BILL ANALYSIS �
AB 589
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ASSEMBLY THIRD READING
AB 589 (Perea)
As Amended May 27, 2011
Majority vote
BUSINESS & PROFESSIONS 6-3
APPROPRIATIONS 12-5
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|Ayes:|Hayashi, Allen, Butler, |Ayes:|Fuentes, Blumenfield, |
| |Eng, Hill, Ma | |Bradford, Charles |
| | | |Calderon, Campos, Davis, |
| | | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bill Berryhill, Hagman, |Nays:|Harkey, Donnelly, |
| |Smyth | |Nielsen, Norby, Wagner |
| | | | |
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SUMMARY : Establishes the Steven M. Thompson Medical School
Scholarship Program (Program) to promote the education of
medical doctors and doctors of osteopathy, as specified.
Specifically, this bill :
1)Establishes the Program within the Health Professions
Education Foundation (Foundation).
2)States intent that the Foundation and the Office of Statewide
Health Planning and Development (Office) provide the ongoing
program management for the Program.
3)Specifies that the Program be used only for the purpose of
promoting the education of medical doctors and doctors of
osteopathy and related administrative costs.
4)Requires Program participants to commit prior to entering an
accredited medical or osteopathic school in writing to three
years of full-time professional practice once the participant
has achieved full licensure, and after completing an
accredited residency program, in direct patient care, in an
eligible practice setting, as specified.
5)Provides that the maximum allowable amount per total
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scholarship is $105,000, distributed over the course of a
standard medical school curriculum, increasing to ensure that
at least 45% of the total scholarship award is distributed
upon matriculation in the final year of school.
6)Authorizes the Office to recover the funds awarded plus the
maximum allowable interest in the event the Program
participant does not complete the minimum three years of
professional service pursuant to his or her contractual
agreement with the Foundation.
7)Establishes certain criteria for selecting scholarship
recipients, as specified.
8)Establishes the Steven M. Thompson Medical School Scholarship
Account (Scholarship Account) within the Health Professions
Education Fund (Education Fund), for the purpose of receiving
federal or private funds.
9)Provides that funds in the Scholarship Account be used to fund
scholarships pursuant to agreements made with recipients and
as follows:
a) Scholarships shall not exceed $105,000 per recipient;
and,
b) Scholarships shall not exceed the amount of the
educational expenses incurred by the recipient.
10)Provides that funds placed in the Scholarship Account be used
for the implementation of this bill upon appropriation by the
Legislature.
11)Specifies that the Scholarship Account be used to pay for the
cost of administering the Program, not exceeding 5% of the
total appropriation for the Program.
12)Requires the Office and Foundation to manage the Scholarship
Account established by this bill, prudently in accordance with
other provisions of law.
13)Provides that this bill be implemented only to the extent
that the Scholarship Account contains sufficient funds as
determined by the Foundation.
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EXISTING LAW :
1)Establishes the Medically Underserved Account for Physicians
within the Education Fund, managed by the Foundation and the
Office, with the primary purpose of funding the Steven M.
Thompson Physician Corps Loan Repayment Program (Loan
Repayment Program).
2)Provides up to $105,000 for the repayment of prescribed
educational loans obtained by a physician and surgeon who
practices in a medically underserved area (MUA) of the state,
under the Loan Repayment Program.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, negligible direct state impact.
COMMENTS : According to the author, "This bill seeks to address
shortages of physician services, particularly primary care
physician services, that exist in over 200 distinct regions of
California identified as MUAs. This bill also aims to make
medical school more financially accessible for those students
willing to pursue careers in primary care and practice medicine
in MUAs. This bill is necessary to address the growing
geographical disparity of physician supply in California, as
well as the rapidly increasing cost of a medical education,
which is increasingly a barrier to entry for students from
economically disadvantaged backgrounds."
California's population is growing rapidly and aging, increasing
a greater demand for physicians than ever before. It is also
becoming more culturally and ethnically diverse, and many areas
that have traditionally been medically underserved are expected
to see the greatest population growth. At the same time, many
of California's physicians are approaching retirement
themselves, and the pipeline designed to replace them is
experiencing key bottlenecks in both medical school and
residency training. Medical school debt is also growing faster
than physician income, and is one of the primary reasons the
supply of primary care physicians is lagging even further behind
that of specialists.
The Foundation offers the Loan Repayment Program to encourage
physicians to practice in MUAs of California by authorizing a
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plan for repayment of their educational loans. Physicians may
receive up to $105,000 in exchange for their service in a
designated MUA area for a minimum of three years. Loan
repayment recipients are required to sign a written contract
with the Foundation outlining the provisions which must be met
in order to fulfill the obligations under this program. Failure
to comply with the terms of the contract may result in the
awardee's repayment of funds plus interest.
The Loan Repayment Program is funded by voluntary contributions
made as part of physician licensure fees and other voluntary
sources. The Program established under this bill would
similarly be funded by voluntary federal or private sources.
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301
FN: 0001124