77R9939 MCK-D                           
         By Chisum, Hawley, Walker,                               H.B. No. 7
            Turner of Coleman, Cook, et al.
         Substitute the following for H.B. No. 7:
         By Howard                                            C.S.H.B. No. 7
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to creating the Office of Rural Community Affairs.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Subtitle F, Title 4, Government Code, is amended
 1-5     by adding Chapter 487 to read as follows:
 1-6               CHAPTER 487.  OFFICE OF RURAL COMMUNITY AFFAIRS
 1-7                      SUBCHAPTER A.  GENERAL PROVISIONS
 1-8           Sec. 487.001.  DEFINITIONS. In this chapter:
 1-9                 (1)  "Executive committee" means the executive
1-10     committee of the Office of Rural Community Affairs.
1-11                 (2)  "Office" means the Office of Rural Community
1-12     Affairs.
1-13           Sec. 487.002.  SUNSET PROVISION. The Office of Rural
1-14     Community Affairs is subject to Chapter 325 (Texas Sunset Act).
1-15     Unless continued in existence as provided by that chapter, the
1-16     office is abolished and this chapter expires September 1, 2007.
1-17              (Sections 487.003-487.020 reserved for expansion
1-18                  SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
1-19           Sec. 487.021.  EXECUTIVE COMMITTEE. (a)  The executive
1-20     committee is the governing body of the office.
1-21           (b)  The executive committee is composed of the following
1-22     nine members:
1-23                 (1)  three members appointed by the governor;
1-24                 (2)  three members appointed by the lieutenant
 2-1     governor; and
 2-2                 (3)  three members appointed by the speaker of the
 2-3     house of representatives.
 2-4           (c)  The governor, the lieutenant governor, and the speaker
 2-5     of the house of representatives shall each appoint at least two
 2-6     members who possess a strong understanding of and commitment to
 2-7     rural interests based on the individual's personal history,
 2-8     including residency, occupation, and business or civic activities.
 2-9           (d)  Appointments to the executive committee shall be made
2-10     without regard to the race, color, disability, sex, religion, age,
2-11     or national origin of the appointees.
2-12           (e)  The members of the executive committee serve for
2-13     staggered six-year terms, with the terms of three members expiring
2-14     February 1 of each odd-numbered year.
2-15           (f)  Executive committee members receive no compensation but
2-16     are entitled to reimbursement of actual and necessary expenses
2-17     incurred in the performance of their duties.
2-18           (g)  The members of the executive committee annually shall
2-19     elect a presiding officer from among the members of the executive
2-20     committee.
2-21           Sec. 487.022.  CONFLICTS OF INTEREST. (a)  In this section,
2-22     "Texas trade association" means a cooperative and voluntarily
2-23     joined association of business or professional competitors in this
2-24     state designed to assist its members and its industry or profession
2-25     in dealing with mutual business or professional problems and in
2-26     promoting their common interest.
2-27           (b)  A person may not be a member of the executive committee
 3-1     and may not be an office employee employed in a "bona fide
 3-2     executive, administrative, or professional capacity," as that
 3-3     phrase is used for purposes of establishing an exemption to the
 3-4     overtime provisions of the federal Fair Labor Standards Act of 1938
 3-5     (29 U.S.C. Section 201 et seq.) and its subsequent amendments, if:
 3-6                 (1)  the person is an officer, employee, or paid
 3-7     consultant of a Texas trade association in the field of rural
 3-8     affairs; or
 3-9                 (2)  the person's spouse is an officer, manager, or
3-10     paid consultant of a Texas trade association in the field of rural
3-11     affairs.
3-12           (c)  A person may not be a member of the executive committee
3-13     or act as the general counsel to the executive committee or the
3-14     office if the person is required to register as a lobbyist under
3-15     Chapter 305 because of the person's activities for compensation on
3-16     behalf of a profession related to the operation of the office.
3-17           Sec. 487.023.  TRAINING FOR MEMBERS OF EXECUTIVE COMMITTEE.
3-18     (a)  A person who is appointed to and qualifies for office as a
3-19     member of the executive committee may not vote, deliberate, or be
3-20     counted as a member in attendance at a meeting of the executive
3-21     committee until the person completes a training program that
3-22     complies with this section.
3-23           (b)  The training program must provide the person with
3-24     information regarding:
3-25                 (1)  the legislation that created the office and the
3-26     executive committee;
3-27                 (2)  the programs operated by the office;
 4-1                 (3)  the role and functions of the office;
 4-2                 (4)  the rules of the office, with an emphasis on any
 4-3     rules that relate to disciplinary and investigatory authority;
 4-4                 (5)  the current budget for the office;
 4-5                 (6)  the results of the most recent formal audit of the
 4-6     office;
 4-7                 (7)  the requirements of:
 4-8                       (A)  the open meetings law, Chapter 551;
 4-9                       (B)  the public information law, Chapter 552;
4-10                       (C)  the administrative procedure law, Chapter
4-11     2001; and
4-12                       (D)  other laws relating to public officials,
4-13     including conflict-of-interest laws; and
4-14                 (8)  any applicable ethics policies adopted by the
4-15     executive committee or the Texas Ethics Commission.
4-16           (c)  A person appointed to the executive committee is
4-17     entitled to reimbursement, as provided by general law and the
4-18     General Appropriations Act, for the travel expenses incurred in
4-19     attending the training program regardless of whether the attendance
4-20     at the program occurs before or after the person qualifies for
4-21     office.
4-22           Sec. 487.024.  REMOVAL. (a)  It is a ground for removal from
4-23     the executive committee that a member:
4-24                 (1)  does not have at the time of taking office the
4-25     qualifications required by Section 487.021;
4-26                 (2)  does not maintain during service on the executive
4-27     committee the qualifications required by Section 487.021;
 5-1                 (3)  is ineligible for membership under Section
 5-2     487.022;
 5-3                 (4)  cannot, because of illness or disability,
 5-4     discharge the member's duties for a substantial part of the
 5-5     member's term; or
 5-6                 (5)  is absent from more than half of the regularly
 5-7     scheduled executive committee meetings that the member is eligible
 5-8     to attend during a calendar year without an excuse approved by a
 5-9     majority vote of the executive committee.
5-10           (b)  The validity of an action of the executive committee is
5-11     not affected by the fact that it is taken when a ground for removal
5-12     of an executive committee member exists.
5-13           (c)  If the executive director has knowledge that a potential
5-14     ground for removal exists, the executive director shall notify the
5-15     presiding officer of the executive committee of the potential
5-16     ground.  The presiding officer shall then notify the governor and
5-17     the attorney general that a potential ground for removal exists. If
5-18     the potential ground for removal involves the presiding officer,
5-19     the executive director shall notify the next highest ranking
5-20     officer of the executive committee, who shall then notify the
5-21     governor and the attorney general that a potential ground for
5-22     removal exists.
5-23           Sec. 487.025.  DIVISION OF RESPONSIBILITY. The executive
5-24     committee shall develop and implement policies that clearly
5-25     separate the policy-making responsibilities of the executive
5-26     committee and the management responsibilities of the executive
5-27     director and staff of the office.
 6-1           Sec. 487.026.  EXECUTIVE DIRECTOR. (a)  The executive
 6-2     committee may hire an executive director to serve as the chief
 6-3     executive officer of the office and to perform the administrative
 6-4     duties of the office.
 6-5           (b)  The executive director serves at the will of the
 6-6     executive committee.
 6-7           (c)  The executive director may hire staff within guidelines
 6-8     established by the executive committee.
 6-9           Sec. 487.027.  PUBLIC HEARINGS. The executive committee shall
6-10     develop and implement policies that provide the public with a
6-11     reasonable opportunity to appear before the executive committee and
6-12     to speak on any issue under the jurisdiction of the office.
