By Gray                                               H.B. No. 1361
         2001S0162/2                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the reduction of the shortage of registered nurses by
 1-3     establishing a program to increase enrollments in nursing education
 1-4     programs, increasing nursing faculty, and creating a nursing
 1-5     workforce data center.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  This Act may be cited as the Nursing Shortage
 1-8     Reduction Act of 2001.
 1-9           SECTION 2.  (a)  The legislature finds that:
1-10                 (1)  Texas is experiencing a significant shortage in
1-11     the registered nurses it needs;
1-12                 (2)  the health care needs of Texas' growing elderly
1-13     population create a need for more registered nurses;
1-14                 (3)  Texas' registered nurse workforce is aging, and as
1-15     registered nurses retire in increasing numbers, educating more
1-16     registered nurses is critical;
1-17                 (4)  the health care industry plays an important role
1-18     in the Texas economy and an adequate nursing workforce is an
1-19     essential component of the health care industry; and
1-20                 (5)  it is necessary to increase the number of
1-21     registered nurses in the state to protect the health, safety, and
1-22     welfare of the public.
1-23           (b)  It is the purpose of this Act to establish a program to
1-24     increase the ability of professional nursing educational programs
 2-1     to prepare the registered nurses Texas needs, to encourage persons
 2-2     to enter the nursing profession or to teach in a nursing program,
 2-3     and to establish a nursing workforce data center to address issues
 2-4     of supply and demand in nursing.
 2-5           SECTION 3.  Chapter 61, Education Code, is amended by adding
 2-6     Subchapter U to read as follows:
 2-7                SUBCHAPTER U.  PROFESSIONAL NURSING SHORTAGE
 2-8                              REDUCTION PROGRAM
 2-9           Sec. 61.921.  DEFINITION.  In this subchapter, "professional
2-10     nursing program" means an educational program for preparing
2-11     students for initial licensure as registered nurses.
2-12           Sec. 61.922.  PROGRAM.  A professional nursing shortage
2-13     reduction program is established.  The board shall administer the
2-14     professional nursing shortage reduction program to make grants to
2-15     professional nursing programs and other entities involved with a
2-16     professional nursing program in the preparation of students for
2-17     initial licensure as registered nurses in order to increase the
2-18     number and types of registered nurses to meet the needs for
2-19     registered nurses in the state.
2-20           Sec. 61.923.  GRANTS.  (a)  A grant from the professional
2-21     nursing shortage reduction program to a professional nursing
2-22     program or other entity involved with a professional nursing
2-23     program in the preparation of students for initial licensure as
2-24     registered nurses must be:
2-25                 (1)  expended exclusively on costs related to:
2-26                       (A)  enrolling additional students;
 3-1                       (B)  assuring the retention of an adequate number
 3-2     of qualified faculty, including providing faculty salaries; or
 3-3                       (C)  encouraging innovation in the recruitment
 3-4     and retention of students;
 3-5                 (2)  contingent on the professional nursing program's
 3-6     having been approved as a professional nursing  program by the
 3-7     board or the Board of Nurse Examiners, as appropriate, by
 3-8     September 1, 2001;
 3-9                 (3)  contingent on the professional nursing program's
3-10     not being on probation with the Board of Nurse Examiners or other
3-11     accrediting body; and
3-12                 (4)  if granted to increase enrollments, contingent on
3-13     the professional nursing program's ability to enroll additional
3-14     students, including having the necessary classroom space and
3-15     clinical slots.
3-16           (b)  Funds not expended on the costs described by Subsection
3-17     (a)(1) shall be returned to the board.
3-18           Sec. 61.924.  ADMINISTRATION.  The board shall adopt rules
3-19     and regulations for the administration of the professional nursing
3-20     shortage reduction program.  The board shall grant funds under
3-21     Sections 61.923(a)(1)(A) and (B) in an equitable manner among the
3-22     various types of professional nursing programs.  The board shall
3-23     grant funds under Section 61.923(a)(1)(C) in a manner that best
3-24     promotes innovation in the recruitment and retention of nursing
3-25     students.
