1-1     By:  Moncrief, et al.                                  S.B. No. 572
 1-2           (In the Senate - Filed February 7, 2001; February 8, 2001,
 1-3     read first time and referred to Committee on Health and Human
 1-4     Services; April 9, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 7, Nays 0;
 1-6     April 9, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 572                 By:  Moncrief
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the reduction of the shortage of registered nurses by
1-11     establishing a program to increase enrollments in nursing education
1-12     programs, increasing nursing faculty, and creating a nursing
1-13     workforce data center.
1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15           SECTION 1.  This Act may be cited as the Nursing Shortage
1-16     Reduction Act of 2001.
1-17           SECTION 2.  (a)  The legislature finds that:
1-18                 (1)  Texas is experiencing a significant shortage in
1-19     the registered nurses it needs;
1-20                 (2)  the health care needs of Texas' growing elderly
1-21     population create a need for more registered nurses;
1-22                 (3)  Texas' registered nurse workforce is aging, and as
1-23     registered nurses retire in increasing numbers, educating more
1-24     registered nurses is critical;
1-25                 (4)  the health care industry plays an important role
1-26     in the Texas economy and an adequate nursing workforce is an
1-27     essential component of the health care industry; and
1-28                 (5)  it is necessary to increase the number of
1-29     registered nurses in the state to protect the health, safety, and
1-30     welfare of the public.
1-31           (b)  It is the purpose of this Act to establish a program to
1-32     increase the ability of professional nursing educational programs
1-33     to prepare the registered nurses Texas needs, to encourage persons
1-34     to enter the nursing profession or to teach in a nursing program,
1-35     and to establish a nursing workforce data center to address issues
1-36     of supply and demand in nursing.
1-37           SECTION 3.  Chapter 61, Education Code, is amended by adding
1-38     Subchapter U to read as follows:
1-39                SUBCHAPTER U.  PROFESSIONAL NURSING SHORTAGE
1-40                              REDUCTION PROGRAM
1-41           Sec. 61.921.  DEFINITION.  In this subchapter, "professional
1-42     nursing program" means an educational program for preparing
1-43     students for initial licensure as registered nurses.
1-44           Sec. 61.922.  PROGRAM.  A professional nursing shortage
1-45     reduction program is established.  The board shall administer the
1-46     professional nursing shortage reduction program to make grants to
1-47     professional nursing programs and other entities involved with a
1-48     professional nursing program in the preparation of students for
1-49     initial licensure as registered nurses in order to increase the
1-50     number and types of registered nurses to meet the needs for
1-51     registered nurses in the state.
1-52           Sec. 61.923.  GRANTS.  (a)  A grant from the professional
1-53     nursing shortage reduction program to a professional nursing
1-54     program or other entity involved with a professional nursing
1-55     program in the preparation of students for initial licensure as
1-56     registered nurses must be:
1-57                 (1)  expended exclusively on costs related to:
1-58                       (A)  enrolling additional students;
1-59                       (B)  assuring the retention of an adequate number
1-60     of qualified faculty, including providing faculty salaries; or
1-61                       (C)  encouraging innovation in the recruitment
1-62     and retention of students;
1-63                 (2)  contingent on the professional nursing program's
1-64     having been approved as a professional nursing  program by the
 2-1     board or the Board of Nurse Examiners, as appropriate, by
 2-2     September 1, 2001;
 2-3                 (3)  contingent on the professional nursing program's
 2-4     not being on probation with the Board of Nurse Examiners or other
 2-5     accrediting body; and
 2-6                 (4)  if granted to increase enrollments, contingent on
 2-7     the professional nursing program's ability to enroll additional
 2-8     students, including having the necessary classroom space and
 2-9     clinical slots.
2-10           (b)  Funds not expended on the costs described by Subsection
2-11     (a)(1) shall be returned to the board.