6-13           Sec. 487.028.  EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.
6-14     (a)  The executive director or the executive director's designee
6-15     shall prepare and maintain a written policy statement that
6-16     implements a program of equal employment opportunity to ensure that
6-17     all personnel decisions are made without regard to race, color,
6-18     disability, sex, religion, age, or national origin.
6-19           (b)  The policy statement must include:
6-20                 (1)  personnel policies, including policies relating to
6-21     recruitment, evaluation, selection, training, and promotion of
6-22     personnel, that show the intent of the office to avoid the unlawful
6-23     employment practices described by Chapter 21, Labor Code; and
6-24                 (2)  an analysis of the extent to which the composition
6-25     of the office's personnel is in accordance with state and federal
6-26     law and a description of reasonable methods to achieve compliance
6-27     with state and federal law.
 7-1           (c)  The policy statement must be:
 7-2                 (1)  updated annually;
 7-3                 (2)  reviewed by the state Commission on Human Rights
 7-4     for compliance with Subsection (b)(1); and
 7-5                 (3)  filed with the governor's office.
 7-6           Sec. 487.029.  STANDARDS OF CONDUCT. The executive director
 7-7     or the executive director's designee shall provide to members of
 7-8     the executive committee and to agency employees, as often as
 7-9     necessary, information regarding the requirements for office or
7-10     employment under this chapter, including information regarding a
7-11     person's responsibilities under applicable laws relating to
7-12     standards of conduct for state officers or employees.
7-13           Sec. 487.030.  COMPLAINTS. (a)  The office shall maintain a
7-14     file on each written complaint filed with the office. The file must
7-15     include:
7-16                 (1)  the name of the person who filed the complaint;
7-17                 (2)  the date the complaint is received by the office;
7-18                 (3)  the subject matter of the complaint;
7-19                 (4)  the name of each person contacted in relation to
7-20     the complaint;
7-21                 (5)  a summary of the results of the review or
7-22     investigation of the complaint; and
7-23                 (6)  an explanation of the reason the file was closed,
7-24     if the office closed the file without taking action other than to
7-25     investigate the complaint.
7-26           (b)  The office shall provide to the person filing the
7-27     complaint and to each person who is a subject of the complaint a
 8-1     copy of the office's policies and procedures relating to complaint
 8-2     investigation and resolution.
 8-3           (c)  The office, at least quarterly until final disposition
 8-4     of the complaint, shall notify the person filing the complaint and
 8-5     each person who is a subject of the complaint of the status of the
 8-6     investigation unless the notice would jeopardize an undercover
 8-7     investigation.
 8-8              (Sections 487.031-487.050 reserved for expansion
 8-9                  SUBCHAPTER C.  GENERAL POWERS AND DUTIES
8-10           Sec. 487.051.  POWERS AND DUTIES.  The office shall:
8-11                 (1)  develop a rural policy for the state in
8-12     consultation with local leaders representing all facets of rural
8-13     community life, academic and industry experts, and state elected
8-14     and appointed officials with interests in rural communities;
8-15                 (2)  work with other state agencies and officials to
8-16     improve the results and the cost-effectiveness of state programs
8-17     affecting rural communities through coordination of efforts;
8-18                 (3)  develop programs to improve the leadership
8-19     capacity of rural community leaders;
8-20                 (4)  monitor developments that have a substantial
8-21     effect on rural Texas communities, especially actions of state
8-22     government, and compile an annual report describing and evaluating
8-23     the condition of rural communities;
8-24                 (5)  administer the federal community development block
8-25     grant nonentitlement program;
8-26                 (6)  administer programs supporting rural health care
8-27     as provided by Subchapters D-H; and
 9-1                 (7)  perform research to determine the most beneficial
 9-2     and cost-effective ways to improve the welfare of rural
 9-3     communities.
 9-4           Sec. 487.052.  RULES. The executive committee may adopt rules
 9-5     as necessary to implement this chapter.
 9-6           Sec. 487.053.  GIFTS AND GRANTS. (a)  The office may accept
 9-7     gifts, grants, and donations from any organization for the purpose
 9-8     of funding any activity under this chapter, and the office shall
 9-9     actively seek funding from appropriate nonprofit foundations.
9-10           (b)  All gifts, grants, and donations must be accepted in an
9-11     open meeting by a majority of the voting members of the executive
9-12     committee and reported in the public record of the meeting with the
9-13     name of the donor and purpose of the gift, grant, or donation.
9-14           Sec. 487.054.  ANNUAL MEETING ON RURAL ISSUES. (a)  At least
9-15     once each year, the following agency heads shall meet to discuss
9-16     rural issues:
9-17                 (1)  the commissioner of agriculture;
9-18                 (2)  the executive director of the Public Utility
9-19     Commission of Texas;
9-20                 (3)  the director of the Texas Agricultural Extension
9-21     Service;
9-22                 (4)  the presiding officer of the Telecommunications
9-23     Infrastructure Fund Board;
9-24                 (5)  the executive director of the Texas Department of
9-25     Housing and Community Affairs;
9-26                 (6)  the commissioner of health;
9-27                 (7)  the executive administrator of the Texas Water
 10-1    Development Board;
 10-2                (8)  the executive director of the Parks and Wildlife
 10-3    Department;
 10-4                (9)  the commissioner of human services;
 10-5                (10)  the commissioner of higher education;
 10-6                (11)  the comptroller; and
 10-7                (12)  the executive director of the Texas Department of
 10-8    Transportation.
 10-9          (b)  The executive committee shall call the annual meeting.
10-10    The executive committee shall set the time and date of the meeting
10-11    after consulting with the agency heads listed in Subsection (a).
10-12          Sec. 487.055.  ADVISORY COMMITTEES. The executive committee
10-13    may appoint advisory committees as necessary to assist the
10-14    executive committee in performing its duties.  An advisory
10-15    committee may be composed of private citizens and representatives
10-16    from state and local governmental entities.  A state or local
10-17    governmental entity shall appoint a representative to an advisory
10-18    committee at the request of the executive committee.  Chapter 2110
10-19    does not apply to an advisory committee created under this section.
10-20          Sec. 487.056.  REPORT TO LEGISLATURE. Not later than January
10-21    1 of each odd-numbered year, the office shall submit a biennial
10-22    report to the legislature regarding the activities of the office
10-23    and any findings and recommendations relating to rural issues.
10-24          Sec. 487.057.  RURAL HEALTH WORK PLAN. (a)  The office shall
10-25    develop, implement, and update a rural health work plan.
10-26          (b)  The office shall submit the rural health work plan to
10-27    the executive committee for approval.  The executive committee
 11-1    shall approve the rural health work plan not later than August 1 of
 11-2    each odd-numbered year.
 11-3          (c)  The office shall work with health care providers, rural
 11-4    communities, universities, and all health and human service related
 11-5    state agencies to develop the rural health work plan.  The office
 11-6    shall solicit public comment on the rural health work plan.
 11-7          (d)  The rural health work plan must identify:
 11-8                (1)  the mission, goals, and objectives of how the
 11-9    office will work to assist rural communities in meeting rural
11-10    health care needs;
11-11                (2)  ways for the state to effectively and creatively
11-12    address the unmet health care needs of rural communities;
11-13                (3)  ways to coordinate the administration and delivery
11-14    of rural health care service with federal, state, and local public
11-15    and private programs that provide similar services; and
11-16                (4)  the office's priorities to accomplish the
11-17    objectives of the plan.
11-18          Sec. 487.058.  CONTRACT FOR ADMINISTRATIVE SERVICES. The
11-19    office shall enter into an interagency contract with another state
11-20    agency to provide routine administrative services for the office.
