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A BILL TO BE ENTITLED
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AN ACT
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relating to the education and preparation of resident physicians. | 
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       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
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       SECTION 1.  Section 61.097, Education Code, is amended to  | 
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read as follows: | 
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       Sec. 61.097.  CONTRACTS WITH RESPECT TO RESIDENT  | 
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PHYSICIANS.  (a)  The board shall contract with [the] Baylor  | 
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College of Medicine for the administration, direction, and  | 
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performance of services necessary or proper to the education,  | 
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training, development, and preparation of resident physicians for a  | 
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career in medicine.  [Included in those services shall be the 
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payment and furnishing by the medical school to the resident 
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physicians of all compensation that has previously been paid or 
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furnished by the hospital or hospitals in which the resident 
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physicians have been educated and trained.] | 
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       (b)  [In Sections 61.097 and 61.098 of this code:
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             [(1)
 
 
"Resident physician" means a person who is 
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appointed a resident physician by the Baylor College of Medicine 
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and who:
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                   [(A)
 
 
has received a Doctor of Medicine or a 
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Doctor of Osteopathic Medicine degree from the Baylor College of 
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Medicine or from one of the schools of medicine listed in Section 
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58.001 of this code;  or
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                   [(B)
 
 
is a citizen of Texas and has received a 
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Doctor of Medicine or a Doctor of Osteopathic Medicine degree from 
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some other school of medicine that is accredited by the Liaison 
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Committee on Medical Education or by the Bureau of Professional 
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Education of the American Osteopathic Association.
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             [(2)
 
 
"Primary teaching hospital" is a hospital at 
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which the Baylor College of Medicine educates and trains both 
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resident physicians and undergraduate medical students.
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             [(3)
 
 
"Compensation" includes stipends;  payments, if 
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any, for services rendered; and fringe benefits when applied to 
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payments to or for the benefit of resident physicians.
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       [(c)
 
 
A person may not be considered a resident physician for 
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a period of time longer than is ordinarily and customarily required 
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for a resident physician to complete a medical specialty program 
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approved by the Accrediting Council on Graduate Medical Education 
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for the specialty in which the resident physician seeks 
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certification as a diplomate and to obtain the certification from 
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the appropriate board or agency approved by the American Board of 
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Medical Specialties.
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       [(d)
 
 
Notwithstanding the provisions of Subsection (c) of 
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this section, a person may not be considered a resident physician 
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under this section for a period of time longer than four years.
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       [(e)
 
 
The total number of the first-year resident physicians 
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compensated under this section and Chapter 58 of this code may not 
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exceed the combined total number of persons in the previous year's 
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graduating classes of the schools listed in Section 58.001 of this 
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code and the Baylor College of Medicine.  The Baylor College of 
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Medicine shall give priority consideration to applicants who 
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demonstrate a willingness to practice in medically underserved 
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areas of Texas.
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       [(f)
 
 
It is the intent of this section that eventually at 
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least 50 percent of the first-year resident physicians appointed by 
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medical schools shall be in the primary care areas of family 
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medicine, internal medicine, pediatrics, geriatrics, and 
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obstetrics/gynecology, with 25 percent of those residents in family 
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practice.
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       [(g)]  In the exercise of the authority under Subsection (a)  | 
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[of this section], the board shall disburse to [the] Baylor College  | 
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of Medicine the money [, out of funds] appropriated by the  | 
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legislature to the board for that purpose [, an amount not to exceed 
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$15,000 per fiscal year of disbursement for each resident physician 
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appointed by the school for that year]. The money disbursed to  | 
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Baylor College of Medicine under this section shall be spent by the  | 
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school exclusively for the education, training, development, and  | 
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preparation of resident physicians for a career in medicine [The 
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board shall establish, by contract with the Baylor College of 
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Medicine, the method by which the disbursement shall be 
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accomplished.  The funds authorized by this section are separate 
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from and in addition to the funds authorized in Sections 61.092 and 
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61.093 of this code]. | 
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       SECTION 2.  Sections 61.098 and 61.099, Education Code, are  | 
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repealed. | 
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       SECTION 3.  The change in law made by this Act applies only  | 
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to a contract entered into or renewed under Section 61.097,  | 
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Education Code, on or after the effective date of this Act.  A  | 
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contract entered into or renewed under that section before the  | 
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effective date of this Act is governed by the law in effect when the  | 
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contract was entered into or renewed, and the former law is  | 
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continued in effect for that purpose. | 
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       SECTION 4.  This Act takes effect immediately if it receives  | 
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a vote of two-thirds of all the members elected to each house, as  | 
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provided by Section 39, Article III, Texas Constitution.  If this  | 
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Act does not receive the vote necessary for immediate effect, this  | 
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Act takes effect September 1, 2009. |