By: Nelson S.B. No. 143 A BILL TO BE ENTITLED AN ACT relating to programs designed to enhance medical education in this state. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 58.007(a), (b), and (g), Education Code, are amended to read as follows: (a) Nothing in this section or Section 58.006 or 58.008 shall diminish or abolish the activities of the Family Practice Residency Advisory Committee established under Section 61.505. It is not the intent of this section to combine or assimilate advisory programs but only to add to and enhance the residency training of primary care physicians in Texas. (b)(1) The Primary Care Graduate Medical Education Expansion Program [Residency] Advisory Committee is created and shall consist of 12 members as follows: (A) seven members shall be licensed physicians, one appointed by each of the following: (i) the Texas Medical Association; (ii) the Texas Osteopathic Medical Association; (iii) the Texas Academy of Family Physicians; (iv) the Texas Society of the American College of Osteopathic Family Physicians; (v) the Texas Society of Internal Medicine; (vi) the Texas Pediatric Society; and (vii) the Texas Association of Obstetricians and Gynecologists; (B) one member shall be appointed by the Office [Texas Department] of Rural Affairs; (C) one member shall be appointed by [the Bureau of Community Oriented Primary Care at] the Department of State Health Services; and (D) three members shall be members of the public, one appointed by each of the following: (i) the governor; (ii) the lieutenant governor; and (iii) the speaker of the house of representatives. (2) No individual who has a direct financial interest in primary care residency training programs shall be appointed to serve as a member of the advisory committee. (g) The committee shall review for the Texas Higher Education Coordinating Board applications for approval and funding of the expansion of existing primary care graduate medical education residency training programs or the establishment of new Accreditation Council for Graduate Medical Education or American Osteopathic Association nationally accredited primary care residency programs [program expansion] as described in Section 58.008 [and related support programs], make recommendations to the board relating to program funding [the standards and criteria for approval of residency training and related support programs], and perform such other duties as may be directed by the board. SECTION 2. Section 58.008, Education Code, is amended to read as follows: Sec. 58.008. PRIMARY CARE GRADUATE MEDICAL EDUCATION [RESIDENCY PROGRAM] EXPANSION PROGRAM. (a) Only primary care residency programs [positions] in family practice, general internal medicine, general pediatrics, and obstetrics and gynecology shall be eligible for [these] funds under this section. (b) The advisory committee created under Section 58.007 shall recommend to the Texas Higher Education Coordinating Board an allocation of new primary care residency positions by residency program that are to receive state support. (c) In [The committee shall take into consideration in] recommending an allocation among the four primary care specialties designated for expansion, the committee shall: (1) consider the following factors: (A) [(1)] the current primary care specialties mix of Texas physicians in direct practice; (B) [(2)] projections for the primary care specialties mix of Texas physicians in direct practice; (C) [(3)] the current state-supported primary care positions; (D) [(4)] geographic shortages for primary care physicians; (E) [(5)] federally designated and state-designated [state designated] medically underserved areas and health professional shortage areas the boundaries of which correspond to entire counties; (F) [(6)] the demographics of the Texas population; [and] (G) [(7)] the infrastructure of existing residency programs; (H) the residency program's history of retention and the program's success rate in placing physicians in communities in this state following completion of residency training, with an emphasis on the program's success rate in placing physicians in underserved communities; and (I) the amount of matching funds a residency program receives or will receive from community collaborative groups; and (2) give priority to residency programs located in community-based settings such as federally qualified health centers, community health clinics, and rural hospitals. (d) [(c)] Once funds are awarded to support a resident position as part of a primary care residency program's expansion efforts [of a particular residency program], the board shall continue to award grant funds to support that residency position in that specific residency program to maintain support for its expansion efforts for all three or four postgraduate years of the residency training curriculum until the resident physician appointed to that position has completed or left the program. The residency position would then be eligible for reallocation by the Primary Care Graduate Medical Education Expansion Program Residency Advisory Committee. (e) A grant awarded under this section to an existing or new primary care residency program may be used to pay the salaries of resident physicians in an amount not to exceed $15,000 per resident physician. (f) The board shall adopt rules for the administration of this section. SECTION 3. Chapter 61, Education Code, is amended by adding Subchapter II to read as follows: SUBCHAPTER II. GRANT PROGRAMS TO SUPPORT PRIMARY CARE IN THIS STATE Sec. 61.9821. PRIMARY CARE PHYSICIAN INCENTIVE PROGRAM. Subject to available funds, the board shall establish a grant program under which the board awards incentive payments to medical schools that demonstrate improvement in the graduation