11-21             (Sections 487.059-487.100 reserved for expansion
11-22                  SUBCHAPTER D. OUTSTANDING RURAL SCHOLAR
11-23            RECOGNITION AND LOAN PROGRAM FOR RURAL HEALTH CARE
11-24          Sec. 487.101.  DEFINITIONS. In this subchapter:
11-25                (1)  "Selection committee" means the Outstanding Rural
11-26    Scholar Selection Committee.
11-27                (2)  "Fund" means the outstanding rural scholar fund.
 12-1                (3)  "Postsecondary educational institution" means:
 12-2                      (A)  an institution of higher education, as
 12-3    defined by Section 61.003, Education Code;
 12-4                      (B)  a nonprofit, independent institution
 12-5    approved under Section 61.222, Education Code; or
 12-6                      (C)  a nonprofit, health-related school or
 12-7    program accredited by the Southern Association of Colleges and
 12-8    Schools, the Liaison Committee on Medical Education, the American
 12-9    Osteopathic Association, the Board of Nurse Examiners, the Board of
12-10    Vocational Nurse Examiners, or, in the case of allied health, an
12-11    accrediting body recognized by the United States Department of
12-12    Education.
12-13                (4)  "Program" means the outstanding rural scholar
12-14    recognition and loan program for rural health care.
12-15                (5)  "Rural community" means a municipality in a
12-16    nonmetropolitan county as defined by the United States Census
12-17    Bureau in its most recent census.
12-18          Sec. 487.102.  ADMINISTRATION. The office shall administer or
12-19    contract for the administration of the program.
12-20          Sec. 487.103.  SELECTION COMMITTEE. (a)  The selection
12-21    committee shall advise the executive committee on the progress of
12-22    the program.
12-23          (b)  The selection committee is composed of 12 members
12-24    appointed by the executive committee.
12-25          (c)  The executive committee shall consider geographical
12-26    representation in making appointments to the selection committee.
12-27          (d)  Selection committee members serve for staggered
 13-1    three-year terms, with the terms of four members expiring August 31
 13-2    of each year. A member is eligible for reappointment to consecutive
 13-3    terms.
 13-4          (e)  A member of the selection committee is not entitled to
 13-5    reimbursement for expenses incurred in performing duties under this
 13-6    subchapter.
 13-7          Sec. 487.104.  SELECTION OF OUTSTANDING RURAL SCHOLARS. (a)
 13-8    The selection committee shall select outstanding rural scholars
 13-9    through a statewide competition.
13-10          (b)  The selection committee shall make selections based on
13-11    criteria approved by the executive committee and adopted as a rule
13-12    of the office.
13-13          (c)  The selection committee may not use the applicant's
13-14    performance on a standardized test as the sole criterion to
13-15    determine the applicant's selection as an outstanding rural
13-16    scholar.
13-17          (d)  The selection committee shall recommend to the executive
13-18    committee guidelines to be used by rural communities in the
13-19    selection of students for nomination and sponsorship as outstanding
13-20    rural scholars.
13-21          (e)  An outstanding rural scholar receives public recognition
13-22    and a certificate of award and is eligible for a forgivable loan
13-23    under this subchapter.
13-24          Sec. 487.105.  ELIGIBILITY FOR OUTSTANDING RURAL SCHOLAR
13-25    COMPETITION.  (a)  To be eligible to participate in the competition
13-26    under Section 487.104, a high school student or an undergraduate
13-27    student at a postsecondary educational institution must:
 14-1                (1)  be nominated and sponsored by a rural community,
 14-2    which sponsorship must include financial support;
 14-3                (2)  be a Texas resident under Subchapter B, Chapter
 14-4    54, Education Code;
 14-5                (3)  if the person is a high school student, be in the
 14-6    upper 25 percent of the student's high school class, if the class
 14-7    contains 48 or more students, and intend to enter a postsecondary
 14-8    educational institution; and
 14-9                (4)  if the person is an undergraduate student, be in
14-10    the upper 25 percent of the student's class or have a cumulative
14-11    grade average that is equal to or greater than the equivalent of a
14-12    3.0 on a 4.0 scale and be enrolled in a postsecondary educational
14-13    institution.
14-14          (b)  If a person is neither a high school student nor an
14-15    undergraduate student, the person must be eligible for
14-16    participation in the competition under rules adopted by the office.
14-17          Sec. 487.106.  ELIGIBILITY FOR LOANS; RURAL COMMUNITY
14-18    FINANCIAL SUPPORT.  (a)  For an outstanding rural scholar to be
14-19    eligible for a forgivable loan, community sponsorship must include
14-20    financial support.
14-21          (b)  Community financial support consists of a commitment to
14-22    fund 50 percent of the costs of a scholar's tuition, fees,
14-23    educational materials, and living expenses.
14-24          (c)  The financial support under this section may be
14-25    satisfied wholly or partly by a grant, a scholarship, or private
14-26    foundation support.
14-27          (d)  Evidence of the financial support must be submitted with
 15-1    a community's nomination.
 15-2          Sec. 487.107.  AWARDING OF LOANS.  (a)  The selection
 15-3    committee shall recommend to the executive committee guidelines for
 15-4    the awarding of forgivable loans to outstanding rural scholars.
 15-5          (b)  The executive committee, acting on the advice of the
 15-6    selection committee, shall award forgivable loans to outstanding
 15-7    rural scholars based on the availability of money in the fund.
 15-8          (c)  If in any year the fund is inadequate to provide loans
 15-9    to all eligible applicants, the executive committee shall award
15-10    forgivable loans on a priority basis according to the applicants'
15-11    academic performance, test scores, and other criteria of
15-12    eligibility.
15-13          Sec. 487.108.  AMOUNT OF LOAN.  (a)  On confirmation of an
15-14    outstanding rural scholar's admission to a postsecondary
15-15    educational institution, or on receipt of an enrollment report of
15-16    the scholar at a postsecondary educational institution, and a
15-17    certification of the amount of financial support needed, the
15-18    selection committee annually shall recommend to the executive
15-19    committee that the committee award a forgivable loan to the scholar
15-20    in the amount of 50 percent of the cost of the scholar's tuition,
15-21    fees, educational materials, and living expenses.
15-22          (b)  An outstanding rural scholar may receive another grant,
15-23    loan, or scholarship for which the scholar is eligible in addition
15-24    to the receipt of a forgivable loan, except that the total amount
15-25    of funds received may not exceed the reasonable needs of the
15-26    scholar.
15-27          Sec. 487.109.  LOAN FORGIVENESS.  (a)  The principal balance
 16-1    and interest for one year of a forgivable loan awarded to an
 16-2    outstanding rural scholar must be forgiven for each year the
 16-3    scholar practices as a health care professional in the sponsoring
 16-4    community.
 16-5          (b)  The sponsoring community shall report to the executive
 16-6    committee the length of time the scholar practices as a health care
 16-7    professional in the community.
 16-8          (c)  If the executive committee finds that a sponsoring
 16-9    community is not in need of the scholar's services and that the
16-10    community is willing to forgive repayment of the principal balance
16-11    and interest of the scholar's loan, the executive committee by rule
16-12    may provide for the principal balance and interest of one year of
16-13    the scholar's loan to be forgiven for each year the scholar
16-14    practices in another rural community in this state.
16-15          (d)  Any amount of loan principal or interest that is not
16-16    forgiven under this section shall be repaid to the office with
16-17    reasonable collection fees in a timely manner as provided by
16-18    executive committee rule.
16-19          Sec. 487.110.  FUND.  (a)  The outstanding rural scholar fund
16-20    is in the state treasury.
