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
1-25     to prepare the registered nurses Texas needs, to encourage persons
 2-1     to enter the nursing profession or to teach in a nursing program,
 2-2     and to establish a nursing workforce data center to address issues
 2-3     of supply and demand in nursing.
 2-4           SECTION 3.  Chapter 61, Education Code, is amended by adding
 2-5     Subchapter U to read as follows:
 2-6                SUBCHAPTER U.  PROFESSIONAL NURSING SHORTAGE
 2-7                              REDUCTION PROGRAM
 2-8           Sec. 61.921.  DEFINITION.  In this subchapter, "professional
 2-9     nursing program" means an educational program for preparing
2-10     students for initial licensure as registered nurses.
2-11           Sec. 61.922.  PROGRAM.  A professional nursing shortage
2-12     reduction program is established.  The board shall administer the
2-13     professional nursing shortage reduction program to make grants to
2-14     professional nursing programs and other entities involved with a
2-15     professional nursing program in the preparation of students for
2-16     initial licensure as registered nurses in order to increase the
2-17     number and types of registered nurses to meet the needs for
2-18     registered nurses in the state.
2-19           Sec. 61.923.  GRANTS.  (a)  A grant from the professional
2-20     nursing shortage reduction program to a professional nursing
2-21     program or other entity involved with a professional nursing
2-22     program in the preparation of students for initial licensure as
2-23     registered nurses must be:
2-24                 (1)  expended exclusively on costs related to:
2-25                       (A)  enrolling additional students;
2-26                       (B)  assuring the retention of an adequate number
 3-1     of qualified faculty, including providing faculty salaries; or
 3-2                       (C)  encouraging innovation in the recruitment
 3-3     and retention of students, including the recruitment and retention
 3-4     of Spanish-speaking and bilingual 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, including the recruitment and retention of
3-26     Spanish-speaking and bilingual students.
 4-1           Sec. 61.925.  GRANTS, GIFTS, AND DONATIONS.  In addition to
 4-2     funds appropriated by the legislature, the board may solicit,
 4-3     receive, and spend grants, gifts, and donations from public or
 4-4     private sources for the purposes of this subchapter.
 4-5           Sec. 61.926.  ANNUAL REPORT.  (a)  Each institution of higher
 4-6     education that has a professional nursing program shall submit an
 4-7     annual report to the board detailing its strategy for increasing
 4-8     the number of students that graduate from the program prepared for
 4-9     licensure as registered nurses.  The report must include:
4-10                 (1)  the capacity of the program to graduate more
4-11     students prepared for licensure as registered nurses; and
4-12                 (2)  the resources allocated to increase the number of
4-13     students that graduate from the program prepared for licensure as
4-14     registered nurses.
4-15           (b)  The board may adopt rules to implement this section.
4-16           SECTION 4.  Subchapter B, Chapter 54, Education Code, is
4-17     amended by adding Section 54.069 to read as follows:
4-18           Sec. 54.069.  REGISTERED NURSES IN POSTGRADUATE NURSING
4-19     DEGREE PROGRAMS.  An institution of higher education may permit a
4-20     registered nurse authorized to practice professional nursing in
4-21     Texas to register by paying the tuition fees and other fees or
4-22     charges required for Texas residents under Section 54.051, without
4-23     regard to the length of time the registered nurse has resided in
4-24     Texas, if the registered nurse:
4-25                 (1)  is enrolled in a program designed to lead to a
4-26     master's degree or other higher degree in nursing; and
 5-1                 (2)  intends to teach in a program in Texas designed to
 5-2     prepare students for licensure as registered nurses.
 5-3           SECTION 5.  Subdivision (1), Section 61.651, Education Code,
 5-4     is amended to read as follows:
 5-5                 (1)  "Professional nursing student" means a student
 5-6     enrolled in an institution of higher education or a private or
 5-7     independent institution of higher education in a course of study
 5-8     leading to an initial or an advanced degree in professional
 5-9     nursing.
