By Chisum                                                H.B. No. 7
         77R3782 MCK-D                           
                                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              (Sections 487.002-487.020 reserved for expansion
1-14                  SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
1-15           Sec. 487.021.  EXECUTIVE COMMITTEE. (a)  The executive
1-16     committee is the governing body of the office.
1-17           (b)  The executive committee is composed of the following
1-18     nine members:
1-19                 (1)  three members appointed by the governor;
1-20                 (2)  three members appointed by the lieutenant
1-21     governor; and
1-22                 (3)  three members appointed by the speaker of the
1-23     house of representatives.
1-24           (c)  The governor, the lieutenant governor, and the speaker
 2-1     of the house of representatives shall each appoint at least two
 2-2     members who possess a strong understanding of and commitment to
 2-3     rural interests based on the individual's personal history,
 2-4     including residency, occupation, and business or civic activities.
 2-5           (d)  Appointments to the executive committee shall be made
 2-6     without regard to the race, color, disability, sex, religion, age,
 2-7     or national origin of the appointees.
 2-8           (e)  The members of the executive committee serve for
 2-9     staggered six-year terms, with the terms of three members expiring
2-10     February 1 of each odd-numbered year.
2-11           (f)  Executive committee members receive no compensation but
2-12     are entitled to reimbursement of actual and necessary expenses
2-13     incurred in the performance of their duties.
2-14           (g)  The members of the executive committee annually shall
2-15     elect a presiding officer from among the members of the executive
2-16     committee.
2-17           Sec. 487.022.  CONFLICTS OF INTEREST. (a)  In this section,
2-18     "Texas trade association" means a cooperative and voluntarily
2-19     joined association of business or professional competitors in this
2-20     state designed to assist its members and its industry or profession
2-21     in dealing with mutual business or professional problems and in
2-22     promoting their common interest.
2-23           (b)  A person may not be a member of the executive committee
2-24     and may not be an office employee employed in a "bona fide
2-25     executive, administrative, or professional capacity," as that
2-26     phrase is used for purposes of establishing an exemption to the
2-27     overtime provisions of the federal Fair Labor Standards Act of 1938
 3-1     (29 U.S.C. Section 201 et seq.) and its subsequent amendments, if:
 3-2                 (1)  the person is an officer, employee, or paid
 3-3     consultant of a Texas trade association in the field of rural
 3-4     affairs; or
 3-5                 (2)  the person's spouse is an officer, manager, or
 3-6     paid consultant of a Texas trade association in the field of rural
 3-7     affairs.
 3-8           (c)  A person may not be a member of the executive committee
 3-9     or act as the general counsel to the executive committee or the
3-10     office if the person is required to register as a lobbyist under
3-11     Chapter 305 because of the person's activities for compensation on
3-12     behalf of a profession related to the operation of the office.
3-13           Sec. 487.023.  TRAINING FOR MEMBERS OF EXECUTIVE COMMITTEE.
3-14     (a)  A person who is appointed to and qualifies for office as a
3-15     member of the executive committee may not vote, deliberate, or be
3-16     counted as a member in attendance at a meeting of the executive
3-17     committee until the person completes a training program that
3-18     complies with this section.
3-19           (b)  The training program must provide the person with
3-20     information regarding:
3-21                 (1)  the legislation that created the office and the
3-22     executive committee;
3-23                 (2)  the programs operated by the office;
3-24                 (3)  the role and functions of the office;
3-25                 (4)  the rules of the office, with an emphasis on any
3-26     rules that relate to disciplinary and investigatory authority;
3-27                 (5)  the current budget for the office;
 4-1                 (6)  the results of the most recent formal audit of the
 4-2     office;
 4-3                 (7)  the requirements of:
 4-4                       (A)  the open meetings law, Chapter 551;
 4-5                       (B)  the public information law, Chapter 552;
 4-6                       (C)  the administrative procedure law, Chapter
 4-7     2001; and
 4-8                       (D)  other laws relating to public officials,
 4-9     including conflict-of-interest laws; and
4-10                 (8)  any applicable ethics policies adopted by the
4-11     executive committee or the Texas Ethics Commission.
4-12           (c)  A person appointed to the executive committee is
4-13     entitled to reimbursement, as provided by general law and the
4-14     General Appropriations Act, for the travel expenses incurred in
4-15     attending the training program regardless of whether the attendance
4-16     at the program occurs before or after the person qualifies for
4-17     office.
4-18           Sec. 487.024.  REMOVAL. (a)  It is a ground for removal from
4-19     the executive committee that a member:
4-20                 (1)  does not have at the time of taking office the
4-21     qualifications required by Section 487.021;
4-22                 (2)  does not maintain during service on the executive
4-23     committee the qualifications required by Section 487.021;
4-24                 (3)  is ineligible for membership under Section
4-25     487.022;
4-26                 (4)  cannot, because of illness or disability,
4-27     discharge the member's duties for a substantial part of the
 5-1     member's term; or
 5-2                 (5)  is absent from more than half of the regularly
 5-3     scheduled executive committee meetings that the member is eligible
 5-4     to attend during a calendar year without an excuse approved by a
 5-5     majority vote of the executive committee.
 5-6           (b)  The validity of an action of the executive committee is
 5-7     not affected by the fact that it is taken when a ground for removal
 5-8     of an executive committee member exists.
 5-9           (c)  If the executive director has knowledge that a potential
5-10     ground for removal exists, the executive director shall notify the
5-11     presiding officer of the executive committee of the potential
5-12     ground.  The presiding officer shall then notify the governor and
5-13     the attorney general that a potential ground for removal exists. If
5-14     the potential ground for removal involves the presiding officer,
5-15     the executive director shall notify the next highest ranking
5-16     officer of the executive committee, who shall then notify the
5-17     governor and the attorney general that a potential ground for
5-18     removal exists.
5-19           Sec. 487.025.  DIVISION OF RESPONSIBILITY. The executive
5-20     committee shall develop and implement policies that clearly
5-21     separate the policy-making responsibilities of the executive
5-22     committee and the management responsibilities of the executive
5-23     director and staff of the office.
5-24           Sec. 487.026.  EXECUTIVE DIRECTOR. (a)  The executive
5-25     committee may hire an executive director to serve as the chief
5-26     executive officer of the office and to perform the administrative
5-27     duties of the office.
 6-1           (b)  The executive director serves at the will of the
 6-2     executive committee.
 6-3           (c)  The executive director may hire staff within guidelines
 6-4     established by the executive committee.
 6-5           Sec. 487.027.  PUBLIC HEARINGS. The executive committee shall
 6-6     develop and implement policies that provide the public with a
 6-7     reasonable opportunity to appear before the executive committee and
 6-8     to speak on any issue under the jurisdiction of the office.
 6-9           Sec. 487.028.  EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.
6-10     (a)  The executive director or the executive director's designee
6-11     shall prepare and maintain a written policy statement that
6-12     implements a program of equal employment opportunity to ensure that
6-13     all personnel decisions are made without regard to race, color,
6-14     disability, sex, religion, age, or national origin.
6-15           (b)  The policy statement must include:
6-16                 (1)  personnel policies, including policies relating to
6-17     recruitment, evaluation, selection, training, and promotion of
6-18     personnel, that show the intent of the office to avoid the unlawful
6-19     employment practices described by Chapter 21, Labor Code; and
6-20                 (2)  an analysis of the extent to which the composition
6-21     of the office's personnel is in accordance with state and federal
6-22     law and a description of reasonable methods to achieve compliance
6-23     with state and federal law.
