1-1     By:  Chisum, et al. (Senate Sponsor - Sibley)            H.B. No. 7
 1-2           (In the Senate - Received from the House April 11, 2001;
 1-3     April 17, 2001, read first time and referred to Committee on State
 1-4     Affairs; May 11, 2001, reported favorably, as amended, by the
 1-5     following vote:  Yeas 7, Nays 0; May 11, 2001, sent to printer.)
 1-6     COMMITTEE AMENDMENT NO. 1                               By:  Harris
 1-7           Amend House Bill 7 by inserting a new SUBCHAPTER J on page
 1-8     14, line 54, to read as follows:
 1-9                 SUBCHAPTER J.  DESIGNATING RURAL HOSPITALS.
1-10           Sec. 487.401.  ADMINISRATION.  (a)  The executive committee
1-11     shall adopt rules that establish a procedure for designating a
1-12     hospital as a rural hospital in order for the hospital to quality
1-13     for federal funds under 42 C.F.R. part 412.
1-14           (b)  At the hospital's request, the office shall designate
1-15     the hospital as a rural hospital if the hospital meets the
1-16     requirements for a rural hospital under the commission's rules.
1-17     COMMITTEE AMENDMENT NO. 2                               By:  Harris
1-18           Amend House Bill 7 as follows:
1-19           (1)  On page 16, line 48, insert ",foundation," after "fund"
1-20     and before "or".
1-21                            A BILL TO BE ENTITLED
1-22                                   AN ACT
1-23     relating to creating the Office of Rural Community Affairs.
1-24           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25           SECTION 1. Subtitle F, Title 4, Government Code, is amended
1-26     by adding Chapter 487 to read as follows:
1-27               CHAPTER 487.  OFFICE OF RURAL COMMUNITY AFFAIRS
1-28                      SUBCHAPTER A.  GENERAL PROVISIONS
1-29           Sec. 487.001.  DEFINITIONS. In this chapter:
1-30                 (1)  "Executive committee" means the executive
1-31     committee of the Office of Rural Community Affairs.
1-32                 (2)  "Office" means the Office of Rural Community
1-33     Affairs.
1-34           Sec. 487.002.  SUNSET PROVISION. The Office of Rural
1-35     Community Affairs is subject to Chapter 325 (Texas Sunset Act).
1-36     Unless continued in existence as provided by that chapter, the
1-37     office is abolished and this chapter expires September 1, 2007.
1-38              (Sections 487.003-487.020 reserved for expansion
1-39                  SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
1-40           Sec. 487.021.  EXECUTIVE COMMITTEE. (a)  The executive
1-41     committee is the governing body of the office.
1-42           (b)  The executive committee is composed of the following
1-43     nine members:
1-44                 (1)  three members appointed by the governor;
1-45                 (2)  three members appointed by the lieutenant
1-46     governor; and
1-47                 (3)  three members appointed by the speaker of the
1-48     house of representatives.
1-49           (c)  The governor, the lieutenant governor, and the speaker
1-50     of the house of representatives shall each appoint at least two
1-51     members who possess a strong understanding of and commitment to
1-52     rural interests based on the individual's personal history,
1-53     including residency, occupation, and business or civic activities.
1-54           (d)  Appointments to the executive committee shall be made
1-55     without regard to the race, color, disability, sex, religion, age,
1-56     or national origin of the appointees.
1-57           (e)  The members of the executive committee serve for
1-58     staggered six-year terms, with the terms of three members expiring
1-59     February 1 of each odd-numbered year.
1-60           (f)  Executive committee members receive no compensation but
1-61     are entitled to reimbursement of actual and necessary expenses
 2-1     incurred in the performance of their duties.
 2-2           (g)  The members of the executive committee annually shall
 2-3     elect a presiding officer from among the members of the executive
 2-4     committee.
 2-5           Sec. 487.022.  CONFLICTS OF INTEREST. (a)  In this section,
 2-6     "Texas trade association" means a cooperative and voluntarily
 2-7     joined association of business or professional competitors in this
 2-8     state designed to assist its members and its industry or profession
 2-9     in dealing with mutual business or professional problems and in
2-10     promoting their common interest.
2-11           (b)  A person may not be a member of the executive committee
2-12     and may not be an office employee employed in a "bona fide
2-13     executive, administrative, or professional capacity," as that
2-14     phrase is used for purposes of establishing an exemption to the
2-15     overtime provisions of the federal Fair Labor Standards Act of 1938
2-16     (29 U.S.C. Section 201 et seq.) and its subsequent amendments, if:
2-17                 (1)  the person is an officer, employee, or paid
2-18     consultant of a Texas trade association in the field of rural
2-19     affairs; or
2-20                 (2)  the person's spouse is an officer, manager, or
2-21     paid consultant of a Texas trade association in the field of rural
2-22     affairs.
2-23           (c)  A person may not be a member of the executive committee
2-24     or act as the general counsel to the executive committee or the
2-25     office if the person is required to register as a lobbyist under
2-26     Chapter 305 because of the person's activities for compensation on
2-27     behalf of a profession related to the operation of the office.
2-28           Sec. 487.023.  TRAINING FOR MEMBERS OF EXECUTIVE COMMITTEE.
2-29     (a)  A person who is appointed to and qualifies for office as a
2-30     member of the executive committee may not vote, deliberate, or be
2-31     counted as a member in attendance at a meeting of the executive
2-32     committee until the person completes a training program that
2-33     complies with this section.
2-34           (b)  The training program must provide the person with
2-35     information regarding:
2-36                 (1)  the legislation that created the office and the
2-37     executive committee;
2-38                 (2)  the programs operated by the office;
2-39                 (3)  the role and functions of the office;
2-40                 (4)  the rules of the office, with an emphasis on any
2-41     rules that relate to disciplinary and investigatory authority;
2-42                 (5)  the current budget for the office;
2-43                 (6)  the results of the most recent formal audit of the
2-44     office;
2-45                 (7)  the requirements of:
2-46                       (A)  the open meetings law, Chapter 551;
2-47                       (B)  the public information law, Chapter 552;
2-48                       (C)  the administrative procedure law, Chapter
2-49     2001; and
2-50                       (D)  other laws relating to public officials,
2-51     including conflict-of-interest laws; and
2-52                 (8)  any applicable ethics policies adopted by the
2-53     executive committee or the Texas Ethics Commission.
2-54           (c)  A person appointed to the executive committee is
2-55     entitled to reimbursement, as provided by general law and the
2-56     General Appropriations Act, for the travel expenses incurred in
2-57     attending the training program regardless of whether the attendance
2-58     at the program occurs before or after the person qualifies for
2-59     office.
2-60           Sec. 487.024.  REMOVAL. (a)  It is a ground for removal from
2-61     the executive committee that a member:
2-62                 (1)  does not have at the time of taking office the
2-63     qualifications required by Section 487.021;
2-64                 (2)  does not maintain during service on the executive
2-65     committee the qualifications required by Section 487.021;
2-66                 (3)  is ineligible for membership under Section
2-67     487.022;
2-68                 (4)  cannot, because of illness or disability,
2-69     discharge the member's duties for a substantial part of the
 3-1     member's term; or
 3-2                 (5)  is absent from more than half of the regularly
 3-3     scheduled executive committee meetings that the member is eligible
 3-4     to attend during a calendar year without an excuse approved by a
 3-5     majority vote of the executive committee.
 3-6           (b)  The validity of an action of the executive committee is
 3-7     not affected by the fact that it is taken when a ground for removal
 3-8     of an executive committee member exists.
 3-9           (c)  If the executive director has knowledge that a potential
3-10     ground for removal exists, the executive director shall notify the
3-11     presiding officer of the executive committee of the potential
3-12     ground.  The presiding officer shall then notify the governor and
3-13     the attorney general that a potential ground for removal exists. If
3-14     the potential ground for removal involves the presiding officer,
3-15     the executive director shall notify the next highest ranking
3-16     officer of the executive committee, who shall then notify the
3-17     governor and the attorney general that a potential ground for
3-18     removal exists.
