84R12133 JSL-D
 
  By: Campbell S.B. No. 1397
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment of a rural resident physician grant
  program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 61, Education Code, is amended by
  designating Section 61.511 as Subchapter I-1 and adding a heading
  to that subchapter to read as follows:
  SUBCHAPTER I-1. PHYSICIAN RESIDENCY GRANTS
         Sec. 61.511.  RESIDENT PHYSICIAN EXPANSION GRANT PROGRAM.
  (a)  The board shall administer the Resident Physician Expansion
  Grant Program as a competitive grant program to encourage the
  creation of new graduate medical education positions through
  community collaboration and innovative funding.  The board shall
  award grants to physician residency programs at teaching hospitals
  and other appropriate health care entities according to the program
  criteria established under Subsections (b) and (i).
         (b)  The board shall establish criteria for the grant program
  in consultation with the executive commissioner of the Health and
  Human Services Commission, with one or more physicians, teaching
  hospitals, medical schools, independent physician residency
  programs, and with other persons considered appropriate by the
  board.  The program criteria must:
               (1)  take into account the following factors:
                     (A)  the characteristics of existing residency
  positions that receive state funding;
                     (B)  current and projected physician workforce
  demographics; and
                     (C)  state population trends and projections; and
               (2)  support the following goals:
                     (A)  creating new residency positions, with an
  emphasis on creating new first-year residency positions, without
  adversely affecting existing residency positions;
                     (B)  maximizing local or federal matching funds;
                     (C)  developing accredited physician residency
  programs at hospitals that have not previously offered residency
  programs; and
                     (D)  increasing residency positions with respect
  to:
                           (i)  medical specialties having shortages in
  this state; and
                           (ii)  medically underserved areas in this
  state.
         (c)  The board may provide grants only to support a residency
  position that:
               (1)  is created and accredited on or after January 1,
  2014; or
               (2)  was created and accredited before January 1, 2013,
  but as of that date had not yet been filled.
         (d)  A grant award may be used only to pay direct costs
  associated with the position, including the salary of the resident
  physician.
         (e)  Each grant application must specify:
               (1)  the number of residency positions expected to be
  created with the grant money; and
               (2)  the grant amount requested for each year.
         (f)  The board shall award grants for all residency positions
  awarded a grant under this section in the preceding year before
  awarding a grant for a residency position that did not receive a
  grant in the preceding year, provided that the applicable grant
  recipient from the preceding year complies with all conditions of
  the grant as described by Subsection (g).
         (g)  The board shall monitor physician residency programs
  receiving grants as necessary to ensure compliance with the grant
  program and shall require the return of any unused grant money by,
  or shall decline to award additional grants to, a residency program
  that receives a grant but fails to:
               (1)  create and fill, within a reasonable period, the
  number of residency positions proposed in the program's grant
  application; or
               (2)  satisfy any other conditions of the grant imposed
  by the board.
         (h)  The board shall use money forfeited under Subsection (g)
  to award grants to other eligible applicants.  With respect to the
  physician residency program forfeiting the grant, the board may
  restore grant money or award additional grants, as applicable, to
  the program as soon as practicable after the program satisfies all
  conditions of the grant.
         (i)  The board shall adopt rules for the administration of
  the grant program.  The rules must include:
               (1)  administrative provisions governing:
                     (A)  eligibility criteria for grant applicants;
                     (B)  grant application procedures;
                     (C)  guidelines relating to grant amounts;
                     (D)  guidelines relating to the number of grants
  to be awarded each year, subject to available funds;
                     (E)  procedures for evaluating grant
  applications; and
                     (F)  procedures for monitoring the use of grants;
               (2)  methods for tracking the effectiveness of grants;
  and
               (3)  any conditions relating to the receipt and use of a
  grant as considered appropriate by the board.