3-26           Sec. 61.925.  GRANTS, GIFTS, AND DONATIONS.  In addition to
 4-1     funds appropriated by the legislature, the board may solicit,
 4-2     receive, and spend grants, gifts, and donations from public or
 4-3     private sources for the purposes of this subchapter.
 4-4           SECTION 4.  Subchapter B, Chapter 54, Education Code, is
 4-5     amended by adding Section 54.069 to read as follows:
 4-6           Sec. 54.069.  REGISTERED NURSES IN POSTGRADUATE NURSING
 4-7     DEGREE PROGRAMS.  (a)  An institution of higher education may
 4-8     permit a registered nurse authorized to practice professional
 4-9     nursing in Texas to register by paying the tuition fees and other
4-10     fees or charges required for Texas residents under Section 54.051,
4-11     without regard to the length of time the registered nurse has
4-12     resided in Texas, if the registered nurse:
4-13                 (1)  is enrolled in a program designed to lead to a
4-14     master's degree or other higher degree in nursing; and
4-15                 (2)  intends to teach in a program in Texas designed to
4-16     prepare students for licensure as registered nurses.
4-17           (b)  The institution may set additional qualifications and
4-18     conditions that a registered nurse must meet to qualify for tuition
4-19     and fees at the resident tuition rate under this section,
4-20     including:
4-21                 (1)  the minimum length of time required to teach in
4-22     Texas; and
4-23                 (2)  repayment of any reduction in tuition received
4-24     under this section if the person fails to teach for the length of
4-25     time required.
4-26           SECTION 5.  Subdivision (1), Section 61.651, Education Code,
 5-1     is amended to read as follows:
 5-2                 (1)  "Professional nursing student" means a student
 5-3     enrolled in an institution of higher education or a private or
 5-4     independent institution of higher education in a course of study
 5-5     leading to an initial or an advanced degree in professional
 5-6     nursing.
 5-7           SECTION 6.  Section 61.653, Education Code, is amended to
 5-8     read as follows:
 5-9           Sec. 61.653.  [Employer] MATCHING FUND PROGRAM.  The board
5-10     shall establish and administer, using funds appropriated for that
5-11     purpose and in accordance with this subchapter and board rules, a
5-12     matching fund program under which a person [an employer] may
5-13     sponsor a professional nursing student or a vocational nursing
5-14     student by contributing to the costs of the student's education and
5-15     having that contribution matched in whole or in part by state funds
5-16     appropriated for that purpose.
5-17           SECTION 7.  Section 61.655, Education Code, is amended to
5-18     read as follows:
5-19           Sec. 61.655.  PURPOSE; ELIGIBILITY.  (a)  A scholarship
5-20     program, matching fund program, or loan repayment program
5-21     established under this subchapter shall be established and
5-22     administered in a manner that the board determines best promotes
5-23     the health care and educational needs of this state.
5-24           (b)  The board may establish multiple categories of persons
5-25     to receive scholarships, matching funds, and loan repayments.  The
5-26     board may include faculty with master's degrees or doctorates in
 6-1     nursing from professional nursing programs among the categories of
 6-2     persons authorized to receive loan repayments.
