BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2485 (Santiago) - Dental Corps Loan Repayment Program
          
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          |Version: May 27, 2016           |Policy Vote: B., P. & E.D. 9 -  |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 1, 2016    |Consultant: Brendan McCarthy    |
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          This bill meets the criteria for referral to the Suspense File.

          Bill  
          Summary:  AB 2485 would revise the terms and qualifications  
          required for participation in the Dental Board of California's  
          Dental Corps Loan Repayment Program.


          Fiscal  
          Impact:  
           Minor costs for revising existing regulations and  
            administering the Program by the Dental Board of California  
            (Dentally Underserved Account).

           Additional expenditure of loan repayment funds, up to $1.6  
            million (Dentally Underserved Account). The Program has  
            existed for over ten years with limited participation,  
            particularly in recent years. The intention of the bill is to  
            broaden the participation in the program to make use of  
            existing funds. To the extent that the bill is successful,  
            additional expenditures are likely.









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          Background:  Under current law, the Dental Board of California manages the  
          Dental Corps Loan Repayment Program of 2002 (the Program). The  
          Program provides for up to $105,000 in loan repayments over  
          three years for dentists practicing in dentally underserved  
          areas. The Program was established with an initial appropriation  
          of $3 million. Since the Program's inception, there has been  
          limited demand for its funds. In the last five years there have  
          been only been five applications approved. There is a remaining  
          balance of $1.6 million from the original appropriation.


          Proposed Law:  
            AB 2485 would revise the terms and qualifications required for  
          participation in the Dental Board of California's Dental Corps  
          Loan Repayment Program.
          The bill recasts the existing code sections authorizing the  
          program, but much of the new statutory language retains existing  
          law or regulation governing the program.


          Key changes in the bill to the existing program would:
           Allow individuals still in dental school to apply to the  
            Program (with loan repayments to begin once the applicant  
            begins working);
           Require certain Program criteria to be given priority, rather  
            than be required (for example, the Program currently requires  
            an applicant to speak a Medi-Cal threshold language, whereas  
            the bill only requires such ability to be prioritized);
           Authorize loan repayments of $35,000 per year over three  
            years.


          Staff  
          Comments:  The bill includes legislative intent language that  
          regulations do not need to be promulgated by the Dental Board of  
          California to implement the bill. However, the Dental Board  
          indicates that existing regulations will need to be amended to  
          conform to the statutory changes in the bill.
          The only costs that may be incurred by a local agency relate to  
          crimes and infractions. Under the California Constitution, such  
          costs are not reimbursable by the state.











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