BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    SB 1139             
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          |AUTHOR:        |Lara                                           |
          |---------------+-----------------------------------------------|
          |VERSION:       |April 4, 2016                                  |
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          |HEARING DATE:  |April 13, 2016 |               |               |
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          |CONSULTANT:    |Melanie Moreno                                 |
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           SUBJECT  :  Health professionals:  medical residency programs:   
          undocumented immigrants:  scholarships, loans, and loan  
          repayment

         SUMMARY  :1)  Deems eligible any student, including a person without lawful  
          immigration status and/or a person who is exempt from  
          nonresident tuition, who meets the requirements for admission to  
          participate in a medical school program and a medical residency  
          training program. Prohibits specified grant and loan repayment  
          and forgiveness programs from denying an application based on an  
          applicant's citizenship or immigration status. Requires an  
          applicant, when mandatory disclosure of a social security number  
          is required, to provide it if one has been issued, or an  
          individual taxpayer identification number that has been or will  
          be submitted. 
          
          Existing law:
          1)Establishes the California Healthcare Workforce Policy  
            Commission (Commission) and requires the Commission to, among  
            other things, identify specific areas of the state where unmet  
            priority needs for primary care family physicians and  
            registered nurses exist; establish standards for family  
            practice training programs, family practice residency  
            programs, primary care physician assistants programs, and  
            programs that train primary care nurse practitioners; and  
            review and make recommendations to OSHPD concerning the  
            funding of those programs that are submitted to the Health  
            Professions Development Program for participation in the state  
            medical contract program.

          2)Establishes the Health Professions Education Foundation (HPEF)  
            within OSHPD.  Requires t HPEF to solicit and receive funds  
            from foundations and other private and public sources and to  







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            provide financial assistance in the form of scholarships or  
            loans to students in the health professions who are from  
            underrepresented groups. Provides that HPEF is governed by a  
            board consisting of 13 members appointed by the Governor,  
            Speaker of the Assembly, and Senate Rules Committee.

          3)Establishes, under the HPEF, scholarship, loan, and loan  
            repayment programs for registered nurses, vocational nurses,  
            geriatric nurse practitioners, clinical nurse specialists, and  
            mental health professionals who agree to practice for  
            specified periods of time in underserved areas and in  
            designated practice settings, as specified.  

          4)Establishes within OSHPD the Health Professions Education Fund  
            to receive funds for scholarships and loans to students from  
            underrepresented groups who are enrolled in or accepted to  
            schools of medicine, dentistry, nursing, and other health  
            professions.  Provides that moneys in the fund are  
            continuously appropriated.

          This bill:
          1)Deems eligible any student, including a person without lawful  
            immigration status, a person who is exempt from nonresident  
            tuition, or a person who is both without lawful immigration  
            status and exempt from nonresident tuition, and who meets the  
            requirements for admission to participate in a medical school  
            program and a medical residency training program at any public  
            or private postsecondary educational institution that offers  
            such a program.
            
          1)Encourages the University of California to develop a process  
            for awarding student financial aid that may include, but not  
            be limited to, grants, scholarships, and stipends, in lieu of  
            employment for students in a medical residency training  
            program whose participation is authorized by this section.

          2)Prohibits programs within the HPEF from denying an application  
            based on the citizenship status or immigration status of the  
            applicant.

          3)Requires an applicant, for HPEF programs, when mandatory  
            disclosure of a social security number (SSN) is required, to  
            provide his or her SSN, if one has been issued, or an  
            individual taxpayer identification number (ITIN) that has been  
            or will be submitted.








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          4)Applies 3) and 4) to the following programs:

                  a)        Programs supported through HPEF;
                  b)        The Registered Nurse Education Fund;
                  c)        The Mental Health Practitioner Education Fund;
                  d)        The Vocational Nurse Education Fund;
                  e)        The Medically Underserved Account for  
                    Physicians;
                  f)        The Steven M. Thompson Medical School  
                    Scholarship Account; and, 
                  g)        Loan forgiveness and scholarship programs  
                    created through the Mental Health; Services Act  
                    (MHSA).

           FISCAL  
          EFFECT  :  This bill has not been analyzed by a fiscal committee.
           