6-24           (c)  The policy statement must be:
6-25                 (1)  updated annually;
6-26                 (2)  reviewed by the state Commission on Human Rights
6-27     for compliance with Subsection (b)(1); and
 7-1                 (3)  filed with the governor's office.
 7-2           Sec. 487.029.  STANDARDS OF CONDUCT. The executive director
 7-3     or the executive director's designee shall provide to members of
 7-4     the executive committee and to agency employees, as often as
 7-5     necessary, information regarding the requirements for office or
 7-6     employment under this chapter, including information regarding a
 7-7     person's responsibilities under applicable laws relating to
 7-8     standards of conduct for state officers or employees.
 7-9           Sec. 487.030.  COMPLAINTS. (a)  The office shall maintain a
7-10     file on each written complaint filed with the office. The file must
7-11     include:
7-12                 (1)  the name of the person who filed the complaint;
7-13                 (2)  the date the complaint is received by the office;
7-14                 (3)  the subject matter of the complaint;
7-15                 (4)  the name of each person contacted in relation to
7-16     the complaint;
7-17                 (5)  a summary of the results of the review or
7-18     investigation of the complaint; and
7-19                 (6)  an explanation of the reason the file was closed,
7-20     if the office closed the file without taking action other than to
7-21     investigate the complaint.
7-22           (b)  The office shall provide to the person filing the
7-23     complaint and to each person who is a subject of the complaint a
7-24     copy of the office's policies and procedures relating to complaint
7-25     investigation and resolution.
7-26           (c)  The office, at least quarterly until final disposition
7-27     of the complaint, shall notify the person filing the complaint and
 8-1     each person who is a subject of the complaint of the status of the
 8-2     investigation unless the notice would jeopardize an undercover
 8-3     investigation.
 8-4              (Sections 487.031-487.050 reserved for expansion
 8-5                  SUBCHAPTER C.  GENERAL POWERS AND DUTIES
 8-6           Sec. 487.051.  POWERS AND DUTIES.  The office shall:
 8-7                 (1)  develop a rural policy for the state in
 8-8     consultation with local leaders representing all facets of rural
 8-9     community life, academic and industry experts, and state elected
8-10     and appointed officials with interests in rural communities;
8-11                 (2)  work with other state agencies and officials to
8-12     improve the results and the cost-effectiveness of state programs
8-13     affecting rural communities through coordination of efforts;
8-14                 (3)  develop programs to improve the leadership
8-15     capacity of rural community leaders;
8-16                 (4)  monitor developments that have a substantial
8-17     effect on rural Texas communities, especially actions of state
8-18     government, and compile an annual report describing and evaluating
8-19     the condition of rural communities;
8-20                 (5)  administer the federal community development block
8-21     grant nonentitlement program;
8-22                 (6)  administer programs supporting rural health care
8-23     as provided by Subchapters D-H; and
8-24                 (7)  perform research to determine the most beneficial
8-25     and cost-effective ways to improve the welfare of rural
8-26     communities.
8-27           Sec. 487.052.  RULES. The executive committee may adopt rules
 9-1     as necessary to implement this chapter.
 9-2           Sec. 487.053.  GIFTS AND GRANTS. (a)  The office may accept
 9-3     gifts, grants, and donations from any organization for the purpose
 9-4     of funding any activity under this chapter, and the office shall
 9-5     actively seek funding from appropriate nonprofit foundations.
 9-6           (b)  All gifts, grants, and donations must be accepted in an
 9-7     open meeting by a majority of the voting members of the executive
 9-8     committee and reported in the public record of the meeting with the
 9-9     name of the donor and purpose of the gift, grant, or donation.
9-10           Sec. 487.054.  ADVISORY COMMITTEE. (a)  The Rural Community
9-11     Affairs Advisory Committee is composed of:
9-12                 (1)  the commissioner of agriculture or a
9-13     representative of the Department of Agriculture designated by the
9-14     commissioner;
9-15                 (2)  the executive director of the Public Utility
9-16     Commission of Texas or a representative of the commission
9-17     designated by the executive director;
9-18                 (3)  the director of the Texas Agricultural Extension
9-19     Service or a representative of the service designated by the
9-20     director;
9-21                 (4)  the presiding officer of the Telecommunications
9-22     Infrastructure Fund Board or a representative of the board
9-23     designated by the presiding officer;
9-24                 (5)  the executive director of the Texas Department of
9-25     Housing and Community Affairs or a representative of the department
9-26     designated by the executive director;
9-27                 (6)  the commissioner of health or a representative of
 10-1    the Texas Department of Health designated by the commissioner;
 10-2                (7)  the executive administrator of the Texas Water
 10-3    Development Board or a representative of the board designated by
 10-4    the executive administrator;
 10-5                (8)  the executive director of the Parks and Wildlife
 10-6    Department or a representative of the department designated by the
 10-7    executive director;
 10-8                (9)  the commissioner of human services or a
 10-9    representative of the Texas Department of Human Services designated
10-10    by the commissioner; and
10-11                (10)  the commissioner of higher education or a
10-12    representative of the Texas Higher Education Coordinating Board
10-13    designated by the commissioner.
10-14          (b)  A member designated by the head of an agency must be an
10-15    assistant head of the agency or other employee who reports directly
10-16    to the head of the agency.
10-17          (c)  The executive committee may appoint representatives of
10-18    additional state agencies as necessary to serve on the advisory
10-19    committee.
10-20          (d)  The advisory committee shall meet regularly.  At least
10-21    once each year, the advisory committee shall hold a meeting that is
10-22    attended by the head of each agency represented on the advisory
10-23    committee.
10-24          (e)  The advisory committee shall identify issues or problems
10-25    specifically affecting rural areas of the state that can be
10-26    addressed by member agencies.
10-27          (f)  The advisory committee shall make recommendations to the
 11-1    executive committee.
 11-2          (g)  Chapter 2110 does not apply to the advisory committee.
 11-3          Sec. 487.055.  REPORT TO LEGISLATURE. Not later than January
 11-4    1 of each odd-numbered year, the office shall submit a biennial
 11-5    report to the legislature regarding the activities of the office
 11-6    and any findings and recommendations relating to rural issues.
 11-7          Sec. 487.056.  RURAL HEALTH WORK PLAN. (a)  The office shall
 11-8    develop, implement, and update a rural health work plan.
 11-9          (b)  The office shall submit the rural health work plan to
11-10    the executive committee for approval.  The executive committee
11-11    shall approve the rural health work plan not later than August 1 of
11-12    each odd-numbered year.
11-13          (c)  The office shall work with health care providers, rural
11-14    communities, universities, and all health and human service related
11-15    state agencies to develop the rural health work plan.  The office
11-16    shall solicit public comment on the rural health work plan.
11-17          (d)  The rural health work plan must identify:
11-18                (1)  the mission, goals, and objectives of how the
11-19    office will work to assist rural communities in meeting rural
11-20    health care needs;
11-21                (2)  ways for the state to effectively and creatively
11-22    address the unmet health care needs of rural communities;
11-23                (3)  ways to coordinate the administration and delivery
11-24    of rural health care service with federal, state, and local public
11-25    and private programs that provide similar services; and
11-26                (4)  the office's priorities to accomplish the
11-27    objectives of the plan.
 12-1             (Sections 487.057-487.100 reserved for expansion
 12-2                  SUBCHAPTER D. OUTSTANDING RURAL SCHOLAR
 12-3            RECOGNITION AND LOAN PROGRAM FOR RURAL HEALTH CARE
 12-4          Sec. 487.101.  DEFINITIONS. In this subchapter:
 12-5                (1)  "Selection committee" means the Outstanding Rural
 12-6    Scholar Selection Committee.
