S.B. No. 979
                                        AN ACT
    1-1  relating to programs to increase the number of primary care
    1-2  physicians and allied health personnel in medically underserved
    1-3  areas of this state.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subsection (c), Section 51.918, Education Code,
    1-6  is amended to read as follows:
    1-7        (c)  The Center for Rural Health Initiatives shall develop
    1-8  relief service programs for rural physicians and allied health
    1-9  personnel <to facilitate ready access to continuing medical
   1-10  education>.
   1-11        SECTION 2.  Section 61.506, Education Code, is amended to
   1-12  read as follows:
   1-13        Sec. 61.506.  FAMILY PRACTICE RESIDENCY TRAINING PILOT
   1-14  PROGRAMS.  (a)  The Family Practice Residency Advisory Committee
   1-15  <and a statewide advisory committee established by the Texas Board
   1-16  of Health under Section 31.017, Health and Safety Code,> shall work
   1-17  <together> to enhance approved family practice residency programs
   1-18  and to establish  not less than three or more than five pilot
   1-19  programs to provide a major source of indigent health care and
   1-20  <also> to train family practice resident physicians.
   1-21        (b)  Each of the  <three> pilot programs must provide
   1-22  services   to <be   located    in>  an   economically    depressed
   1-23  or rural medically underserved area of the state.  One pilot
    2-1  program must be located in an urban area, one pilot program must be
    2-2  located in a rural area, and  the remaining pilot program or
    2-3  programs must be located in the border region as defined by Section
    2-4  481.001, Government Code <area that reflects the diversity of this
    2-5  state>.
    2-6        (c)  An approved family practice residency program that wants
    2-7  to participate in or sponsor a pilot program must make a proposal
    2-8  to the advisory committee <committees>.
    2-9        (d)  The advisory committee <committees> shall review all
   2-10  proposals submitted under Subsection (c) of this section and shall
   2-11  recommend to the board approved family practice residency programs
   2-12  to participate in or sponsor pilot programs.
   2-13        (e)  The board shall select approved family practice
   2-14  residency programs to participate in or sponsor pilot programs on
   2-15  the basis of each program's commitment to indigent health care and
   2-16  to training family practice resident physicians.
   2-17        (f)  The advisory committee <committees> shall use <the>
   2-18  financial reports, audits, and performance evaluations currently
   2-19  required under this subchapter or by board rule <and under Section
   2-20  31.015, Health and Safety Code,> to assess annually the financial
   2-21  feasibility and effective performance of the pilot programs.  The
   2-22  advisory committee <committees> may require additional reports as
   2-23  necessary.
   2-24        (g)  The advisory committee <committees> shall send copies of
   2-25  its <their> annual assessment of the pilot programs to the
    3-1  comptroller and the state auditor for review.
    3-2        (h)  If the advisory committee determines <committees
    3-3  determine> that a pilot program is not financially feasible or that
    3-4  it does not perform effectively, the advisory committee
    3-5  <committees> shall recommend to the board discontinuation of
    3-6  funding for the pilot program.
    3-7        SECTION 3.  Section 61.531, Education Code, is amended to
    3-8  read as follows:
    3-9        Sec. 61.531.  REPAYMENT AUTHORIZED.  (a)  The coordinating
   3-10  board may provide, using funds appropriated for that purpose and in
   3-11  accordance with this subchapter and rules of the board, assistance
   3-12  in the repayment of student loans for physicians who apply and
   3-13  qualify for the assistance.
   3-14        (b)  Not more than 20 percent of the physicians receiving
   3-15  repayment assistance under this subchapter may be employed by the
   3-16  state agencies listed in Section 61.532(a)(2).
   3-17        (c)  A physician who receives repayment assistance under this
   3-18  subchapter may not receive assistance under Chapter 46, Health and
   3-19  Safety Code.
   3-20        SECTION 4.  Subsection (a), Section 61.532, Education Code,
   3-21  is amended to read as follows:
   3-22        (a)  To be eligible to receive repayment assistance, a
   3-23  physician must apply to the coordinating board and have completed
   3-24  at least one year of medical practice:
   3-25              (1)  in private practice in an economically depressed
    4-1  or rural medically underserved area of the state;
    4-2              (2)  for one of the following state agencies:
    4-3                    (A)  Texas Department of Health;
    4-4                    (B)  Texas Department of Mental Health and Mental
    4-5  Retardation;
    4-6                    (C)  Texas Department of Corrections; or
    4-7                    (D)  Texas Youth Commission; or
    4-8              (3)  for an approved family practice residency training
    4-9  program established under Subchapter I of this chapter as a:
   4-10                    (A)  clinical faculty member and have completed
   4-11  training in an approved family practice residency training program
   4-12  on or after July 1, 1994; or
   4-13                    (B)  resident.
   4-14        SECTION 5.  Subsection (a), Section 61.537, Education Code,
   4-15  is amended to read as follows:
   4-16        (a)  The coordinating board shall adopt rules necessary for
   4-17  the administration of this subchapter, including a rule that sets a
   4-18  maximum amount of repayment assistance that may be received by a
   4-19  physician in one year and a rule that authorizes the Family
   4-20  Practice Residency Advisory Committee to establish priorities among
   4-21  eligible physicians for repayment assistance, by taking into
   4-22  account the degree of physician shortage, geographic locations,
   4-23  whether the physician is or will be providing service in a
   4-24  medically underserved area, and other criteria the committee
   4-25  considers appropriate.
