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