 12-7                (2)  "Fund" means the outstanding rural scholar fund.
 12-8                (3)  "Postsecondary educational institution" means:
 12-9                      (A)  an institution of higher education, as
12-10    defined by Section 61.003, Education Code;
12-11                      (B)  a nonprofit, independent institution
12-12    approved under Section 61.222, Education Code; or
12-13                      (C)  a nonprofit, health-related school or
12-14    program accredited by the Southern Association of Colleges and
12-15    Schools, the Liaison Committee on Medical Education, the American
12-16    Osteopathic Association, the Board of Nurse Examiners, the Board of
12-17    Vocational Nurse Examiners, or, in the case of allied health, an
12-18    accrediting body recognized by the United States Department of
12-19    Education.
12-20                (4)  "Program" means the outstanding rural scholar
12-21    recognition and loan program for rural health care.
12-22                (5)  "Rural community" means a municipality in a
12-23    nonmetropolitan county as defined by the United States Census
12-24    Bureau in its most recent census.
12-25          Sec. 487.102.  ADMINISTRATION. The office shall administer or
12-26    contract for the administration of the program.
12-27          Sec. 487.103.  SELECTION COMMITTEE. (a)  The selection
 13-1    committee shall advise the executive committee on the progress of
 13-2    the program.
 13-3          (b)  The selection committee is composed of 12 members
 13-4    appointed by the executive committee.
 13-5          (c)  The executive committee shall consider geographical
 13-6    representation in making appointments to the selection committee.
 13-7          (d)  Selection committee members serve for staggered
 13-8    three-year terms, with the terms of four members expiring August 31
 13-9    of each year. A member is eligible for reappointment to consecutive
13-10    terms.
13-11          (e)  A member of the selection committee is not entitled to
13-12    reimbursement for expenses incurred in performing duties under this
13-13    subchapter.
13-14          Sec. 487.104.  SELECTION OF OUTSTANDING RURAL SCHOLARS. (a)
13-15    The selection committee shall select outstanding rural scholars
13-16    through a statewide competition.
13-17          (b)  The selection committee shall make selections based on
13-18    criteria approved by the executive committee and adopted as a rule
13-19    of the office.
13-20          (c)  The selection committee may not use the applicant's
13-21    performance on a standardized test as the sole criterion to
13-22    determine the applicant's selection as an outstanding rural
13-23    scholar.
13-24          (d)  The selection committee shall recommend to the executive
13-25    committee guidelines to be used by rural communities in the
13-26    selection of students for nomination and sponsorship as outstanding
13-27    rural scholars.
 14-1          (e)  An outstanding rural scholar receives public recognition
 14-2    and a certificate of award and is eligible for a forgivable loan
 14-3    under this subchapter.
 14-4          Sec. 487.105.  ELIGIBILITY FOR OUTSTANDING RURAL SCHOLAR
 14-5    COMPETITION.  (a)  To be eligible to participate in the competition
 14-6    under Section 487.104, a high school student or an undergraduate
 14-7    student at a postsecondary educational institution must:
 14-8                (1)  be nominated and sponsored by a rural community,
 14-9    which sponsorship must include financial support;
14-10                (2)  be a Texas resident under Subchapter B, Chapter
14-11    54, Education Code;
14-12                (3)  if the person is a high school student, be in the
14-13    upper 25 percent of the student's high school class, if the class
14-14    contains 48 or more students, and intend to enter a postsecondary
14-15    educational institution; and
14-16                (4)  if the person is an undergraduate student, be in
14-17    the upper 25 percent of the student's class or have a cumulative
14-18    grade average that is equal to or greater than the equivalent of a
14-19    3.0 on a 4.0 scale and be enrolled in a postsecondary educational
14-20    institution.
14-21          (b)  If a person is neither a high school student nor an
14-22    undergraduate student, the person must be eligible for
14-23    participation in the competition under rules adopted by the office.
14-24          Sec. 487.106.  ELIGIBILITY FOR LOANS; RURAL COMMUNITY
14-25    FINANCIAL SUPPORT.  (a)  For an outstanding rural scholar to be
14-26    eligible for a forgivable loan, community sponsorship must include
14-27    financial support.
 15-1          (b)  Community financial support consists of a commitment to
 15-2    fund 50 percent of the costs of a scholar's tuition, fees,
 15-3    educational materials, and living expenses.
 15-4          (c)  The financial support under this section may be
 15-5    satisfied wholly or partly by a grant, a scholarship, or private
 15-6    foundation support.
 15-7          (d)  Evidence of the financial support must be submitted with
 15-8    a community's nomination.
 15-9          Sec. 487.107.  AWARDING OF LOANS.  (a)  The selection
15-10    committee shall recommend to the executive committee guidelines for
15-11    the awarding of forgivable loans to outstanding rural scholars.
15-12          (b)  The executive committee, acting on the advice of the
15-13    selection committee, shall award forgivable loans to outstanding
15-14    rural scholars based on the availability of money in the fund.
15-15          (c)  If in any year the fund is inadequate to provide loans
15-16    to all eligible applicants, the executive committee shall award
15-17    forgivable loans on a priority basis according to the applicants'
15-18    academic performance, test scores, and other criteria of
15-19    eligibility.
15-20          Sec. 487.108.  AMOUNT OF LOAN.  (a)  On confirmation of an
15-21    outstanding rural scholar's admission to a postsecondary
15-22    educational institution, or on receipt of an enrollment report of
15-23    the scholar at a postsecondary educational institution, and a
15-24    certification of the amount of financial support needed, the
15-25    selection committee annually shall recommend to the executive
15-26    committee that the committee award a forgivable loan to the scholar
15-27    in the amount of 50 percent of the cost of the scholar's tuition,
 16-1    fees, educational materials, and living expenses.
 16-2          (b)  An outstanding rural scholar may receive another grant,
 16-3    loan, or scholarship for which the scholar is eligible in addition
 16-4    to the receipt of a forgivable loan, except that the total amount
 16-5    of funds received may not exceed the reasonable needs of the
 16-6    scholar.
 16-7          Sec. 487.109.  LOAN FORGIVENESS.  (a)  The principal balance
 16-8    and interest for one year of a forgivable loan awarded to an
 16-9    outstanding rural scholar must be forgiven for each year the
16-10    scholar practices as a health care professional in the sponsoring
16-11    community.
16-12          (b)  The sponsoring community shall report to the executive
16-13    committee the length of time the scholar practices as a health care
16-14    professional in the community.
16-15          (c)  If the executive committee finds that a sponsoring
16-16    community is not in need of the scholar's services, the executive
16-17    committee by rule may provide for the principal balance and
16-18    interest of one year of the scholar's loan to be forgiven for each
16-19    year the scholar practices in another rural community in this
16-20    state.
16-21          (d)  Any amount of loan principal or interest that is not
16-22    forgiven under this section shall be repaid to the office with
16-23    reasonable collection fees in a timely manner as provided by
16-24    executive committee rule.
16-25          Sec. 487.110.  FUND.  (a)  The outstanding rural scholar fund
16-26    is in the state treasury.
16-27          (b)  The fund consists of legislative appropriations, gifts,
 17-1    grants, donations, the market value of in-kind contributions, and
 17-2    principal and interest payments on forgivable loans deposited to
 17-3    the credit of the fund by the office.
 17-4          (c)  The office shall administer the fund.
