By Berlanga                                     H.B. No. 1511

      75R3580 JSA-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the administration and allocation of federal Medicaid

 1-3     and other funds used to pay for graduate medical education.


 1-5           SECTION 1.  Subchapter B, Chapter 32, Human Resources Code,

 1-6     is amended by adding Section 32.0315 to read as follows:

 1-7           Sec. 32.0315.  FUNDS FOR GRADUATE MEDICAL EDUCATION.  (a) The

 1-8     department shall establish procedures and formulas for the

 1-9     allocation of federal medical assistance funds that are directed to

1-10     be used to support graduate medical education in connection with

1-11     the medical assistance program.

1-12           (b)  In a formula established under this section, the

1-13     department shall allocate the funds in the manner the department

1-14     determines most effectively and equitably achieves the purposes for

1-15     which those federal funds are received consistent with the needs

1-16     of this state for graduate medical education and the training of

1-17     health care professionals in appropriate fields and specialties,

1-18     taking into account other money available to support graduate

1-19     medical education.  In determining the needs of this state for

1-20     graduate medical education, the department shall give emphasis to

1-21     graduate medical education in family practice and other primary

1-22     care specialties.

1-23           (c)  The department shall consult with the Texas Higher

1-24     Education Coordinating Board before adopting or revising a formula

 2-1     under this section.  At the request of the department, the

 2-2     coordinating board shall provide the department with any

 2-3     information the board possesses to assist the department in

 2-4     administering this section.

 2-5           SECTION 2.  Subchapter C, Chapter 61, Education Code, is

 2-6     amended by adding Section 61.0594  to read as follows:


 2-8     EDUCATION.  (a)  The board shall administer a program to support

 2-9     graduate medical education programs in this state consistent with

2-10     the needs of this state for graduate medical education and the

2-11     training of health care professionals in appropriate fields and

2-12     specialties, including family practice and other primary care

2-13     specialties.

2-14           (b)  From money available to the program, the board may make

2-15     grants or formula distributions to:

2-16                 (1)  support appropriate graduate medical education

2-17     programs and activities for which adequate funds are not otherwise

2-18     available; or

2-19                 (2)  foster new or expanded graduate medical education

2-20     programs or activities that the board determines will address the

2-21     state's needs for graduate medical education.

2-22           (c)  The program is funded by appropriations, by gifts,

2-23     grants, and donations made to support the program, and by any other

2-24     funds the board obtains, including federal funds, for the program.

2-25     From program funds, the comptroller of public accounts shall issue

2-26     warrants to each eligible institution or other entity receiving a

2-27     grant or distribution from the program in the amount certified by

 3-1     the board.  An amount granted to an institution or other entity

 3-2     under the program may be used only to support the particular

 3-3     program or activity for which the award is made in accordance with

 3-4     any conditions imposed by the board and may not otherwise be

 3-5     expended for the general support of the institution or entity.

 3-6           (d)  The board may appoint an advisory committee to advise

 3-7     the board regarding the development and administration of the

 3-8     program, including considering requests for program grants and

 3-9     establishing formulas for distribution of money under the program.

3-10           SECTION 3.  (a)  This Act takes effect September 1, 1997.

3-11           (b)  Section 32.0315, Human Resources Code, as added by this

3-12     Act, applies to the distribution of federal medical assistance

3-13     funds for the support of graduate medical education received on or

3-14     after the effective date of this Act, and to any such federal funds

3-15     received before the effective date of this Act that have not been

3-16     promised, obligated, or otherwise identified for distribution to

3-17     specific entities before the effective date.

3-18           SECTION 4.  The importance of this legislation and the

3-19     crowded condition of the calendars in both houses create an

3-20     emergency and an imperative public necessity that the

3-21     constitutional rule requiring bills to be read on three several

3-22     days in each house be suspended, and this rule is hereby suspended.