5-10           SECTION 6.  Section 61.653, Education Code, is amended to
5-11     read as follows:
5-12           Sec. 61.653.  [EMPLOYER] MATCHING FUND PROGRAM.  The board
5-13     shall establish and administer, using funds appropriated for that
5-14     purpose and in accordance with this subchapter and board rules, a
5-15     matching fund program under which a person [an employer] may
5-16     sponsor a professional nursing student or a vocational nursing
5-17     student by contributing to the costs of the student's education and
5-18     having that contribution matched in whole or in part by state funds
5-19     appropriated for that purpose.
5-20           SECTION 7.  Section 61.655, Education Code, is amended to
5-21     read as follows:
5-22           Sec. 61.655.  PURPOSE; ELIGIBILITY.  (a)  A scholarship
5-23     program, matching fund program, or loan repayment program
5-24     established under this subchapter shall be established and
5-25     administered in a manner that the board determines best promotes
5-26     the health care and educational needs of this state.
 6-1           (b)  The board may establish multiple categories of persons
 6-2     to receive scholarships, matching funds, and loan repayments.  The
 6-3     board may include faculty from professional nursing programs with
 6-4     master's degrees or doctorates among the categories of persons
 6-5     authorized to receive loan repayments.
 6-6           (c)  Each year funds are available, the board shall establish
 6-7     the categories of persons eligible to receive scholarships,
 6-8     matching funds, and loan repayments and the criteria for selecting
 6-9     persons to be assisted under each category.  The criteria may
6-10     include [In determining what best promotes the health care and
6-11     educational needs of this state, the board shall consider at a
6-12     minimum the following factors relating to each person being
6-13     assisted]:
6-14                 (1)  [ethnic or racial minority status;]
6-15                 [(2)]  scholastic ability and performance;
6-16                 (2) [(3)  geographical area of nursing practice;]
6-17                 [(4)]  financial need;
6-18                 (3)  the geographical area in which the person is
6-19     likely to practice;
6-20                 (4) [(5)]  whether the person receives Aid to Families
6-21     with Dependent Children or participates in another public welfare
6-22     program;
6-23                 (5) [(6)]  employment by a state agency;
6-24                 (6) [(7)]  employment on a nursing school faculty or a
6-25     person's intention to seek employment on a nursing school faculty;
6-26     [and]
 7-1                 (7) [(8)]  whether the person [at the time of
 7-2     application to participate in the scholarship program, matching
 7-3     fund program, or loan repayment program under this subchapter] is
 7-4     [a] practicing [nurse] in a geographical area, a practice setting,
 7-5     or an area of practice with an acute nursing shortage or is likely
 7-6     to practice in such an area;
 7-7                 (8)  the type of certificate or academic degree held or
 7-8     pursued; or
 7-9                 (9)  any additional factors the board considers
7-10     relevant to promoting the health care and educational needs of the
7-11     state.
7-12           SECTION 8.  Subsections (c), (d), and (e), Section 61.656,
7-13     Education Code, are amended to read as follows:
7-14           (c)  The board shall adopt rules relating to the
7-15     establishment and administration of the matching fund program under
7-16     Section 61.653 [of this code], including rules providing:
7-17                 (1)  eligibility criteria for sponsors [sponsoring
7-18     employers] and for students;
7-19                 (2)  the minimum and maximum sponsor [employer]
7-20     contributions that will be matched;
7-21                 (3)  conflict resolution procedures for resolving
7-22     disputes between the sponsor [sponsoring employer] and the student;
7-23     and
7-24                 (4)  a standard agreement for use by the sponsor and
7-25     the student [the form and manner in which the sponsoring employer
7-26     must make its contribution, including whether the contribution will
 8-1     be made in a lump-sum payment at the beginning of a semester or
 8-2     whether the contribution will be made in several payments over a
 8-3     period of time;]
 8-4                 [(5)  conditions under which a student may be required
 8-5     to repay funds received under the matching fund program because of
 8-6     inability to fulfill obligations under the program;]
 8-7                 [(6)  conditions under which a sponsoring employer
 8-8     would be returned any unexpended portion of the employer's
 8-9     contribution;]
8-10                 [(7)  conditions under which the coordinating board
8-11     could cancel an agreement entered into under Subsection (d) of this
8-12     section between the student and the sponsoring employer; and]
8-13                 [(8)  a procedure for the disbursement of funds that
8-14     provides for participation by a variety of employers consistent
8-15     with the purposes established under this subchapter].