16-21          (b)  The fund consists of legislative appropriations, gifts,
16-22    grants, donations, the market value of in-kind contributions, and
16-23    principal and interest payments on forgivable loans deposited to
16-24    the credit of the fund by the office.
16-25          (c)  The office shall administer the fund.
16-26          (d)  The office shall allocate the fund, as available, for
16-27    forgivable loans  under this subchapter.
 17-1          (e)  The office shall deposit any principal and interest
 17-2    payments on forgivable loans to the credit of the fund.
 17-3          Sec. 487.111.  POSTSECONDARY EDUCATIONAL INSTITUTIONS;
 17-4    MONITORING.  (a)  A postsecondary educational institution shall
 17-5    provide to the selection committee a copy of the academic
 17-6    transcript of each rural scholar for whom the institution has
 17-7    received a release that complies with state and federal open
 17-8    records laws and authorizes the provision of a transcript.
 17-9          (b)  The office shall require reports from students and
17-10    postsecondary educational institutions as needed to monitor the
17-11    program.  After receiving any necessary releases as a condition of
17-12    providing assistance, the office shall distribute reports relating
17-13    to the progress of an outstanding rural scholar to the community
17-14    sponsoring the scholar.
17-15          Sec. 487.112.  ADOPTION AND DISTRIBUTION OF RULES.  (a)  The
17-16    executive committee shall adopt reasonable rules to enforce the
17-17    requirements, conditions, and limitations under this subchapter.
17-18          (b)  The executive committee shall set the rate of interest
17-19    charged on a forgivable loan under this subchapter.
17-20          (c)  The executive committee shall adopt rules necessary to
17-21    ensure compliance with the federal Civil Rights Act of 1964 (42
17-22    U.S.C. Section 2000a et seq.) concerning nondiscrimination in
17-23    admissions.
17-24             (Sections 487.113-487.150 reserved for expansion
17-25       SUBCHAPTER E. HEALTH CAREERS PROMOTION AND EDUCATION PROGRAM
17-26          Sec. 487.151.  DEFINITIONS.  In this subchapter:
17-27                (1)  "Fund" means the health careers education fund.
 18-1                (2)  "Postsecondary educational institution" means:
 18-2                      (A)  an institution of higher education, as
 18-3    defined by Section 61.003, Education Code;
 18-4                      (B)  a nonprofit, independent institution
 18-5    approved under Section 61.222, Education Code; or
 18-6                      (C)  a nonprofit, health-related school or
 18-7    program accredited by the Southern Association of Colleges and
 18-8    Schools, the Liaison Committee on Medical Education, the American
 18-9    Osteopathic Association, the Board of Nurse Examiners, the Board of
18-10    Vocational Nurse Examiners, or, in the case of allied health, an
18-11    accrediting body recognized by the United States Department of
18-12    Education.
18-13                (3)  "Program" means the health careers promotion and
18-14    education program.
18-15                (4)  "Qualified area" means an area qualifying under
18-16    the National Health Services Corps Community Scholarship Program or
18-17    an area with similar characteristics as identified by the office.
18-18          Sec. 487.152.  ADMINISTRATION.  (a)  The office shall
18-19    administer or contract for the administration of the program.
18-20          (b)  The office may solicit and accept gifts, grants,
18-21    donations, and contributions to support the program.
18-22          Sec. 487.153.  HEALTH CAREERS PROMOTION.  The office may
18-23    establish a program to work with students, communities, and
18-24    community-based organizations to encourage high school students to
18-25    pursue health care professional careers. The office shall give
18-26    priority to working with communities and students in qualified
18-27    areas.
 19-1          Sec. 487.154.  LOANS.  (a)  The executive committee may award
 19-2    forgivable educational loans to eligible students under this
 19-3    subchapter.
 19-4          (b)  The executive committee may award forgivable loans to
 19-5    eligible students based on the availability of money in the fund.
 19-6          (c)  If in any year the fund is inadequate to provide loans
 19-7    to all eligible students, the executive committee may award
 19-8    forgivable loans on a priority basis according to the students'
 19-9    academic performance, test scores, and other criteria of
19-10    eligibility.
19-11          Sec. 487.155.  STUDENT ELIGIBILITY. (a)  To be eligible to
19-12    receive a loan under this subchapter, a student must:
19-13                (1)  be sponsored by an eligible community;
19-14                (2)  at the time of the application for the loan, be
19-15    enrolled in high school or enrolled or accepted for enrollment in a
19-16    postsecondary educational institution in this state;
19-17                (3)  meet academic requirements as established by the
19-18    executive committee;
19-19                (4)  plan to complete a health care professional degree
19-20    or certificate program;
19-21                (5)  plan to practice as a health care professional in
19-22    a qualified area of the state; and
19-23                (6)  meet other requirements as established by the
19-24    executive committee.
19-25          (b)  Other requirements for eligibility for a loan under this
19-26    subchapter must include:
19-27                (1)  one or more interviews with the student; and
 20-1                (2)  a statement written by the student of the
 20-2    student's reasons for:
 20-3                      (A)  entering the health care profession; and
 20-4                      (B)  wanting to provide health care services to a
 20-5    qualified area in this state.
 20-6          Sec. 487.156.  COMMUNITY ELIGIBILITY. (a)  To be eligible to
 20-7    sponsor a student under this subchapter, a community must:
 20-8                (1)  be located in a qualified area in this state; and
 20-9                (2)  provide evidence of community sponsorship of the
20-10    student.
20-11          (b)  Community sponsorship consists of:
20-12                (1)  a commitment to pay for a percentage of the
20-13    student's postsecondary educational expenses, including tuition,
20-14    fees, educational materials, and living expenses; and
20-15                (2)  a commitment to employ the student on a full-time
20-16    basis as a health care professional on the student's completion of
20-17    the academic program and licensure or certification in the health
20-18    care profession for which the student is sponsored.
20-19          (c)  The executive committee shall determine the percentage
20-20    of educational expenses communities are required to provide under
20-21    this section.
20-22          (d)  Community financial support may be satisfied wholly or
20-23    partly by a grant, a scholarship, or private foundation support.
20-24          Sec. 487.157.  AMOUNT OF LOAN.  (a)  On confirmation of an
20-25    eligible student's admission to a postsecondary educational
20-26    institution, or on receipt of an enrollment report of the student
20-27    at a postsecondary educational institution, and certification of
 21-1    the amount of financial support needed, the executive committee may
 21-2    award a forgivable loan to the student in the amount of not more
 21-3    than the cost of the student's tuition, fees, educational
 21-4    materials, and living expenses.
 21-5          (b)  An eligible student may receive another grant, loan, or
 21-6    scholarship for which the student is eligible in addition to the
 21-7    receipt of a forgivable loan, except that the total amount of funds
 21-8    received may not exceed the reasonable needs of the student as
 21-9    determined by the postsecondary educational institution in which
21-10    the student is enrolled.
21-11          Sec. 487.158.  REQUIRED CONTRACT.  (a)  A student may receive
21-12    assistance under this subchapter only if the student signs a
21-13    contract agreeing to provide health care services to the sponsoring
21-14    community on completion of the academic program and licensure or
21-15    certification in the health care profession for which the student
21-16    is sponsored.
21-17          (b)  The contract must provide that if the student does not
21-18    provide the required services to the community or provides those
21-19    services for less than the required time, the student is personally
21-20    liable to the state for:
21-21                (1)  the total amount of assistance the student
21-22    receives from the office and the sponsoring community;
21-23                (2)  interest on the total amount at a rate set by the
21-24    executive committee; and
21-25                (3)  the state's reasonable expenses incurred in
21-26    obtaining payment, including reasonable attorney's fees.
