BILL ANALYSIS �
AB 589
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 589 (Perea)
As Amended August 21, 2012
Majority vote
-----------------------------------------------------------------
|ASSEMBLY: |63-10|(June 1, 2011) |SENATE: |38-0 |(August 22, |
| | | | | |2012) |
-----------------------------------------------------------------
Original Committee Reference: B.,P. & C.P.
SUMMARY : Establishes the Steven M. Thompson Medical School
Scholarship Program (Program) to promote the education of
medical doctors and doctors of osteopathy, as specified.
The Senate amendments :
1)Clarify that Program participants shall agree in writing,
prior to completing an accredited medical or osteopathic
school based in the United States, to serve in an eligible
practice setting, as specified.
2)Clarify the process for determining leaves of absence during
medical school or service obligation.
3)Require the selection committee to use guidelines developed by
the Office of Statewide Health Planning and Development
(OSHPD) that meet specified criteria to select scholarship
recipients.
4)Require the OSHPD to develop the guidelines for scholarship
selection criteria only upon the receipt of donations that are
sufficient to cover the costs of developing the guidelines.
5)Clarify that if the Program participant does not complete
medical school and the three years of professional service, as
specified, the OSHPD is authorized to recover the funds
awarded plus maximum allowable interest, as specified.
6)Prohibit the use of the Steven M. Thompson Physician Corps
Loan Payment Program (Loan Payment Program) funds to fund the
program.
7)Provide that the Steven M. Thompson Medical School Scholarship
AB 589
Page 2
Account be used to pay for the cost of administering the
Program and for any other purpose authorized by this bill.
8)Require the Steven M. Thompson Medical School Scholarship
Account (Account) to consist of private moneys donated to the
program.
9)Provide that the cost of administering the Program, including
promoting the education of medical doctors and doctors of
osteopathy in an accredited school who agree to serve in an
eligible setting and related administrative costs shall not
exceed 10% of the total appropriation for the Program.
EXISTING LAW :
1)Establishes the Medically Underserved Account for Physicians
within the Health Professions Education Fund (Education Fund),
managed by the Health Professions Education Foundation and the
OSHPD, with the primary purpose of funding the 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 of the state, under
the Loan Repayment Program.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version approved by the Senate.
FISCAL EFFECT : According to the Senate Appropriations
Committee, 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% 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 scholarships it chose
to award.
AB 589
Page 3
Analysis Prepared by : Elissa Silva / B.,P. & C.P. / (916)
319-3301
FN: 0005329