81R7881 KEL-D
By: Chisum, Raymond, Davis of Harris, H.B. No. 1876
Gonzales, Hopson, et al.
A BILL TO BE ENTITLED
AN ACT
relating to creating the health care access fund to recruit health
care providers in health professional shortage areas and to support
federally-qualified health centers and to using for those purposes
revenue from a tax imposed on certain tobacco products.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter G, Chapter 403, Government Code, is
amended by adding Section 403.1056 to read as follows:
Sec. 403.1056. HEALTH CARE ACCESS FUND. (a) The health
care access fund is a special fund in the state treasury outside the
general revenue fund.
(b) The fund is composed of:
(1) gifts and grants contributed to the fund;
(2) earnings on the principal of the fund; and
(3) other amounts deposited to the credit of the fund,
including:
(A) legislative appropriations; and
(B) money deposited under Section 155.2415, Tax
Code.
(c) Except as provided by Subsections (d) and (e), money in
the fund may not be appropriated for any purpose and shall be used
only to:
(1) recruit and retain health care providers in health
professional shortage areas as described by Subsection (d)(1); and
(2) support federally-qualified health centers as
described by Subsection (d)(2).
(d) In each state fiscal biennium, money in the fund shall
be allocated as follows:
(1) 75 percent of the total amount available in the
fund shall be appropriated to the Texas Higher Education
Coordinating Board to enable the repayment of health care provider
education loans under Subchapter FF, Chapter 61, Education Code;
and
(2) 25 percent of the total amount available in the
fund shall be appropriated to the Department of State Health
Services to fund the operational costs of federally-qualified
health centers, as defined by 42 U.S.C. Section 1396d(l)(2)(B),
through the primary health care services program established by the
department under Section 31.003, Health and Safety Code.
(e) A gift or grant to the fund may be appropriated in the
same manner as money in the fund derived from other sources, subject
to any limitation or requirement placed on the gift or grant by the
donor or granting entity.
(f) Sections 403.095 and 404.071 do not apply to the fund.
SECTION 2. Chapter 61, Education Code, is amended by adding
Subchapter FF to read as follows:
SUBCHAPTER FF. REPAYMENT OF CERTAIN HEALTH CARE
PROVIDER EDUCATION LOANS
Sec. 61.9781. DEFINITIONS. In this subchapter:
(1) "Department" means the Department of State Health
Services.
(2) "Health care provider" means:
(A) a physician licensed under Subtitle B, Title
3, Occupations Code;
(B) a dentist licensed under Subtitle D, Title 3,
Occupations Code;
(C) a physician assistant licensed under Chapter
204, Occupations Code;
(D) an advanced practice nurse licensed under
Chapter 301, Occupations Code;
(E) a dental hygienist licensed under Chapter
256, Occupations Code;
(F) a psychologist licensed under Chapter 501,
Occupations Code;
(G) a licensed master social worker, as defined
by Section 505.002, Occupations Code;
(H) a licensed professional counselor, as
defined by Section 503.002, Occupations Code; and
(I) a licensed marriage and family therapist, as
defined by Section 502.002, Occupations Code.
Sec. 61.9782. REPAYMENT ASSISTANCE AUTHORIZED. (a) The
board may provide, in accordance with this subchapter and the rules
of the board and the department, assistance in the repayment of
education loans for health care providers who apply and qualify for
the assistance.
(b) The provision of financial assistance in the repayment
of education loans under this subchapter promotes a public purpose.
Sec. 61.9783. ELIGIBILITY. (a) To be eligible to receive
repayment assistance, a health care provider must:
(1) apply to the board;
(2) be licensed in this state in the appropriate field
of practice;
(3) subject to Subsections (b) and (d), have completed
one, two, three, or four consecutive years of practice in a health
professional shortage area designated by the department; and
(4) provide health care services to:
(A) recipients under the medical assistance
program authorized by Chapter 32, Human Resources Code; or
(B) enrollees under the child health plan program
authorized by Chapter 62, Health and Safety Code.
(b) Notwithstanding any other law, a health care provider
who, after receiving one or more grants of repayment assistance
under this subchapter, fails to complete a second, third, or fourth
consecutive year of practice as required by Subsection (a)(3)
becomes ineligible to receive any additional grants of education
loan repayment assistance under this subchapter or any other
education loan repayment assistance program offered by the state.
(c) A health care provider is ineligible to receive
repayment assistance under this subchapter based on service that
concurrently fulfills a service agreement entered into under
another education loan repayment assistance program or contractual
arrangement, such as a service agreement described by Section
61.9792.