8-16           (d)  [A student and the student's sponsoring employer shall
8-17     enter into a standard agreement as provided by board rules adopted
8-18     under this subsection.  The board shall adopt rules providing for a
8-19     standard agreement for use in connection with the matching fund
8-20     program under Section 61.653 of this code, which agreement must
8-21     include provisions:]
8-22                 [(1)  requiring the sponsoring employer to employ the
8-23     student while in school and to provide a work schedule that
8-24     accommodates the student's class schedule;]
8-25                 [(2)  requiring the student to remain in the employ of
8-26     the sponsoring employer for at least one year after graduation;]
 9-1                 [(3)  requiring the student to repay funds received if
 9-2     the student fails to fulfill his or her responsibilities under the
 9-3     matching fund program, except for specified reasons;]
 9-4                 [(4)  providing for forfeiture of any funds contributed
 9-5     by the sponsoring employer if the employer fails to fulfill its
 9-6     obligations under the matching fund program, except for specified
 9-7     reasons;]
 9-8                 [(5)  requiring the student and sponsoring employer to
 9-9     submit any dispute relating to responsibilities under the matching
9-10     fund program to be resolved under the dispute resolution procedures
9-11     established by the board; and]
9-12                 [(6)  granting authority to the board to cancel an
9-13     agreement entered into by a student and the student's sponsoring
9-14     employer if certain specified conditions are not met.]
9-15           [(e)]  The board shall distribute [adopt rules providing for
9-16     the distribution of] information about the scholarship program,
9-17     matching fund program, and loan repayment program established under
9-18     this subchapter to:
9-19                 (1)  employers of registered nurses or licensed
9-20     vocational nurses;
9-21                 (2)  associations of employers;
9-22                 (3)  schools and educational programs for registered
9-23     nurses or licensed vocational nurses; and
9-24                 (4)  professional associations of registered nurses or
9-25     licensed vocational nurses.
9-26           SECTION 9.  Section 61.658, Education Code, is amended by
 10-1    adding Subsection (b) to read as follows:
 10-2          (b)  The board may structure the scholarship program, the
 10-3    matching fund program, and the loan repayment program established
 10-4    under this subchapter to secure funds available under federal
 10-5    matching programs.
 10-6          SECTION 10.  Subchapter L, Chapter 61, Education Code, is
 10-7    amended by adding Section 61.659 to read as follows:
 10-8          Sec. 61.659.  ADMINISTRATIVE COSTS.  A reasonable amount, not
 10-9    to exceed 10 percent, of the funds appropriated by the legislature
10-10    to fund the programs established under this subchapter, may be used
10-11    by the board to pay administrative costs of operating the programs.
10-12          SECTION 11.  Section 63.202, Education Code, is amended by
10-13    adding Subsections (f) and (g) to read as follows:
10-14          (f)  Notwithstanding the limitation provided by Subsection
10-15    (b), in awarding grants under Subsection (c) for the state fiscal
10-16    biennium ending on August 31, 2003, the Texas Higher Education
10-17    Coordinating Board:
10-18                (1)  may make awards to any program preparing students
10-19    for initial licensure as registered nurses, including two-year
10-20    institutions of higher education and independent or private
10-21    institutions of higher education;
10-22                (2)  shall give priority in awarding grants to:
10-23                      (A)  institutions proposing to address the
10-24    shortage of registered nurses by promoting innovation in
10-25    recruitment and retention of nursing students and faculty; and
10-26                      (B)  institutions seeking to increase enrollments
 11-1    in their nursing programs through financial incentives to faculty
 11-2    to provide clinical and classroom instruction in addition to
 11-3    carrying a full teaching load; and
 11-4                (3)  may consider the availability of matching funds in
 11-5    awarding grants.
