Health and Safety Code

CHAPTER 106.  CENTER FOR RURAL HEALTH INITIATIVES
SUBCHAPTER A.  GENERAL PROVISIONS

Sec. 106.001.  Definitions.

         (a) "Center" means the Center for Rural Health Initiatives.

         (b) "Executive committee" means the executive committee of the
Center for Rural Health Initiatives.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 41, eff. Sept. 1,
1991.

Sec. 106.002.  Purpose.

         (a) The Center for Rural Health Initiatives shall assume a
leadership role in working or contracting with state and federal
agencies, universities, private interest groups, communities,
foundations, and offices of rural health to develop rural health
initiatives and maximize use of existing resources without
duplicating existing effort.

         (b) The center shall provide a central information and referral
source and serve as the primary state resource in coordinating,
planning, and advocating for the continued access to rural health
care services in this state.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 41, eff. Sept. 1,
1991.

Sec. 106.003.  Sunset Provision.

         The Center for Rural Health Initiatives is subject to Chapter
325, Government Code (Texas Sunset Act).  Unless continued in
existence as provided by that chapter, the center is abolished
and this chapter expires September 1, 1999.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 41, eff. Sept. 1,
1991.  Redesignated from Sec. 106.009 by Acts 1993, 73rd Leg.,
ch. 107, Sec. 5.01(c), eff. Aug. 30, 1993.
            SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
                                
              Sec. 106.021.  Executive Committee.
                                
(a) The executive committee is the governing body of the Center
                 for Rural Health Initiatives.
                                
          (b) The executive committee is composed of:
                                
 (1) three members appointed by the governor, one of whom is a
 physician licensed to practice in this state, one of whom is a
pharmacist licensed to practice in this state, and one of whom is
                a business or community leader;
                                
 (2) three members appointed by the lieutenant governor, one of
 whom is a registered nurse licensed to practice in this state,
 one of whom is an allied health professional who is licensed,
 registered, or certified to practice in this state, and one of
           whom is a rural health policy expert; and
                                
   (3) three members appointed by the speaker of the house of
representatives, one of whom is a physician licensed to practice
in this state, one of whom is a hospital administrator, and one
                 of whom is a health economist.
                                
    (c) The appointments to the executive committee must be
individuals who reside, work, or practice in rural areas of the
state or who have demonstrated knowledge and expertise in rural
                            issues.
                                
(d) The appointments to the executive committee shall provide for
  a balanced representation of the geographical regions of the
                             state.
                                
   (e) The members of the executive committee serve staggered
six-year terms, with the terms of three members expiring August
                 31 of each odd-numbered year.
                                
(f) The members of the executive committee annually shall elect
         one member to serve as the presiding officer.
                                
(g) The executive committee shall meet at least quarterly or at
the call of the presiding officer and shall adopt rules for the
                    conduct of the meetings.
                                
(h) Any actions taken by the executive committee must be approved
                      by a majority vote.
                                
 (i) Members of the executive committee receive no compensation
 but are entitled to reimbursement for the actual and necessary
     expenses incurred in the performance of their duties.
                                
 (j) The executive committee shall establish policies and adopt
                rules to implement this chapter.
                                
Added by Acts 1991, 72nd Leg., ch. 14, Sec. 41, eff. Sept. 1,
1991.  Redesignated from Sec. 106.003 by Acts 1993, 73rd Leg.,
ch. 107, Sec. 5.01(b), eff. Aug. 30, 1993.

Sec. 106.022.  Executive Director.

         (a) The executive committee may hire an executive director to
serve as the chief executive officer of the center and to perform
the administrative duties of the office.

         (b) The executive director serves at the will of the executive
committee.

         (c) The executive director may hire staff within the guidelines
established by the executive committee.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 41, eff. Sept. 1,
1991.  Redesignated from Sec. 106.004 by Acts 1993, 73rd Leg.,
ch. 107, Sec. 5.01(b), eff. Aug. 30, 1993.

Sec. 106.023.  Advisory Committee.

         (a) The advisory committee is composed of:

                       (1) the commissioner of health or a representative of the
         department designated by the commissioner;

                       (2) the commissioner of human services or a representative
         of the Texas Department of Human Services designated by the
         commissioner;

                       (3) the commissioner of agriculture or a representative of
         the Department of Agriculture designated by the commissioner;

                       (4) the executive director of the Texas Department of
         Commerce or a representative of that department designated by
         the executive director; and

                       (5) the commissioner of higher education or a representative
         of the Texas Higher Education Coordinating Board designated by
         the commissioner.