3-19           Sec. 487.025.  DIVISION OF RESPONSIBILITY. The executive
3-20     committee shall develop and implement policies that clearly
3-21     separate the policy-making responsibilities of the executive
3-22     committee and the management responsibilities of the executive
3-23     director and staff of the office.
3-24           Sec. 487.026.  EXECUTIVE DIRECTOR. (a)  The executive
3-25     committee may hire an executive director to serve as the chief
3-26     executive officer of the office and to perform the administrative
3-27     duties of the office.
3-28           (b)  The executive director serves at the will of the
3-29     executive committee.
3-30           (c)  The executive director may hire staff within guidelines
3-31     established by the executive committee.
3-32           Sec. 487.027.  PUBLIC HEARINGS. The executive committee shall
3-33     develop and implement policies that provide the public with a
3-34     reasonable opportunity to appear before the executive committee and
3-35     to speak on any issue under the jurisdiction of the office.
3-36           Sec. 487.028.  EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.
3-37     (a)  The executive director or the executive director's designee
3-38     shall prepare and maintain a written policy statement that
3-39     implements a program of equal employment opportunity to ensure that
3-40     all personnel decisions are made without regard to race, color,
3-41     disability, sex, religion, age, or national origin.
3-42           (b)  The policy statement must include:
3-43                 (1)  personnel policies, including policies relating to
3-44     recruitment, evaluation, selection, training, and promotion of
3-45     personnel, that show the intent of the office to avoid the unlawful
3-46     employment practices described by Chapter 21, Labor Code; and
3-47                 (2)  an analysis of the extent to which the composition
3-48     of the office's personnel is in accordance with state and federal
3-49     law and a description of reasonable methods to achieve compliance
3-50     with state and federal law.
3-51           (c)  The policy statement must be:
3-52                 (1)  updated annually;
3-53                 (2)  reviewed by the state Commission on Human Rights
3-54     for compliance with Subsection (b)(1); and
3-55                 (3)  filed with the governor's office.
3-56           Sec. 487.029.  STANDARDS OF CONDUCT. The executive director
3-57     or the executive director's designee shall provide to members of
3-58     the executive committee and to agency employees, as often as
3-59     necessary, information regarding the requirements for office or
3-60     employment under this chapter, including information regarding a
3-61     person's responsibilities under applicable laws relating to
3-62     standards of conduct for state officers or employees.
3-63           Sec. 487.030.  COMPLAINTS. (a)  The office shall maintain a
3-64     file on each written complaint filed with the office. The file must
3-65     include:
3-66                 (1)  the name of the person who filed the complaint;
3-67                 (2)  the date the complaint is received by the office;
3-68                 (3)  the subject matter of the complaint;
3-69                 (4)  the name of each person contacted in relation to
 4-1     the complaint;
 4-2                 (5)  a summary of the results of the review or
 4-3     investigation of the complaint; and
 4-4                 (6)  an explanation of the reason the file was closed,
 4-5     if the office closed the file without taking action other than to
 4-6     investigate the complaint.
 4-7           (b)  The office shall provide to the person filing the
 4-8     complaint and to each person who is a subject of the complaint a
 4-9     copy of the office's policies and procedures relating to complaint
4-10     investigation and resolution.
4-11           (c)  The office, at least quarterly until final disposition
4-12     of the complaint, shall notify the person filing the complaint and
4-13     each person who is a subject of the complaint of the status of the
4-14     investigation unless the notice would jeopardize an undercover
4-15     investigation.
4-16              (Sections 487.031-487.050 reserved for expansion
4-17                  SUBCHAPTER C.  GENERAL POWERS AND DUTIES
4-18           Sec. 487.051.  POWERS AND DUTIES.  The office shall:
4-19                 (1)  develop a rural policy for the state in
4-20     consultation with local leaders representing all facets of rural
4-21     community life, academic and industry experts, and state elected
4-22     and appointed officials with interests in rural communities;
4-23                 (2)  work with other state agencies and officials to
4-24     improve the results and the cost-effectiveness of state programs
4-25     affecting rural communities through coordination of efforts;
4-26                 (3)  develop programs to improve the leadership
4-27     capacity of rural community leaders;
4-28                 (4)  monitor developments that have a substantial
4-29     effect on rural Texas communities, especially actions of state
4-30     government, and compile an annual report describing and evaluating
4-31     the condition of rural communities;
4-32                 (5)  administer the federal community development block
4-33     grant nonentitlement program;
4-34                 (6)  administer programs supporting rural health care
4-35     as provided by Subchapters D-H;
4-36                 (7)  perform research to determine the most beneficial
4-37     and cost-effective ways to improve the welfare of rural
4-38     communities;
4-39                 (8)  ensure that the office qualifies as the state's
4-40     office of rural health for the purpose of receiving grants from the
4-41     Office of Rural Health Policy of the United States Department of
4-42     Health and Human Services under 42 U.S.C. Section 254r; and
4-43                 (9)  manage the state's Medicare rural hospital
4-44     flexibility program under 42 U.S.C. Section 1395i-4.
4-45           Sec. 487.052.  RULES. The executive committee may adopt rules
4-46     as necessary to implement this chapter.
4-47           Sec. 487.053.  GIFTS AND GRANTS. (a)  The office may accept
4-48     gifts, grants, and donations from any organization for the purpose
4-49     of funding any activity under this chapter, and the office shall
4-50     actively seek funding from appropriate nonprofit foundations.
4-51           (b)  All gifts, grants, and donations must be accepted in an
4-52     open meeting by a majority of the voting members of the executive
4-53     committee and reported in the public record of the meeting with the
4-54     name of the donor and purpose of the gift, grant, or donation.
4-55           Sec. 487.054.  ANNUAL MEETING ON RURAL ISSUES. (a)  At least
4-56     once each year, the following agency heads shall meet to discuss
4-57     rural issues:
4-58                 (1)  the commissioner of agriculture;
4-59                 (2)  the executive director of the Public Utility
4-60     Commission of Texas;
4-61                 (3)  the director of the Texas Agricultural Extension
4-62     Service;
4-63                 (4)  the presiding officer of the Telecommunications
4-64     Infrastructure Fund Board;
4-65                 (5)  the executive director of the Texas Department of
4-66     Housing and Community Affairs;
4-67                 (6)  the commissioner of health;
4-68                 (7)  the executive administrator of the Texas Water
4-69     Development Board;
 5-1                 (8)  the executive director of the Parks and Wildlife
 5-2     Department;
 5-3                 (9)  the commissioner of human services;
 5-4                 (10)  the commissioner of higher education;
 5-5                 (11)  the comptroller; and
 5-6                 (12)  the executive director of the Texas Department of
 5-7     Transportation.
 5-8           (b)  The executive committee shall call the annual meeting.
 5-9     The executive committee shall set the time and date of the meeting
5-10     after consulting with the agency heads listed in Subsection (a).
5-11           Sec. 487.055.  ADVISORY COMMITTEES. The executive committee
5-12     may appoint advisory committees as necessary to assist the
5-13     executive committee in performing its duties.  An advisory
5-14     committee may be composed of private citizens and representatives
5-15     from state and local governmental entities.  A state or local
5-16     governmental entity shall appoint a representative to an advisory
5-17     committee at the request of the executive committee.  Chapter 2110
5-18     does not apply to an advisory committee created under this section.
5-19           Sec. 487.056.  REPORT TO LEGISLATURE. Not later than January
5-20     1 of each odd-numbered year, the office shall submit a biennial
5-21     report to the legislature regarding the activities of the office
5-22     and any findings and recommendations relating to rural issues.
5-23           Sec. 487.057.  RURAL HEALTH WORK PLAN. (a)  The office shall
5-24     develop, implement, and update a rural health work plan.
5-25           (b)  The office shall submit the rural health work plan to
5-26     the executive committee for approval.  The executive committee
5-27     shall approve the rural health work plan not later than August 1 of
5-28     each odd-numbered year.
