BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 606
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          SENATE THIRD READING
          SB 606 (Ducheny)
          As Amended June 18, 2009
          Majority vote 

           SENATE VOTE  :34-1  
           
           BUSINESS & PROFESSIONS  11-0    APPROPRIATIONS      16-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Hayashi, Emmerson,        |Ayes:|De Leon, Conway, Ammiano, |
          |     |Conway, Eng,              |     |                          |
          |     |Hernandez, Nava, Niello,  |     |Charles Calderon, Coto,   |
          |     |John A. Perez, Ruskin,    |     |Davis, Duvall, Fuentes,   |
          |     |Smyth, Monning            |     |Hall, Harkey,             |
          |     |                          |     |John A. Perez, Skinner,   |
          |     |                          |     |Solorio, Audra            |
          |     |                          |     |Strickland, Torlakson,    |
          |     |                          |     |Hill                      |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires the Osteopathic Medical Board of California  
          (OMBC) to charge a fee to osteopathic physicians and surgeons  
          (D.O.s) for the Steven M. Thompson Physician Corps Loan  
          Repayment Program (STLRP), and allows them to participate in the  
          STLRP.  Specifically,  this bill  :   

          1)Requires the OMBC to charge $25 in addition to the license fee  
            for the STLRP.

          2)Requires the OMBC to transfer all funds collected pursuant to  
            this bill, on a monthly basis, to the Medically Underserved  
            Account for Physicians (MUAP) for the STLRP, and prohibits the  
            funds collected in the MUAP from being used to fund the  
            Physician Volunteer Program (PVP). 

          3)Includes D.O.s in the Health Professions Education Foundation  
            (HPEF), which includes the STLRP and PVP.

           EXISTING LAW  : 

          1)Establishes the MUAP within the HPEF to provide funding for  
            the STLRP, which provides loan repayment assistance to  








                                                                  SB 606
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            physicians and surgeons who agree to practice in a medically  
            underserved community.

          2)Establishes the Osteopathic Act of 1922, by voter initiative,  
            to regulate the practice of osteopathic medicine.  Establishes  
            the OMBC to license, regulate and discipline D.O.s.  Specifies  
            that the policy of the state of California is that holders of  
            medical doctor (M.D.) degrees and D.O. degrees are to be  
            accorded equal professional status and privileges as licensed  
            physicians and surgeons.

          3)Establishes a schedule of fees for D.O.s, including fees for  
            certificates and renewal of license.  Requires the OMBC to  
            assess up to $400 for each applicant for an original or  
            reciprocity certificates, and up to $400 for a biennial  
            license fee.  

          4)Establishes the Medical Board of California (MBC) to license,  
            regulate, and discipline physicians and surgeons, and  
            specifies that the protection of the public is the highest  
            priority of the MBC.

          5)Requires the MBC to assess a $25 licensure fee on physicians  
            and surgeons for the purpose of the STLRP.

           FISCAL EFFECT :  According to the Assembly Appropriations  
          Committee, annual increased special fund fee collections from  
          OMBC licensees to support the loan program of $50,000 to  
          $70,000.

           COMMENTS  :  The Osteopathic Initiative Act of 1922 created the  
          OMBC to license and regulate the practice of osteopathic  
          medicine in California.  Existing law accords holders of medical  
          degrees and osteopathic degrees equal professional status and  
          privileges.  However, according to the OPMC's website, D.O.s are  
          slightly different from M.D.s in that they put special emphasis  
          on the role of the bones, muscles and joints in the healthy  
          functioning of the human body.  D.O.s are physicians who may be  
          certified to specialize in family medicine,  
          obstetrics/gynecology, pediatrics, surgery, internal medicine,  
          and all other medical specialties and subspecialties.   
          Currently, there are over 5,000 D.O.s licensed and regulated by  
          the OMBC. 









                                                                  SB 606
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          The STLRP is a grant program for licensed physicians and  
          surgeons that offers up to $105,000 to repay educational debt in  
          exchange for a three-year commitment to practice in a medically  
          underserved area (MUA) of the state.  

          According to the United States Health Resources and Services  
          Administration (HRSA), MUAs and medically underserved  
          populations are defined by their shortages of primary medical  
          care, dental or mental health providers.  They may be designated  
          based on geographic (a county or service area) or demographic  
          (low income, Medicaid-eligible populations, cultural and/or  
          linguistic access barriers to primary medical care services)  
          criteria.  According to HRSA, there are over 160 MUAs in 47  
          California counties.  

          According to information supplied by the author's office,  
          practice opportunities in underserved communities often provide  
          less compensation for new doctors than other areas of the state.  
          Unfortunately, financial considerations make it difficult for  
          young physicians repaying medical student loans to practice in  
          these areas.  Twenty-five percent of medical students have debt  
          exceeding $150,000, and many physicians finish their residency  
          programs with debt of over $350,000.

          STLRP recipients work in a variety of underserved areas  
          throughout the state; eligible practice settings include  
          community health centers, migrant health centers, and public  
          housing centers. Current law requires that most participants be  
          selected from the specialty areas of family practice, internal  
          medicine, pediatrics, and obstetrics/gynecology, however, up to  
          20% of the participants may be selected from other specialties.   
          Recipients must also speak at least one Medi-Cal threshold  
          language, in addition to English.


          Analysis Prepared by  :    Sarah Huchel / B. & P. / (916) 319-3301  

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