HBA-BSM H.B. 3469 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3469 By: McClendon Higher Education 4/1/2001 Introduced BACKGROUND AND PURPOSE Currently, there is a shortage of physicians in the rural areas of Texas while the need for medical services in Texas is increasing. Almost 16 percent of the Texas population resides in rural areas of the state, and approximately 56,000 people live in counties without a primary care physician. There is approximately one primary care physician for every 700 people in the state, but in rural areas the ratio is approximately one physician for every 1,300 people. The physician shortage in rural areas may be attributed to the generally lower wages physicians receive in rural areas. The establishment of a medical school at Prairie View A&M University could help to address this critical health need. House Bill 3469 establishes a medical school at Prairie View A&M University. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the board of regents of The Texas A&M University System in SECTION 2 of this bill. ANALYSIS House Bill 3469 requires the board of regents (board) of The Texas A&M University System to establish and maintain the Prairie View A&M Medical School (medical school). The bill authorizes the board of regents to prescribe courses leading to customary degrees offered in other leading American medical schools. The bill authorizes the board to make rules and regulations for the operation, control, and management of the medical school. The bill authorizes the board to enter into affiliation or coordinating agreement with any institution or entity to make joint appointments to other institutions in The Texas A&M University System. The bill establishes the medical school account as a separate account in the general revenue fund and provides that the fund may only be used to establish and maintain the medical school. The bill requires the Public Utility Commission (PUC) to determine whether a local exchange company is imposing switched access rates on a combined originating and terminating basis that are in excess of the rates allowed for recovery of switched access revenue. If the PUC makes that determination, the local exchange company is required to deposit an amount equal to the excess amount into the medical school account. EFFECTIVE DATE September 1, 2001.