82R3823 MCK-D

By: Deshotel H.B. No. 1181

A BILL TO BE ENTITLED

AN ACT

relating to abolishing the Texas Department of Rural Affairs and transferring its functions to the Texas Department of Housing and Community Affairs, Department of State Health Services, and Department of Agriculture.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 38.060(a), Education Code, is amended to read as follows:

(a) This section applies only to a school-based health center serving an area that:

(1) is located in a county with a population not greater than 50,000; or

(2) has been designated under state or federal law as:

(A) a health professional shortage area;

(B) a medically underserved area; or

(C) a medically underserved community by the [Texas] Department of State Health Services [Rural Affairs].

SECTION 2. Sections 51.918(a) and (c), Education Code, are amended to read as follows:

(a) The Texas Higher Education Coordinating Board, the [Texas] Department of State Health Services [Rural Affairs], medical schools, nursing schools, and schools of allied health sciences shall cooperate to improve and expand programs for rural areas.

(c) The [Texas] Department of State Health Services [Rural Affairs] shall develop relief service programs for rural physicians and allied health personnel to facilitate ready access to continuing medical education as well as to provide practice coverage for purposes other than continuing medical education.

SECTION 3. Section 58.007(b)(1), Education Code, is amended to read as follows:

(1) The Primary Care Residency Advisory Committee is created and shall consist of 12 members as follows:

(A) seven members shall be licensed physicians, one appointed by each of the following:

(i) the Texas Medical Association;

(ii) the Texas Osteopathic Medical Association;

(iii) the Texas Academy of Family Physicians;

(iv) the Texas Society of the American College of Osteopathic Family Physicians;

(v) the Texas Society of Internal Medicine;

(vi) the Texas Pediatric Society; and

(vii) the Texas Association of Obstetricians and Gynecologists;

(B) one member shall be appointed by the [Texas] Department of State Health Services [Rural Affairs];

(C) one member shall be appointed by the Bureau of Community Oriented Primary Care at the Department of State Health Services; and

(D) three members shall be members of the public, one appointed by each of the following:

(i) the governor;

(ii) the lieutenant governor; and

(iii) the speaker of the house of representatives.

SECTION 4. Section 61.0899, Education Code, is amended to read as follows:

Sec. 61.0899. ASSISTANCE IN CERTAIN RURAL HEALTH CARE LOAN REIMBURSEMENT AND STIPEND PROGRAMS. The board shall, in cooperation with the [Texas] Department of State Health Services [Rural Affairs] and the department's advisory panel established under Section 487.552, Government Code, ensure that the board seeks to obtain the maximum amount of funds from any source, including federal funds, to support programs to provide student loan reimbursement or stipends for graduates of degree programs in this state who practice or agree to practice in a medically underserved community.

SECTION 5. Section 403.1065(c), Government Code, is amended to read as follows:

(c) The available earnings of the fund may be appropriated to the [Texas] Department of State Health Services [Rural Affairs] for the purposes of Subchapter H, Chapter 487.

SECTION 6. Section 405.021(c), Government Code, is amended to read as follows:

(c) The secretary of state shall compile information received from [the Office of Rural Community Affairs,] the Texas Water Development Board, the Texas Transportation Commission, the Texas Department of Housing and Community Affairs, the Department of State Health Services, the Texas Commission on Environmental Quality, the Health and Human Services Commission, the Texas Cooperative Extension, councils of governments, an institution of higher education that receives funding from the state for projects that provide assistance to colonias, and any other agency considered appropriate by the secretary of state for purposes of the classification system.

SECTION 7. Section 481.0215(b), Government Code, is amended to read as follows:

(b) At the direction of the governor, the executive director of the department or its successor shall work with each state agency that administers a program relating to job training or job creation, including the Texas Workforce Commission, the Council on Workforce and Economic Competitiveness, the Department of Agriculture, and the Texas Department of Housing and Community [Office of Rural] Affairs, to address the challenges facing the agencies relating to job training and job creation.

SECTION 8. The heading to Chapter 487, Government Code, is amended to read as follows:

CHAPTER 487. PROGRAMS AFFECTING [TEXAS DEPARTMENT OF] RURAL

COMMUNITIES [AFFAIRS]

SECTION 9. Section 487.051, Government Code, is amended to read as follows:

Sec. 487.051. POWERS AND DUTIES OF TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS. (a) In this section, "department" means the Texas Department of Housing and Community Affairs.

(b) The department shall:

(1) assist rural communities in the key areas of economic development, community development, [rural health,] and rural housing;

(2) serve as a clearinghouse for information and resources on [all] state and federal programs affecting economic development, community development, and housing in rural communities;

(3) in consultation with rural community leaders, locally elected officials, state elected and appointed officials, academic and industry experts, and the interagency work group created under this chapter, identify and prioritize policy issues and concerns relating to economic development, community development, and housing affecting rural communities in the state;

(4) make recommendations to the legislature to address the concerns affecting rural communities identified under Subdivision (3);

(5) monitor developments relating to economic development, community development, and housing that have a substantial effect on rural Texas communities, especially actions of state government, and compile an annual report describing and evaluating the condition of rural communities;

(6) administer the federal community development block grant nonentitlement program;

(7) [administer programs supporting rural health care as provided by this chapter;

[(8)] perform research to determine the most beneficial and cost-effective ways to improve the welfare of rural communities; and

(8) [(9) ensure that the department qualifies as the state's office of rural health for the purpose of receiving grants from the Office of Rural Health Policy of the United States Department of Health and Human Services under 42 U.S.C. Section 254r;

[(10) manage the state's Medicare rural hospital flexibility program under 42 U.S.C. Section 1395i-4;

[(11)] seek state and federal money available for economic development in rural areas for programs under this chapter[;

[(12) in conjunction with the Department of Agriculture, regularly cross-train department employees with employees of the Department of Agriculture regarding the programs administered and services provided by each agency to rural communities; and

[(13) work with interested persons to assist volunteer fire departments and emergency services districts in rural areas].

