SRC-JBJ, JEC S.B. 126 77(R)BILL ANALYSIS


Senate Research CenterS.B. 126
By: Madla
Intergovernmental Relations
6/18/2001
Enrolled


DIGEST AND PURPOSE 

Currently, rural areas of  Texas are experiencing a great shortage of
health care professional practices. S.B. 126 establishes the Rural
Communities Health Care Investment Program.  This program provides for loan
repayment assistance and financial stipends for health care professionals
who relocate or initiate their practices in rural areas. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the executive committee of the Center
for Rural Health Initiatives  in SECTION 2 (Sections 106.305 and 106.306,
Health and Safety Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 106.025(a), Health and Safety Code, to require
the Center for Rural Health Initiatives (center) to seek state and federal
money available for economic development in rural areas for programs under
this chapter. 

SECTION 2.  Amends Chapter 106, Health and Safety Code, by adding
Subchapter H, as follows: 

SUBCHAPTER H.  RURAL COMMUNITIES HEALTH CARE INVESTMENT PROGRAM

Sec. 106.301.  DEFINITIONS.  Defines "health professional" and "medically
underserved community." 

Sec. 106.302.   ADVISORY PANEL.  Requires the center to appoint an advisory
panel to assist in the center's duties under this subchapter, and requires
the advisory panel to consist of certain individuals.   

Sec.  106.303.  LOAN REIMBURSEMENT PROGRAM.  Requires the executive
committee of the center to establish a program to provide loan
reimbursement  for health professionals who agree to serve in medically
underserved communities. 

Sec.  106.304.  STIPEND PROGRAM.  Requires the executive committee to
establish a program to provide a stipend for health professionals who agree
to serve in medically underserved communities.  Sets forth requirements
regarding a stipend under this section. 
  
Sec.  106.305.  CONTRACT REQUIRED.  Authorizes a health care professional
to receive assistance under this subchapter only if the health professional
signs a contract agreeing to provide health care services in a medically
underserved community, and authorizes a student in a degree program
preparing to become a health professional to contract with the center prior
to obtaining a health professional license in order to participate in the
loan reimbursement program.  Authorizes the center to contract with a
health professional for part-time services under the stipend program, and
provides that a health professional who participates in any loan
reimbursement program is not eligible for a stipend.  Requires the contract
under this section to  provide that a health professional who does not
provide the required services to the community or provides those services
for less than the required time is personally liable to the state for
certain reimbursements and penalties.  Requires amounts recovered to be
deposited in the permanent endowment fund for the rural communities  health
care investment program under Section 106.308. 

Sec. 106.306.  POWERS AND DUTIES OF CENTER.  Requires the executive
committee to adopt rules necessary for the administration of this
subchapter that must include certain guidelines.  Authorizes the executive
committee by rule to designate areas of the state as medically underserved
communities, and requires the executive committee to make reasonable
efforts to contract with health professionals from a variety of different
health professions. 

Sec. 106.307.  USE OF TELECOMMUNICATION AND MEDICINE.  Prohibits a health
professional who participates in a program under this subchapter from using
telecommunication technology, including telemedicine, as the sole or
primary method of providing services and from using telecommunication
technology as a substitute for providing health care services in person.
Authorizes a health care professional who participates in a program under
this subchapter to use telecommunication technology only to supplement or
enhance the health care services provided by the health professional. 
 
Sec. 106.308.  PERMANENT ENDOWMENT FUND.  Provides that the permanent
endowment fund for the rural communities health care investment program is
a special fund in the treasury outside the general revenue fund.  Provides
that the fund has certain components. 

Sec. 106.309.  ADMINISTRATION AND USE OF FUND.  (a) Authorizes the center
to administer the permanent endowment fund for the program.  Requires the
comptroller to administer the fund if the center elects not to do so. 

(b) Requires the administrator of the fund to invest the fund in a manner
intended to preserve the purchasing power of the fund's assets and the
fund's annual distributions. Authorizes the administrator to acquire,
exchange, sell, supervise, manage, or retain, through procedures and
subject to restrictions the administrator considers appropriate, any kind
of investment of the fund's assets that prudent investors, exercising
reasonable care, skill, and caution, would acquire or retain in light of
the purposes, terms, distributions requirements, and other circumstances of
the fund then prevailing, taking into consideration the investment of all
the assets of the fund rather than a single investment. 

(c) Authorizes the comptroller or center to solicit and accept gifts and
grants to the fund. 

(d) Requires annual distributions for the fund to be determined by the
investment and distribution policy adopted by the administrator of the fund
for the fund's assets. 

(e) Prohibits money in the fund from being used for any purpose except as
provided by Subsection (f). 

(f) Authorizes the amount available for distribution from the fund,
including any gift or grant, to be appropriated only for providing stipends
and loan reimbursement under the programs authorized by this subchapter and
to pay the expenses of managing the fund. Provides that the expenditure of
a gift or grant is subject to any limitation or requirement placed on the
gift or grant by the donor or granting entity. 

(g) Provides that Sections 403.095 and 404.071, Government Code, do not
apply to the fund, and that Section 404.094(d), Government Code, applies to
the fund. 
 
Sec. 106.310.  REPORTING REQUIREMENT.  Requires the center to provide a
report on the permanent endowment fund for the program to the Legislative
Budget Board not later than November 1 of each year.  Requires the report
to include the total amount of money the center received from the fund, the
purpose for which the money was used, and any additional information that
may be requested by the Legislative Budget Board. 

SECTION 3.  Amends Chapter 61C, Education Code, by adding Section 61.0899,
as follows: 

Sec. 61.0899.  ASSISTANCE IN CERTAIN RURAL HEALTH CARE LOAN REIMBURSEMENT
AND STIPEND PROGRAMS.  Requires the Texas Higher Education Coordinating
Board (board), in cooperation with the center and the center's advisory
panel established under Section 106.302, Health and Safety Code, to ensure
the board seeks to obtain the maximum amount of funds from any source,
including federal funds, to support the loan reimbursement and stipend
program. 

SECTION 4.  Effective date:  upon passage or September 1, 2001.