5-29           (c)  The office shall work with health care providers, rural
5-30     communities, universities, and all health and human service related
5-31     state agencies to develop the rural health work plan.  The office
5-32     shall solicit public comment on the rural health work plan.
5-33           (d)  The rural health work plan must identify:
5-34                 (1)  the mission, goals, and objectives of how the
5-35     office will work to assist rural communities in meeting rural
5-36     health care needs;
5-37                 (2)  ways for the state to effectively and creatively
5-38     address the unmet health care needs of rural communities;
5-39                 (3)  ways to coordinate the administration and delivery
5-40     of rural health care service with federal, state, and local public
5-41     and private programs that provide similar services; and
5-42                 (4)  the office's priorities to accomplish the
5-43     objectives of the plan.
5-44           Sec. 487.058.  CONTRACT FOR ADMINISTRATIVE SERVICES. (a)  The
5-45     office shall enter into an interagency contract with another state
5-46     agency to provide routine administrative services for the office.
5-47           (b)  The Legislative Budget Board and the Department of
5-48     Information Resources shall:
5-49                 (1)  evaluate and recommend the most efficient and
5-50     appropriate ways to obtain the administrative services under
5-51     Subsection (a); and
5-52                 (2)  assist the office with contracting and any other
5-53     matters relating to obtaining the administrative services in the
5-54     most efficient manner.
5-55              (Sections 487.059-487.100 reserved for expansion
5-56                   SUBCHAPTER D. OUTSTANDING RURAL SCHOLAR
5-57             RECOGNITION AND LOAN PROGRAM FOR RURAL HEALTH CARE
5-58           Sec. 487.101.  DEFINITIONS. In this subchapter:
5-59                 (1)  "Selection committee" means the Outstanding Rural
5-60     Scholar Selection Committee.
5-61                 (2)  "Fund" means the outstanding rural scholar fund.
5-62                 (3)  "Postsecondary educational institution" means:
5-63                       (A)  an institution of higher education, as
5-64     defined by Section 61.003, Education Code;
5-65                       (B)  a nonprofit, independent institution
5-66     approved under Section 61.222, Education Code; or
5-67                       (C)  a nonprofit, health-related school or
5-68     program accredited by the Southern Association of Colleges and
5-69     Schools, the Liaison Committee on Medical Education, the American
 6-1     Osteopathic Association, the Board of Nurse Examiners, the Board of
 6-2     Vocational Nurse Examiners, or, in the case of allied health, an
 6-3     accrediting body recognized by the United States Department of
 6-4     Education.
 6-5                 (4)  "Program" means the outstanding rural scholar
 6-6     recognition and loan program for rural health care.
 6-7                 (5)  "Rural community" means a municipality in a
 6-8     nonmetropolitan county as defined by the United States Census
 6-9     Bureau in its most recent census.
6-10           Sec. 487.102.  ADMINISTRATION. The office shall administer or
6-11     contract for the administration of the program.
6-12           Sec. 487.103.  SELECTION COMMITTEE. (a)  The selection
6-13     committee shall advise the executive committee on the progress of
6-14     the program.
6-15           (b)  The selection committee is composed of 12 members
6-16     appointed by the executive committee.
6-17           (c)  The executive committee shall consider geographical
6-18     representation in making appointments to the selection committee.
6-19           (d)  Selection committee members serve for staggered
6-20     three-year terms, with the terms of four members expiring August 31
6-21     of each year. A member is eligible for reappointment to consecutive
6-22     terms.
6-23           (e)  A member of the selection committee is not entitled to
6-24     reimbursement for expenses incurred in performing duties under this
6-25     subchapter.
6-26           Sec. 487.104.  SELECTION OF OUTSTANDING RURAL SCHOLARS. (a)
6-27     The selection committee shall select outstanding rural scholars
6-28     through a statewide competition.
6-29           (b)  The selection committee shall make selections based on
6-30     criteria approved by the executive committee and adopted as a rule
6-31     of the office.
6-32           (c)  The selection committee may not use the applicant's
6-33     performance on a standardized test as the sole criterion to
6-34     determine the applicant's selection as an outstanding rural
6-35     scholar.
6-36           (d)  The selection committee shall recommend to the executive
6-37     committee guidelines to be used by rural communities in the
6-38     selection of students for nomination and sponsorship as outstanding
6-39     rural scholars.
6-40           (e)  An outstanding rural scholar receives public recognition
6-41     and a certificate of award and is eligible for a forgivable loan
6-42     under this subchapter.
6-43           Sec. 487.105.  ELIGIBILITY FOR OUTSTANDING RURAL SCHOLAR
6-44     COMPETITION.  (a)  To be eligible to participate in the competition
6-45     under Section 487.104, a high school student or an undergraduate
6-46     student at a postsecondary educational institution must:
6-47                 (1)  be nominated and sponsored by a rural community,
6-48     which sponsorship must include financial support;
6-49                 (2)  be a Texas resident under Subchapter B, Chapter
6-50     54, Education Code;
6-51                 (3)  if the person is a high school student, be in the
6-52     upper 25 percent of the student's high school class, if the class
6-53     contains 48 or more students, and intend to enter a postsecondary
6-54     educational institution; and
6-55                 (4)  if the person is an undergraduate student, be in
6-56     the upper 25 percent of the student's class or have a cumulative
6-57     grade average that is equal to or greater than the equivalent of a
6-58     3.0 on a 4.0 scale and be enrolled in a postsecondary educational
6-59     institution.
6-60           (b)  If a person is neither a high school student nor an
6-61     undergraduate student, the person must be eligible for
6-62     participation in the competition under rules adopted by the office.
6-63           Sec. 487.106.  ELIGIBILITY FOR LOANS; RURAL COMMUNITY
6-64     FINANCIAL SUPPORT.  (a)  For an outstanding rural scholar to be
6-65     eligible for a forgivable loan, community sponsorship must include
6-66     financial support.
6-67           (b)  Community financial support consists of a commitment to
6-68     fund 50 percent of the costs of a scholar's tuition, fees,
6-69     educational materials, and living expenses.
 7-1           (c)  The financial support under this section may be
 7-2     satisfied wholly or partly by a grant, a scholarship, or private
 7-3     foundation support.
 7-4           (d)  Evidence of the financial support must be submitted with
 7-5     a community's nomination.
 7-6           Sec. 487.107.  AWARDING OF LOANS.  (a)  The selection
 7-7     committee shall recommend to the executive committee guidelines for
 7-8     the awarding of forgivable loans to outstanding rural scholars.
 7-9           (b)  The executive committee, acting on the advice of the
7-10     selection committee, shall award forgivable loans to outstanding
7-11     rural scholars based on the availability of money in the fund.
7-12           (c)  If in any year the fund is inadequate to provide loans
7-13     to all eligible applicants, the executive committee shall award
7-14     forgivable loans on a priority basis according to the applicants'
7-15     academic performance, test scores, and other criteria of
7-16     eligibility.
7-17           Sec. 487.108.  AMOUNT OF LOAN.  (a)  On confirmation of an
7-18     outstanding rural scholar's admission to a postsecondary
7-19     educational institution, or on receipt of an enrollment report of
7-20     the scholar at a postsecondary educational institution, and a
7-21     certification of the amount of financial support needed, the
7-22     selection committee annually shall recommend to the executive
7-23     committee that the committee award a forgivable loan to the scholar
7-24     in the amount of 50 percent of the cost of the scholar's tuition,
7-25     fees, educational materials, and living expenses.
7-26           (b)  An outstanding rural scholar may receive another grant,
7-27     loan, or scholarship for which the scholar is eligible in addition
7-28     to the receipt of a forgivable loan, except that the total amount
7-29     of funds received may not exceed the reasonable needs of the
7-30     scholar.
7-31           Sec. 487.109.  LOAN FORGIVENESS.  (a)  The principal balance
7-32     and interest for one year of a forgivable loan awarded to an
7-33     outstanding rural scholar must be forgiven for each year the
7-34     scholar practices as a health care professional in the sponsoring
7-35     community.
7-36           (b)  The sponsoring community shall report to the executive
7-37     committee the length of time the scholar practices as a health care
7-38     professional in the community.
7-39           (c)  If the executive committee finds that a sponsoring
7-40     community is not in need of the scholar's services and that the
7-41     community is willing to forgive repayment of the principal balance
7-42     and interest of the scholar's loan, the executive committee by rule
7-43     may provide for the principal balance and interest of one year of
7-44     the scholar's loan to be forgiven for each year the scholar
7-45     practices in another rural community in this state.
7-46           (d)  Any amount of loan principal or interest that is not
7-47     forgiven under this section shall be repaid to the office with
7-48     reasonable collection fees in a timely manner as provided by
7-49     executive committee rule.
7-50           Sec. 487.110.  FUND.  (a)  The outstanding rural scholar fund
7-51     is in the state treasury.
7-52           (b)  The fund consists of legislative appropriations, gifts,
7-53     grants, donations, the market value of in-kind contributions, and
7-54     principal and interest payments on forgivable loans deposited to
7-55     the credit of the fund by the office.
7-56           (c)  The office shall administer the fund.
7-57           (d)  The office shall allocate the fund, as available, for
7-58     forgivable loans  under this subchapter.
7-59           (e)  The office shall deposit any principal and interest
7-60     payments on forgivable loans to the credit of the fund.
7-61           Sec. 487.111.  POSTSECONDARY EDUCATIONAL INSTITUTIONS;
7-62     MONITORING.  (a)  A postsecondary educational institution shall
7-63     provide to the selection committee a copy of the academic
7-64     transcript of each rural scholar for whom the institution has
7-65     received a release that complies with state and federal open
7-66     records laws and authorizes the provision of a transcript.
7-67           (b)  The office shall require reports from students and
7-68     postsecondary educational institutions as needed to monitor the
7-69     program.  After receiving any necessary releases as a condition of
 8-1     providing assistance, the office shall distribute reports relating
 8-2     to the progress of an outstanding rural scholar to the community
 8-3     sponsoring the scholar.
 8-4           Sec. 487.112.  ADOPTION AND DISTRIBUTION OF RULES.  (a)  The
 8-5     executive committee shall adopt reasonable rules to enforce the
 8-6     requirements, conditions, and limitations under this subchapter.
 8-7           (b)  The executive committee shall set the rate of interest
 8-8     charged on a forgivable loan under this subchapter.
 8-9           (c)  The executive committee shall adopt rules necessary to
8-10     ensure compliance with the federal Civil Rights Act of 1964 (42
8-11     U.S.C. Section 2000a et seq.) concerning nondiscrimination in
8-12     admissions.
8-13              (Sections 487.113-487.150 reserved for expansion
8-14        SUBCHAPTER E. HEALTH CAREERS PROMOTION AND EDUCATION PROGRAM
8-15           Sec. 487.151.  DEFINITIONS.  In this subchapter:
8-16                 (1)  "Fund" means the health careers education fund.
8-17                 (2)  "Postsecondary educational institution" means:
8-18                       (A)  an institution of higher education, as
8-19     defined by Section 61.003, Education Code;
8-20                       (B)  a nonprofit, independent institution
8-21     approved under Section 61.222, Education Code; or
8-22                       (C)  a nonprofit, health-related school or
8-23     program accredited by the Southern Association of Colleges and
8-24     Schools, the Liaison Committee on Medical Education, the American
8-25     Osteopathic Association, the Board of Nurse Examiners, the Board of
8-26     Vocational Nurse Examiners, or, in the case of allied health, an
8-27     accrediting body recognized by the United States Department of
8-28     Education.
8-29                 (3)  "Program" means the health careers promotion and
8-30     education program.
8-31                 (4)  "Qualified area" means an area qualifying under
8-32     the National Health Services Corps Community Scholarship Program or
8-33     an area with similar characteristics as identified by the office.
8-34           Sec. 487.152.  ADMINISTRATION.  (a)  The office shall
8-35     administer or contract for the administration of the program.
8-36           (b)  The office may solicit and accept gifts, grants,
8-37     donations, and contributions to support the program.
8-38           Sec. 487.153.  HEALTH CAREERS PROMOTION.  The office may
8-39     establish a program to work with students, communities, and
8-40     community-based organizations to encourage high school students to
8-41     pursue health care professional careers. The office shall give
8-42     priority to working with communities and students in qualified
8-43     areas.
8-44           Sec. 487.154.  LOANS.  (a)  The executive committee may award
8-45     forgivable educational loans to eligible students under this
8-46     subchapter.
8-47           (b)  The executive committee may award forgivable loans to
8-48     eligible students based on the availability of money in the fund.
8-49           (c)  If in any year the fund is inadequate to provide loans
8-50     to all eligible students, the executive committee may award
8-51     forgivable loans on a priority basis according to the students'
8-52     academic performance, test scores, and other criteria of
8-53     eligibility.
8-54           Sec. 487.155.  STUDENT ELIGIBILITY. (a)  To be eligible to
8-55     receive a loan under this subchapter, a student must:
8-56                 (1)  be sponsored by an eligible community;
8-57                 (2)  at the time of the application for the loan, be
8-58     enrolled in high school or enrolled or accepted for enrollment in a
8-59     postsecondary educational institution in this state;
8-60                 (3)  meet academic requirements as established by the
8-61     executive committee;
8-62                 (4)  plan to complete a health care professional degree
8-63     or certificate program;
8-64                 (5)  plan to practice as a health care professional in
8-65     a qualified area of the state; and
8-66                 (6)  meet other requirements as established by the
8-67     executive committee.
8-68           (b)  Other requirements for eligibility for a loan under this
8-69     subchapter must include:
 9-1                 (1)  one or more interviews with the student; and
 9-2                 (2)  a statement written by the student of the
 9-3     student's reasons for:
 9-4                       (A)  entering the health care profession; and
 9-5                       (B)  wanting to provide health care services to a
 9-6     qualified area in this state.
 9-7           Sec. 487.156.  COMMUNITY ELIGIBILITY. (a)  To be eligible to
 9-8     sponsor a student under this subchapter, a community must:
 9-9                 (1)  be located in a qualified area in this state; and
9-10                 (2)  provide evidence of community sponsorship of the
9-11     student.
9-12           (b)  Community sponsorship consists of:
9-13                 (1)  a commitment to pay for a percentage of the
9-14     student's postsecondary educational expenses, including tuition,
9-15     fees, educational materials, and living expenses; and
9-16                 (2)  a commitment to employ the student on a full-time
9-17     basis as a health care professional on the student's completion of
9-18     the academic program and licensure or certification in the health
9-19     care profession for which the student is sponsored.
9-20           (c)  The executive committee shall determine the percentage
9-21     of educational expenses communities are required to provide under
9-22     this section.
9-23           (d)  Community financial support may be satisfied wholly or
9-24     partly by a grant, a scholarship, or private foundation support.
9-25           Sec. 487.157.  AMOUNT OF LOAN.  (a)  On confirmation of an
9-26     eligible student's admission to a postsecondary educational
9-27     institution, or on receipt of an enrollment report of the student
9-28     at a postsecondary educational institution, and certification of
9-29     the amount of financial support needed, the executive committee may
9-30     award a forgivable loan to the student in the amount of not more
9-31     than the cost of the student's tuition, fees, educational
9-32     materials, and living expenses.
9-33           (b)  An eligible student may receive another grant, loan, or
9-34     scholarship for which the student is eligible in addition to the
9-35     receipt of a forgivable loan, except that the total amount of funds
9-36     received may not exceed the reasonable needs of the student as
9-37     determined by the postsecondary educational institution in which
9-38     the student is enrolled.
9-39           Sec. 487.158.  REQUIRED CONTRACT.  (a)  A student may receive
9-40     assistance under this subchapter only if the student signs a
9-41     contract agreeing to provide health care services to the sponsoring
9-42     community on completion of the academic program and licensure or
9-43     certification in the health care profession for which the student
9-44     is sponsored.
9-45           (b)  The contract must provide that if the student does not
9-46     provide the required services to the community or provides those
9-47     services for less than the required time, the student is personally
9-48     liable to the state for:
9-49                 (1)  the total amount of assistance the student
9-50     receives from the office and the sponsoring community;
9-51                 (2)  interest on the total amount at a rate set by the
9-52     executive committee; and
9-53                 (3)  the state's reasonable expenses incurred in
9-54     obtaining payment, including reasonable attorney's fees.
9-55           Sec. 487.159.  LOAN FORGIVENESS. (a)  A loan recipient shall
9-56     be forgiven the principal and interest of one year's loan for each
9-57     year the recipient practices as a health care professional
9-58     providing health care services in the sponsoring community, but
9-59     only if the loan recipient practices as a health care professional
9-60     providing health care services in the sponsoring community or in
9-61     another qualified area under Subsection (b) for a minimum of two
9-62     years.
9-63           (b)  If the executive committee finds that a sponsoring
9-64     community is not in need of the student's services and that the
9-65     community is willing to forgive repayment of the principal balance
9-66     and interest of the student's loan, the executive committee by rule
9-67     may provide for the principal balance and interest of the student's
9-68     loan to be forgiven if the student provides services in another
9-69     qualified area in this state.
 10-1          Sec. 487.160.  FUND.  (a)  The health careers education fund
 10-2    is established in the state treasury.
 10-3          (b)  The office shall administer the fund.
 10-4          (c)  The fund consists of gifts, grants, donations, the
 10-5    market value of in-kind contributions, and principal and interest
 10-6    payments on forgivable loans deposited to the credit of the fund by
 10-7    the office.
 10-8          (d)  The office shall deposit any principal and interest
 10-9    payments on forgivable loans to the credit of the fund.
10-10          (e)  The office shall allocate the fund, as available, for
10-11    forgivable loans and community repayment under this subchapter.
10-12          (f)  Unless otherwise provided by the General Appropriations
10-13    Act, the office may use money appropriated to the office to support
10-14    the fund.
10-15          Sec. 487.161.  REPORTING; MONITORING.  (a)  The office shall
10-16    require reports from students, communities, and postsecondary
10-17    educational institutions as needed to monitor the program.  After
10-18    receiving any necessary releases as a condition of providing
10-19    assistance, the office shall distribute reports relating to the
10-20    progress of a student to the community sponsoring the student.
10-21          (b)  The sponsoring community shall report to the executive
10-22    committee the length of time the student provides health care
10-23    services in the community in accordance with the guidelines
10-24    established by the executive committee.
10-25          (c)  A postsecondary educational institution shall provide to
10-26    the executive committee a copy of the academic transcript of each
10-27    student for whom the institution has received a release that
10-28    complies with state and federal open records laws and that
10-29    authorizes the provision of the transcript.
10-30          Sec. 487.162.  PROGRAM PROMOTION.  The office shall provide
10-31    postsecondary educational institutions and communities in qualified
10-32    areas with information about health care careers and loan
10-33    opportunities, including information on eligibility and
10-34    availability of funds under this subchapter.
10-35          Sec. 487.163.  ADOPTION OF RULES.  (a)  The executive
10-36    committee shall adopt reasonable rules to enforce the requirements,
10-37    conditions, and limitations of this subchapter.
10-38          (b)  The executive committee shall set the rate of interest
10-39    charged on a forgivable loan under this subchapter.
10-40          (c)  The executive committee shall adopt rules necessary to
10-41    ensure compliance with the federal Civil Rights Act of 1964 (42
10-42    U.S.C. Section 2000a et seq.) concerning nondiscrimination in
10-43    admissions.
10-44             (Sections 487.164-487.200 reserved for expansion
10-45            SUBCHAPTER F. MEDICALLY UNDERSERVED COMMUNITY-STATE
10-46                        MATCHING INCENTIVE PROGRAM
10-47          Sec. 487.201.  DEFINITIONS. In this subchapter:
10-48                (1)  "Medically underserved community" means:
10-49                      (A)  a community located in an area in this state
10-50    with a medically underserved population;
10-51                      (B)  a community located in an area in this state
10-52    designated by the United States secretary of health and human
10-53    services as an area with a shortage of personal health services;
10-54                      (C)  a population group designated by the United
10-55    States secretary of health and human services as having a shortage
10-56    of personal health services;
10-57                      (D)  a community designated under state or
10-58    federal law as a medically underserved community; or
10-59                      (E)  a community that the office considers to be
10-60    medically underserved based on relevant demographic, geographic,
10-61    and environmental factors.
10-62                (2)  "Physician" means a person licensed to practice
10-63    medicine in this state.
10-64                (3)  "Primary care" means physician services in family
10-65    practice, general practice, internal medicine, pediatrics,
10-66    obstetrics, or gynecology.
10-67                (4)  "Start-up money" means a payment made by a
10-68    medically underserved community for reasonable costs incurred by a
10-69    physician to establish a medical office and ancillary facilities
 11-1    for diagnosing and treating patients.
 11-2          Sec. 487.202.  PROGRAM. (a)  The executive committee shall
 11-3    establish and administer a program under this subchapter to
 11-4    increase the number of physicians providing primary care in
 11-5    medically underserved communities.
 11-6          (b)  A medically underserved community may sponsor a
 11-7    physician who has completed a primary care residency program and
 11-8    has agreed to provide primary care in the community by contributing
 11-9    start-up money for the physician and having that contribution
11-10    matched wholly or partly by state money appropriated to the
11-11    executive committee for that purpose.
11-12          (c)  A participating medically underserved community may
11-13    provide start-up money to an eligible physician over a two-year
11-14    period.
11-15          (d)  The executive committee may not pay more than $25,000 to
11-16    a community in a fiscal year unless the executive committee makes a
11-17    specific finding of need by the community.
11-18          (e)  The executive committee shall establish priorities so
11-19    that the neediest communities eligible for assistance under this
11-20    subchapter are assured the receipt of a grant.
11-21          Sec. 487.203.  ELIGIBILITY. To be eligible to receive money
11-22    from the executive committee, a medically underserved community
11-23    must:
11-24                (1)  apply for the money; and
11-25                (2)  provide evidence satisfactory to the executive
11-26    committee that it has entered into an agreement with a physician
11-27    for the physician to provide primary care in the community for at
11-28    least two years.
11-29          Sec. 487.204.  RULES. The executive committee shall adopt
11-30    rules necessary for the administration of this subchapter,
11-31    including rules addressing:
11-32                (1)  eligibility criteria for a medically underserved
11-33    community;
11-34                (2)  eligibility criteria for a physician;
11-35                (3)  minimum and maximum community contributions to the
11-36    start-up money for a physician to be matched with state money;
11-37                (4)  conditions under which state money must be repaid
11-38    by a community or physician;
11-39                (5)  procedures for disbursement of money by the
11-40    executive committee;
11-41                (6)  the form and manner in which a community must make
11-42    its contribution to the start-up money; and
11-43                (7)  the contents of an agreement to be entered into by
11-44    the parties, which must include at least:
11-45                      (A)  a credit check for an eligible physician;
11-46    and
11-47                      (B)  community retention of interest in any
11-48    property, equipment, or durable goods for seven years.
11-49             (Sections 487.205-487.250 reserved for expansion)
11-50                 SUBCHAPTER G. TEXAS HEALTH SERVICE CORPS
11-51                  PROGRAM FOR MEDICALLY UNDERSERVED AREAS
11-52          Sec. 487.251.  DEFINITIONS. In this subchapter:
11-53                (1)  "Medically underserved area" means an area
11-54    designated by the United States secretary of health and human
11-55    services as having:
11-56                      (A)  a shortage of personal health services or a
11-57    population group that has such a shortage as provided by 42 U.S.C.
11-58    Section 300e-1(7); or
11-59                      (B)  a health professional shortage as provided
11-60    by 42 U.S.C. Section 254e(a)(1).
11-61                (2)  "Physician" means a resident physician who is
11-62    enrolled in an accredited residency training program in this state
11-63    in the specialty of:
11-64                      (A)  family practice;
11-65                      (B)  general internal medicine;
11-66                      (C)  general pediatric medicine; or
11-67                      (D)  general obstetrics and gynecology.
11-68          Sec. 487.252.  TEXAS HEALTH SERVICE CORPS PROGRAM. (a)  The
11-69    executive committee shall establish a program in the office to
 12-1    assist communities in recruiting and retaining physicians to
 12-2    practice in medically underserved areas.
 12-3          (b)  The executive committee by rule shall establish:
 12-4                (1)  eligibility criteria for applicants;
 12-5                (2)  stipend application procedures;
 12-6                (3)  guidelines relating to stipend amounts;
 12-7                (4)  procedures for evaluating stipend applications;
 12-8    and
 12-9                (5)  a system of priorities relating to the:
12-10                      (A)  geographic areas covered;
12-11                      (B)  medical specialties eligible to receive
12-12    funding under the program; and
12-13                      (C)  level of stipend support.
12-14          Sec. 487.253.  ADMINISTRATION. (a)  The executive committee
12-15    shall adopt rules necessary to administer this subchapter, and the
12-16    office shall administer the program in accordance with those rules.
12-17          (b)  The office may not spend for the office's administrative
12-18    costs in administering the program more than 10 percent of the
12-19    amount appropriated to implement this subchapter.
12-20          Sec. 487.254.  REQUIRED CONTRACT. (a)  The office may award a
12-21    stipend to a physician under this subchapter if the physician
12-22    enters into a written contract to provide services in a medically
12-23    underserved area for at least one year for each year that the
12-24    physician receives the stipend.
12-25          (b)  The contract must provide that if the physician does not
12-26    provide the required services in the medically underserved area or
12-27    provides those services for less than the required term, the
12-28    physician is personally liable to the state for:
12-29                (1)  the total amount of the stipend the physician
12-30    receives;
12-31                (2)  interest on that total amount for the period
12-32    beginning on the date the physician signs the contract and ending
12-33    on the date the physician repays the amount of the stipend computed
12-34    at a rate equal to the sum of:
12-35                      (A)  the auction average rate quoted on a bank
12-36    discount basis for 26-week treasury bills issued by the United
12-37    States government, as published by the Federal Reserve Board, for
12-38    the week preceding the week in which the contract is signed; and
12-39                      (B)  five percent; and
12-40                (3)  the state's reasonable expenses incurred in
12-41    obtaining payment, including reasonable attorney's fees.
12-42          Sec. 487.255.  STIPENDS. (a)  The office shall award stipends
12-43    to physicians for one-year periods. A stipend awarded under this
12-44    subchapter may not exceed $15,000 each year.
12-45          (b)  The office may renew a stipend used to assist a
12-46    particular physician.
12-47          (c)  A physician is not eligible for a stipend under this
12-48    subchapter for a period longer than is ordinarily and customarily
12-49    required for the completion of residency training for first board
12-50    eligibility.
12-51          (d)  A physician who receives a stipend under this subchapter
12-52    is not eligible to receive assistance under a state educational
12-53    loan repayment program or other state incentive program.
12-54          Sec. 487.256.  FUNDING. The office may seek, receive, and
12-55    spend money received through an appropriation, grant, donation, or
12-56    reimbursement from any public or private source to implement this
12-57    subchapter.
12-58             (Sections 487.257-487.300 reserved for expansion)
12-59          SUBCHAPTER H. RURAL HEALTH FACILITY CAPITAL IMPROVEMENT
12-60          Sec. 487.301.  DEFINITIONS. In this subchapter:
12-61                (1)  "Public hospital" means a general or special
12-62    hospital licensed under Chapter 241, Health and Safety Code, that
12-63    is owned or operated by a municipality, county, municipality and
12-64    county, hospital district, or hospital authority and that performs
12-65    inpatient or outpatient services.
12-66                (2)  "Rural county" means:
12-67                      (A)  a county that has a population of 150,000 or
12-68    less; or
12-69                      (B)  with respect to a county that has a
 13-1    population of more than 150,000 and that contains a geographic area
 13-2    that is not delineated as urbanized by the federal census bureau,
 13-3    that part of the county that is not delineated as urbanized.
 13-4          Sec. 487.302.  POWERS OF OFFICE. In administering this
 13-5    subchapter, the office may:
 13-6                (1)  enter into and enforce contracts and execute and
 13-7    deliver conveyances and other instruments necessary to make and
 13-8    administer grants, loans, and loan guarantees under this
 13-9    subchapter;
13-10                (2)  employ personnel and counsel necessary to
13-11    implement this subchapter and pay them from money appropriated for
13-12    that purpose;
13-13                (3)  impose and collect reasonable fees and charges in
13-14    connection with grants, loans, and loan guarantees made under this
13-15    subchapter and provide reasonable penalties for delinquent payment
13-16    of fees, charges, or loan repayments;
13-17                (4)  take and enforce a mortgage or appropriate
13-18    security interest in real or personal property that a loan
13-19    recipient acquires with the proceeds of a loan made under this
13-20    subchapter; and
13-21                (5)  adopt rules necessary to implement the grant,
13-22    loan, and loan guarantee program.
13-23          Sec. 487.303.  GRANT, LOAN, AND LOAN GUARANTEE PROGRAM. (a)
13-24    The office may use money appropriated to the office under Section
13-25    403.1065 to make a grant or low-interest loan to, or guarantee a
13-26    loan for, a public or nonprofit hospital located in a rural county.
13-27          (b)  A grant, loan, or loan guarantee recipient may use the
13-28    money only to make capital improvements to existing health
13-29    facilities located in a rural county, to construct new health
13-30    facilities in a rural county, or to purchase capital equipment,
13-31    including information systems hardware and software, for a health
13-32    facility located in a rural county.
13-33          Sec. 487.304.  ELIGIBILITY FOR GRANT, LOAN, OR LOAN
13-34    GUARANTEE; INTEREST RATE. (a)  The office shall adopt rules that
13-35    establish eligibility criteria for receiving a grant, loan, or loan
13-36    guarantee under this subchapter.
13-37          (b)  The rules must state generally the factors the office
13-38    will consider in determining whether an applicant should receive a
13-39    grant, loan, or loan guarantee. The rules must consider at least
13-40    the financial need of the applicant, the health care needs of the
13-41    rural area served by the applicant, and the probability that the
13-42    applicant will effectively and efficiently use the money obtained
13-43    through the grant, loan, or loan guarantee to meet the health care
13-44    needs of the rural area served by the applicant.
13-45          (c)  The rules must state generally the factors the office
13-46    will consider in determining the extent to which the interest rate
13-47    on a loan should be below market rates.
13-48          SECTION 2. Sections 2306.098, 2306.099, and 2306.100,
13-49    Government Code, are transferred to Chapter 487, Government Code,
13-50    redesignated as Subchapter I, Chapter 487, Government Code, and
13-51    amended to read as follows:
13-52                SUBCHAPTER I.  COMMUNITY DEVELOPMENT BLOCK
13-53                       GRANT NONENTITLEMENT PROGRAM
13-54          Sec. 487.351 [2306.098].  ADMINISTRATION OF COMMUNITY
13-55    DEVELOPMENT BLOCK GRANT PROGRAM; ALLOCATION OF FUNDS. (a)  The
13-56    office [department] shall, under the Omnibus Budget Reconciliation
13-57    Act of 1981 (Pub.L. No. 97-35) and 24 CFR, Part 570, Subpart I,
13-58    administer the state's allocation of federal funds provided under
13-59    the community development block grant nonentitlement program
13-60    authorized by Title I of the Housing and Community Development Act
13-61    of 1974 (42 U.S.C. Section 5301 et seq.).
13-62          (b)  Community development block grant program funds shall be
13-63    allocated to eligible counties and municipalities under office
13-64    [department] rules.
