SECTIONS 2200-2213 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 2200-2213

2200. California is currently experiencing a geographical and
specialty maldistribution of physicians and surgeons. It is the
intent of the Legislature to address these problems by assisting
licensed physicians and surgeons in establishing medical practices in
areas deficient in physician services and primary care specialties.

2201. For the purposes of this article:
(a) "Commission" means the California Healthcare Workforce Policy
Commission.
(b) "Division" means the Division of Licensing of the Medical
Board of California.
(c) "Practice of medicine" or "medical practice" means all
activities authorized by a physician's and surgeon's certificate,
except activities performed in the course of employment as a public
health officer, as a medical school faculty member where teaching
time is more than 25 percent of the working day, or as a resident or
first-year postgraduate trainee.
(d) "Primary care services" means those medical services involving
the specialties of general practice, family practice, general
internal medicine, obstetrics, gynecology, and general pediatrics.

2202. The division shall administer the loan program to licensed
physicians and surgeons.

2204. No licensed physician and surgeon shall be awarded a loan
under this article unless he or she meets the following requirements:
(a) The applicant is licensed as a physician and surgeon by the
board at the time the loan is made.
(b) The applicant agrees to establish a medical practice in an
area deficient in primary care services within 180 days from the date
the loan is made.
(c) The applicant agrees to report a change of his or her medical
practice to the division within 30 days from the date of the change.

2205. Applications for loans shall be made to the division, upon
forms provided by it, at the times and in the manner prescribed by
the regulations adopted by the division.

2206. The division shall award loans on the basis of local need and
those areas of the state which are deficient in primary care
services, as determined by the commission, to applicants it
determines will establish medical practices in such areas.

2208. Loans made pursuant to this article shall be repayable to the
Contingent Fund of the Medical Board of California or cancelled
under the following conditions:
(a) A licensed physician and surgeon who establishes and maintains
a medical practice in an area deficient in primary care services for
less than one year shall repay the total amount of the loan, in
addition to accrued interest charges.
(b) A licensed physician and surgeon who establishes and maintains
a medical practice in an area deficient in primary care services for
more than one year, but less than two years, shall repay half the
total amount of the loan, in addition to accrued interest charges.
(c) The total amount of the loan and all accrued interest shall be
canceled for a licensed physician and surgeon who establishes and
maintains a medical practice in an area deficient in primary care
services for more than two years from the date the loan is made.

2209. The liability to repay the loan shall be cancelled upon the
death of the borrower, or if the division determines that he or she
has become permanently disabled and is unable to engage in
substantial gainful activity.

2210. (a) In addition to the principal of the loan, interest shall
accrue on the principal of all loans made at a rate which shall be
two percentage points less than the authorized interest rate on
California Water Bonds at the time the application is filed. Interest
shall accrue from the date the loan is made until it is repaid
unless the loan is canceled pursuant to Section 2208 or 2209.
(b) Loans made pursuant to this article which are not canceled
shall be repayable to the Contingent Fund of the Medical Board of
California under the terms specified in such loan agreements in
periodic installments, according to the schedule agreed upon by the
division and the borrower, over a 10-year period which shall begin
one year after the borrower ceases to operate his or her medical
practice in an area deficient in primary care services, excluding
from such 10-year period all periods, up to three years, of (1)
active duty performed by the borrower as a member of the armed forces
of the United States, or (2) nonmilitary public service performed by
the borrower which the division finds to be in the public interest.

2212. The division may assess a charge with respect to a loan made
under this article for failure of the borrower to pay all or part of
an installment when due and, in the case of a borrower who is
entitled to a loan cancellation under Section 2208, for any failure
to file timely and satisfactory evidence of such entitlement. The
amount of any such charge may not exceed five dollars ($5) for each
month by which the installment or evidence is late, except that there
shall be no charge for the first month.

2213. The commission shall, under the provisions of this article,
make a determination in priority as to which areas of the state are
deficient in primary care services and the degree to which these
areas are underserved. This study shall be updated biennially and
shall be the basis for notifying loan recipients of areas which will
satisfy the loan repayment provisions of this article.