By:  Bernsen, Nelson                                  S.B. No. 1636
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the use of a portion of medical school tuition for
 1-3     student loan repayment assistance for physicians.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 61.539, Education Code, is amended to
 1-6     read as follows:
 1-7           Sec. 61.539.  MEDICAL SCHOOL TUITION SET ASIDE FOR CERTAIN
 1-8     LOAN REPAYMENTS.  (a)  The governing boards of each medical unit of
 1-9     an institution of higher education shall cause to be set aside two
1-10     percent of tuition charges for each student [resident students]
1-11     registered in a medical branch, school, or college.
1-12           (b)  The amount set aside shall be transferred to the
1-13     comptroller of public accounts to be maintained in the state
1-14     treasury for the sole purpose of repayment of student loans of
1-15     physicians serving in designated state agencies or economically
1-16     depressed or rural medically underserved areas of the state as
1-17     specified by this subchapter.  Section [Sections 403.094(h) and]
1-18     403.095, Government Code, does [do] not apply to the amount set
1-19     aside by this section.
1-20           (c)  As soon as practicable after each state fiscal year, the
1-21     comptroller shall prepare a report for that fiscal year of the
1-22     number of students registered in a medical branch, school, or
1-23     college, the total amount of tuition charges collected by each
1-24     institution of higher education and transferred to the state
1-25     treasury under this section, and the total amount available under
 2-1     Subsection (b) for the repayment of student loans of physicians
 2-2     under this subchapter.  The comptroller shall deliver a copy of the
 2-3     report to the governor, the lieutenant governor, the speaker of the
 2-4     house of representatives, and the Texas Higher Education
 2-5     Coordinating Board not later than January 1 following the end of
 2-6     the fiscal year covered by the report.
 2-7           SECTION 2.  The change in law made by this Act applies
 2-8     beginning with tuition fees charged to students registered in a
 2-9     medical branch, school, or college for the 2001-2002 academic year.
2-10           SECTION 3.  This Act takes effect immediately if it receives
2-11     a vote of two-thirds of all the members elected to each house, as
2-12     provided by Section 39, Article III, Texas Constitution.  If this
2-13     Act does not receive the vote necessary for immediate effect, this
2-14     Act takes effect September 1, 2001.