SRC-SEW, MKV H.B. 7 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 7
By: Chisum (Sibley)
State Affairs
5/3/2001
Engrossed


DIGEST AND PURPOSE 

Promoting economic development and ensuring the general welfare of rural
communities in Texas is a continuing challenge for Texas state government.
Social and economic forces in rural Texas have led to post offices and
hospitals being closed or consolidated; home-owned cafes, department
stores, and banks being replaced by national chains; smaller and smaller
graduating classes; downtowns being bypassed by highway loops; and empty
storefronts on main street. It is clear that rural Texas is in a state of
transition. The future of rural communities lies in how well rural Texas
communities adjust to the changes.  

Recognizing that government is an economic pillar in rural areas, Speaker
James E. "Pete" Laney appointed the House Select Committee on Rural
Development whose mission it was to search for ways state, local, and
federal governments can improve the quality of life in rural Texas. A major
issue identified by the select committee is that there is no focus point at
state or federal levels for rural policy formulation or implementation,
which results in fragmented policies spread among a myriad of governmental
agencies. All levels of government have a hand in developing and
implementing rural policy and cooperation and coordination are essential to
maximizing the effectiveness of policy programs.  

H.B. 7 creates the Office of Rural Community Affairs as a stand-alone
executive branch state agency to assure a continuing focus on rural issues,
monitor governmental actions affecting rural Texas, research problems and
recommended solutions, and coordinate rural programs among state agencies.  

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the executive committee of the
Office of Rural Community Affairs in SECTION 1 (Sections 487.052, 487.109,
487.112, 487.159, 487.163, 487.204, 487.252, and 487.253, Government Code)
of this bill.   

Rulemaking authority is expressly granted to the Office of Rural Community
Affairs in SECTION 1 (Sections 487.104, 487.105, 487.302, 487.304, and
487.351, Government Code) and SECTION 9 (Section 204.104(b), Occupations
Code) of this bill 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 4F, Government Code, by adding Chapter 487,  as
follows: 

CHAPTER 487.  OFFICE OF RURAL COMMUNITY AFFAIRS

SUBCHAPTER A.  GENERAL PROVISIONS

 Sec. 487.001.  DEFINITIONS.  Defines "executive committee" and "office."

Sec. 487.002.  SUNSET PROVISION.  Provides that the Office of Rural
Community Affairs (office) is subject to Chapter 325 (Texas Sunset Act).
Provides that, unless continued in  existence as provided by that chapter,
the office is abolished and this chapter expires September 1, 2007. 

[Sections 487.003-487.020 reserved for expansion]

SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS

Sec. 487.021.  EXECUTIVE COMMITTEE. (a)  Provides that the executive
committee of the Office of Rural Community Affairs (executive committee) is
the governing body of the office. 

  (b)  Sets forth the composition of the executive committee.

(c)  Requires the governor, the lieutenant governor, and the speaker of the
house of representatives to each appoint at least two members who possess a
strong understanding of and commitment to rural interests based on the
individual's personal history, including residency, occupation, and
business or civic activities. 

 (d)  Requires appointments to the executive committee to be made without
regard to the race, color, disability, sex, religion, age, or national
origin of the appointees. 

 (e)  Provides that the members of the executive committee serve for
staggered six-year terms, with the terms of three members expiring February
1 of each odd-numbered year. 

 (f)  Provides that executive committee members receive no compensation but
are entitled to reimbursement of actual and necessary expenses incurred in
the performance of their duties. 

 (g)  Requires the members of the executive committee annually to elect a
presiding officer from among the members of the executive committee. 

Sec. 487.022.  CONFLICTS OF INTEREST. (a)  Defines "Texas trade
association."  

 (b)  Prohibits a person from being a member of the executive committee and
from being an office employee employed in a "bona fide executive,
administrative, or professional capacity," as that phrase is used for
purposes of establishing an exemption to the overtime provisions of the
federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.)
and its subsequent amendments, under certain conditions. 
  
 (c)  Prohibits a person from being a member of the executive committee or
acting as the general counsel to the executive committee or the office if
the person is required to register as a lobbyist under Chapter 305 because
of the person's activities for compensation on behalf of a profession
related to the operation of the office. 