         (b) The executive committee may appoint additional agencies as
necessary to serve on the advisory committee in a temporary
capacity.  The executive committee also may request that a state
agency designate an employee to serve as a liaison with the
center.

         (c) The advisory committee may participate fully in executive
committee meetings.  However, advisory committee members do not
have voting privileges.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 41, eff. Sept. 1,
1991.  Redesignated from Sec. 106.005 by Acts 1993, 73rd Leg.,
ch. 107, Sec. 5.01(b), eff. Aug. 30, 1993.

Sec. 106.024.  Administrative and Staff Support.

         The department shall provide administrative support to the
center as necessary to carry out the duties of this chapter.  The
department and the other agencies represented on the advisory
committee shall provide staff support to the center and may
provide staff and other support services to the executive
committee.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 41, eff. Sept. 1,
1991.  Redesignated from Sec. 106.006 by Acts 1993, 73rd Leg.,
ch. 107, Sec. 5.01(b), eff. Aug. 30, 1993.

Sec. 106.025.  Duties and Powers.

         (a) The center shall:

                       (1) educate the public and recommend appropriate public
         policies regarding the continued viability of rural health care
         delivery in this state;

                       (2) monitor and work with state and federal agencies to
         assess the impact of proposed rules on rural areas;

                       (3) provide impact statements of proposed rules as
         considered appropriate by the center;

                       (4) streamline regulations to assist in the development of
         service diversification of health care facilities;

                       (5) target state and federal programs to rural areas;

                       (6) promote and develop community involvement and community
         support in maintaining, rebuilding, or diversifying local
         health services;

                       (7) promote and develop diverse and innovative health care
         service models in rural areas;

                       (8) encourage the use of advanced communications technology
         to:

                      (A) ensure that rural areas receive the maximum benefits
         of telemedicine and distance learning by promoting a
         transmission rate structure that accommodates rural needs
         and by improving the telecommunications infrastructure in
         rural areas; and

                      (B) provide access to specialty expertise, clinical
         consultation, and continuing education;

                       (9) assist rural health care providers, communities, and
         individuals in applying for public and private grants and
         programs;

                       (10) encourage the development of regional emergency
         transportation networks;

                       (11) work with state agencies, universities, and private
         interest groups to conduct and promote research on rural health
         issues, maintain and collect a timely data base, and develop
         and maintain a rural health resource library;

                       (12) solicit the assistance of other offices or programs of
         rural health in this state that are university-based to carry
         out the duties of this chapter;

                       (13) disseminate information and provide technical
         assistance to communities, health care providers, and
         individual consumers of health care services;

                       (14) develop plans to implement a fee-for-service health
         care professional recruitment service and a medical supplies
         group purchasing program within the center;

                       (15) develop and initiate, in conjunction with the Texas
         State Board of Medical Examiners, the Board of Nurse Examiners,
         the Texas Department of Health, the Bureau of State Health Data
         and Policy Analysis, the Texas State Board of Physician
         Assistant Examiners, or other appropriate agencies, a study of
         rural health clinics to:

                      (A) determine the efficiency and effectiveness of rural
         health clinics;

                      (B) review the health outcomes of rural patients treated
         in rural health clinics and report those outcomes in the
         center's biennial report to the legislature;

                      (C) identify and address efficiency barriers for the
         professional clinical relationship of physicians, nurses,
         and physician assistants;

                      (D) assess the success of attracting primary care
         physicians and allied health professionals to rural areas;
         and

                      (E) assess the appropriateness of the current clinic
         designation process;

                       (16) develop and initiate a quality assessment program to
         evaluate the health outcomes of rural patients treated in rural
         health clinics; and

                       (17) encourage the active participation by physicians and
         other health care providers in the early and periodic
         screening, diagnosis, and treatment program.

         (b) The center may:

                       (1) solicit, receive, and spend grants, gifts, and donations
         from public and private sources; and

                       (2) contract with public and private entities in the
         performance of its responsibilities.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 41, eff. Sept. 1,
1991.  Redesignated from Sec. 106.007 by Acts 1993, 73rd Leg.,
ch. 107, Sec. 5.01(b), eff. Aug. 30, 1993.  Amended by Acts 1995,
74th Leg., ch. 965, Sec. 2, eff. June 16, 1995.

     Amendment by Acts 1991, 72nd Leg., ch. 255, Sec. 3(a)
                                
V.T.C.A. Government Code, Sec. 311.031(c) provides, in part, that
the repeal of a statute by a code does not affect an amendment of
the statute by the same legislature which enacted the code and
that the amendment is preserved and given effect as part of the
code provision.

