BILL NUMBER: SB 635INTRODUCED BILL TEXT INTRODUCED BY Senator Hernandez FEBRUARY 18, 2011 An act to amend Section 1341.45 of the Health and Safety Code, relating to health care. LEGISLATIVE COUNSEL'S DIGEST SB 635, as introduced, Hernandez. Health care: workforce training. Existing law provides for the licensing and regulation of health care service plans by the Department of Managed Health Care and imposes certain requirements on health care service plans. Existing law imposes various fines and administrative penalties for certain violations of these provisions, which are deposited in the Managed Care Administrative Fines and Penalties Fund. Existing law requires the first $1,000,000 in the fund to be transferred each year to the Medically Underserved Account for Physicians in the Health Professions Education Fund for purposes of the Steven M. Thompson Physician Corps Loan Repayment Program. Existing law requires all remaining funds to be transferred each year to the Major Risk Medical Insurance Fund for purposes of the Major Risk Medical Insurance Program. This bill, beginning on January 1, 2014, would instead require all remaining funds over the first $1,000,000 to be transferred each year to the Office of Statewide Health Planning and Development for the purposes of the Song-Brown Health Care Workforce Training Act. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated 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 the operative date of this section, 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) 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(A) Prior to January 1, 2014, any amount over the first one million dollars ($1,000,000), including accrued interest, in the fund shall be transferred to the Major Risk Medical Insurance Fund created pursuant to Section 12739 of the Insurance Code and shall, upon appropriation by the Legislature, be used for the Major Risk Medical Insurance Program for the purposes specified in Section 12739.1 of the Insurance Code. (B) On and after January 1, 2014, any amount over the first one million dollars ($1,000,000), including accrued interest, in the fund shall be transferred to the Office of Statewide Health Planning and Development and shall, upon appropriation by the Legislature, be used for the purposes specified in the Song-Brown Health Care Workforce Training Act (Article 1 (commencing with Section 128200) of Chapter 4 of Part 3 of Division 107). (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.