BILL ANALYSIS
AB 501
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Date of Hearing: May 6, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 501 (Emmerson) - As Amended: April 13, 2009
Policy Committee: Business &
Professions Vote: 11-0
Urgency: No State Mandated Local
Program:YesReimbursable: No
SUMMARY
This bill authorizes the Medical Board of California (MBC) to
issue a limited license to physicians who are unable to fulfill
a full scope of practice due to a disability and makes several
changes related to MBC licensing and fees. Specifically, this
bill:
1)Establishes parameters related to the limited license
category.
2)Authorizes medical school graduates and those who are enrolled
in additional graduate education to use "M.D." while training,
as long they do not imply they are authorized to care for
patients.
3)Establishes the current law licensing fee of $790 as a fee cap
to allow the MBC to flex the fee and reduce the amount when
reserves have accrued, per findings of a recent Bureau of
State Audits report.
4)Requires the BSA to conduct a review of the board's financial
status and report their findings by June 1, 2012.
FISCAL EFFECT
1)Fee-supported special fund costs of $135,000 to MBC to
contract with the BSA to complete a study about the impact of
GF loans in the 2008 Budget Act by 2012.
2)Minor absorbable workload to the MBC to establish the limited
license and continue oversight of medical professionals in
AB 501
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California.
COMMENTS
1)Rationale . This bill is in sponsored by MBC to establish a
limited license for some doctors, clarify the use of "M.D.",
create flexibility in the annual licensing fee, and require a
BSA report. The MBC provides professional oversight of more
than 120,000 physicians statewide according to the Medical
Practices Act. The creation of limited license in California
will allow physicians with disabilities to continue practice
medicine safely and effectively.
2)Background . SB 231 (Figueroa), Chapter 674, Statutes of 2005,
established the initial application and biennial renewal
licensing fees of $790. However the MBC does not have the
statutory authority to adjust its fees to maintain operating
reserves according to current law. This bill provides MBC with
flexibility to adjust fees and maintain appropriate reserves.
3)BSA Report on Reserves . A recently published BSA report
reviewed MBC financial status, projections related to
expenses, revenues, and reserves, and the amount of refunds or
licensure fee adjustments needed to maintain the mandated
reserve balance.
The BSA concluded reserves have been well above mandated levels.
In 2006-07 the fund balance increased to $18.5 million, which
is nearly 4.3 months of reserves, more than twice what is
authorized under current law. The MBC has overestimated
expenditures by at least $2 million in each of the prior four
years. This bill gives MBC more flexibility to address these
issues and the new BSA report required by the bill provides
additional feedback in 2012.
4)Related Legislation . AB 547 (Ma) in 2008 also required a BSA
report on MBC financial issues. AB 547 was vetoed last year
due to the budget delay.
Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081