By Farabee                                            H.B. No. 3373
         77R6527 YDB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to loan repayment by certain health professionals.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 204.104, Occupations Code, is transferred
 1-5     to Chapter 61, Education Code, redesignated as Subchapter X of that
 1-6     chapter, and amended to read as follows:
 1-7                     SUBCHAPTER X. REPAYMENT OF CERTAIN
 1-8                     HEALTH PROFESSIONAL EDUCATION LOANS
 1-9           Sec. 61.951 [204.104].  RURAL HEALTH PROFESSIONAL [PHYSICIAN
1-10     ASSISTANT] LOAN REIMBURSEMENT PROGRAM. (a)  In this subchapter,
1-11     "health professional" includes:
1-12                 (1)  a physicians assistant;
1-13                 (2)  a registered nurse, including an advanced nurse
1-14     practitioner; and
1-15                 (3)  a pharmacist.
1-16           (b)  The board may [A program shall be established to]
1-17     provide student loan reimbursement for graduates of appropriate
1-18     [physician assistant] training programs for health professionals in
1-19     [from] any state who practice in rural health professional shortage
1-20     areas and medically underserved areas identified in this state by
1-21     the Texas Department of Health.  The appropriate licensing
1-22     [physician assistant] board shall fund the program by designating
1-23     annually a portion of the revenue generated [under this chapter]
1-24     from [physician assistant] licensing fees for that profession.
 2-1           (c) [(b)]  The board [Center for Rural Health Initiatives]
 2-2     shall establish policies for and adopt rules to administer the loan
 2-3     program.
 2-4           (d) [(c)]  The appropriate licensing [physician assistant
 2-5     board shall authorize and the medical] board shall transfer
 2-6     annually the funds designated under Subsection (b) [(a)] to the
 2-7     Texas Higher Education Coordinating Board [Center for Rural Health
 2-8     Initiatives] to administer the loan program.
 2-9           SECTION 2. Subchapter F, Chapter 106, Health and Safety Code,
2-10     is transferred to Chapter 61, Education Code, redesignated as
2-11     Subchapter Y of that chapter, and amended to read as follows:
2-12     SUBCHAPTER Y [F]. TEXAS HEALTH SERVICE CORPS PROGRAM FOR MEDICALLY
2-13                              UNDERSERVED AREAS
2-14           Sec. 61.976 [106.151].  DEFINITIONS. In this chapter:
2-15                 (1)  "Health professional" includes:
2-16                       (A)  a physician;
2-17                       (B)  a registered nurse, including an advanced
2-18     nurse practitioner; and
2-19                       (C)  a pharmacist.
2-20                 (2)  "Medically underserved area" means an area
2-21     designated by the United States Secretary of Health and Human
2-22     Services as having:
2-23                       (A)  a shortage of personal health services or a
2-24     population group that has such a shortage as provided by 42 U.S.C.
2-25     Section 300e-1(7); or
2-26                       (B)  a health professional shortage as provided
2-27     by 42 U.S.C. Section 254e(a)(1).
 3-1                 (3) [(2)]  "Physician" means a resident physician who
 3-2     is enrolled in an accredited residency training program in this
 3-3     state in the specialty of:
 3-4                       (A)  family practice;
 3-5                       (B)  general internal medicine;
 3-6                       (C)  general pediatric medicine; or
 3-7                       (D)  general obstetrics and gynecology.
 3-8           Sec. 61.977 [106.152].  TEXAS HEALTH SERVICE CORPS PROGRAM.
 3-9     (a)  The board [executive committee] shall provide [establish] a
3-10     program [in the center] to assist communities in recruiting and
3-11     retaining health professionals [physicians] to practice in
3-12     medically underserved areas.
