BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2485| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2485 Author: Santiago (D) Amended: 8/15/16 in Senate Vote: 27 - Urgency SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 6/27/16 AYES: Hill, Bates, Block, Gaines, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16 AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen ASSEMBLY FLOOR: 79-0, 6/1/16 - See last page for vote SUBJECT: Dental Corps Loan Repayment Program SOURCE: California Dental Association DIGEST: This bill revises terms of qualification and disbursement for the Dental Board of California's Dental Corps Loan Repayment Program. ANALYSIS: Existing law: 1)Establishes the Dental Board of California (Board) within the Department of Consumer Affairs to license and regulate the practice of dentistry. (Business and Professions Code (BPC) §§ 1601.1, 1611) 2)Establishes the Dental Corps Loan Repayment Program of 2002 AB 2485 Page 2 (Program) in the Board. (BPC § 1970) 3)Requires a Program applicant to have a current, valid license to practice dentistry. (BPC § 1972 (a)) 4)Establishes loan repayment as follows: (BPC § 1975) a) After a Program participant has completed one year of providing services as a dentist in a dentally underserved area, the Board shall provide up to twenty-five thousand dollars ($25,000) for loan repayment. b) After a Program participant has completed two consecutive years of providing services as a dentist in a dentally underserved area, the Board shall provide up to an additional thirty-five thousand dollars ($35,000) of loan repayment, for a total loan repayment of up to sixty thousand dollars ($60,000). c) After a Program participant has completed three consecutive years of providing services as a dentist in a dentally underserved area, the Board shall provide up to a maximum of an additional forty-five thousand dollars ($45,000) of loan repayment, for a total loan repayment of up to one hundred five thousand dollars ($105,000). This bill: 1)Renames the California Dental Corps Loan Repayment Program of 2002 as the Program. 2)Defines a "practice setting" to mean either of the following: a) A community clinic, as specified; a clinic owned or operated by a public hospital and health system; or a clinic owned and operated by a hospital that maintains the primary contract with a county government to fulfill the county's role, as specified, that is located in a dentally underserved area or at least 50 percent of whose patients are from a dentally underserved population. AB 2485 Page 3 b) A dental practice or dental corporation located in a dentally underserved area, or at least 50 percent of whose patients are from a dentally underserved population. 3)Requires an applicant, if selected, to sign an agreement with the Board to maintain qualified employment for 36 months continuously, and that the qualified employment meets or, once commenced, will meet the minimum requirements of the Program regarding practice setting, and clinical hours worked. Requires an applicant to agree to provide an annual progress report signed by both the applicant and employer or employer's designee. A progress report shall verify the practice setting's qualified status, clinical hours worked by the applicant, number of patients treated, specific treatment rendered and its value, and patient's payer source. 4)Requires the Board, in selecting a participant for the Program, to give priority consideration to an applicant who is best suited to meet the cultural and linguistic needs and demands of dentally underserved populations by demonstrating experience in one or more of the following areas: a) Speaks one or more Medi-Cal threshold languages. b) Comes from an economically disadvantaged background with economic, social, or other circumstances. c) Has worked in a health field in an underserved area or with an underserved population. d) Is a dentist specialist recognized by the American Dental Association or has met all eligibility requirements to graduate from a dental specialty residency Program approved by the Commission on Dental Accreditation. e) Has completed an extramural Program or rotation during dental school or postgraduate education in which the applicant provided services to a population that speaks any Medi-Cal threshold language. AB 2485 Page 4 5)Requires the practice setting to be located in a dentally underserved area and to ensure that the Program participant serves a patient population that consists of at least 50 percent dentally underserved populations. 6)Requires a Program participant to commit to a minimum of three years of service in one or more eligible practice settings. Loan repayment or grant disbursement shall be deferred until the dentist is employed on a full-time basis. 7)Requires the Board to develop a process for a program participant's repayment of loans or grants disbursed in the event that the participant is terminated prior to completion of, or is otherwise unable to complete, his or her three years of service obligation. Cause for termination shall include, but is not limited to, the following: a) Recipient's termination of full-time, qualified employment. b) Recipient's failure to maintain his or her professional license in good standing. c) Recipient's failure to comply with any other term or condition of this article. 8)Requires the Board to report to the Legislature on the Program during its sunset review period. 9)Declares this act an urgency statute necessary for the immediate preservation of the public peace, health, or safety in order to ensure that low-income communities immediately receive the dental care they desperately lack as soon as possible by removing barriers to available and unused special funds for dentists who seek to serve designated underserved populations. Background According to the author's office, this bill is necessary to "codify existing regulations for the implementation of the Program; expand pool of applicants eligible for the Dental Corps Loan Repayment Program; revise the timeline for loan distribution; remove deterrents that keep away potential AB 2485 Page 5 applicants; and, require the DBC to report on the effectiveness of the Program at the time of its sunset review." The Program. AB 982 (Firebaugh, Chapter 1131, Statutes of 2002) established the original California Dental Corps Loan Repayment Program. The Program, administered by the Board, is designed to assist dentists who practice in dentally underserved areas by repaying dental school loans up to $105,000. A total of $3 million was initially authorized to expend from the State Dentistry Fund for this Program. SB 540 (Price, Chapter 385, Statutes of 2011) then extended the Program until all the money is expended. However, the Board has awarded funds to only 19 participants in five years. Approximately $1.63 million is left in the account. The Board indicates that it promotes the Program through the Board's Web site and presents information to California dental students, as well as partners with stakeholders and professional associations to increase awareness. Concerns about the unspent funds were raised in the Board's 2014 Sunset Review. The Board reported that its Access to Care Committee was in the process of exploring why applications have dropped off and whether the Board's requirements are more restrictive than those of other organizations having success with similar loan repayment programs. This bill keeps largely the same parameters as those required in the prior Program, as well as integrates some existing regulations. The major changes allow individuals who are still in school to apply, changes language requiring certain criteria to instead "give priority" to those individuals who meet them, and change the structure of the repayment program. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee, this bill will result in minor costs for revising existing regulations and administering the Program and the additional expenditure of loan repayment funds of up to $1.6 million. AB 2485 Page 6 SUPPORT: (Verified8/16/16) California Dental Association (source) OPPOSITION: (Verified8/16/16) None received ARGUMENTS IN SUPPORT: The California Dental Association (CDA) writes, "The legislature recognized the importance of growing the dental workforce in 2002 when it passed Assembly Bill 982? and those populations have only grown since then, and it is still a challenge to find dental providers to serve them. Despite this, the state still has over a million and a half dollars left in the loan repayment grant fund with no recent applicants to receive it." According to CDA, the lack of program participants stems from extensive and burdensome qualification requirements, and a general lack of awareness of the program's existence. The organization notes that this bill "will ?remove some unnecessary and burdensome provisions of the program that have been serving as a deterrent to qualified and willing potential applicants." ASSEMBLY FLOOR: 79-0, 6/1/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, AB 2485 Page 7 Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon NO VOTE RECORDED: Cooper Prepared by:Sarah Huchel / B., P. & E.D. / (916) 651-4104 8/16/16 10:28:44 **** END ****