    5-1        SECTION 6.  Subsection (b), Section 61.539, Education Code,
    5-2  is amended to read as follows:
    5-3        (b)  The amount set aside shall be transferred to the
    5-4  comptroller of public accounts to be maintained in the state
    5-5  treasury for the sole purpose of repayment of student loans of
    5-6  physicians serving in designated state agencies or economically
    5-7  depressed or rural medically underserved areas of the state as
    5-8  specified by this subchapter.  Sections 403.094(h) and 403.095,
    5-9  Government Code, do not apply to the amount set aside by this
   5-10  section.
   5-11        SECTION 7.  Subtitle B, Title 2, Health and Safety Code, is
   5-12  amended by adding Chapter 46 to read as follows:
   5-13          CHAPTER 46.  MEDICALLY UNDERSERVED COMMUNITY-STATE
   5-14                      MATCHING INCENTIVE PROGRAM
   5-15        Sec. 46.001.  DEFINITIONS.  In this chapter:
   5-16              (1)  "Medically underserved community" means:
   5-17                    (A)  a community located in an area in this state
   5-18  with a medically underserved population;
   5-19                    (B)  a community located in an area in this state
   5-20  designated by the United States Secretary of Health and Human
   5-21  Services as an area with a shortage of personal health services;
   5-22                    (C)  a population group designated by the United
   5-23  States Secretary of Health and Human Services as having a shortage
   5-24  of personal health services; or
   5-25                    (D)  a community that meets criteria adopted by
    6-1  the board by rule, considering relevant demographic, geographic,
    6-2  and environmental factors.
    6-3              (2)  "Physician" means a person licensed to practice
    6-4  medicine in this state.
    6-5              (3)  "Primary care" means physician services in family
    6-6  practice, general practice, internal medicine, pediatrics,
    6-7  obstetrics, or gynecology.
    6-8              (4)  "Start-up money" means a payment made by a
    6-9  medically underserved community for reasonable costs incurred by a
   6-10  physician to establish a medical office and ancillary facilities
   6-11  for diagnosing and treating patients.
   6-12        Sec. 46.002.  PROGRAM.  (a)  The board shall establish and
   6-13  administer a program under this chapter to increase the number of
   6-14  physicians providing primary care in medically underserved
   6-15  communities.
   6-16        (b)  A medically underserved community may sponsor a
   6-17  physician who has completed a primary care residency program within
   6-18  seven years of application to this program and has agreed to
   6-19  provide primary care in the community by contributing to start-up
   6-20  money for the physician and having that contribution matched in
   6-21  whole or in part by state money appropriated to the board for that
   6-22  purpose.
   6-23        (c)  A participating medically underserved community may
   6-24  provide start-up money to an eligible physician over a two-year
   6-25  period.
    7-1        (d)  The board may not pay more than $25,000 to a community
    7-2  in a fiscal year unless the board makes a specific finding of need
    7-3  by the community.
    7-4        (e)  The board shall prioritize the communities eligible for
    7-5  assistance under this chapter in order to assure that the neediest
    7-6  communities are provided grants.
    7-7        Sec. 46.003.  ELIGIBILITY.  To be eligible to receive money
    7-8  from the board, a medically underserved community must:
    7-9              (1)  apply for the money; and
   7-10              (2)  provide evidence satisfactory to the board that it
   7-11  has entered into an agreement with a physician for the physician to
   7-12  provide primary care in the community for at least two years.
   7-13        Sec. 46.004.  RULES.  The board shall adopt rules necessary
   7-14  for the administration of this chapter, including:
   7-15              (1)  eligibility criteria for a medically underserved
   7-16  community;
   7-17              (2)  eligibility criteria for a physician;
   7-18              (3)  minimum and maximum community contributions to the
   7-19  start-up money for a physician to be matched with state money;
   7-20              (4)  conditions under which state money must be repaid
   7-21  by a community or physician;
   7-22              (5)  procedures for disbursement of money by the board;
   7-23              (6)  the form and manner in which a community must make
   7-24  its contribution to the start-up money; and
   7-25              (7)  the contents of an agreement to be entered into by
    8-1  the parties to include at least:
    8-2                    (A)  a credit check for an eligible physician;
    8-3                    (B)  community retention of interest in any
    8-4  property, equipment, or durable goods for seven years; and
    8-5                    (C)  the requirement of full-time clinical
    8-6  practice for participating physicians.
    8-7        Sec. 46.005.  FUNDING.  The board may accept gifts, grants,
    8-8  and donations for the purposes of this chapter.
    8-9        SECTION 8.  Not later than December 1, 1996, the Texas Higher
   8-10  Education Coordinating Board shall report to the legislature on:
   8-11              (1)  the allocation of money to the family practice
   8-12  residency training pilot programs established under Section 61.506,
   8-13  Education Code, as amended by this Act; and
   8-14              (2)  the progress of those programs in:
   8-15                    (A)  training family practice resident
   8-16  physicians; and
   8-17                    (B)  providing indigent health care.
   8-18        SECTION 9.  This Act takes effect September 1, 1995.
   8-19        SECTION 10.  The importance of this legislation and the
   8-20  crowded condition of the calendars in both houses create an
   8-21  emergency and an imperative public necessity that the
   8-22  constitutional rule requiring bills to be read on three several
   8-23  days in each house be suspended, and this rule is hereby suspended.