BILL NUMBER: AB 589 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 11, 2011
INTRODUCED BY Assembly Member Perea
FEBRUARY 16, 2011
An act to amend Section 128555 of the Health and Safety
Code, An act to amend Section 1341.45 of, and to add
Article 6 (commencing with Section 128560) to Chapter 5 of Part 3 of
Division 107 of the Health and Safety Code ,
relating to health professions.
LEGISLATIVE COUNSEL'S DIGEST
AB 589, as amended, Perea. Physicians and surgeons: loan
repayment. Medical school scholarships.
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.
Existing law provides for the licensing and regulation of health
care service plans by the Department of Managed Health Care and
imposes certain requirements on health care service plans. Existing
law imposes various fines and administrative penalties for certain
violations of these provisions that are deposited in the Managed Care
Administrative Fines and Penalties Fund. Existing law requires the
first $1,000,000 in the fund to be transferred each year to the
Medically Underserved Account for Physicians for the purposes of the
Steven M. Thompson Physician Corps Loan Repayment Program. Existing
law requires all remaining funds to be transferred each year to the
Major Risk Medical Insurance Fund for purposes of the Major Risk
Medical Insurance Program.
This bill would establish within the Health Professions Education
Foundation the Steven M. Thompson Medical School Scholarship Program
(STMSSP) managed by the foundation and the Office of Statewide Health
Planning and Development to promote the education of medical doctors
and doctors of osteopathy, as specified. This bill would provide up
to $105,000 in scholarships to selected participants who agree in
writing prior to entering an accredited medical or osteopathic school
to serve in an eligible setting.
This bill would establish the Steven M. Thompson Medical School
Scholarship Account within the Health Professions Education Fund to
fund the STMSSP. This bill, beginning January 1, 2014, would require
all remaining funds after the first $1,000,000 to be transferred each
year from the Managed Care Administrative Fines and Penalties Fund
to the account, for purposes of the STMSSP, upon appropriation by the
Legislature.
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 1341.45 of the
Health and Safety Code is amended to read:
1341.45. (a) There is hereby created in the State Treasury the
Managed Care Administrative Fines and Penalties Fund.
(b) The fines and administrative penalties collected pursuant to
this chapter, on and after the operative date of this section, shall
be deposited into the Managed Care Administrative Fines and Penalties
Fund.
(c) The fines and administrative penalties deposited into the
Managed Care Administrative Fines and Penalties Fund shall be
transferred by the department, beginning September 1, 2009, and
annually thereafter, as follows:
(1) The first one million dollars ($1,000,000) shall be
transferred to the Medically Underserved Account for Physicians
within the Health Professions Education Fund and shall, upon
appropriation by the Legislature, be used for the purposes of the
Steven M. Thompson Physician Corps Loan Repayment Program, as
specified in Article 5 (commencing with Section 128550) or Chapter 5
of Part 3 of Division 107 and, notwithstanding Section 128555, shall
not be used to provide funding for the Physician Volunteer Program.
(2) Any (A) Prior
to January 1, 2014, any amount over the first one million
dollars ($1,000,000), including accrued interest, in the fund shall
be transferred to the Major Risk Medical Insurance Fund created
pursuant to Section 12739 of the Insurance Code and shall, upon
appropriation by the Legislature, be used for the Major Risk Medical
Insurance Program for the purposes specified in Section 12739.1 of
the Insurance Code.
(B) Beginning January 1, 2014, any amount over the first one
million dollars ($1,000,000), including accrued interest, in the fund
shall be transferred to the Steven M. Thompson Medical School
Scholarship Account within the Health Professions Education Fund,
created pursuant to Section 128580, and shall, upon appropriation by
the Legislature, be used by the Office of Statewide Health Planning
and Development for the Steven M. Thompson Medical School Scholarship
Program for the purposes specified in Article 6 (commencing with
Section 128560) of Chapter 5 of Part 3 of Division 107.
(d) Notwithstanding subdivision (b) of Section 1356 and Section
1356.1, the fines and administrative penalties authorized pursuant to
this chapter shall not be used to reduce the assessments imposed on
health care service plans pursuant to Section 1356.
SEC. 2. Article 6 (commencing with Section 128560)
is added to Chapter 5 of Part 3 of Division 107 of the
Health and Safety Code , to read:
Article 6. Steven M. Thompson Medical School Scholarship
Program
128560. (a) There is hereby established within the Health
Professions Education Foundation, the Steven M. Thompson Medical
School Scholarship Program.
(b) It is the intent of this article that the foundation and the
office provide the ongoing program management for the program.
(c) For the purposes of this article, the foundation shall consult
with the committee established pursuant to subdivision (b) of
Section 128551.
128565. For purposes of this article, the following definitions
shall apply:
(a) "Account" means the Steven M. Thompson Medical School
Scholarship Account established within the Health Professions
Education Fund pursuant to this article.
(b) "Foundation" means the Health Professions Education
Foundation.
(c) "Medi-Cal threshold languages" means primary languages spoken
by limited-English-proficient (LEP) population groups meeting a
numeric threshold of 3,000 LEP individuals eligible for Medi-Cal
residing in a county, 1,000 LEP individuals eligible for Medi-Cal
residing in a single ZIP Code, or 1,500 LEP individuals eligible for
Medi-Cal residing in two contiguous ZIP Codes.
(d) "Medically underserved area" means an area defined as a health
professional shortage area in Part 5 (commencing with Sec. 5.1) of
Subchapter A of Chapter 1 of Title 42 of the Code of Federal
Regulations or an area of the state where unmet priority needs for
physicians exist as determined by the California Healthcare Workforce
Policy Commission pursuant to Section 128225.