(d) The board may excuse an otherwise eligible health care
provider from the requirement imposed by Subsection (a)(3) that
health care services be provided in consecutive years if the break
in services results from a hardship or other good cause, including
the performance of active duty military service.
Sec. 61.9784. CONDITIONAL APPROVAL. The board may grant
prior conditional approval to a person who applies to the board
before completing the eligibility requirements under Sections
61.9783(a)(2), (3), and (4) and may withhold approved repayment
assistance if the remaining requirements are not completed.
Sec. 61.9785. MAXIMUM AMOUNT OF REPAYMENT ASSISTANCE. (a)
A health care provider may receive repayment assistance under this
subchapter in the amount determined by board rule, not to exceed the
following amounts for each year for which the provider establishes
eligibility for the assistance:
(1) for the first year, $25,000;
(2) for the second year, $35,000;
(3) for the third year, $45,000; and
(4) for the fourth year, $55,000.
(b) A health care provider may not receive repayment
assistance under this subchapter for more than four consecutive
years.
(c) The board shall ensure that:
(1) the total amount of repayment assistance available
to a health care provider under this subchapter is divided into four
separate payments, each of which must be awarded in the same
calendar year in which the qualifying year of service was
completed; and
(2) the amount of repayment assistance granted to a
health care provider is increased for each year the provider
receives the assistance.
(d) The total amount of repayment assistance received by a
health care provider may not exceed the total amount of principal
and interest due on the health care provider's education loans.
(e) Notwithstanding Subsection (a), the board may increase
at any time on or after September 1, 2013, the maximum amounts
described by Subsection (a), as applicable, based on:
(1) data available from the Association of American
Medical Colleges regarding the average physician educational loan
debt; or
(2) equivalent data for dentists or other health care
providers.
Sec. 61.9786. ELIGIBLE LOANS. (a) Except as provided by
Subsection (b), the board may provide repayment assistance for the
repayment of any education loan received by the health care
provider through any lender, other than a private individual, for:
(1) graduate, postgraduate, or professional
education:
(A) at an institution of higher education or an
accredited private or independent institution of higher education;
and
(B) that satisfies an initial requirement for
licensure in the provider's field of practice; and
(2) undergraduate education at an institution of
higher education or an accredited private or independent
institution of higher education.
(b) The board may not provide repayment assistance for an
education loan that is in default at the time of the health care
provider's application for the assistance, except that a loan in
default may become an eligible loan for the purposes of this section
if the loan is rehabilitated to the satisfaction of the lender or
any other holder of the loan, as applicable.
(c) Each state fiscal biennium, the board shall attempt to
allocate for the purposes of this subchapter all money available to
the board under Section 61.9789.
Sec. 61.9787. REPAYMENT. (a) The board shall deliver any
repayment assistance under this subchapter:
(1) in accordance with applicable federal law and
regulations; and
(2) in a lump sum payable on behalf of the health care
provider to the lender or other holder of the affected loan.
(b) Repayment assistance received under this subchapter may
be applied to the principal amount of the loan and to interest that
accrues.
Sec. 61.9788. ASSISTANCE OF DEPARTMENT OF STATE HEALTH
SERVICES. (a) The board and the department shall enter into a
memorandum of understanding in which the department agrees to:
(1) identify and recruit persons who may be or could
become eligible for repayment assistance under this subchapter; and
(2) accept and review applications by those persons
for the assistance.
(b) A memorandum of understanding under Subsection (a) must
address the provision of resources for the staffing and technology
necessary for the department to perform the duties required by that
subsection.
(c) The department, in coordination with the board, shall
adopt, publish, and as necessary revise a set of standards
governing eligibility for repayment assistance under this
subchapter and providing priorities among types of health care
providers for grants of that assistance. Priority status shall be
given first to licensed dentists who plan to practice in health
professional shortage areas and to licensed physicians who plan to
practice as primary care providers in health professional shortage
areas and second to other health care providers based on which
fields of practice are most needed in the health professional
shortage area the providers propose to serve.
(d) Not later than December 31 of each year, the board and
the department shall publish the following information:
(1) the health professional shortage areas for which
the repayment assistance was paid;
(2) the types of health care providers receiving the
repayment assistance;
(3) the amount of repayment assistance paid to each
health care provider; and
(4) the period for which each health care provider
receiving repayment assistance has remained in the health
professional shortage area.
Sec. 61.9789. ACCEPTANCE OF FUNDS. For the purposes of this
subchapter, the board may solicit and accept gifts, grants, and
donations and may use any other available revenue, including money
appropriated from the health care access fund created under Section
403.1056, Government Code.
