VERNON'S TEXAS CIVIL STATUTES

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

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 Repealed by Acts 1989, 71st Leg., ch. 1084, Sec. 4.01(3), 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.            

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

"Board" defined

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

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

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.

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

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.

Sec. 2 amended by Acts 1989, 71st Leg., ch. 1084, Sec. 3.08, eff. 
Sept. 1, 1989.

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. 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. 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.

Sec. 11 amended by Acts 1997, 75th Leg., ch. 1423, Sec. 21.47, eff. 
Sept. 1, 1997.

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. 14 amended by Acts 1989, 71st Leg., ch. 1084, Sec. 3.08, eff. 
Sept. 1, 1989.

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.

Sec. 17 amended by Acts 1989, 71st Leg., ch. 1084, Sec. 3.08, eff. 
Sept. 1, 1989.

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.

Sec. 20 amended by Acts 1983, 68th Leg., p. 4330, ch. 691, Sec. 3, 
eff. Aug. 29, 1983.

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