BILL NUMBER: AB 860	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Perea and Bocanegra
   (Coauthor: Assembly Member Bonta)
   (Coauthor: Senator Rubio)

                        FEBRUARY 21, 2013

   An act to amend Section 1341.45 of the Health and Safety Code,
relating to health professions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 860, as introduced, Perea. Medical school scholarships.
   Existing law provides for the 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.
    Existing law establishes 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. Existing law
provides up to $105,000 per recipient in scholarships to selected
participants who agree in writing prior to completing an accredited
medical or osteopathic school based in the United States to serve in
an eligible setting. Existing law establishes the Steven M. Thompson
Medical School Scholarship Account within the Health Professions
Education Fund, which consists of private moneys donated to the
STMSSP.
   This bill would, beginning January 1, 2014, require that no less
than $1,000,000 be transferred each year from the Managed Care
Administrative Fines and Penalties Fund to the Steven M. Thompson
Medical School Scholarship Account, for purposes of the STMSSP, upon
appropriation by the Legislature. The bill would require that any
amount remaining over the amounts transferred to the Medically
Underserved Account for Physicians and the Steven M. Thompson Medical
School Scholarship Account be transferred each year to the Major
Risk Medical Insurance Fund for purposes of the Major Risk Medical
Insurance Program.
   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   September 30, 2008  , 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) Beginning January 1, 2014, no less than one million dollars
($1,000,000) 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.  
   (2) 
    (3)  Any amount over the  first one million
dollars ($1,000,000)   amou   nts specified in
paragraphs (1) and (2)  , 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.
   (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.