 17-5          (d)  The office shall allocate the fund, as available, for
 17-6    forgivable loans  under this subchapter.
 17-7          (e)  The office shall deposit any principal and interest
 17-8    payments on forgivable loans to the credit of the fund.
 17-9          Sec. 487.111.  POSTSECONDARY EDUCATIONAL INSTITUTIONS;
17-10    MONITORING.  (a)  A postsecondary educational institution shall
17-11    provide to the selection committee a copy of the academic
17-12    transcript of each rural scholar for whom the institution has
17-13    received a release that complies with state and federal open
17-14    records laws and authorizes the provision of a transcript.
17-15          (b)  The office shall require reports from students and
17-16    postsecondary educational institutions as needed to monitor the
17-17    program.  After receiving any necessary releases as a condition of
17-18    providing assistance, the office shall distribute reports relating
17-19    to the progress of an outstanding rural scholar to the community
17-20    sponsoring the scholar.
17-21          Sec. 487.112.  ADOPTION AND DISTRIBUTION OF RULES.  (a)  The
17-22    executive committee shall adopt reasonable rules to enforce the
17-23    requirements, conditions, and limitations under this subchapter.
17-24          (b)  The executive committee shall set the rate of interest
17-25    charged on a forgivable loan under this subchapter.
17-26          (c)  The executive committee shall adopt rules necessary to
17-27    ensure compliance with the federal Civil Rights Act of 1964 (42
 18-1    U.S.C. Section 2000a et seq.) concerning nondiscrimination in
 18-2    admissions.
 18-3             (Sections 487.113-487.150 reserved for expansion
 18-4       SUBCHAPTER E. HEALTH CAREERS PROMOTION AND EDUCATION PROGRAM
 18-5          Sec. 487.151.  DEFINITIONS.  In this subchapter:
 18-6                (1)  "Fund" means the health careers education fund.
 18-7                (2)  "Postsecondary educational institution" means:
 18-8                      (A)  an institution of higher education, as
 18-9    defined by Section 61.003, Education Code;
18-10                      (B)  a nonprofit, independent institution
18-11    approved under Section 61.222, Education Code; or
18-12                      (C)  a nonprofit, health-related school or
18-13    program accredited by the Southern Association of Colleges and
18-14    Schools, the Liaison Committee on Medical Education, the American
18-15    Osteopathic Association, the Board of Nurse Examiners, the Board of
18-16    Vocational Nurse Examiners, or, in the case of allied health, an
18-17    accrediting body recognized by the United States Department of
18-18    Education.
18-19                (3)  "Program" means the health careers promotion and
18-20    education program.
18-21                (4)  "Qualified area" means an area qualifying under
18-22    the National Health Services Corps Community Scholarship Program or
18-23    an area with similar characteristics as identified by the office.
18-24          Sec. 487.152.  ADMINISTRATION.  (a)  The office shall
18-25    administer or contract for the administration of the program.
18-26          (b)  The office may solicit and accept gifts, grants,
18-27    donations, and contributions to support the program.
 19-1          Sec. 487.153.  HEALTH CAREERS PROMOTION.  The office may
 19-2    establish a program to work with students, communities, and
 19-3    community-based organizations to encourage high school students to
 19-4    pursue health care professional careers. The office shall give
 19-5    priority to working with communities and students in qualified
 19-6    areas.
 19-7          Sec. 487.154.  LOANS.  (a)  The executive committee may award
 19-8    forgivable educational loans to eligible students under this
 19-9    subchapter.
19-10          (b)  The executive committee may award forgivable loans to
19-11    eligible students based on the availability of money in the fund.
19-12          (c)  If in any year the fund is inadequate to provide loans
19-13    to all eligible students, the executive committee may award
19-14    forgivable loans on a priority basis according to the students'
19-15    academic performance, test scores, and other criteria of
19-16    eligibility.
19-17          Sec. 487.155.  STUDENT ELIGIBILITY. (a)  To be eligible to
19-18    receive a loan under this subchapter, a student must:
19-19                (1)  be sponsored by an eligible community;
19-20                (2)  at the time of the application for the loan, be
19-21    enrolled in high school or enrolled or accepted for enrollment in a
19-22    postsecondary educational institution in this state;
19-23                (3)  meet academic requirements as established by the
19-24    executive committee;
19-25                (4)  plan to complete a health care professional degree
19-26    or certificate program;
19-27                (5)  plan to practice as a health care professional in
 20-1    a qualified area of the state; and
 20-2                (6)  meet other requirements as established by the
 20-3    executive committee.
 20-4          (b)  Other requirements for eligibility for a loan under this
 20-5    subchapter must include:
 20-6                (1)  one or more interviews with the student; and
 20-7                (2)  a statement written by the student of the
 20-8    student's reasons for:
 20-9                      (A)  entering the health care profession; and
20-10                      (B)  wanting to provide health care services to a
20-11    qualified area in this state.
20-12          Sec. 487.156.  COMMUNITY ELIGIBILITY. (a)  To be eligible to
20-13    sponsor a student under this subchapter, a community must:
20-14                (1)  be located in a qualified area in this state; and
20-15                (2)  provide evidence of community sponsorship of the
20-16    student.
20-17          (b)  Community sponsorship consists of:
20-18                (1)  a commitment to pay for a percentage of the
20-19    student's postsecondary educational expenses, including tuition,
20-20    fees, educational materials, and living expenses; and
20-21                (2)  a commitment to employ the student on a full-time
20-22    basis as a health care professional on the student's completion of
20-23    the academic program and licensure or certification in the health
20-24    care profession for which the student is sponsored.
20-25          (c)  The executive committee shall determine the percentage
20-26    of educational expenses communities are required to provide under
20-27    this section.
 21-1          (d)  Community financial support may be satisfied wholly or
 21-2    partly by a grant, a scholarship, or private foundation support.
 21-3          Sec. 487.157.  AMOUNT OF LOAN.  (a)  On confirmation of an
 21-4    eligible student's admission to a postsecondary educational
 21-5    institution, or on receipt of an enrollment report of the student
 21-6    at a postsecondary educational institution, and certification of
 21-7    the amount of financial support needed, the executive committee may
 21-8    award a forgivable loan to the student in the amount of not more
 21-9    than the cost of the student's tuition, fees, educational
21-10    materials, and living expenses.
21-11          (b)  An eligible student may receive another grant, loan, or
21-12    scholarship for which the student is eligible in addition to the
21-13    receipt of a forgivable loan, except that the total amount of funds
21-14    received may not exceed the reasonable needs of the student as
21-15    determined by the postsecondary educational institution in which
21-16    the student is enrolled.
21-17          Sec. 487.158.  REQUIRED CONTRACT.  (a)  A student may receive
21-18    assistance under this subchapter only if the student signs a
21-19    contract agreeing to provide health care services to the sponsoring
21-20    community on completion of the academic program and licensure or
21-21    certification in the health care profession for which the student
21-22    is sponsored.
21-23          (b)  The contract must provide that if the student does not
21-24    provide the required services to the community or provides those
21-25    services for less than the required time, the student is personally
21-26    liable to the state for:
21-27                (1)  the total amount of assistance the student
 22-1    receives from the office and the sponsoring community;
 22-2                (2)  interest on the total amount at a rate set by the
 22-3    executive committee; and
 22-4                (3)  the state's reasonable expenses incurred in
 22-5    obtaining payment, including reasonable attorney's fees.
