HBA-NRS H.B. 246 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 246 By: Turner, Bob Public Health 2/20/2001 Introduced BACKGROUND AND PURPOSE Currently, there are several programs which provide financial incentives for certain health professionals agreeing to work in rural and other medically underserved communities. The Senate Health Services Committee, the House Select Committee on Rural Development, and the Statewide Healthcare Coordinating Council each report a continued shortage of healthcare providers in rural areas and recommend programs be expanded to encourage health professionals to work in such communities. House Bill 246 establishes the Rural Communities Health Care Investment Program to recruit health professionals to practice in medically underserved communities by providing such individuals with loan reimbursement or a stipend. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Center for Rural Health Initiatives in SECTION 1 (Sections 106.301 and 106.306, Health and Safety Code) of this bill. ANALYSIS House Bill 246 amends the Health and Safety Code to require the executive committee of the Center for Rural Health Initiatives (executive committee) to establish a Rural Communities Health Care Investment Program (program) in the Center for Rural Health Initiatives (center) to provide loan reimbursement for, or a stipend to, health professionals who agree to serve in communities designated as medically underserved by the center. The bill authorizes a health professional to receive assistance through the program only if the health professional signs a contract agreeing to provide health care services in a medically underserved community. The bill authorizes a student in a degree program preparing to become a health professional to contract with the center for the loan reimbursement program before obtaining the license required to become a health professional. The bill also authorizes the center to contract with a health professional for part-time services under the stipend program. The bill provides that a health professional who participates in any loan reimbursement program is not eligible for a stipend. The bill specifies that such a contract provide that a health professional who does not provide the required services to the community or provides those services for less than the required time, is personally liable to the state for the total amount of assistance received from the center and the medically underserved community, interest on the amount of assistance received at a rate set by the executive committee, and the state's reasonable expenses incurred in obtaining payment, including reasonable attorney's fees. The bill requires the center to appoint an advisory panel to assist in the center's duties under the program and sets forth advisory panel composition requirements. The bill requires the executive committee to adopt rules necessary for the administration of the program and sets forth certain guidelines. The bill authorizes the executive committee, by rule, to designate areas of the state as medically underserved communities. The bill requires the executive committee to make reasonable efforts to contract with health professionals from health professions. The bill provides that the program trust fund is created as a trust fund with the state comptroller and requires the fund to be administered by the center as trustee on behalf of medically underserved communities. The bill authorizes the center to accept and administer gifts and grants from any public or private person or entity for the use and benefit of any program described or created under provisions related to the Center for Rural Health Initiatives. The bill also amends the Education Code to require the Texas Higher Education Coordinating Board, in cooperation with the center and the center's advisory panel, to develop a program to ensure that the board and any institution of higher education are required to seek to obtain the maximum amount of funds from any source to support programs to provide student loan reimbursement or stipends for graduates of degree programs in this state who practice, or agree to practice, in a medically underserved community. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.