13-65          Sec. 487.352 [2306.099].  TRANSFER OF FEDERAL FUNDS. (a)  The
13-66    office [department] may enter into an interagency agreement with
13-67    the Department of Agriculture [Texas Department of Commerce] to
13-68    reimburse the Department of Agriculture [Texas Department of
13-69    Commerce] for providing on behalf of the office [department]
 14-1    marketing, underwriting, and any other services on the portion of
 14-2    the federal community development block grant funds allocated by
 14-3    the office [department] for economic development activities.
 14-4          (b)  The office [department] shall allocate not more than 20
 14-5    percent of the federal funds received by the office [department] to
 14-6    the Department of Agriculture [Texas Department of Commerce] to be
 14-7    used for economic development activities.
 14-8          (c)  The office shall allocate not more than five percent of
 14-9    the funds allocated to the Department of Agriculture under
14-10    Subsection (b) to be used for county economic and management
14-11    development.
14-12          (d)  The office shall monitor the activities undertaken by
14-13    the Department of Agriculture [Texas Department of Commerce] under
14-14    this section [must be monitored by the department].
14-15          Sec. 487.353 [2306.100].  STATE COMMUNITY DEVELOPMENT REVIEW
14-16    COMMITTEE. (a)  The state community development review committee is
14-17    composed of 12 members appointed by the governor.
14-18          (b)  A committee member must be:
14-19                (1)  a member of the governing body of a county or
14-20    municipality eligible for funding under the community development
14-21    block grant program; or
14-22                (2)  a county or municipal employee who is a supervisor
14-23    and whose regular duties include involvement in community
14-24    development activities.
14-25          (c)  The ratio of county officials serving as committee
14-26    members to all committee members may not exceed the ratio of all
14-27    counties eligible for funding under the community development block
14-28    grant program to all eligible applicants.
14-29          (d)  The governor shall designate the presiding officer of
14-30    the committee, who serves at the governor's pleasure.
14-31          (e)  Committee members serve two-year terms expiring February
14-32    1 of each odd-numbered year.
14-33          (f)  A committee member serves without compensation for
14-34    service on the committee, but is entitled to reimbursement for
14-35    reasonable and necessary expenses incurred in performing the
14-36    member's duties.
14-37          (g)  Service on the committee by an officer or employee of a
14-38    county or municipality is an additional duty of the individual's
14-39    office or employment and is not dual office holding.
14-40          (h)  The committee shall meet at least twice annually at the
14-41    executive director's call.
14-42          (i)  The committee shall:
14-43                (1)  consult with and advise the executive director on
14-44    the administration and enforcement of the community development
14-45    block grant program; and
14-46                (2)  review funding applications of eligible counties
14-47    and municipalities and advise and assist the executive director
14-48    regarding the allocation of program funds to those applicants.
14-49          (j)  The committee may annually recommend to the executive
14-50    director a formula for allocating funds to each geographic state
14-51    planning region established by the governor under Chapter 391,
14-52    Local Government Code.  The formula must give preference to regions
14-53    according to the regions' needs.
14-54          SECTION 3. Section 38.011(j), Education Code, as added by
14-55    Chapter 1418, Acts of the 76th Legislature, Regular Session, 1999,
14-56    is amended to read as follows:
14-57          (j)  The requirements prescribed by Subsection (i) apply only
14-58    to a school-based health center serving an area that:
14-59                (1)  is located in a county with a population not
14-60    greater than 50,000; or
14-61                (2)  has been designated under state or federal law as:
14-62                      (A)  a health professional shortage area;
14-63                      (B)  a medically underserved area; or
14-64                      (C)  a medically underserved community by the
14-65    Office of Rural Community Affairs [Center for Rural Health
14-66    Initiatives].
14-67          SECTION 4. Section 51.918(a), Education Code, is amended to
14-68    read as follows:
14-69          (a)  The Texas Higher Education Coordinating Board, the
 15-1    Office of Rural Community Affairs [Center for Rural Health
 15-2    Initiatives in the Texas Department of Health], medical schools,
 15-3    nursing schools, and schools of allied health sciences shall
 15-4    cooperate to improve and expand programs for rural areas.
 15-5          SECTION 5.  Section 51.918(c), Education Code, as amended by
 15-6    Chapters 349 and 965, Acts of the 74th Legislature, Regular
 15-7    Session, 1995, is reenacted and amended to read as follows:
 15-8          (c)  The Office of Rural Community Affairs [Center for Rural
 15-9    Health Initiatives] shall develop relief service programs for rural
15-10    physicians and allied health personnel to facilitate ready access
15-11    to continuing medical education as well as to provide [or] practice
15-12    coverage for purposes other than continuing medical education.
15-13          SECTION 6. Section 58.007(b)(1), Education Code, is amended
15-14    to read as follows:
15-15                (1)  The Primary Care Residency Advisory Committee is
15-16    created and shall consist of 12 members as follows:
15-17                      (A)  seven members shall be licensed physicians,
15-18    one appointed by each of the following:
15-19                            (i)  the Texas Medical Association;
15-20                            (ii)  the Texas Osteopathic Medical
15-21    Association;
15-22                            (iii)  the Texas Academy of Family
15-23    Physicians;
15-24                            (iv)  the Texas Society of the American
15-25    College of Osteopathic Family Physicians;
15-26                            (v)  the Texas Society of Internal
15-27    Medicine;
15-28                            (vi)  the Texas Pediatric Society; and
15-29                            (vii)  the Texas Association of
15-30    Obstetricians and Gynecologists;
15-31                      (B)  one member shall be appointed by the Office
15-32    of Rural Community Affairs [Center for Rural Health Initiatives];
15-33                      (C)  one member shall be appointed by the Bureau
15-34    of Community Oriented Primary Care at the Texas Department of
15-35    Health; and
15-36                      (D)  three members shall be members of the
15-37    public, one appointed by each of the following:
15-38                            (i)  the governor;
15-39                            (ii)  the lieutenant governor; and
15-40                            (iii)  the speaker of the house of
15-41    representatives.
15-42          SECTION 7. Section 403.1065(c), Government Code, is amended
15-43    to read as follows:
15-44          (c)  The available earnings of the fund may be appropriated
15-45    to the Office of Rural Community Affairs [Center for Rural Health
15-46    Initiatives] for the purposes of Subchapter H [G], Chapter 487
15-47    [106, Health and Safety Code].
15-48          SECTION 8. Section 86.011, Health and Safety Code, is amended
15-49    to read as follows:
15-50          Sec. 86.011.  BREAST CANCER SCREENING. (a)  The Office of
15-51    Rural Community Affairs [Center for Rural Health Initiatives] may
15-52    provide for breast cancer screening in counties with a population
15-53    of 50,000 or less.
15-54          (b)  The Office of Rural Community Affairs [Center for Rural
15-55    Health Initiatives] may provide the breast cancer screening through
15-56    contracts with public or private entities to provide mobile units
15-57    and on-site screening services.
15-58          (c)  The Office of Rural Community Affairs [Center for Rural
15-59    Health Initiatives] shall coordinate the breast cancer screening
15-60    with programs administered by the Texas Cancer Council.
15-61          SECTION 9. Sections 204.104(b) and (c), Occupations Code, are
15-62    amended to read as follows:
15-63          (b)  The Office of Rural Community Affairs [Center for Rural
15-64    Health Initiatives] shall establish policies for and adopt rules to
15-65    administer the loan program.
15-66          (c)  The physician assistant board shall authorize and the
15-67    medical board shall transfer annually the funds designated under
15-68    Subsection (a) to the Office of Rural Community Affairs [Center for
15-69    Rural Health Initiatives] to administer the loan program.
 16-1          SECTION 10. Chapter 106, Health and Safety Code, is repealed.