rates of physicians who work in primary care in this state following completion of their residency training. Sec. 61.9822. PRIMARY CARE INNOVATION PROGRAM. Subject to available funds, the board shall establish a grant program under which the board awards incentive payments to medical schools that develop innovative programs designed to increase the number of primary care physicians in this state. Sec. 61.9823. GIFTS, GRANTS, AND DONATIONS. In addition to other money appropriated by the legislature, the board may solicit, accept, and spend gifts, grants, and donations from any public or private source for the purposes of the programs established under this subchapter. Sec. 61.9824. RULES. In consultation with each medical school in this state, the board shall adopt rules for the administration of the programs established under this subchapter. The rules must include: (1) administrative provisions relating to each type of grant under this subchapter, such as: (A) eligibility criteria for medical schools; (B) grant application procedures; (C) guidelines relating to grant amounts; (D) procedures for evaluating grant applications; and (E) procedures for monitoring the use of grants; and (2) a method for tracking the effectiveness of grants that: (A) using data reasonably available to the board, considers relevant information regarding the career paths of medical school graduates during the four-year period following their graduation; and (B) evaluates whether and for how long those graduates work in primary care in this state. Sec. 61.9825. ADMINISTRATIVE COSTS. A reasonable amount, not to exceed three percent, of any money appropriated for purposes of this subchapter may be used by the board to pay the costs of administering this subchapter. SECTION 4. 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: (1) apply to the coordinating board; (2) at the time of application, be licensed to practice medicine under Subtitle B, Title 3, Occupations Code; (3) have completed one, two, three, or four consecutive years of practice: (A) in a health professional shortage area designated by the Department of State Health Services; or (B) in accordance with Subsection (b); and (4) provide health care services to: (A) recipients under the medical assistance program authorized by Chapter 32, Human Resources Code; (B) enrollees under the child health plan program authorized by Chapter 62, Health and Safety Code; or (C) persons committed to a secure correctional facility operated by or under contract with the Texas Juvenile Justice Department [Youth Commission] or persons confined in a secure correctional facility operated by or under contract with any division of the Texas Department of Criminal Justice. (b) A physician may complete one or more years of practice required by Subsection (a)(3) in a location other than a health professional shortage area designated by the Department of State Health Services if, during the year or years, the physician provides health care services to a designated percentage of patients who are recipients under the medical assistance program authorized by Chapter 32, Human Resources Code, or the Texas Women's Health Program according to criteria established by the board in consultation with the Health and Human Services Commission. The Health and Human Services Commission shall verify a physician's compliance with this subsection, and the board and the commission shall enter into a memorandum of understanding for that purpose. SECTION 5. Section 61.5391, Education Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows: (a) The physician education loan repayment program account is an account in the general revenue fund. The account is composed of: (1) gifts and grants contributed to the account; (2) earnings on the principal of the account; and (3) other amounts deposited to the credit of the account, including: (A) money deposited under Section 61.539(b) or 61.5392; (B) legislative appropriations; and (C) money deposited under Section 155.2415, Tax Code. (c) Money deposited to the credit of the account under Section 61.5392 may be used only to provide loan repayment assistance to physicians who establish eligibility for the assistance under Section 61.532(a)(4)(A) or (b). SECTION 6. Subchapter J, Chapter 61, Education Code, is amended by adding Section 61.5392 to read as follows: Sec. 61.5392. MEDICAID MATCHING FUNDS. (a) For the purposes of this subchapter, the Health and Human Services Commission shall seek any federal matching funds that are available to support Medicaid services in this state. (b) Any amount received under Subsection (a) shall be transferred to the comptroller to be deposited in the physician education loan repayment program account established under Section 61.5391. Section 403.095, Government Code, does not apply to any amount deposited under this section. SECTION 7. (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 programs established under Subchapter II, Chapter 61, 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 January 1, 2014, the Texas Higher Education Coordinating Board shall establish the grant programs required by Subchapter II, Chapter 61, Education Code, as added by this Act, and shall begin to award grants under those programs not later than September 1, 2014. (c) Not later than October 1, 2013, the Texas Higher Education Coordinating Board and the Health and Human Services Commission shall enter into the memorandum of understanding required by Section 61.532(b), Education Code, as added by this Act. As soon as practicable after the date of the memorandum, the board shall begin awarding loan repayment assistance to physicians who establish eligibility under that subsection. SECTION 8. This Act takes effect September 1, 2013.