Enrolled Bill Summary

Senate Bill 18	Senate Author:  Nelson et al.
Effective:  9-1-15	House Sponsor:  Zerwas

            Senate Bill 18 amends the Education Code to establish the permanent fund supporting graduate medical education and revises provisions relating to grants for such education programs, amends the Insurance Code to transfer certain assets from the Texas Medical Liability Insurance Underwriting Association to the permanent fund supporting graduate medical education and to limit the association's authority to issue or renew policies, and amends the Health and Safety Code to require the comprehensive health professions resource center to conduct certain research.

The bill establishes the permanent fund supporting graduate medical education as a special fund in the treasury outside the general revenue fund, administered by the Texas Treasury Safekeeping Trust Company, and sets out the composition and administration of the fund. The bill requires the comptroller of public accounts to adopt a distribution policy for the fund and the trust company to determine the amount available for distribution from the fund in accordance with the policy. The bill limits appropriations from the fund and sets out requirements for the Texas Higher Education Coordinating Board relating to reduction in funding for grant recipients. The bill renames planning grants as graduate medical education planning and partnership grants, revises provisions relating to grants for graduate medical education programs, and removes deadlines for the application of such grants. The bill provides for the coordinating board's determination of critical shortage levels and the awarding of new grants to medical specialties determined by the coordinating board to be at critical shortage levels.

            Among other provisions, the bill requires the Texas Department of Insurance (TDI) to complete an actuarial study to determine the amount of Texas Medical Liability Insurance Underwritering Association assets necessary to cover certain insurance claims and costs of the association and requires the association to cooperate with TDI in completing the study and to transfer the amount of assets not necessary for such claims and costs to the permanent fund supporting graduate medical education. The bill requires the commissioner of insurance to determine whether a necessity exists to suspend the association's authority to issue new insurance policies and, if the commissioner determines that such a necessity exists, to order the association to cease issuing new policies immediately. The bill prohibits the association from issuing a new policy before a specified date but authorizes the association to continue to renew policies in effect immediately before the effective date of the commissioner's order in accordance with the association's plan of operation.