 22-6          Sec. 487.159.  LOAN FORGIVENESS. (a)  A loan recipient shall
 22-7    be forgiven the principal and interest of one year's loan for each
 22-8    year the recipient practices as a health care professional
 22-9    providing health care services in the sponsoring community, but
22-10    only if the loan recipient practices as a health care professional
22-11    providing health care services in the sponsoring community or in
22-12    another qualified area under Subsection (b) for a minimum of two
22-13    years.
22-14          (b)  If the executive committee finds that a sponsoring
22-15    community is not in need of the student's services and that the
22-16    community is willing to forgive repayment of the principal balance
22-17    and interest of the student's loan, the executive committee by rule
22-18    may provide for the principal balance and interest of the student's
22-19    loan to be forgiven if the student provides services in another
22-20    qualified area in this state.
22-21          Sec. 487.160.  FUND.  (a)  The health careers education fund
22-22    is established in the state treasury.
22-23          (b)  The office shall administer the fund.
22-24          (c)  The fund consists of gifts, grants, donations, the
22-25    market value of in-kind contributions, and principal and interest
22-26    payments on forgivable loans deposited to the credit of the fund by
22-27    the office.
 23-1          (d)  The office shall deposit any principal and interest
 23-2    payments on forgivable loans to the credit of the fund.
 23-3          (e)  The office shall allocate the fund, as available, for
 23-4    forgivable loans and community repayment under this subchapter.
 23-5          (f)  Unless otherwise provided by the General Appropriations
 23-6    Act, the office may use money appropriated to the office to support
 23-7    the fund.
 23-8          Sec. 487.161.  REPORTING; MONITORING.  (a)  The office shall
 23-9    require reports from students, communities, and postsecondary
23-10    educational institutions as needed to monitor the program.  After
23-11    receiving any necessary releases as a condition of providing
23-12    assistance, the office shall distribute reports relating to the
23-13    progress of a student to the community sponsoring the student.
23-14          (b)  The sponsoring community shall report to the executive
23-15    committee the length of time the student provides health care
23-16    services in the community in accordance with the guidelines
23-17    established by the executive committee.
23-18          (c)  A postsecondary educational institution shall provide to
23-19    the executive committee a copy of the academic transcript of each
23-20    student for whom the institution has received a release that
23-21    complies with state and federal open records laws and that
23-22    authorizes the provision of the transcript.
23-23          Sec. 487.162.  PROGRAM PROMOTION.  The office shall provide
23-24    postsecondary educational institutions and communities in qualified
23-25    areas with information about health care careers and loan
23-26    opportunities, including information on eligibility and
23-27    availability of funds under this subchapter.
 24-1          Sec. 487.163.  ADOPTION OF RULES.  (a)  The executive
 24-2    committee shall adopt reasonable rules to enforce the requirements,
 24-3    conditions, and limitations of this subchapter.
 24-4          (b)  The executive committee shall set the rate of interest
 24-5    charged on a forgivable loan under this subchapter.
 24-6          (c)  The executive committee shall adopt rules necessary to
 24-7    ensure compliance with the federal Civil Rights Act of 1964 (42
 24-8    U.S.C. Section 2000a et seq.) concerning nondiscrimination in
 24-9    admissions.
24-10             (Sections 487.164-487.200 reserved for expansion
24-11            SUBCHAPTER F. MEDICALLY UNDERSERVED COMMUNITY-STATE
24-12                        MATCHING INCENTIVE PROGRAM
24-13          Sec. 487.201.  DEFINITIONS. In this subchapter:
24-14                (1)  "Medically underserved community" means:
24-15                      (A)  a community located in an area in this state
24-16    with a medically underserved population;
24-17                      (B)  a community located in an area in this state
24-18    designated by the United States secretary of health and human
24-19    services as an area with a shortage of personal health services;
24-20                      (C)  a population group designated by the United
24-21    States secretary of health and human services as having a shortage
24-22    of personal health services;
24-23                      (D)  a community designated under state or
24-24    federal law as a medically underserved community; or
24-25                      (E)  a community that the office considers to be
24-26    medically underserved based on relevant demographic, geographic,
24-27    and environmental factors.
 25-1                (2)  "Physician" means a person licensed to practice
 25-2    medicine in this state.
 25-3                (3)  "Primary care" means physician services in family
 25-4    practice, general practice, internal medicine, pediatrics,
 25-5    obstetrics, or gynecology.
 25-6                (4)  "Start-up money" means a payment made by a
 25-7    medically underserved community for reasonable costs incurred by a
 25-8    physician to establish a medical office and ancillary facilities
 25-9    for diagnosing and treating patients.
25-10          Sec. 487.202.  PROGRAM. (a)  The executive committee shall
25-11    establish and administer a program under this subchapter to
25-12    increase the number of physicians providing primary care in
25-13    medically underserved communities.
25-14          (b)  A medically underserved community may sponsor a
25-15    physician who has completed a primary care residency program and
25-16    has agreed to provide primary care in the community by contributing
25-17    start-up money for the physician and having that contribution
25-18    matched wholly or partly by state money appropriated to the
25-19    executive committee for that purpose.
25-20          (c)  A participating medically underserved community may
25-21    provide start-up money to an eligible physician over a two-year
25-22    period.
25-23          (d)  The executive committee may not pay more than $25,000 to
25-24    a community in a fiscal year unless the executive committee makes a
25-25    specific finding of need by the community.
25-26          (e)  The executive committee shall establish priorities so
25-27    that the neediest communities eligible for assistance under this
 26-1    subchapter are assured the receipt of a grant.
 26-2          Sec. 487.203.  ELIGIBILITY. To be eligible to receive money
 26-3    from the executive committee, a medically underserved community
 26-4    must:
 26-5                (1)  apply for the money; and
 26-6                (2)  provide evidence satisfactory to the executive
 26-7    committee that it has entered into an agreement with a physician
 26-8    for the physician to provide primary care in the community for at
 26-9    least two years.
26-10          Sec. 487.204.  RULES. The executive committee shall adopt
26-11    rules necessary for the administration of this subchapter,
26-12    including rules addressing:
26-13                (1)  eligibility criteria for a medically underserved
26-14    community;
26-15                (2)  eligibility criteria for a physician;
26-16                (3)  minimum and maximum community contributions to the
26-17    start-up money for a physician to be matched with state money;
26-18                (4)  conditions under which state money must be repaid
26-19    by a community or physician;
26-20                (5)  procedures for disbursement of money by the
26-21    executive committee;
26-22                (6)  the form and manner in which a community must make
26-23    its contribution to the start-up money; and
26-24                (7)  the contents of an agreement to be entered into by
26-25    the parties, which must include at least:
26-26                      (A)  a credit check for an eligible physician;
26-27    and
 27-1                      (B)  community retention of interest in any
 27-2    property, equipment, or durable goods for seven years.
 27-3             (Sections 487.205-487.250 reserved for expansion)
 27-4                 SUBCHAPTER G. TEXAS HEALTH SERVICE CORPS
 27-5                  PROGRAM FOR MEDICALLY UNDERSERVED AREAS
 27-6          Sec. 487.251.  DEFINITIONS. In this subchapter:
 27-7                (1)  "Medically underserved area" means an area
 27-8    designated by the United States secretary of health and human
 27-9    services as having:
27-10                      (A)  a shortage of personal health services or a
27-11    population group that has such a shortage as provided by 42 U.S.C.
27-12    Section 300e-1(7); or
27-13                      (B)  a health professional shortage as provided
27-14    by 42 U.S.C. Section 254e(a)(1).
