By: Nelson, Estes, Uresti  S.B. No. 31
         (In the Senate - Filed November 13, 2006; January 23, 2007,
  read first time and referred to Committee on Health and Human
  Services; April 16, 2007, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 9, Nays 0;
  April 16, 2007, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 31 By:  Nelson
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the creation and administration of the rural physician
  scholarship program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 487, Government Code, is amended by
  adding Subchapter P to read as follows:
  SUBCHAPTER P.  RURAL PHYSICIAN SCHOLARSHIP PROGRAM
         Sec. 487.701.  DEFINITION.  In this subchapter, "rural
  medically underserved area" means a predominantly rural geographic
  area in this state that the office by rule designates as being
  underserved with respect to available medical care.
         Sec. 487.702.  SCHOLARSHIP PROGRAM. In accordance with this
  subchapter and rules adopted by the executive committee, the office
  shall establish and administer a program to award scholarships to
  medical students who agree to practice medicine in rural medically
  underserved areas.
         Sec. 487.703.  ELIGIBILITY.  To be eligible to receive a
  scholarship under this subchapter, a student must:
               (1)  apply to the office;
               (2)  be enrolled at a medical school of a public or
  private institution of higher education in this state; and
               (3)  enter into an agreement with the office as
  provided by Section 487.704.
         Sec. 487.704.  AGREEMENT REQUIREMENTS.  (a)  To qualify for
  a scholarship under this subchapter, a person must enter into a
  written agreement with the office as provided by this section. The
  agreement must:
               (1)  specify the conditions the person must satisfy to
  receive the scholarship award;
               (2)  require the person to practice medicine for at
  least three years in a rural medically underserved area;
               (3)  provide that any scholarship award the person
  receives under this subchapter constitutes a loan until the person
  completes the three years of practice and satisfies other
  applicable conditions of the agreement; and
               (4)  require the person to sign a promissory note
  acknowledging the conditional nature of the scholarship award
  received and promising to repay the amount of that assistance plus
  applicable interest and reasonable collection costs if the person
  does not satisfy the applicable conditions.
         (b)  The office shall determine the terms of the promissory
  note required by Subsection (a)(4). To the extent practicable, the
  terms must be the same as those applicable to state or federally
  guaranteed student loans made at the same time.
         Sec. 487.705.  GRANTS, GIFTS, AND DONATIONS. In addition to
  funds appropriated by the legislature, the office may solicit and
  accept grants, gifts, and donations from any public or private
  source for the purposes of this subchapter.
         Sec. 487.706.  RULES.  (a)  The executive committee shall
  adopt rules necessary to administer this subchapter.
         (b)  The office shall distribute to each medical school of a
  public or private institution of higher education in this state a
  copy of the rules adopted under this section.
         SECTION 2.  The executive committee of the Office of Rural
  Community Affairs shall adopt rules for the rural physician
  scholarship program under Subchapter P, Chapter 487, Government
  Code, as added by this Act, not later than December 31, 2007.
         SECTION 3.  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, 2007.
 
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