21-27          Sec. 487.159.  LOAN FORGIVENESS. (a)  A loan recipient shall
 22-1    be forgiven the principal and interest of one year's loan for each
 22-2    year the recipient practices as a health care professional
 22-3    providing health care services in the sponsoring community, but
 22-4    only if the loan recipient practices as a health care professional
 22-5    providing health care services in the sponsoring community or in
 22-6    another qualified area under Subsection (b) for a minimum of two
 22-7    years.
 22-8          (b)  If the executive committee finds that a sponsoring
 22-9    community is not in need of the student's services and that the
22-10    community is willing to forgive repayment of the principal balance
22-11    and interest of the student's loan, the executive committee by rule
22-12    may provide for the principal balance and interest of the student's
22-13    loan to be forgiven if the student provides services in another
22-14    qualified area in this state.
22-15          Sec. 487.160.  FUND.  (a)  The health careers education fund
22-16    is established in the state treasury.
22-17          (b)  The office shall administer the fund.
22-18          (c)  The fund consists of gifts, grants, donations, the
22-19    market value of in-kind contributions, and principal and interest
22-20    payments on forgivable loans deposited to the credit of the fund by
22-21    the office.
22-22          (d)  The office shall deposit any principal and interest
22-23    payments on forgivable loans to the credit of the fund.
22-24          (e)  The office shall allocate the fund, as available, for
22-25    forgivable loans and community repayment under this subchapter.
22-26          (f)  Unless otherwise provided by the General Appropriations
22-27    Act, the office may use money appropriated to the office to support
 23-1    the fund.
 23-2          Sec. 487.161.  REPORTING; MONITORING.  (a)  The office shall
 23-3    require reports from students, communities, and postsecondary
 23-4    educational institutions as needed to monitor the program.  After
 23-5    receiving any necessary releases as a condition of providing
 23-6    assistance, the office shall distribute reports relating to the
 23-7    progress of a student to the community sponsoring the student.
 23-8          (b)  The sponsoring community shall report to the executive
 23-9    committee the length of time the student provides health care
23-10    services in the community in accordance with the guidelines
23-11    established by the executive committee.
23-12          (c)  A postsecondary educational institution shall provide to
23-13    the executive committee a copy of the academic transcript of each
23-14    student for whom the institution has received a release that
23-15    complies with state and federal open records laws and that
23-16    authorizes the provision of the transcript.
23-17          Sec. 487.162.  PROGRAM PROMOTION.  The office shall provide
23-18    postsecondary educational institutions and communities in qualified
23-19    areas with information about health care careers and loan
23-20    opportunities, including information on eligibility and
23-21    availability of funds under this subchapter.
23-22          Sec. 487.163.  ADOPTION OF RULES.  (a)  The executive
23-23    committee shall adopt reasonable rules to enforce the requirements,
23-24    conditions, and limitations of this subchapter.
23-25          (b)  The executive committee shall set the rate of interest
23-26    charged on a forgivable loan under this subchapter.
23-27          (c)  The executive committee shall adopt rules necessary to
 24-1    ensure compliance with the federal Civil Rights Act of 1964 (42
 24-2    U.S.C. Section 2000a et seq.) concerning nondiscrimination in
 24-3    admissions.
 24-4             (Sections 487.164-487.200 reserved for expansion
 24-5            SUBCHAPTER F. MEDICALLY UNDERSERVED COMMUNITY-STATE
 24-6                        MATCHING INCENTIVE PROGRAM
 24-7          Sec. 487.201.  DEFINITIONS. In this subchapter:
 24-8                (1)  "Medically underserved community" means:
 24-9                      (A)  a community located in an area in this state
24-10    with a medically underserved population;
24-11                      (B)  a community located in an area in this state
24-12    designated by the United States secretary of health and human
24-13    services as an area with a shortage of personal health services;
24-14                      (C)  a population group designated by the United
24-15    States secretary of health and human services as having a shortage
24-16    of personal health services;
24-17                      (D)  a community designated under state or
24-18    federal law as a medically underserved community; or
24-19                      (E)  a community that the office considers to be
24-20    medically underserved based on relevant demographic, geographic,
24-21    and environmental factors.
24-22                (2)  "Physician" means a person licensed to practice
24-23    medicine in this state.
24-24                (3)  "Primary care" means physician services in family
24-25    practice, general practice, internal medicine, pediatrics,
24-26    obstetrics, or gynecology.
24-27                (4)  "Start-up money" means a payment made by a
 25-1    medically underserved community for reasonable costs incurred by a
 25-2    physician to establish a medical office and ancillary facilities
 25-3    for diagnosing and treating patients.
 25-4          Sec. 487.202.  PROGRAM. (a)  The executive committee shall
 25-5    establish and administer a program under this subchapter to
 25-6    increase the number of physicians providing primary care in
 25-7    medically underserved communities.
 25-8          (b)  A medically underserved community may sponsor a
 25-9    physician who has completed a primary care residency program and
25-10    has agreed to provide primary care in the community by contributing
25-11    start-up money for the physician and having that contribution
25-12    matched wholly or partly by state money appropriated to the
25-13    executive committee for that purpose.
25-14          (c)  A participating medically underserved community may
25-15    provide start-up money to an eligible physician over a two-year
25-16    period.
25-17          (d)  The executive committee may not pay more than $25,000 to
25-18    a community in a fiscal year unless the executive committee makes a
25-19    specific finding of need by the community.
25-20          (e)  The executive committee shall establish priorities so
25-21    that the neediest communities eligible for assistance under this
25-22    subchapter are assured the receipt of a grant.
25-23          Sec. 487.203.  ELIGIBILITY. To be eligible to receive money
25-24    from the executive committee, a medically underserved community
25-25    must:
25-26                (1)  apply for the money; and
25-27                (2)  provide evidence satisfactory to the executive
 26-1    committee that it has entered into an agreement with a physician
 26-2    for the physician to provide primary care in the community for at
 26-3    least two years.
 26-4          Sec. 487.204.  RULES. The executive committee shall adopt
 26-5    rules necessary for the administration of this subchapter,
 26-6    including rules addressing:
 26-7                (1)  eligibility criteria for a medically underserved
 26-8    community;
 26-9                (2)  eligibility criteria for a physician;
26-10                (3)  minimum and maximum community contributions to the
26-11    start-up money for a physician to be matched with state money;
26-12                (4)  conditions under which state money must be repaid
26-13    by a community or physician;
26-14                (5)  procedures for disbursement of money by the
26-15    executive committee;
26-16                (6)  the form and manner in which a community must make
26-17    its contribution to the start-up money; and
26-18                (7)  the contents of an agreement to be entered into by
26-19    the parties, which must include at least:
26-20                      (A)  a credit check for an eligible physician;
26-21    and
26-22                      (B)  community retention of interest in any
26-23    property, equipment, or durable goods for seven years.
26-24             (Sections 487.205-487.250 reserved for expansion)
26-25                 SUBCHAPTER G. TEXAS HEALTH SERVICE CORPS
26-26                  PROGRAM FOR MEDICALLY UNDERSERVED AREAS
26-27          Sec. 487.251.  DEFINITIONS. In this subchapter:
 27-1                (1)  "Medically underserved area" means an area
 27-2    designated by the United States secretary of health and human
 27-3    services as having:
 27-4                      (A)  a shortage of personal health services or a
 27-5    population group that has such a shortage as provided by 42 U.S.C.
 27-6    Section 300e-1(7); or
 27-7                      (B)  a health professional shortage as provided
 27-8    by 42 U.S.C. Section 254e(a)(1).
 27-9                (2)  "Physician" means a resident physician who is
27-10    enrolled in an accredited residency training program in this state
27-11    in the specialty of:
27-12                      (A)  family practice;
27-13                      (B)  general internal medicine;
27-14                      (C)  general pediatric medicine; or
27-15                      (D)  general obstetrics and gynecology.
