By Rangel                                             H.B. No. 2689
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the distribution of certain fees collected and tuition
    1-3  charged at medical schools, the establishment of health care
    1-4  accounts, the establishment of medical loan forgiveness accounts,
    1-5  the establishment of the medical loan forgiveness program and
    1-6  establishing primary care mission statements, strategic plans and
    1-7  reporting for medical schools.
    1-8        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-9        SECTION 1.  This Act may be cited as the Omnibus Health
   1-10  Professional Shortage Act.
   1-11        SECTION 2.  Section 51.002(a), Education Code, is amended to
   1-12  read as follows:
   1-13        (a)  Except as provided by Section 51.0085 of this code, the
   1-14  <The> governing board of each institution listed in Section 51.001
   1-15  of this code may retain control of the following sums of money
   1-16  collected at the institution, subject to Section 51.008 of this
   1-17  code:
   1-18              (1)  student fees of all kinds;
   1-19              (2)  charges for use of rooms and dormitories;
   1-20              (3)  receipts from meals, cafes, and cafeterias;
   1-21              (4)  fees on deposit refundable to students under
   1-22  certain conditions;
   1-23              (5)  receipt from school athletic activities;
    2-1              (6)  income from student publications and other student
    2-2  activities;
    2-3              (7)  receipt from the sale of publication products and
    2-4  miscellaneous supplies and equipment;
    2-5              (8)  students' voluntary deposits of money for
    2-6  safekeeping;
    2-7              (9)  all other fees and local or institutional funds
    2-8  arising out of and by virtue of the educational activities,
    2-9  research, or demonstrations carried on by the institution; and
   2-10              (10)  donations and gifts to the institution.
   2-11        SECTION 3.  Subchapter A, Chapter 51, Education Code, is
   2-12  amended by adding Section 51.0085 to read as follows:
   2-13        Sec. 51.0085.  CERTAIN HOSPITAL, CLINIC, AND DOCTOR FEES.  In
   2-14  this section:  (a) "medically underserved area" means an area
   2-15  designated by the United States Secretary of Health and Human
   2-16  Services as having:
   2-17              (1)  a shortage of personal health services or a
   2-18  population group that has such a shortage as provided by 42 U.S.C.
   2-19  Section 300e-1(7); or
   2-20              (2)  a health professional shortage as provided by 42
   2-21  U.S.C. Section 254e(a)(1).
   2-22        (b)  A special account known as the health care account is
   2-23  created in the general revenue fund.
   2-24        (c)  The governing board of each medical school, as defined
   2-25  by Section 61.501 of this code, shall remit to the state treasurer
    3-1  twenty percent (20%) of all hospital, clinic, and doctor fees
    3-2  collected by the medical school.  The state treasurer shall deposit
    3-3  money remitted under this section to the credit of the health care
    3-4  account.  The percentage of all hospital, clinic and doctor fees
    3-5  collected by each medical school and remitted to the health care
    3-6  account shall increase by an additional five percent (5%) each year
    3-7  commencing in fiscal year 1996 until an individual medical school
    3-8  can demonstrate that fifty percent (50%) of their graduates are
    3-9  completing residencies and practicing in the primary care
   3-10  specialties of family practice, general practice, general internal
   3-11  medicine, general pediatric medicine or general obstetrics and
   3-12  gynecology.
   3-13        (d)  The health care account consists of money credited to
   3-14  the fund under Subsection (c) of this section, gifts, grants, and
   3-15  funds appropriated by the legislature.
   3-16        (e)  Money in the account may be appropriated only to the
   3-17  governing board of each medical school for primary patient care
   3-18  personnel and programs, educational personnel and support,
   3-19  institutional development and recruitment and new program
   3-20  development that encourages health profession students in medicine,
   3-21  nursing, dentistry or allied health to specialize in primary care
   3-22  delivery in medically underserved areas.
   3-23        (f)  Money in the account appropriated to the governing board
   3-24  of each medical school may not be expended unless the governing
   3-25  board of each medical school shall first submit, and have approved
    4-1  by the Higher Education Coordinating Board, a plan describing the
    4-2  specific uses of funds in the health care account.  The plan must
    4-3  include, at a minimum, provisions relating to:
    4-4              (1)  recruitment and admissions of students from
    4-5  medically underserved areas and populations;
    4-6              (2)  promotion, tenure and development of primary care
    4-7  faculty;
    4-8              (3)  team-training for students in all health
    4-9  profession degree programs;
   4-10              (4)  support for third-year clerkships in family
   4-11  medicine;
   4-12              (5)  creation of endowed chairs in primary care,
   4-13  preventive and public health in all health profession schools; and,
   4-14              (6)  establishment of affiliation agreements with
   4-15  hospitals and clinics in medically underserved areas that provide
   4-16  for rotations of health profession students through these settings.
