| TO: | Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB2271 by Truitt (Relating to the regulation of certain chiropractic clinics; providing administrative and criminal penalties.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2010 | $0 |
| 2011 | $0 |
| 2012 | $0 |
| 2013 | $0 |
| 2014 | $0 |
| Fiscal Year | Probable Savings/(Cost) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from General Revenue Fund 1 |
Change in Number of State Employees from FY 2009 |
|---|---|---|---|
| 2010 | ($179,498) | $179,498 | 2.0 |
| 2011 | ($155,498) | $155,498 | 2.0 |
| 2012 | ($155,498) | $155,498 | 2.0 |
| 2013 | ($155,498) | $155,498 | 2.0 |
| 2014 | ($155,498) | $155,498 | 2.0 |
The bill would require each controlling person of a non-doctor-of-chiropractic-owned chiropractic clinic to obtain a license from the Texas Board of Chiropractic Examiners. The bill would establish the definition of controlling person and the terms of eligibility for a license. The bill would require the Texas Department of Insurance, the division of workers' compensation of the Texas Department of Insurance, and the Attorney General's Office to assist in the implementation of the provisions of the bill and to provide information to the board on request.
The bill would require the Board of Chiropractic Examiners to adopt rules to implement the provisions of the bill. The bill would authorize the Board to collect fees to cover costs. The Board would be required to adopt rules by November 1, 2009.
The bill would take effect September 1, 2009. The license requirements and administrative and criminal penalties would take effect January 1, 2010.
Based on information provided by the Office of the Attorney General and the Texas Department of Insurance, it is assumed that any additional work resulting from the passage of the bill could be reasonably absorbed within current resources.
The Board of Chiropractic Examiners anticipates that the license requirements of the bill would add an additional 750 to 1,000 licensees to the population it regulates. The Board currently registers Chiropractic clinics, and approximately 400 of the 3,400 registered clinics are owned by individuals that are not license as doctors of chiropractic in Texas. Many of these clinics have multiple individuals who would qualify as a "controlling person" under the definition established in the bill.
Based on information provided by the Board of Chiropractic Examiners, it is assumed that an additional 2.0 additional FTEs would be needed to license and regulate the new population of clinic owners: 1.0 attorney and 1.0 program manager. The agency would require expertise in understanding financial statements, articles of incorporation, bylaws, and various legal questions concerning qualifications of "controlling persons". It is also assumed that the Board would need to modify the agency's database to track applications and to issue and renew licenses for non-DC clinic owners and their clinics. In addition, this analysis considers that the board would need to acquire new space in the Hobby Building or remodel current office space in order to house the additional 2.0 FTEs.
This analysis assumes that any increased costs to the agency, which is statutorily required to generate sufficient revenue to cover its costs of operation, would be offset by an increase in fee generated revenue.
| Source Agencies: | 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 454 Department of Insurance, 508 Board of Chiropractic Examiners
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| LBB Staff: | JOB, CL, MW, ES
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