81R3847 KEL-D
 
  By: Watson S.B. No. 814
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to repayment assistance for certain physician education
  loans.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 61.532, Education Code, is amended to
  read as follows:
         Sec. 61.532.  ELIGIBILITY. (a)  To be eligible to receive
  repayment assistance, a physician must apply to the coordinating
  board, have graduated from a medical school of an institution of
  higher education, and have completed at least one year of medical
  practice:
               (1)  in private practice in an economically depressed
  or rural medically underserved area of the state;
               (2)  for one of the following state agencies:
                     (A)  the [Texas] Department of State Health
  Services;
                     (B)  the [Texas] Department of Aging and
  Disability Services [Mental Health and Mental Retardation];
                     (C)  the Texas Department of Criminal Justice
  [Corrections]; or
                     (D)  the Texas Youth Commission; [or]
               (3)  for an approved family practice residency training
  program established under Subchapter I as a clinical faculty member
  and have completed training in an approved family practice
  residency training program on or after July 1, 1994; or
               (4)  in primary care or in a medical specialty of acute
  physician shortage, as determined by the coordinating board in
  consultation with the Department of State Health Services, and in:
                     (A)  a hospital or clinic with a patient
  population of whom at least 50 percent are uninsured or receive
  Medicaid; or
                     (B)  a public hospital, as defined by Section
  61.002, Health and Safety Code.
         (b)  The coordinating board may by rule provide for repayment
  assistance on a pro rata basis for physicians practicing as
  described by Subsection (a)(2), (3), or (4) on a part-time basis
  [for an approved family practice residency training program
  established under Subchapter I of this chapter or a state agency
  specified in Subsection (a) of this section].
         SECTION 2.  Section 61.537(a), Education Code, is amended to
  read as follows:
         (a)  The coordinating board shall adopt rules necessary for
  the administration of this subchapter, including rules [a rule]
  that:
               (1)  set an appropriate [sets a] maximum amount of
  repayment assistance that may be received by a physician in one
  year, except that the maximum amount of repayment assistance that
  may be received in one year by a physician who establishes
  eligibility under Section 61.532(a)(4) may not exceed 33 percent of
  the total amount of the physician's eligible loans under Section
  61.534 or $35,000, whichever amount is less;
               (2)  authorize [and a rule that authorizes] the Family
  Practice Residency Advisory Committee to establish priorities
  among eligible physicians for repayment assistance, by
  considering:
                     (A)  [taking into account] the degree of physician
  shortage;
                     (B)  [,] geographic locations;
                     (C)  [,] whether the physician is or will be
  providing service in an economically depressed or rural [a]
  medically underserved area or service as described by Section
  61.532(a)(4);[,] and
                     (D)  other criteria the committee considers
  appropriate; and
               (3)  administer the program under this subchapter in a
  manner that maximizes any matching funds available through the
  National Health Service Corps program of the United States
  Department of Health and Human Services.
         SECTION 3.  Section 61.539, Education Code, is amended by
  amending Subsection (b) and adding Subsection (b-1) to read as
  follows:
         (b)  The amount set aside shall 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:
               (1)  in a designated state agency;
               (2)  [or] in an area of this 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; or
               (3)  as described by Section 61.532(a)(4).
         (b-1)  Section 403.095, Government Code, does not apply to
  the amount set aside by this section.
         SECTION 4.  As soon as practicable after the effective date
  of this Act, the Texas Higher Education Coordinating Board shall
  adopt rules necessary to administer Subchapter J, Chapter 61,
  Education Code, as amended by this Act.
         SECTION 5.  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, 2009.