 11-6          (g)  Subsection (f) and this subsection expire September 1,
 11-7    2003.
 11-8          SECTION 12.  Subtitle E, Title 3, Occupations Code, is
 11-9    amended by adding Chapter 304 to read as follows:
11-10                CHAPTER 304.  NURSING WORKFORCE DATA CENTER
11-11          Sec. 304.001.  DEFINITIONS.  In this chapter:
11-12                (1)  "Board" means the Board of Nurse Examiners.
11-13                (2)  "Center" means the nursing workforce data center
11-14    established under this chapter.
11-15                (3)  "Nurse" means a registered nurse or a licensed
11-16    vocational nurse.
11-17                (4)  "Nursing" means professional or vocational
11-18    nursing.
11-19                (5)  "Nursing personnel" means nurses, nurse aides, and
11-20    other licensed and unlicensed personnel providing nursing services.
11-21          Sec. 304.002.  ESTABLISHMENT.  (a)  The board shall establish
11-22    a nursing workforce data center to address issues of supply and
11-23    demand for nursing.
11-24          (b)  The board may contract with public or private entities
11-25    to establish and perform the responsibilities of the center.
11-26          Sec. 304.003.  EXECUTIVE COMMITTEE.  (a)  The board shall
 12-1    appoint an executive committee to be the policymaking body for the
 12-2    center.  A majority of the members of the executive committee must
 12-3    be representatives designated by associations that represent
 12-4    nurses, associations that represent employers of nurses, and
 12-5    associations that represent educators of nurses.  At least
 12-6    one-third of the members must be representatives of the general
 12-7    public.  Other members may include nurse researchers, nurses,
 12-8    consumers, and other appropriate individuals.  Members shall serve
 12-9    two-year staggered terms, with the terms of one-half of the members
12-10    expiring February 1 of each year.
12-11          (b)  The executive committee shall:
12-12                (1)  elect a chair and other officers from its
12-13    membership;
12-14                (2)  set priorities for the center;
12-15                (3)  develop and oversee long-term and short-term
12-16    strategic plans for the center;
12-17                (4)  provide for review of reports prepared by the
12-18    center prior to publication; and
12-19                (5)  appoint advisory committees as needed.
12-20          (c)  A member of the executive committee is entitled to
12-21    receive a per diem as set by the General Appropriations Act for
12-22    each day a member engages in the business of the center.  A member
12-23    is not entitled to reimbursement for travel expenses, including
12-24    expenses for meals and lodging, other than transportation expenses.
12-25    A member is entitled to reimbursement for transportation expenses
12-26    as provided by the General Appropriations Act.
 13-1          Sec. 304.004.  EXECUTIVE DIRECTOR.  The operations of the
 13-2    center shall be administered by an executive director, who shall be
 13-3    a registered nurse.  The executive director shall make periodic
 13-4    reports to the executive committee concerning the operation of the
 13-5    center.
 13-6          Sec. 304.005.  DATA COLLECTION AND ANALYSIS.  The center
 13-7    shall:
 13-8                (1)  collect data on nurses and other nursing
 13-9    personnel, including demographics, areas of practice, supply,
13-10    demand, and migration.  To the extent possible, the center shall
13-11    collect data:
13-12                      (A)  from existing sources that the center
13-13    determines are credible, including information submitted in
13-14    aggregate by entities that collect similar data, but may take steps
13-15    to collect additional data, including conducting surveys; and
13-16                      (B)  on a county or other appropriate regional
13-17    basis;
13-18                (2)  analyze data on nursing personnel to identify
13-19    trends relating to numbers and geographical distribution, practice
13-20    setting, and area of practice and, to the extent possible, compare
13-21    those trends with corresponding national trends; and
13-22                (3)  predict supply and demand for nursing personnel in
13-23    Texas, including the development of a supply and demand model
13-24    appropriate for Texas.
13-25          Sec. 304.006.  CONFIDENTIALITY.  Reports, records, and
13-26    information obtained by the center under this chapter are
 14-1    confidential and are not subject to disclosure under Chapter 552,
 14-2    Government Code.
 14-3          Sec. 304.007.  COORDINATION OF ACTIVITIES.  The center shall
 14-4    coordinate its activities with the Texas Higher Education
 14-5    Coordinating Board, the statewide health coordinating council, the
 14-6    Texas Workforce Commission, and other public entities to minimize
 14-7    duplication of collection of data and to promote the sharing of
 14-8    data.
 14-9          Sec. 304.008.  REPORTS.  (a)  The center shall use the data
14-10    collected and analyzed under this chapter to publish reports
14-11    regarding:
14-12                (1)  the educational and employment trends for nursing
14-13    personnel;
14-14                (2)  the supply of and demand for nursing personnel;
14-15    and
14-16                (3)  other issues, as necessary, concerning nursing in
14-17    the state.
14-18          (b)  Reports, records, and information must be released in
14-19    the aggregate and may not contain employer-specific data.
14-20          Sec. 304.009.  RECRUITMENT.  The center may develop programs
14-21    relating to the recruitment of persons into nursing, including the
14-22    collection of data relating to career satisfaction for nurses.
14-23          Sec. 304.010.  CLEARINGHOUSE.  The center may establish a
14-24    clearinghouse for nursing education programs and health care
14-25    providers to identify sites available to nursing education programs
14-26    for providing clinical experiences for students.
 15-1          Sec. 304.011.  RULES.  The board may adopt rules to implement
 15-2    this chapter.
 15-3          Sec. 304.012.  FEES.  The center may establish and charge
 15-4    reasonable fees for nursing workforce data, reports produced, and
 15-5    statistical and other services.
 15-6          Sec. 304.013.  FUNDING.  In addition to funds appropriated by
 15-7    the legislature, the center may solicit, receive, and spend grants,
 15-8    gifts, and donations from public or private sources for the
 15-9    purposes of this chapter.
15-10          Sec. 304.014.  ADMINISTRATIVE COSTS.  A reasonable amount of
15-11    the funds appropriated by the legislature to fund the center
15-12    established under this chapter, not to exceed five percent of the
15-13    amount of such funds, may be used by the board to pay
15-14    administrative costs of implementing this chapter.
15-15          SECTION 13.  In appointing the initial members of the
15-16    executive committee of the nursing workforce data center, the Board
15-17    of Nurse Examiners shall appoint one-half of the members to terms
15-18    expiring February 1, 2003, and one-half of the members to terms
15-19    expiring February 1, 2005.
15-20          SECTION 14.  (a)  This Act takes effect September 1, 2001.
15-21          (b)  The Texas Higher Education Coordinating Board is
15-22    required to implement Subchapter U, Chapter 61, Education Code, as
15-23    added by this Act, only if the legislature appropriates money for
15-24    the professional nursing shortage reduction program established
15-25    under that subchapter.
15-26          (c)  The Board of Nurse Examiners is required to implement
 16-1    Chapter 304, Occupations Code, as added by this Act, only if the
 16-2    legislature appropriates money for the nursing workforce data
 16-3    center established under that chapter.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 572 passed the Senate on
         April 17, 2001, by a viva-voce vote; and that the Senate concurred
         in House amendments on May 17, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 572 passed the House, with
         amendments, on May 11, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor