BILL ANALYSIS                                                                                                                                                                                                    



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          ASSEMBLY THIRD READING
          AB 2551 (Hernandez)
          As Amended  April 26, 2010
          Majority vote 

           BUSINESS & PROFESSIONS  7-4     APPROPRIATIONS      11-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Hayashi, Eng, Hernandez,  |Ayes:|Fuentes, Hill, Bradford,  |
          |     |Hill, Ma, Nava, Ruskin    |     |Charles Calderon, Coto,   |
          |     |                          |     |Davis, Hall, Skinner,     |
          |     |                          |     |Solorio, Torlakson,       |
          |     |                          |     |Torrico                   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Emmerson, Conway, Niello, |Nays:|Conway, Harkey, Miller,   |
          |     |Smyth                     |     |Nielsen, Norby            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Establishes the California Pharmacy Technician  
          Scholarship and Loan Repayment Program (Program) for the  
          repayment of pharmacy technician (PT) education loans.   
          Specifically,  this bill  :  

          1)Permits the Health Professions Education Foundation (HPEF) to  
            solicit and receive funds from business, industry,  
            foundations, and other private and public sources for the  
            purpose of providing financial assistance in the form of  
            scholarships and loans through the Program.

          2) Establishes the Program within HPEF.

          3)Requires the Program to provide scholarships to pay for the  
            educational expenses of PT school students and to repay  
            qualifying educational loans of PTs who agree to participate  
            in designated medically underserved areas as provided in this  
            section.  

          4)Requires HPEF to administer the Program according to the  
            general guidelines applicable to the federal National Health  
            Service Corps Scholarship Program and the National Health  
            Service Corps Loan Repayment Program, except that:

             a)   A PT or PT student shall be eligible to participate in  








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               the program if he or she agrees to provide PT services in a  
               practice site located in an area of the state where unmet  
               priority needs for primary care family physicians exist as  
               determined by the Health Workforce Policy Commission; and,

             b)   No matching funds shall be required from any entity in  
               the practice site area. 

          5)Requires the Program be implemented only to the extent that  
            sufficient money is available to administer the Program.

          6)Establishes the Program Fund in the State Treasury for any  
            private or public funds to the Program. 

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee: 

          1)No direct fiscal impact is created by authorizing the HPEF  
            within the Office of Statewide Health Planning and Development  
            to accept donations to support the loan fund established by  
            this bill. 

          2)Several other similar health professions loan programs are  
            supported by surcharges included in annual licensure  
            processes. This bill does not contain a similar self-funding  
            mechanism.

           COMMENTS  :  According to the author's office, "While PTs are the  
          second largest field within Allied Health, there is no  
          comprehensive statewide public or private financial aid program  
          to meet the needs of PTs.  Becoming a PT requires an associate  
          degree in pharmacy technology, completion of a 240-hour training  
          course accredited by the American Society of Health-System  
          Pharmacists, or graduation from a school of pharmacy accredited  
          by the American Council on Pharmaceutical Education.   
          Post-secondary education tuition ranges from [approximately]  
          $1664 in fees at a community college ($23,306 total cost) to  
          over $23,000 at a career or vocational college (not including  
          supplies or cost of living).  Unfortunately, very few community  
          colleges in California provide training to become PTs, so most  
          students rely on private, costly education to become licensed.

          "California is one of the bottom 5 states with the greatest  
          unmet demand in PTs.  In addition to preparing, packaging, and  








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          distributing prescriptions, PTs often serve on the frontline of  
          health care delivery, assisting pharmacists with language and  
          cultural competency issues for patients.  Demand for PTs will  
          increase significantly due to higher pharmaceutical demands by a  
          growing aging population, the need to replace workers to  
          transfer to other populations or leave the labor force, and  
          increased reliance on PTs by insurers, pharmacies and health  
          systems for the purposes of cost-containment."

          PTs help licensed pharmacists prepare prescription medications,  
          provide customer service, and perform administrative duties  
          within a pharmacy setting.  PTs generally are responsible for  
          receiving prescription requests, counting tablets, and labeling  
          bottles, while pharmacy aides perform administrative functions  
          such as answering phones, stocking shelves, and operating cash  
          registers. 


          HPEF provides scholarships and loan repayments to aspiring and  
          practicing health professionals who agree to practice in a  
          medically underserved area.  Scholarships are offered to health  
          professional students attending one of California's accredited  
          colleges or universities. Loan repayment programs are offered to  
          graduates pursuing a health professional career to assist in the  
          repayment of educational debt.  Scholarships and loan repayments  
          are offered to students and graduates from allied health,  
          nursing, mental health, medical and dental.  The Foundation  
          administers the following funds and scholarship and loan  
          repayment programs:   


          1)The Vocational Nurse Education Fund:

             a)   Funded through a $5.00 surcharge for renewal of the  
               Vocational Nurse license in California; and,

             b)   Supports the Vocational Nurse Scholarship, Licensed  
               Vocational Nurse to Associate Degree Nursing and Licensed  
               Vocational Nurse Loan Repayment programs.

          2)The Registered Nurse Education Fund:

             a)   Funded through a $10.00 surcharge for renewal of the  
               Registered Nurse (RN) license in California; and,








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             b)   Supports the Associate Degree Nursing Scholarship (ADN),  
               the Bachelor of Science Nursing Scholarship (BSN), and the  
               Bachelor of Science Nursing Loan Repayment (BNSLRP).

          3)The Mental Health Practitioner Education Fund:

             a)   Funded through a $10.00 surcharge for renewal of  
               Psychologist, Marriage and Family Therapist, and Licensed  
               Clinical Social Worker licenses in California; and,

             b)   Supports the Licensed Mental Health Service Provider  
               Education Program.

          4)Mental Health Services Act Fund:

             a)   Funded by Proposition 63, the Mental Health Services  
               Act, passed by voters in 2004 provides $2.5 million per  
               year; and,

             b)   Supports the Mental Health Loan Assumption Program.

          5)The Health Professions Education Fund:

             a)   Supported entirely through grants and contributions from  
               public and private agencies, hospitals, health plans,  
               foundations, corporations, and individuals; and,

             b)   Supports the Allied Healthcare Education Scholarship,  
               the Health Professions Education Scholarship, the Health  
               Professions Loan Repayment, and the Steven M. Thompson  
               Physician Loan Repayment Program (STLRP).

          6)Medically Underserved Account for Physicians:

             a)   Funded through a $25.00 surcharge for renewal of  
               allopathic physician licenses in California and through the  
               Managed Care Administrative Fines and Penalties Fund; and,

             b)   STLRP supports recently licensed physicians.

          Those students and graduates who receive awards from HPEF are  
          dedicated to practicing direct patient care in medically  
          underserved areas of California.  Service obligations are  








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          typically one to four years and vary depending on the program.


           Analysis Prepared by  :    Sarah Weaver / B.,P. & C.P. / (916)  
          319-3301 

                                                               FN:  0004406