1-1     By:  Truan                                             S.B. No. 514
 1-2           (In the Senate - Filed February 2, 2001; February 5, 2001,
 1-3     read first time and referred to Committee on Health and Human
 1-4     Services; April 5, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 8, Nays 0;
 1-6     April 5, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 514                 By:  Moncrief
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to expanding certain grant programs formerly limited to
1-11     physicians to include other health care professionals.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 106.101, Health and Safety Code, is
1-14     amended to read as follows:
1-15           Sec. 106.101.  DEFINITIONS.  In this subchapter:
1-16                 (1)  "Federally qualified health center" has the
1-17     meaning assigned by 42 U.S.C. Section 1396d(l)(2).
1-18                 (2)  "Health care professional" means:
1-19                       (A)  a physician assistant;
1-20                       (B)  an advanced practice nurse;
1-21                       (C)  a registered nurse;
1-22                       (D)  a radiologist;
1-23                       (E)  a pharmacist; and
1-24                       (F)  any other professional who provides health
1-25     care services, as determined by the executive committee.
1-26                 (3)  "Medically underserved community" means:
1-27                       (A)  a community located in an area in this state
1-28     with a medically underserved population;
1-29                       (B)  a community located in an area in this state
1-30     designated by the United States Secretary of Health and Human
1-31     Services as an area with a shortage of personal health services;
1-32                       (C)  a population group designated by the United
1-33     States Secretary of Health and Human Services as having a shortage
1-34     of personal health services; or
1-35                       (D)  a community that meets criteria adopted by
1-36     the board by rule, considering relevant demographic, geographic,
1-37     and environmental factors.
1-38                 (4) [(2)]  "Physician" means a person licensed to
1-39     practice medicine in this state.
1-40                 (5) [(3)]  "Primary care" means physician services in
1-41     family practice, general practice, internal medicine, pediatrics,
1-42     obstetrics, or gynecology.
1-43                 (6) [(4)]  "Start-up money" means a payment made by a
1-44     medically underserved community for reasonable costs incurred by a
1-45     physician to establish a medical office and ancillary facilities
1-46     for diagnosing and treating patients.
1-47           SECTION 2.  Subsections (a) through (d), Section 106.102,
1-48     Health and Safety Code, are amended to read as follows:
1-49           (a)  The executive committee shall establish and administer a
1-50     program under this subchapter to increase the number of physicians,
1-51     health care professionals, and federally qualified health centers
1-52     providing or assisting in the provision of primary care in
1-53     medically underserved communities.
1-54           (b)  A medically underserved community may sponsor a
1-55     physician who has completed a primary care residency program, a
1-56     health care professional, or a federally qualified health center if
1-57     the physician, health care professional, or federally qualified
1-58     health center [and] has agreed to provide or assist in the
1-59     provision of primary care in the community by contributing to
1-60     start-up money for the physician, health care professional, or
1-61     federally qualified health center and having that contribution
1-62     matched in whole or in part by state money appropriated to the
1-63     executive committee for that purpose.
1-64           (c)  A participating medically underserved community may
 2-1     provide start-up money to an eligible physician, health care
 2-2     professional, or federally qualified health center over a two-year
 2-3     period.
 2-4           (d)  The executive committee may not pay more than the
 2-5     following amounts [$25,000] to a community in a fiscal year unless
 2-6     the executive committee makes a specific finding of need by the
 2-7     community:
 2-8                 (1)  $25,000 for eligible physicians;
 2-9                 (2)  $25,000 for eligible health care professionals;
2-10     and
2-11                 (3)  $50,000 for a federally qualified health center.
2-12           SECTION 3.  Section 106.103, Health and Safety Code, is
2-13     amended to read as follows:
2-14           Sec. 106.103.  ELIGIBILITY.  To be eligible to receive money
2-15     from the executive committee, a medically underserved community
2-16     must:
2-17                 (1)  apply for the money; and
2-18                 (2)  provide evidence satisfactory to the executive
2-19     committee that it has entered into an agreement with a physician or
2-20     health care professional, or with an entity applying under this
2-21     chapter that has submitted an application for federally qualified
2-22     health center status, under which [for] the physician, health care
2-23     professional, or federally qualified health center shall [to]
2-24     provide or assist in the provision of primary care in the community
2-25     for at least two years.
