BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1116
                                                                  Page  1

          Date of Hearing:   July 2, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 1116 (Torres) - As Amended:  June 19, 2014 

          Policy Committee:                             Business and  
          Professions  Vote:                            12-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the Medical Board of California (MBC) and the  
          Osteopathic Medical Board of California (OMBC) to develop a  
          mechanism for a physician to pay a voluntary contribution, at  
          the time of application for initial licensure or biennial  
          renewal, to the Steven M. Thompson Physician Corps Loan  
          Repayment Program (STLRP) on or before July 1, 2015.

           FISCAL EFFECT  

          1)Minor and absorbable costs to the MBC and the OMBC to modify  
            forms, processes and, if necessary, relevant regulations to  
            allow voluntary contributions (Contingent Fund of the Medical  
            Board of California/ Osteopathic Medical Board of California  
            Contingent Fund).

          2)Potential unknown increased revenue to support the STLRP  
            (Health Professions Education Fund, Medically Underserved  
            Account for Physicians), to the extent physicians voluntarily  
            contribute additional funds for the program.  

          3)The Office of Statewide Health Planning and Development  
            (OSHPD), which administers STLRP, could incur minor additional  
            administrative costs associated with an increased number of  
            awards (Health Professions Education Fund, Medically  
            Underserved Account for Physicians).

           COMMENTS  

           1)Purpose  . This bill is intended to further augment STLRP funds  
            by allowing physicians to make a voluntary contribution at the  








                                                                  SB 1116
                                                                  Page  2

            time of application for initial licensure or biennial renewal.  
             

           2)Background  . STLRP is funded by a $25 physician and surgeon  
            license fee, California Department of Managed Health Care  
            fines and penalties, donations and grants.  OSHPD provides  
            loan repayment awards based on available revenue to qualified  
            applicants who agree to practice in a medically underserved  
            area of the state.  The awards repay up to $105,000 in  
            educational loans in exchange for a minimum of three years of  
            full-time service. 

           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081