BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON EDUCATION
                                Carol Liu, Chair
                           2013-2014 Regular Session
                                        

          BILL NO:       AB 27
          AUTHOR:        Medina
          AMENDED:       May 24, 2013
          FISCAL COMM:   Yes            HEARING DATE:  June 26, 2013
          URGENCY:       Yes            CONSULTANT:Daniel Alvarez

           SUBJECT  :  University of California: UC Riverside Medical  
          School: funding. 
          
           SUMMARY  

          This bill, an urgency measure, appropriates $15 million  
          annually from the General Fund (GF) to the Regents of the  
          University of California (UC) for allocation to the School  
          of Medicine at the University of California, Riverside  
          (UCR).  This bill requires the UC Regents to use these  
          moneys for the sole purpose of funding the School of  
          Medicine at the UCR, as specified.  This bill requires the  
          School of Medicine at the UCR, to develop a program  
          consistent with its mission, in conjunction with the health  
          facilities of its medical residency programs, as specified.

           BACKGROUND  
           
          UC Riverside's history in medical education dates back to  
          1974, when the 
          UCR / UC Los Angeles (UCLA) program in biomedical sciences  
          was established.  The collaboration between the two  
          campuses educates 28 first-year and 28-second year medical  
          students at UCR, after which the students leave the region  
          to finish years 3 and 4 at UCLA and to do their medical  
          residencies. This collaboration has enabled approximately  
          700 students to complete their initial years of medical  
          school at UCR, and their last two years at UCLA where they  
          are conferred their medical degrees.  In 2008, the UC  
          Regents fully endorsed the curriculum and development of a  
          medical school on the UCR campus.

          Section 9, Article IX of the State Constitution creates the  
          University of California to be administered by the Regents  
          with full powers of organization and government. 







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          Section 1, Article IV vests legislative powers in the  
          California Legislature which consists of the Senate and  
          Assembly and empowers the Legislature with the ability to  
          appropriate funds with a two-thirds vote, except the budget  
          bill and bills appropriating funds for the public schools.

           ANALYSIS
           
           This bill  , an urgency measure, appropriates $15 million  
          annually from the General Fund (GF) to the Regents of the  
          University of California (UC) for allocation to the School  
          of Medicine at the University of California, Riverside  
          (UCR).  This bill requires the UC Regents to use these  
          moneys for the sole purpose of funding the School of  
          Medicine at the University of California, Riverside (UCR),  
          as specified.  This bill requires the School of Medicine at  
          the UCR, to develop a program consistent with its mission,  
          in conjunction with the health facilities of its medical  
          residency programs, as specified.  More specifically, this  
          bill:

          1)   Specifies that the UC Regents shall use the money  
               appropriated by this act for the sole purpose of  
               funding the School of Medicine at UCR and that it  
               cannot be used to supplant other funding of the  
               Regents for the School of Medicine at UCR.

          2)   Specifies that funds provided shall be available for  
               planning and startup costs associated with academic  
               programs to be offered by the School of Medicine at  
               UCR, including all of the following:

               a)        Academic planning activities, support of  
                    academic program offerings, and faculty  
                    recruitment;

               b)        Acquisition of instructional materials and  
                    equipment; and,

               c)        Ongoing operating support for faculty,  
                    staff, and other annual operating expenses for  
                    the School of Medicine at UCR.









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          1)   Specifies the School of Medicine at UCR shall develop  
               a program, consistent with its mission, in conjunction  
               with the health facilities of its medical residency  
               programs, to identify eligible medical residents and  
               to assist those medical residents apply for physician  
               retention programs, including, but not limited to, the  
               Steven M. Thompson Physician Corps Loan Repayment  
               Program.

          2)   Requires, on or before April 1 of each year, that the  
               UC shall provide progress reports to the relevant  
               policy and fiscal committees of the Legislature  
               pertaining to funding, recruitment, hiring, and  
               outcomes for the School of Medicine at UCR and  
               specifies that the report shall include, but not be  
               limited to, information consistent with the published  
               mission and vision for the School of Medicine at UCR  
               in the following areas:

               a)        The number of students who have applied,  
                    been admitted, or been enrolled, broken out by  
                    race, ethnicity, and gender;

               b)        The number of full-time faculty, part-time  
                    faculty, and administration, broken out by race,  
                    ethnicity, and gender;

               c)        Funding and progress of ongoing medical  
                    education pipeline programs, including the  
                    UCR/UCLA Thomas Haider Program in Biomedical  
                    Sciences;

               d)        Operating and capital budgets, including  
                    detail by fund source, and an explanation of how  
                    such funding affects base funding for other  
                    university purposes.  The operating budget shall  
                    include a breakdown of research activities,  
                    instruction costs, administration, and executive  
                    management;

               e)        Efforts to meet the health care delivery  
                    needs of California and the Inland Empire of the  
                    state, including, but not limited to, the  
                    percentage of clinical placements, graduate  