Sec. 487.023.  TRAINING FOR MEMBERS OF EXECUTIVE COMMITTEE. (a) Prohibits a
person who is appointed to and qualifies for office as a member of the
executive committee from voting, deliberating, or being counted as a member
in attendance at a meeting of the executive committee until the person
completes a training program that complies with this section. 

  (b)  Requires the training program to provide the person with certain
information . 

 (c)  Provides that a person appointed to the executive committee is
entitled to reimbursement, as provided by general law and the General
Appropriations Act, for the travel expenses incurred in attending the
training program regardless of whether the  attendance at the program
occurs before or after the person qualifies for office. 

Sec. 487.024.  REMOVAL.  Sets forth guidelines regarding removal from the
executive committee.  
 
Sec. 487.025.  DIVISION OF RESPONSIBILITY.  Requires the executive
committee to develop and implement policies that clearly separate the
policy-making responsibilities of the executive committee and the
management responsibilities of the executive director and staff of the
office. 

Sec. 487.026.  EXECUTIVE DIRECTOR. Authorizes the executive committee to
hire an executive director to serve as the chief executive officer of the
office and to perform the administrative duties of the office.  Provides
that the executive director serves at the will of the executive committee.
Authorizes the executive director to hire staff within guidelines
established by the executive committee. 

Sec. 487.027.  PUBLIC HEARINGS.  Requires the executive committee to
develop and implement policies that provide the public with a reasonable
opportunity to appear before the executive committee and to speak on any
issue under the jurisdiction of the office. 

Sec. 487.028.  EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.  Sets forth
guidelines regarding the preparation and maintenance of a written equal
employment opportunity policy statement. 

Sec. 487.029.  STANDARDS OF CONDUCT.  Requires the executive director or
the executive director's designee to provide to members of the executive
committee and to agency employees, as often as necessary, information
regarding the requirements for office or employment under this chapter,
including information regarding a person's responsibilities under
applicable laws relating to standards of conduct for state officers or
employees. 

Sec. 487.030.  COMPLAINTS.  Sets forth guidelines regarding complaints
filed with the office. 

[Reserves Sections 487.031-487.050 for expansion]

SUBCHAPTER C.  GENERAL POWERS AND DUTIES

Sec. 487.051.  POWERS AND DUTIES.  Requires the office to perform certain
functions. 

Sec. 487.052.  RULES.  Authorizes the executive committee to adopt rules as
necessary to implement this chapter. 

Sec. 487.053.  GIFTS AND GRANTS.  Authorizes the office to accept gifts,
grants, and donations from any organization for the purpose of funding any
activity under this chapter, and requires the office to actively seek
funding from appropriate nonprofit foundations.  Requires all gifts,
grants, and donations to be accepted in an open meeting by a majority of
the voting members of the executive committee and reported in the public
record of the meeting with the name of the donor and purpose of the gift,
grant, or donation. 

Sec. 487.054.  ANNUAL MEETING ON RURAL ISSUES. Requires certain agency
heads, at least once each year, to meet to discuss rural issues.  Requires
the executive committee to call the annual meeting.  Requires the executive
committee to set the time and date of the meeting after consulting with the
agency heads listed in this section. 

Sec. 487.055.  ADVISORY COMMITTEES.  Authorizes the executive committee to
appoint  advisory committees as necessary to assist the executive committee
in performing its duties. Sets forth guidelines regarding an advisory
committee under this section.  

Sec. 487.056.  REPORT TO LEGISLATURE.  Requires the office, not later than
January 1 of each odd-numbered year, to submit a biennial report to the
legislature regarding the activities of the office and any findings and
recommendations relating to rural issues. 

Sec. 487.057.  RURAL HEALTH WORK PLAN.  Requires the office to develop,
implement, and update a rural health work plan. 

 (b)  Requires the office to submit the rural health work plan to the
executive committee for approval.  Requires the executive committee to
approve the rural health work plan not later than August 1 of each
odd-numbered year. 

 (c)  Requires the office to work with certain entities to develop the
rural health work plan.  Requires the office to solicit public comment on
the rural health work plan. 

  (d)  Sets forth requirements for the rural health work plan.  
  
Sec. 487.058.  CONTRACT FOR ADMINISTRATIVE SERVICES. Requires the office to
enter into an interagency contract with another state agency to provide
routine administrative services for the office.  Requires the Legislative
Budget Board and the Department of Information Resources to perform certain
functions.   
  