 16-2          SECTION 11. (a)  Not later than November 1, 2001, the
 16-3    governor, the lieutenant governor, and the speaker of the house of
 16-4    representatives shall appoint the initial members of the executive
 16-5    committee of the Office of Rural Community Affairs in accordance
 16-6    with Chapter 487, Government Code, as added by this Act.  Each
 16-7    appointing authority shall appoint one member for a term expiring
 16-8    February 1, 2003, one member for a term expiring February 1, 2005,
 16-9    and one member for a term expiring February 1, 2007.  The executive
16-10    committee may not take action until a majority of the members have
16-11    taken office.
16-12          (b)  The Office of Rural Community Affairs shall employ an
16-13    executive director in accordance with Chapter 487, Government Code,
16-14    as added by this Act, not later than December 1, 2001.
16-15          (c)  Not later than the 60th day after the date of the first
16-16    meeting of the executive committee of the Office of Rural Community
16-17    Affairs, the executive committee shall select a presiding officer.
16-18          SECTION 12. (a)  On the date by which a majority of the
16-19    members of the executive committee of the Office of Rural Community
16-20    Affairs have taken office, the Center for Rural Health Initiatives
16-21    is abolished and all powers, duties, obligations, rights,
16-22    contracts, leases, records, property, and unspent and unobligated
16-23    appropriations and other funds of the Center for Rural Health
16-24    Initiatives are transferred to the Office of Rural Community
16-25    Affairs.
16-26          (b)  The abolishment of the Center for Rural Health
16-27    Initiatives does not affect the validity of a right, privilege, or
16-28    obligation accrued, a contract or acquisition made, any liability
16-29    incurred, a permit or license issued, any penalty, forfeiture, or
16-30    punishment assessed, a rule adopted, a proceeding, investigation,
16-31    or remedy begun, a decision made, or other action taken by or in
16-32    connection with the Center for Rural Health Initiatives.
16-33          (c)  All rules, policies, procedures, and decisions of the
16-34    Center for Rural Health Initiatives are continued in effect as
16-35    rules, policies, procedures, and decisions of the Office of Rural
16-36    Community Affairs until superseded by a rule or other appropriate
16-37    action of the Office of Rural Community Affairs.
16-38          (d)  Any action or proceeding before the Center for Rural
16-39    Health Initiatives is transferred without change in status to the
16-40    Office of Rural Community Affairs, and the Office of Rural
16-41    Community Affairs assumes, without a change in status, the position
16-42    of the Center for Rural Health Initiatives in any action or
16-43    proceeding to which the Center for Rural Health Initiatives is a
16-44    party.
16-45          (e)  The Office of Rural Community Affairs is authorized to
16-46    employ the same number of full-time equivalent employees as the
16-47    Center for Rural Health Initiatives.
16-48          (f)  A fund or account administered by the Center for Rural
16-49    Health Initiatives is not considered to be abolished and re-created
16-50    by this Act but is considered to be transferred to the Office of
16-51    Rural Community Affairs.
16-52          (g)  Notwithstanding the changes in law made by this Act,
16-53    until the date the Center for Rural Health Initiatives is abolished
16-54    as provided by this Act, the Center for Rural Health Initiatives
16-55    shall continue to exercise the powers and duties assigned to the
16-56    Center for Rural Health Initiatives under the law as it existed
16-57    immediately before the effective date of this Act or as modified by
16-58    another Act of the 77th Legislature, Regular Session, 2001, that
16-59    becomes law, and the former law is continued in effect for that
16-60    purpose.
16-61          SECTION 13. (a)  On the date by which a majority of the
16-62    members of the executive committee of the Office of Rural Community
16-63    Affairs have taken office, all powers, duties, obligations, rights,
16-64    contracts, leases, records, personnel, property, and unspent and
16-65    unobligated appropriations and other funds of the Texas Department
16-66    of Housing and Community Affairs related to the federal community
16-67    development block grant nonentitlement program and to the community
16-68    affairs and community development program that provides
16-69    information, advice, and training to officials of communities of
 17-1    less than 10,000 people, including appropriations relating to the
 17-2    indirect costs and general administrative support of those
 17-3    programs, are transferred to the Office of Rural Community Affairs.
 17-4          (b)  The transfer of the federal community development block
 17-5    grant nonentitlement program to the Office of Rural Community
 17-6    Affairs does not affect the validity of a right, privilege, or
 17-7    obligation accrued, a contract or acquisition made, any liability
 17-8    incurred, a permit or license issued, any penalty, forfeiture, or
 17-9    punishment assessed, a rule adopted, a proceeding, investigation,
17-10    or remedy begun, a decision made, or other action taken by or in
17-11    connection with the program by the Texas Department of Housing and
17-12    Community Affairs.
17-13          (c)  All rules, policies, procedures, and decisions of the
17-14    Texas Department of Housing and Community Affairs related to the
17-15    federal community development block grant nonentitlement program
17-16    are continued in effect as rules, policies, procedures, and
17-17    decisions of the Office of Rural Community Affairs until superseded
17-18    by a rule or other appropriate action of the Office of Rural
17-19    Community Affairs.
17-20          (d)  Any action or proceeding before the Texas Department of
17-21    Housing and Community Affairs related to the federal community
17-22    development block grant nonentitlement program is transferred
17-23    without change in status to the Office of Rural Community Affairs,
17-24    and the Office of Rural Community Affairs assumes, without a change
17-25    in status, the position of the Texas Department of Housing and
17-26    Community Affairs in any action or proceeding related to the
17-27    program to which the Texas Department of Housing and Community
17-28    Affairs is a party.
17-29          (e)  A reference to the Texas Department of Economic
17-30    Development in a rule of the Texas Department of Housing and
17-31    Community Affairs relating to the administration of the Texas
17-32    Capital Fund means the Department of Agriculture.
17-33          (f)  A fund or account administered by the Texas Department
17-34    of Economic Development relating to the federal community
17-35    development block grant nonentitlement program is not considered to
17-36    be abolished and re-created by this Act but is considered to be
17-37    transferred to the Office of Rural Community Affairs.
17-38          (g)  Notwithstanding the changes in law made by this Act,
17-39    until the date the federal community development block grant
17-40    nonentitlement program is transferred to the Office of Rural
17-41    Community Affairs as provided by this Act, the Texas Department of
17-42    Housing and Community Affairs and the Texas Department of Economic
17-43    Development shall continue to exercise the powers and duties
17-44    assigned to the Texas Department of Housing and Community Affairs
17-45    and the Texas Department of Economic Development, respectively,
17-46    under the law as it existed immediately before the effective date
17-47    of this Act or as modified by another Act of the 77th Legislature,
17-48    Regular Session, 2001, that becomes law, and the former law is
17-49    continued in effect for that purpose.
17-50          SECTION 14. Not later than September 1, 2002, the Office of
17-51    Rural Community Affairs shall evaluate the cost-effectiveness and
17-52    other benefits of moving at least one-half of its operations to a
17-53    location outside Travis County, Texas.  If the evaluation indicates
17-54    that the move would be beneficial and the Legislative Budget Office
17-55    concurs, the office shall undertake the move.
17-56          SECTION 15.  The executive director of the Office of Rural
17-57    Community Affairs may change the duties of any employee who is
17-58    transferred to the Office of Rural Community Affairs.
17-59          SECTION 16.  The Legislative Budget Board shall resolve any
17-60    disputes about which obligations, rights, contracts, leases,
17-61    records, personnel, property, and unspent and unobligated
17-62    appropriations or other funds are entitled to be transferred to the
17-63    Office of Rural Community Affairs.
17-64          SECTION 17. Not later than December 1, 2002, the Office of
17-65    Rural Community Affairs shall:
17-66                (1)  evaluate the rural health programs under its
17-67    jurisdiction and propose changes, including statutory changes, to
17-68    combine, streamline, or coordinate the programs to improve their
17-69    flexibility and efficiency; and
 18-1                (2)  report to the presiding officer of each house of
 18-2    the legislature any proposed statutory changes.
 18-3          SECTION 18. (a)  Except as provided by Subsection (b), this
 18-4    Act takes effect September 1, 2001.
 18-5          (b)  Section 487.023, Government Code, as added by this Act,
 18-6    takes effect September 1, 2002.
 18-7                                 * * * * *