          COMMENTS  :
          1)Author's statement.  According to the author, there are  
            currently 168 designated medically underserved areas in  
            California across all 58 counties. Patients in medically  
            underserved areas face significant challenges to access health  
            care services.  The limited resources and lack of specialty  
            services in these communities leads to longer waiting times  
            and longer journeys to appointments. SB 1139 would increase  
            the number of physicians and health care workers in medically  
            underserved areas by ensuring that all individuals who wish to  
            pursue a medical profession may compete for scholarships and  
            loan repayments available under HPEF, which targets health  
            professionals who are able to provide culturally and  
            linguistically appropriate care within medically underserved  
            areas. Currently the HPEF only allows for the submission of  
            SSN, which bars undocumented individuals seeking medical  
            professions from applying. This bill would reduce barriers to  
            undocumented individuals by enabling an applicant to provide  
            an ITIN in lieu of a SSN, and prohibit the HPEF from barring  
            an applicant based on his or her immigration status, while  
            also addressing service gaps that are desperately needed in  
            those communities.
          
          2)Background. Statewide shortages of health care providers  
            currently exist in several major health professions. Recent  
            health care workforce research indicates that health  
            professional shortage, distribution, and diversity issues  








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            impact access to primary, allied, mental, and dental health  
            care in California today. The demand for these health care  
            professions is also forecasted to grow faster than professions  
            in other industries. Additionally, health care workforce needs  
            are projected to increase dramatically due to population  
            aging, growth, and diversity. This existing shortage is  
            expected intensify as about 4.7 million more Californians have  
            gained access to health insurance as a result of the  
            implementation of the Affordable Care Act. Inability to meet  
            health care workforce needs will have serious adverse  
            consequences on health access, quality, and cost.

          3)Presidential action on immigration. In November 2014,  
            President Obama announced that the federal Department of  
            Homeland Security (DHS) would not deport certain undocumented  
            parents of U.S. citizens and parents of lawful permanent  
            residents (LPRs). President Obama also announced an expansion  
            of the Deferred Action for Childhood Arrivals (DACA) program  
            for youth who came to the United States as children. Under a  
            directive from the secretary of DHS, these parents and youth  
            may be granted a type of temporary permission to stay in the  
            U.S. called "deferred action." Deferred action is a form of  
            administrative relief from deportation whereby DHS authorizes  
            a noncitizen to remain in the U.S. temporarily. These  
            individuals may also apply for an employment authorization  
            document (a work permit) during the deferred action period. A  
            grant of deferred action is temporary and does not grant  
            citizenship or permanent lawful status. However, a person  
            granted deferred action is considered by the federal  
            government to be lawfully present for as long as the grant of  
            deferred action status. These actions are expected to affect  
            up to 4.4 million people, according to DHS.

            The United States Citizenship and Immigration Services (USCIS)  
            announced that, due to a federal court order, it would not  
            begin accepting requests for the expansion of DACA on February  
            18, 2015 as originally planned and has suspended  
            implementation of Deferred Action for Parents of Americans and  
            Lawful Permanent Residents (DAPA). The court's temporary  
            injunction, issued February 16, 2015, does not affect the  
            existing DACA and individuals can continue to request an  
            initial grant of DACA or renewal of DACA under the original  
            guidelines. Separately, the Texas federal court preliminarily  
            blocked, on procedural grounds, the President's DAPA and  
            expanded DACA initiatives (but not original DACA) on February  








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            16, 2015. The Department of Justice appealed this order, and  
            arguments were heard on July 10, 2015. On November 9, 2015, a  
            divided panel of the Fifth Circuit Court of Appeals upheld the  
            lower court's ruling in a 2-1 decision. The following day, the  
            Department of Justice announced its intention to seek Supreme  
            Court review of the Fifth Circuit's decision. On January 19,  
            2016, the Supreme Court agreed to take the case and will hear  
            oral arguments on April 18th, with a decision being announced  
            in late June 2016.