27-16          Sec. 487.252.  TEXAS HEALTH SERVICE CORPS PROGRAM. (a)  The
27-17    executive committee shall establish a program in the office to
27-18    assist communities in recruiting and retaining physicians to
27-19    practice in medically underserved areas.
27-20          (b)  The executive committee by rule shall establish:
27-21                (1)  eligibility criteria for applicants;
27-22                (2)  stipend application procedures;
27-23                (3)  guidelines relating to stipend amounts;
27-24                (4)  procedures for evaluating stipend applications;
27-25    and
27-26                (5)  a system of priorities relating to the:
27-27                      (A)  geographic areas covered;
 28-1                      (B)  medical specialties eligible to receive
 28-2    funding under the program; and
 28-3                      (C)  level of stipend support.
 28-4          Sec. 487.253.  ADMINISTRATION. (a)  The executive committee
 28-5    shall adopt rules necessary to administer this subchapter, and the
 28-6    office shall administer the program in accordance with those rules.
 28-7          (b)  The office may not spend for the office's administrative
 28-8    costs in administering the program more than 10 percent of the
 28-9    amount appropriated to implement this subchapter.
28-10          Sec. 487.254.  REQUIRED CONTRACT. (a)  The office may award a
28-11    stipend to a physician under this subchapter if the physician
28-12    enters into a written contract to provide services in a medically
28-13    underserved area for at least one year for each year that the
28-14    physician receives the stipend.
28-15          (b)  The contract must provide that if the physician does not
28-16    provide the required services in the medically underserved area or
28-17    provides those services for less than the required term, the
28-18    physician is personally liable to the state for:
28-19                (1)  the total amount of the stipend the physician
28-20    receives;
28-21                (2)  interest on that total amount for the period
28-22    beginning on the date the physician signs the contract and ending
28-23    on the date the physician repays the amount of the stipend computed
28-24    at a rate equal to the sum of:
28-25                      (A)  the auction average rate quoted on a bank
28-26    discount basis for 26-week treasury bills issued by the United
28-27    States government, as published by the Federal Reserve Board, for
 29-1    the week preceding the week in which the contract is signed; and
 29-2                      (B)  five percent; and
 29-3                (3)  the state's reasonable expenses incurred in
 29-4    obtaining payment, including reasonable attorney's fees.
 29-5          Sec. 487.255.  STIPENDS. (a)  The office shall award stipends
 29-6    to physicians for one-year periods. A stipend awarded under this
 29-7    subchapter may not exceed $15,000 each year.
 29-8          (b)  The office may renew a stipend used to assist a
 29-9    particular physician.
29-10          (c)  A physician is not eligible for a stipend under this
29-11    subchapter for a period longer than is ordinarily and customarily
29-12    required for the completion of residency training for first board
29-13    eligibility.
29-14          (d)  A physician who receives a stipend under this subchapter
29-15    is not eligible to receive assistance under a state educational
29-16    loan repayment program or other state incentive program.
29-17          Sec. 487.256.  FUNDING. The office may seek, receive, and
29-18    spend money received through an appropriation, grant, donation, or
29-19    reimbursement from any public or private source to implement this
29-20    subchapter.
29-21             (Sections 487.257-487.300 reserved for expansion)
29-22          SUBCHAPTER H. RURAL HEALTH FACILITY CAPITAL IMPROVEMENT
29-23          Sec. 487.301.  DEFINITIONS. In this subchapter:
29-24                (1)  "Public hospital" means a general or special
29-25    hospital licensed under Chapter 241, Health and Safety Code, that
29-26    is owned or operated by a municipality, county, municipality and
29-27    county, hospital district, or hospital authority and that performs
 30-1    inpatient or outpatient services.
 30-2                (2)  "Rural county" means:
 30-3                      (A)  a county that has a population of 150,000 or
 30-4    less; or
 30-5                      (B)  with respect to a county that has a
 30-6    population of more than 150,000 and that contains a geographic area
 30-7    that is not delineated as urbanized by the federal census bureau,
 30-8    that part of the county that is not delineated as urbanized.
 30-9          Sec. 487.302.  POWERS OF OFFICE. In administering this
30-10    subchapter, the office may:
30-11                (1)  enter into and enforce contracts and execute and
30-12    deliver conveyances and other instruments necessary to make and
30-13    administer grants, loans, and loan guarantees under this
30-14    subchapter;
30-15                (2)  employ personnel and counsel necessary to
30-16    implement this subchapter and pay them from money appropriated for
30-17    that purpose;
30-18                (3)  impose and collect reasonable fees and charges in
30-19    connection with grants, loans, and loan guarantees made under this
30-20    subchapter and provide reasonable penalties for delinquent payment
30-21    of fees, charges, or loan repayments;
30-22                (4)  take and enforce a mortgage or appropriate
30-23    security interest in real or personal property that a loan
30-24    recipient acquires with the proceeds of a loan made under this
30-25    subchapter; and
30-26                (5)  adopt rules necessary to implement the grant,
30-27    loan, and loan guarantee program.
 31-1          Sec. 487.303.  GRANT, LOAN, AND LOAN GUARANTEE PROGRAM. (a)
 31-2    The office may use money appropriated to the office under Section
 31-3    403.1065 to make a grant or low-interest loan to, or guarantee a
 31-4    loan for, a public or nonprofit hospital located in a rural county.
 31-5          (b)  A grant, loan, or loan guarantee recipient may use the
 31-6    money only to make capital improvements to existing health
 31-7    facilities located in a rural county, to construct new health
 31-8    facilities in a rural county, or to purchase capital equipment,
 31-9    including information systems hardware and software, for a health
31-10    facility located in a rural county.
31-11          Sec. 487.304.  ELIGIBILITY FOR GRANT, LOAN, OR LOAN
31-12    GUARANTEE; INTEREST RATE. (a)  The office shall adopt rules that
31-13    establish eligibility criteria for receiving a grant, loan, or loan
31-14    guarantee under this subchapter.
31-15          (b)  The rules must state generally the factors the office
31-16    will consider in determining whether an applicant should receive a
31-17    grant, loan, or loan guarantee. The rules must allow the office to
31-18    give preferential consideration to public hospitals and to consider
31-19    at least the financial need of the applicant, the health care needs
31-20    of the rural area served by the applicant, and the probability that
31-21    the applicant will effectively and efficiently use the money
31-22    obtained through the grant, loan, or loan guarantee to meet the
31-23    health care needs of the rural area served by the applicant.
31-24          (c)  The rules must state generally the factors the office
31-25    will consider in determining the extent to which the interest rate
31-26    on a loan should be below market rates.
31-27          SECTION 2. Sections 2306.098, 2306.099, and 2306.100,
 32-1    Government Code, are transferred to Chapter 487, Government Code,
 32-2    redesignated as Subchapter I, Chapter 487, Government Code, and
 32-3    amended to read as follows:
 32-4                SUBCHAPTER I.  COMMUNITY DEVELOPMENT BLOCK
 32-5                       GRANT NONENTITLEMENT PROGRAM
 32-6          Sec. 487.351 [2306.098].  ADMINISTRATION OF COMMUNITY
 32-7    DEVELOPMENT BLOCK GRANT PROGRAM; ALLOCATION OF FUNDS. (a)  The
 32-8    office [department] shall, under the Omnibus Budget Reconciliation
 32-9    Act of 1981 (Pub.L. No. 97-35) and 24 CFR, Part 570, Subpart I,
32-10    administer the state's allocation of federal funds provided under
32-11    the community development block grant nonentitlement program
32-12    authorized by Title I of the Housing and Community Development Act
32-13    of 1974 (42 U.S.C. Section 5301 et seq.).