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                    medical education slots, and medical school  
                    graduates in primary care specialties who are  
                    providing service within California's medically  
                    underserved areas and populations; and,

               f)        A description of faculty research  
                    activities, including information regarding the  
                    diversity of doctoral candidates, and identifying  
                    activities that focus on high priority research  
                    needs with respect to addressing California's  
                    medically underserved areas and populations.

          1)   Lists a variety of legislative findings and  
               declarations.

           STAFF COMMENTS  

          1)   Need for the bill  .  According to the author, Inland  
               Southern California has one of the most severe  
               shortages of primary care physicians in the nation.   
               Both Riverside and San Bernardino counties with  
               roughly half the recommended physicians necessary for  
               the population of the region.  This crisis will only  
               worsen unless more doctors are educated and trained  
               locally. The University of California, Riverside (UCR)  
               School of Medicine is the key component to begin  
               addressing the severe shortage of primary care  
               physicians in the region.  In addition, the community  
               has pledged millions of dollars per year for ten years  
               with the belief that state support is also a crucial  
               component of shared responsibility in the region.   
               Some of the local funds are subject to a three-year or  
               five-year review, and without state support there is  
               an imminent danger these funds will be withdrawn  
               jeopardizing the School of Medicine's accreditation  
               when it is up for review before the Licensing  
               Committee on Medical Education in 2014.

           2)   2013 Budget Act (AB 110) and Higher Education Budget  
               Trailer bill  . The proposed Budget Act contains a $2.8  
               billion General Fund appropriation for the support and  
               operations of the University of California.   In  
               addition, the Higher Education Trailer bill (AB 94)  
               contains other statutory changes to implement  








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               agreements reached in constructing the 2013 Budget.  
               AB 94, section 16, clarifies that the amount  
               appropriated in the UC budget item, the sum of $15  
               million is allocated to the Regents for the School of  
               Medicine at the UCR campus. AB 94 further clarifies  
               that the $15 million is available for planning and  
               startup costs associated with academic programs  
               offered by the UCR School of Medicine, including  
               ongoing operational support.  Finally, AB 94 requires  
               UC to report by annually by April 1, progress reports,  
               as specified, pertaining to funding, recruitment,  
               hiring, and outcomes for the School of Medicine at  
               UCR. 
               Given the outcome of the 2013 Budget negotiations and  
               the commitments made in uncodified statute (AB 94)  
               regarding (1) the annual level of funding commitment  
               -- $15 million; (2) language that clearly articulates  
               the purposes for which the funding can be used; and  
               (3) agreed to reporting requirements.  Staff  
               recommends amendments that technically cleanup this  
               measure as follows: 

                           On page 4, line 8 after funding, insert:  
                    in the annual Budget Act and consistent with AB  
                    94, Section 16, of the 2013-14 Regular Session
                           On page 4, strike lines 15 through 36.
                           On page 4, line 4, and page 5, lines 2  
                    and 3, strike "Physician Corps Loan Repayment",  
                    and insert: Medical School Scholarship
                           On page 5, strike lines 6 through 36.

           1)   California Postsecondary Education Commission (CPEC)  .   
               Prior to 2011, CPEC was charged, among other things,  
               with reviewing proposals for new academic and  
               vocational programs at California's public colleges  
               and universities and with making recommendations to  
               the Legislature and Governor.  In 2008, the CPEC found  
               that the UC proposal to establish a School of Medicine  
               at the Riverside campus fully meets the Commission's  
               Guidelines for Approval of New Programs.  It was also  
               recommended the UC consider establishing the medical  
               school at a later date when the state's economic and  
               fiscal conditions are more favorable.









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           2)   Related legislation  .  SB 21 (Roth), pending in  
               Assembly Higher Education Committee, is nearly  
               identical to this bill. 

           3)   Past legislation  .  AB 1309 (Miller, 2012) would have  
               appropriated $15 million, from an expected settlement,  
               to the UC for the UCR School of Medicine. This measure  
               was held in the Senate Appropriations Committee.

           SUPPORT  

          California Primary Care Association
          California Podiatric Medical Association
          Medical Board of California 
          Riverside County Superintendent of Schools

           OPPOSITION

           None on file.