C.S.H.B. 3126 78(R)    BILL ANALYSIS

 
C.S.H.B. 3126
By: Truitt
Public Health
Committee Report (Substituted)

BACKGROUND AND PURPOSE 
Texas has had a critical shortage of RNs for a number of years.  In Fall
2000, the Center for Health and Economic Policy at the University of Texas
Health Science Center San Antonio issued a report on the extent and causes
of the shortage.  The study's conclusions were that Texas was facing a
severe shortage that was different from the periodic nursing shortages
Texas had previously experienced and that it was likely to worsen unless
significant steps were taken to address it.  The difference with the
examined shortage was that it was being driven primarily by demographics
rather than economic factors.  The RN population was aging (average age of
45) which meant more RNs would be reaching retirement age and the elderly
population was growing which meant more demand for health care and nursing
services.  It was this combination of declining supply and increasing
demand that made the shortage critical.  The study also found a high level
of dissatisfaction among RNs.  RNs were being required to care for an
increasing number of patients that were also sicker with lower staffing
levels.  To adequately address the shortage, Texas needed to achieve two
goals: 1) significantly increase enrollments in nursing schools and 2)
create a more attractive practice environment for nurses.   

The first step toward achieving the first of these goals was taken by 77th
Legislature by making available approximately $11 million dollars of
dramatic growth funds to help increase RN enrollments and another $3
million in tobacco lawsuit settlement fund proceeds for grants to promote
innovation in the recruitment and retention of students.  Using these
funds, nursing schools in public colleges and universities were able to
increase enrollments by 21% between Fall 2000 and Fall 2002. 

In August 2001, the Texas Department of Health initiated its rulemaking
process to address one of the greatest concern RNs have about the
workplace - adequate staffing.   The result was TDH's adopting
comprehensive regulations governing nurse staffing in hospitals that
included written staffing plans, use of outcome measures to evaluate
adequacy of staffing, establishment of a nurse staffing advisory
committee, and prohibiting discrimination against nurses raising concerns
about staffing levels.  Despite these steps, Texas continues to face a
critical shortage of RNs in 2003 with an average statewide vacancy rate in
hospitals of over 12%.   

C.S.H.B. 3126 allocates the income from the Nursing, Allied Health
Permanent Tobacco Lawsuit Settlement Endowment Fund to address the RN
shortage through 2007.  It directs the THECB to assure funds appropriated
to colleges and universities for the RN shortage are expended by the
institutions to address the shortage.  It adds provisions to the TEXAS
Grant I and II Programs to give the Coordinating Board discretion to award
larger grants to students enrolled in a program leading to licensure in a
health care field with a critical shortage. 

The purpose of the bill is to increase the supply of RNs in Texas by the
enrollments in schools preparing students for licensure as RNs. 

RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS
House Bill 3126 amends the Education Code by making a conforming change to
the professional nursing shortage reduction program. 

The bill authorizes the Texas Higher Education Coordinating Board (THECB)
to adopt procedures in regard to the expenditure of funds appropriated to
increase enrollments in professional nursing programs.  The bill requires
professional nursing programs that receive state funds to file an annual
report with THECB accounting for all funds.  The bill authorizes THECB to
use funds in accordance with the criteria outlined in the bill to pay for
administrative costs of the grant programs. 

The bill requires THECB award funds in accordance with the criteria
outlined in the bill to programs preparing students for initial licensure
in nursing and to programs preparing nursing faculty. 

The bill amends the Education Code to authorize THECB to award grants to
students enrolled in programs that prepare for licensure in health care
professions with a critical shortage in accordance with the criteria
outlined in the bill.  The bill authorizes THECB to give priority to a
student from an underrepresented population in that health care workforce. 

The bill amends the Education Code to authorize THECB to award grants to
students enrolled in programs that prepare for licensure in health care
professions with a critical shortage in accordance with the criteria
outlined in the bill.  The bill authorizes THECB to give priority to a
student from an underrepresented population in that health care workforce. 

The bill amends the Health and Safety Code to require THECB to establish
and implement the nursing workforce data section (section) to address
issues of supply and demand for nursing.  The bill authorizes THECB to
contract with public or private entities to establish and to perform the
responsibilities of the section.  The bill requires THECB to appoint an
advisory committee and sets forth provisions regarding the appointment and
composition, powers and duties, and reimbursement. The bill requires the
section to collect and analyze the specified data on nursing, predict
supply and demand for nursing personnel in Texas, develop a nursing
personnel supply and demand model appropriate for Texas, and publish
certain reports with the collected data.  The bill provides that reports,
records, and information obtained from the section are confidential and
are not subject to public disclosure, or to subpoena.  In order to
minimize the duplication of the collection of data and to promote the
sharing of data, the bill requires the section to coordinate its
activities with THECB, the Texas Workforce Commission, and other public
entities.  The section is authorized to establish and charge reasonable
fees for certain services, to solicit, receive, and spend certain
donations, and to appropriate not more than seven percent of the
legislative funds for administrative costs. 

The bill repeals Chapter 304 of the Occupations Code.

The bill outlines an increase in license renewal fees by the Texas Board
of Nurse Examiners and by the Texas Board of Vocational Nurse Examiners.  

EFFECTIVE DATE
Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003. 

COMPARISON OF ORIGINAL TO SUBSTITUTE
The substitute repeals the requirement that THECB create a faculty
enhancement grant program to assist professional nursing programs in the
education, recruitment, and retention of an adequate number of faculty.
The substitute repeals the authorization that THECB appoint an advisory
board in regard to the faculty enhancement grant program and make grants
in accordance with the criteria outlined in the bill.  The substitute
repeals the requirement that THECB create a health care worker transition
program to assist health care workers obtain the education preparation
required for licensure as a registered nurse and the authorization to make
grants in accordance with the criteria outlined in the bill. The
substitute renames the nursing data center as a nursing data section and
moves it from the Board of Nurse Examiners to the Statewide Health
Coordinating Council under the Texas Department of Health.  The substitute
requires a surcharge on RN and LVN licenses to fund the nursing workforce
data section.  The substitute repeals Chapter 304 of the Occupations Code
which currently governs the nursing data center.  The substitute repeals
the requirement that THECB create a faculty grant program and a health
care worker transition grant program if funds are appropriated.