Sec. 61.9790. RULES. (a) The board and the department
shall adopt rules necessary for the administration of this
subchapter.
(b) The board shall distribute a copy of the rules adopted
by the board and the department under this section and a copy of
pertinent information in this subchapter to:
(1) each institution of higher education or accredited
private or independent institution of higher education;
(2) any appropriate state agency; and
(3) any appropriate professional association.
Sec. 61.9791. COSTS OF ADMINISTRATION. To cover the costs
of administering this subchapter, the board may use a reasonable
amount of the money available for the purposes of this subchapter,
not to exceed 1-1/2 percent of the total amount available.
SECTION 3. Section 61.540, Education Code, is transferred
to Subchapter FF, Chapter 61, Education Code, as added by this Act,
redesignated as Section 61.9792, Education Code, and amended to
read as follows:
Sec. 61.9792 [61.540]. SERVICE AGREEMENTS ENTERED INTO
UNDER FORMER LAW; SAVING PROVISION. (a) This section applies
only to a person who entered into a written agreement to perform
service as a physician in exchange for loan repayment assistance
under Subchapter J [this subchapter] before September 1, 2003.
(b) The agreement continues in effect and Subchapter J [this
subchapter], as it existed when the person entered into the
agreement, is continued in effect for purposes of that agreement
until the person satisfies all the conditions of the agreement or
repays all amounts due under the agreement if the person does not
satisfy the conditions of the agreement.
(c) A person to whom this section applies is not eligible to
receive repayment assistance under another provision of this
subchapter.
SECTION 4. Section 155.0211, Tax Code, is amended by
amending Subsection (b) and adding Subsections (b-1), (b-2), (b-3),
(b-4), (c), (d), and (e) to read as follows:
(b) Except as provided by Subsection (c), the [The] tax rate
for each can or package of a tobacco product [products] other than
cigars is $1.22 per ounce and a proportionate rate on all fractional
parts of an ounce [40 percent of the manufacturer's list price,
exclusive of any trade discount, special discount, or deal].
(b-1) Notwithstanding Subsection (b) and except as provided
by Subsection (c), for the state fiscal year beginning September 1,
2012, the tax rate for each can or package of a tobacco product
other than cigars is $1.19 per ounce and a proportionate rate on all
fractional parts of an ounce. This subsection expires December 1,
2013.
(b-2) Notwithstanding Subsection (b) and except as provided
by Subsection (c), for the state fiscal year beginning September 1,
2011, the tax rate for each can or package of a tobacco product
other than cigars is $1.16 per ounce and a proportionate rate on all
fractional parts of an ounce. This subsection expires December 1,
2012.
(b-3) Notwithstanding Subsection (b) and except as provided
by Subsection (c), for the state fiscal year beginning September 1,
2010, the tax rate for each can or package of a tobacco product
other than cigars is $1.13 per ounce and a proportionate rate on all
fractional parts of an ounce. This subsection expires December 1,
2011.
(b-4) Notwithstanding Subsection (b) and except as provided
by Subsection (c), for the state fiscal year beginning September 1,
2009, the tax rate for each can or package of a tobacco product
other than cigars is $1.10 per ounce and a proportionate rate on all
fractional parts of an ounce. This subsection expires December 1,
2010.
(c) The tax imposed on a can or package of a tobacco product
other than cigars that weighs less than 1.2 ounces is equal to the
amount of the tax imposed on a can or package of a tobacco product
that weighs 1.2 ounces.
(d) The computation of the tax under this section and the
applicability of Subsection (c) shall be based on the net weight as
listed by the manufacturer. The total tax to be imposed on a unit
that contains multiple individual cans or packages is the sum of the
taxes imposed by this section on each individual can or package
intended for sale or distribution at retail.
(e) A change in the tax rate in effect for a state fiscal
year that occurs in accordance with this section does not affect
taxes imposed before that fiscal year, and the rate in effect when
those taxes were imposed continues in effect for purposes of the
liability for and collection of those taxes. This subsection
expires December 1, 2013.