[Reserves Sections 487.059-487.100 for expansion]

SUBCHAPTER D. OUTSTANDING RURAL SCHOLAR
RECOGNITION AND LOAN PROGRAM FOR RURAL HEALTH CARE

Sec. 487.101.  DEFINITIONS.  Defines "selection committee," "fund,"
"postsecondary educational institution," "program," and "rural community."
  
Sec. 487.102.  ADMINISTRATION.  Requires the office to administer or
contract for the administration of the program. 

Sec. 487.103.  SELECTION COMMITTEE.  Sets forth guidelines regarding the
selection committee.  

Sec. 487.104.  SELECTION OF OUTSTANDING RURAL SCHOLARS.  Sets forth
guidelines regarding the selection of outstanding rural scholars to receive
public recognition and a certificate of award be eligible for a forgivable
loan, including criteria adopted as a rule by the office. 

Sec. 487.105.  ELIGIBILITY FOR OUTSTANDING RURAL SCHOLAR COMPETITION.  Sets
forth guidelines regarding eligibility for the competition under Section
487.104, including eligibility rules adopted by the office. 

Sec. 487.106.  ELIGIBILITY FOR LOANS; RURAL COMMUNITY FINANCIAL SUPPORT.
Sets guidelines regarding community financial support and eligibility
requirements for forgivable loans.   

Sec. 487.107.  AWARDING OF LOANS.  Sets forth guidelines regarding the
awarding of loans.  

Sec. 487.108.  AMOUNT OF LOAN.  (a) Requires the selection committee, upon
certain  conditions, to annually recommend to the executive committee that
the committee award a forgivable loan to the scholar in the amount of 50
percent of the cost of the scholar's tuition, fees, educational materials,
and living expenses.   

 (b)  Authorizes an outstanding rural scholar to receive another grant,
loan, or scholarship for which the scholar is eligible in addition to the
receipt of a forgivable loan, except that the total amount of funds
received is prohibited from exceeding the reasonable needs of the scholar. 

Sec. 487.109.  LOAN FORGIVENESS.  Sets forth guidelines regarding loan
forgiveness or denied loan forgiveness, including reference to executive
committee rule.   

 Sec. 487.110.  FUND.  Sets forth guidelines regarding the outstanding
rural scholar fund.   

Sec. 487.111.  POSTSECONDARY EDUCATIONAL INSTITUTIONS; MONITORING. (a)
Requires a postsecondary educational institution to provide to the
selection committee a copy of the academic transcript of each rural scholar
for whom the institution has received a release that complies with state
and federal open records laws and authorizes the provision of a transcript. 

 (b)  Requires the office to require reports from students and
postsecondary educational institutions as needed to monitor the program.
Requires the office, after receiving any necessary releases as a condition
of providing assistance, to distribute reports relating to the progress of
an outstanding rural scholar to the community sponsoring the scholar. 

Sec. 487.112.  ADOPTION AND DISTRIBUTION OF RULES.  (a) Requires the
executive committee to adopt reasonable rules to enforce the requirements,
conditions, and limitations under this subchapter. 

 (b)  Requires the executive committee to set the rate of interest charged
on a forgivable loan under this subchapter. 

 (c)  Requires the executive committee to adopt rules necessary to ensure
compliance with the federal Civil Rights Act of 1964 (42 U.S.C. Section
2000a et seq.) concerning nondiscrimination in admissions. 

[Reserves Sections 487.113-487.150 for expansion]

SUBCHAPTER E. HEALTH CAREERS PROMOTION AND EDUCATION PROGRAM

Sec. 487.151.  DEFINITIONS.  Defines "fund," "postsecondary educational
institution," "program," and "qualified area." 
 
 Sec. 487.152.  ADMINISTRATION.  Requires the office to administer or
contract for the  
administration of the program.  Authorizes the office to solicit and accept
gifts, grants, donations, and contributions to support the program. 

Sec. 487.153.  HEALTH CAREERS PROMOTION.  Authorizes the office to
establish a program to work with students, communities, and community-based
organizations to encourage high school students to pursue health care
professional careers.  Requires the office to give priority to working with
communities and students in qualified areas. 

Sec. 487.154.  LOANS.  Sets forth guidelines regarding the awarding of
forgivable loans to students.  

