BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 21
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          SENATE THIRD READING
          SB 21 (Roth)
          As Amended  August 5, 2013
          Majority vote 

           SENATE VOTE  :39-0  
           
           HIGHER EDUCATION    12-0                                        
           
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          |Ayes:|Williams, Chávez, Bloom,  |     |                          |
          |     |Fong, Fox, Levine,        |     |                          |
          |     |Linder, Medina, Olsen,    |     |                          |
          |     |Quirk-Silva, Weber, Wilk  |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Requests the School of Medicine at the University of  
          California, Riverside (UCR) to 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 in applying for  
          physician retention programs, including, but not limited to, the  
          Steven M. Thompson Physician Corps Loan Repayment Program; and  
          lists a variety of legislative findings and declarations.

           EXISTING LAW  :  Section 9, Article IX of the California State  
          Constitution creates the University of California to be  
          administered by the UC Regents with full powers of organization  
          and government.  Additionally, 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 public schools.

           FISCAL EFFECT :  Unknown.  This measure is keyed non-fiscal by  
          the Legislative Counsel.

           COMMENTS  :  

           Background  .  The foundation of the School of Medicine at UCR  
          dates to 1974, when the UCR/UCLA Thomas Haider Program in  
          Biomedical Sciences was established.  This program has enabled  
          approximately 700 students to complete their first two years of  
          medical school at UCR and their last two years at the David  








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          Geffen School of Medicine at UCLA, which confers their medical  
          degrees.  

           Timeline of events  .  In May 2006, UCR proposed to establish an  
          independent four-year School of Medicine that would serve the  
          medically underserved in the Inland Empire.  In July 2008, the  
          UC Board of Regents officially approved establishment of a  
          School of Medicine at UCR, which paved the road for the state's  
          first new public medical school in more than four decades.  In  
          the summer of 2011, UCR failed to gain accreditation for an  
          independent four-year medical school from the Liaison Committee  
          on Medical Education (LCME), the national accrediting body for  
          educational programs leading to the Medical Doctor degree in the  
          United States and Canadian medical schools.  LCME withheld  
          preliminary accreditation due to a lack of recurring state  
          funding support for the school. 

          In April 2012, after securing substantial new funding from a  
          variety of non-state funding sources, UCR submitted a second  
          accreditation application.  In June 2012, a second accreditation  
          site visit took place and in October 2012, UCR received  
          notification that its planned medical school received  
          "preliminary accreditation."  Preliminary accreditation from  
          LCME enables prospective students to begin applying to the UCR  
          School of Medicine in order to potentially enroll in the  
          inaugural class in August 2013.

           2013 Budget Act and Higher Education Budget Trailer bill  .   
          Assembly Bill 110 (Blumenfield), Chapter 20, Statutes of 2013,  
          contains a $2.8 billion General Fund appropriation for the  
          support and operations of the UC.  Additionally, the Higher  
          Education Trailer bill (AB 94 (Budget Committee), Chapter 50,  
          Statutes of 2013) contains other statutory changes to implement  
          agreements reached in constructing the 2013 Budget.  

          AB 94, Section 16, specifies that of the amount appropriated in  
          the UC budget item, the sum of $15 million is allocated to the  
          UC Regents for the UCR School of Medicine.  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 the UC to report annually by April 1,  
          progress reports, as specified, pertaining to funding,  
          recruitment, hiring, and outcomes for the UCR School of  








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          Medicine. 

           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, CPEC  
          found that the UC proposal to establish a School of Medicine at  
          the Riverside campus fully met the Commission's Guidelines for  
          Approval of New Programs.  It was also recommended UC consider  
          establishing the medical school at a later date when the state's  
          economic and fiscal conditions are more favorable.

           Need for the bill  .  According to the Public Policy Institute of  
          California, the Inland Empire is the fastest-growing region of  
          the state.  The Inland Empire of Riverside and San Bernardino  
          Counties has a population larger than the State of Oregon.  With  
          the expectation of the Affordable Care Act to be fully  
          implemented in 2015, it is estimated that more than 300,000  
          residents of the Inland Empire will have health insurance  
          coverage extended to them.  However, the coverage does not  
          necessarily translate into care.  

          The Association of American Medical Colleges estimates that in  
          2015 the country will have 62,900 fewer doctors than needed;  
          that number will more than double by 2025 as the expansion of  
          insurance coverage and the aging of the baby boomers drive up  
          the demand for care.  In the Inland Empire, the shortage of  
          doctors is already severe. The U.S. Department of Health and  
          Human Services' Council on Graduate Medical Education recommends  
          that a given region have 60 to 80 primary care physicians per  
          100,000 residents and 85 to 105 specialists.  The Inland Empire  
          has an estimated 40 primary care doctors and 70 specialists per  
          100,000 residents - the worst shortage in California, in both  
          cases.

          The UCR School of Medicine plans to enroll its first students  
          later this month, and is planning a number of policies to  
          encourage its graduates to remain in the Inland Empire and  
          practice primary care medicine.   
           
          Purpose of this bill  .  According to the author this measure  
          seeks to address the primary care physician shortage faced by  
          the Inland Empire by helping to ensure more doctors are educated  








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          and trained locally.

          The Steven M. Thompson Physician Corps Loan Repayment Program  
          encourages recently licensed physicians to practice in Health  
          Professional Shortage Areas in California (the Inland Empire  
          being one of these areas).  The program authorizes a plan for  
          repaying up to $105,000 in educational loans in exchange for  
          full-time service for a minimum of three years.
           
          Related legislation  .  AB 27 (Medina) which is identical to this  
          bill, is currently on the Senate Floor.

           
          Analysis Prepared by  :    Jeanice Warden / HIGHER ED. / (916)  
          319-3960 


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