          4)Impact of DACA on medical schools.  According to a perspective  
            published in the journal Academic Medicine in December 2014,  
            it is difficult to estimate the full impact of DACA on the  
            medical school applicant pool as DACA may also increase  
            undergraduate completion among this group. One estimate in  
            California indicated that only about 10% to 20% of  
            undocumented students who graduated from high school enrolled  
            in college. This is in contrast to the general population in  
            which the percentage of high school graduates who subsequently  
            enrolled in college was 68.2% in 2011. Moreover, the national  
            graduation rate for bachelor's degrees (completion in six  
            years or less) is about 59%. A low estimate of potential,  
            undocumented students in medical school can be estimated by  
            applying current rates of enrollment of undergraduate  
            education among undocumented students (10%) and subsequent  
            entry into the field of medicine (about 2%-3%) to estimates of  
            total DACA potentials in the United States (1.8 million). This  
            results in an estimated 5,400 new, largely underrepresented  
            minority physicians in the coming decades. A low estimate,  
            using the same method but imputing the current, general  
            graduation rate (59%) to DACA students, puts the number at  
            about 3,000 potential future physicians.

          5)Financial aid for DACA students. According to the Academic  
            Medicine article, the price tag of a medical education is  
            extremely high. Financing a medical education is a challenge  
            for all medical students, but it is particularly difficult for  
            DACA students because they are legally excluded from receiving  
            federal financial aid. DACA students may be eligible, however,  
            to apply for private need- and merit-based scholarships,  
            private loans, school loans, and institutional aid. Also, some  
            state laws allow undocumented students to apply for publicly  
            funded grants. Medical schools can assist DACA students by  
            offering financial planning advice early on, in order to  
            prevent financial status from being a prohibitive barrier to  








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            their matriculation in the face of limited options for  
            financial assistance. Medical schools can further encourage  
            students to join their programs by creating flexible and  
            generous scholarship packages and providing paid  
            opportunities, such as research positions, within their  
            programs. Whereas some states expect DACA students to pay more  
            expensive international student fees for their education, 12  
            states have passed laws allowing DACA students to qualify for  
            in-state tuition at public universities, including California  
            and Texas, the two states with the largest populations of DACA  
            students. 

          6)California workforce development programs. The state currently  
            operates a number of programs designed to increase the number  
            of health care professionals practicing in medically  
            underserved areas:

               a)     Health Professions Education Foundation (HPEF).  
                 Established in 1987 and housed within OSHPD, HPEF is a  
                 non-profit foundation statutorily created to provide  
                 financial incentives to aspiring and practicing health  
                 professionals.  The foundation offers six scholarships  
                 and seven loan repayment programs in several allied  
                 health professions, including nursing, mental health,  
                 dentistry, and medicine. Scholarship programs provide  
                 financial assistance to healthcare students who are  
                 attending a California accredited college or university  
                 and agree to practice in California's underserved  
                 communities upon graduation. Loan repayment programs are  
                 offered to working health professionals to assist in  
                 repayment of their education debt in exchange for a  
                 service obligation.  Service obligations are typically  
                 one to three years, and vary depending on the program.  
                 Awards range from $4,000 to $105,000 dependent on  
                 profession and length of service obligation. HPEF has  
                 increased access to care in the state's underserved areas  
                 via 6,693 awards totaling more than $60 million to health  
                 practitioner awardees serving in 57 of the state's 58  
                 counties; 
               b)     California State Loan Repayment Program (SLRP).  
                 Provides educational loan repayment assistance to primary  
                 health care professionals who provide health care  
                 services in federally designated Health Professional  
                 Shortage Areas (HPSAs). Eligible health professionals  
                 include physicians specializing in primary care fields,  








