1-1                                   AN ACT
 1-2     relating to the creation of the Rural Communities Health Care
 1-3     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.  Subsection (a), Section 106.025, Health and
 1-7     Safety Code, is amended to read as follows:
 1-8           (a)  The center shall:
 1-9                 (1)  educate the public and recommend appropriate
1-10     public policies regarding the continued viability of rural health
1-11     care delivery in this state;
1-12                 (2)  monitor and work with state and federal agencies
1-13     to assess the impact of proposed rules on rural areas;
1-14                 (3)  provide impact statements of proposed rules as
1-15     considered appropriate by the center;
1-16                 (4)  streamline regulations to assist in the
1-17     development of service diversification of health care facilities;
1-18                 (5)  target state and federal programs to rural areas;
1-19                 (6)  promote and develop community involvement and
1-20     community support in maintaining, rebuilding, or diversifying local
1-21     health services;
1-22                 (7)  promote and develop diverse and innovative health
1-23     care service models in rural areas;
1-24                 (8)  encourage the use of advanced communications
1-25     technology to:
 2-1                       (A)  ensure that rural areas receive the maximum
 2-2     benefits of telemedicine and distance learning by promoting a
 2-3     transmission rate structure that accommodates rural needs and by
 2-4     improving the telecommunications infrastructure in rural areas; and
 2-5                       (B)  provide access to specialty expertise,
 2-6     clinical consultation, and continuing education;
 2-7                 (9)  assist rural health care providers, communities,
 2-8     and individuals in applying for public and private grants and
 2-9     programs;
2-10                 (10)  encourage the development of regional emergency
2-11     transportation networks;
2-12                 (11)  work with state agencies, universities, and
2-13     private interest groups to conduct and promote research on rural
2-14     health issues, maintain and collect a timely data base, and develop
2-15     and maintain a rural health resource library;
2-16                 (12)  solicit the assistance of other offices or
2-17     programs of rural health in this state that are university-based to
2-18     carry out the duties of this chapter;
2-19                 (13)  disseminate information and provide technical
2-20     assistance to communities, health care providers, and individual
2-21     consumers of health care services;
2-22                 (14)  develop plans to implement a fee-for-service
2-23     health care professional recruitment service and a medical supplies
2-24     group purchasing program within the center;
2-25                 (15)  develop and initiate, in conjunction with the
2-26     Texas State Board of Medical Examiners, the Board of Nurse
 3-1     Examiners, the Texas Department of Health, the Bureau of State
 3-2     Health Data and Policy Analysis, the Texas State Board of Physician
 3-3     Assistant Examiners, or other appropriate agencies, a study of
 3-4     rural health clinics to:
 3-5                       (A)  determine the efficiency and effectiveness
 3-6     of rural health clinics;
 3-7                       (B)  review the health outcomes of rural patients
 3-8     treated in rural health clinics and report those outcomes in the
 3-9     center's biennial report to the legislature;
3-10                       (C)  identify and address efficiency barriers for
3-11     the professional clinical relationship of physicians, nurses, and
3-12     physician assistants;
3-13                       (D)  assess the success of attracting primary
3-14     care physicians and allied health professionals to rural areas; and
3-15                       (E)  assess the appropriateness of the current
3-16     clinic designation process;
3-17                 (16)  develop and initiate a quality assessment program
3-18     to evaluate the health outcomes of rural patients treated in rural
3-19     health clinics; [and]
3-20                 (17)  encourage the active participation by physicians
3-21     and other health care providers in the early and periodic
3-22     screening, diagnosis, and treatment program; and
3-23                 (18)  seek state and federal money available for
3-24     economic development in rural areas for programs under this
3-25     chapter.
3-26           SECTION 2.  Chapter 106, Health and Safety Code, is amended
 4-1     by adding Subchapter H to read as follows:
 4-2       SUBCHAPTER H.  RURAL COMMUNITIES HEALTH CARE INVESTMENT PROGRAM
 4-3           Sec. 106.301.  DEFINITIONS.  In this subchapter:
 4-4                 (1)  "Health professional" means a person other than a
 4-5     physician who holds a license, certificate, registration, permit,
 4-6     or other form of authorization required by law or a state agency
 4-7     rule that must be obtained by an individual to practice in a health
 4-8     care profession.
 4-9                 (2)  "Medically underserved community" means a
4-10     community that:
4-11                       (A)  is located in a county with a population of
4-12     50,000 or less;
4-13                       (B)  has been designated under state or federal
4-14     law as:
4-15                             (i)  a health professional shortage area;
4-16     or
4-17                             (ii)  a medically underserved area; or
4-18                       (C)  has been designated as a medically
4-19     underserved community by the center.
4-20           Sec. 106.302.  ADVISORY PANEL.  The center shall appoint an
4-21     advisory panel to assist in the center's duties under this
4-22     subchapter.  The advisory panel must consist of at least:
4-23                 (1)  one representative from the Texas Higher Education
4-24     Coordinating Board;
4-25                 (2)  one representative from the institutions of higher
4-26     education having degree programs for the health professions
 5-1     participating in the programs under this subchapter;
 5-2                 (3)  one representative from a hospital in a medically
 5-3     underserved community;
 5-4                 (4)  one physician practicing in a medically
 5-5     underserved community;
 5-6                 (5)  one health professional, other than a physician,
 5-7     practicing in a medically underserved community; and
 5-8                 (6)  one public representative who resides in a
 5-9     medically underserved community.
5-10           Sec. 106.303.  LOAN REIMBURSEMENT PROGRAM.  The executive
5-11     committee shall establish a program in the center to assist
5-12     communities in recruiting health professionals to practice in
5-13     medically underserved communities by providing loan reimbursement
5-14     for health professionals who serve in those communities.
5-15           Sec. 106.304.  STIPEND PROGRAM.  (a)  The executive committee
5-16     shall establish a program in the center to assist communities in
5-17     recruiting health professionals to practice in medically
5-18     underserved communities by providing a stipend to health
5-19     professionals who agree to serve in those communities.
5-20           (b)  A stipend awarded under this section shall be paid in
5-21     periodic installments.
5-22           (c)  A health professional who participates in the program
5-23     established under this section must establish an office and
5-24     residency in the medically underserved area before receiving any
5-25     portion of the stipend.
5-26           Sec. 106.305.  CONTRACT REQUIRED.  (a)  A health professional
 6-1     may receive assistance under this subchapter only if the health
 6-2     professional signs a contract agreeing to provide health care
 6-3     services in a medically underserved community.
 6-4           (b)  A student in a degree program preparing to become a
 6-5     health professional may contract with the center for the loan
 6-6     reimbursement program under Section 106.303 before obtaining the
 6-7     license required to become a health professional.
 6-8           (c)  The center may contract with a health professional for
 6-9     part-time services under the stipend program established under
6-10     Section 106.304.
6-11           (d)  A health professional who participates in any loan
6-12     reimbursement program is not eligible for a stipend under Section
6-13     106.304.
6-14           (e)  A contract under this section must provide that a health
6-15     professional who does not provide the required services to the
6-16     community or provides those services for less than the required
6-17     time is personally liable to the state for:
6-18                 (1)  the total amount of assistance the health
6-19     professional received from the center and the medically underserved
6-20     community;
6-21                 (2)  interest on the amount under Subdivision (1) at a
6-22     rate set by the executive committee;
6-23                 (3)  the state's reasonable expenses incurred in
6-24     obtaining payment, including reasonable attorney's fees; and
6-25                 (4)  a penalty as established by the executive
6-26     committee by rule to help ensure compliance with the contract.
 7-1           (f)  Amounts recovered under Subsection (e) shall be
 7-2     deposited in the permanent endowment fund for the rural communities
 7-3     health care investment program under Section 106.308.
 7-4           Sec. 106.306.  POWERS AND DUTIES OF CENTER.  (a)  The
 7-5     executive committee shall adopt rules necessary for the
 7-6     administration of this subchapter, including guidelines for:
 7-7                 (1)  developing contracts under which loan
 7-8     reimbursement or stipend recipients provide services to qualifying
 7-9     communities;
7-10                 (2)  identifying the duties of the state, state agency,
7-11     loan reimbursement or stipend recipient, and medically underserved
7-12     community under the loan reimbursement or stipend contract;
7-13                 (3)  determining a rate of interest to be charged under
7-14     Section 106.305(e)(2);
7-15                 (4)  ensuring that a loan reimbursement or stipend
7-16     recipient provides access to health services to participants in
7-17     government-funded health benefits programs in qualifying
7-18     communities;
7-19                 (5)  encouraging the use of telecommunications or
7-20     telemedicine, as appropriate;
7-21                 (6)  prioritizing the provision of loan reimbursements
7-22     and stipends to health professionals who are not eligible for any
7-23     other state loan forgiveness, loan repayment, or stipend program;
7-24                 (7)  prioritizing the provision of loan reimbursements
7-25     and stipends to health professionals who are graduates of health
7-26     professional degree programs in this state;
 8-1                 (8)  encouraging a medically underserved community
 8-2     served by a loan reimbursement or stipend recipient to contribute
 8-3     to the cost of the loan reimbursement or stipend when making a
 8-4     contribution is feasible; and
 8-5                 (9)  requiring a medically underserved community served
 8-6     by a loan reimbursement or stipend recipient to assist the center
 8-7     in contracting with the loan reimbursement or stipend recipient who
 8-8     will serve that community.
 8-9           (b)  The executive committee by rule may designate areas of
8-10     the state as medically underserved communities.
8-11           (c)  The executive committee shall make reasonable efforts to
8-12     contract with health professionals from a variety of different
8-13     health professions.
