85R7657 SRS-D
  By: Ashby, Shine H.B. No. 2996
  relating to the establishment of a rural resident physician grant
         SECTION 1.  Chapter 58A, Education Code, is amended by
  adding Subchapter E to read as follows:
  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, with particular emphasis on the creation of
  rural training tracks. 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 this section.
         (b)  The board shall establish criteria for the grant program
  in consultation with one or more physicians, including a physician
  who practices in a rural area of this state, 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 program accreditation requirements.
         (c)  The board may provide grants only to support a physician
  residency program:
               (1)  that provides the level of medical care that is
  most needed in a rural or nonmetropolitan area; and
               (2)  until the program becomes eligible for federal
  grant funding.
         (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:
               (1)  specify the number of residency positions expected
  to be created or maintained with the grant money;
               (2)  specify the grant amount requested for each year;
               (3)  include documentation of infrastructure and
  staffing to satisfy applicable residency program accreditation
               (4)  include documentation that the residency program
  will set a primary goal of producing physicians who are prepared for
  practice in a rural area; and 
               (5)  include evidence of support for residency training
  by sponsoring institutions and the community.
         (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) and satisfies the grant
  eligibility requirements.
         (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
                     (F)  procedures for monitoring the use of grants;
                     (G)  reporting requirements for grant recipients;
               (2)  methods for tracking the effectiveness of grants;
               (3)  any conditions relating to the receipt and use of a
  grant as considered appropriate by the board.
         SECTION 2.  (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 Subchapter E, Chapter 58A,
  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, 2017, the Texas Higher
  Education Coordinating Board shall establish the grant program
  required by Subchapter E, Chapter 58A, Education Code, as added by
  this Act, and shall begin to award grants under that program not
  later than January 1, 2018.
         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, 2017.