3-13           (b)  The board [executive committee] by rule shall establish:
3-14                 (1)  eligibility criteria for applicants;
3-15                 (2)  stipend application procedures;
3-16                 (3)  guidelines relating to stipend amounts;
3-17                 (4)  procedures for evaluating stipend applications;
3-18     and
3-19                 (5)  a system of priorities relating to the:
3-20                       (A)  geographic areas covered;
3-21                       (B)  for physicians, medical specialties eligible
3-22     to receive funding under the program; and
3-23                       (C)  level of stipend support.
3-24           Sec. 61.978 [106.153].  ADMINISTRATION. (a)  The board
3-25     [executive committee] shall adopt rules necessary to administer
3-26     this subchapter[,] and [the center] shall administer the program in
3-27     accordance with those rules.
 4-1           (b)  The board [center] shall provide for conducting
 4-2     [conduct] field research, collecting [collect] information, and
 4-3     preparing [prepare] statistical and other reports relating to the
 4-4     need for the program.
 4-5           (c)  The board [center] may not spend for the administration
 4-6     of this subchapter [center's administrative costs] more than 10
 4-7     percent of the amount appropriated to administer this subchapter.
 4-8           Sec. 61.979 [106.154].  REQUIRED CONTRACT. (a)  The board
 4-9     [center] may award a stipend to a health professional [physician]
4-10     under this subchapter if the health professional [physician] enters
4-11     into a written contract to provide services in a medically
4-12     underserved area for at least one year for each year that the
4-13     health professional [physician] receives the stipend.
4-14           (b)  The contract must provide that if the health
4-15     professional [physician] does not provide the required services in
4-16     the medically underserved area or provides those services for less
4-17     than the required term, the health professional [physician] is
4-18     personally liable to the state for:
4-19                 (1)  the total amount of the stipend the health
4-20     professional [physician] receives;
4-21                 (2)  interest on that total amount for the period
4-22     beginning on the date the health professional [physician] signs the
4-23     contract and ending on the date the health professional [physician]
4-24     repays the amount of the stipend computed at a rate equal to the
4-25     sum of:
4-26                       (A)  the auction average rate quoted on a bank
4-27     discount basis for 26-week treasury bills issued by the United
 5-1     States government, as published by the Federal Reserve Board, for
 5-2     the week preceding the week in which the contract is signed; and
 5-3                       (B)  five percent; and
 5-4                 (3)  the state's reasonable expenses incurred in
 5-5     obtaining payment, including reasonable attorney's fees.
 5-6           Sec. 61.980 [106.155].  STIPENDS. (a)  The board [center]
 5-7     shall award stipends to health professionals [physicians] for
 5-8     one-year periods.  A stipend awarded under this subchapter may not
 5-9     exceed $15,000 each year.
5-10           (b)  The board [center] may renew a stipend used to assist a
5-11     particular health professional [physician].
5-12           (c)  A physician is not eligible for a stipend under this
5-13     subchapter for a period longer than is ordinarily and customarily
5-14     required for the completion of residency training for first board
5-15     eligibility.
5-16           (d)  A health professional [physician] who receives a stipend
5-17     under this subchapter is not eligible to receive assistance under a
5-18     state educational loan repayment program or other state incentive
5-19     program.
5-20           Sec. 61.981 [106.156].  FUNDING. The board [center] may seek,
5-21     receive, and spend money received through an appropriation, grant,
5-22     donation, or reimbursement from any public or private source to
5-23     administer this subchapter.
5-24           SECTION 3. Section 61.537(a), Education Code, is amended to
5-25     read as follows:
5-26           (a)  The [coordinating] board shall adopt rules necessary for
5-27     the administration of this subchapter, including rules [a rule]
 6-1     that:
 6-2                 (1)  set [sets] a maximum amount of repayment
 6-3     assistance that may be received by a physician in one year;
 6-4                 (2)  give priority for repayment assistance to an
 6-5     eligible physician who is or will be providing service in a
 6-6     medically underserved area; and
 6-7                 (3)  authorize [a rule that authorizes] the Family
 6-8     Practice Residency Advisory Committee to establish other priorities
 6-9     among eligible physicians for repayment assistance, by taking into
6-10     account the degree of physician shortage, geographic locations,
6-11     [whether the physician is or will be providing service in a
6-12     medically underserved area,] and any other criteria the committee
6-13     considers appropriate.