2-12           Sec. 61.924.  ADMINISTRATION.  The board shall adopt rules
2-13     and regulations for the administration of the professional nursing
2-14     shortage reduction program.  The board shall grant funds under
2-15     Sections 61.923(a)(1)(A) and (B) in an equitable manner among the
2-16     various types of professional nursing programs.  The board shall
2-17     grant funds under Section 61.923(a)(1)(C) in a manner that best
2-18     promotes innovation in the recruitment and retention of nursing
2-19     students.
2-20           Sec. 61.925.  GRANTS, GIFTS, AND DONATIONS.  In addition to
2-21     funds appropriated by the legislature, the board may solicit,
2-22     receive, and spend grants, gifts, and donations from public or
2-23     private sources for the purposes of this subchapter.
2-24           SECTION 4.  Subchapter B, Chapter 54, Education Code, is
2-25     amended by adding Section 54.069 to read as follows:
2-26           Sec. 54.069.  REGISTERED NURSES IN POSTGRADUATE NURSING
2-27     DEGREE PROGRAMS.  An institution of higher education may permit a
2-28     registered nurse authorized to practice professional nursing in
2-29     Texas to register by paying the tuition fees and other fees or
2-30     charges required for Texas residents under Section 54.051, without
2-31     regard to the length of time the registered nurse has resided in
2-32     Texas, if the registered nurse:
2-33                 (1)  is enrolled in a program designed to lead to a
2-34     master's degree or other higher degree in nursing; and
2-35                 (2)  intends to teach in a program in Texas designed to
2-36     prepare students for licensure as registered nurses.
2-37           SECTION 5.  Subdivision (1), Section 61.651, Education Code,
2-38     is amended to read as follows:
2-39                 (1)  "Professional nursing student" means a student
2-40     enrolled in an institution of higher education or a private or
2-41     independent institution of higher education in a course of study
2-42     leading to an initial or an advanced degree in professional
2-43     nursing.
2-44           SECTION 6.  Section 61.653, Education Code, is amended to
2-45     read as follows:
2-46           Sec. 61.653.  [EMPLOYER] MATCHING FUND PROGRAM.  The board
2-47     shall establish and administer, using funds appropriated for that
2-48     purpose and in accordance with this subchapter and board rules, a
2-49     matching fund program under which a person [an employer] may
2-50     sponsor a professional nursing student or a vocational nursing
2-51     student by contributing to the costs of the student's education and
2-52     having that contribution matched in whole or in part by state funds
2-53     appropriated for that purpose.
2-54           SECTION 7.  Section 61.655, Education Code, is amended to
2-55     read as follows:
2-56           Sec. 61.655.  PURPOSE; ELIGIBILITY.  (a)  A scholarship
2-57     program, matching fund program, or loan repayment program
2-58     established under this subchapter shall be established and
2-59     administered in a manner that the board determines best promotes
2-60     the health care and educational needs of this state.
2-61           (b)  The board may establish multiple categories of persons
2-62     to receive scholarships, matching funds, and loan repayments.  The
2-63     board may include faculty from professional nursing programs with
2-64     master's degrees or doctorates among the categories of persons
2-65     authorized to receive loan repayments.
2-66           (c)  Each year funds are available, the board shall establish
2-67     the categories of persons eligible to receive scholarships,
2-68     matching funds, and loan repayments and the criteria for selecting
2-69     persons to be assisted under each category.  The criteria may
 3-1     include [In determining what best promotes the health care and
 3-2     educational needs of this state, the board shall consider at a
 3-3     minimum the following factors relating to each person being
 3-4     assisted]:
 3-5                 (1)  [ethnic or racial minority status;]
 3-6                 [(2)]  scholastic ability and performance;
 3-7                 (2) [(3)  geographical area of nursing practice;]
 3-8                 [(4)]  financial need;
 3-9                 (3)  the geographical area in which the person is
3-10     likely to practice;
3-11                 (4) [(5)]  whether the person receives Aid to Families
3-12     with Dependent Children or participates in another public welfare
3-13     program;
3-14                 (5) [(6)]  employment by a state agency;
3-15                 (6) [(7)]  employment on a nursing school faculty or a
3-16     person's intention to seek employment on a nursing school faculty;
3-17     [and]
3-18                 (7) [(8)]  whether the person [at the time of
3-19     application to participate in the scholarship program, matching
3-20     fund program, or loan repayment program under this subchapter] is
3-21     [a] practicing [nurse] in a geographical area, a practice setting,
3-22     or an area of practice with an acute nursing shortage or is likely
3-23     to practice in such an area;
3-24                 (8)  the type of certificate or academic degree held or
3-25     pursued; or
3-26                 (9)  any additional factors the board considers
3-27     relevant to promoting the health care and educational needs of the
3-28     state.