Section 3(a) of Acts 1991, 72nd Leg., ch. 255 amends Sec. 4(d) of
Vernon's Ann.Civ.St. art. 4414b-1 [now, this section] without
reference to the repeal of said article by Acts 1991, 72nd Leg.,
ch. 14, Sec. 285(b)(62).  As so amended, Sec. 4(d) read:

"The center shall administer or contract for the administration
of the Outstanding Rural Scholar Recognition Program as described
in Article 4414b-1.1, Revised Statutes."

Sec. 106.026.  Report to Legislature.

         No later than January 1 of each odd-numbered year, the center
shall submit a biennial report to the legislature regarding the
activities of the center and any findings and recommendations
relating to rural issues.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 41, eff. Sept. 1,
1991.  Redesignated from Sec. 106.008 by Acts 1993, 73rd Leg.,
ch. 107, Sec. 5.01(b), eff. Aug. 30, 1993.
 SUBCHAPTER C.  OUTSTANDING RURAL SCHOLAR RECOGNITION AND LOAN
                            PROGRAM
                                
                  Sec. 106.041.  Definitions.
                                
                      In this subchapter:
                                
  (1) "Advisory committee" means the outstanding rural scholar
                      advisory committee.
                                
      (2) "Fund" means the outstanding rural scholar fund.
                                
       (3) "Postsecondary educational institution" means:
                                
 (A) an institution of higher education, as defined by Section
                    61.003, Education Code;
                                
(B) a nonprofit, independent institution approved under Section
                   61.222, Education Code; or
                                
(C) a nonprofit, health-related school or program accredited by
 the Southern Association of Colleges and Schools, the Liaison
    Committee on Medical Education, the American Osteopathic
    Association, the Board of Nurse Examiners, the Board of
Vocational Nurse Examiners, or, in the case of allied health, an
 accrediting body recognized by the United States Department of
                           Education.
                                
(4) "Program" means the outstanding rural scholar recognition and
                         loan program.
                                
(5) "Rural community" means a municipality in a nonmetropolitan
county as defined by the United States Census Bureau in its most
                         recent census.
                                
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 5.01(d), eff. Aug.
30, 1993.

Sec. 106.042.  Administration.

         The center shall administer or contract for the administration
of the program.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 5.01(d), eff. Aug.
30, 1993.

Sec. 106.043.  Advisory Committee.

         (a) The advisory committee shall advise the executive committee
on the progress of the program.

         (b) The advisory committee is composed of 12 members appointed
by the executive committee and must include:

                       (1) a rural practicing family practice physician;

                       (2) a rural hospital administrator;

                       (3) a rural practicing registered professional nurse;

                       (4) a rural practicing allied health professional;

                       (5) a dean of a medical school;

                       (6) a dean of a nursing school;

                       (7) a dean of a school of allied health science;

                       (8) a head of a vocational/technical institution;

                       (9) a community college administrator;

                       (10) an individual knowledgeable in student financial
         assistance programs;

                       (11) a rural public school superintendent; and

                       (12) a rural resident.

         (c) The executive committee shall consider geographical
representation in making appointments to the advisory committee.

         (d) Advisory committee members serve for staggered six-year
terms, with the term of four members expiring August 31 of each
odd-numbered year.  A member is eligible for reappointment to
consecutive terms.

         (e) The executive committee shall fill a vacancy on the
advisory committee in the same manner as other appointments to
the advisory committee.

         (f) A member of the advisory committee is entitled to
reimbursement for expenses incurred in performing duties under
this subchapter in amounts not to exceed the amounts specified in
the General Appropriations Act for travel and per diem allowances
for state employees.

         (g) The advisory committee may:

                       (1) elect a chairman, vice-chairman, and secretary from
         among its members; and

                       (2) adopt rules for the conduct of its activities.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 5.01(d), eff. Aug.
30, 1993.

Sec. 106.044.  Selection of Outstanding Rural Scholars.

         (a) The advisory committee shall select outstanding rural
scholars through a statewide competition.

         (b) The advisory committee shall make selections after
considering:

                       (1) the academic credentials of the applicant;

                       (2) one or more interviews with the applicant;

                       (3) a statement written by the applicant of the applicant's
         reasons for:

                      (A) entering the competition and a health care
         profession; and

                      (B) wanting to provide health care services to rural
         Texans; and

                       (4) the financial support committed to the applicant by the
         applicant's sponsoring community.

         (c) The advisory committee may not use the applicant's
performance on a standardized test as the sole criterion to
determine the applicant's selection as an outstanding rural
scholar.

         (d) The advisory committee shall recommend to the executive
committee guidelines to be used by rural communities in the
selection of students for nomination and sponsorship as
outstanding rural scholars.