8-14           Sec. 106.307.  USE OF TELECOMMUNICATION AND TELEMEDICINE.  A
8-15     health professional who participates in a program under this
8-16     subchapter may not use telecommunication technology, including
8-17     telemedicine, as the sole or primary method of providing services
8-18     and may not use telecommunication technology as a substitute for
8-19     providing health care services in person.  A health professional
8-20     who participates in a program under this subchapter may use
8-21     telecommunication technology only to supplement or enhance the
8-22     health care services provided by the health professional.
8-23           Sec. 106.308.  PERMANENT ENDOWMENT FUND.  (a)  The permanent
8-24     endowment fund for the rural communities health care investment
8-25     program is a special fund in the treasury outside the general
8-26     revenue fund.
 9-1           (b)  The fund is composed of:
 9-2                 (1)  money transferred to the fund at the direction of
 9-3     the legislature;
 9-4                 (2)  gifts and grants contributed to the fund;
 9-5                 (3)  the returns received from investment of money in
 9-6     the fund; and
 9-7                 (4)  amounts recovered under Section 106.305(e).
 9-8           Sec. 106.309.  ADMINISTRATION AND USE OF FUND.  (a)  The
 9-9     center may administer the permanent endowment fund for the rural
9-10     communities health care investment program.  If the center elects
9-11     not to administer the fund, the comptroller shall administer the
9-12     fund.
9-13           (b)  The administrator of the fund shall invest the fund in a
9-14     manner intended to preserve the purchasing power of the fund's
9-15     assets and the fund's annual distributions.  The administrator may
9-16     acquire, exchange, sell, supervise, manage, or retain, through
9-17     procedures and subject to restrictions the administrator considers
9-18     appropriate, any kind of investment of the fund's assets that
9-19     prudent investors, exercising reasonable care, skill, and caution,
9-20     would acquire or retain in light of the purposes, terms,
9-21     distribution requirements, and other circumstances of the fund then
9-22     prevailing, taking into consideration the investment of all the
9-23     assets of the fund rather than a single investment.
9-24           (c)  The comptroller or the center may solicit and accept
9-25     gifts and grants to the fund.
9-26           (d)  Annual distributions for the fund shall be determined by
 10-1    the investment and distribution policy adopted by the administrator
 10-2    of the fund for the fund's assets.
 10-3          (e)  Except as provided by Subsection (f), money in the fund
 10-4    may not be used for any purpose.
 10-5          (f)  The amount available for distribution from the fund,
 10-6    including any gift or grant, may be appropriated only for providing
 10-7    stipends and loan reimbursement under the programs authorized by
 10-8    this subchapter and to pay the expenses of managing the fund.  The
 10-9    expenditure of a gift or grant is subject to any limitation or
10-10    requirement placed on the gift or grant by the donor or granting
10-11    entity.
10-12          (g)  Sections 403.095 and 404.071, Government Code, do not
10-13    apply to the fund.  Section 404.094(d), Government Code, applies to
10-14    the fund.
10-15          Sec. 106.310.  REPORTING REQUIREMENT.  The center shall
10-16    provide a report on the permanent endowment fund for the rural
10-17    communities health care investment program to the Legislative
10-18    Budget Board not later than November 1 of each year.  The report
10-19    must include the total amount of money the center received from the
10-20    fund, the purpose for which the money was used, and any additional
10-21    information that may be requested by the Legislative Budget Board.
10-22          SECTION 3.  Subchapter C, Chapter 61, Education Code, is
10-23    amended by adding Section 61.0899 to read as follows:
10-24          Sec. 61.0899.  ASSISTANCE IN CERTAIN RURAL HEALTH CARE LOAN
10-25    REIMBURSEMENT AND STIPEND PROGRAMS.  The board shall, in
10-26    cooperation with the Center for Rural Health Initiatives and the
 11-1    center's advisory panel established under Section 106.302, Health
 11-2    and Safety Code, ensure that the board seeks to obtain the maximum
 11-3    amount of funds from any source, including federal funds, to
 11-4    support programs to provide student loan reimbursement or stipends
 11-5    for graduates of degree programs in this state who practice or
 11-6    agree to practice in a medically underserved community.
 11-7          SECTION 4.  This Act takes effect immediately if it receives
 11-8    a vote of two-thirds of all the members elected to each house, as
 11-9    provided by Section 39, Article III, Texas Constitution.  If this
11-10    Act does not receive the vote necessary for immediate effect, this
11-11    Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 126 passed the Senate on
         February 13, 2001, by the following vote:  Yeas 30, Nays 0, one
         present, not voting; and that the Senate concurred in House
         amendment on May 15, 2001, by the following vote:  Yeas 30, Nays 0,
         one present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 126 passed the House, with
         amendment, on May 8, 2001, by the following vote:  Yeas 147,
         Nays 0, two present, not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor