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Amend SB 1397 (Senate committee printing) by striking all 
below the enacting clause and substituting the following:
	SECTION 1.  Section 301.155(c), Occupations Code, is amended 
to read as follows:
	(c)  The board shall assess a [$3] surcharge of not less than 
$3 or more than $5 for a registered nurse and a [$2] surcharge of not 
less than $2 or more than $3 for a vocational nurse to the fee 
established by the board under Subsection (a) for a license holder 
to renew a license under this chapter.  The board may use nine cents 
of the registered nurse surcharge and six cents of the vocational 
nurse surcharge to cover the administrative costs of collecting and 
depositing the surcharge.  The board quarterly shall transmit the 
remainder of each surcharge to the Department of State Health 
Services to be used only to implement the nursing resource section 
under Section 105.002, Health and Safety Code.  The board is not 
required to collect the surcharge if the board determines the funds 
collected are not appropriated for the purpose of funding the 
nursing resource section.
	SECTION 2.  Section 301.157, Occupations Code, is amended by 
amending Subsection (d-4) and adding Subsections (d-8), (d-9), 
(d-10), and (d-11) to read as follows:
	(d-4)  The board may recognize and accept as approved under 
this section a school of nursing or educational program operated in 
another state and approved by a state board of nursing or other 
regulatory body of that [another] state.  The board shall develop 
policies to ensure that the other state's [state board's] standards 
are substantially equivalent to the board's standards.  
	(d-8)  For purposes of Subsection (d-4), a nursing program is 
considered to meet standards substantially equivalent to the 
board's standards if the program:
		(1)  is part of an institution of higher education 
located outside this state that is approved by the appropriate 
regulatory authorities of that state;
		(2)  holds regional accreditation by an accrediting 
body recognized by the United States secretary of education and the 
Council for Higher Education Accreditation;
		(3)  holds specialty accreditation by an accrediting 
body recognized by the United States secretary of education and the 
Council for Higher Education Accreditation, including the National 
League for Nursing Accrediting Commission;
		(4)  requires program applicants to be a licensed 
practical or vocational nurse, a military service corpsman, or a 
paramedic, or to hold a college degree in a clinically oriented 
health care field with demonstrated experience providing direct 
patient care; and
		(5)  graduates students who:                                           
			(A)  achieve faculty-determined program outcomes, 
including passing criterion-referenced examinations of nursing 
knowledge essential to beginning a registered nursing practice and 
transitioning to the role of registered nurse;
			(B)  pass a criterion-referenced summative 
performance examination developed by faculty subject matter 
experts that measures clinical competencies essential to beginning 
a registered nursing practice and that meets nationally recognized 
standards for educational testing, including the educational 
testing standards of the American Educational Research 
Association, the American Psychological Association, and the 
National Council on Measurement in Education; and
			(C)  pass the National Council Licensure 
Examination for Registered Nurses at a rate equivalent to the 
passage rate for students of approved in-state programs.
	(d-9)  A graduate of a clinical competency assessment 
program operated in another state and approved by a state board of 
nursing or other regulatory body of another state is eligible to 
apply for an initial license under this chapter if:
		(1)  the board allowed graduates of the program to 
apply for an initial license under this chapter continuously during 
the 10-year period preceding January 1, 2007;
		(2)  the program does not make any substantial changes 
in the length or content of its clinical competency assessment 
without the board's approval;
		(3)  the program remains in good standing with the 
state board of nursing or other regulatory body in the other state; 
and
		(4)  the program participates in the research study 
under Section 105.008, Health and Safety Code.
	(d-10)  In this section, the terms "clinical competency 
assessment program" and "supervised clinical learning experiences 
program" have the meanings assigned by Section 105.008, Health and 
Safety Code.
	(d-11)  This subsection and Subsections (d-8), (d-9), and 
(d-10) expire December 31, 2017.  As part of the first review 
conducted under Section 301.003 after September 1, 2009, the Sunset 
Advisory Commission shall:
		(1)  recommend whether Subsections (d-8) and (d-9) 
should be extended; and
		(2)  recommend any changes to Subsections (d-8) and 
(d-9) relating to the eligibility for a license of graduates of a 
clinical competency assessment program operated in another state.
	SECTION 3.  Section 63.202(f), Education Code, is amended to 
read as follows:
	(f)  Notwithstanding the limitation provided by Subsection 
(b), grants awarded under Subsection (c) for the state fiscal 
biennium ending on August 31, 2009, and the fiscal biennium ending 
on August 31, 2011, by the Texas Higher Education Coordinating 
Board shall be awarded to programs preparing students for initial 
licensure as registered nurses or programs preparing qualified 
faculty members with a master's or doctoral degree for the program, 
including programs at two-year institutions of higher education, 
four-year general academic teaching institutions, health science 
centers, and independent or private institutions of higher 
education, or to the nursing resource section established under 
Section 105.002(b), Health and Safety Code.  In awarding grants 
under this subsection, the coordinating board may:
		(1)  give priority to institutions proposing to address 
the shortage of registered nurses by promoting innovation in 
education, recruitment, and retention of nursing students and 
qualified faculty;
		(2)  award grants on a competitive basis; [and]              
		(3)  consider the availability of matching funds; and                  
		(4)  fund a study by the nursing resource section to 
evaluate the competencies of clinical judgment and behaviors that 
professional nursing students should possess at the time of 
graduation.