6-14           SECTION 4. Section 61.609(a), Education Code, is amended to
6-15     read as follows:
6-16           (a)  The [coordinating] board shall adopt rules necessary for
6-17     the administration of this subchapter, including rules [a rule]
6-18     that:
6-19                 (1)  set [sets] a maximum amount of repayment
6-20     assistance that may be received by a physical therapist in one
6-21     year; and
6-22                 (2)  give priority for repayment assistance to a
6-23     physical therapist who is or will be providing service in an
6-24     underserved area with respect to physical therapy services.
6-25           SECTION 5. Section 61.656, Education Code, is amended by
6-26     adding Subsection (f) to read as follows:
6-27           (f)  The board shall adopt a rule giving priority for
 7-1     financial aid or loan repayment assistance to a professional
 7-2     nursing student or a vocational nursing student who is or will be
 7-3     providing service in an underserved area with respect to nursing
 7-4     services.
 7-5           SECTION 6. Section 61.904(a), Education Code, is amended to
 7-6     read as follows:
 7-7           (a)  The board may provide repayment assistance for the
 7-8     repayment of any student loan for education at a public or private
 7-9     institution of higher education [in this state], including loans
7-10     for undergraduate education, received by a dentist through any
7-11     lender.
7-12           SECTION 7. Section 61.908(a), Education Code, is amended to
7-13     read as follows:
7-14           (a)  The board shall adopt rules necessary for the
7-15     administration of this subchapter, including rules [a rule] that:
7-16                 (1)  set [sets] a maximum amount of repayment
7-17     assistance that may be received by a dentist in one year;
7-18                 (2)  give priority for repayment assistance to a
7-19     dentist who is or will be providing services in an underserved area
7-20     with respect to dental services; and
7-21                 (3)  authorize[.  The board may consult with] the Oral
7-22     Health Services Advisory Committee to assist the board in
7-23     establishing other priorities among eligible dentists for repayment
7-24     assistance, taking into account the degree of an area's shortage of
7-25     dental services, geographic locations, [whether the dentist is or
7-26     will be providing service in an underserved area with respect to
7-27     dental services,] and any other criteria the board considers
 8-1     appropriate.
 8-2           SECTION 8. Effective January 1, 2002:
 8-3                 (1)  the powers and duties of the Texas State Board of
 8-4     Physician Assistant Examiners relating to the loan reimbursement
 8-5     program under Subchapter X, Chapter 61, Education Code, as
 8-6     redesignated and amended by this Act, and of the executive
 8-7     committee of the Center for Rural Health Initiatives relating to
 8-8     the Texas Health Service Corps Program for Medically Underserved
 8-9     Areas under Subchapter Y, Chapter 61, Education Code, as
8-10     redesignated and amended by this Act, are transferred as provided
8-11     by this Act, on the effective date of this Act, to the Texas Higher
8-12     Education Coordinating Board;
8-13                 (2)  all personnel, property, equipment, records, and
8-14     unobligated and unexpended appropriations of the Texas State Board
8-15     of Physician Assistant Examiners or of the Center for Rural Health
8-16     Initiatives, as applicable, relating to a program specified by
8-17     Subdivision (1) of this section are transferred to the Texas Higher
8-18     Education Coordinating Board; and
8-19                 (3)  a rule or form adopted by the Texas State Board of
8-20     Physician Assistant Examiners or the Center for Rural Health
8-21     Initiatives, as applicable, relating to a program specified by
8-22     Subdivision (1) of this section is a rule or form of the Texas
8-23     Higher Education Coordinating Board and remains in effect until
8-24     amended or repealed by the board.
8-25           SECTION 9. This Act takes effect September 1, 2001.