BILL NUMBER: AB 589	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Perea

                        FEBRUARY 16, 2011

   An act to amend Section 128555 of the Health and Safety Code,
relating to health professions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 589, as introduced, Perea. Physicians and surgeons: loan
repayment.
   Existing law establishes the Medically Underserved Account for
Physicians within the Health Professions Education Fund that is
managed by the Health Professions Education Foundation and the Office
of Statewide Health Planning and Development. Under existing law,
the primary purpose of the account is to fund the Steven M. Thompson
Physician Corps Loan Repayment Program, which provides for the
repayment of prescribed educational loans, not to exceed $105,000,
obtained by a physician and surgeon who practices in a medically
underserved area of the state. Under existing law, specified funds
placed in the account for those purposes are continuously
appropriated for the repayment of loans and may be used for any other
authorized purpose.
   This bill would instead provide for an unspecified amount of loan
repayment.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 128555 of the Health and Safety Code is amended
to read:
   128555.  (a) The Medically Underserved Account for Physicians is
hereby established within the Health Professions Education Fund. The
primary purpose of this account is to provide funding for the ongoing
operations of the Steven M. Thompson Physician Corps Loan Repayment
Program provided for under this article. This account also may be
used to provide funding for the Physician Volunteer Program provided
for under this article.
   (b) All moneys in the Medically Underserved Account contained
within the Contingent Fund of the Medical Board of California shall
be transferred to the Medically Underserved Account for Physicians on
July 1, 2006.
   (c) Funds in the account shall be used to repay loans as follows
per agreements made with physicians:
   (1) Funds paid out for loan repayment may have a funding match
from foundations or other private sources.
   (2) Loan repayments may not exceed  one hundred five
thousand   _____  dollars ($  105,000
  _____  ) per individual licensed physician.
   (3) Loan repayments may not exceed the amount of the educational
loans incurred by the physician participant.
   (d)  Notwithstanding Section 11105 of the Government Code,
effective   Effective  January 1, 2006, the
foundation may seek and receive matching funds from foundations and
private sources to be placed in the account. "Matching funds" shall
not be construed to be limited to a dollar-for-dollar match of funds.

   (e) Funds placed in the account for purposes of this article,
including funds received pursuant to subdivision (d), are,
notwithstanding Section 13340 of the Government Code, continuously
appropriated for the repayment of loans. This subdivision shall not
apply to funds placed in the account pursuant to Section 1341.45.
   (f) The account shall also be used to pay for the cost of
administering the program and for any other purpose authorized by
this article. The costs for administration of the program may be up
to 5 percent of the total state appropriation for the program and
shall be subject to review and approval annually through the state
budget process. This limitation shall only apply to the state
appropriation for the program.
   (g) The office and the foundation shall manage the account
established by this section prudently in accordance with the other
provisions of law.