         (e) An outstanding rural scholar receives public recognition
and a certificate of award and is eligible for a forgivable loan
under this subchapter.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 5.01(d), eff. Aug.
30, 1993.

Sec. 106.045.  Eligibility for Outstanding Rural Scholar Competition.

         (a) To be eligible to participate in the competition under
Section 106.044, a high school student or an undergraduate
student at a postsecondary educational institution must:

                       (1) be nominated and sponsored by a rural community, which
         sponsorship must include financial support;

                       (2) be a Texas resident under Subchapter B, Chapter 54,
         Education Code;

                       (3) if the person is a high school student, be in the upper
         25 percent of the student's high school class if the class
         contains 48 or more students, and intend to enter a
         postsecondary educational institution; and

                       (4) if the person is an undergraduate student, be in the
         upper 25 percent of the student's class or have a cumulative
         grade average that is equal to or greater than the equivalent
         of a 3.0 on a 4.0 scale, and be enrolled in a postsecondary
         educational institution.

         (b) If a person is neither a high school student nor an
undergraduate student, the person must be eligible for
participation in the competition under rules adopted by the
advisory committee.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 5.01(d), eff. Aug.
30, 1993.

Sec. 106.046.  Eligibility for Loans; Rural Community Financial Support.

         (a) For an outstanding rural scholar to be eligible for a
forgivable loan, community sponsorship must include financial
support.

         (b) Community financial support consists of a commitment to
fund 50 percent of the costs of a scholar's tuition, fees,
educational materials, and living expenses.

         (c) The financial support under this section may be satisfied
in whole or in part by a grant, a scholarship, or private
foundation support.

         (d) Evidence of the financial support must be submitted with a
community's nomination.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 5.01(d), eff. Aug.
30, 1993.

Sec. 106.047.  Awarding of Loans.

         (a) The advisory committee shall recommend to the executive
committee guidelines for the awarding of forgivable loans to
outstanding rural scholars.

         (b) The executive committee, acting on the advice of the
advisory committee, shall award forgivable loans to outstanding
rural scholars based on the availability of money in the fund.

         (c) If in any year the fund is inadequate to provide loans to
all eligible applicants, the executive committee shall award
forgivable loans on a priority basis according to the applicants'
academic performance, test scores, and other criteria of
eligibility.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 5.01(d), eff. Aug.
30, 1993.

Sec. 106.048.  Amount of Loan.

         (a) On confirmation of an outstanding rural scholar's admission
to a postsecondary educational institution or on receipt of an
enrollment report of the scholar at a postsecondary educational
institution, and a certification of the amount of financial
support needed, the advisory committee annually shall recommend
to the executive committee that the committee award a forgivable
loan to the scholar in the amount of 50 percent of the cost of
the scholar's tuition, fees, educational materials, and living
expenses.

         (b) An outstanding rural scholar may receive another grant,
loan, or scholarship for which the scholar is eligible in
addition to the receipt of a forgivable loan, except that the
total amount of funds received may not exceed the reasonable
needs of the scholar.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 5.01(d), eff. Aug.
30, 1993.

Sec. 106.049.  Loan Forgiveness.

         (a) The principal balance and interest for one year of a
forgivable loan awarded to an outstanding rural scholar must be
forgiven for each year the scholar practices as a health care
professional in the sponsoring community.

         (b) The sponsoring community shall report through the executive
committee to the advisory committee the length of time the
scholar practices as a health care professional in the community.

         (c) If, on the recommendation of the advisory committee, the
executive committee finds that a sponsoring community is not in
need of the scholar's services, the executive committee by rule
may provide for the principal balance and interest of one year of
the scholar's loan to be forgiven for each year the scholar
practices in another rural community in this state.

         (d) Any amount of loan principal or interest that is not
forgiven under this section shall be repaid to the center with
reasonable collection fees in a timely manner as provided by
executive committee rule.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 5.01(d), eff. Aug.
30, 1993.

Sec. 106.050.  Fund.

         (a) The outstanding rural scholar fund is in the state
treasury.

         (b) The fund consists of legislative appropriations, gifts,
grants, donations, the market value of in-kind contributions, and
principal and interest payments on forgivable loans deposited to
the credit of the fund by the center.

         (c) The center shall administer the fund.

         (d) The center, with the recommendation of the advisory
committee, shall allocate the fund, as available, for forgivable
loans under this subchapter.

         (e) The center shall deposit any principal and interest
payments on forgivable loans to the credit of the fund.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 5.01(d), eff. Aug.
30, 1993.

Sec. 106.051.  Postsecondary Educational Institutions.