3-29           SECTION 8.  Subsections (c), (d), and (e), Section 61.656,
3-30     Education Code, are amended to read as follows:
3-31           (c)  The board shall adopt rules relating to the
3-32     establishment and administration of the matching fund program under
3-33     Section 61.653 [of this code], including rules providing:
3-34                 (1)  eligibility criteria for sponsors [sponsoring
3-35     employers] and for students;
3-36                 (2)  the minimum and maximum sponsor [employer]
3-37     contributions that will be matched;
3-38                 (3)  conflict resolution procedures for resolving
3-39     disputes between the sponsor [sponsoring employer] and the student;
3-40     and
3-41                 (4)  a standard agreement for use by the sponsor and
3-42     the student [the form and manner in which the sponsoring employer
3-43     must make its contribution, including whether the contribution will
3-44     be made in a lump-sum payment at the beginning of a semester or
3-45     whether the contribution will be made in several payments over a
3-46     period of time;]
3-47                 [(5)  conditions under which a student may be required
3-48     to repay funds received under the matching fund program because of
3-49     inability to fulfill obligations under the program;]
3-50                 [(6)  conditions under which a sponsoring employer
3-51     would be returned any unexpended portion of the employer's
3-52     contribution;]
3-53                 [(7)  conditions under which the coordinating board
3-54     could cancel an agreement entered into under Subsection (d) of this
3-55     section between the student and the sponsoring employer; and]
3-56                 [(8)  a procedure for the disbursement of funds that
3-57     provides for participation by a variety of employers consistent
3-58     with the purposes established under this subchapter].
3-59           (d)  [A student and the student's sponsoring employer shall
3-60     enter into a standard agreement as provided by board rules adopted
3-61     under this subsection.  The board shall adopt rules providing for a
3-62     standard agreement for use in connection with the matching fund
3-63     program under Section 61.653 of this code, which agreement must
3-64     include provisions:]
3-65                 [(1)  requiring the sponsoring employer to employ the
3-66     student while in school and to provide a work schedule that
3-67     accommodates the student's class schedule;]
3-68                 [(2)  requiring the student to remain in the employ of
3-69     the sponsoring employer for at least one year after graduation;]
 4-1                 [(3)  requiring the student to repay funds received if
 4-2     the student fails to fulfill his or her responsibilities under the
 4-3     matching fund program, except for specified reasons;]
 4-4                 [(4)  providing for forfeiture of any funds contributed
 4-5     by the sponsoring employer if the employer fails to fulfill its
 4-6     obligations under the matching fund program, except for specified
 4-7     reasons;]
 4-8                 [(5)  requiring the student and sponsoring employer to
 4-9     submit any dispute relating to responsibilities under the matching
4-10     fund program to be resolved under the dispute resolution procedures
4-11     established by the board; and]
4-12                 [(6)  granting authority to the board to cancel an
4-13     agreement entered into by a student and the student's sponsoring
4-14     employer if certain specified conditions are not met.]
4-15           [(e)]  The board shall distribute [adopt rules providing for
4-16     the distribution of] information about the scholarship program,
4-17     matching fund program, and loan repayment program established under
4-18     this subchapter to:
4-19                 (1)  employers of registered nurses or licensed
4-20     vocational nurses;
4-21                 (2)  associations of employers;
4-22                 (3)  schools and educational programs for registered
4-23     nurses or licensed vocational nurses; and
4-24                 (4)  professional associations of registered nurses or
4-25     licensed vocational nurses.
