77R4202 JAT-D                          
         By Madla                                               S.B. No. 126
         Substitute the following for S.B. No. 126:
         By Maxey                                           C.S.S.B. No. 126
                                A BILL TO BE ENTITLED
 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. Section 106.025(a), Health and Safety Code, is
 1-7     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
 2-1     technology to:
 2-2                       (A)  ensure that rural areas receive the maximum
 2-3     benefits of telemedicine and distance learning by promoting a
 2-4     transmission rate structure that accommodates rural needs and by
 2-5     improving the telecommunications infrastructure in rural areas; and
 2-6                       (B)  provide access to specialty expertise,
 2-7     clinical consultation, and continuing education;
 2-8                 (9)  assist rural health care providers, communities,
 2-9     and individuals in applying for public and private grants and
2-10     programs;
2-11                 (10)  encourage the development of regional emergency
2-12     transportation networks;
2-13                 (11)  work with state agencies, universities, and
2-14     private interest groups to conduct and promote research on rural
2-15     health issues, maintain and collect a timely data base, and develop
2-16     and maintain a rural health resource library;
2-17                 (12)  solicit the assistance of other offices or
2-18     programs of rural health in this state that are university-based to
2-19     carry out the duties of this chapter;
2-20                 (13)  disseminate information and provide technical
2-21     assistance to communities, health care providers, and individual
2-22     consumers of health care services;
2-23                 (14)  develop plans to implement a fee-for-service
2-24     health care professional recruitment service and a medical supplies
2-25     group purchasing program within the center;
2-26                 (15)  develop and initiate, in conjunction with the
2-27     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
3-27     by adding Subchapter H to read as follows:
 4-1       SUBCHAPTER H.  RURAL COMMUNITIES HEALTH CARE INVESTMENT PROGRAM
 4-2           Sec. 106.301.  DEFINITIONS. In this subchapter:
 4-3                 (1)  "Health professional" means a person other than a
 4-4     physician who holds a license, certificate, registration, permit,
 4-5     or other form of authorization required by law or a state agency
 4-6     rule that must be obtained by an individual to practice in a health
 4-7     care profession.
 4-8                 (2)  "Medically underserved community" means a
 4-9     community that:
4-10                       (A)  is located in a county with a population of
4-11     50,000 or less;
4-12                       (B)  has been designated under state or federal
4-13     law as:
4-14                             (i)  a health professional shortage area;
4-15     or
4-16                             (ii)  a medically underserved area; or
4-17                       (C)  has been designated as a medically
4-18     underserved community by the center.
4-19           Sec. 106.302.  ADVISORY PANEL. The center shall appoint an
4-20     advisory panel to assist in the center's duties under this
4-21     subchapter.  The advisory panel must consist of at least:
4-22                 (1)  one representative from the Texas Higher Education
4-23     Coordinating Board;
4-24                 (2)  one representative from the institutions of higher
4-25     education having degree programs for the health professions
4-26     participating in the programs under this subchapter;
4-27                 (3)  one representative from a hospital in a medically
 5-1     underserved community;
 5-2                 (4)  one physician practicing in a medically
 5-3     underserved community;
 5-4                 (5)  one health professional, other than a physician,
 5-5     practicing in a medically underserved community; and
 5-6                 (6)  one public representative who resides in a
 5-7     medically underserved community.
 5-8           Sec. 106.303.  LOAN REIMBURSEMENT PROGRAM. The executive
 5-9     committee shall establish a program in the center to assist
5-10     communities in recruiting health professionals to practice in
5-11     medically underserved communities by providing loan reimbursement
5-12     for health professionals who serve in those communities.
5-13           Sec. 106.304.  STIPEND PROGRAM. (a)  The executive committee
5-14     shall establish a program in the center to assist communities in
5-15     recruiting health professionals to practice in medically
5-16     underserved communities by providing a stipend to health
5-17     professionals who agree to serve in those communities.
5-18           (b)  A stipend awarded under this section shall be paid in
5-19     periodic installments.