   4-17        (g)  The initial annual plan required in subsection (f) must
   4-18  be submitted no later than April 1, 1996, and approved for
   4-19  implementation by no later than July 1, 1996.
   4-20        SECTION 4.  Section 51.009(c), Education Code, is amended to
   4-21  read as follows:
   4-22        (c)  Each of the following shall be accounted for as
   4-23  educational and general funds:  net tuition, special course fees
   4-24  charged under Sections 54.051(e) and (l), Education Code, lab fees,
   4-25  student teaching fees, hospital, <and> clinic, and doctor fees,
    5-1  organized activity fees, proceeds from the sale of educational and
    5-2  general equipment, and indirect cost recovery fees.
    5-3        SECTION 5.  Section 51.008(b), Education Code, is amended to
    5-4  read as follows:
    5-5        (b)  Except as provided by Section 51.0085 of this code, the
    5-6  <The> governing board of every state institution of higher
    5-7  education shall deposit in the state treasury all cash receipts
    5-8  accruing to any college or university under its control that may be
    5-9  derived from all sources except auxiliary enterprises,
   5-10  noninstructional services, agency, designated, and restricted
   5-11  funds, endowment and other gift funds, student loan funds, funds
   5-12  retained under Chapter 145 of this code, and Constitutional College
   5-13  Building Amendment funds.  The state treasurer is directed to
   5-14  credit such receipts deposited by each such institution to a
   5-15  separate fund account for the institution depositing the receipts,
   5-16  but he shall not be required to keep separate accounts of types of
   5-17  funds deposited by each institution.  For the purpose of
   5-18  facilitating the transferring of such institutional receipts to the
   5-19  state treasury, each institution shall open in a local depository
   5-20  bank a clearing account to which it shall deposit daily all such
   5-21  receipts, and shall, not less often than every seven days, make
   5-22  remittances therefrom to the state treasurer of all except $500 of
   5-23  the total balance in said clearing account by the duly authorized
   5-24  officers of the institution, and no disbursements other than
   5-25  remittances to the state treasury shall be made from such clearing
    6-1  account.  All money so deposited in the state treasury shall be
    6-2  paid out on warrants drawn by the comptroller of public accounts as
    6-3  provided by law.
    6-4        SECTION 6.  Subchapter A, Chapter 51, Education Code, is
    6-5  amended by adding Section 51.0085 to read as follows:
    6-6        Sec. 51.0085.  NET MEDICAL SCHOOL TUITION.  (a)  A special
    6-7  account known as the medical loan forgiveness account is created in
    6-8  the general revenue fund.
    6-9        (b)  The governing body of each medical school, as defined by
   6-10  Section 61.501, shall remit to the state treasurer five percent
   6-11  (5%) of the net tuition collected at the medical school.  The state
   6-12  treasurer shall deposit money remitted under this section to the
   6-13  credit of the medical loan forgiveness account.
   6-14        (c)  The medical loan forgiveness account consists of money
   6-15  credited to the account under Subsection (b) of this section,
   6-16  gifts, grants, and funds appropriated by the legislature.
   6-17        (d)  Money in the medical loan forgiveness account may be
   6-18  appropriated only to the Texas Higher Education Coordinating Board
   6-19  for the purpose of supporting administrative expenses incurred in
   6-20  administering the Medical Loan Forgiveness Program.
   6-21        SECTION 7.  Subchapter B, Chapter 54, Education Code, is
   6-22  amended by adding Section 54.066 to read as follows:
   6-23        Sec. 54.066  MEDICAL LOAN FORGIVENESS PROGRAM.  (a)  There is
   6-24  hereby created the Medical Loan Forgiveness Program.  The purpose
   6-25  of the program shall be to enable Texas residents who desire to
    7-1  become physicians to obtain a deferment of the tuition and other
    7-2  expenses incurred in obtaining a medical education.
    7-3        (b)  The Higher Education Coordinating Board shall establish
    7-4  rules necessary to administer this section.  The rules shall
    7-5  provide the eligibility criteria for receiving deferment and the
    7-6  maximum annual number of deferments deferment which may be made
    7-7  under this program at an amount not to exceed the cost of tuition
    7-8  and other expenses.  Deferment granted pursuant to this section may
    7-9  not exceed the length of time required to complete the degree
   7-10  requirements.
   7-11        (c)  Students under this program shall be eligible for
   7-12  deferment of their tuition and other expenses incurred during
   7-13  attendance as full-time medical students approved by the Higher
   7-14  Education Coordinating Board.  No interest shall accrue on the
   7-15  amount deferred until one (1) month after graduation, completion of
   7-16  residency or termination of full-time student status.
   7-17        (d)  Deferments made to students shall be made and based upon
   7-18  the following options for repayment or conversion to interest-free
   7-19  scholarships:
   7-20              (1)  Payment in full of principal and interest must be
   7-21  made in sixty (60) or less equal monthly installments, commencing
   7-22  one (1) month after graduation, completion of residency or
   7-23  termination of full-time student status.  Repayment under this
   7-24  option shall convert the amount deferred to a loan which will
   7-25  accrue interest on the total amount at the rate of 12% for the
    8-1  period beginning on the date the student graduates, completes
    8-2  residency training or terminates full-time medical student status.
    8-3              (2)  In lieu of payment in full of both the principal
    8-4  deferred and any interest accrued, a student may elect to repay the
    8-5  amount deferred by entry into the practice of medicine in a primary
    8-6  health care field located in a medically underserved area of the
    8-7  state for a period of one year for each year the student receives a
    8-8  deferment of their tuition and other expenses.  Repayment under
    8-9  this option shall convert the amount deferred to a scholarship and
   8-10  discharge the same on the basis of one (1) year's service for one
   8-11  (1) year's deferment, or the appropriate proportion of the total
   8-12  outstanding balance of principal and interest, as established by
   8-13  rule of the Higher Education Coordinating Board.  If at any time
   8-14  prior to the repayment in full of the total obligation the student
   8-15  abandons or abrogates repayment under this option, the provision of
   8-16  Section (d)(4) shall apply.
   8-17              (3)  In lieu of payment in full of both the principal
   8-18  deferred and any interest accrued, a student may elect to repay the
   8-19  amount deferred by entry in the practice of medicine in a primary
   8-20  health care field at a federally qualified health center within the
   8-21  state for a period of one year for each year the student receives a
   8-22  deferment of their tuition and expenses.  Repayment under this
   8-23  option shall convert the amount deferred to a scholarship and
   8-24  discharge the same on the basis of one (1) year's service to the
   8-25  appropriate portion of the total outstanding balance of principal
    9-1  and interest, as established by rule of the Higher Education
    9-2  Coordinating Board.  If at any time prior to the repayment in full
    9-3  of the total obligation the student abandons or abrogates repayment
    9-4  under this option, the provision of section (d)(4) apply.
    9-5              (4)  If the student abandons or abrogates the options
    9-6  for repayment as provided for in Sections (d)(2) or (3), the
    9-7  remaining balance of unpaid or undischarged principal and interest
    9-8  shall become due and payable over the remaining period of time as
    9-9  if the option provided by Section (d)(1) had been elected upon
   9-10  graduation, completion of residency or termination of full time
   9-11  student status.
   9-12              (5)  If a student does not provide the required
   9-13  service, provides those services for less than the required term or
   9-14  fails to make payments pursuant to option (d)(1), the student
   9-15  shall, in addition to any principle and interest, be personally
   9-16  liable to the state for the state's reasonable expenses incurred in
   9-17  obtaining payment, including reasonable attorney's fees.
   9-18        (e)  In this section:
   9-19              (1)  "Federally Qualified Health Center" means a
   9-20  federally qualified health center, as that term is defined by 42
   9-21  U.S.C. Sec. 1396d.
   9-22              (2)  "Medically underserved area" means:  an area
   9-23  designated by the Unites States Secretary of Health and Human
   9-24  Services as having:
   9-25              (a)  a shortage of personal health services or a
   10-1  population group that has such a shortage as provided by 42 U.S.C.
   10-2  Section 300e-1(7); or,
   10-3              (b)  a health professional shortage as provided by 42
   10-4  U.S.C. Section 254e(a)(1).
   10-5              (3)  Primary health care practice means a practice in
   10-6  the specialties of family practice, general practice, general
   10-7  internal medicine, general pediatric medicine or general obstetrics
   10-8  and gynecology.
   10-9        SECTION 8.  Chapter 61, Education Code, is amended by adding
  10-10  Subchapter O to read as follows:
  10-11           SUBCHAPTER O.  PRIMARY  CARE MISSION STATEMENTS,
  10-12                     STRATEGIC PLANS AND REPORTING
  10-13        Sec. 61.781.  DEFINITION.  In this subchapter:
  10-14              (1)  "Generalist primary care physician" means a
  10-15  physician in the specialties of family practice, general practice,
  10-16  general internal medicine, general pediatrics or general obstetrics
  10-17  and gynecology.
  10-18              (2)  "Medical school" has the meaning assigned by
  10-19  Section 61.501 of this code.
  10-20              (3)  "Medically underserved area" means:  an area
  10-21  designated by the United States Secretary of Health and Human
  10-22  Services as having:
  10-23              (a)  a shortage of personal health services or a
  10-24  population group that has such a shortage as provided by 42 U.S.C.
  10-25  Section 300e-1(7); or,
   11-1              (b)  a health professional shortage as provided by 42
   11-2  U.S.C. Section 254e(a)(1).
   11-3        Sec. 61.782.  ROLES AND MISSION STATEMENT.  The role and
   11-4  mission of each medical school shall:
   11-5              (1)  reflect the school's responsibility and
   11-6  accountability for providing at least fifty-three percent of its
   11-7  graduates as generalist primary care physicians;
   11-8              (2)  reflect that the production of family and general
   11-9  practitioners shall be at least 25 percent of its graduates and
  11-10  that the production of general obstetrics and gynecology physicians
  11-11  shall not exceed three percent of its total graduates; and,
  11-12              (3)  Recognize the school's responsibility and
  11-13  accountability for providing underrepresented minority physicians,
  11-14  primary care research and the provision of generalist primary care
  11-15  physicians to provide primary medical care to medically underserved
  11-16  areas.
  11-17        Sec. 61.783.  STRATEGIC PLAN.  (a)  Each medical school shall
  11-18  develop a strategic plan that reflects the requirements of Section
  11-19  61.782 of this code.
  11-20        (b)  The strategic plan must contain, at least, the following
  11-21  quantifiable outcome measures:
  11-22              (1)  53 percent of the total number of medical school
  11-23  graduates in residencies in generalist primary care specialties and
  11-24  in practice in generalist primary care specialties in this state;
  11-25              (2)  the admissions committee of the medical school
   12-1  should be composed of at least 40 percent generalist primary care
   12-2  physicians and include generalist primary care physicians in
   12-3  private practice; and,
   12-4              (3)  the curriculum committee of the medical school
   12-5  should be composed of at least 53 percent of generalist primary
   12-6  care physicians.
   12-7        Sec. 61.784.  (a)  Each strategic plan shall include, at
   12-8  least, the following baseline information:
   12-9              (1)  the statistical information concerning the
  12-10  practice specialties and location of the medical school graduates
  12-11  for each academic year starting with students graduating in 1987;
  12-12              (2)  statistical information concerning students
  12-13  admitted after 1987 including minority status, county of origin,
  12-14  sex and financial aid provided;
  12-15              (3)  composition of admission and curriculum committees
  12-16  by specialty for each academic year after 1987;
  12-17              (4)  number, specialty and location of affiliated
  12-18  residency programs, number of positions in each program by post
  12-19  graduate year and number of filled positions by post graduate year
  12-20  starting in the academic year 1987;
  12-21              (5)  number of full-time, salaried faculty by
  12-22  specialty, sex, ethnicity, race, tenure and faculty rank; and,
  12-23              (6)  Total budget and sources of funds by department
  12-24  within the medical school.
  12-25        (b)  Each strategic plan shall address, at least, the
   13-1  institution's plan:
   13-2              (1)  to ensure that the medical schools' admission
   13-3  policies, structure and function address the need to admit and
   13-4  recruit more students who are inclined to select generalist primary
   13-5  care specialties;
   13-6              (2)  to ensure that the medical schools' admission
   13-7  policies, structure and function reflect the need to recruit and
   13-8  admit more minority students to the medical school;
   13-9              (3)  to ensure that the medical schools' departments
  13-10  and faculty composition are balanced, with increased representation
  13-11  of primary care generalist physicians, full-time salaried minority
  13-12  physicians and other primary care generalist providers from
  13-13  community settings;
  13-14              (4)  to ensure a system of advancement and tenure that
  13-15  rewards primary care generalists faculty with demonstrated
  13-16  excellence in teaching, in the same manner as other faculty
  13-17  members;
  13-18              (5)  to involve community-based primary care generalist
  13-19  physicians and other providers as preceptors, faculty, and role
  13-20  models for medical students and residents, and the recognition and
  13-21  incentives to be provided to these providers for their
  13-22  participation;
  13-23              (6)  to incorporate basic sciences within a clinical
  13-24  context throughout the pre-clinical curriculum;
  13-25              (7)  to ensure that pre-clinical and clinical training
   14-1  in social, behavioral, and humanistic aspects of health and health
   14-2  care delivery are provided by faculty, researchers, and clinicians
   14-3  in fields such as nursing, psychology, public health, medical
   14-4  sociology, medical education, health services delivery and
   14-5  bioethics;
   14-6              (8)  to provide pre-clinical and clinical training that
   14-7  emphasizes the importance of the team approach to health care
   14-8  delivery and that includes experience in working as a team member
   14-9  with other health care professionals and training in using the
  14-10  skills and expertise of nurses, pharmacists, public health
  14-11  professionals, social workers and other health care professionals
  14-12  and ancillary personnel;
  14-13              (9)  to ensure that curricula and clinical rotations
  14-14  provide all students and residents with a balance between
  14-15  hospital-based, subspecialty training and community-based primary
  14-16  care training, including the establishment of affiliation
  14-17  agreements with hospitals and clinics in medically underserved
  14-18  areas that provide for rotations of students through these
  14-19  settings;
  14-20              (10)  to ensure that community-based educational
  14-21  experiences are developed and managed with significant community
  14-22  participation and involvement;
  14-23              (11)  to provide financial support for third-year
  14-24  clerkships in family medicine; and,
  14-25              (12)  to plan for the creation of endowed chairs for
   15-1  generalist primary care physicians.
   15-2        Sec. 61.785.  (a)  The initial strategic plan required under
   15-3  Secs. 61.782 - 61.784 must be filed for comment with the Higher
   15-4  Education Coordinating Board and the Legisltive Budget Board not
   15-5  later than September 1, 1995, and approved for implementation by
   15-6  the Governing Board of each medical school no later than October
   15-7  31, 1995.
   15-8        (b)  The first strategic plan filed under this section shall
   15-9  be used as a baseline to assess progress toward each medical
  15-10  school's goals in subsequent years.
  15-11        (c)  Each medical school, at least annually, shall update the
  15-12  strategic plan required under this section and shall file for
  15-13  comment with the Higher Education Coordinating Board and the
  15-14  Legislative Budget Board not later than July 1 of each year.  The
  15-15  Governing Board of each medical school shall approve for
  15-16  implementation the strategic plan filed for comment under this
  15-17  subsection not later than August 31 of each year.
  15-18        (d)  All strategic plans must assess the school's progress
  15-19  toward the outcome measures under Subsection (b) of this Section.
  15-20        (e)  All agencies that have a public medical school covered
  15-21  under Article III of the Appropriations for the state shall not
  15-22  expend funds if the strategic plan required under sections 61.782 -
  15-23  61.784 of this subchapter have not been filed and approved by
  15-24  August 31 of each year.
  15-25        SECTION 9.  This Act takes effect September 1, 1995.  The
   16-1  Amendments to Sections 54.066, Education Code, apply only to
   16-2  tuition that becomes due beginning with the fall semester in 1995.
   16-3  Tuition that became due before that semester is governed by the law
   16-4  in effect at the time the tuition became due, and that law is
   16-5  continued in effect for this purpose only.
   16-6        SECTION 10.  The importance of this legislation and the
   16-7  crowded condition of the calendars in both houses create an
   16-8  emergency and an imperative public necessity that the
   16-9  constitutional rule requiring bills to be read on three several
  16-10  days in each house be suspended, and this rule is hereby suspended,
  16-11  and that this Act take effect and be in force from and after its
  16-12  passage, and it so enacted.