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                 nurse practitioners, certified nurse-midwives, general  
                 practice dentists, registered dental hygienists, clinical  
                 or counseling psychologists, clinical social workers,  
                 licensed counselors, pharmacists, physician assistants,  
                 psychiatric nurse specialists, and marriage and family  
                 therapists. Eligible health professionals must be  
                 employed by or have accepted employment at a SLRP  
                 Certified Eligible Site (which includes rural health  
                 clinics, community health clinics, county facilities, and  
                 federally qualified health centers) and must commit to  
                 providing full-time or half-time primary care services in  
                 a HPSA for a minimum of two years. Health professionals  
                 may receive up to  $50,000 in exchange for a two year  
                 full-time service obligation and/or $25,000 for a two  
                 year half-time service obligation; individuals can  
                 receive up to $150,000 over six years at full-time and  
                 $75,00 for half-time. SLRP award amounts are matched by  
                 the site(s) in which the health professional is  
                 practicing, on a dollar-for-dollar basis, in addition to  
                 salary. The SLRP is funded through a grant from the  
                 Health Resources and Services Administration Bureau of  
                 Clinician Recruitment and Service, National Health  
                 Service Corps (NHSC) and is administered by OSHPD; 
               c)     Steven M. Thompson Physician Corps Loan Repayment  
                 Program. This program is available for individuals who  
                 have a valid, unrestricted license to practice medicine  
                 in California as an allopathic or osteopathic physician  
                 and surgeon. This program encourages recently licensed  
                 physicians and surgeons to practice in HPSAs and Primary  
                 Care Shortage Areas (PCSA) in California. Physicians and  
                 surgeons pay an additional $25 fee during initial and  
                 renewal of licensure to fund the program. The program  
                 repays up to $105,000 in educational loans in exchange  
                 for full-time service for a three-year commitment for  
                 those currently employed or who have accepted employment  
                 in an HPSA or PCSA. Priority consideration is given to  
                 applicants who are best suited to meet the cultural and  
                 linguistic needs and demands of patients from medically  
                 underserved populations and who meet one or more of the  
                 following: speak a Medi-Cal threshold language; come from  
                 an economically disadvantaged background; have received  
                 significant training in cultural and linguistically  
                 appropriate service delivery; and have three years of  
                 experience providing health care services to medically  
                 underserved populations or in a medically underserved  








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                 area. Preference is also given to those who agree to  
                 practice in a medically underserved area and who agree to  
                 serve a medically underserved population. Up to 20% of  
                 the available funds may be awarded to program applicants  
                 from specialties outside of the primary care specialties,  
                 including psychiatry, anesthesiology, emergency medicine,  
                 endocrinology and diabetes, general surgery, pediatric  
                 emergency medicine, and child neurology; 
               d)     Song-Brown Program. The Song-Brown Program was  
                 established in 1973 to increase the number of family  
                 physicians in the state and increase the number of family  
                 medicine residency programs. Currently, Song-Brown  
                 provides financial support to family medicine and primary  
                 care residency (Internal Medicine, OB/GYN and Pediatric)  
                 programs, family nurse practitioner programs, primary  
                 care physician assistant training programs, and  
                 registered nurse education programs.  Funding is provided  
                 to institutions that provide clinical training and  
                 education in underserved areas, and healthcare to the  
                 state's underserved population; 
               e)     Mini Grants Program (Mini Grants). Provides grants  
                 to organizations supporting underrepresented and  
                 economically disadvantaged students in pursuit of careers  
                 in health care. Organizations receive grants of up to  
                 $15,000 to engage in health career conferences,  
                 workshops, and/or career exploration activities. Since  
                 2005, over $2.2 million has been awarded to support  
                 organizations engaging in these activities serving nearly  
                 56,000 students statewide. In 2014 to 2015, via partial  
                 funding from Mental Health Services Act (MHSA) Workforce  
                 Education and Training, the California Endowment, and the  
                 California State Office of Rural Health, OSHPD awarded 46  
                 Mini Grants to organizations for a sum of $603,706. This  
                 will help support 16,555 students from demographically  
                 underrepresented groups to pursue healthcare careers;
               f)     California Student/Resident Experiences and  
                 Rotations in Community Health (CalSEARCH.  Provides  
                 grants to organizations that support student and resident  
                 rotations from primary care and mental health disciplines  
                 in community clinics, health centers, and public mental  
                 health system sites which expose students, residents and  
                 practitioners to underserved communities. Organizations  
                 awarded receive funding to administer the program and to  
                 provide students, residents, and preceptors and mentors a  
                 small stipend for completing the program. In addition to  








