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)
Page 1
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.