H.B. 1420 78(R)    BILL ANALYSIS


H.B. 1420
By: Hardcastle
Higher Education
Committee Report (Amended)



BACKGROUND AND PURPOSE 

In 1998, the legislature created the Physician Education Loan Repayment
Program (PELRP) to help address the growing shortage of physicians
practicing in rural and medically under served areas by offering state
funds to help participating physicians repay education loans. Despite
PELRP's success in recruiting and retaining physicians to practice in
rural and under served areas, it is facing a possible funding shortfall
because of such factors as the over commitment of funds and restrictions
on how medical schools may set aside money for PELRP. HB 1420 requires
that a portion of the tuition of all medical school students be set aside
for student loan repayment assistance for certain physicians and provides
for the preparation of an annual report on PELRP. 

RULEMAKING AUTHORITY

It is the opinion of the this committee that this bill does not expressly
delegate any additional rulemaking authority to a state officer,
department, agency, or institution.  

ANALYSIS

HB 1420 amends Section 61.539, Education Code, to require the governing
boards of each medical unit of an institution of higher education to set
aside two percent of tuition charges for each student, rather than each
resident student, registered in a medical branch, school, or college to be
used for the repayment of student loans of physicians serving in certain
state agencies or medically under served areas. The bill requires the
comptroller of public accounts, as soon as practicable after each state
fiscal year, to prepare a report for that fiscal year of the number of
students registered in a medical branch, school, or college, the total
amount of tuition charges collected by each institution of higher
education and transferred to the state treasury under this provision, and
the total amount available for the repayment of student loans of
physicians. The bill requires the comptroller to deliver a copy of the
report to the Governor, Lieutenant Governor, speaker of the House of
Representatives, and the Texas Higher Education Coordinating Board not
later than January 1 following the end of the fiscal year covered by the
report.  

EFFECTIVE DATE

This Act takes effect immediately if it receives a vote of two-thirds of
all the members elected to each house, as provided by Section 39, Article
III, Texas Constitution.  If this Act does not receive the vote necessary
for immediate effect, this Act takes effect September 1, 2003. 


EXPLANATION OF AMENDMENTS

Committee Amendment No. 1 changes the definition of designated areas in
which a physician can serve to be eligible for assisted student loan
repayment.