         (a) Each postsecondary educational institution shall be
provided with a list of the outstanding rural scholars and shall
be encouraged to recruit those scholars.

         (b) A postsecondary educational institution annually shall
report the progress and performance of each outstanding rural
scholar to the advisory committee in accordance with the
guidelines established by the executive committee.  A report
shall be shared with the community sponsoring the scholar.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 5.01(d), eff. Aug.
30, 1993.

Sec. 106.052.  Adoption and Distribution of Rules.

         (a) The executive committee shall adopt reasonable rules to
enforce the requirements, conditions, and limitations under this
subchapter.

         (b) The executive committee shall set the rate of interest
charged on a forgivable loan under this subchapter.

         (c) The executive committee shall adopt rules necessary to
ensure compliance with the Civil Rights Act of 1964 (42 U.S.C.
Section 2000d et seq.) concerning nondiscrimination in
admissions.

         (d) The executive committee shall distribute to each
postsecondary educational institution copies of all rules adopted
under this subchapter.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 5.01(d), eff. Aug.
30, 1993.
 SUBCHAPTER D.  HEALTH CAREERS PROMOTION AND EDUCATION PROGRAM
                                
                  Sec. 106.071.  Definitions.
                                
                      In this subchapter:
                                
      (1) "Fund" means the health careers education fund.
                                
(2) "Qualified area" means an area qualifying under the National
 Health Services Corps Community Scholarship Program or an area
   with similar characteristics as identified by the center.
                                
       (3) "Postsecondary educational institution" means:
                                
 (A) an institution of higher education, as defined by Section
                    61.003, Education Code;
                                
(B) a nonprofit, independent institution approved under Section
                   61.222, Education Code; or
                                
(C) a nonprofit, health-related school or program accredited by
 the Southern Association of Colleges and Schools, the Liaison
    Committee on Medical Education, the American Osteopathic
    Association, the Board of Nurse Examiners, the Board of
Vocational Nurse Examiners, or, in the case of allied health, an
 accrediting body recognized by the United States Department of
                           Education.
                                
 (4) "Program" means the health careers promotion and education
                            program.
                                
Added by Acts 1993, 73rd Leg., ch. 1020, Sec. 1, eff. Sept. 1,
1993.

Sec. 106.072.  Administration.

         (a) The center shall administer or contract for the
administration of the program.

         (b) The center may solicit and accept gifts, grants, donations,
and contributions to support the program.

Added by Acts 1993, 73rd Leg., ch. 1020, Sec. 1, eff. Sept. 1,
1993.

Sec. 106.073.  Health Careers Promotion.

         The center may establish a program to work with students,
communities, and community-based organizations to encourage high
school students to pursue health care professional careers.  The
center shall give priority to working with communities and
students in qualified areas.

Added by Acts 1993, 73rd Leg., ch. 1020, Sec. 1, eff. Sept. 1,
1993.

Sec. 106.074.  Loans.

         (a) The executive committee may award forgivable educational
loans to eligible students under this subchapter.

         (b) The executive committee may award forgivable loans to
eligible students based on the availability of money in the fund.

         (c) If in any year the fund is inadequate to provide loans to
all eligible students, the executive committee may award
forgivable loans on a priority basis according to the students'
academic performance, test scores, and other criteria of
eligibility.

Added by Acts 1993, 73rd Leg., ch. 1020, Sec. 1, eff. Sept. 1,
1993.

Sec. 106.075.  Student Eligibility.

         (a) To be eligible to receive a loan under this subsection, a
student must:

                       (1) be sponsored by an eligible community;

                       (2) at the time of the application for the loan, be enrolled
         in high school or enrolled or accepted for enrollment in a
         postsecondary educational institution in this state;

                       (3) meet academic requirements as established by the
         executive committee;

                       (4) plan to complete a health care professional degree or
         certificate program;

                       (5) plan to practice as a health care professional in a
         qualified area of the state;

                       (6) meet other requirements as established by the executive
         committee.

         (b) Other requirements for eligibility for a loan under this
subchapter must include:

                       (1) one or more interviews with the student; and

                       (2) a statement written by the student of the student's
         reasons for:

                      (A) entering the health care profession; and

                      (B) wanting to provide health care services to a
         qualified area in this state.

Added by Acts 1993, 73rd Leg., ch. 1020, Sec. 1, eff. Sept. 1,
1993.

Sec. 106.076.  Community Eligibility.

         (a) To be eligible to sponsor a student under this section, a
community must:

                       (1) be located in a qualified area in this state; and

                       (2) provide evidence of community sponsorship of the
         student.

