BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          SB 1116 (Torres) - Physicians and surgeons.
          
          Amended: As introduced          Policy Vote: B&P 8-0
          Urgency: No                     Mandate: No
          Hearing Date: May 5, 2014       Consultant: Brendan McCarthy
          
          This bill does not meet the criteria for referral to the  
          Suspense File.
          
          
          Bill Summary: SB 1116 would authorize the Medical Board of  
          California and the Osteopathic Medical Board of California to  
          collect a voluntary $75 contribution from licensees at the time  
          of initial licensure or renewal to support the Steven M.  
          Thompson Physician Corps Loan Repayment Program.

          Fiscal Impact: 
              Potential one-time costs up to $75,000 to amend existing  
              regulations by the Medical Board of California (Contingent  
              Fund of the Medical Board of California).

              Potential one-time costs up to $75,000 to amend existing  
              regulations by the Osteopathic Medical Board of California  
              (Osteopathic Medical Board of California Contingent Fund).

              Ongoing revenues and expenditures likely between $150,000  
              and $300,000 per year for physician loan repayments (Health  
              Professions Education Fund). Under current law, the Medical  
              Board of California collects a voluntary $25 contribution  
              from licensed physicians and surgeons at the time of initial  
              licensing and renewal. About 3% of licensees make this  
              voluntary contribution. If the rate of contributions  
              authorized under this bill is similar to current practice,  
              the bill will generate about $300,000 per year in  
              contributions from physicians and surgeons and osteopathic  
              physicians and surgeons. If the larger contribution amount  
              reduces participation by half, revenues would be about  
              $150,000 per year.

              Under current law, monies in the Medically Underserved  
              Account for Physicians within the Health Professions  
              Education Fund are continuously appropriated for loan  








          SB 1116 (Torres)
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              repayments by the Office of Statewide Health Planning and  
              Development. By increasing revenues into this fund, this  
              bill would also appropriate those revenues.

          Background: Under current law, physicians and surgeons are  
          licensed by the Medical Board of California. In addition to  
          regulatory licensing fees collected by the board, licensees are  
          required to pay an additional $25 fee at licensure and renewal  
          for support of the Steven M. Thompson Physician Corps Loan  
          Repayment Program. In addition, current law authorizes the  
          Medical Board to accept a voluntary $25 donation from licensees  
          at the time of initial licensing and renewal, to support the  
          Song-Brown Program, which provides funding to medical residency  
          programs. 

          Under current law, Osteopathic physicians and surgeons are  
          licensed by the Osteopathic Medical Board of California. In  
          addition to regulatory licensing fees collected by the board,  
          licensees are required to pay an additional $25 fee at the time  
          of initial licensing and renewal for support of the Steven M.  
          Thompson Physician Corps Loan Repayment Program.

          In order to qualify for the Steven M. Thompson Physician Corps  
          Loan Repayment Program, a physician must agree to work full time  
          in a community clinic or a medical practice in a medically  
          underserved area whose patient population is at least 50 percent  
          uninsured or eligible for Medi-Cal or the Healthy Families  
          Program. The Program provides up to $105,000 in loan repayments  
          for qualifying physicians.

          Criteria for awarding loan repayments are developed by the  
          Health Professions Education Foundation within the Office of  
          Statewide Health Planning and Development.

          Proposed Law: SB 1116 would authorize the Medical Board of  
          California and the Osteopathic Medical Board of California to  
          collect a voluntary $75 contribution from licensees at the time  
          of initial licensing and renewal. 

          Collected revenues would be transferred to the Medically  
          Underserved Account for Physicians within the Health Professions  
          Education Fund under the Office of Statewide Health Planning and  
          Development  to support the Steven M. Thompson Physician Corps  
          Loan Repayment Program.








          SB 1116 (Torres)
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          Related Legislation: AB 565 (Salas, Statutes of 2013) made  
          various revision to the process for awarding funds in the Steven  
          M. Thompson Physician Corps Loan Repayment Program.

          Staff Comments: Because the Medically Underserved Account for  
          Physicians within the Health Professions Education Fund is a  
          continuously appropriated fund, this bill makes an appropriation  
          by authorizing additional revenues into that fund.