BILL ANALYSIS Ó AB 2485 Page 1 ASSEMBLY THIRD READING AB 2485 (Santiago) As Amended May 27, 2016 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Business & |16-0 |Salas, Brough, Baker, | | |Professions | |Bloom, Campos, | | | | |Chávez, Dahle, Dodd, | | | | |Eggman, Gatto, Gomez, | | | | |Holden, Jones, | | | | |Mullin, Ting, Wood | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |20-0 |Gonzalez, Bigelow, | | | | |Bloom, Bonilla, | | | | |Bonta, Calderon, | | | | |Chang, Daly, Eggman, | | | | |Gallagher, Eduardo | | | | |Garcia, Roger | | | | |Hernández, Holden, | | | | |Jones, Obernolte, | | | | |Quirk, Santiago, | | | | |Wagner, Weber, Wood | | | | | | | | | | | | AB 2485 Page 2 ------------------------------------------------------------------ SUMMARY: Streamlines the California Dental Corps Loan Repayment Program (DCLRP), under the jurisdiction of the Dental Board of California (DBC), within the Department of Consumer Affairs (DCA), expands eligibility of applicants to the program, and reschedules the timeline that loan repayments may be disbursed. Specifically, this bill: 1)Declares the Legislature's intent to streamline the administration of the DCLRP such that the DBC does not need to promulgate regulations to implement changes to the DCLRP. 2)Establishes the DCLRP, under the jurisdiction of the DBC, within the DCA, and authorizes the DBC to implement the DCLRP. 3)Defines and reorders several terms for the purpose of administering the DCLRP. 4)Provides that a program applicant must possess a current valid license to practice dentistry in this state issued by the DBC within the last five years, or be eligible for graduation from an approved pre or post-doctoral dental education program, as specified, and meet all criteria for licensure, subject to successful completion of applicable requirements. 5)Requires a program applicant to submit documentation detailing current loan obligations, the current balance owing, and monthly installment plan, as applicable. 6)Requires an application to disclose any and all obligations for which the applicant has defaulted or has been subjected to AB 2485 Page 3 a lien within the last 10 years. 7)Requires the applicant to sign, under penalty of perjury, an agreement with the DBC to maintain qualified employment, as specified, and provide an annual progress report, as specified. 8)Specifies that the DBC give priority consideration to applicants that are best suited to meet the cultural and linguistic needs and demands of dentally underserved populations and who also speak a Medi-Cal language; come from an economically disadvantaged background; have received significant training in cultural and linguistically appropriate service delivery; have worked in a health field in an underserved area or with an underserved population; and, have recently received a license to practice dentistry, or has received an offer of unemployment in an underserved area. 9)Specifies that practice setting must be located in a dentally underserved area or ensures that the program participant serves a patient population that consists of at least 50% dentally underserved populations. 10)Requires a program applicant to be working in, or have a signed agreement with, an eligible practice setting and be employed on a full-time basis, as specified, unless the DBC determines on a case-by-case basis that a participant should be exempted from the minimum requirements. 11)Provides that a program participant is required to commit to a minimum of three years of service in a qualified practice setting, but may be eligible for leave of absence as determined by the DBC; provides that loan repayment will be deferred until the dentist is employed on a full-time basis. AB 2485 Page 4 12)Provides that the DBC may terminate an applicant's participation in the program for cause, as specified, and require a recipient to repay the total amount of loans or grants disbursed plus 10% interest within no more than seven years. 13)Provides that the DBC may coordinate with local and statewide trade and professional dental organizations, as well as educational institutions, for outreach to potentially eligible applicants. 14)Provides that funds paid out for loan repayment may have a funding match from foundations or other private sources. 15)Provides that after a participant has completed six months of service, the DBC may award up to $35,000 for repayment; upon completion of a 18 months of service, a participant is eligible for up to an additional $35,000; and upon completion of 30 months of service, would earn an additional $35,000 in loan repayment; and, specifies that loan repayments may not exceed $105,000 or the total amount of the loan, whichever is lesser. 16)Codifies existing regulations for the selection and placement of applicants and the timeline for the disbursement of funds to a recipient. 17)Requires the DBC to submit a report to the Legislature during its sunset review period detailing the experience of the program, an evaluation of its effectiveness in improving access to dental care for underserved populations, and recommendations for maintaining or expanding its operation, as AB 2485 Page 5 specified. 18)Makes other technical, non-substantive changes. FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill will result in minor and absorbable costs to the DBC. COMMENTS: Purpose. This bill is sponsored by the California Dental Association (CDA). The bill would streamline the California DCLRP under the jurisdiction of the DCA, within the DCA, and remove some of the statutory requirements, which have been identified as deterrents to potential applicants. According to the author, ""The [DCLRP] was created to be a first step in a long-term effort to improve access to dental care by increasing the number of providers in underserved communities in California, yet it never realized its full potential due to administrative and statutory limits on its effectiveness. The funding is still available for this program, and many Californians still face barriers accessing dental care. The [L]egislature should act to remove the deterrents that keep away potential applicants to the [DCLRP] and encourage participation so that the state can better serve those individuals with the most critical oral health needs." Background. The Legislature passed the DCLRP in 2002 with an initial investment of $3 million from the State Dentistry fund, to be disbursed to eligible candidates over the course of three years. Fourteen years later, a little more than half of those funds are still sitting in the grant program account, yet to be AB 2485 Page 6 awarded. The lack of program participants stems from extensive and burdensome qualification requirements, and a general lack of awareness of the program's existence. There is approximately $1.6 million left in the account with very few or no applicants to the DCLRP in almost 10 years. When the DBC was reviewed in 2015, as part of the joint Senate Committee on Business, Professions and Economic Development and the Assembly Committee on Business and Professions (Committees) Sunset Review process, the DBC stated that it had promoted the program on its website, included information about the program in its presentation to senior students in California dental schools, and distributed information through their stakeholder and professional association publications. At the time, DBC staff and its Access to Care Committee was researching other loan repayment programs offered by the California Dental Association, the Medical Board of California, and the Office of Statewide Health Planning and Development (OSHPD). During the 2015 Sunset Review hearings, the Committees recommended that the DBC consider transferring the DCLRP to Health Professions Education Foundation, housed within the OSHPD in order to increase participation in the program and more effectively administer the funds. Instead, this bill will codify existing regulations for the implementation of the program; expand the pool of applicants eligible for the DCLRP; revise the timeline for loan disbursements; remove deterrents that keep away potential applicants; and, require the DBC to report on the effectiveness of the DCLRP at the time of its sunset review. Prior Related Legislation. AB 982 (Firebaugh), Chapter 1131, Statutes of 2002, created the DCLRP to be administered by the DBC. AB 2485 Page 7 SB 599 (Negrete-McLeod), Chapter 642, Statutes of 2009, extended the sunset date of the DCLRP to 2012. SB 540 (Price), Chapter 385, Statutes of 2011, extended the DCLRP until all monies are expended. Analysis Prepared by: Gabby Nepomuceno / B. & P. / (916) 319-3301 FN: 0003331