	SECTION 4.  Chapter 105, Health and Safety Code, is amended 
by adding Section 105.008 to read as follows:
	Sec. 105.008.  STUDY OF ALTERNATE WAYS TO ASSURE CLINICAL 
COMPETENCY OF GRADUATES OF NURSING EDUCATIONAL PROGRAMS.  (a)  In 
this section:
		(1)  "Clinical competency assessment program" means a 
professional nursing prelicensure program that employs a 
criterion-referenced summative performance examination, developed 
by subject matter experts, to verify its graduates' attainment of 
the clinical competency necessary for initial licensure as a 
registered nurse.
		(2)  "Professional nursing prelicensure program" means 
a professional nursing educational program that prepares students 
to obtain an initial license as a registered nurse.
		(3)  "Research study" means the study described by 
Subsection (b).   
		(4)  "Supervised clinical learning experiences 
program" means a professional nursing prelicensure program that 
requires students to complete a required number of supervised 
clinical learning experiences provided by qualified clinical 
faculty involving multiple, ongoing assessments and feedback.
	(b)  To the extent funding is available, the nursing resource 
section established under Section 105.002(b) shall conduct a 
research study to identify:
		(1)  a set of expected student outcomes in terms of 
clinical judgment and behaviors that professional nursing students 
should possess at the time of graduation from a professional 
nursing prelicensure program;
		(2)  standardized, reliable, and valid clinical exit 
evaluation tools that could be used to evaluate the competencies in 
clinical judgment and behaviors that professional nursing students 
possess at the time of graduation from a professional nursing 
prelicensure program;
		(3)  any correlation between the success rate of 
graduates of professional nursing prelicensure programs on 
standardized clinical exit evaluation tools and their educational 
and experiential background, including:
			(A)  length and type of health care work 
experience before entering the professional nursing prelicensure 
programs;
			(B)  health care work experience during the 
professional nursing prelicensure programs; and
			(C)  alternative methods of teaching clinical 
judgment and behaviors, including supervised clinicals and 
simulation laboratories; and
		(4)  any correlation between the required number of 
hours in supervised clinical learning experiences and expected 
student outcomes in terms of clinical judgment and behaviors.
	(c)  In addition to any other objective, the research study 
must be designed to determine if the graduates of a clinical 
competency assessment program are substantially equivalent to the 
graduates of supervised clinical learning experiences programs in 
terms of clinical judgments and behaviors.  For purposes of this 
subsection, the clinical competency assessment program must be one 
that:
		(1)  has been requiring a clinical competency 
assessment for at least 10 years;
		(2)  has students who reside in this state;                            
		(3)  has graduates who have been considered by the 
Texas Board of Nursing to be eligible to apply for a registered 
nurse license as a result of graduating from the program on or 
before January 1, 2007; and
		(4)  conducts the clinical competency assessment at a 
facility or facilities located in this state under the supervision 
of a qualified clinical faculty member who is a registered nurse and 
who holds a master's or doctoral degree in nursing.
	(d)  Considerations to be used in determining substantial 
equivalence under Subsection (c) must include the differences 
between the clinical competency assessment program and the 
supervised clinical learning experiences program in:
		(1)  the methods of evaluating students' clinical 
judgment and behaviors;
		(2)  performance on standardized clinical exit 
evaluation tools;     
		(3)  the ability of graduates to transition to and 
assimilate in the registered nurse's role; and
		(4)  passage rates on the National Council Licensure 
Examination.    
	(e)  The nursing resource section shall contract with an 
independent researcher to develop the research design and conduct 
the research. The independent researcher must be selected by a 
selection committee composed of:
		(1)  one representative elected by a majority of the 
nursing advisory committee under Section 104.0155, who is the chair 
of the selection committee;
		(2)  one representative designated by the Texas Health 
Care Policy Council;
		(3)  the presiding officer of the Texas Board of 
Nursing;            
		(4)  one representative of the Texas Higher Education 
Coordinating Board, designated by the governor;
		(5)  one representative designated by the Texas 
Hospital Association;
		(6)  one representative designated by the Texas 
Association of Business;
		(7)  one representative designated by a clinical 
competency assessment program that meets the requirements of 
Section 301.157(d-8), Occupations Code; and
		(8)  the nurse researcher member of the nursing 
advisory committee under Section 104.0155.
	(f)  The nursing resource section shall complete the study 
not later than June 30, 2014, and shall submit a report to the 
office of the governor, the Senate Committee on Health and Human 
Services, and the House Committee on Public Health.  The report must 
include a research abstract prepared by the independent researcher.
	(g)  The nursing resource section may cooperate with the 
Texas Board of Nursing and the Texas Higher Education Coordinating 
Board in conducting the study.
	(h)  The nursing advisory committee formed under Section 
104.0155 shall serve as the oversight committee for the study.
	(i)  Any data collected as part of the study that contains 
information identifying specific students, patients, or health 
care facilities is confidential, is not subject to disclosure under 
Chapter 552, Government Code, and may not be released unless all 
identifying information is removed.
	(j)  In addition to funds appropriated by the legislature, 
the nursing resource section may solicit, receive, and spend 
grants, gifts, and donations from public or private sources for the 
purpose of conducting the study.
	(k)  If grants or other funds are available through the 
National Council of State Boards of Nursing that could be used to 
fund the study, the nursing resource section shall apply for the 
funds to the maximum amount available up to the estimated cost of 
the study.  In making the application or accepting the funding, the 
nursing resource section may not relinquish any oversight 
responsibility for the study, including responsibility for 
designing and conducting the research or developing the findings.
	SECTION 5.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2009.