HBA-KMH H.B. 3544 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3544
By: Hodge
Higher Education
4/1/1999
Introduced



BACKGROUND AND PURPOSE 

In 1998, the Texas Department of Health designated 87 dental health
professional shortage areas in Texas.  Dental services are not available in
many parts of Texas because there is not a dental provider in close
proximity.  The dentists who are available may not take Medicaid as a
payment source.  Representatives from Texas' dental schools (Baylor College
of Dentistry, U.T.-Houston, and U.T.-San Antonio), the Texas Department of
Health, the Texas Higher Education Coordinating Board, and the Texas Dental
Association have made efforts to recruit dentists in some of these
underserved areas.  H.B. 3544 creates a student loan repayment assistance
program to provide an incentive for dentists to practice in an underserved
area. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Higher Education Coordinating
Board in SECTION 1 (Sections 61.902 and 61.908, Education Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 61, Education Code, by adding Subchapter S, as
follows: 

SUBCHAPTER S.  REPAYMENT OF CERTAIN DENTAL EDUCATION LOANS

Sec.  61.901.  REPAYMENT AUTHORIZED.  Authorizes the Texas Higher Education
Coordinating Board (board) to provide using funds appropriated for that
purpose and in accordance with this subchapter and rules of the board,
assistance in the repayment of student loans for dentists who apply and
qualify for the assistance. 

Sec.  61.902.  ELIGIBILITY.  Provides that a dentist must apply to the
board and have completed at least one year of dental practice in an area of
the state that is underserved with respect to dental care in order to be
eligible for repayment assistance.  Authorizes the board, by rule, to
provide for repayment assistance on a pro rata basis for dentists in
part-time practice described by this section. 

Sec.  61.903.  LIMITATION.  Authorizes a dentist to receive repayment
assistance grants for each of not more than five years. 

Sec.  61.904.  ELIGIBLE LOANS.  Authorizes the board to provide repayment
assistance for the repayment of any student loan for education at an
institution of higher education, including loans for undergraduate
education, received by a dentist through any lender. Authorizes the board
to withhold repayment assistance for a student loan that is in default at
the time of the dentist's application.  Requires the board each fiscal
biennium to attempt to allocate all funds appropriated to it for the
purpose of providing repayment assistance under this subchapter. 

Sec.  61.905.  REPAYMENT.  Requires the board to deliver any repayment made
under this subchapter in a lump sum payable to the lender and the dentist,
in accordance with any applicable federal law.  Authorizes a repayment
under this subchapter to be applied to any  amount due in connection with
the loan. 

Sec.  61.906.  ADVISORY COMMITTEES.  Authorizes the board to appoint
advisory committees from outside the board's membership to assist the board
in performing its duties under this subchapter and to request the
assistance of the Oral Health Services Advisory Committee in performing
those duties. 

Sec.  61.907.  ACCEPTANCE OF FUNDS.  Authorizes the board to accept gifts,
grants, and donations for the purposes of this subchapter. 

Sec.  61.908.  RULES.  Requires the board to adopt rules necessary for the
administration of this subchapter, including a rule that sets a maximum
amount of repayment assistance that is authorized to be received by a
dentist in one year.  Authorizes the board to consult with the Oral Health
Services Advisory Committee to assist the board in establishing priorities
among eligible dentists for repayment assistance, taking into account the
degree of an area's shortage of dental services, geographic locations,
whether the dentist is or will be providing service in an underserved area
with respect to dental services, and other criteria the board considers
appropriate.  Requires the board to distribute to each dental school in
this state and to appropriate state agencies and professional associations
copies of the rules adopted under this section and other pertinent
information relating to this subchapter. 

Sec.  61.909.  TOTAL AMOUNT OF REPAYMENT ASSISTANCE.  Prohibits the total
amount of repayment assistance distributed by the board under this
subchapter from exceeding the total amount of gifts and grants accepted by
the board for repayment assistance, dental school tuition set aside under
Section 61.910, legislative appropriations for repayment assistance, and
other funds available to the board for purposes of this subchapter. 

Sec.  61.910.  DENTAL SCHOOL TUITION SET ASIDE FOR CERTAIN LOAN REPAYMENTS.
Requires the governing board of each institution of higher education to set
aside two percent of tuition charges for resident students enrolled in a
degree program for training dentists.  Requires the amount set aside to be
transferred to the comptroller of public accounts to be maintained in the
state treasury for the sole purpose of repayment of student loans of
dentist under this subchapter.  Provides that Section 403.095(b) (Use of
Dedicated Revenue), Government Code, does not apply to the amount set aside
by this section. 

SECTION 2.  Effective date: September 1, 1997.

SECTION 3.  Emergency clause.