BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 22 (Roth) - Residency training. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 5, 2015 |Policy Vote: HEALTH 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 28, 2015 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- SUSPENSE FILE. AS AMENDED. Bill Summary: SB 22 would require the Office of Statewide Health Planning and Development to establish a non-profit corporation for the purpose of funding new medical residency programs in medically underserved areas. Fiscal Impact (as approved on May 28, 2015): One-time administrative costs of about $1 million to create the foundation and develop criteria for making grants (General Fund). In the long-run, donations may support some or all of the activities of the proposed program. In the near term, however, state funds will likely be needed to create the program. Ongoing costs of about $800,000 per year to administer the SB 22 (Roth) Page 1 of ? program, support the Foundation, and review and approve grants and contracts (private funds). Unknown costs to make grants to medical residency programs (private funds). The bill would require the Foundation to solicit donations from public and private sources in order to fund new medical residency positions. The amount of funding available under the program will depend on the success of those fundraising efforts. Background: The Office of Statewide Health Planning and Development operates several programs to support workforce training for the health care sector. Current programs provide loans, scholarships, and loan repayments to students in health professions and provide funding to support medical training programs. For example, the Song-Brown Program provides funding to family practice residency programs, physician assistant/nurse practitioner training programs, and registered nurse training programs, with a focus on medically underserved areas. Generally, medical residency programs are paid for by federal Medicare program to subsidize (since hospitals would otherwise be financially unable to pay for the costs to train resident physicians). Proposed Law: SB 22 would require the Office of Statewide Health Planning and Development to establish a non-profit corporation for the purpose of funding new medical residency programs in medically underserved areas. Specific provision of the bill would: Require the Office of Statewide Health Planning and Development to establish the California Medical Residency Training Foundation, as a non-profit, public benefit corporation; Specify the membership of the Foundation board of trustees; Require the Foundation to solicit and accept funds from various sources in order to provide funding for new medical residency programs and take related actions; Require the Office to provide administrative support to the Foundation; Create a new special fund to support the program and SB 22 (Roth) Page 2 of ? continuously appropriate money in the fund; Authorize the Office to adopt emergency regulations to implement the bill and exempt those emergency regulations from the existing requirement that emergency regulations subsequently be adopted as regular regulations; Require the Legislature to appropriate funds in the annual budget act to match the private donations collected by the foundation, to be used for the purposes of the bill. Related Legislation: SB 1416 (Rubio and Hernandez, 2012) would have created a fund to be used to by the Office of Statewide Health Planning and Development to make grants to medical residency training programs. That bill was held in the Assembly Appropriations Committee. SB 635 (Hernandez, 2012) would have required funds in excess of $1 million from fines and penalties deposited in the Managed Care Administrative Fines and Penalties Fund to be transferred each year to the Office for support of the Song-Brown Program. That bill was held in the Assembly Appropriations Committee. Staff Comments: While the bill allows for the use of private funds to support the program, there will be upfront costs to develop program criteria. In the absence of private funds, those costs will fall on the state. In addition, there will be ongoing administrative costs to the Office (for example, administering grants previously awarded by the Foundation). If private funds do not materialize, those costs would fall on the state. Author's amendments (as adopted May 28, 2015): make a variety of technical and clarifying changes. Committee amendments (as adopted May 28, 2015): delete the requirement for legislative appropriation of funds to match private donations. -- END -- SB 22 (Roth) Page 3 of ?