[(b) The department may require department employees who work at locations other than the central office to be based in Department of Agriculture offices.]

SECTION 10. Subchapter C, Chapter 487, Government Code, is amended by adding Sections 487.0511 and 487.0512 to read as follows:

Sec. 487.0511. POWERS AND DUTIES OF DEPARTMENT OF STATE HEALTH SERVICES. (a) In this section, "department" means the Department of State Health Services.

(b) The department shall:

(1) assist rural communities in the area of rural health;

(2) serve as a clearinghouse for information and resources on all state and federal programs affecting rural health;

(3) in consultation with rural community leaders, locally elected officials, state elected and appointed officials, academic and industry experts, and the interagency work group created under this chapter, identify and prioritize policy issues and concerns affecting rural health in the state;

(4) make recommendations to the legislature to address the concerns affecting rural communities identified under Subdivision (3);

(5) monitor developments that have a substantial effect on rural health, especially actions of state government, and compile an annual report describing and evaluating the condition of rural communities;

(6) administer programs supporting rural health care as provided by this chapter;

(7) perform research to determine the most beneficial and cost-effective ways to improve health care in communities;

(8) ensure that the department qualifies as the state's office of rural health for the purpose of receiving grants from the Office of Rural Health Policy of the United States Department of Health and Human Services under 42 U.S.C. Section 254r;

(9) manage the state's Medicare rural hospital flexibility program under 42 U.S.C. Section 1395i-4; and

(10) work with interested persons to assist volunteer fire departments and emergency services districts in rural areas.

Sec. 487.0512. POWERS AND DUTIES OF DEPARTMENT OF AGRICULTURE. (a) In this section, "department" means the Department of Agriculture.

(b) The department shall:

(1) assist rural communities regarding renewable energy and water projects;

(2) serve as a clearinghouse for information and resources on renewable energy and water projects in rural communities;

(3) in consultation with rural community leaders, locally elected officials, state elected and appointed officials, academic and industry experts, and the interagency work group created under this chapter, identify and prioritize policy issues and concerns affecting renewable energy and water projects in rural communities in the state;

(4) make recommendations to the legislature to address the concerns affecting rural communities identified under Subdivision (3); and

(5) monitor developments that have a substantial effect on rural Texas communities, especially actions of state government, and compile an annual report describing and evaluating renewable energy and water projects in rural communities.

SECTION 11. Section 487.053, Government Code, is amended to read as follows:

Sec. 487.053. GIFTS AND GRANTS. [(a)] The Texas Department of Housing and Community Affairs, Department of State Health Services, and Department of Agriculture [department] may accept gifts, grants, and donations from any organization for the purpose of funding any activity under this chapter, and the departments [department] shall actively seek funding from appropriate nonprofit foundations.

[(b) All gifts, grants, and donations must be accepted in an open meeting by a majority of the voting members of the board and reported in the public record of the meeting with the name of the donor and purpose of the gift, grant, or donation.]

SECTION 12. Sections 487.054(a) and (b), Government Code, are amended to read as follows:

(a) At least once each year, the following agency heads or their designees shall meet in Austin to discuss rural issues and to provide information showing the impact each agency has on rural communities for use in developing rural policy and compiling the annual reports [report] under Sections 487.051(b)(5), 487.0511(b)(5), and 487.052(b)(5) [Section 487.051(a)(5)]:

(1) the commissioner of agriculture;

(2) the executive director of the Public Utility Commission of Texas;

(3) the director of the Texas AgriLife [Agricultural] Extension Service;

(4) the executive director of the Texas Department of Housing and Community Affairs;

(5) the commissioner of the Department of State Health Services;

(6) the executive administrator of the Texas Water Development Board;

(7) the executive director of the Parks and Wildlife Department;

(8) the commissioner of higher education;

(9) the comptroller;

(10) the executive director of the Texas Department of Transportation;

(11) the executive director of the Texas Commission on Environmental Quality;

(12) the executive director of the Texas Economic Development and Tourism Office;

(13) the commissioner of insurance;

(14) the commissioner of the Department of Aging and Disability Services;

(15) the commissioner of education;

(16) the executive commissioner of the Health and Human Services Commission;

(17) the executive director of the Texas Workforce Commission;

(18) the executive director of the Texas Historical Commission;

(19) a member of the Railroad Commission of Texas;

(20) the executive director of the State Soil and Water Conservation Board; and

(21) [the executive director of the department; and

[(22)] the head of any other agency interested in rural issues.

(b) The commissioner of agriculture [board] shall call the annual meeting. The commissioner of agriculture [board] shall set the time and date of the meeting after consulting with the agency heads listed in Subsection (a).

SECTION 13. Section 487.0541(c), Government Code, is amended to read as follows:

(c) The work group shall meet at the call of the commissioner of agriculture [executive director of the department].

SECTION 14. Section 487.056, Government Code, is amended to read as follows:

Sec. 487.056. REPORT TO LEGISLATURE. (a) Not later than January 1 of each odd-numbered year, the Texas Department of Housing and Community Affairs, Department of State Health Services, and Department of Agriculture [department] shall each submit a biennial report to the legislature regarding that agency's [the activities of the department, the] activities [of the Texas Rural Foundation,] and any findings and recommendations relating to rural issues. The Texas Department of Housing and Community Affairs shall include in its report the activities of the Texas Rural Foundation.

(b) The Department of State Health Services [department] shall obtain information from each county about indigent health care provided in the county and information from each university, medical school, rural community, or rural health care provider that has performed a study relating to rural health care during the biennium. The department shall include the information obtained under this subsection in the department's report to the legislature.

(c) The Texas Department of Housing and Community Affairs [department] shall obtain information on the availability of housing in rural communities throughout the state for all income levels. The department shall include the information, and the department's assessment of the information, in the department's report to the legislature.

SECTION 15. Section 487.057(a), Government Code, is amended to read as follows:

(a) The Department of State Health Services [department] shall develop, implement, and update a rural health work plan.

SECTION 16. Sections 487.059(b), (c), and (e), Government Code, are amended to read as follows:

(b) If a member of the governing board of a state agency described by Subsection (c) [the board] or a committee established under this chapter, including an advisory committee, has a financial interest in an entity that applies for a monetary award, the board or committee member shall, before a vote on the monetary award, disclose the fact of the board or committee member's financial interest. The board or committee shall enter the disclosure into the minutes of the meeting at which a vote on the monetary award is taken. The board or committee member may not vote on or otherwise participate in a discussion or any other activity that relates to awarding the monetary award. If the board or committee member does not comply with this subsection, the entity is not eligible for the monetary award.

(c) If the executive director or another [department] employee of the Texas Department of Housing and Community Affairs, Department of State Health Services, or Department of Agriculture has a financial interest in an entity that applies for a monetary award, the executive director or employee:

(1) shall, as soon as possible, disclose to the governing board of the agency [board] the fact of the director's or employee's financial interest;

(2) may not participate in staff evaluations regarding the monetary award; and

(3) if the executive director or employee under the agency's [department] procedures may vote, or make a recommendation concerning a vote, on a matter that involves the monetary award:

(A) shall disclose the fact of the director's or employee's financial interest before a vote on the monetary award, which the board or committee shall enter into the minutes of the meeting at which a vote on the monetary award is taken; and

(B) may not vote on or otherwise participate in a discussion or any other activity that relates to awarding the monetary award.

(e) Subsections (f) and (g) apply only to a member of the board or a committee who is employed by:

(1) an entity that offers to enter into a contract with the Texas Department of Housing and Community Affairs, Department of State Health Services, or Department of Agriculture [department]; or

(2) an entity that is under common ownership or governance with or otherwise affiliated with an entity that applies for a monetary award or offers to enter into a contract with the Texas Department of Housing and Community Affairs, Department of State Health Services, or Department of Agriculture [department].

SECTION 17. Section 487.060(a), Government Code, is amended to read as follows:

(a) In this section:

(1) "Colonia [, "colonia]" means a geographic area that:

(A) [(1)] is an economically distressed area as defined by Section 17.921, Water Code;

(B) [(2)] is located in a county any part of which is within 62 miles of an international border; and

(C) [(3)] consists of 11 or more dwellings that are located in close proximity to each other in an area that may be described as a community or neighborhood.

(2) "Department" means the Texas Department of Housing and Community Affairs.

SECTION 18. Section 487.061(a), Government Code, is amended to read as follows:

(a) The Department of State Health Services [department] shall establish a program to provide interested rural communities with:

(1) general information about emergency services districts;

(2) information and training related to the establishment of an emergency services district; and

(3) technical assistance related to the implementation of an emergency services district.

SECTION 19. Section 487.101, Government Code, is amended by amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to read as follows:

(1) "Commissioner" means the commissioner of the Department of State Health Services.

(1-a) "Department" means the Department of State Health Services.

(1-b) "Selection committee" means the Outstanding Rural Scholar Selection Committee.

SECTION 20. Sections 487.103(a), (b), and (c), Government Code, are amended to read as follows:

(a) The selection committee shall advise the commissioner [board] on the progress of the program.

(b) The selection committee is composed of 12 members appointed by the commissioner [board].

(c) The commissioner [board] shall consider geographical representation in making appointments to the selection committee.

SECTION 21. Sections 487.104(b) and (d), Government Code, are amended to read as follows:

(b) The selection committee shall make selections based on criteria approved by the commissioner [board] and adopted as a rule of the department.

(d) The selection committee shall recommend to the commissioner [board] guidelines to be used by rural communities in the selection of students for nomination and sponsorship as outstanding rural scholars.

SECTION 22. Section 487.107, Government Code, is amended to read as follows:

Sec. 487.107. AWARDING OF LOANS. (a) The selection committee shall recommend to the commissioner [board] guidelines for the awarding of forgivable loans to outstanding rural scholars.

(b) The commissioner [board], acting on the advice of the selection committee, shall award forgivable loans to outstanding rural scholars based on the availability of money in the fund.

(c) If in any year the fund is inadequate to provide loans to all eligible applicants, the commissioner [board] shall award forgivable loans on a priority basis according to the applicants' academic performance, test scores, and other criteria of eligibility.

SECTION 23. Section 487.108(a), Government Code, is amended to read as follows:

(a) On confirmation of an outstanding rural scholar's admission to a postsecondary educational institution, or on receipt of an enrollment report of the scholar at a postsecondary educational institution, and a certification of the amount of financial support needed, the selection committee annually shall recommend to the commissioner [board] that the commissioner [board] award a forgivable loan to the scholar in the amount of 50 percent of the cost of the scholar's tuition, fees, educational materials, and living expenses.

SECTION 24. Sections 487.109(b), (c), and (d), Government Code, are amended to read as follows:

(b) The sponsoring community shall report to the commissioner [board] the length of time the scholar practices as a health care professional in the community.