4-26           SECTION 9.  Section 61.658, Education Code, is amended by
4-27     adding Subsection (b) to read as follows:
4-28           (b)  The board may structure the scholarship program, the
4-29     matching fund program, and the loan repayment program established
4-30     under this subchapter to secure funds available under federal
4-31     matching programs.
4-32           SECTION 10.  Subchapter L, Chapter 61, Education Code, is
4-33     amended by adding Section 61.659 to read as follows:
4-34           Sec. 61.659.  ADMINISTRATIVE COSTS.  A reasonable amount, not
4-35     to exceed 10 percent, of the funds appropriated by the legislature
4-36     to fund the programs established under this subchapter, may be used
4-37     by the board to pay administrative costs of operating the programs.
4-38           SECTION 11.  Subtitle E, Title 3, Occupations Code, is
4-39     amended by adding Chapter 304 to read as follows:
4-40                 CHAPTER 304.  NURSING WORKFORCE DATA CENTER
4-41           Sec. 304.001.  DEFINITIONS.  In this chapter:
4-42                 (1)  "Board" means the Board of Nurse Examiners.
4-43                 (2)  "Center" means the nursing workforce data center
4-44     established under this chapter.
4-45                 (3)  "Nurse" means a registered nurse or a licensed
4-46     vocational nurse.
4-47                 (4)  "Nursing" means professional or vocational
4-48     nursing.
4-49                 (5)  "Nursing personnel" means nurses, nurse aides, and
4-50     other licensed and unlicensed personnel providing nursing services.
4-51           Sec. 304.002.  ESTABLISHMENT.  (a)  The board shall establish
4-52     a nursing workforce data center to address issues of supply and
4-53     demand for nursing.
4-54           (b)  The board may contract with public or private entities
4-55     to establish and perform the responsibilities of the center.
4-56           Sec. 304.003.  EXECUTIVE COMMITTEE.  (a)  The board shall
4-57     appoint an executive committee to be the policymaking body for the
4-58     center.  A majority of the members of the executive committee must
4-59     be representatives designated by associations that represent
4-60     nurses, associations that represent employers of nurses, and
4-61     associations that represent educators of nurses.  At least
4-62     one-third of the members must be representatives of the general
4-63     public.  Other members may include nurse researchers, nurses,
4-64     consumers, and other appropriate individuals.  Members shall serve
4-65     two-year staggered terms, with the terms of one-half of the members
4-66     expiring February 1 of each year.
4-67           (b)  The executive committee shall:
4-68                 (1)  elect a chair and other officers from its
4-69     membership;
 5-1                 (2)  set priorities for the center;
 5-2                 (3)  develop and oversee long-term and short-term
 5-3     strategic plans for the center;
 5-4                 (4)  provide for review of reports prepared by the
 5-5     center prior to publication; and
 5-6                 (5)  appoint advisory committees as needed.
 5-7           (c)  A member of the executive committee is entitled to
 5-8     receive a per diem as set by the General Appropriations Act for
 5-9     each day a member engages in the business of the center.  A member
5-10     is not entitled to reimbursement for travel expenses, including
5-11     expenses for meals and lodging, other than transportation expenses.
5-12     A member is entitled to reimbursement for transportation expenses
5-13     as provided by the General Appropriations Act.
5-14           Sec. 304.004.  EXECUTIVE DIRECTOR.  The operations of the
5-15     center shall be administered by an executive director, who shall be
5-16     a registered nurse.  The executive director shall make periodic
5-17     reports to the executive committee concerning the operation of the
5-18     center.