         (b) Community sponsorship consists of:

                       (1) a commitment to fund a percentage of the student's
         postsecondary educational expenses, including tuition, fees,
         educational materials, and living expenses; and

                       (2) a commitment to employ the student on a full-time basis
         as a health care professional upon the student's completion of
         the academic program and licensure or certification in the
         health care profession for which the student is sponsored.

         (c) The executive committee shall determine the percentage of
educational expenses communities are required to provide under
this section.

         (d) Community financial support may be satisfied in whole or in
part by a grant, a scholarship, or private foundation support.

Added by Acts 1993, 73rd Leg., ch. 1020, Sec. 1, eff. Sept. 1,
1993.

Sec. 106.077.  Amount of Loan.

         (a) On confirmation of an eligible student's admission to a
postsecondary educational institution or on receipt of an
enrollment report of the student at a postsecondary educational
institution, and certification of the amount of financial support
needed, the executive committee may award a forgivable loan to
the student in the amount of not more than the cost of the
student's tuition, fees, educational materials, and living
expenses.

         (b) An eligible student may receive another grant, loan, or
scholarship for which the student is eligible in addition to the
receipt of a forgivable loan, except that the total amount of
funds received may not exceed the reasonable needs of the student
as determined by the postsecondary educational institution in
which the student is enrolled.

Added by Acts 1993, 73rd Leg., ch. 1020, Sec. 1, eff. Sept. 1,
1993.

Sec. 106.078.  Required Contract.

         (a) A student may receive assistance under this subchapter only
if the student signs a contract agreeing to provide health care
services to the sponsoring community upon completion of the
academic program and licensure or certification in the health
care profession for which the student is sponsored.

         (b) The contract must provide that if the student does not
provide the required services to the community or provides those
services for less than the required time, the student is
personally liable to the state for:

                       (1) the total amount of assistance the student receives from
         the center and the sponsoring community;

                       (2) interest on the total amount at a rate set by the
         executive committee; and

                       (3) the state's reasonable expenses incurred in obtaining
         payment, including reasonable attorney's fees.

Added by Acts 1993, 73rd Leg., ch. 1020, Sec. 1, eff. Sept. 1,
1993.

Sec. 106.079.  Loan Forgiveness.

         (a) A loan recipient shall be forgiven the principal and
interest of one year's loan for each year the recipient practices
as a health care professional providing health care services in
the sponsoring community.

         (b) A loan recipient must practice as a health care
professional providing health care services in the sponsoring
community for a minimum of two years.

         (c) If the executive committee finds that a sponsoring
community is not in need of the student's services and that the
community is willing to forgive repayment of the principal
balance and interest of the student's loan, the executive
committee by rule may provide for the principal balance and
interest of the student's loan to be forgiven if the student
provides services in another qualified area in this state.

Added by Acts 1993, 73rd Leg., ch. 1020, Sec. 1, eff. Sept. 1,
1993.

Sec. 106.080.  Fund.

         (a) The health careers education fund is established in the
state treasury.

         (b) The center shall administer the fund.

         (c) The fund consists of gifts, grants, donations, the market
value of in-kind contributions, and principal and interest
payments on forgivable loans deposited to the credit of the fund
by the center.

         (d) The center shall deposit any principal and interest
payments on forgivable loans to the credit of the fund.

         (e) The center shall allocate the fund, as available, for
forgivable loans and community repayment under this subchapter.

         (f) Unless otherwise provided by the General Appropriations
Act, the center may use money appropriated to the center to
support the fund.

Added by Acts 1993, 73rd Leg., ch. 1020, Sec. 1, eff. Sept. 1,
1993.

Sec. 106.081.  Reporting, Monitoring.

         (a) The center shall require reports from students,
communities, and postsecondary educational institutions as needed
to monitor the program.  The center shall distribute reports
relating to the progress of a student to the community sponsoring
the student.

         (b) The sponsoring community shall report to the executive
committee the length of time the student provides health care
services in the community in accordance with the guidelines
established by the executive committee.

         (c) A postsecondary educational institution shall provide to
the executive committee a copy of the academic transcript of each
student for whom the institution has received a release that
complies with state and federal open records laws and that
authorizes the provision of the transcript.

Added by Acts 1993, 73rd Leg., ch. 1020, Sec. 1, eff. Sept. 1,
1993.

Sec. 106.082.  Program Promotion.

         The center shall provide postsecondary educational institutions
and communities in qualified areas with information about health
care careers and loan opportunities, including information on
eligibility and availability of funds under this subchapter.

Added by Acts 1993, 73rd Leg., ch. 1020, Sec. 1, eff. Sept. 1,
1993.

Sec. 106.083.  Adoption of Rules.