 Sec. 487.155.  STUDENT ELIGIBILITY.  Sets forth requirements for
eligibility for a loan under this subchapter.  
   
Sec. 487.156.  COMMUNITY ELIGIBILITY.  Sets forth requirements for
community sponsorship of a student under this subchapter.  Sets forth
guidelines regarding community sponsorship.  Requires the executive
committee to determine the percentage of educational expenses communities
are required to provide under this section.  Authorizes community financial
support to be satisfied wholly or partly by a grant, a scholarship, or
private foundation support. 

Sec. 487.157.  AMOUNT OF LOAN.  (a) Authorizes the  executive committee to
award a forgivable loan to a student in a certain amount upon certain
conditions.  
 
(b)  Authorizes an eligible student to receive another grant, loan, or
scholarship for which the student is eligible in addition to the receipt of
a forgivable loan, except that the total amount of funds received are
prohibited from exceeding the reasonable needs of the student as determined
by the postsecondary educational institution in which the student is
enrolled. 

Sec. 487.158.  REQUIRED CONTRACT.  Authorizes a student to receive
assistance under this subchapter only if the student signs a contract
agreeing to provide health care services to the sponsoring community on
completion of the academic program and licensure or certification in the
health care profession for which the student is sponsored.  Sets forth
requirements for the contract.   

Sec. 487.159.  LOAN FORGIVENESS. (a) Requires a loan recipient to be
forgiven the principal and interest of one year's loan for each year the
recipient practices as a health care professional providing health care
services in the sponsoring community, but only under certain conditions.   

 (b)  Authorizes the executive committee, if the executive committee finds
that a sponsoring community is not in need of the student's services and
that the community is willing to forgive repayment of the principal balance
and interest of the student's loan, by rule to provide for the principal
balance and interest of the student's loan to be forgiven if the student
provides services in another qualified area in this state. 

Sec. 487.160.  FUND.  Establishes the health careers education fund and
sets forth guidelines regarding the fund. 

Sec. 487.161.  REPORTING; MONITORING.  Sets forth requirements regarding
monitoring of the program and reports on the program.  Requires the
sponsoring community to report to the executive committee the length of
time the student provides health care services in the community in
accordance with the guidelines established by the executive committee.
Requires a postsecondary educational institution to provide to the
executive committee a copy of the academic transcript of each student for
whom the institution has received a release that complies with state and
federal open records laws and that authorizes the provision of the
transcript. 

Sec. 487.162.  PROGRAM PROMOTION.  Requires the office to provide
postsecondary educational institutions and communities in qualified areas
with certain information 

Sec. 487.163.  ADOPTION OF RULES.  (a) Requires the executive committee to
adopt reasonable rules to enforce the requirements, conditions, and
limitations of this subchapter. 

 (b)  Requires the executive committee to set the rate of interest charged
on a forgivable loan under this subchapter. 
 
(c)  Requires the executive committee to adopt rules necessary to ensure
compliance with the federal Civil Rights Act of 1964 (42 U.S.C. Section
2000a et seq.) concerning nondiscrimination in admissions. 

[Reserves Sections 487.164-487.200 for expansion]

SUBCHAPTER F. MEDICALLY UNDERSERVED COMMUNITY-STATE
MATCHING INCENTIVE PROGRAM

Sec. 487.201.  DEFINITIONS.  Defines "medically underserved community,"
"physician," " primary care,"and "start-up money."   

Sec. 487.202.  PROGRAM. (a) Requires the executive committee to establish
and administer a program under this subchapter to increase the number of
physicians providing primary care in medically underserved communities. 

 (b)  Authorizes a medically underserved community to sponsor certain
physicians.  by contributing start-up money for the physician and having
that contribution matched wholly or partly by state money appropriated to
the executive committee for that purpose. 

 (c)  Authorizes a participating medically underserved community to provide
start-up money to an eligible physician over a two-year period. 

 (d)  Prohibits the executive committee from paying more than $25,000 to a
community in a fiscal year unless the executive committee makes a specific
finding of need by the community. 

 (e)  Requires the executive committee to establish priorities so that the
neediest communities eligible for assistance under this subchapter are
assured the receipt of a grant. 

Sec. 487.203.  ELIGIBILITY.  Sets forth eligibility requirements for a
medically underserved community to receive money from the executive
committee. 
 