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                 completing a rotation in an underserved area,  
                 participants are also required to complete a community  
                 project. From 2009 to 2012, 150 students and residents  
                 were supported via an American Recovery and Reinvestment  
                 Act grant. In 2014 to2015, via funding from the MHSA  
                 Workforce Education and Training and The California  
                 Endowment, OSHPD granted 12 awards to organizations for a  
                 sum of $317,000 which will help support 92 participants  
                 statewide; 
               g)     Licensed Mental Health Services Provider Education  
                 Program. This program is available to individuals who are  
                 licensed/registered mental health professionals with  
                 either the Board of Behavioral Sciences or the Board of  
                 Psychology. According to OSHPD, the following individuals  
                 qualify for this program: licensed psychologist,  
                 registered psychologist, postdoctoral psychological  
                 fellow/trainee, LMFT, marriage and family therapist  
                 intern, LCSW, and ACSW. These individuals pay an  
                 additional $10 fee during initial and renewal  
                 license/registration to fund the program. For a 24-month  
                 service obligation at a "qualified facility," providing a  
                 minimum of 32 hours of direct patient care, an individual  
                 may receive up to $15,000 for loan repayment. Applicants  
                 can only receive two awards for a total possible award of  
                 up to $30,000 for loan repayment. "Qualified facility" is  
                                                              defined as: 1) a publicly funded facility, 2) a publicly  
                 funded or public MH facility, or 3) a nonprofit, private  
                 MH facility that contracts with a county MH entity or  
                 facility to provide MH services. Selection of awards is  
                 based on the following criteria: work experience,  
                 cultural and linguistic competence, career goals,  
                 community service, community background, and fluency in a  
                 language other than English. Priority is given to  
                 individuals whose community background and commitment  
                 indicates the likelihood of long-term employment in a  
                 qualified facility even after the service obligation has  
                 ended; and, 
               h)     Mental Health Loan Assumption Program. MHLAP was  
                 created by the MHSA, which provided funding to develop a  
                 loan forgiveness program in order to retain qualified  
                 professionals working within the Public Mental Health  
                 System (PMHS). Through the Workforce Education and  
                 Training component of the Act, $10 million is allocated  
                 yearly to loan assumption awards. An award recipient may  
                 receive up to $10,000 to repay educational loans in  








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                 exchange for a 12-month service obligation in a  
                 hard-to-fill or retain position within the County PMHS.  
                 Counties determine which professions are eligible for  
                 their county's hard-to-fill or retain positions. Some of  
                 the eligible professions include, but are not limited to,  
                 Registered or Licensed Psychologists, Registered or  
                 Licensed Psychiatrists, Postdoctoral Psychological  
                 Assistants, Postdoctoral Psychological Trainees,  
                 Registered or Licensed Marriage and Family Therapists,  
                 Registered or Licensed Clinical Social Workers, Licensed  
                 Professional Clinical Counselors, Licensed Professional  
                 Clinical Counselor Interns, and Registered or Licensed  
                 Psychiatric Mental Health Nurse Practitioners in  
                 California.Support, managerial and/or fiscal staff may be  
                 eligible.

          7)Support.  The Pre-Health Dreamers state that in California  
            alone, there are 285 undocumented students in the PHD network  
            and among them 169 are interested in medicine, 16 in  
            dentistry, 26 in nursing, six in pharmacy, and many others  
            interested in allied health professions.  PHD states that they  
            believe that their members can contribute significantly to the  
            quality of care in California because many are often bilingual  
            and bi-cultural, and are deeply motivated to give back to  
            their communities, which are often underserved.  The  
            California Pan-Ethnic Health Network states that undocumented  
            individuals can serve as key practitioners to address chronic  
            shortages of medical professionals and they deserve to compete  
            in state programs that help defray the cost of their training,  
            especially when their licensing fees support these very  
            programs. Numerous supporters write that most undocumented  
            students, including those in the medical field, face major  
            challenges financing their education because they struggle to  
            access loans, and do not qualify for federal loan forgiveness  
            programs. The Asian Law Alliance writes that this bill will  
            ensure that all individuals who wish to pursue a medical  
            profession may compete for scholarships and loan repayments  
            available under HPEF. The National Immigration Law Center  
            writes that this bill promotes public health by increasing the  
            pool of qualified health professionals who will provide  
            culturally and linguistically competent medical services in  
            underserved areas. The American Academy of Pediatrics,  
            California states that while this bill underwrites a motion  
            that is the ethically right thing to do in support of our  
            medial trainees, it will also further our goals of building a  








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            larger, stronger healthcare workforce. The Western Center on  
            Law and Poverty states that this bill will ensure that all  
            people, regardless of their immigration status, have access to  
            the state's scholarship and loan forgiveness programs for  
            health professionals. Educators for Fair Consideration states  
            that most undocumented students, including those in the  
            medical field, face major challenges financing their education  
            because they struggle to access loans, and do not qualify for  
            federal loan forgiveness programs. SEIU California writes that  
            they are committed to working toward comprehensive immigration  
            reform at the federal level to remove barriers to education  
            for immigrants, however, until those changes can happen at the  
            federal level, they support improvement of state law to ensure  
            that no one is discriminated against based solely on their  
            immigration status.  The California Primary Care Association  
            writes that clinics cannot provide timely, quality, culturally  
            competent care if they do not have the health care workforce  
            needed to provide that care and that this bill w California  
            Pan-Ethnic Health Network il provide for health professional  
            students who plan to practice in the underserved communities  
            of California.

          8)Opposition.  Californians for Population Stabilization writes  
            that there is a limited amount of money available for  
            scholarship and loan forgiveness programs, and giving those  
            funds to illegal immigrants simply reduces the pool available  
            to legal students.  CAPS further asserts that the State of  
            California has done an abysmal job of maintaining  
            infrastructure, protecting open spaces, and providing quality  
            public education, and much of its failure is due to the flood  
            of illegal immigration that has overwhelmed the state. 

          9)Amendments. The author has agreed to take the following  
            amendments:

            (b)  A program within the Health Professions Education  
            Foundation   A program listed in (d)  shall not deny an  
            application based on the citizenship status or immigration  
            status of the applicant.
            (c) For any program  within the Health Professions Education  
            Foundation   listed in (d)  , when mandatory disclosure of a  
            social security number is required, an applicant shall provide  
            his or her social security number, if one has been issued, or  
            an individual tax identification number that has been or will  
            be submitted.








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            (d) This section shall apply to all of the following:
            (1) Programs supported through the Health Professions  
            Education Fund pursuant to Section 128355.
            (2) The Registered Nurse Education Fund created pursuant to  
            Section 128400.
            (3) The Mental Health Practitioner Education Fund created  
            pursuant to Section 128458.
            (4) The Vocational Nurse Education Fund created pursuant to  
          Section 128500.
            (5) The Medically Underserved Account for Physicians created  
            pursuant to Section 128555.
             (6) The Steven M. Thompson Medical School Scholarship Account  
            created pursuant to Section 128580.  
            (7) Loan forgiveness and scholarship programs created pursuant  
            to Section 5820 of the Welfare and Institutions Code.
             (8) The Song-Brown Program created pursuant to 128200.  
             (9) To the extent permitted under federal law, the California  
            State Loan Repayment Program authorized under the U.S. Public  
            Health Services Act Title III, Section 3381(a)-(1) (42 U.S.C.)  
            Section 254q-1(a)-(i).  
             (10) The Mini Grants Program and the CalSEARCH Program created  
            pursuant to Section 127885.  

           SUPPORT AND OPPOSITION  :
          Support:  California Pan-Ethnic Health Network (sponsor)
                    Pre-Health Dreamers (sponsor)
                    American Academy of Pediatrics
                    American Civil Liberties Union of California
                    Asian Law Alliance
                    California Immigrant Policy Center 
                    California Mental Health Connection 
                    California Primary Care Association 
                    California State Council of the Service Employees  
                    International Union (SEIU)
                    Community Health Partnership
                    Courage Campaign 
                    Department of Medicine at the University of  
                    California, Irvine
                    Doctors for America
                    Educators for Fair Consideration 
                    The Greenling Institute
                    Having Our Say Coalition 
                    Health Access California
                    Inland Empire Immigrant Youth Coalition 
                    Latino Medical Student Association 








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                    National Association of Social Workers 
                    National Immigration Law Center
                    Services, Immigrant Right, and Education Network  
                    (SIREN)
                    Stanford University's Latino Medical Student  
                    Association
                    Western Center on Law & Poverty
                    Six Individual Letters
          
          Oppose:   Californians for Population Stabilization

                                      -- END --