32-14          (b)  Community development block grant program funds shall be
32-15    allocated to eligible counties and municipalities under office
32-16    [department] rules.
32-17          Sec. 487.352 [2306.099].  TRANSFER OF FEDERAL FUNDS. (a)  The
32-18    office [department] may enter into an interagency agreement with
32-19    the Department of Agriculture [Texas Department of Commerce] to
32-20    reimburse the Department of Agriculture [Texas Department of
32-21    Commerce] for providing on behalf of the office [department]
32-22    marketing, underwriting, and any other services on the portion of
32-23    the federal community development block grant funds allocated by
32-24    the office [department] for economic development activities.
32-25          (b)  The office [department] shall allocate not more than 20
32-26    percent of the federal funds received by the office [department] to
32-27    the Department of Agriculture [Texas Department of Commerce] to be
 33-1    used for economic development activities.
 33-2          (c)  The office shall monitor the activities undertaken by
 33-3    the Department of Agriculture [Texas Department of Commerce] under
 33-4    this section [must be monitored by the department].
 33-5          Sec. 487.353 [2306.100].  STATE COMMUNITY DEVELOPMENT REVIEW
 33-6    COMMITTEE. (a)  The state community development review committee is
 33-7    composed of 12 members appointed by the governor.
 33-8          (b)  A committee member must be:
 33-9                (1)  a member of the governing body of a county or
33-10    municipality eligible for funding under the community development
33-11    block grant program; or
33-12                (2)  a county or municipal employee who is a supervisor
33-13    and whose regular duties include involvement in community
33-14    development activities.
33-15          (c)  The ratio of county officials serving as committee
33-16    members to all committee members may not exceed the ratio of all
33-17    counties eligible for funding under the community development block
33-18    grant program to all eligible applicants.
33-19          (d)  The governor shall designate the presiding officer of
33-20    the committee, who serves at the governor's pleasure.
33-21          (e)  Committee members serve two-year terms expiring February
33-22    1 of each odd-numbered year.
33-23          (f)  A committee member serves without compensation for
33-24    service on the committee, but is entitled to reimbursement for
33-25    reasonable and necessary expenses incurred in performing the
33-26    member's duties.
33-27          (g)  Service on the committee by an officer or employee of a
 34-1    county or municipality is an additional duty of the individual's
 34-2    office or employment and is not dual office holding.
 34-3          (h)  The committee shall meet at least twice annually at the
 34-4    executive director's call.
 34-5          (i)  The committee shall:
 34-6                (1)  consult with and advise the executive director on
 34-7    the administration and enforcement of the community development
 34-8    block grant program; and
 34-9                (2)  review funding applications of eligible counties
34-10    and municipalities and advise and assist the executive director
34-11    regarding the allocation of program funds to those applicants.
34-12          (j)  The committee may annually recommend to the executive
34-13    director a formula for allocating funds to each geographic state
34-14    planning region established by the governor under Chapter 391,
34-15    Local Government Code.  The formula must give preference to regions
34-16    according to the regions' needs.
34-17          SECTION 3. Section 38.011(j), Education Code, as added by
34-18    Chapter 1418, Acts of the 76th Legislature, Regular Session, 1999,
34-19    is amended to read as follows:
34-20          (j)  The requirements prescribed by Subsection (i) apply only
34-21    to a school-based health center serving an area that:
34-22                (1)  is located in a county with a population not
34-23    greater than 50,000; or
34-24                (2)  has been designated under state or federal law as:
34-25                      (A)  a health professional shortage area;
34-26                      (B)  a medically underserved area; or
34-27                      (C)  a medically underserved community by the
 35-1    Office of Rural Community Affairs [Center for Rural Health
 35-2    Initiatives].
 35-3          SECTION 4. Section 51.918(a), Education Code, is amended to
 35-4    read as follows:
 35-5          (a)  The Texas Higher Education Coordinating Board, the
 35-6    Office of Rural Community Affairs [Center for Rural Health
 35-7    Initiatives in the Texas Department of Health], medical schools,
 35-8    nursing schools, and schools of allied health sciences shall
 35-9    cooperate to improve and expand programs for rural areas.
35-10          SECTION 5.  Section 51.918(c), Education Code, as amended by
35-11    Chapters 349 and 965, Acts of the 74th Legislature, Regular
35-12    Session, 1995, is reenacted and amended to read as follows:
35-13          (c)  The Office of Rural Community Affairs [Center for Rural
35-14    Health Initiatives] shall develop relief service programs for rural
35-15    physicians and allied health personnel to facilitate ready access
35-16    to continuing medical education as well as to provide [or] practice
35-17    coverage for purposes other than continuing medical education.
35-18          SECTION 6. Section 58.007(b)(1), Education Code, is amended
35-19    to read as follows:
35-20                (1)  The Primary Care Residency Advisory Committee is
35-21    created and shall consist of 12 members as follows:
35-22                      (A)  seven members shall be licensed physicians,
35-23    one appointed by each of the following:
35-24                            (i)  the Texas Medical Association;
35-25                            (ii)  the Texas Osteopathic Medical
35-26    Association;
35-27                            (iii)  the Texas Academy of Family
 36-1    Physicians;
 36-2                            (iv)  the Texas Society of the American
 36-3    College of Osteopathic Family Physicians;
 36-4                            (v)  the Texas Society of Internal
 36-5    Medicine;
 36-6                            (vi)  the Texas Pediatric Society; and
 36-7                            (vii)  the Texas Association of
 36-8    Obstetricians and Gynecologists;
 36-9                      (B)  one member shall be appointed by the Office
36-10    of Rural Community Affairs [Center for Rural Health Initiatives];
36-11                      (C)  one member shall be appointed by the Bureau
36-12    of Community Oriented Primary Care at the Texas Department of
36-13    Health; and
36-14                      (D)  three members shall be members of the
36-15    public, one appointed by each of the following:
36-16                            (i)  the governor;
36-17                            (ii)  the lieutenant governor; and
36-18                            (iii)  the speaker of the house of
36-19    representatives.
36-20          SECTION 7. Section 403.1065(c), Government Code, is amended
36-21    to read as follows:
36-22          (c)  The available earnings of the fund may be appropriated
36-23    to the Office of Rural Community Affairs [Center for Rural Health
36-24    Initiatives] for the purposes of Subchapter H [G], Chapter 487
36-25    [106, Health and Safety Code].
36-26          SECTION 8. Section 86.011, Health and Safety Code, is amended
36-27    to read as follows:
 37-1          Sec. 86.011.  BREAST CANCER SCREENING. (a)  The Office of
 37-2    Rural Community Affairs [Center for Rural Health Initiatives] may
 37-3    provide for breast cancer screening in counties with a population
 37-4    of 50,000 or less.
 37-5          (b)  The Office of Rural Community Affairs [Center for Rural
 37-6    Health Initiatives] may provide the breast cancer screening through
 37-7    contracts with public or private entities to provide mobile units
 37-8    and on-site screening services.
 37-9          (c)  The Office of Rural Community Affairs [Center for Rural
37-10    Health Initiatives] shall coordinate the breast cancer screening
37-11    with programs administered by the Texas Cancer Council.
37-12          SECTION 9. Sections 204.104(b) and (c), Occupations Code, are
37-13    amended to read as follows:
37-14          (b)  The Office of Rural Community Affairs [Center for Rural
37-15    Health Initiatives] shall establish policies for and adopt rules to
37-16    administer the loan program.
37-17          (c)  The physician assistant board shall authorize and the
37-18    medical board shall transfer annually the funds designated under
37-19    Subsection (a) to the Office of Rural Community Affairs [Center for
37-20    Rural Health Initiatives] to administer the loan program.