5-19           Sec. 304.005.  DATA COLLECTION AND ANALYSIS.  The center
5-20     shall:
5-21                 (1)  collect data on nurses and other nursing
5-22     personnel, including demographics, areas of practice, supply,
5-23     demand, and migration.  To the extent possible, the center shall
5-24     collect data:
5-25                       (A)  from existing sources that the center
5-26     determines are credible, including information submitted in
5-27     aggregate by entities that collect similar data, but may take steps
5-28     to collect additional data, including conducting surveys; and
5-29                       (B)  on a county or other appropriate regional
5-30     basis;
5-31                 (2)  analyze data on nursing personnel to identify
5-32     trends relating to numbers and geographical distribution, practice
5-33     setting, and area of practice and, to the extent possible, compare
5-34     those trends with corresponding national trends; and
5-35                 (3)  predict supply and demand for nursing personnel in
5-36     Texas, including the development of a supply and demand model
5-37     appropriate for Texas.
5-38           Sec. 304.006.  CONFIDENTIALITY.  Reports, records, and
5-39     information obtained under this chapter are confidential and are
5-40     not subject to disclosure under Chapter 552, Government Code, or to
5-41     subpoena.
5-42           Sec. 304.007.  COORDINATION OF ACTIVITIES.  The center shall
5-43     coordinate its activities with the Texas Higher Education
5-44     Coordinating Board, the statewide health coordinating council, the
5-45     Texas Workforce Commission, and other public entities to minimize
5-46     duplication of collection of data and to promote the sharing of
5-47     data.
5-48           Sec. 304.008.  REPORTS.  (a)  The center shall use the data
5-49     collected and analyzed under this chapter to publish reports
5-50     regarding:
5-51                 (1)  the educational and employment trends for nursing
5-52     personnel;
5-53                 (2)  the supply of and demand for nursing personnel;
5-54     and
5-55                 (3)  other issues, as necessary, concerning nursing in
5-56     the state.
5-57           (b)  Reports, records, and information must be released in
5-58     the aggregate and may not contain employer-specific data.
5-59           Sec. 304.009.  RECRUITMENT.  The center may develop programs
5-60     relating to the recruitment of persons into nursing, including the
5-61     collection of data relating to career satisfaction for nurses.
5-62           Sec. 304.010.  CLEARINGHOUSE.  The center may establish a
5-63     clearinghouse for nursing education programs and health care
5-64     providers to identify sites available to nursing education programs
5-65     for providing clinical experiences for students.
5-66           Sec. 304.011.  RULES.  The board may adopt rules to implement
5-67     this chapter.
5-68           Sec. 304.012.  FEES.  The center may establish and charge
5-69     reasonable fees for nursing workforce data, reports produced, and
 6-1     statistical and other services.
 6-2           Sec. 304.013.  FUNDING.  In addition to funds appropriated by
 6-3     the legislature, the center may solicit, receive, and spend grants,
 6-4     gifts, and donations from public or private sources for the
 6-5     purposes of this chapter.
 6-6           Sec. 304.014.  ADMINISTRATIVE COSTS.  A reasonable amount of
 6-7     the funds appropriated by the legislature to fund the center
 6-8     established under this chapter, not to exceed five percent of the
 6-9     amount of such funds, may be used by the board to pay
6-10     administrative costs of implementing this chapter.
6-11           SECTION 12.  In appointing the initial members of the
6-12     executive committee of the nursing workforce data center, the Board
6-13     of Nurse Examiners shall appoint one-half of the members to terms
6-14     expiring February 1, 2003, and one-half of the members to terms
6-15     expiring February 1, 2005.
6-16           SECTION 13.  (a)  This Act takes effect September 1, 2001.
6-17           (b)  The Texas Higher Education Coordinating Board is
6-18     required to implement Subchapter U, Chapter 61, Education Code, as
6-19     added by this Act, only if the legislature appropriates money for
6-20     the professional nursing shortage reduction program established
6-21     under that subchapter.
6-22           (c)  The Board of Nurse Examiners is required to implement
6-23     Chapter 304, Occupations Code, as added by this Act, only if the
6-24     legislature appropriates money for the nursing workforce data
6-25     center established under that chapter.
6-26                                  * * * * *