(e) "Medically underserved population" means the persons served by
the Medi-Cal program, the Healthy Families Program, and uninsured
populations.
(f) "Office" means the Office of Statewide Health Planning and
Development (OSHPD).
(g) "Practice setting" means either of the following:
(1) A community clinic as defined in subdivision (a) of Section
1204 and subdivision (c) of Section 1206, a clinic owned or operated
by a public hospital and health system, or a clinic owned and
operated by a hospital that maintains the primary contract with a
county government to fulfill the county's role pursuant to Section
17000 of the Welfare and Institutions Code, each of which is located
in a medically underserved area and at least 50 percent of whose
patients are from a medically underserved population.
(2) A medical practice located in a medically underserved area and
at least 50 percent of whose patients are from a medically
underserved population.
(h) "Primary specialty" means family practice, internal medicine,
pediatrics, or obstetrics/gynecology.
(i) "Program" means the Steven M. Thompson Medical School
Scholarship Program.
(j) "Selection committee" means the advisory committee of not more
than seven members established pursuant to subdivision (b) of
Section 128551.
(k) "Super-medically underserved area" means an area defined as
medically underserved pursuant to subdivision (d) that also meets a
heightened criteria of physician shortage as determined by the
foundation.
128570. (a) Persons participating in the program shall be persons
who agree in writing prior to entering an accredited medical or
osteopathic school to serve in an eligible practice setting, pursuant
to subdivision (g) of Section 128565, for at least three years. The
program shall be used only for the purpose of promoting the education
of medical doctors and doctors of osteopathy and related
administrative costs.
(b) A program participant shall commit to three years of full-time
professional practice once the participant has achieved full
licensure pursuant to Article 4 (commencing with Section 2080) of
Chapter 5 or Section 2099.5 of the Business and Professions Code and
after completing an accredited residency program. The obligated
professional service shall be in direct patient care in an eligible
practice setting pursuant to subdivision (g) of Section 128565.
(1) Leaves of absence shall be permitted for serious illness,
pregnancy, or other natural causes. The selection committee shall
develop the process for determining the maximum permissible length of
an absence and the process for reinstatement. Awarding of
scholarship funds shall be deferred until the participant is back to
full-time status.
(2) Full-time status shall be defined by the selection committee.
The selection committee may establish exemptions from this
requirement on a case-by-case basis.
(c) The maximum allowable amount per total scholarship shall be
one hundred five thousand dollars ($105,000). These moneys shall be
distributed over the course of a standard medical school curriculum.
The distribution of funds shall increase over the course of medical
school, increasing to ensure that at least 45 percent of the total
scholarship award is distributed upon matriculation in the final year
of school.
(d) In the event the program participant does not complete the
minimum three years of professional service pursuant to the
contractual agreement between the foundation and the participant, the
office shall recover the funds awarded plus the maximum allowable
interest for failure to begin or complete the service obligation.
128575. (a) The selection committee shall use guidelines that
meet all of the following criteria to select scholarship recipients:
(1) Provide priority consideration to applicants who are best
suited to meet the cultural and linguistic needs and demands of
patients from medically underserved populations and who meet one or
more of the following criteria:
(A) Speak a Medi-Cal threshold language.
(B) Come from an economically disadvantaged background.
(C) Have experience working in medically underserved areas or with
medically underserved populations.
(2) Give preference to applicants who have committed to practicing
in a primary specialty.
(3) Give preference to applicants who will serve in a practice
setting in a super-medically underserved area.
(4) Include a factor ensuring geographic distribution of
placements.
(b) The selection committee may award up to 20 percent of the
available scholarships to program applicants who will practice
specialties outside of a primary specialty.
(c) The foundation, in consultation with the selection committee,
shall develop a process for outreach to potentially eligible
applicants.
128580. (a) The Steven M. Thompson Medical School Scholarship
Account 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 program provided for under this
article. This account shall receive money from the Managed Care
Administrative Fines and Penalties Fund pursuant to Section 1341.45.
(b) Funds in the account shall be used to fund scholarships
pursuant to agreements made with recipients and as follows:
(1) Scholarships shall not exceed one hundred five thousand
($105,000) per recipient.
(2) Scholarships shall not exceed the amount of the educational
expenses incurred by the recipient.
(c) Effective January 1, 2014, the foundation may seek and receive
matching funds from foundations and private sources to be placed in
the account. "Matching funds" shall not be construed to be limited to
a dollar-for-dollar match of funds.
(d) Funds placed in the account for purposes of this article,
including, but not limited to, funds received pursuant to subdivision
(c) shall, upon appropriation by the Legislature, be used for the
purposes of this article.
(e) The account shall be used to pay for the cost of administering
the program, not to exceed 5 percent of the total appropriation for
the program.
(f) The office and the foundation shall manage the account
established by this section prudently in accordance with other
provisions of law.
SECTION 1. Section 128555 of the Health and
Safety Code is amended to read:
128555. (a) The Medically Underserved Account for Physicians is
hereby established within the Health Professions Education Fund. The
primary purpose of this account is to provide funding for the ongoing
operations of the Steven M. Thompson Physician Corps Loan Repayment
Program provided for under this article. This account also may be
used to provide funding for the Physician Volunteer Program provided
for under this article.
(b) All moneys in the Medically Underserved Account contained
within the Contingent Fund of the Medical Board of California shall
be transferred to the Medically Underserved Account for Physicians on
July 1, 2006.
(c) Funds in the account shall be used to repay loans as follows
per agreements made with physicians:
(1) Funds paid out for loan repayment may have a funding match
from foundations or other private sources.
(2) Loan repayments may not exceed_____ dollars ($_____) per
individual licensed physician.
(3) Loan repayments may not exceed the amount of the educational
loans incurred by the physician participant.
(d) 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.