(c) If the commissioner [board] finds that a sponsoring community is not in need of the scholar's services and that the community is willing to forgive repayment of the principal balance and interest of the scholar's loan, the commissioner [board] by rule may provide for the principal balance and interest of one year of the scholar's loan to be forgiven for each year the scholar practices in another rural community in this state.

(d) Any amount of loan principal or interest that is not forgiven under this section shall be repaid to the department with reasonable collection fees in a timely manner as provided by commissioner [board] rule.

SECTION 25. Section 487.112, Government Code, is amended to read as follows:

Sec. 487.112. ADOPTION AND DISTRIBUTION OF RULES. (a) The commissioner [board] shall adopt reasonable rules to enforce the requirements, conditions, and limitations under this subchapter.

(b) The commissioner [board] shall set the rate of interest charged on a forgivable loan under this subchapter.

(c) The commissioner [board] shall adopt rules necessary to ensure compliance with the federal Civil Rights Act of 1964 (42 U.S.C. Section 2000a et seq.) concerning nondiscrimination in admissions.

SECTION 26. Section 487.151, Government Code, is amended by amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to read as follows:

(1) "Commissioner" means the commissioner of the Department of State Health Services.

(1-a) "Department" means the Department of State Health Services.

(1-b) "Fund" means the health careers education fund.

SECTION 27. Section 487.154, Government Code, is amended to read as follows:

Sec. 487.154. LOANS. (a) The commissioner [board] may award forgivable educational loans to eligible students under this subchapter.

(b) The commissioner [board] may award forgivable loans to eligible students based on the availability of money in the fund.

(c) If in any year the fund is inadequate to provide loans to all eligible students, the commissioner [board] may award forgivable loans on a priority basis according to the students' academic performance, test scores, and other criteria of eligibility.

SECTION 28. Section 487.155(a), Government Code, is amended to read as follows:

(a) To be eligible to receive a loan under this subchapter, a student must:

(1) be sponsored by an eligible community;

(2) at the time of the application for the loan, be enrolled in high school or enrolled or accepted for enrollment in a postsecondary educational institution in this state;

(3) meet academic requirements as established by the commissioner [board];

(4) plan to complete a health care professional degree or certificate program;

(5) plan to practice as a health care professional in a qualified area of the state; and

(6) meet other requirements as established by the commissioner [board].

SECTION 29. Section 487.156(c), Government Code, is amended to read as follows:

(c) The commissioner [board] shall determine the percentage of educational expenses communities are required to provide under this section.

SECTION 30. Section 487.157(a), Government Code, is amended to read as follows:

(a) On confirmation of an eligible student's admission to a postsecondary educational institution, or on receipt of an enrollment report of the student at a postsecondary educational institution, and certification of the amount of financial support needed, the commissioner [board] may award a forgivable loan to the student in the amount of not more than the cost of the student's tuition, fees, educational materials, and living expenses.

SECTION 31. Section 487.158(b), Government Code, is amended to read as follows:

(b) The contract must provide that if the student does not provide the required services to the community or provides those services for less than the required time, the student is personally liable to the state for:

(1) the total amount of assistance the student receives from the department and the sponsoring community;

(2) interest on the total amount at a rate set by the commissioner [board]; and

(3) the state's reasonable expenses incurred in obtaining payment, including reasonable attorney's fees.

SECTION 32. Section 487.159(b), Government Code, is amended to read as follows:

(b) If the commissioner [board] finds that a sponsoring community is not in need of the student's services and that the community is willing to forgive repayment of the principal balance and interest of the student's loan, the commissioner [board] by rule may provide for the principal balance and interest of the student's loan to be forgiven if the student provides services in another qualified area in this state.

SECTION 33. Sections 487.161(b) and (c), Government Code, are amended to read as follows:

(b) The sponsoring community shall report to the commissioner [board] the length of time the student provides health care services in the community in accordance with the guidelines established by the commissioner [board].

(c) A postsecondary educational institution shall provide to the commissioner [board] a copy of the academic transcript of each student for whom the institution has received a release that complies with state and federal open records laws and that authorizes the provision of the transcript.

SECTION 34. Section 487.163, Government Code, is amended to read as follows:

Sec. 487.163. ADOPTION OF RULES. (a) The commissioner [board] shall adopt reasonable rules to enforce the requirements, conditions, and limitations of this subchapter.

(b) The commissioner [board] shall set the rate of interest charged on a forgivable loan under this subchapter.

(c) The commissioner [board] shall adopt rules necessary to ensure compliance with the federal Civil Rights Act of 1964 (42 U.S.C. Section 2000a et seq.) concerning nondiscrimination in admissions.

SECTION 35. Section 487.201, Government Code, is amended by amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to read as follows:

(1) "Commissioner" means the commissioner of the Department of State Health Services.

(1-a) "Department" means the Department of State Health Services.

(1-b) "Medically underserved community" means:

(A) a community located in an area in this state with a medically underserved population;

(B) a community located in an area in this state designated by the United States secretary of health and human services as an area with a shortage of personal health services;

(C) a population group designated by the United States secretary of health and human services as having a shortage of personal health services;

(D) a community designated under state or federal law as a medically underserved community; or

(E) a community that the department considers to be medically underserved based on relevant demographic, geographic, and environmental factors.

SECTION 36. Sections 487.202(a), (d), and (e), Government Code, are amended to read as follows:

(a) The commissioner [board] shall establish and administer a program under this subchapter to increase the number of physicians providing primary care in medically underserved communities.

(d) The department may not pay more than $25,000 to a community in a fiscal year unless the commissioner [board] makes a specific finding of need by the community.

