SB1998

Regular Session

Relating to a preceptorship program in a pediatric subspecialty for medical students in this state.

LowStandard timeline

Low Cost

Effective:2025-09-01

Enforcing Agencies

Texas Higher Education Coordinating Board

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025 (Applies beginning with the 2025-2026 academic year).
Compliance Deadline: Summer 2025. Organizations intending to bid for administration or participate as host sites must align curricula and contracts prior to the Fall 2025 semester start.
Agency Rulemaking: The THECB must establish program guidelines and contract terms. Expect a Request for Applications (RFA) or program rules to be published in the *Texas Register* between May and July 2025.

Immediate Action Plan

1. Audit Preceptor Lists: Immediately review your roster of clinical rotation sites to identify physicians with ABMS/AOA subspecialty certifications.
2. Update Student Forms: Modify clinical rotation applications to include a checkbox or written statement for "Interest in Pediatric Subspecialty" to satisfy statutory eligibility.
3. Prepare Tax Docs: If you are a non-profit entity planning to bid, ensure your IRS determination letters are current and accessible.
4. Monitor THECB: Assign a compliance officer to watch the THECB agenda in Summer 2025 for the release of program guidelines and funding rates.

Operational Changes Required

Contracts

Master Agreements: If your organization (medical school or non-profit) intends to administer the program, you must execute a performance-based contract with the THECB.
Affiliation Agreements: Administrators must execute or amend MOUs with downstream clinics and hospitals. These agreements must explicitly reference the pediatric subspecialty nature of the rotation to qualify for state funds.

Hiring/Training

Preceptor Vetting: You must verify and document that every supervising physician holds a valid subspecialty certification from the American Board of Medical Specialties (ABMS) or the American Osteopathic Association (AOA). General pediatricians do not qualify for this specific program stream.
Student Intake: Admissions and clinical education departments must update intake workflows to identify students with a declared interest in pediatric subspecialties.

Reporting & Record-Keeping

Eligibility Documentation: Maintain auditable records of:
1. The administering organization's 501(c) tax-exempt status.
2. Participating students' written declarations of interest in pediatric subspecialties.
3. Preceptor board certifications.

Fees & Costs

Budget Impact: No new fees are imposed on businesses. This is a funding opportunity; however, the legislation assumes costs will be "absorbed" by existing resources, suggesting the per-student funding allocation from the state may be lean.

Strategic Ambiguities & Considerations

Funding Discretion: The statute states the Board "may" contract, not "shall." Without a specific line-item appropriation, the THECB has discretion on whether to activate this program. Do not commit resources until the RFA is released.
"Eligible Organization" Criteria: Beyond 501(c) status, the THECB has not defined what operational capacities (e.g., geographic reach, administrative history) will be required to win the administration contract.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsEducation Education--higher Education--higher--health Institutions Pediatricians Physicians Higher Education Coordinating Board, Texas

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 1998
89R13146 JTZ-F	By: Huffman
	Education K-16
	4/9/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.B. 1998 authorizes the Texas Higher Education Coordinating Board to contract with one or more organizations to establish and operate a statewide pediatric subspecialty preceptorship program for medical students in Texas. To qualify for funding, an organization must be either a nonprofit or affiliated with a state-accredited medical school. Medical students must demonstrate an interest in pursuing a career in a pediatric subspecialty to be eligible for the program.

As proposed, S.B. 1998 amends current law relating to a preceptorship program in a pediatric subspecialty for medical students in this state.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 58, Education Code, by adding Section 58.011, as follows:

Sec. 58.011. STATEWIDE PEDIATRIC SUBSPECIALTY PRECEPTORSHIP PROGRAM. (a) Defines "medical school" and "pediatric subspecialty."

(b)� Authorizes the Texas Higher Education Coordinating Board to contract with one or more organizations to operate a statewide pediatric subspecialty preceptorship program for medical students enrolled in Texas medical schools.

(c)� Requires an organization eligible to receive funds under this section to qualify for exemption from federal income tax under Section 501, Internal Revenue Code of 1986 (26 U.S.C. Section 501) or be operated by a state accredited medical school.

(d)� Requires students eligible to participate in the preceptorship program under this section to indicate an interest in a career in a pediatric subspecialty.

SECTION 2. Provides that this Act applies beginning with the 2025�2026 academic year.

SECTION 3. Effective date: upon passage or September 1, 2025.

Senate Authors

Sen. Joan HuffmanRepublican · Primary Author

Coauthors (1)

Sarah Eckhardt (D)

House Sponsors

Rep. Joanne ShofnerRepublican · Primary Sponsor

Joint Sponsors

Suleman Lalani (D)

Cosponsors (2)

Bill Text(with markup)

S.B. No. 1998

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to a preceptorship program in a pediatric subspecialty for
	medical students in this state.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Chapter 58, Education Code, is amended by adding
	Section 58.011 to read as follows:
	Sec. 58.011. STATEWIDE PEDIATRIC SUBSPECIALTY
	PRECEPTORSHIP PROGRAM. (a) In this section:
	(1) "Medical school" has the meaning assigned by
	Section 61.501(1), except that the term also includes the school of
	osteopathic medicine at the University of the Incarnate Word.
	(2) "Pediatric subspecialty" means a pediatric
	medical subspecialty certification offered by a member board of the
	American Board of Medical Specialties or American Osteopathic
	Association.
	(b) The Texas Higher Education Coordinating Board may
	contract with one or more organizations to operate a statewide
	pediatric subspecialty preceptorship program for medical students
	enrolled in Texas medical schools.
	(c) An organization eligible to receive funds under this
	section must:
	(1) qualify for exemption from federal income tax
	under Section 501, Internal Revenue Code of 1986 (26 U.S.C. Section
	501); or
	(2) be operated by a state accredited medical school.
	(d) Students eligible to participate in the preceptorship
	program under this section must indicate an interest in a career in
	a pediatric subspecialty.
	SECTION 2. This Act applies beginning with the 2025-2026
	academic year.
	SECTION 3. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 9, 2025

TO:	Honorable Brandon Creighton, Chair, Senate Committee on Education K-16

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB1998 by Huffman (Relating to a preceptorship program in a pediatric subspecialty for medical students in this state.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration

LBB Staff:

JMc, FV, LBO, BCa

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Frequently Asked Questions

Common questions about SB1998

What does Texas SB1998 do?

SB1998 authorizes the Texas Higher Education Coordinating Board (THECB) to contract with medical schools or 501(c) non-profits to administer a statewide pediatric subspecialty preceptorship program. This legislation creates a new funding stream and operational framework for clinical rotations, requiring specific eligibility verification for both students (career interest) and preceptors (board certification). Implementation Timeline Effective Date: September 1, 2025 (Applies beginning with the 2025-2026 academic year).

Who authored SB1998?

SB1998 was authored by Texas Senator Joan Huffman during the Regular Session.

When was SB1998 signed into law?

SB1998 was signed into law by Governor Greg Abbott on May 21, 2025.

Which agencies enforce SB1998?

SB1998 is enforced by Texas Higher Education Coordinating Board.

How urgent is compliance with SB1998?

The compliance urgency for SB1998 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB1998?

The cost impact of SB1998 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB1998 address?

SB1998 addresses topics including education, education--higher, education--higher--health institutions, pediatricians and physicians.

Legislative data provided by LegiScanLast updated: November 25, 2025

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