SRC-AMY C.S.H.B. 1420 78(R)    BILL ANALYSIS


Senate Research CenterC.S.H.B. 1420
78R15931 JSA-DBy: Hardcastle (Madla)
Subcommittee on Higher Education
5-20-2003
Committee Report (Substituted)

DIGEST AND PURPOSE 

The 75th Legislature created the Physician Education Loan Repayment
Program to address the shortage of physicians practicing in rural and
medically underserved areas by offering state funds to help participating
doctors repay education loans.  Eligible doctors receive repayment after
completing a year of practice in a health professional shortage area, or
as an employee of the Texas Department of Health, the Texas Department of
Mental Health and Mental Retardation, the Texas Youth Commission, or the
Texas Criminal Justice System. Three out of four physicians participating
in the program have continued to practice in an underserved area following
the completion of the obligation to the program.  Despite the program's
success, it is facing a possible funding shortfall as a result of
over-commitment of funds and restrictions on how a medical school is
authorized to set aside money for the program.  C.S.H.B. 1420 requires the
governing boards of each medical unit of an institution of higher
education to cause to be set aside two percent of tuition charges for each
student, rather than resident students, and to transfer those funds to the
comptroller of public accounts to be maintained in the state treasury for
the sole purpose of repayment of student loans of physicians serving in a
designated state agency or economically depressed or underserved areas of
the state or in an area of the state that is economically depressed or
that is a medically underserved area or health professional shortage area,
as designated by the United States Department of Health and Human
Services, that has a current shortage of physicians.  This bill also sets
forth reporting requirements. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 61.539, Education Code, as follows:

Sec. 61.539.  MEDICAL SCHOOL TUITION SET ASIDE FOR CERTAIN LOAN
REPAYMENTS.  (a) Requires the governing boards of each medical unit of an
institution of higher education to cause to be set aside two percent of
tuition charges for each student, rather than resident students,
registered in a medical branch, school, or college. 

(b) Requires the amount set aside to be transferred to the comptroller of
public accounts to be maintained in the state treasury for the sole
purpose of repayment of student loans of a physician serving in a
designated state agency or in an area of the state that is economically
depressed or that is a medically underserved area or health professional
shortage area, as designated by the United States Department of Health and
Human Services, that has a current shortage of physicians.  Deletes
specification that a medically underserved area be rural and the
specification that the area be specified by this subchapter. Provides that
Section 403.095 (Use of Dedicated Revenue), Government Code, does not
apply to the amount set aside by this section.  Deletes a reference to
Section 403.094(h), Government Code. Makes nonsubstantive changes. 

(c) Requires the comptroller, as soon as practicable after each state
fiscal year, to prepare a report for that fiscal year and sets forth the
required content of the report.  Requires the comptroller to deliver a
copy of the report to the Texas  Higher Education Coordinating Board and
to certain elected officials. 

SECTION 2.  Provides that the change in law made by this Act applies
beginning with tuition fees charged to students registered in a medical
branch, school, or college for the 2003-2004 academic year. 

SECTION 3.  Effective date:  upon passage or September 1, 2003.