(e) The commissioner [board] shall establish priorities so that the neediest communities eligible for assistance under this subchapter are assured the receipt of a grant.

SECTION 37. Section 487.203, Government Code, is amended to read as follows:

Sec. 487.203. ELIGIBILITY. To be eligible to receive money from the department, a medically underserved community must:

(1) apply for the money; and

(2) provide evidence satisfactory to the commissioner [board] that it has entered into an agreement with a physician for the physician to provide primary care in the community for at least two years.

SECTION 38. Section 487.204, Government Code, is amended to read as follows:

Sec. 487.204. RULES. The commissioner [board] shall adopt rules necessary for the administration of this subchapter, including rules addressing:

(1) eligibility criteria for a medically underserved community;

(2) eligibility criteria for a physician;

(3) minimum and maximum community contributions to the start-up money for a physician to be matched with state money;

(4) conditions under which state money must be repaid by a community or physician;

(5) procedures for disbursement of money by the department;

(6) the form and manner in which a community must make its contribution to the start-up money; and

(7) the contents of an agreement to be entered into by the parties, which must include at least:

(A) a credit check for an eligible physician; and

(B) community retention of interest in any property, equipment, or durable goods for seven years.

SECTION 39. Section 487.251, Government Code, is amended by amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to read as follows:

(1) "Commissioner" means the commissioner of the Department of State Health Services.

(1-a) "Department" means the Department of State Health Services.

(1-b) "Medically underserved area" means an area designated by the United States secretary of health and human services as having:

(A) a shortage of personal health services or a population group that has such a shortage as provided by 42 U.S.C. Section 300e-1(7); or

(B) a health professional shortage as provided by 42 U.S.C. Section 254e(a)(1).

SECTION 40. Section 487.252, Government Code, is amended to read as follows:

Sec. 487.252. TEXAS HEALTH SERVICE CORPS PROGRAM. (a) The commissioner [board] shall establish a program in the department to assist communities in recruiting and retaining physicians to practice in medically underserved areas.

(b) The commissioner [board] by rule shall establish:

(1) eligibility criteria for applicants;

(2) stipend application procedures;

(3) guidelines relating to stipend amounts;

(4) procedures for evaluating stipend applications; and

(5) a system of priorities relating to the:

(A) geographic areas covered;

(B) medical specialties eligible to receive funding under the program; and

(C) level of stipend support.

SECTION 41. Section 487.253(a), Government Code, is amended to read as follows:

(a) The commissioner [board] shall adopt rules necessary to administer this subchapter, and the department shall administer the program in accordance with those rules.

SECTION 42. Section 487.301, Government Code, is amended by amending Subdivision (1) and adding Subdivision (1-a) to read as follows:

(1) "Department" means the Department of State Health Services.

(1-a) "Public hospital" means a general or special hospital licensed under Chapter 241, Health and Safety Code, that is owned or operated by a municipality, county, municipality and county, hospital district, or hospital authority and that performs inpatient or outpatient services.

SECTION 43. Subchapter I, Chapter 487, Government Code, is amended by adding Section 487.3511 to read as follows:

Sec. 487.3511. DEFINITIONS. In this subchapter:

(1) "Board" means the governing board of the Texas Department of Housing and Community Affairs.

(2) "Department" means the Texas Department of Housing and Community Affairs.

SECTION 44. Section 487.401, Government Code, is amended to read as follows:

Sec. 487.401. ADMINISTRATION. (a) In this section:

(1) "Commissioner" means the commissioner of the Department of State Health Services.

(2) "Department" means the Department of State Health Services.

(b) The commissioner [board] shall adopt rules that establish a procedure for designating a hospital as a rural hospital in order for the hospital to qualify for federal funds under 42 C.F.R. Part 412.

(c) [(b)] At the hospital's request, the department shall designate the hospital as a rural hospital if the hospital meets the requirements for a rural hospital under the commissioner's [board's] rules.

SECTION 45. Section 487.451, Government Code, is amended by amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to read as follows:

(1) "Commissioner" means the commissioner of the Department of State Health Services.

(1-a) "Department" means the Department of State Health Services.

(1-b) "Health care professional" means:

(A) an advanced nurse practitioner;

(B) a dentist;

(C) a dental hygienist;

(D) a laboratory technician;

(E) a licensed vocational nurse;

(F) a licensed professional counselor;

(G) a medical radiological technologist;

(H) an occupational therapist;

(I) a pharmacist;

(J) a physical therapist;

(K) a physician;

(L) a physician assistant;

(M) a psychologist;

(N) a registered nurse;

(O) a social worker;

(P) a speech-language pathologist;

(Q) a veterinarian;

(R) a chiropractor; and

(S) another appropriate health care professional identified by the board.

SECTION 46. Section 487.452(a), Government Code, is amended to read as follows:

(a) The commissioner [board], in collaboration with Area Health Education Center Programs, shall establish a community health care [healthcare] awareness and mentoring program for students to:

(1) identify high school students in rural and underserved urban areas who are interested in serving those areas as health care professionals;

(2) identify health care professionals in rural and underserved urban areas to act as positive role models, mentors, or reference resources for the interested high school students;

(3) introduce interested high school students to the spectrum of professional health care careers through activities such as health care camps and shadowing of health care professionals;

(4) encourage a continued interest in service as health care professionals in rural and underserved urban areas by providing mentors and community resources for students participating in training or educational programs to become health care professionals; and

(5) provide continuing community-based support for students during the period the students are attending training or educational programs to become health care professionals, including summer job opportunities and opportunities to mentor high school students in the community.

SECTION 47. Section 487.454, Government Code, is amended to read as follows:

Sec. 487.454. GRANTS; ELIGIBILITY. (a) Subject to available funds, the commissioner [board] shall develop and implement, as a component of the program, a grant program to support employment opportunities in rural and underserved urban areas in this state for students participating in training or educational programs to become health care professionals.

(b) In awarding grants under the program, the commissioner [board] shall give first priority to grants to training or educational programs that provide internships to students.

(c) To be eligible to receive a grant under the grant program, a person must:

(1) apply for the grant on a form adopted by the commissioner [board];

(2) be enrolled or intend to be enrolled in a training or educational program to become a health care professional;

(3) commit to practice or work, after licensure as a health care professional, for at least one year as a health care professional in a rural or underserved urban area in this state; and

(4) comply fully with any practice or requirements associated with any scholarship, loan, or other similar benefit received by the student.

(d) As a condition of receiving a grant under the program the student must agree to repay the amount of the grant, plus a penalty in an amount established by rule of the commissioner [board] not to exceed two times the amount of the grant, if the student becomes licensed as a health care professional and fails to practice or work for at least one year as a health care professional in a rural or underserved urban area in this state.

SECTION 48. Section 487.501, Government Code, is amended by amending Subdivision (1) and adding Subdivision (1-a) to read as follows:

(1) "Department" means the Department of State Health Services.

(1-a) "Rural community" means a rural area as defined by the department.

SECTION 49. Section 487.551, Government Code, is amended by amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to read as follows:

(1) "Commissioner" means the commissioner of the Department of State Health Services.

(1-a) "Department" means the Department of State Health Services.

(1-b) "Health professional" means a person other than a physician who holds a license, certificate, registration, permit, or other form of authorization required by law or a state agency rule that must be obtained by an individual to practice in a health care profession.

SECTION 50. Section 487.553, Government Code, is amended to read as follows:

Sec. 487.553. LOAN REIMBURSEMENT PROGRAM. The commissioner [board] shall establish a program in the department to assist communities in recruiting health professionals to practice in medically underserved communities by providing loan reimbursement for health professionals who serve in those communities.

SECTION 51. Section 487.554(a), Government Code, is amended to read as follows:

(a) The commissioner [board] shall establish a program in the department to assist communities in recruiting health professionals to practice in medically underserved communities by providing a stipend to health professionals who agree to serve in those communities.

SECTION 52. Section 487.555(e), Government Code, is amended to read as follows:

(e) A contract under this section must provide that a health professional who does not provide the required services to the community or provides those services for less than the required time is personally liable to the state for:

(1) the total amount of assistance the health professional received from the department and the medically underserved community;

(2) interest on the amount under Subdivision (1) at a rate set by the commissioner [board];

(3) the state's reasonable expenses incurred in obtaining payment, including reasonable attorney's fees; and

(4) a penalty as established by the commissioner [board] by rule to help ensure compliance with the contract.

SECTION 53. Section 487.556, Government Code, is amended to read as follows:

Sec. 487.556. POWERS AND DUTIES OF DEPARTMENT. (a) The commissioner [board] shall adopt rules necessary for the administration of this subchapter, including guidelines for:

(1) developing contracts under which loan reimbursement or stipend recipients provide services to qualifying communities;

(2) identifying the duties of the state, state agency, loan reimbursement or stipend recipient, and medically underserved community under the loan reimbursement or stipend contract;

(3) determining a rate of interest to be charged under Section 487.555(e)(2);

(4) ensuring that a loan reimbursement or stipend recipient provides access to health services to participants in government-funded health benefits programs in qualifying communities;

(5) encouraging the use of telecommunications or telemedicine, as appropriate;

(6) prioritizing the provision of loan reimbursements and stipends to health professionals who are not eligible for any other state loan forgiveness, loan repayment, or stipend program;

(7) prioritizing the provision of loan reimbursements and stipends to health professionals who are graduates of health professional degree programs in this state;

(8) encouraging a medically underserved community served by a loan reimbursement or stipend recipient to contribute to the cost of the loan reimbursement or stipend when making a contribution is feasible; and

(9) requiring a medically underserved community served by a loan reimbursement or stipend recipient to assist the department in contracting with the loan reimbursement or stipend recipient who will serve that community.

(b) The commissioner [board] by rule may designate areas of the state as medically underserved communities.

(c) The commissioner [board] shall make reasonable efforts to contract with health professionals from a variety of different health professions.

SECTION 54. Section 487.601, Government Code, is amended by amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to read as follows:

(1) "Commissioner" means the commissioner of the Department of State Health Services.

(1-a) "Department" means the Department of State Health Services.

(1-b) "Physician" means a person licensed to practice medicine in this state under Subtitle B, Title 3, Occupations Code.

SECTION 55. Section 487.608(a), Government Code, is amended to read as follows:

(a) The rural physician relief advisory committee is composed of the following members appointed by the commissioner [board]:

(1) a physician who practices in the area of general family medicine in a rural county;

(2) a physician who practices in the area of general internal medicine in a rural county;

(3) a physician who practices in the area of general pediatrics in a rural county;

(4) a representative from an accredited Texas medical school;

(5) a program director from an accredited primary care residency program;

(6) a representative from the Texas Higher Education Coordinating Board; and

(7) a representative from the Texas Medical Board.

SECTION 56. Section 487.651, Government Code, is amended by adding Subdivision (1-a) to read as follows:

(1-a) "Department" means the Texas Department of Housing and Community Affairs.

SECTION 57. Subchapter P, Chapter 487, Government Code, is amended by adding Section 487.7011 to read as follows:

Sec. 487.7011. DEFINITION. In this subchapter, "department" means the Texas Department of Housing and Community Affairs.

