed person
practicing chiropractic is annually required to pay BCE a
renewal fee not exceeding $150, as determined by BCE.
2)Requires statutory authorization to increase license fees.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . 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."
Background . The BCE was created on December 21, 1922 by
initiative. Governed by a seven member board appointed by the
Governor, BCE is comprised of five licensed doctors of
AB 1996
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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.
This bill would increase the renewal fee from $150 to a range
between $200 and $350, as determined by BCE. According to its
executive officer, BCE needs a $75 fee increase to bring revenue
and expenditures into alignment for the immediate future. BCE
is considering implementing a stepped increase until it reaches
sustainable revenue and a prudent reserve.
Opposition . The California Chiropractic Association (CCA)
writes, "The chiropractic profession has been hit especially
hard by this recession because of many compounding factors.
Group health reimbursement rates have gone down since BCE last
raised its rates in 1991, not up. Workers' compensation law
changes in 2004 have resulted in a 70-80% reduction in
chiropractic utilization. Medicare rates will be reduced an
additional 21% by the end of this month unless Congress acts to
stop the fee decrease. CCA members plainly can't afford to have
their relicensure fee increased up to 133% during this
recession?.
"The operating deficit is a result of the expanded enforcement
program that has benefited the profession and the public and is
being used as a model for other licensing boards. Although CCA
understands the need for a fee increase to address the immediate
deficit, we oppose any delegation of legislative authority that
allows the BCE to raise relicensure fees up to $350 per year."
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REGISTERED SUPPORT / OPPOSITION :
Support
Board of Chiropractic Examiners (sponsor)
Opposition
California Chiropractic Association
Analysis Prepared by : Sarah Huchel / B. & P. / (916) 319-3301