By:  Madla                                             S.B. No. 126
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation and funding of a rural communities health
 1-3     care investment program to attract and retain rural health care
 1-4     professionals.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Chapter 106, Health and Safety Code, is amended
 1-7     by adding Subchapter H to read as follows:
 1-8       SUBCHAPTER H.  RURAL COMMUNITIES HEALTH CARE INVESTMENT PROGRAM
 1-9           Sec. 106.301.  DEFINITIONS.  In this subchapter:
1-10                 (1)  "Health professional" means a person who holds a
1-11     license, certificate, registration, permit, or other form of
1-12     authorization required by law or a state agency rule that must be
1-13     obtained by an individual to practice in a health care profession.
1-14                 (2)  "Medically underserved community" means a
1-15     community:
1-16                       (A)  located in a county with a population not
1-17     greater than 50,000;
1-18                       (B)  designated under state or federal law as:
1-19                             (i)  a health professional shortage area;
1-20     or
1-21                             (ii)  a medically underserved area; or
1-22                       (C)  designated a medically underserved community
1-23     by the Center for Rural Health Initiatives.
1-24           Sec. 106.302.  ADVISORY PANEL.  The center shall appoint an
1-25     advisory panel to assist in the center's duties under this
 2-1     subchapter.  The advisory panel must consist of at least:
 2-2                 (1)  one representative from the Texas Higher Education
 2-3     Coordinating Board;
 2-4                 (2)  one representative from the institutions of higher
 2-5     education having degree programs for the health professions
 2-6     participating in the programs under this subchapter;
 2-7                 (3)  one representative from a hospital in a medically
 2-8     underserved community;
 2-9                 (4)  one physician practicing in a medically
2-10     underserved community;
2-11                 (5)  one health professional, other than a physician,
2-12     practicing in a medically underserved community; and
2-13                 (6)  one public representative who resides in a
2-14     medically underserved community.
2-15           Sec. 106.303.  LOAN REIMBURSEMENT PROGRAM.  The executive
2-16     committee shall establish a program in the center to assist
2-17     communities in recruiting health professionals to practice in
2-18     medically underserved communities by providing loan reimbursement
2-19     for health professionals who agree to serve in those communities.
2-20           Sec. 106.304.  STIPEND PROGRAM.  The executive committee
2-21     shall establish a program in the center to assist communities in
2-22     recruiting health professionals to practice in medically
2-23     underserved communities by providing a stipend to health
2-24     professionals who agree to serve in those communities.
2-25           Sec. 106.305.  CONTRACT REQUIRED.  (a)  A health professional
2-26     may receive assistance under this subchapter only if the health
 3-1     professional signs a contract agreeing to provide health care
 3-2     services in a medically underserved community.
 3-3           (b)  A student in a degree program preparing to become a
 3-4     health professional may contract with the center for the loan
 3-5     reimbursement program under Section 106.303 before obtaining the
 3-6     license required to become a health professional.
 3-7           (c)  The center may contract with a health professional for
 3-8     part-time services under the stipend program established under
 3-9     Section 106.304.
3-10           (d)  A health professional who participates in any loan
3-11     reimbursement program is not eligible for a stipend under Section
3-12     106.304.
3-13           (e)  A contract under this section must provide that a health
3-14     professional who does not provide the required services to the
3-15     community or provides those services for less than the required
3-16     time is personally liable to the state for:
3-17                 (1)  the total amount of assistance the health
3-18     professional received from the center and the medically underserved
3-19     community;
3-20                 (2)  interest on the amount under Subdivision (1) at a
3-21     rate set by the executive committee; and
3-22                 (3)  the state's reasonable expenses incurred in
3-23     obtaining payment, including reasonable attorney's fees.
3-24           Sec. 106.306.  POWERS AND DUTIES OF CENTER.  (a)  The
3-25     executive committee shall adopt rules necessary for the
3-26     administration of this subchapter, including guidelines for:
 4-1                 (1)  developing contracts under which loan or stipend
 4-2     recipients provide services to qualifying communities;
 4-3                 (2)  identifying the duties of the state, state agency,
 4-4     loan or stipend recipient, and medically underserved community
 4-5     under the loan or stipend contract;
 4-6                 (3)  determining a rate of interest to be charged under
 4-7     Section 106.305(e)(2);
 4-8                 (4)  insuring that a loan reimbursement or stipend
 4-9     recipient provides Medicare or Medicaid patients access to health
4-10     services in qualifying communities;
4-11                 (5)  encouraging the use of telecommunications or
4-12     telemedicine, as appropriate;
4-13                 (6)  prioritizing the provision of loans and stipends
4-14     to health professionals who do not have access to any other state
4-15     loan forgiveness, loan repayment, or stipend program;
4-16                 (7)  prioritizing the provision of loans and stipends
4-17     to health professionals who are graduates of health professional
4-18     degree programs in this state;
4-19                 (8)  encouraging a medically underserved community
4-20     served by a loan repayment or stipend recipient to contribute to
4-21     the cost of the loan reimbursement or stipend when making a
4-22     contribution is feasible; and
4-23                 (9)  requiring a medically underserved community served
4-24     by a loan repayment or stipend recipient to assist the center in
4-25     contracting with the loan or stipend recipient who will serve that
4-26     community.
 5-1           (b)  The executive committee by rule may designate areas of
 5-2     the state as medically underserved communities.
 5-3           (c)  The executive committee shall make reasonable efforts to
 5-4     contract with health professionals from a variety of different
 5-5     health professions.
 5-6           Sec. 106.307.  TRUST FUND.  (a)  The rural communities health
 5-7     care investment program trust fund is created as a trust fund with
 5-8     the comptroller and shall be administered by the center as trustee
 5-9     on behalf of medically underserved communities.
5-10           (b)  The center, as trustee of the rural communities health
5-11     care investment program trust fund, may accept and administer gifts
5-12     and grants from any public or private person or entity for the use
5-13     and benefit of any program described or created under this chapter.
5-14           SECTION 2.  Subchapter C, Chapter 61, Education Code, is
5-15     amended by adding Section 61.0899 to read as follows:
5-16           Sec. 61.0899.  ASSISTANCE IN CERTAIN RURAL HEALTH CARE LOAN
5-17     FORGIVENESS PROGRAMS.  The board shall, in cooperation with the
5-18     Center for Rural Health Initiatives and the center's advisory panel
5-19     established under Section 106.302, Health and Safety Code, develop
5-20     a program to ensure that the board and any institution of higher
5-21     education shall seek to obtain the maximum amount of funds from any
5-22     source, including federal funds, to support programs to provide
5-23     student loan reimbursement or stipends for graduates of degree
5-24     programs in this state who practice or agree to practice in a
5-25     medically underserved community.
5-26           SECTION 3.  This Act takes effect immediately if it receives
 6-1     a vote of two-thirds of all the members elected to each house, as
 6-2     provided by Section 39, Article III, Texas Constitution.  If this
 6-3     Act does not receive the vote necessary for immediate effect, this
 6-4     Act takes effect September 1, 2001.