SECTION 58. Section 487.751, Government Code, is amended to read as follows:

Sec. 487.751. DEFINITIONS [DEFINITION]. In this subchapter:

(1) "Department" means the Texas Department of Housing and Community Affairs.

(2) "Rural [, "rural] county" means a county that has a population of not more than 125,000.

SECTION 59. Section 490A.003(a), Government Code, is amended to read as follows:

(a) The founding members of the network are:

(1) the Texas AgriLife [Cooperative] Extension Service of The Texas A&M University System;

(2) the IC2 Institute at The University of Texas at Austin;

(3) the College of Agricultural Sciences and Natural Resources at Texas Tech University;

(4) the Department of Agriculture;

(5) the Texas Workforce Commission;

(6) the Texas Department of Housing and Community [Rural] Affairs;

(7) the Texas Center for Rural Entrepreneurship;

(8) the Texas Economic Development Council;

(9) CoSERVE at The University of Texas--Pan American;

(10) the office of external affairs at Texas Southern University; and

(11) the John F. Baugh Center for Entrepreneurship at Baylor University.

SECTION 60. Section 531.02172(b), Government Code, is amended to read as follows:

(b) The advisory committee must include:

(1) representatives of health and human services agencies and other state agencies concerned with the use of telemedical consultations in the Medicaid program and the state child health plan program, including representatives of:

(A) the commission;

(B) the Department of State Health Services;

(C) [the Texas Department of Rural Affairs;

[(D)] the Texas Department of Insurance;

(D) [(E)] the Texas Medical Board;

(E) [(F)] the Texas Board of Nursing; and

(F) [(G)] the Texas State Board of Pharmacy;

(2) representatives of health science centers in this state;

(3) experts on telemedicine, telemedical consultation, and telemedicine medical services or telehealth services; and

(4) representatives of consumers of health services provided through telemedical consultations and telemedicine medical services or telehealth services.

SECTION 61. Section 535.051(b), Government Code, is amended to read as follows:

(b) The chief administrative officer of each of the following state agencies, in consultation with the governor, shall designate one employee from the agency to serve as a liaison for faith- and community-based organizations:

(1) [the Office of Rural Community Affairs;

[(2)] the Texas Commission on Environmental Quality;

(2) [(3)] the Texas Department of Criminal Justice;

(3) [(4)] the Texas Department of Housing and Community Affairs;

(4) [(5)] the Texas Education Agency;

(5) [(6)] the Texas Juvenile Probation Commission;

(6) [(7)] the Texas Veterans Commission;

(7) [(8)] the Texas Workforce Commission;

(8) [(9)] the Texas Youth Commission; and

(9) [(10)] other state agencies as determined by the governor.

SECTION 62. Section 614.152(3), Government Code, is amended to read as follows:

(3) "State fire agency" means the:

(A) firefighters' pension commissioner;

(B) [Texas] Department of State Health Services [Rural Affairs];

(C) service;

(D) Texas Commission on Fire Protection;

(E) Texas Engineering Extension Service of The Texas A&M University System; and

(F) Texas State Fire Marshal's Office of the Texas Department of Insurance.

SECTION 63. Section 772.011(b), Government Code, is amended to read as follows:

(b) The work group is composed of the heads of the following agencies or their designees:

(1) the [Texas] Department of Agriculture [Rural Affairs];

(2) the Texas Department of Housing and Community Affairs;

(3) the Texas Water Development Board;

(4) the Texas Department of Transportation;

(5) the Texas Commission on Environmental Quality;

(6) the Texas Workforce Commission;

(7) the Department of State Health Services;

(8) the Health and Human Services Commission;

(9) the General Land Office;

(10) the Texas Education Agency;

(11) the Texas Economic Development and Tourism Office;

(12) the Office of State-Federal Relations;

(13) the Texas Higher Education Coordinating Board;

(14) the attorney general's office;

(15) the secretary of state's office;

(16) the Department of Public Safety; and

(17) the Railroad Commission of Texas.

SECTION 64. Section 775.002(d), Government Code, is amended to read as follows:

(d) The following agencies shall designate an officer or employee of the agency to serve as the agency's liaison for colonia initiatives:

(1) the office of the attorney general;

(2) the Department of State Health Services;

(3) the Texas Department of Housing and Community Affairs;

(4) the Texas Commission on Environmental Quality;

(5) the Texas Water Development Board;

(6) [the Texas Department of Rural Affairs;

[(7)] the Office of State-Federal Relations;

(7) [(8)] the Texas Department of Insurance; and

(8) [(9)] the Texas Department of Transportation.

SECTION 65. Section 2306.034(b), Government Code, is amended to read as follows:

(b) A person may not be a member of the board and may not be a department employee employed in a "bona fide executive, administrative, or professional capacity," as that phrase is used for purposes of establishing an exemption to the overtime provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:

(1) the person is an officer, employee, or paid consultant of a Texas trade association in the field of rural affairs, banking, real estate, housing development, or housing construction; or

(2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of rural affairs, banking, real estate, housing development, or housing construction.

SECTION 66. Section 2306.1092(b), Government Code, is amended to read as follows:

(b) The council is composed of 15 [16] members consisting of:

(1) the director;

(2) one representative from each of the following agencies, appointed by the head of that agency:

(A) [the Office of Rural Community Affairs;

[(B)] the Texas State Affordable Housing Corporation;

(B) [(C)] the Health and Human Services Commission;

(C) [(D)] the Department of Assistive and Rehabilitative Services;

(D) [(E)] the Department of Aging and Disability Services; and

(E) [(F)] the Department of State Health Services;

(3) one representative from the Department of Agriculture who is:

(A) knowledgeable about the Texans Feeding Texans and Retire in Texas programs or similar programs; and

(B) appointed by the head of that agency;

(4) one member who is:

(A) a member of the Health and Human Services Commission Promoting Independence Advisory Committee; and

(B) appointed by the governor; and

(5) one representative from each of the following interest groups, appointed by the governor:

(A) financial institutions;

(B) multifamily housing developers;

(C) health services entities;

(D) nonprofit organizations that advocate for affordable housing and consumer-directed long-term services and support;

(E) consumers of service-enriched housing;

(F) advocates for minority issues; and

(G) rural communities.

