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VERNON'S CIVIL STATUTES

TITLE 71. HEALTH--PUBLIC

CHAPTER 6. MEDICINE

Art. 4498c. STATE RURAL MEDICAL EDUCATION BOARD.

Creation

Sec. 1. There is hereby established and created the State Medical

Education Board, which shall have the general powers and duties

authorized and imposed by the provisions of this Act. The State

Medical Education Board is administratively attached to the Texas

Higher Education Coordinating Board. The coordinating board shall

provide the staff necessary for the State Medical Education Board

to perform its duties. The State Medical Education Board shall

adopt rules to carry out this Act.

Sec. 1a. Repealed by Acts 1989, 71st Leg., ch. 1084, Sec.

4.01(3), eff. Sept. 1, 1989.

Citation of act

Sec. 1b. This Act may be cited as the State Medical Education

Act.

"Board" defined

Sec. 1c. In this Act, "Board" means the State Medical Education

Board.

Board duties

Sec. 1d. The duties of the State Medical Education Board are to

carry out the administration and collection of loans already made

under this Act.

Members; appointment; qualifications; terms of office; vacancies;

oath of office; commission

Sec. 2. The Board shall consist of six members, who shall be

appointed by the Governor with the advice and consent of the

Senate, and who shall have the following qualifications: Three of

the members shall be legally qualified practicing physicians, who

shall have had not less than five years experience in the actual

practice of medicine within the State of Texas in rural areas as

defined by this Act, of good professional standing and graduates

of recognized medical colleges; three of whose members shall

consist of citizens of this State who have maintained residence

for a period of not less than five years in a rural area as

defined by this Act.

The terms of office of members of the Board shall be for six

years. Any vacancy in an unexpired term shall be filled by

appointment of the Governor with the advice and consent of the

Senate for the unexpired term. The members of the Board shall

qualify by taking a Constitutional Oath of office before an

officer authorized to administer oaths with this State, and, upon

presentation of such oath of office, together with a certificate

of their appointment, the Secretary of State shall issue

commissions to them.

Secs. 3 to 6. Repealed by Acts 1989, 71st Leg., ch. 1084, Sec.

4.01(3), eff. Sept. 1, 1989.

Amount and proportioning of loans, grants and scholarships;

repayment; credit for rural practice; default

Sec. 7. Applicants who are granted loans, grants or scholarships

by the Board shall receive an amount which may defray his or her

tuition and other expenses in any reputable, accepted and

accredited medical school or medical college or school listed by

the World Health Organization, or a scholarship to any such

medical college or school for a term not exceeding four (4)

years, same to be paid at such time and in such manner as may be

determined by the Board. The loans, grants and scholarships

herein provided may be proportioned in any such manner as to pay

to the medical school to which any applicant is admitted such

funds as are required by that school, and the balance to be paid

directly to the applicant; all of which shall be under such terms

and conditions as may be provided under rules and regulations of

the Board. The said loans, grants, or scholarships shall be based

upon the condition that the full amount thereof shall be repaid

to the State of Texas in cash in full with ten (10) percent

interest from the date of each payment by the State on such loan,

grant or scholarship or by satisfaction of other conditions of

the Board or this Act. If the applicant practices his profession

in a rural area as defined by this Act the Board is authorized

and shall credit one-fifth of the loan, grant or scholarship

together with interest thereon to the applicant for each year of

such practice as certified by the Board. At the end of the second

full year of practice in a rural area as provided for herein, the

applicant shall be privileged to pay off the balance of the loan,

grant or scholarship as the case may be with accrued interest

thereon, and upon such payment shall be relieved from further

obligation under his contract. Should the applicant default under

his contract at any time the full principal and accrued interest

plus a penalty of 100 percent of the outstanding balance plus

attorneys' fees as defined by said contract shall be due and

owing to the State.

Sec. 7A. Repealed by Acts 1989, 71st Leg., ch. 1084, Sec.

4.01(3), eff. Sept. 1, 1989.

Contract of Applicant; Terms and Conditions; Form; Signature;

Removal of Disabilities; Suits

Sec. 8. Each applicant before being granted a loan, grant or

scholarship shall enter into a contract with the Board, which

shall be deemed a contract within the State of Texas, agreeing to

the terms and conditions upon which the loan or scholarship shall

be granted to him, which said contract shall include such terms

and provisions as will carry out the full purpose and intent of

this Act, and the form thereof shall be prepared and approved by

the Attorney General of this State, and shall be signed by the

Chairman of the Board, countersigned by the Secretary, and shall

be signed by the applicant. For the purposes of this Act the

disabilities and minorityhood of all applicants granted loans or

scholarships hereunder shall be and the same are hereby removed

and said applicants are declared to be full lawful age for the

purpose of entering into the contract hereinabove provided for,

and such contract so executed by any applicant is hereby declared

to be a valid and binding contract the same as though the said

applicant were of the full age of twenty-one (21) years and

upward. The Board is hereby vested with the full and complete

authority and power to sue in its own name any applicant for any

balance due the Board upon any such contract.