5-20           (c)  A health professional who participates in the program
5-21     established under this section must establish an office and
5-22     residency in the medically underserved area before receiving any
5-23     portion of the stipend.
5-24           Sec. 106.305.  CONTRACT REQUIRED. (a)  A health professional
5-25     may receive assistance under this subchapter only if the health
5-26     professional signs a contract agreeing to provide health care
5-27     services in a medically underserved community.
 6-1           (b)  A student in a degree program preparing to become a
 6-2     health professional may contract with the center for the loan
 6-3     reimbursement program under Section 106.303 before obtaining the
 6-4     license required to become a health professional.
 6-5           (c)  The center may contract with a health professional for
 6-6     part-time services under the stipend program established under
 6-7     Section 106.304.
 6-8           (d)  A health professional who participates in any loan
 6-9     reimbursement program is not eligible for a stipend under Section
6-10     106.304.
6-11           (e)  A contract under this section must provide that a health
6-12     professional who does not provide the required services to the
6-13     community or provides those services for less than the required
6-14     time is personally liable to the state for:
6-15                 (1)  the total amount of assistance the health
6-16     professional received from the center and the medically underserved
6-17     community;
6-18                 (2)  interest on the amount under Subdivision (1) at a
6-19     rate set by the executive committee;
6-20                 (3)  the state's reasonable expenses incurred in
6-21     obtaining payment, including reasonable attorney's fees; and
6-22                 (4)  a penalty as established by the executive
6-23     committee by rule to help ensure compliance with the contract.
6-24           (f)  Amounts recovered under Subsection (e) shall be
6-25     deposited in the permanent endowment fund for the rural communities
6-26     health care investment program under Section 106.308.
6-27           Sec. 106.306.  POWERS AND DUTIES OF CENTER. (a)  The
 7-1     executive committee shall adopt rules necessary for the
 7-2     administration of this subchapter, including guidelines for:
 7-3                 (1)  developing contracts under which loan
 7-4     reimbursement or stipend recipients provide services to qualifying
 7-5     communities;
 7-6                 (2)  identifying the duties of the state, state agency,
 7-7     loan reimbursement or stipend recipient, and medically underserved
 7-8     community under the loan reimbursement or stipend contract;
 7-9                 (3)  determining a rate of interest to be charged under
7-10     Section 106.305(e)(2);
7-11                 (4)  ensuring that a loan reimbursement or stipend
7-12     recipient provides access to health services to participants in
7-13     government-funded health benefits programs in qualifying
7-14     communities;
7-15                 (5)  encouraging the use of telecommunications or
7-16     telemedicine, as appropriate;
7-17                 (6)  prioritizing the provision of loan reimbursements
7-18     and stipends to health professionals who are not eligible for any
7-19     other state loan forgiveness, loan repayment, or stipend program;
7-20                 (7)  prioritizing the provision of loan reimbursements
7-21     and stipends to health professionals who are graduates of health
7-22     professional degree programs in this state;
7-23                 (8)  encouraging a medically underserved community
7-24     served by a loan reimbursement or stipend recipient to contribute
7-25     to the cost of the loan reimbursement or stipend when making a
7-26     contribution is feasible; and
7-27                 (9)  requiring a medically underserved community served
 8-1     by a loan reimbursement or stipend recipient to assist the center
 8-2     in contracting with the loan reimbursement or stipend recipient who
 8-3     will serve that community.
 8-4           (b)  The executive committee by rule may designate areas of
 8-5     the state as medically underserved communities.
 8-6           (c)  The executive committee shall make reasonable efforts to
 8-7     contract with health professionals from a variety of different
 8-8     health professions.
 8-9           Sec. 106.307.  USE OF TELECOMMUNICATION AND TELEMEDICINE. A
8-10     health professional who participates in a program under this
8-11     subchapter may not use telecommunication technology, including
8-12     telemedicine, as the sole or primary method of providing services
8-13     and may not use telecommunication technology as a substitute for
8-14     providing health care services in person.  A health professional
8-15     who participates in a program under this subchapter may use
8-16     telecommunication technology only to supplement or enhance the
8-17     health care services provided by the health professional.