SECTION 67. Section 86.011, Health and Safety Code, is amended to read as follows:

Sec. 86.011. BREAST CANCER SCREENING. (a) In this section, "department" means the Department of State Health Services.

(b) The department [Texas Department of Rural Affairs] may provide for breast cancer screening in counties with a population of 50,000 or less.

(c) [(b)] The department [Texas Department of Rural Affairs] may provide the breast cancer screening through contracts with public or private entities to provide mobile units and on-site screening services.

[(c) The Texas Department of Rural Affairs shall coordinate the breast cancer screening with programs administered by the Texas Cancer Council.]

SECTION 68. Sections 775.083(a), (b), and (c), Health and Safety Code, are amended to read as follows:

(a) On or before January 1 of each year, a district shall file with the [Texas] Department of State Health Services [Rural Affairs] an annual report that includes the following:

(1) the district's name;

(2) the name of each county in which the district is located;

(3) the district's business address;

(4) the name, mailing address, and term of office of each commissioner;

(5) the name, mailing address, and term of office of the district's general manager, executive director, and fire chief;

(6) the name of each legal counsel or other consultant for the district; and

(7) the district's annual budget and tax rate for the preceding fiscal year.

(b) The [Texas] Department of State Health Services [Rural Affairs] may not charge a fee for filing the report.

(c) The [Texas] Department of State Health Services [Rural Affairs] shall develop and maintain an Internet-based system that enables:

(1) a district to securely file the report and update the district's information; and

(2) the public to view, in a searchable format, the reports filed by districts under this section.

SECTION 69. Sections 776.083(a), (b), and (c), Health and Safety Code, are amended to read as follows:

(a) On or before January 1 of each year, a district shall file with the [Texas] Department of State Health Services [Rural Affairs] an annual report that includes the following:

(1) the district's name;

(2) the name of each county in which the district is located;

(3) the district's business address;

(4) the name, mailing address, and term of office of each commissioner;

(5) the name, mailing address, and term of office of the district's general manager, executive director, and fire chief;

(6) the name of each legal counsel or other consultant for the district; and

(7) the district's annual budget and tax rate for the preceding fiscal year.

(b) The [Texas] Department of State Health Services [Rural Affairs] may not charge a fee for filing the report.

(c) The [Texas] Department of State Health Services [Rural Affairs] shall develop and maintain an Internet-based system that enables:

(1) a district to securely file the report and update the district's information; and

(2) the public to view, in a searchable format, the reports filed by districts under this section.

SECTION 70. Section 204.104, Occupations Code, is amended to read as follows:

Sec. 204.104. RURAL PHYSICIAN ASSISTANT LOAN REIMBURSEMENT PROGRAM. (a) In this section, "department" means the Department of State Health Services.

(b) A program shall be established to provide student loan reimbursement for graduates of physician assistant training programs from any state who practice in rural health professional shortage areas and medically underserved areas identified by the department [Texas Department of Health]. The physician assistant board shall fund the program by designating annually a portion of the revenue generated under this chapter from physician assistant licensing fees.

(c) [(b)] The department [Texas Department of Rural Affairs] shall establish policies for and adopt rules to administer the loan program.

(d) [(c)] The physician assistant board shall authorize and the medical board shall transfer annually the funds designated under Subsection (b) [(a)] to the department [Texas Department of Rural Affairs] to administer the loan program.

SECTION 71. The following provisions are repealed:

(1) Section 12.040(f), Agriculture Code;

(2) Subchapter A, Chapter 487, Government Code;

(3) Subchapter B, Chapter 487, Government Code;

(4) Section 487.052, Government Code;

(5) Section 487.055, Government Code; and

(6) Section 487.058, Government Code.

SECTION 72. (a) On September 1, 2011, or as soon as practicable after that date, the Texas Department of Rural Affairs, Texas Department of Housing and Community Affairs, Department of State Health Services, and Department of Agriculture shall enter into a memorandum of understanding that provides a comprehensive plan to ensure the orderly transition of all programs operated by the Texas Department of Rural Affairs to those agencies. The memorandum of understanding must provide for:

(1) the transfer of the community development block grant nonentitlement program to the Texas Department of Housing and Community Affairs;

(2) the transfer of the rural health programs to the Department of State Health Services; and

(3) the transfer of the renewable energy demonstration pilot program and the desalination program to the Department of Agriculture.

(b) This section takes effect September 1, 2011.

SECTION 73. (a) On the effective date of this Act, the Texas Department of Rural Affairs is abolished and all powers, duties, obligations, rights, contracts, bonds, appropriations, records, property, and personnel of those agencies are transferred to the Texas Department of Housing and Community Affairs, Department of State Health Services, and Department of Agriculture as provided for in the memorandum of understanding described by Section 72 of this Act.

(b) A rule, policy, procedure, or decision of the Texas Department of Rural Affairs continues in effect as a rule, policy, procedure, or decision of the Texas Department of Housing and Community Affairs, Department of State Health Services, or Department of Agriculture, as appropriate, until superseded by an act of that agency.

SECTION 74. Except as otherwise provided by this Act, this Act takes effect September 1, 2012.