         (a) The executive committee shall adopt reasonable rules to
enforce the requirements, conditions, and limitations under this
subchapter.

         (b) The executive committee shall set the rate of interest
charged on a forgivable loan under this subchapter.

         (c) The executive committee shall adopt rules necessary to
ensure compliance with the Civil Rights Act of 1964 (42 U.S.C.
Section 200d et seq.) concerning nondiscrimination in admissions.

Added by Acts 1993, 73rd Leg., ch. 1020, Sec. 1, eff. Sept. 1,
1993.
SUBCHAPTER E.  TEXAS HEALTH SERVICE CORPS PROGRAM FOR MEDICALLY
                       UNDERSERVED AREAS
                                
                  Sec. 106.101.  Definitions.
                                
                        In this chapter:
                                
(1) "Medically underserved area" means an area designated by the
United States Secretary of Health and Human Services as having:
                                
(A) a shortage of personal health services or a population group
   that has such a shortage as provided by 42 U.S.C. Section
                         300e-1(7); or
                                
  (B) a health professional shortage as provided by 42 U.S.C.
                      Section 254e(a)(1).
                                
(2) "Physician" means a resident physician who is enrolled in an
   accredited residency training program in this state in the
                         specialty of:
                                
                      (A) family practice;
                                
                 (B) general internal medicine;
                                
               (C) general pediatric medicine; or
                                
             (D) general obstetrics and gynecology.
                                
Added by Acts 1997, 75th Leg., ch. 644, Sec. 1, eff. June 11,
1997.

Sec. 106.102.  Texas Health Service Corps Program.

         (a) The executive committee shall establish a program in the
center to assist communities in recruiting and retaining
physicians to practice in medically underserved areas.

         (b) The executive committee by rule shall establish:

                       (1) eligibility criteria for applicants;

                       (2) stipend application procedures;

                       (3) guidelines relating to stipend amounts;

                       (4) procedures for evaluating stipend applications; and

                       (5) a system of priorities relating to the:

                      (A) geographic areas covered;

                      (B) medical specialties eligible to receive funding
         under the program; and

                      (C) level of stipend support.

Added by Acts 1997, 75th Leg., ch. 644, Sec. 1, eff. June 11,
1997.

Sec. 106.103.  Administration.

         (a) The executive committee shall adopt rules necessary to
administer this subchapter, and the center shall administer the
program in accordance with those rules.

         (b) The center shall conduct field research, collect
information, and prepare statistical and other reports relating
to the need for the program.

         (c) The center may not spend for the center's administrative
costs more than 10 percent of the amount appropriated to
administer this subchapter.

Added by Acts 1997, 75th Leg., ch. 644, Sec. 1, eff. June 11,
1997.

Sec. 106.104.  Required Contract.

         (a) The center may award a stipend to a physician under this
subchapter if the physician enters into a written contract to
provide services in a medically underserved area for at least one
year for each year that the physician receives the stipend.

         (b) The contract must provide that if the physician does not
provide the required services in the medically underserved area
or provides those services for less than the required term, the
physician is personally liable to the state for:

                       (1) the total amount of the stipend the physician receives;

                       (2) interest on that total amount for the period beginning
         on the date the physician signs the contract and ending on the
         date the physician repays the amount of the stipend computed at
         a rate equal to the sum of:

                      (A) the auction average rate quoted on a bank discount
         basis for 26-week treasury bills issued by the United States
         government, as published by the Federal Reserve Board, for
         the week preceding the week in which the contract is signed;
         and

                      (B) five percent; and

                       (3) the state's reasonable expenses incurred in obtaining
         payment, including reasonable attorney's fees.

Added by Acts 1997, 75th Leg., ch. 644, Sec. 1, eff. June 11,
1997.

Sec. 106.105.  Stipends.

         (a) The center shall award stipends to physicians for one-year
periods.  A stipend awarded under this subchapter may not exceed
$15,000 each year.

         (b) The center may renew a stipend used to assist a particular
physician.

         (c) A physician is not eligible for a stipend under this
subchapter for a period longer than is ordinarily and customarily
required for the completion of residency training for first board
eligibility.

         (d) A physician who receives a stipend under this subchapter is
not eligible to receive assistance under a state educational loan
repayment program or other state incentive program.

Added by Acts 1997, 75th Leg., ch. 644, Sec. 1, eff. June 11,
1997.

Sec. 106.106.  Funding.

         The center may seek, receive, and spend money received through
an appropriation, grant, donation, or reimbursement from any
public or private source to administer this subchapter.