8-18           Sec. 106.308.  PERMANENT ENDOWMENT FUND. (a)  The permanent
8-19     endowment fund for the rural communities health care investment
8-20     program is a special fund in the treasury outside the general
8-21     revenue fund.
8-22           (b)  The fund is composed of:
8-23                 (1)  money transferred to the fund at the direction of
8-24     the legislature;
8-25                 (2)  gifts and grants contributed to the fund;
8-26                 (3)  the returns received from investment of money in
8-27     the fund; and
 9-1                 (4)  amounts recovered under Section 106.305(e).
 9-2           Sec. 106.309.  ADMINISTRATION AND USE OF FUND. (a)  The
 9-3     center may administer the permanent endowment fund for the rural
 9-4     communities health care investment program.  If the center elects
 9-5     not to administer the fund, the comptroller shall administer the
 9-6     fund.
 9-7           (b)  The administrator of the fund shall invest the fund in a
 9-8     manner intended to preserve the purchasing power of the fund's
 9-9     assets and the fund's annual distributions.  The administrator may
9-10     acquire, exchange, sell, supervise, manage, or retain, through
9-11     procedures and subject to restrictions the administrator considers
9-12     appropriate, any kind of investment of the fund's assets that
9-13     prudent investors, exercising reasonable care, skill, and caution,
9-14     would acquire or retain in light of the purposes, terms,
9-15     distribution requirements, and other circumstances of the fund then
9-16     prevailing, taking into consideration the investment of all the
9-17     assets of the fund rather than a single investment.
9-18           (c)  The comptroller or the center may solicit and accept
9-19     gifts and grants to the fund.
9-20           (d)  Annual distributions for the fund shall be determined by
9-21     the investment and distribution policy adopted by the administrator
9-22     of the fund for the fund's assets.
9-23           (e)  Except as provided by Subsection (f), money in the fund
9-24     may not be used for any purpose.
9-25           (f)  The amount available for distribution from the fund,
9-26     including any gift or grant, may be appropriated only for providing
9-27     stipends and loan reimbursement under the programs authorized by
 10-1    this subchapter and to pay the expenses of managing the fund.  The
 10-2    expenditure of a gift or grant is subject to any limitation or
 10-3    requirement placed on the gift or grant by the donor or granting
 10-4    entity.
 10-5          (g)  Sections 403.095 and 404.071, Government Code, do not
 10-6    apply to the fund.  Section 404.094(d), Government Code, applies to
 10-7    the fund.
 10-8          Sec. 106.310.  REPORTING REQUIREMENT. The center shall
 10-9    provide a report on the permanent endowment fund for the rural
10-10    communities health care investment program to the Legislative
10-11    Budget Board not later than November 1 of each year.  The report
10-12    must include the total amount of money the center received from the
10-13    fund, the purpose for which the money was used, and any additional
10-14    information that may be requested by the Legislative Budget Board.
10-15          SECTION 3.  Subchapter C, Chapter 61, Education Code, is
10-16    amended by adding Section 61.0899 to read as follows:
10-17          Sec. 61.0899.  ASSISTANCE IN CERTAIN RURAL HEALTH CARE LOAN
10-18    REIMBURSEMENT AND STIPEND PROGRAMS. The board shall, in cooperation
10-19    with the Center for Rural Health Initiatives and the center's
10-20    advisory panel established under Section 106.302, Health and Safety
10-21    Code, ensure that the board  seeks to obtain the maximum amount of
10-22    funds from any source, including federal funds, to support programs
10-23    to provide student loan reimbursement or stipends for graduates of
10-24    degree programs in this state who practice or agree to practice in
10-25    a medically underserved community.
10-26          SECTION 4.  This Act takes effect immediately if it receives
10-27    a vote of two-thirds of all the members elected to each house, as
 11-1    provided by Section 39, Article III, Texas Constitution.  If this
 11-2    Act does not receive the vote necessary for immediate effect, this
 11-3    Act takes effect September 1, 2001.