AB 860, as amended, 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 thatbegin insert the first $1,000,000, be transferred each year from the Managed Care Administrative Fines and Penalties Fund to the Medically Underserved Account for Physicians, for purposes of the STMSSP, as specified, upon
appropriation by the legislature. This bill would, beginning January 1, 2014, require thatend insert no less than $1,000,000 be transferred each year from the Managed Care Administrative Fines and Penaltiesbegin delete Fundend deletebegin insert Fund, provided that the fund has $2,000,000 or more in it,end insert to the Steven M. Thompson Medical School Scholarship Account, for purposes of the STMSSP, upon appropriation by the Legislature.begin insert The bill would provide that if the Managed Care Administrative Fines and Penalties Fund has a balance of less than $2,000,000, the first $1,000,000 be transferred to the Medically Underserved Account for Physicians and the remainder, if any, to the Steven M. Thompson Medical School Scholarship Account.end insert 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 1341.45 of the Health and Safety Code
2 is amended to read:
(a) There is hereby created in the State Treasury the
4Managed Care Administrative Fines and Penalties Fund.
5(b) The fines and administrative penalties collected pursuant to
6this chapter, on and after September 30, 2008, shall be deposited
7into the Managed Care Administrative Fines and Penalties Fund.
8(c) The fines and administrative penalties deposited into the
9Managed Care Administrative Fines and Penalties Fund shall be
P3 1transferred by the department, beginning September 1, 2009, and
2annually thereafter, as follows:
3(1) The
first one million dollars ($1,000,000) shall be transferred
4to the Medically Underserved Account for Physicians within the
5Health Professions Education Fund and shall, upon appropriation
6by the Legislature, be used for the purposes of the Steven M.
7Thompson Physician Corps Loan Repayment Program, as specified
8in Article 5 (commencing with Section 128550) or Chapter 5 of
9Part 3 of Division 107 and, notwithstanding Section 128555, shall
10not be used to provide funding for the Physician Volunteer
11Program.
12(2) Beginning January 1, 2014,begin insert if the Managed Care
13Administrative Fines and Penalties Fund has two million dollars
14($2,000,000) or more,end insert no less than one million dollars ($1,000,000)
15shall be transferred to the Steven M. Thompson Medical School
16
Scholarship Account within the Health Professions Education
17Fund, created pursuant to Section 128580, and shall, upon
18appropriation by the Legislature, be used by the Office of Statewide
19Health Planning and Development for the Steven M. Thompson
20Medical School Scholarship Program for the purposes specified
21in Article 6 (commencing with Section 128560) of Chapter 5 of
22Part 3 of Division 107.
23(3) Any amount over the amountsbegin insert that are subject to transfer
24asend insert specified in paragraphs (1) and (2), including accrued interest,
25in the fund shall be transferred to the Major Risk Medical Insurance
26Fund created pursuant to Section 12739 of the Insurance Code and
27shall, upon appropriation by the Legislature, be used for the Major
28Risk Medical Insurance Program
for the purposes specified in
29Section 12739.1 of the Insurance Code.
30(4) If the Managed Care Administrative Fines and Penalties
31Fund has a balance of less than two million dollars ($2,000,000),
32the first one million dollars ($1,000,000), shall be transferred
33pursuant to paragraph (1), and the remainder, if any, shall be
34transferred to the Steven M. Thompson Medical School Scholarship
35Account and shall, upon appropriation by the Legislature, be used
36for the purposes described in paragraph (2).
37(d) Notwithstanding subdivision (b) of Section 1356 and Section
381356.1, the fines and administrative penalties authorized pursuant
P4 1to this chapter shall not be used to reduce the assessments imposed
2on health care service plans pursuant to Section
1356.
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