         (j)  Not later than January 1 of each year, the board shall
  prepare and submit to the governor, the lieutenant governor, the
  speaker of the house of representatives, the standing committees of
  the senate and house of representatives with responsibility for
  oversight of health and human services issues, and the Legislative
  Budget Board a report that:
               (1)  specifies each of the following with respect to
  the preceding program year:
                     (A)  the number of grants awarded under the
  program;
                     (B)  the amount of each grant awarded under the
  program;
                     (C)  the number of residency positions created
  with the support of grant money;
                     (D)  the medical specialty of the residency
  positions created; and
                     (E)  whether physicians who complete their
  training through residency positions created under the program
  choose to practice in this state and which medical specialties they
  choose for their practices; and
               (2)  makes appropriate recommendations for legislative
  changes as necessary.
         SECTION 2.  Subchapter I-1, Chapter 61, Education Code, as
  added by this Act, is amended by adding Section 61.512 to read as
  follows:
         Sec. 61.512.  RURAL RESIDENT PHYSICIAN GRANT PROGRAM. (a)
  The board shall administer the Rural Resident Physician Grant
  Program as a competitive grant program to encourage the creation of
  new graduate medical education positions in rural and
  nonmetropolitan areas. The board shall award grants to new or
  expanded physician residency programs at teaching hospitals and
  other appropriate health care entities according to the program
  criteria established under Subsections (b) and (i).
         (b)  The board shall establish criteria for the grant program
  in consultation with the executive commissioner of the Health and
  Human Services Commission, with one or more physicians, teaching
  hospitals, medical schools, and independent physician residency
  programs, and with other persons considered appropriate by the
  board. The program criteria must take into account whether a rural
  or nonmetropolitan area has the resources sufficient to support a
  physician residency program in a manner that would satisfy
  applicable residency accreditation requirements.
         (c)  The board may provide grants only to support a physician
  residency program that provides the level of medical care that is
  most needed in a rural or nonmetropolitan area.
         (d)  Grant funds awarded under this section may be used only
  to pay direct costs associated with creating or maintaining a
  residency position, including the salary of the resident physician.
         (e)  Each grant application must specify:
               (1)  the number of residency positions expected to be
  created or maintained with the grant money; and
               (2)  the grant amount requested for each year.
         (f)  The board shall award grants for all residency positions
  awarded a grant under this section in the preceding year before
  awarding a grant for a residency position that did not receive a
  grant in the preceding year, provided that the applicable grant
  recipient from the preceding year complies with all conditions of
  the grant as described by Subsection (g).
         (g)  The board shall monitor physician residency programs
  receiving grants as necessary to ensure compliance with the grant
  program and shall require the return of any unused grant money by,
  or shall decline to award additional grants to, a residency program
  that receives a grant but fails to:
               (1)  create and fill, within a reasonable period, the
  number of residency positions proposed in the program's grant
  application; or
               (2)  satisfy any other conditions of the grant imposed
  by the board.
         (h)  The board shall use money forfeited under Subsection (g)
  to award grants to other eligible applicants. With respect to the
  physician residency program forfeiting the grant, the board may
  restore grant money or award additional grants, as applicable, to
  the program as soon as practicable after the program satisfies all
  conditions of the grant.
         (i)  The board shall adopt rules for the administration of
  the grant program. The rules must include:
               (1)  administrative provisions governing:
                     (A)  eligibility criteria for grant applicants;
                     (B)  grant application procedures;
                     (C)  guidelines relating to grant amounts;
                     (D)  guidelines relating to the number of grants
  to be awarded each year, subject to available funds;
                     (E)  procedures for evaluating grant
  applications;
                     (F)  procedures for monitoring the use of grants;
  and
                     (G)  reporting requirements for grant recipients;
               (2)  methods for tracking the effectiveness of grants;
  and
               (3)  any conditions relating to the receipt and use of a
  grant as considered appropriate by the board.
         SECTION 3.  (a)  As soon as practicable after the effective
  date of this Act, the Texas Higher Education Coordinating Board
  shall adopt rules for the implementation and administration of the
  grant program established under Section 61.512, Education Code, as
  added by this Act. The board may adopt the initial rules in the
  manner provided by law for emergency rules.
         (b)  Not later than October 1, 2015, the Texas Higher
  Education Coordinating Board shall establish the grant program
  required by Section 61.512, Education Code, as added by this Act,
  and shall begin to award grants under that program not later than
  January 1, 2016.
         SECTION 4.  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, 2015.