SECTION 5. Section 155.101, Tax Code, is amended to read as
follows:
Sec. 155.101. RECORD OF PURCHASE OR RECEIPT. Each
distributor, wholesaler, bonded agent, and export warehouse shall
keep records at each place of business of all tobacco products
purchased or received. Each retailer shall keep records at a single
location, which the retailer shall designate as its principal place
of business in the state, of all tobacco products purchased and
received. These records must include the following, except that
Subdivision (7) applies to distributors only and Subdivision (8)
applies only to the purchase or receipt of tobacco products other
than cigars:
(1) the name and address of the shipper or carrier and
the mode of transportation;
(2) all shipping records or copies of records,
including invoices, bills of lading, waybills, freight bills, and
express receipts;
(3) the date and the name of the place of origin of the
tobacco product shipment;
(4) the date and the name of the place of arrival of
the tobacco product shipment;
(5) a statement of the number, kind, and price paid for
the tobacco products;
(6) the name, address, permit number, and tax
identification number of the seller;
(7) the manufacturer's list price for the tobacco
products; [and]
(8) the net weight as listed by the manufacturer for
each unit; and
(9) any other information required by rules of the
comptroller.
SECTION 6. Section 155.102, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) In addition to the information required under
Subsection (b), the records for each sale, distribution, exchange,
or use of tobacco products other than cigars must show the net
weight as listed by the manufacturer for each unit.
SECTION 7. Section 155.103, Tax Code, is amended by adding
Subsection (a-1) and amending Subsection (b) to read as follows:
(a-1) In addition to the information required under
Subsection (a), the records for each sale of tobacco products other
than cigars must show the net weight as listed by the manufacturer
for each unit.
(b) A manufacturer who sells tobacco products to a permit
holder in this state shall file with the comptroller, on or before
the last day of each month, a report showing the information
required to be listed by Subsections [in Subsection] (a) and (a-1),
if applicable, for the previous month.
SECTION 8. Section 155.105(b), Tax Code, is amended to read
as follows:
(b) The wholesaler or distributor shall file the report on
or before the 25th day of each month. The report must contain the
following information for the preceding calendar month's sales in
relation to each retailer:
(1) the name of the retailer and the address of the
retailer's outlet location to which the wholesaler or distributor
delivered cigars or tobacco products, including the city and zip
code;
(2) the taxpayer number assigned by the comptroller to
the retailer, if the wholesaler or distributor is in possession of
the number;
(3) the tobacco permit number of the outlet location
to which the wholesaler or distributor delivered cigars or tobacco
products; and
(4) the monthly net sales made to the retailer by the
wholesaler or distributor, including:
(A) the quantity and units of cigars and tobacco
products sold to the retailer; and
(B) for each unit of tobacco products other than
cigars, the net weight as listed by the manufacturer.
SECTION 9. Section 155.111, Tax Code, is amended by adding
Subsection (b-1) to read as follows:
(b-1) In addition to the information required under
Subsection (b), the report must show the net weight as listed by the
manufacturer for each unit of tobacco products other than cigars
that is purchased, received, or acquired.
SECTION 10. Section 155.2415, Tax Code, is amended to read
as follows:
Sec. 155.2415. ALLOCATION OF CERTAIN REVENUE TO PROPERTY
TAX RELIEF FUND AND CERTAIN OTHER FUNDS. Notwithstanding Section
155.241, the [all] proceeds from the collection of taxes imposed by
Section 155.0211 shall be allocated as follows:
(1) the amount of the proceeds that is equal to the
amount that, if the taxes imposed by Section 155.0211 were imposed
at a rate of 40 percent of the manufacturer's list price, exclusive
of any trade discount, special discount, or deal, would be
attributable to the portion of that [the] tax rate in excess of
35.213 percent [of the manufacturer's list price, exclusive of any
trade discount, special discount, or deal], shall be deposited to
the credit of the property tax relief fund under Section 403.109,
Government Code;
(2) the amount of the proceeds that is equal to the
amount that would be attributable to a tax rate of 35.213 percent of
the manufacturer's list price, exclusive of any trade discount,
special discount, or deal, if the taxes were imposed by Section
155.0211 at that rate, shall be deposited to the credit of the
general revenue fund; and
(3) the remaining proceeds shall be deposited to the
credit of the health care access fund under Section 403.1056,
Government Code.
SECTION 11. The following provisions are repealed:
(1) Subchapters V and AA, Chapter 61, Education Code;
(2) Sections 61.531, 61.532, 61.533, 61.534, 61.535,
61.536, 61.5361, 61.537, 61.538, and 61.539, Education Code; and
(3) Section 204.104, Occupations Code.
SECTION 12. The changes in law made by this Act in amending
Chapter 155, Tax Code, do not affect tax liability accruing before
the effective date of this Act. That liability continues in effect
as if this Act had not been enacted, and the former law is continued
in effect for the collection of taxes due and for civil and criminal
enforcement of the liability for those taxes.
SECTION 13. This Act takes effect September 1, 2009.