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AB-2239 Health care: physician loan repayment.(2019-2020)

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Date Published: 02/13/2020 09:00 PM
AB2239:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 2239


Introduced by Assembly Members Maienschein and Chiu

February 13, 2020


An act to amend Section 1341.45 of the Health and Safety Code, relating to health care.


LEGISLATIVE COUNSEL'S DIGEST


AB 2239, as introduced, Maienschein. Health care: physician loan repayment.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care. Existing law creates the Managed Care Administrative Fines and Penalties Fund, into which certain fines and penalties paid by health care service plans are deposited. Under existing law, $1,000,000 is annually transferred from the Managed Care Administrative Fines and Penalties Fund to the Medically Underserved Account for Physicians to be used, upon appropriation by the Legislature, to repay the loans of physicians in medically underserved areas through the Steven M. Thompson Physician Corps Loan Repayment Program.
This bill would instead require $2,000,000 to be annually transferred from the Managed Care Administrative Fines and Penalties Fund to the Medically Underserved Account for Physicians.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1341.45 of the Health and Safety Code is amended to read:

1341.45.
 (a) There is hereby created in the State Treasury the Managed Care Administrative Fines and Penalties Fund.
(b) The fines and administrative penalties collected pursuant to this chapter, on and after September 30, 2008, chapter shall be deposited into the Managed Care Administrative Fines and Penalties Fund.
(c) The fines and administrative penalties deposited into the Managed Care Administrative Fines and Penalties Fund shall be transferred by the department, beginning September 1, 2009, and annually thereafter, as follows:
(1) The first one million dollars ($1,000,000) two million dollars ($2,000,000) shall be transferred to the Medically Underserved Account for Physicians within the Health Professions Education Fund and shall, upon appropriation by the Legislature, be used for the purposes of the Steven M. Thompson Physician Corps Loan Repayment Program, as specified in Article 5 (commencing with Section 128550) or Chapter 5 of Part 3 of Division 107 and, notwithstanding Section 128555, shall not be used to provide funding for the Physician Volunteer Program.
(2) Any amount over the first one million dollars ($1,000,000), two million dollars ($2,000,000), including accrued interest, in the fund shall be transferred to the Health Care Services Plan Fines and Penalties Fund created pursuant to Section 15893 of the Welfare and Institutions Code and, notwithstanding Section 13340 of the Government Code, shall be continuously appropriated for the purposes specified in Section 15894 of the Welfare and Institutions Code.
(d) Notwithstanding subdivision (b) of Section 1356 and Section 1356.1, the fines and administrative penalties authorized pursuant to this chapter shall not be used to reduce the assessments imposed on health care service plans pursuant to Section 1356.

(e)The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2014.

(f)The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2017.