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.