 6-3           (c)  Each year funds are available, the board shall establish
 6-4     the categories of persons eligible to receive scholarships,
 6-5     matching funds, and loan repayments and the criteria for selecting
 6-6     persons to be assisted under each category.  The criteria:
 6-7                 (1)  must include [In determining what best promotes
 6-8     the health care and educational needs of this state, the board
 6-9     shall consider at a minimum the following factors relating to each
6-10     person being assisted]:
6-11                       (A) [(1)  ethnic or racial minority status;]
6-12                 [(2)]  scholastic ability and performance; and
6-13                       (B) [(3)  geographical area of nursing practice;]
6-14                 [(4)]  financial need; and
6-15                 (2)  may include:
6-16                       (A)  the geographical area in which the person is
6-17     likely to practice;
6-18                       (B) [(5)]  whether the person receives Aid to
6-19     Families with Dependent Children or participates in another public
6-20     welfare program;
6-21                       (C) [(6)]  employment by a state agency;
6-22                       (D) [(7)]  employment on a nursing school faculty
6-23     or a person's intention to seek employment on a nursing school
6-24     faculty; [and]
6-25                       (E) [(8)]  whether the person [at the time of
6-26     application to participate in the scholarship program, matching
 7-1     fund program, or loan repayment program under this subchapter] is
 7-2     [a] practicing [nurse] in a geographical area, a practice setting,
 7-3     or an area of practice with an acute nursing shortage or is likely
 7-4     to practice in such an area;
 7-5                       (F)  the type of certificate or academic degree
 7-6     held or pursued; or
 7-7                       (G)  any additional factors the board considers
 7-8     relevant to promoting the health care and educational needs of the
 7-9     state.
7-10           SECTION 8.  Subsections (c), (d), and (e), Section 61.656,
7-11     Education Code, are amended to read as follows:
7-12           (c)  The board shall adopt rules relating to the
7-13     establishment and administration of the matching fund program under
7-14     Section 61.653 [of this code], including rules providing:
7-15                 (1)  eligibility criteria for sponsors [sponsoring
7-16     employers] and for students;
7-17                 (2)  the minimum and maximum sponsor [employer]
7-18     contributions that will be matched;
7-19                 (3)  conflict resolution procedures for resolving
7-20     disputes between the sponsor [sponsoring employer] and the student;
7-21     and
7-22                 (4)  a standard agreement for use by the sponsor and
7-23     the student [the form and manner in which the sponsoring employer
7-24     must make its contribution, including whether the contribution will
7-25     be made in a lump-sum payment at the beginning of a semester or
7-26     whether the contribution will be made in several payments over a
 8-1     period of time;]
 8-2                 [(5)  conditions under which a student may be required
 8-3     to repay funds received under the matching fund program because of
 8-4     inability to fulfill obligations under the program;]
 8-5                 [(6)  conditions under which a sponsoring employer
 8-6     would be returned any unexpended portion of the employer's
 8-7     contribution;]
 8-8                 [(7)  conditions under which the coordinating board
 8-9     could cancel an agreement entered into under Subsection (d) of this
8-10     section between the student and the sponsoring employer; and]
8-11                 [(8)  a procedure for the disbursement of funds that
8-12     provides for participation by a variety of employers consistent
8-13     with the purposes established under this subchapter].
8-14           (d)  [A student and the student's sponsoring employer shall
8-15     enter into a standard agreement as provided by board rules adopted
8-16     under this subsection.  The board shall adopt rules providing for a
8-17     standard agreement for use in connection with the matching fund
8-18     program under Section 61.653 of this code, which agreement must
8-19     include provisions:]
8-20                 [(1)  requiring the sponsoring employer to employ the
8-21     student while in school and to provide a work schedule that
8-22     accommodates the student's class schedule;]
8-23                 [(2)  requiring the student to remain in the employ of
8-24     the sponsoring employer for at least one year after graduation;]
8-25                 [(3)  requiring the student to repay funds received if
8-26     the student fails to fulfill his or her responsibilities under the
 9-1     matching fund program, except for specified reasons;]
 9-2                 [(4)  providing for forfeiture of any funds contributed
 9-3     by the sponsoring employer if the employer fails to fulfill its
 9-4     obligations under the matching fund program, except for specified
 9-5     reasons;]
 9-6                 [(5)  requiring the student and sponsoring employer to
 9-7     submit any dispute relating to responsibilities under the matching
 9-8     fund program to be resolved under the dispute resolution procedures
 9-9     established by the board; and]
9-10                 [(6)  granting authority to the board to cancel an
9-11     agreement entered into by a student and the student's sponsoring
9-12     employer if certain specified conditions are not met.]