Sec. 487.204.  RULES.  Requires the executive committee to adopt rules
necessary for the administration of this subchapter, including certain
specific rules.   

[Reserves Sections 487.205-487.250 for expansion]

SUBCHAPTER G. TEXAS HEALTH SERVICE CORPS
PROGRAM FOR MEDICALLY UNDERSERVED AREAS

 Sec. 487.251.  DEFINITIONS.  Defines "medically underserved area" and
"physician." 

Sec. 487.252.  TEXAS HEALTH SERVICE CORPS PROGRAM. Requires the executive
committee to establish a program in the office to assist communities in
recruiting and retaining physicians to practice in medically underserved
areas.  Requires the executive committee by rule to perform certain
functions.   

Sec. 487.253.  ADMINISTRATION. (a) Requires the executive committee to
adopt rules necessary to administer this subchapter, and requires the
office to administer the program in accordance with those rules. 

 (b)  Prohibits the office from spending for the office's administrative
costs in  administering the program more than 10 percent of the amount
appropriated to implement this subchapter. 

Sec. 487.254.  REQUIRED CONTRACT. Authorizes the office to award a stipend
to a physician under this subchapter if the physician enters into a written
contract to provide services in a medically underserved area for at least
one year for each year that the physician receives the stipend.  Sets forth
requirements for such a contract.   

Sec. 487.255.  STIPENDS.  Sets forth guidelines regarding stipends awarded
under this subchapter.  

Sec. 487.256.  FUNDING.  Authorizes the office to seek, receive, and spend
money received through an appropriation, grant, donation, or reimbursement
from any public or private source to implement this subchapter. 

[Reserves Sections 487.257-487.300 for expansion]

SUBCHAPTER H. RURAL HEALTH FACILITY CAPITAL IMPROVEMENT

 Sec. 487.301.  DEFINITIONS.  Defines "public hospital" and "rural county." 

Sec. 487.302.  POWERS OF OFFICE.  Authorizes the office, in administering
this subchapter, to perform certain functions, including adopting rules
necessary to implement the grant, loan, and loan guarantee program. 

Sec. 487.303.  GRANT, LOAN, AND LOAN GUARANTEE PROGRAM.  Authorizes the
office to use money appropriated to the office under Section 403.1065 to
make a grant or low-interest loan to, or guarantee a loan for, a public or
nonprofit hospital located in a rural county.  Authorizes a grant, loan, or
loan guarantee recipient to use the money only for certain purposes. 

Sec. 487.304.  ELIGIBILITY FOR GRANT, LOAN, OR LOAN GUARANTEE; INTEREST
RATE.  Requires the office to adopt rules that establish eligibility
criteria for receiving a grant, loan, or loan guarantee under this
subchapter.  Sets forth requirements for the rules.  

SECTION 2.  Transfers Sections 2306.098, 2306.099, and 2306.100, Government
Code, to Chapter 487, Government Code, redesignates them as Subchapter I,
Chapter 487, Government Code, and amends them as follows: 

SUBCHAPTER I.  COMMUNITY DEVELOPMENT BLOCK
GRANT NONENTITLEMENT PROGRAM

Sec. 487.351.  Redesignated from original Section 2306.098.  Requires the
office, rather than the department, under the Omnibus Budget Reconciliation
Act of 1981 (Pub.L. No. 97-35) and 24 CFR, Part 570, Subpart I, to
administer the state's allocation of federal funds provided under the
community development block grant nonentitlement program authorized by
Title I of the Housing and Community Development Act of 1974 (42 U.S.C.
Section 5301 et seq.). Makes a conforming change.   
 
Sec. 487.352.  Redesignated from original Section 2306.099.  Authorizes the
office to enter into an interagency agreement with the Department of
Agriculture (rather than the Texas Department of Commerce) to reimburse the
Department of Agriculture for providing on behalf of the office marketing,
underwriting, and any other services on the portion of the federal
community development block grant funds allocated by the office for
economic development  activities.  Makes conforming changes.  Requires the
office to allocate not more than five percent of the funds allocated to the
Department of Agriculture under this section to be used for county economic
and management development.   
 
Sec. 487.353.  Redesignated from original Section 2306.100. Requires the
committee to meet at least twice annually at the executive director's call.
Makes conforming changes.   
 
