MMA C.S.H.B. 1557 75(R)BILL ANALYSIS HIGHER EDUCATION C.S.H.B. 1557 By: Hinojosa 4-19-97 Committee Report (Substituted) BACKGROUND The poor distribution of primary care physicians is most obvious in South Texas. In the Lower Rio Grande Valley, the average number of doctors per 100,000 populace is less than half of the statewide level. This shortage of primary care providers is highlighted by the lack of preventative care and indigent health programs in the area. The total population of Hidalgo, Cameron, Starr and Willacy counties is approaching 900,000, making the Rio Grande Valley the largest area in the state with no academic medical facility to help serve the needs of the community. The University of Texas is willing to expand its residency programs in the area and also develop a program where third and fourth year medical students would receive instruction in the Rio Grande Valley. Currently, the nearest academic medical institution is in San Antonio, over two hundred miles away. A new program, modeled after an existing Regional Academic Health Center (RAHC), would be affiliated with one of the existing medical schools, such as University of Texas Health Science Center-San Antonio or University of Texas Medical Branch-Galveston allowing local communities to coordinate with the University of Texas board of regents to provide assistance in the funding of land, construction and operations costs. PURPOSE C.S.H.B. 1557 would authorize the University of Texas System to establish a RAHC in the fourcounty area of the Lower Rio Grande Valley area. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 74, Education Code, by adding Subchapter L to read as follows: SUBCHAPTER L. LOWER RIO GRANDE VALLEY ACADEMIC HEALTH CENTER. Sec. 74.611. AUTHORITY TO ESTABLISH OR PARTICIPATE IN CENTER. (a) Authorizes the board of regents of the University of Texas System (board) to establish a regional academic health center (RAHC) to serve certain counties. States that the center will consist of facilities located throughout the region. Authorizes the board to execute and carry out agreements for the RAHC with any other entity or institution in the region to establish or to participate in the establishment or operation of the center. (b) Authorizes the board to assign responsibility for the management of the RAHC to any University of Texas System component institution. States that the operating costs of the RAHC will be paid from operating funds of the component institution and from available funds of any other public or private entity. (c) Authorizes the RAHC to be used, as the board deems appropriate, to provide undergraduate clinical education, graduate education, including residency training programs, or other levels of medical educational work in counties in connection with a component institution of The University of Texas System. Sec. 74.612. GIFTS AND GRANTS. Authorizes the board to accept and administer gifts and grants from public or private entities for the use and benefit of the RAHC. Sec. 74.613. FACILITIES. Authorizes physical facilities of RAHC to be provided by a public or private entity. Prohibits the use of state money for construction, maintenance and operation of physical facilities. Sec. 74.614. TEACHING HOSPITAL. Authorizes a teaching hospital determined suitable by the board to be provided by a public or private entity. Prohibits state funds to be used for construction, maintenance, or operation of a teaching hospital for the RAHC. Sec. 74.615. COORDINATING BOARD SUPERVISION. Provides that the RAHC is subject to the continuing supervision of the THECB and its rules, as provided in Chapter 61, Education Code. SECTION 2. Effective date: September 1, 1997 SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1557 contains non-substantive language and section changes as recommended by the Legislative Council. C.S.H.B. 1557 also changes the title of Subchapter L. C.S.H.B. 1557 adds language to SECTION 1 [Sec. 74.611 (b)] stating that the operating cost of the RAHC will be paid from the operating funds of the institutions and from available funds of any other public or private entity. C.S.H.B. 1557 also adds language to SECTION 1 (Sec. 74.613) stating that a physical facility of the RAHC can not be constructed, maintained, or operated with state funds, where H.B. 1557 would have allowed for facilities to be funded from state funds. These changes were made to eliminate the fiscal implications to the state by requiring all costs to be funded within current appropriations and other funding available to the UT System component institutions.