27-15                (2)  "Physician" means a resident physician who is
27-16    enrolled in an accredited residency training program in this state
27-17    in the specialty of:
27-18                      (A)  family practice;
27-19                      (B)  general internal medicine;
27-20                      (C)  general pediatric medicine; or
27-21                      (D)  general obstetrics and gynecology.
27-22          Sec. 487.252.  TEXAS HEALTH SERVICE CORPS PROGRAM. (a)  The
27-23    executive committee shall establish a program in the office to
27-24    assist communities in recruiting and retaining physicians to
27-25    practice in medically underserved areas.
27-26          (b)  The executive committee by rule shall establish:
27-27                (1)  eligibility criteria for applicants;
 28-1                (2)  stipend application procedures;
 28-2                (3)  guidelines relating to stipend amounts;
 28-3                (4)  procedures for evaluating stipend applications;
 28-4    and
 28-5                (5)  a system of priorities relating to the:
 28-6                      (A)  geographic areas covered;
 28-7                      (B)  medical specialties eligible to receive
 28-8    funding under the program; and
 28-9                      (C)  level of stipend support.
28-10          Sec. 487.253.  ADMINISTRATION. (a)  The executive committee
28-11    shall adopt rules necessary to administer this subchapter, and the
28-12    office shall administer the program in accordance with those rules.
28-13          (b)  The office may not spend for the office's administrative
28-14    costs in administering the program more than 10 percent of the
28-15    amount appropriated to implement this subchapter.
28-16          Sec. 487.254.  REQUIRED CONTRACT. (a)  The office may award a
28-17    stipend to a physician under this subchapter if the physician
28-18    enters into a written contract to provide services in a medically
28-19    underserved area for at least one year for each year that the
28-20    physician receives the stipend.
28-21          (b)  The contract must provide that if the physician does not
28-22    provide the required services in the medically underserved area or
28-23    provides those services for less than the required term, the
28-24    physician is personally liable to the state for:
28-25                (1)  the total amount of the stipend the physician
28-26    receives;
28-27                (2)  interest on that total amount for the period
 29-1    beginning on the date the physician signs the contract and ending
 29-2    on the date the physician repays the amount of the stipend computed
 29-3    at a rate equal to the sum of:
 29-4                      (A)  the auction average rate quoted on a bank
 29-5    discount basis for 26-week treasury bills issued by the United
 29-6    States government, as published by the Federal Reserve Board, for
 29-7    the week preceding the week in which the contract is signed; and
 29-8                      (B)  five percent; and
 29-9                (3)  the state's reasonable expenses incurred in
29-10    obtaining payment, including reasonable attorney's fees.
29-11          Sec. 487.255.  STIPENDS. (a)  The office shall award stipends
29-12    to physicians for one-year periods. A stipend awarded under this
29-13    subchapter may not exceed $15,000 each year.
29-14          (b)  The office may renew a stipend used to assist a
29-15    particular physician.
29-16          (c)  A physician is not eligible for a stipend under this
29-17    subchapter for a period longer than is ordinarily and customarily
29-18    required for the completion of residency training for first board
29-19    eligibility.
29-20          (d)  A physician who receives a stipend under this subchapter
29-21    is not eligible to receive assistance under a state educational
29-22    loan repayment program or other state incentive program.
29-23          Sec. 487.256.  FUNDING. The office may seek, receive, and
29-24    spend money received through an appropriation, grant, donation, or
29-25    reimbursement from any public or private source to implement this
29-26    subchapter.
29-27             (Sections 487.257-487.300 reserved for expansion)
 30-1          SUBCHAPTER H. RURAL HEALTH FACILITY CAPITAL IMPROVEMENT
 30-2          Sec. 487.301.  DEFINITIONS. In this subchapter:
 30-3                (1)  "Public hospital" means a general or special
 30-4    hospital licensed under Chapter 241, Health and Safety Code, that
 30-5    is owned or operated by a municipality, county, municipality and
 30-6    county, hospital district, or hospital authority and that performs
 30-7    inpatient or outpatient services.
 30-8                (2)  "Rural county" means:
 30-9                      (A)  a county that has a population of 150,000 or
30-10    less; or
30-11                      (B)  with respect to a county that has a
30-12    population of more than 150,000 and that contains a geographic area
30-13    that is not delineated as urbanized by the federal census bureau,
30-14    that part of the county that is not delineated as urbanized.
30-15          Sec. 487.302.  POWERS OF OFFICE. In administering this
30-16    subchapter, the office may:
30-17                (1)  enter into and enforce contracts and execute and
30-18    deliver conveyances and other instruments necessary to make and
30-19    administer grants, loans, and loan guarantees under this
30-20    subchapter;
30-21                (2)  employ personnel and counsel necessary to
30-22    implement this subchapter and pay them from money appropriated for
30-23    that purpose;
30-24                (3)  impose and collect reasonable fees and charges in
30-25    connection with grants, loans, and loan guarantees made under this
30-26    subchapter and provide reasonable penalties for delinquent payment
30-27    of fees, charges, or loan repayments;
 31-1                (4)  take and enforce a mortgage or appropriate
 31-2    security interest in real or personal property that a loan
 31-3    recipient acquires with the proceeds of a loan made under this
 31-4    subchapter; and
 31-5                (5)  adopt rules necessary to implement the grant,
 31-6    loan, and loan guarantee program.
 31-7          Sec. 487.303.  GRANT, LOAN, AND LOAN GUARANTEE PROGRAM. (a)
 31-8    The office may use money appropriated to the office under Section
 31-9    403.1065 to make a grant or low-interest loan to, or guarantee a
31-10    loan for, a public or nonprofit hospital located in a rural county.
31-11          (b)  A grant, loan, or loan guarantee recipient may use the
31-12    money only to make capital improvements to existing health
31-13    facilities located in a rural county, to construct new health
31-14    facilities in a rural county, or to purchase capital equipment,
31-15    including information systems hardware and software, for a health
31-16    facility located in a rural county.
31-17          Sec. 487.304.  ELIGIBILITY FOR GRANT, LOAN, OR LOAN
31-18    GUARANTEE; INTEREST RATE. (a)  The office shall adopt rules that
31-19    establish eligibility criteria for receiving a grant, loan, or loan
31-20    guarantee under this subchapter.
31-21          (b)  The rules must state generally the factors the office
31-22    will consider in determining whether an applicant should receive a
31-23    grant, loan, or loan guarantee. The rules must allow the office to
31-24    give preferential consideration to public hospitals and to consider
31-25    at least the financial need of the applicant, the health care needs
31-26    of the rural area served by the applicant, and the probability that
31-27    the applicant will effectively and efficiently use the money
 32-1    obtained through the grant, loan, or loan guarantee to meet the
 32-2    health care needs of the rural area served by the applicant.
 32-3          (c)  The rules must state generally the factors the office
 32-4    will consider in determining the extent to which the interest rate
 32-5    on a loan should be below market rates.
 32-6          SECTION 2. Sections 2306.098, 2306.099, and 2306.100,
 32-7    Government Code, are transferred to Chapter 487, Government Code,
 32-8    redesignated as Subchapter I, Chapter 487, Government Code, and
 32-9    amended to read as follows:
32-10                SUBCHAPTER I.  COMMUNITY DEVELOPMENT BLOCK
32-11                       GRANT NONENTITLEMENT PROGRAM
32-12          Sec. 487.351 [2306.098].  ADMINISTRATION OF COMMUNITY
32-13    DEVELOPMENT BLOCK GRANT PROGRAM; ALLOCATION OF FUNDS. (a)  The
32-14    office [department] shall, under the Omnibus Budget Reconciliation
32-15    Act of 1981 (Pub.L. No. 97-35) and 24 CFR, Part 570, Subpart I,
32-16    administer the state's allocation of federal funds provided under
32-17    the community development block grant nonentitlement program
32-18    authorized by Title I of the Housing and Community Development Act
32-19    of 1974 (42 U.S.C. Section 5301 et seq.).