Added by Acts 1997, 75th Leg., ch. 644, Sec. 1, eff. June 11,
1997.
 SUBCHAPTER E.  MEDICALLY UNDERSERVED COMMUNITY-STATE MATCHING
                           INCENTIVE
                            PROGRAM
                                
                  Sec. 106.101.  Definitions.
                                
                      In this subchapter:
                                
          (1) "Medically underserved community" means:
                                
(A) a community located in an area in this state with a medically
                    underserved population;
                                
 (B) a community located in an area in this state designated by
 the United States Secretary of Health and Human Services as an
       area with a shortage of personal health services;
                                
(C) a population group designated by the United States Secretary
 of Health and Human Services as having a shortage of personal
                      health services; or
                                
(D) a community that meets criteria adopted by the board by rule,
considering relevant demographic, geographic, and environmental
                            factors.
                                
(2) "Physician" means a person licensed to practice medicine in
                          this state.
                                
(3) "Primary care" means physician services in family practice,
general practice, internal medicine, pediatrics, obstetrics, or
                          gynecology.
                                
    (4) "Start-up money" means a payment made by a medically
    underserved community for reasonable costs incurred by a
physician to establish a medical office and ancillary facilities
             for diagnosing and treating patients.
                                
Added by Acts 1995, 74th Leg., ch. 349, Sec. 7, eff. Sept. 1,
1995.  Renumbered from V.T.C.A., Health & Safety Code Sec. 46.001
and amended by Acts 1997, 75th Leg., ch. 689, Sec. 1, eff. Sept.
1, 1997.

Sec. 106.102.  Program.

         (a) The executive committee shall establish and administer a
program under this subchapter to increase the number of
physicians providing primary care in medically underserved
communities.

         (b) A medically underserved community may sponsor a physician
who has completed a primary care residency program and has agreed
to provide primary care in the community by contributing to
start-up money for the physician and having that contribution
matched in whole or in part by state money appropriated to the
executive committee for that purpose.

         (c) A participating medically underserved community may provide
start-up money to an eligible physician over a two-year period.

         (d) The executive committee may not pay more than $25,000 to a
community in a fiscal year unless the executive committee makes a
specific finding of need by the community.

         (e) The executive committee shall prioritize the communities
eligible for assistance under this subchapter in order to assure
that the neediest communities are provided grants.

Added by Acts 1995, 74th Leg., ch. 349, Sec. 7, eff. Sept. 1,
1995.  Renumbered from V.T.C.A., Health & Safety Code Sec. 46.002
and amended by Acts 1997, 75th Leg., ch. 689, Sec. 1, eff. Sept.
1, 1997.

Sec. 106.103.  Eligibility.

         To be eligible to receive money from the executive committee ,
a medically underserved community must:

                       (1) apply for the money; and

                       (2) provide evidence satisfactory to the executive committee
         that it has entered into an agreement with a physician for the
         physician to provide primary care in the community for at least
         two years.

Added by Acts 1995, 74th Leg., ch. 349, Sec. 7, eff. Sept. 1,
1995.  Renumbered from V.T.C.A., Health & Safety Code Sec. 46.003
and amended by Acts 1997, 75th Leg., ch. 689, Sec. 1, eff. Sept.
1, 1997.

Sec. 106.104.  Rules.

         The executive committee shall adopt rules necessary for the
administration of this subchapter, including:

                       (1) eligibility criteria for a medically underserved
         community;

                       (2) eligibility criteria for a physician;

                       (3) minimum and maximum community contributions to the
         start-up money for a physician to be matched with state money;

                       (4) conditions under which state money must be repaid by a
         community or physician;

                       (5) procedures for disbursement of money by the executive
         committee ;

                       (6) the form and manner in which a community must make its
         contribution to the start-up money; and

                       (7) the contents of an agreement to be entered into by the
         parties to include at least:

                      (A) a credit check for an eligible physician; and

                      (B) community retention of interest in any property,
         equipment, or durable goods for seven years

Added by Acts 1995, 74th Leg., ch. 349, Sec. 7, eff. Sept. 1,
1995.  Renumbered from V.T.C.A., Health & Safety Code Sec. 46.004
and amended by Acts 1997, 75th Leg., ch. 689, Sec. 1, eff. Sept.
1, 1997.

Sec. 106.105.  Funding.

         The executive committee may accept gifts, grants, and donations
for the purposes of this chapter.

Added by Acts 1995, 74th Leg., ch. 349, Sec. 7, eff. Sept. 1,
1995.  Renumbered from V.T.C.A., Health & Safety Code Sec. 46.005
and amended by Acts 1997, 75th Leg., ch. 689, Sec. 1, eff. Sept.
1, 1997