BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 606
                                                                  Page  1

          Date of Hearing:   August 19, 2009 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   SB 606 (Ducheny) - As Amended:  June 18, 2009  

          Policy Committee:                              Business &  
          Professions  Vote:                            11-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill establishes a $25 fee to be charged to licensees of  
          the Osteopathic Medical Board of California (OMBC), requires the  
          special fund revenues generated to be used to support the  
          Stephen M. Thompson Loan Repayment Program (loan program), and  
          allows OMBC licensees to participate in the loan program. 

           FISCAL EFFECT  

          Annual increased special fund fee collections from OMBC  
          licensees to support the loan program of $50,000 to $70,000. 

           COMMENTS  

           1)Rationale  . This bill builds on recent efforts to bring  
            financial support to the Stephen M. Thompson Loan Repayment  
            Program by adding a $25 fee to the annual licensure process  
            for osteopathic physicians. The training of osteopathic  
            physicians is similar to the training of physicians under the  
            jurisdiction of the Medical Board of California (MBC).  
            Osteopathic physicians rely on conventional methods of  
            diagnosis and treatment and place emphasis on body mechanics  
            as the foundation to good health. 
           
           2)The Thompson Loan Repayment Program  .  AB 982 (Firebaugh),  
            Chapter 1131, Statutes of 2002, created the Physician Corps  
            Loan Repayment Program.  AB 1403 (Nunez), Chapter 367,  
            Statutes of 2004, renamed the California Physician Corps Loan  
            Repayment Program as the Thompson Program.  The loan program  
            repays up to $105,000 in government or commercial educational  
            loans for expenses incurred for undergraduate education and  








                                                                  SB 606
                                                                  Page  2

            graduate medical education for physicians who agree to  
            practice in medically underserved areas.  Physicians in the  
            loan repayment program must serve three years and priority  
            consideration is given to applicants who meet the cultural and  
            linguistic needs of a particular area.  

           3)Thompson Loan Funding History  . This bill is part of a  
            continuing effort to increase the support dedicated to  
            physician loan repayment under the Thompson Program. Initial  
            state funding for the program of $3.4 million came from the  
            MBC Contingent Fund.  From 2003-04 to 2007-08, the program  
            received $983,000 in private donations and grants.  SB 1379  
            (Ducheny), Chapter 607, Statutes of 2008 requires $1 million  
            of annual health plan fines to be shifted from the Department  
            of Managed Health Care (DMHC) administrative budget to the  
            Thompson Loan Program.  AB 2439 (De La Torre), Chapter 640,  
            Statutes of 2008, requires the MBC to assess a $25 fee for the  
            initial license and license renewal of a physician or surgeon  
            to support the Thompson Loan Program. An annual $1.6 million  
            is expected from AB 2439 fees to support the loan program. 


           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081