(a) A hospital may not, as a condition to beginning a hospital internship or residency, require a United States citizen who resides in this state and who holds a diploma from a medical school outside the United States that is listed in the AVICENNA Directory for Medicine published by the University of Copenhagen, in collaboration with the World Health Organization and the World Federation for Medical Education, to:
(1) take an examination other than an examination required by the Texas Medical Board to be taken by a graduate of a medical school in the United States before allowing that graduate to begin an internship or residency;
(2) complete a period of internship or graduate clinical training; or
(3) be certified by the Educational Commission for Foreign Medical Graduates.
(b) This section applies only to a hospital that:
(1) is licensed by this state;
(2) is operated by this state or a political subdivision of this state; or
(3) receives direct or indirect state financial assistance.