SECTION 3.  Amends Section 38.011(j), Education Code, as added by Chapter
1418, Acts of the 76th Legislature, Regular Session, 1999, to provide that
the requirements prescribed by Subsection (i) apply to a school-based
health center serving an area that has been designated under state or
federal law as a medically underserved community by the Office of Rural
Community Affairs (rather than the Center for Rural Health Initiatives). 

SECTION 4.  Amends Section 51.918(a), Education Code, to require the Office
of Rural Community Affairs (rather than the Center for Rural Health
Initiatives in the Texas Department of Health) to cooperate to improve and
expand programs for rural areas. 

SECTION 5.  Reenacts and amends Section 51.918(c), Education Code, as
amended by Chapters 349 and 965, Acts of the 74th Legislature, Regular
Session, 1995, to require the Office of Rural Community Affairs to develop
relief service programs for rural physicians and allied health personnel to
facilitate ready access to continuing medical education as well as (rather
than or) to provide practice coverage for purposes other than continuing
medical education. 

SECTION 6.  Amends Section 58.007(b)(1), Education Code, to make a
conforming change.   

SECTION 7.  Amends Section 403.1065(c), Government Code, to authorize the
available earnings of the fund to be appropriated to the Office of Rural
Community Affairs for the purposes of Chapter 487H (rather than Chapter
106G), Health and Safety Code. 
 
SECTION 8.  Amends Section 86.011, Health and Safety Code, to make
conforming changes.   
 
SECTION 9.  Amends Sections 204.104(b) and (c), Occupations Code, to make
conforming changes.   
 
SECTION 10.  Repealer:  Chapter 106 (Center for Rural Health Initiatives),
Health and Safety Code. 

SECTION 11. (a) Requires the governor, the lieutenant governor, and the
speaker of the house of representatives, not later than November 1, 2001,
to appoint the initial members of the executive committee of the Office of
Rural Community Affairs in accordance with Chapter 487, Government Code, as
added by this Act.  Requires each appointing authority to appoint one
member for a term expiring February 1, 2003, one member for a term expiring
February 1, 2005, and one member for a term expiring February 1, 2007.
Prohibits the executive committee from taking action until a majority of
the members have taken office. 
 
(b)  Requires the Office of Rural Community Affairs to employ an executive
director in accordance with Chapter 487, Government Code, as added by this
Act, not later than December 1, 2001. 
  
(c)  Requires the executive committee, not later than the 60th day after
the date of the first meeting of the executive committee of the Office of
Rural Community Affairs, to select a presiding officer. 

SECTION 12. (a) Provides that, on the date by which a majority of the
members of the executive committee of the Office of Rural Community Affairs
have taken office, the Center for Rural Health Initiatives is abolished and
all powers, duties, obligations, rights, contracts, leases, records,
property,  and unspent and unobligated appropriations and other funds of
the Center for Rural Health Initiatives are transferred to the Office of
Rural Community Affairs. 
 
(b)  Provides that the abolishment of the Center for Rural Health
Initiatives does not affect the validity of a right, privilege, or
obligation accrued, a contract or acquisition made, any liability incurred,
a permit or license issued, any penalty, forfeiture, or punishment
assessed, a rule adopted, a proceeding, investigation, or remedy begun, a
decision made, or other action taken by or in connection with the Center
for Rural Health Initiatives. 
 
(c)  Provides that all rules, policies, procedures, and decisions of the
Center for Rural Health Initiatives are continued in effect as rules,
policies, procedures, and decisions of the Office of Rural Community
Affairs until superseded by a rule or other appropriate action of the
Office of Rural Community Affairs. 
 
(d)  Provides that any action or proceeding before the Center for Rural
Health Initiatives is transferred without change in status to the Office of
Rural Community Affairs, and the Office of Rural Community Affairs assumes,
without a change in status, the position of the Center for Rural Health
Initiatives in any action or proceeding to which the Center for Rural
Health Initiatives is a party. 
 
(e)  Provides that the Office of Rural Community Affairs is authorized to
employ the same number of full-time equivalent employees as the Center for
Rural Health Initiatives. 

(f)  Provides that a fund or account administered by the Center for Rural
Health Initiatives is not considered to be abolished and re-created by this
Act but is considered to be transferred to the Office of Rural Community
Affairs. 
 
