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
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          ____
          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.
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          ____
                            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
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          ____

          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.