BILL ANALYSIS
AB 1996
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Date of Hearing: April 13, 2010
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 1996 (Hill) - As Amended: April 7, 2010
SUBJECT : Chiropractors: license renewal fee.
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.
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
AB 1996
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initiative. Governed by 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.
This bill 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.
This bill was heard in a prior version in this committee on
March 23, 2010. The previous version authorized BCE to raise
renewal fees to between $200 and $350. The maximum increase
was opposed by the California Chiropractic Association (CCA),
and this version represents the compromise.
Support . "The ICAC [International Chiropractors Association of
California] and its members feel that the additional monies will
provide BCE with the resources to better enforce the laws in
relation to our profession, and will help the BCE perform an
even better job of protecting the consumers of our great state."
Opposition . 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."
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REGISTERED SUPPORT / OPPOSITION :
Support
Board of Chiropractic Examiners (sponsor)
International Chiropractors Association of California
Opposition
California Chiropractic Association
Analysis Prepared by : Sarah Weaver / B.,P. & C.P. / (916)
319-3301