(g)  Requires the Center for Rural Health Initiatives, notwithstanding the
changes in law made by this Act, until the date the Center for Rural Health
Initiatives is abolished as provided by this Act, to continue to exercise
the powers and duties assigned to the Center for Rural Health Initiatives
under the law as it existed immediately before the effective date of this
Act or as modified by another Act of the 77th Legislature, Regular Session,
2001, that becomes law, and the former law is continued in effect for that
purpose. 
 
SECTION 13. (a) Provides that, on the date by which a majority of the
members of the executive committee of the Office of Rural Community Affairs
have taken office, all powers, duties, obligations, rights, contracts,
leases, records, personnel, property, and unspent and unobligated
appropriations and other funds of the Texas Department of Housing and
Community Affairs related to the federal community development block grant
nonentitlement program and to the community affairs and community
development program that provides information, advice, and training to
officials of communities of less than 10,000 people, including
appropriations relating to the indirect costs and general administrative
support of those programs, are transferred to the Office of Rural Community
Affairs. 
 
(b)  Provides that the transfer of the federal community development block
grant nonentitlement program to the Office of Rural Community Affairs does
not affect the validity of a right, privilege, or obligation accrued, a
contract or acquisition made, any liability incurred, a permit or license
issued, any penalty, forfeiture, or punishment assessed, a rule adopted, a
proceeding, investigation, or remedy begun, a decision made, or other
action taken by or in connection with the program by the Texas Department
of Housing and Community Affairs. 
 
(c)  Provides that all rules, policies, procedures, and decisions of the
Texas Department of Housing and Community Affairs related to the federal
community development block grant nonentitlement program are continued in
effect as rules, policies, procedures, and decisions of the Office of Rural
Community Affairs until superseded by a rule or other appropriate action of
the Office of Rural Community Affairs. 
 
(d)  Provides that any action or proceeding before the Texas Department of
Housing and Community Affairs related to the federal community development
block grant nonentitlement program is transferred without change in status
to the Office of Rural Community Affairs, and the Office of Rural Community
Affairs assumes, without a change in status, the position of the Texas
Department of Housing and Community Affairs in any action or proceeding
related to the program to which the Texas Department of Housing and
Community Affairs is a party. 
 
(e)  Provides that a reference to the Texas Department of Economic
Development in a rule of the Texas Department of Housing and Community
Affairs relating to the administration of the Texas Capital Fund means the
Department of Agriculture. 
 
(f)  Provides that a fund or account administered by the Texas Department
of Economic Development relating to the federal community development block
grant nonentitlement program is not considered to be abolished and
re-created by this Act but is considered to be transferred to the Office of
Rural Community Affairs. 
  
(g)  Requires the Texas Department of Housing and Community Affairs and the
Texas Department of Economic Development, notwithstanding the changes in
law made by this Act, until the date the federal community development
block grant nonentitlement program is transferred to the Office of Rural
Community Affairs as provided by this Act, to continue to exercise the
powers and duties assigned to the Texas Department of Housing and Community
Affairs and the Texas Department of Economic Development, respectively,
under the law as it existed immediately before the effective date of this
Act or as modified by another Act of the 77th Legislature, Regular Session,
2001, that becomes law, and provides that the former law is continued in
effect for that purpose. 
 
SECTION 14.  Requires the Office of Rural Community Affairs, not later than
September 1, 2002, to evaluate the cost-effectiveness and other benefits of
moving at least one-half of its operations to a location outside Travis
County, Texas.  Requires the office, if the evaluation indicates that the
move would be beneficial and the Legislative Budget Office concurs, to
undertake the move. 
 
SECTION 15.  Authorizes the executive director of the Office of Rural
Community Affairs to change the duties of any employee who is transferred
to the Office of Rural Community Affairs. 
 
SECTION 16.  Requires the Legislative Budget Board to resolve any disputes
about which obligations, rights, contracts, leases, records, personnel,
property, and unspent and unobligated appropriations or other funds are
entitled to be transferred to the Office of Rural Community Affairs. 
 
SECTION 17.  Requires the Office of Rural Community Affairs, not later than
December 1, 2002, to perform certain functions.   
  
SECTION 18. (a) Provides that, except as provided by Subsection (b), this
Act takes effect September 1, 2001. 

(b)  Provides that Section 487.023, Government Code, as added by this Act,
takes effect September 1, 2002.