83R10204 AED-D By: West S.B. No. 1617 A BILL TO BE ENTITLED AN ACT relating to providing loan repayment assistance for physicians providing services to certain patients. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. 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 each year of eligibility, the physician provides health care services to patients and at least 30 percent of the patients receiving services from the physician are recipients under the medical assistance program authorized by Chapter 32, Human Resources Code, 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 2. Section 61.538, Education Code, is amended by amending Subsection (a) and adding Subsection (d) to read as follows: (a) Except as provided by Subsection (d), a [A] physician 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 physician 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. (d) A physician who establishes eligibility under Section 61.532(b) may receive repayment assistance under this subchapter in an amount that is not less than 20 percent of the original total amount of the physician's loans for each year the physician establishes eligibility for the assistance. SECTION 3. 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 4. 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 5. 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 6. This Act takes effect September 1, 2013.