32-20          (b)  Community development block grant program funds shall be
32-21    allocated to eligible counties and municipalities under office
32-22    [department] rules.
32-23          Sec. 487.352 [2306.099].  TRANSFER OF FEDERAL FUNDS. (a)  The
32-24    office [department] may enter into an interagency agreement with
32-25    the Department of Agriculture [Texas Department of Commerce] to
32-26    reimburse the Department of Agriculture [Texas Department of
32-27    Commerce] for providing on behalf of the office [department]
 33-1    marketing, underwriting, and any other services on the portion of
 33-2    the federal community development block grant funds allocated by
 33-3    the office [department] for economic development activities.
 33-4          (b)  The office [department] shall allocate not more than 20
 33-5    percent of the federal funds received by the office [department] to
 33-6    the Department of Agriculture [Texas Department of Commerce] to be
 33-7    used for economic development activities.
 33-8          (c)  The office shall monitor the activities undertaken by
 33-9    the Department of Agriculture [Texas Department of Commerce] under
33-10    this section [must be monitored by the department].
33-11          Sec. 487.353 [2306.100].  STATE COMMUNITY DEVELOPMENT REVIEW
33-12    COMMITTEE. (a)  The state community development review committee is
33-13    composed of 12 members appointed by the governor.
33-14          (b)  A committee member must be:
33-15                (1)  a member of the governing body of a county or
33-16    municipality eligible for funding under the community development
33-17    block grant program; or
33-18                (2)  a county or municipal employee who is a supervisor
33-19    and whose regular duties include involvement in community
33-20    development activities.
33-21          (c)  The ratio of county officials serving as committee
33-22    members to all committee members may not exceed the ratio of all
33-23    counties eligible for funding under the community development block
33-24    grant program to all eligible applicants.
33-25          (d)  The governor shall designate the presiding officer of
33-26    the committee, who serves at the governor's pleasure.
33-27          (e)  Committee members serve two-year terms expiring February
 34-1    1 of each odd-numbered year.
 34-2          (f)  A committee member serves without compensation for
 34-3    service on the committee, but is entitled to reimbursement for
 34-4    reasonable and necessary expenses incurred in performing the
 34-5    member's duties.
 34-6          (g)  Service on the committee by an officer or employee of a
 34-7    county or municipality is an additional duty of the individual's
 34-8    office or employment and is not dual office holding.
 34-9          (h)  The committee shall meet at least twice annually at the
34-10    executive director's call.
34-11          (i)  The committee shall:
34-12                (1)  consult with and advise the executive director on
34-13    the administration and enforcement of the community development
34-14    block grant program; and
34-15                (2)  review funding applications of eligible counties
34-16    and municipalities and advise and assist the executive director
34-17    regarding the allocation of program funds to those applicants.
34-18          (j)  The committee may annually recommend to the executive
34-19    director a formula for allocating funds to each geographic state
34-20    planning region established by the governor under Chapter 391,
34-21    Local Government Code.  The formula must give preference to regions
34-22    according to the regions' needs.
34-23          SECTION 3. Section 38.011(j), Education Code, as added by
34-24    Chapter 1418, Acts of the 76th Legislature, Regular Session, 1999,
34-25    is amended to read as follows:
34-26          (j)  The requirements prescribed by Subsection (i) apply only
34-27    to a school-based health center serving an area that:
 35-1                (1)  is located in a county with a population not
 35-2    greater than 50,000; or
 35-3                (2)  has been designated under state or federal law as:
 35-4                      (A)  a health professional shortage area;
 35-5                      (B)  a medically underserved area; or
 35-6                      (C)  a medically underserved community by the
 35-7    Office of Rural Community Affairs [Center for Rural Health
 35-8    Initiatives].
 35-9          SECTION 4. Section 51.918(a), Education Code, is amended to
35-10    read as follows:
35-11          (a)  The Texas Higher Education Coordinating Board, the
35-12    Office of Rural Community Affairs [Center for Rural Health
35-13    Initiatives in the Texas Department of Health], medical schools,
35-14    nursing schools, and schools of allied health sciences shall
35-15    cooperate to improve and expand programs for rural areas.
35-16          SECTION 5.  Section 51.918(c), Education Code, as amended by
35-17    Chapters 349 and 965, Acts of the 74th Legislature, Regular
35-18    Session, 1995, is reenacted and amended to read as follows:
35-19          (c)  The Office of Rural Community Affairs [Center for Rural
35-20    Health Initiatives] shall develop relief service programs for rural
35-21    physicians and allied health personnel to facilitate ready access
35-22    to continuing medical education as well as to provide [or] practice
35-23    coverage for purposes other than continuing medical education.
35-24          SECTION 6. Section 58.007(b)(1), Education Code, is amended
35-25    to read as follows:
35-26                (1)  The Primary Care Residency Advisory Committee is
35-27    created and shall consist of 12 members as follows:
 36-1                      (A)  seven members shall be licensed physicians,
 36-2    one appointed by each of the following:
 36-3                            (i)  the Texas Medical Association;
 36-4                            (ii)  the Texas Osteopathic Medical
 36-5    Association;
 36-6                            (iii)  the Texas Academy of Family
 36-7    Physicians;
 36-8                            (iv)  the Texas Society of the American
 36-9    College of Osteopathic Family Physicians;
36-10                            (v)  the Texas Society of Internal
36-11    Medicine;
36-12                            (vi)  the Texas Pediatric Society; and
36-13                            (vii)  the Texas Association of
36-14    Obstetricians and Gynecologists;
36-15                      (B)  one member shall be appointed by the Office
36-16    of Rural Community Affairs [Center for Rural Health Initiatives];
36-17                      (C)  one member shall be appointed by the Bureau
36-18    of Community Oriented Primary Care at the Texas Department of
36-19    Health; and
36-20                      (D)  three members shall be members of the
36-21    public, one appointed by each of the following:
36-22                            (i)  the governor;
36-23                            (ii)  the lieutenant governor; and
36-24                            (iii)  the speaker of the house of
36-25    representatives.
36-26          SECTION 7. Section 403.1065(c), Government Code, is amended
36-27    to read as follows:
 37-1          (c)  The available earnings of the fund may be appropriated
 37-2    to the Office of Rural Community Affairs [Center for Rural Health
 37-3    Initiatives] for the purposes of Subchapter H [G], Chapter 487
 37-4    [106, Health and Safety Code].
 37-5          SECTION 8. Section 86.011, Health and Safety Code, is amended
 37-6    to read as follows:
 37-7          Sec. 86.011.  BREAST CANCER SCREENING. (a)  The Office of
 37-8    Rural Community Affairs [Center for Rural Health Initiatives] may
 37-9    provide for breast cancer screening in counties with a population
37-10    of 50,000 or less.
37-11          (b)  The Office of Rural Community Affairs [Center for Rural
37-12    Health Initiatives] may provide the breast cancer screening through
37-13    contracts with public or private entities to provide mobile units
37-14    and on-site screening services.
37-15          (c)  The Office of Rural Community Affairs [Center for Rural
37-16    Health Initiatives] shall coordinate the breast cancer screening
37-17    with programs administered by the Texas Cancer Council.
