By: Watson, Hinojosa S.B. No. 1648

(In the Senate - Filed March 11, 2011; March 23, 2011, read first time and referred to Committee on Higher Education; April 18, 2011, reported adversely, with favorable Committee Substitute by the following vote: Yeas 7, Nays 0; April 18, 2011, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 1648 By: Watson

A BILL TO BE ENTITLED

AN ACT

relating to the establishment of a system health center by a university system.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 51, Education Code, is amended by adding Subchapter I to read as follows:

SUBCHAPTER I. SYSTEM HEALTH CENTERS

Sec. 51.451. DEFINITIONS. In this subchapter:

(1) "Coordinating board" means the Texas Higher Education Coordinating Board.

(2) "General academic teaching institution," "governing board," "institution of higher education," and "university system" have the meanings assigned by Section 61.003.

Sec. 51.452. SYSTEM HEALTH CENTER. A system health center integrates biomedical and clinical research, patient care services, and predoctoral and postdoctoral teaching provided by participating institutions, schools, and programs.

Sec. 51.453. ESTABLISHMENT. (a) The governing board of a university system may establish a system health center consisting of institutions of higher education under the board's control and direction if the system meets the criteria provided by this subchapter, as determined by the coordinating board.

(b) The educational programs of a system health center must be offered primarily by a single institution of higher education and, together with patient care services, must be provided primarily within the geographic region designated by the governing board.

(c) Each of the following must offer substantial educational programs through the system health center:

(1) one or more allopathic or osteopathic medical schools, each of which must administer residency programs in not fewer than three medical specialties within the center;

(2) two or more health professional schools or programs, such as nursing, public health, or pharmacy schools or programs;

(3) one or more undergraduate degree programs of a general academic teaching institution; and

(4) one or more graduate degree programs of a general academic teaching institution.

Sec. 51.454. DEMONSTRATION OF NEED AND SUPPORT. (a) The coordinating board shall approve the establishment of a system health center under Section 51.453 if the coordinating board finds that the university system seeking to establish the center has demonstrated:

(1) a need for the center based on applicable statewide and regional factors, including:

(A) demographic factors such as:

(i) age, income, and health condition; and

(ii) rate of persons without health care coverage; and

(B) present or predicted physician-to-population ratios or physician shortages in identified specialties;

(2) the center's access to a teaching hospital and other facilities adequate to support the center's research, education, and clinical activities, considering the proximity and availability of existing complementary facilities and programs;

(3) the center's capacity to expend in the aggregate a minimum of $50 million annually in federally sponsored or privately sponsored research, as evidenced by the research contracts of participating institutions, provided that programs of the center will participate in those contracts;

(4) community support for the center from a combination of state and local governments, charities, chambers of commerce, hospitals, and medical societies, as evidenced by commitments of financial and other resources with an aggregate value of at least $35 million; and

(5) a well-defined business plan that includes identified financial resources estimated to be sufficient for the ongoing support of the center, including support for medical residencies.

(b) Health condition information considered under Subsection (a)(1)(A)(i) may include health condition information relating to rates of disabilities, infant mortality, obesity, or diabetes or other chronic conditions.

Sec. 51.455. EFFECT ON FORMULA FUNDING. For purposes of the appropriation formulas recommended by the coordinating board under Section 61.059, a student of an educational program offered by a system health center is considered to be a student of a health-related institution to the extent that formula funding of health-related institutions applies to the discipline in which the student is enrolled.

SECTION 2. 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, 2011.

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