37-21          SECTION 10. Chapter 106, Health and Safety Code, is repealed.
37-22          SECTION 11.  Section 2306.092, Government Code, is repealed.
37-23          SECTION 12. (a)  Not later than November 1, 2001, the
37-24    governor, the lieutenant governor, and the speaker of the house of
37-25    representatives shall appoint the initial members of the executive
37-26    committee of the Office of Rural Community Affairs in accordance
37-27    with Chapter 487, Government Code, as added by this Act.  Each
 38-1    appointing authority shall appoint one member for a term expiring
 38-2    February 1, 2003, one member for a term expiring February 1, 2005,
 38-3    and one member for a term expiring February 1, 2007.  The executive
 38-4    committee may not take action until a majority of the members have
 38-5    taken office.
 38-6          (b)  The Office of Rural Community Affairs shall employ an
 38-7    executive director in accordance with Chapter 487, Government Code,
 38-8    as added by this Act, not later than December 1, 2001.
 38-9          (c)  Not later than the 60th day after the date of the first
38-10    meeting of the executive committee of the Office of Rural Community
38-11    Affairs, the executive committee shall select a presiding officer.
38-12          SECTION 13. (a)  On the date by which a majority of the
38-13    members of the executive committee of the Office of Rural Community
38-14    Affairs have taken office, the Center for Rural Health Initiatives
38-15    is abolished and all powers, duties, obligations, rights,
38-16    contracts, leases, records, property, and unspent and unobligated
38-17    appropriations and other funds of the Center for Rural Health
38-18    Initiatives are transferred to the Office of Rural Community
38-19    Affairs.
38-20          (b)  The abolishment of the Center for Rural Health
38-21    Initiatives does not affect the validity of a right, privilege, or
38-22    obligation accrued, a contract or acquisition made, any liability
38-23    incurred, a permit or license issued, any penalty, forfeiture, or
38-24    punishment assessed, a rule adopted, a proceeding, investigation,
38-25    or remedy begun, a decision made, or other action taken by or in
38-26    connection with the Center for Rural Health Initiatives.
38-27          (c)  All rules, policies, procedures, and decisions of the
 39-1    Center for Rural Health Initiatives are continued in effect as
 39-2    rules, policies, procedures, and decisions of the Office of Rural
 39-3    Community Affairs until superseded by a rule or other appropriate
 39-4    action of the Office of Rural Community Affairs.
 39-5          (d)  Any action or proceeding before the Center for Rural
 39-6    Health Initiatives is transferred without change in status to the
 39-7    Office of Rural Community Affairs, and the Office of Rural
 39-8    Community Affairs assumes, without a change in status, the position
 39-9    of the Center for Rural Health Initiatives in any action or
39-10    proceeding to which the Center for Rural Health Initiatives is a
39-11    party.
39-12          (e)  The Office of Rural Community Affairs is authorized to
39-13    employ the same number of full-time equivalent employees as the
39-14    Center for Rural Health Initiatives.
39-15          (f)  A fund or account administered by the Center for Rural
39-16    Health Initiatives is not considered to be abolished and re-created
39-17    by this Act but is considered to be transferred to the Office of
39-18    Rural Community Affairs.
39-19          (g)  Notwithstanding the changes in law made by this Act,
39-20    until the date the Center for Rural Health Initiatives is abolished
39-21    as provided by this Act, the Center for Rural Health Initiatives
39-22    shall continue to exercise the powers and duties assigned to the
39-23    Center for Rural Health Initiatives under the law as it existed
39-24    immediately before the effective date of this Act or as modified by
39-25    another Act of the 77th Legislature, Regular Session, 2001, that
39-26    becomes law, and the former law is continued in effect for that
39-27    purpose.
 40-1          SECTION 14. (a)  On the date by which a majority of the
 40-2    members of the executive committee of the Office of Rural Community
 40-3    Affairs have taken office, all powers, duties, obligations, rights,
 40-4    contracts, leases, records, personnel, property, and unspent and
 40-5    unobligated appropriations and other funds of the Texas Department
 40-6    of Housing and Community Affairs related to the federal community
 40-7    development block grant nonentitlement program and to the community
 40-8    affairs and community development program under Section 2306.092,
 40-9    Government Code, including appropriations relating to the indirect
40-10    costs and general administrative support of those programs, are
40-11    transferred to the Office of Rural Community Affairs.
40-12          (b)  The transfer of the federal community development block
40-13    grant nonentitlement program to the Office of Rural Community
40-14    Affairs does not affect the validity of a right, privilege, or
40-15    obligation accrued, a contract or acquisition made, any liability
40-16    incurred, a permit or license issued, any penalty, forfeiture, or
40-17    punishment assessed, a rule adopted, a proceeding, investigation,
40-18    or remedy begun, a decision made, or other action taken by or in
40-19    connection with the program by the Texas Department of Housing and
40-20    Community Affairs.
40-21          (c)  All rules, policies, procedures, and decisions of the
40-22    Texas Department of Housing and Community Affairs related to the
40-23    federal community development block grant nonentitlement program
40-24    are continued in effect as rules, policies, procedures, and
40-25    decisions of the Office of Rural Community Affairs until superseded
40-26    by a rule or other appropriate action of the Office of Rural
40-27    Community Affairs.
 41-1          (d)  Any action or proceeding before the Texas Department of
 41-2    Housing and Community Affairs related to the federal community
 41-3    development block grant nonentitlement program is transferred
 41-4    without change in status to the Office of Rural Community Affairs,
 41-5    and the Office of Rural Community Affairs assumes, without a change
 41-6    in status, the position of the Texas Department of Housing and
 41-7    Community Affairs in any action or proceeding related to the
 41-8    program to which the Texas Department of Housing and Community
 41-9    Affairs is a party.
41-10          (e)  A reference to the Texas Department of Economic
41-11    Development in a rule of the Texas Department of Housing and
41-12    Community Affairs relating to the administration of the Texas
41-13    Capital Fund means the Department of Agriculture.
41-14          (f)  A fund or account administered by the Texas Department
41-15    of Economic Development relating to the federal community
41-16    development block grant nonentitlement program is not considered to
41-17    be abolished and re-created by this Act but is considered to be
41-18    transferred to the Office of Rural Community Affairs.
41-19          (g)  Notwithstanding the changes in law made by this Act,
41-20    until the date the federal community development block grant
41-21    nonentitlement program is transferred to the Office of Rural
41-22    Community Affairs as provided by this Act, the Texas Department of
41-23    Housing and Community Affairs and the Texas Department of Economic
41-24    Development shall continue to exercise the powers and duties
41-25    assigned to the Texas Department of Housing and Community Affairs
41-26    and the Texas Department of Economic Development, respectively,
41-27    under the law as it existed immediately before the effective date
 42-1    of this Act or as modified by another Act of the 77th Legislature,
 42-2    Regular Session, 2001, that becomes law, and the former law is
 42-3    continued in effect for that purpose.
 42-4          SECTION 15.  The executive director of the Office of Rural
 42-5    Community Affairs may change the duties of any employee who is
 42-6    transferred to the Office of Rural Community Affairs.
 42-7          SECTION 16.  The Legislative Budget Board shall resolve any
 42-8    disputes about which obligations, rights, contracts, leases,
 42-9    records, personnel, property, and unspent and unobligated
42-10    appropriations or other funds are entitled to be transferred to the
42-11    Office of Rural Community Affairs.
42-12          SECTION 17. (a)  Except as provided by Subsection (b), this
42-13    Act takes effect September 1, 2001.
42-14          (b)  Section 487.023, Government Code, as added by this Act,
42-15    takes effect September 1, 2002.