BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2485 (Santiago) - Dental Corps Loan Repayment Program ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 27, 2016 |Policy Vote: B., P. & E.D. 9 - | | | 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- 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. AB 2485 (Santiago) Page 1 of ? 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. AB 2485 (Santiago) Page 2 of ? -- END --