2-26           SECTION 4.  Section 106.104, Health and Safety Code, is
2-27     amended to read as follows:
2-28           Sec. 106.104.  RULES.  The executive committee shall adopt
2-29     rules necessary for the administration of this subchapter,
2-30     including:
2-31                 (1)  eligibility criteria for a medically underserved
2-32     community;
2-33                 (2)  eligibility criteria for a physician;
2-34                 (3)  eligibility criteria for health care
2-35     professionals;
2-36                 (4)  eligibility criteria for federally qualified
2-37     health centers;
2-38                 (5)  minimum and maximum community contributions to the
2-39     start-up money for a physician to be matched with state money;
2-40                 (6) [(4)]  conditions under which state money must be
2-41     repaid by a community, [or] physician, health care professional, or
2-42     federally qualified health center;
2-43                 (7) [(5)]  procedures for disbursement of money by the
2-44     executive committee;
2-45                 (8) [(6)]  the form and manner in which a community
2-46     must make its contribution to the start-up money; and
2-47                 (9) [(7)]  the contents of an agreement to be entered
2-48     into by the parties to include at least:
2-49                       (A)  a credit check for an eligible physician or
2-50     health care professional; and
2-51                       (B)  community retention of interest in any
2-52     property, equipment, or durable goods for seven years.
2-53           SECTION 5.  Section 106.151, Health and Safety Code, is
2-54     amended to read as follows:
2-55           Sec. 106.151.  DEFINITIONS.  In this chapter:
2-56                 (1)  "Health care professional" means:
2-57                       (A)  a physician assistant;
2-58                       (B)  an advanced practice nurse;
2-59                       (C)  a registered nurse;
2-60                       (D)  a radiologist;
2-61                       (E)  a pharmacist; and
2-62                       (F)  any other professional who provides health
2-63     care services as determined by the executive committee.
2-64                 (2)  "Medically underserved area" means an area
2-65     designated by the United States Secretary of Health and Human
2-66     Services as having:
2-67                       (A)  a shortage of personal health services or a
2-68     population group that has such a shortage as provided by 42 U.S.C.
2-69     Section 300e-1(7); or
 3-1                       (B)  a health professional shortage as provided
 3-2     by 42 U.S.C. Section 254e(a)(1).
 3-3                 (3) [(2)]  "Physician" means a resident physician who
 3-4     is enrolled in an accredited residency training program in this
 3-5     state in the specialty of:
 3-6                       (A)  family practice;
 3-7                       (B)  general internal medicine;
 3-8                       (C)  general pediatric medicine; or
 3-9                       (D)  general obstetrics and gynecology.
3-10           SECTION 6.  Subsection (a), Section 106.152, Health and
3-11     Safety Code, is amended to read as follows:
3-12           (a)  The executive committee shall establish a program in the
3-13     center to assist communities in recruiting and retaining physicians
3-14     and health care professionals to practice in medically underserved
3-15     areas.
3-16           SECTION 7.  Section 106.154, Health and Safety Code, is
3-17     amended to read as follows:
3-18           Sec. 106.154.  REQUIRED CONTRACT.  (a)  The center may award
3-19     a stipend to a physician or a health care professional under this
3-20     subchapter if the physician or the health care professional enters
3-21     into a written contract to provide services in a medically
3-22     underserved area for at least one year for each year that the
3-23     physician or the health care professional receives the stipend.
3-24           (b)  The contract must provide that if the physician or the
3-25     health care professional does not provide the required services in
3-26     the medically underserved area or provides those services for less
3-27     than the required term, the physician or the health care
3-28     professional is personally liable to the state for:
3-29                 (1)  the total amount of the stipend the physician or
3-30     the health care professional receives;
3-31                 (2)  interest on that total amount for the period
3-32     beginning on the date the physician or the health care professional
3-33     signs the contract and ending on the date the physician or the
3-34     health care professional repays the amount of the stipend computed
3-35     at a rate equal to the sum of:
3-36                       (A)  the auction average rate quoted on a bank
3-37     discount basis for 26-week treasury bills issued by the United
3-38     States government, as published by the Federal Reserve Board, for
3-39     the week preceding the week in which the contract is signed; and
3-40                       (B)  five percent; and
3-41                 (3)  the state's reasonable expenses incurred in
3-42     obtaining payment, including reasonable attorney's fees.
3-43           SECTION 8.  Subsections (a), (b), and (d), Section 106.155,
3-44     Health and Safety Code, are amended to read as follows:
3-45           (a)  The center shall award stipends to physicians or health
3-46     care professionals for one-year periods.  A stipend awarded under
3-47     this subchapter may not exceed $15,000 each year.
3-48           (b)  The center may renew a stipend used to assist a
3-49     particular physician or health care professional.
3-50           (d)  A physician or a health care professional who receives a
3-51     stipend under this subchapter is not eligible to receive assistance
3-52     under a state educational loan repayment program or other state
3-53     incentive program.
3-54           SECTION 9.  This Act takes effect September 1, 2001.
3-55                                  * * * * *