By:  Sibley                                            S.B. No. 979
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to relief programs, family practice residency training
    1-2  pilot programs, the repayment of certain physician education loans,
    1-3  the medical school tuition set aside for certain loan payments, and
    1-4  increasing the number of primary care physicians in medically
    1-5  underserved areas of this state through the creation of the
    1-6  Medically Underserved Community-State Matching Incentive Program.
    1-7        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-8        SECTION 1.  Title 3, Subtitle A, Chapter 51, Subchapter Z,
    1-9  Section 51.918(c), Education Code, is amended to read as follows:
   1-10        Section 51.918.  RURAL HEALTH; FAMILY PRACTICE RESIDENCY
   1-11  PROGRAM.
   1-12        (c)  The Center for Rural Health Initiatives shall develop
   1-13  relief service programs for rural physicians and allied health
   1-14  personnel to facilitate ready access to continuing medical
   1-15  education or practice coverage for purposes other than continuing
   1-16  medical education.
   1-17        SECTION 2.  Section 61.506, Education Code, is amended to
   1-18  read as follows:
   1-19        Section 61.506.  Family Practice Residency Training Pilot
   1-20  Programs.
   1-21        (a)  The Family Practice Residency Advisory Committee <and a
   1-22  statewide advisory committee established by the Texas Board of
   1-23  Health under Section 31.017, Health and Safety Code,> shall work
    2-1  <together> to enhance approved family practice residency programs
    2-2  and to establish three pilot programs to provide a major source of
    2-3  indigent health care and <also> to train family practice resident
    2-4  physicians.
    2-5        (b)  Each of the three pilot programs must <be located in>
    2-6  provide services to an <area that> economically depressed or rural
    2-7  medically underserved area of the state.  One pilot program must be
    2-8  located in an urban area, one pilot program must be located in a
    2-9  rural area, and one pilot program must be located in the border
   2-10  region as defined by Section 481.001(3), Government Code <reflects
   2-11  the diversity of this state>.
   2-12        (c)  An approved family practice program that wants to
   2-13  participate in or sponsor a pilot program must make a proposal to
   2-14  the advisory committee <committees>.
   2-15        (d)  The advisory committee <committees> shall review all
   2-16  proposals submitted under Subsection (c) of this section and shall
   2-17  recommend to the board approved family practice residency programs
   2-18  to participate in or sponsor pilot programs.
   2-19        (e)  The board shall select approved family practice
   2-20  residency programs to participate in or sponsor pilot programs on
   2-21  the basis of each program's commitment to indigent health care and
   2-22  to training family practice resident physicians.
   2-23        (f)  The advisory committee <committees> shall use <the>
   2-24  financial reports, audits, and performance evaluations currently
   2-25  required under this subchapter or by board rule <and under Section
    3-1  31.015, Health and Safety Code,> to assess annually the financial
    3-2  feasibility and effective performance of the pilot programs.  The
    3-3  advisory committee <committees> may require additional reports as
    3-4  necessary.
    3-5        (g)  The advisory committee <committees> shall send copies of
    3-6  its <their> annual assessment of the pilot programs to the
    3-7  comptroller and the state auditor for review.
    3-8        (h)  If the advisory committee determines <committees
    3-9  determine> that a pilot program is not financially feasible or that
   3-10  it does not perform effectively, the advisory committee
   3-11  <committees> shall recommend to the board discontinuation of
   3-12  funding for the pilot program.
   3-13        SECTION 3.  Not later than December 1, 1996, the Texas Higher
   3-14  Education Coordinating Board shall report to each house of the 75th
   3-15  Legislature on the allocation of money to the family practice
   3-16  residency training pilot programs established under Section 61.506,
   3-17  Education Code, as amended by this Act, and on the progress of
   3-18  those programs in training family practice resident physicians and
   3-19  in providing indigent health care.
   3-20        SECTION 4.  Section 61.531, Education Code, is amended by
   3-21  adding a new Section 61.531 to read as follows:
   3-22        Section 61.531.  REPAYMENT AUTHORIZED.
   3-23        (a)  It is the intent of the legislature that no more than 20
   3-24  percent of physicians receiving repayment assistance shall be
   3-25  employed by specified state agencies.
    4-1        (b)  A physician who receives repayment assistance from the
    4-2  Physician Education Loan Repayment Program is not eligible to
    4-3  receive assistance under the Medically Underserved Community-State
    4-4  Match Program (Title 2, Subtitle B, Chapter 46, Health and Safety
    4-5  Code) or the Texas Health Service Corps Program (Title 2, Subtitle
    4-6  B, Chapter 47, Health and Safety Code).
    4-7        SECTION 5.  Section 61.532(a), Education Code, is amended to
    4-8  read as follows:
    4-9        Section 61.532.  ELIGIBILITY.
   4-10        (a)  To be eligible to receive repayment assistance, a
   4-11  physician must apply to the coordinating board and have completed
   4-12  at least one year of medical practice:
   4-13              (1)  in private practice in an economically depressed
   4-14  or rural medically underserved area of the state;
   4-15              (2)  for one of the following state agencies:
   4-16                    (A)  Texas Department of Health;
   4-17                    (B)  Texas Department of Mental Health and Mental
   4-18  Retardation;
   4-19                    (C)  Texas Department of Corrections; or
   4-20                    (D)  Texas Youth Commission; or
   4-21              (3)  for one of the following positions in an approved
   4-22  family practice residency training program established under
   4-23  Subchapter I of this chapter:
   4-24                    (A)  as clinical faculty in an approved family
   4-25  practice residency program, having completed training in an
    5-1  approved family practice residency program no earlier than July 1,
    5-2  1994; or
    5-3                    (B)  as second- or third-year residents.
