BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 589 (Perea)
Hearing Date: 8/25/2011 Amended: 8/17/2011
Consultant: Katie Johnson Policy Vote: Health 9-0
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BILL SUMMARY: AB 589 would establish the Steven M. Thompson
Medical School Scholarship Program. The program would award up
to $105,000 per awardee to eligible medical or osteopathic
school students over the course of their medical school
curricula. The awardee would agree to practice for three years
in either a clinic or a medical practice located in a medically
underserved area.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Scholarships and at least $500 annually
Federal/*
program administration Private
*See Staff Comments
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STAFF COMMENTS: SUSPENSE FILE.
This bill would establish the Steven M. Thompson Medical School
Scholarship Program (Program) within the Health Professions
Education Foundation (Foundation).
A selection committee would be required to develop awardee
selection guidelines that meet specified criteria: 1) provide
priority consideration to applicants who would be best suited to
meet the cultural and linguistic needs and demands of patients
from a medically underserved area, 2) give preference to
applicants who have committed to practicing in family practice,
internal medicine, pediatrics, or obstetrics/gynecology, 3) give
preference to applicants who would serve in a super-medically
underserved area, and 4) include a factor ensuring geographic
distribution of placements.
AB 589 (Perea)
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Scholarship recipients would be required to be students who
agree in writing, prior to completing an accredited medical or
osteopathic school based in the United States, to serve for at
least three years in either a clinic or a medical practice
located in a medically underserved area, as specified. The
maximum award would be $105,000 and would be distributed over
the course of a standard medical school curriculum. This bill
would provide that in the event that an awardee does not
complete medical school and the minimum of three years of
service, the Program would recover the funds awarded and any
related interest.
This bill would create the Steven M. Thompson Medical School
Scholarship Account (Account) within the Health Professions
Education Fund for the purposes of receiving federal or private
funds. Monies in the account would be used for only the
following, upon appropriation by the Legislature: 1)
scholarships, 2) program administrative expenses, and 3)
promoting the education of medical doctors and doctors of
osteopathy, not to exceed 10 percent of the total appropriation
for the program. This bill would provide that the Program would
only be implemented to the extent that the Account contains
sufficient funds as determined by the Foundation. Funds in the
Health Professions Education Fund are continuously appropriated;
it is unclear whether or not the monies in the Account would be
continuously appropriated or would need to be appropriated by
the Legislature, as this bill suggests. Staff recommends that
this bill be amended to establish the Account within the State
Treasury and that monies contained in the Account be made
available upon appropriation by the Legislature.
Fiscal Impact
In order to establish regulations and guidelines and to
administer such a Program, the Foundation would need at least
half a personnel year, approximately $50,000 annually. Since
administrative funds are limited to 10 percent of the total
Program appropriation, the Program would require an account
balance of at least $500,000 annually. Although this bill would
specify that monies in the Account would consist of federal and
private funds, no specific funding sources have been identified.
Thus, there would be General Fund cost pressure to fund this
program if federal and private monies do not materialize.
Program costs could increase depending on the number of
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scholarships it chose to award.