BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
606 (Ducheny)
Hearing Date: 4/27/2009 Amended: 3/31/2009
Consultant: Katie Johnson Policy Vote: B, P & ED 8-1
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BILL SUMMARY: SB 606 would require the Osteopathic Medical
Board of California (OMBC) to assess an additional $25 fee on
each osteopathic physician and surgeon that would apply for
original or reciprocity licensure, or for a biennial renewal
license, and would provide that the collected funds be
transferred to the Medically Underserved Account for Physicians
for the purposes of the Steven M. Thompson Physician Corps Loan
Repayment Program (STLRP). The bill would prohibit the use of
these funds for the Physician Volunteer Program, as specified.
The bill would allow osteopathic physicians and surgeons to be
eligible to apply for the STLRP.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Increased fee ($37.5) ($75)
($81) Special*
revenue
*Medically Underserved Account for Physicians
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STAFF COMMENTS:
Existing law provides for the licensure and regulation of
osteopathic physicians and surgeons by the OMBC and for various
fees on those licenses.
Existing law establishes the STLRP, which provides for the
repayment of educational loans of eligible physicians and
surgeons who practice in a medically underserved area of the
state, as defined. Currently, osteopathic physicians and
surgeons are not eligible for the STLRP.
Existing law establishes the Medically Underserved Account for
Physicians (account) within the Health Professions Education
Fund that is managed by the Health Professions Education
Foundation and the Office of Statewide Health Planning and
Development (OSHPD). The account's funds are continuously
appropriated for the repayment of educational loans. The funds
are also authorized to be used to provide funding for the
Physician Volunteer Program, a registry of physicians who desire
to volunteer in various communities.
This bill would make osteopathic physicians and surgeons
eligible for the STLRP. This bill would also assess an
additional $25 fee on each initial and renewed osteopathic
physician and surgeon license or certificate and would provide
that the additional fee would be deposited monthly into the
Medically Underserved Account for Physicians for the purposes of
the STLRP. Since the funds in the account are continuously
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SB 606 (Ducheny)
appropriated, this bill would make an appropriation by assessing
and expending a new fee.
There are approximately 5,300 licensed osteopathic physicians
and surgeons in the state and about 2,500 renew their licenses
each year. Additionally, approximately 500 osteopathic
physicians and surgeons apply for a new license annually. The
OMBC expects licenses to grow at approximately 500 each year for
the foreseeable future. Thus, the additional $25 fee provided
for in this bill would provide in FY 2009-10, $31,250, FY
2010-11, $75,000, and in FY 2011-2012, $81,250. Since the number
of osteopathic physicians and surgeons is growing by 500
annually, the amount of fee revenue would continue to grow in
the outyears as new doctors enter the profession and biennially
renew their licenses.
This bill would delete the provision that allows the funds in
the Medically Underserved Account for Physicians to be used for
the Physician Volunteer Program. This program is an online
registry of physicians who make themselves available to work in
a volunteer capacity. The program is currently maintained by the
Medical Board of California (MBC) within existing resources.