BILL ANALYSIS
SB 606
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Date of Hearing: August 19, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
SB 606 (Ducheny) - As Amended: June 18, 2009
Policy Committee: Business &
Professions Vote: 11-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes a $25 fee to be charged to licensees of
the Osteopathic Medical Board of California (OMBC), requires the
special fund revenues generated to be used to support the
Stephen M. Thompson Loan Repayment Program (loan program), and
allows OMBC licensees to participate in the loan program.
FISCAL EFFECT
Annual increased special fund fee collections from OMBC
licensees to support the loan program of $50,000 to $70,000.
COMMENTS
1)Rationale . This bill builds on recent efforts to bring
financial support to the Stephen M. Thompson Loan Repayment
Program by adding a $25 fee to the annual licensure process
for osteopathic physicians. The training of osteopathic
physicians is similar to the training of physicians under the
jurisdiction of the Medical Board of California (MBC).
Osteopathic physicians rely on conventional methods of
diagnosis and treatment and place emphasis on body mechanics
as the foundation to good health.
2)The Thompson Loan Repayment Program . AB 982 (Firebaugh),
Chapter 1131, Statutes of 2002, created the Physician Corps
Loan Repayment Program. AB 1403 (Nunez), Chapter 367,
Statutes of 2004, renamed the California Physician Corps Loan
Repayment Program as the Thompson Program. The loan program
repays up to $105,000 in government or commercial educational
loans for expenses incurred for undergraduate education and
SB 606
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graduate medical education for physicians who agree to
practice in medically underserved areas. Physicians in the
loan repayment program must serve three years and priority
consideration is given to applicants who meet the cultural and
linguistic needs of a particular area.
3)Thompson Loan Funding History . This bill is part of a
continuing effort to increase the support dedicated to
physician loan repayment under the Thompson Program. Initial
state funding for the program of $3.4 million came from the
MBC Contingent Fund. From 2003-04 to 2007-08, the program
received $983,000 in private donations and grants. SB 1379
(Ducheny), Chapter 607, Statutes of 2008 requires $1 million
of annual health plan fines to be shifted from the Department
of Managed Health Care (DMHC) administrative budget to the
Thompson Loan Program. AB 2439 (De La Torre), Chapter 640,
Statutes of 2008, requires the MBC to assess a $25 fee for the
initial license and license renewal of a physician or surgeon
to support the Thompson Loan Program. An annual $1.6 million
is expected from AB 2439 fees to support the loan program.
Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081