9-13           [(e)]  The board shall distribute [adopt rules providing for
9-14     the distribution of] information about the scholarship program,
9-15     matching fund program, and loan repayment program established under
9-16     this subchapter to:
9-17                 (1)  employers of registered nurses or licensed
9-18     vocational nurses;
9-19                 (2)  associations of employers;
9-20                 (3)  schools and educational programs for registered
9-21     nurses or licensed vocational nurses; and
9-22                 (4)  professional associations of registered nurses or
9-23     licensed vocational nurses.
9-24           SECTION 9.  Section 61.658, Education Code, is amended by
9-25     adding Subsection (b) to read as follows:
9-26           (b)  The board may structure the scholarship program, the
 10-1    matching fund program, and the loan repayment program established
 10-2    under this subchapter to secure funds available under federal
 10-3    matching programs.
 10-4          SECTION 10.  Subchapter L, Chapter 61, Education Code, is
 10-5    amended by adding Section 61.659 to read as follows:
 10-6          Sec. 61.659.  ADMINISTRATIVE COSTS.  A reasonable amount, not
 10-7    to exceed 10 percent, of the funds appropriated by the legislature
 10-8    to fund the programs established under this subchapter, may be used
 10-9    by the board to pay administrative costs of operating the programs.
10-10          SECTION 11.  Subtitle E, Title 3, Occupations Code, is
10-11    amended by adding Chapter 304 to read as follows:
10-12                CHAPTER 304.  NURSING WORKFORCE DATA CENTER
10-13          Sec. 304.001.  DEFINITIONS.  In this chapter:
10-14                (1)  "Board" means the Board of Nurse Examiners.
10-15                (2)  "Center" means the nursing workforce data center
10-16    established under this chapter.
10-17                (3)  "Nurse" means a registered nurse or a licensed
10-18    vocational nurse.
10-19                (4)  "Nursing" means professional or vocational
10-20    nursing.
10-21                (5)  "Nursing personnel" means nurses, nurse aides, and
10-22    other licensed and unlicensed personnel providing nursing services.
10-23          Sec. 304.002.  ESTABLISHMENT.  (a)  The board shall establish
10-24    a nursing workforce data center to address issues of supply and
10-25    demand for nursing.
10-26          (b)  The board may contract with public or private entities
 11-1    to establish and perform the responsibilities of the center.
 11-2          Sec. 304.003.  EXECUTIVE COMMITTEE.  (a)  The board shall
 11-3    appoint an executive committee to be the policymaking body for the
 11-4    center.  A majority of the members of the executive committee must
 11-5    be representatives designated by associations that represent
 11-6    nurses, associations that represent employers of nurses, and
 11-7    associations that represent educators of nurses.  At least
 11-8    one-third of the members must be representatives of the general
 11-9    public.  Other members may include nurse researchers, nurses,
11-10    consumers, and other appropriate individuals.  Members shall serve
11-11    two-year staggered terms, with the terms of one-half of the members
11-12    expiring February 1 of each year.
11-13          (b)  The executive committee shall:
11-14                (1)  elect a chair and other officers from its
11-15    membership;
11-16                (2)  set priorities for the center;
11-17                (3)  develop and oversee long-term and short-term
11-18    strategic plans for the center;
11-19                (4)  provide for review of reports prepared by the
11-20    center prior to publication; and
11-21                (5)  appoint advisory committees as needed.
11-22          (c)  A member of the executive committee is entitled to
11-23    receive a per diem as set by the General Appropriations Act for
11-24    each day a member engages in the business of the center.  A member
11-25    is not entitled to reimbursement for travel expenses, including
11-26    expenses for meals and lodging, other than transportation expenses.
 12-1    A member is entitled to reimbursement for transportation expenses
 12-2    as provided by the General Appropriations Act.