Contracts for Admission with Medical Colleges or Schools

Sec. 9. It shall be the duty of the Board to contact and make

inquiry of such of the medical colleges or schools as herein

provided as it deems proper, and make such arrangements and enter

into such contracts, within the limitations as to cost as herein

provided, for the admission of students granted loans or

scholarships by the Board, such contracts to be approved by the

Attorney General of this State, and money obligations of such

contracts so made by the Board with any such college shall be

paid for out of the funds to be provided by law for such

purposes, and all students granted loans, grants or scholarships

shall attend the medical school with which the Board has entered

a contract, or any accredited medical school or college in which

said applicant may obtain admission, and which is approved by the

Board.

Cancellation of Contracts

Sec. 10. The Board shall promulgate and adopt rules and

regulations for the cancellation of any contract made between it

and any applicant for loans or scholarships upon such cause

deemed sufficient by the Board. And the Board shall have

authority to cancel such contracts which it may lawfully cancel

made with any of the colleges or schools as herein provided.

Requisition; Warrant; Payment by Comptroller out of Appropriated

Funds

Sec. 11. All payments of funds or loans or scholarships hereunder

shall be made by requisition of the Board signed by the Chairman

and the Secretary directed to the Comptroller of the Public

Accounts, who shall thereupon issue a warrant on the Treasury of

the State of Texas for the amount fixed in the requisition and

payable to the person designated thereon, which said warrant upon

presentation shall be paid by the Comptroller out of any funds

appropriated by the Legislature for the purpose provided for

under this Act.

Contracts for Life Insurance

Sec. 12. The Board may contract with any insurance company or

companies licensed to do business in Texas for issuance on the

life of any applicant an amount sufficient to retire the

principal and interest owed under a loan made under the

provisions of this Act, the costs of the insurance shall be paid

by the student borrower. No contract for insurance provided for

in this section may be approved except by the Board during a

regular meeting attended by a quorum of the total Board

membership.

Extension of Time for Beginning Repayment

Sec. 13. The Board may extend the time for beginning repayment

for unusual or financial hardships with approval of the Attorney

General.

Suit on default

Sec. 14. (a) The Board shall collect any payments due from a loan

recipient under this Act. The Attorney General shall make those

collections only if the loan recipient defaults on making those

payments.

(b) Upon any default as provided for herein the Board shall turn

the same over to the Attorney General for prosecution and suit

for the remaining sum shall be instituted by the Attorney

General, or any county or district attorney acting for him, in

the county of the person's residence, the county in which is

located the institution at which the person was last enrolled, or

in Travis County, unless the Attorney General finds reasonable

justification for delaying suit and so advises the Board in

writing.

Sec. 15. Repealed by Acts 1989, 71st Leg., ch. 1084, Sec.

4.01(3), eff. Sept. 1, 1989.

Contracts with State and Federal Agencies, Corporations, Etc.

Sec. 16. In achieving the goals outlined in this Act and the

performance of functions assigned to it, the Board may contract

with any other State governmental agency as authorized by law,

with any agency of the United States, and with corporations,

associations, partnerships, and individuals.

Gifts, grants or donations; acceptance; deposit; expenditure

Sec. 17. The Board may accept gifts, grants or donations of real

or personal property from any individual, group, association, or

corporation or the United States, subject to limitations or

conditions set by law. The gifts, grants, or donations of money

shall be deposited in the Texas Medical Education Board fund,

separately accounted for, and expended in accordance with the

specific purposes for which given and under such conditions as

are imposed by the donor and as provided by law.

Audit

Sec. 18. All transactions under this Act are subject to audit by

the State Auditor.

Sec. 19. Repealed by Acts 1989, 71st Leg., ch. 1084, Sec.

4.01(3), eff. Sept. 1, 1989.

Rural Area

Sec. 20. Rural areas as defined in this Act shall mean residence

in or intention to practice in a county of the State of Texas

which according to the last preceding Federal Census had a

population of less than 30,000.

Acts 1973, 63rd Leg., p. 782, ch. 348, eff. June 12, 1973.

Sec. 1 amended by Acts 1989, 71st Leg., ch. 1084, Sec. 3.07, eff.

Sept. 1, 1989.

Sec. 1b added by Acts 1989, 71st Leg., ch. 1084, Sec. 3.07, eff.

Sept. 1, 1989.

Sec. 1c added by Acts 1989, 71st Leg., ch. 1084, Sec. 3.07, eff.

Sept. 1, 1989.

Sec. 1d added by Acts 1989, 71st Leg., ch. 1084, Sec. 3.07, eff.

Sept. 1, 1989.

Sec. 2 amended by Acts 1989, 71st Leg., ch. 1084, Sec. 3.08, eff.

Sept. 1, 1989.

Sec. 7 amended by Acts 1977, 65th Leg., p. 130, ch. 60, Sec. 1,

eff. Aug. 29, 1977; Acts 1983, 68th Leg., p. 4329, ch. 691, Sec.

2, eff. Aug. 29, 1983.

Sec. 11 amended by Acts 1997, 75th Leg., ch. 1423, Sec. 21.47,

eff. Sept. 1, 1997.

Sec. 14 amended by Acts 1989, 71st Leg., ch. 1084, Sec. 3.08,

eff. Sept. 1, 1989.

Sec. 17 amended by Acts 1989, 71st Leg., ch. 1084, Sec. 3.08,

eff. Sept. 1, 1989.

Sec. 20 amended by Acts 1983, 68th Leg., p. 4330, ch. 691, Sec.

3, eff. Aug. 29, 1983.