37-18          SECTION 9. Sections 204.104(b) and (c), Occupations Code, are
37-19    amended to read as follows:
37-20          (b)  The Office of Rural Community Affairs [Center for Rural
37-21    Health Initiatives] shall establish policies for and adopt rules to
37-22    administer the loan program.
37-23          (c)  The physician assistant board shall authorize and the
37-24    medical board shall transfer annually the funds designated under
37-25    Subsection (a)  to the Office of Rural Community Affairs [Center
37-26    for Rural Health Initiatives] to administer the loan program.
37-27          SECTION 10. Chapter 106, Health and Safety Code, is repealed.
 38-1          SECTION 11. (a)  Not later than November 1, 2001, the
 38-2    governor, the lieutenant governor, and the speaker of the house of
 38-3    representatives shall appoint the initial members of the Office of
 38-4    Rural Community Affairs Executive Committee in accordance with
 38-5    Chapter 487, Government Code, as added by this Act.  Each
 38-6    appointing authority shall appoint one member for a term expiring
 38-7    February 1, 2003, one member for a term expiring February 1, 2005,
 38-8    and one member for a term expiring February 1, 2007.  The executive
 38-9    committee may not take action until a majority of the members have
38-10    taken office.
38-11          (b)  The Office of Rural Community Affairs shall employ an
38-12    executive director in accordance with Chapter 487, Government Code,
38-13    as added by this Act, not later than December 1, 2001.
38-14          (c)  Not later than the 60th day after the date of the first
38-15    meeting of the Office of Rural Community Affairs Executive
38-16    Committee, the executive committee shall select a presiding
38-17    officer.
38-18          SECTION 12. (a)  On the date by which a majority of the
38-19    members of the Office of Rural Community Affairs Executive
38-20    Committee have taken office, the Center for Rural Health
38-21    Initiatives is abolished and all powers, duties, obligations,
38-22    rights, contracts, leases, records, property, and unspent and
38-23    unobligated appropriations and other funds of the Center for Rural
38-24    Health Initiatives are transferred to the Office of Rural Community
38-25    Affairs.
38-26          (b)  The abolishment of the Center for Rural Health
38-27    Initiatives does not affect the validity of a right, privilege, or
 39-1    obligation accrued, a contract or acquisition made, any liability
 39-2    incurred, a permit or license issued, any penalty, forfeiture, or
 39-3    punishment assessed, a rule adopted, a proceeding, investigation,
 39-4    or remedy begun, a decision made, or other action taken by or in
 39-5    connection with the Center for Rural Health Initiatives.
 39-6          (c)  All rules, policies, procedures, and decisions of the
 39-7    Center for Rural Health Initiatives are continued in effect as
 39-8    rules, policies, procedures, and decisions of the Office of Rural
 39-9    Community Affairs until superseded by a rule or other appropriate
39-10    action of the Office of Rural Community Affairs.
39-11          (d)  Any action or proceeding before the Center for Rural
39-12    Health Initiatives is transferred without change in status to the
39-13    Office of Rural Community Affairs, and the Office of Rural
39-14    Community Affairs assumes, without a change in status, the position
39-15    of the Center for Rural Health Initiatives in any action or
39-16    proceeding to which the Center for Rural Health Initiatives is a
39-17    party.
39-18          (e)  The Office of Rural Community Affairs is authorized to
39-19    employ the same number of full-time equivalent employees as the
39-20    Center for Rural Health Initiatives.
39-21          (f)  A fund or account administered by the Center for Rural
39-22    Health Initiatives is not considered to be abolished and re-created
39-23    by this Act but is considered to be transferred to the Office of
39-24    Rural Community Affairs.
39-25          (g)  Notwithstanding the changes in law made by this Act,
39-26    until the date the Center for Rural Health Initiatives is abolished
39-27    as provided by this Act, the Center for Rural Health Initiatives
 40-1    shall continue to exercise the powers and duties assigned to the
 40-2    Center for Rural Health Initiatives under the law as it existed
 40-3    immediately before the effective date of this Act or as modified by
 40-4    another Act of the 77th Legislature, Regular Session, 2001, that
 40-5    becomes law, and the former law is continued in effect for that
 40-6    purpose.
 40-7          SECTION 13. (a)  On the date by which a majority of the
 40-8    members of the Office of Rural Community Affairs Executive
 40-9    Committee have taken office, all powers, duties, obligations,
40-10    rights, contracts, leases, records, personnel, property, and
40-11    unspent and unobligated appropriations and other funds of the Texas
40-12    Department of Housing and Community Affairs related to the federal
40-13    community development block grant nonentitlement program are
40-14    transferred to the Office of Rural Community Affairs.
40-15          (b)  The transfer of the federal community development block
40-16    grant nonentitlement program to the Office of Rural Community
40-17    Affairs does not affect the validity of a right, privilege, or
40-18    obligation accrued, a contract or acquisition made, any liability
40-19    incurred, a permit or license issued, any penalty, forfeiture, or
40-20    punishment assessed, a rule adopted, a proceeding, investigation,
40-21    or remedy begun, a decision made, or other action taken by or in
40-22    connection with the program by the Texas Department of Housing and
40-23    Community Affairs.
40-24          (c)  All rules, policies, procedures, and decisions of the
40-25    Texas Department of Housing and Community Affairs related to the
40-26    federal community development block grant nonentitlement program
40-27    are continued in effect as rules, policies, procedures, and
 41-1    decisions of the Office of Rural Community Affairs until superseded
 41-2    by a rule or other appropriate action of the Office of Rural
 41-3    Community Affairs.
 41-4          (d)  Any action or proceeding before the Texas Department of
 41-5    Housing and Community Affairs related to the federal community
 41-6    development block grant nonentitlement program is transferred
 41-7    without change in status to the Office of Rural Community Affairs,
 41-8    and the Office of Rural Community Affairs assumes, without a change
 41-9    in status, the position of the Texas Department of Housing and
41-10    Community Affairs in any action or proceeding related to the
41-11    program to which the Texas Department of Housing and Community
41-12    Affairs is a party.
41-13          (e)  A reference to the Texas Department of Economic
41-14    Development in a rule of the Texas Department of Housing and
41-15    Community Affairs relating to the administration of the Texas
41-16    Capital Fund means the Department of Agriculture.
41-17          (f)  A fund or account administered by the Texas Department
41-18    of Economic Development relating to the federal community
41-19    development block grant nonentitlement program is not considered to
41-20    be abolished and re-created by this Act but is considered to be
41-21    transferred to the Office of Rural Community Affairs.
41-22          (g)  Notwithstanding the changes in law made by this Act,
41-23    until the date the federal community development block grant
41-24    nonentitlement program is transferred to the Office of Rural
41-25    Community Affairs as provided by this Act, the Texas Department of
41-26    Housing and Community Affairs and the Texas Department of Economic
41-27    Development shall continue to exercise the powers and duties
 42-1    assigned to the Texas Department of Housing and Community Affairs
 42-2    and the Texas Department of Economic Development, respectively,
 42-3    under the law as it existed immediately before the effective date
 42-4    of this Act or as modified by another Act of the 77th Legislature,
 42-5    Regular Session, 2001, that becomes law, and the former law is
 42-6    continued in effect for that purpose.
 42-7          SECTION 14. (a)  Except as provided by Subsection (b), this
 42-8    Act takes effect September 1, 2001.
 42-9          (b)  Section 487.023, Government Code, as added by this Act,
42-10    takes effect September 1, 2002.