    5-4        SECTION 6.  Section 61.539(b), Education Code, is amended to
    5-5  read as follows:
    5-6        (b)  The amount set aside shall be transferred to the
    5-7  comptroller of public accounts to be maintained in the state
    5-8  treasury for the sole purpose of repayment of student loans of
    5-9  physicians serving in designated state agencies or economically
   5-10  depressed or rural medically underserved areas of the state as
   5-11  specified by this subchapter.  Sections 403.094(h) and 403.095,
   5-12  Government Code, do not apply to the funds set aside in this
   5-13  section.
   5-14        SECTION 7.  Title 2, Subtitle B, Health and Safety Code, is
   5-15  amended by adding Chapter 46 to read as follows:
   5-16        Chapter 46.  MEDICALLY UNDERSERVED COMMUNITY-STATE MATCHING
   5-17  INCENTIVE PROGRAM.
   5-18        Section 46.001.  DEFINITIONS.  In this chapter:
   5-19              (1)  "Start-up Funds" means any payment made by a
   5-20  medically underserved community for reasonable costs incurred by a
   5-21  physician to establish a medical office and ancillary facilities
   5-22  for diagnosing and treating patients.
   5-23              (2)  "Medically underserved community" means a
   5-24  community located in an area in Texas with a medically underserved
   5-25  population or an urban or rural area designated by the secretary of
    6-1  health and human services as an area in Texas with a shortage of
    6-2  personal health services or a population group designated by the
    6-3  secretary as having a shortage of such services (as defined by
    6-4  U.S.C. Section 300(3)-1(7) or as defined by the Texas Department of
    6-5  Health by rule which is based upon Texas specific demographics,
    6-6  geographic factors that affect access to health care, and
    6-7  environmental health factors.
    6-8              (3)  "Physician" means a person licensed to practice
    6-9  medicine in the state of Texas, and
   6-10              (4)  "Primary Care" means physician services in family
   6-11  practice, general practice, internal medicine, pediatrics, or
   6-12  obstetrics and gynecology.
   6-13        Section 46.002.  MEDICALLY UNDERSERVED COMMUNITY-STATE MATCH
   6-14  PROGRAM.
   6-15        (a)  The board shall establish and administer a matching fund
   6-16  program in accordance with this chapter to increase the number of
   6-17  physicians providing primary care in medically underserved
   6-18  communities.
   6-19        (b)  Under the program, an eligible community may sponsor a
   6-20  physician who has agreed to provide primary care in the community
   6-21  by contributing to start-up funds for the physician and having that
   6-22  contribution matched in whole or in part by state funds
   6-23  appropriated to the board for that purpose.
   6-24        (c)  Under the program, a participating medically underserved
   6-25  community may provide start-up funds to an eligible physician over
    7-1  a twenty-four month period.
    7-2        (c)  The board may not provide matching funds to more than
    7-3  ten communities in each year of the program.
    7-4        (d)  The board may not pay more than $25,000 to a community
    7-5  in any fiscal year, unless the board makes a specific finding of
    7-6  need by the community.
    7-7        Section 46.004.  ELIGIBILITY.
    7-8        (a)  To be eligible to receive funds from the board, a
    7-9  medically underserved community must apply for such funds and
   7-10  provide evidence satisfactory to the board that it has entered into
   7-11  an agreement with a physician that the physician provide primary
   7-12  care in the community for a period of at least two years.
   7-13        (b)  A physician who receives repayment assistance from the
   7-14  Medically Underserved Community-State Match Program is not eligible
   7-15  to receive assistance under the Physician Education Loan Repayment
   7-16  Program (Subchapter J, Chapter 61, Education Code) or the Texas
   7-17  Health Service Corps Program (Title 2, Subtitle B, Chapter 47,
   7-18  Health and Safety Code).
   7-19        Section 46.004.  RULES.  The board may adopt rules necessary
   7-20  for the administration of this subchapter, including but not
   7-21  limited to:
   7-22              (1)  eligibility criteria for a medically underserved
   7-23  community;
   7-24              (2)  eligibility criteria for a physician;
   7-25              (3)  minimum and maximum community contributions to the
    8-1  start-up funds for a physician that will be matched with state
    8-2  funds;
    8-3              (4)  conditions under which state funds must be repaid
    8-4  by a community or physician;
    8-5              (5)  procedures for disbursement of funds by the board;
    8-6              (6)  the form and manner in which a community must make
    8-7  its contribution to the start-up funds; and
    8-8              (7)  the contents of any standard agreement to be
    8-9  entered into by the parties.
   8-10        Section 46.005.  FUNDING.  The board may accept gifts,
   8-11  grants, and donations for the purposes of this subchapter.
   8-12        Section 46.006.  ADVISORY COMMITTEE.  The board may appoint
   8-13  an advisory committee to advise the board in its administration of
   8-14  this subchapter.
   8-15        SECTION 8.  This Act takes effect September 1, 1995.
   8-16        SECTION 9.  The importance of this legislation and the
   8-17  crowded condition of the calendars in both houses create an
   8-18  emergency and an imperative public necessity that the
   8-19  constitutional rule requiring bills to be read on three several
   8-20  days in each house be suspended, and this rule is hereby suspended,
   8-21  and that this Act take effect and be in force from and after its
   8-22  passage, and it is so enacted.