A Texas State Medical Education Board, designed to provide grants, loans or scholarships to students desiring to study medicine and agreeing to practice in the rural areas of this State, was authorized by a constitutional amendment adopted by the voters on November 4, 1952 (Texas Constitution, Article III, Section 50a) (amendment proposed by House Joint Resolution 38, 52nd Texas Legislature, Regular Session, 1951). However, the Texas State Rural Medical Education Board was not actually created until 1973 (House Bill 683, 63rd Texas Legislature, Regular Session). Its purpose was to provide financial aid to medical students agreeing to practice medicine in rural areas of Texas. The board could accept gifts, grants, or donations from any persons or entities, deposited into a State Rural Medical Education fund. The board then received applications from students for financial aid, to be paid out of the fund. Loans were made at five percent interest, but an applicant would receive credit for one-fifth of the principal and interest for each year of rural practice after graduation. The board could sue for the balance due on a contract, and could contract with state-licensed insurance companies for issuance of life insurance on the student borrower.

In 1987, the legislature announced its intention to transfer the duties of the State Rural Medical Education Board to the Texas College and University System Coordinating Board (Senate Bill 1 (General Appropriations Act), 70th Texas Legislature, 2nd Called Session). But the Rural Medical Education Board chose not to enter into an interagency contract with the Coordinating Board. And in February 1989, Attorney General Jim Mattox issued an opinion that the rider was unconstitutional, and that the functions and duties of the Rural Medical Education Board could not constitutionally be transferred to the Coordinating Board. There is some evidence that it was still in existence at least as late as 2000, but State Archives staff could not determine whether it is still functioning.

The Texas State Rural Medical Education Board was composed of six members, all appointed by the governor with advice and consent of the state senate for overlapping six-year terms. Three of the members had to be licensed physicians with at least five years of experience practicing medicine in a rural county in Texas (with a population of less than 25,000); the other three had to be members of the general public who resided in a rural area for at least five years. Administration of the board was through an interagency contract with the Texas State Board of Medical Examiners.

(Sources include: Guide to Texas State Agencies, 5th edition (1978); Texas Constitution, Article III, Section 50a; Attorney General Opinion No. JM-1018; and the enabling legislation, 1951, 1973, 1975, 1987.)