 12-3          Sec. 304.004.  EXECUTIVE DIRECTOR.  The operations of the
 12-4    center shall be administered by an executive director, who shall be
 12-5    a registered nurse.  The executive director shall make periodic
 12-6    reports to the executive committee concerning the operation of the
 12-7    center.
 12-8          Sec. 304.005.  DATA COLLECTION AND ANALYSIS.  The center
 12-9    shall:
12-10                (1)  collect data on nurses and other nursing
12-11    personnel, including demographics, areas of practice, supply,
12-12    demand, and migration.  To the extent possible, the center shall
12-13    collect data:
12-14                      (A)  from existing sources that the center
12-15    determines are credible, but may take steps to collect additional
12-16    data, including conducting surveys; and
12-17                      (B)  on a county or other appropriate regional
12-18    basis;
12-19                (2)  analyze data on nursing personnel to identify
12-20    trends relating to numbers and geographical distribution, practice
12-21    setting, and area of practice and, to the extent possible, compare
12-22    those trends with corresponding national trends; and
12-23                (3)  predict supply and demand for nursing personnel in
12-24    Texas, including the development of a supply and demand model
12-25    appropriate for Texas.
12-26          Sec. 304.006.  COORDINATION OF ACTIVITIES.  The center shall
 13-1    coordinate its activities with the Texas Higher Education
 13-2    Coordinating Board, the statewide health coordinating council, the
 13-3    Texas Workforce Commission, and other public entities to minimize
 13-4    duplication of collection of data and to promote the sharing of
 13-5    data.
 13-6          Sec. 304.007.  REPORTS.  The center shall use the data
 13-7    collected and analyzed under this chapter to publish reports
 13-8    regarding:
 13-9                (1)  the educational and employment trends for nursing
13-10    personnel;
13-11                (2)  the supply of and demand for nursing personnel;
13-12    and
13-13                (3)  other issues, as necessary, concerning nursing in
13-14    the state.
13-15          Sec. 304.008.  RECRUITMENT.  The center may develop programs
13-16    relating to the recruitment of persons into nursing, including the
13-17    collection of data relating to career satisfaction for nurses.
13-18          Sec. 304.009.  CLEARINGHOUSE.  The center may establish a
13-19    clearinghouse for nursing education programs and health care
13-20    providers to identify sites available to nursing education programs
13-21    for providing clinical experiences for students.
13-22          Sec. 304.010.  RULES.  The board may adopt rules to implement
13-23    this chapter.
13-24          Sec. 304.011.  FEES.  The center may establish and charge
13-25    reasonable fees for nursing workforce data, reports produced, and
13-26    statistical and other services.
 14-1          Sec. 304.012.  FUNDING.  In addition to funds appropriated by
 14-2    the legislature, the center may solicit, receive, and spend grants,
 14-3    gifts, and donations from public or private sources for the
 14-4    purposes of this chapter.
 14-5          Sec. 304.013.  ADMINISTRATIVE COSTS.  A reasonable amount of
 14-6    the funds appropriated by the legislature to fund the center
 14-7    established under this chapter, not to exceed five percent of the
 14-8    amount of such funds, may be used by the board to pay
 14-9    administrative costs of implementing this chapter.
14-10          SECTION 12.  In appointing the initial members of the
14-11    executive committee of the nursing workforce data center, the Board
14-12    of Nurse Examiners shall appoint one-half of the members to terms
14-13    expiring February 1, 2003, and one-half of the members to terms
14-14    expiring February 1, 2005.
14-15          SECTION 13.  (a)  This Act takes effect September 1, 2001.
14-16          (b)  The Texas Higher Education Coordinating Board is
14-17    required to implement Subchapter U, Chapter 61, Education Code, as
14-18    added by this Act, only if the legislature appropriates money for
14-19    the professional nursing shortage reduction program established
14-20    under that subchapter.