H.B. No. 1493
AN ACT
relating to the transfer of programs from the Texas Department of
Rural Affairs to the Department of Agriculture.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 Agriculture [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 2. Section 487.001(3), Government Code, is amended
to read as follows:
(3) "Department" means the Department of Agriculture
[office].
SECTION 3. Section 487.026, Government Code, is amended to
read as follows:
Sec. 487.026. DIRECTOR. [(a)] The director serves as the
chief executive officer of the office and performs the
administrative duties of the office.
[(b) The director may hire staff within guidelines
established by the commissioner.]
SECTION 4. Section 487.051(a), Government Code, is amended
to read as follows:
(a) The office 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 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 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 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;
(9) ensure that the office 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 other offices and divisions
of the department [Department of Agriculture], regularly
cross-train office employees with other employees of the department
[Department of Agriculture] regarding the programs administered
and services provided to rural communities; and
(13) work with interested persons to assist volunteer
fire departments and emergency services districts in rural areas.
SECTION 5. Section 487.052, Government Code, is amended to
read as follows:
Sec. 487.052. RULES. The department [board] may adopt
rules as necessary to implement this chapter.
SECTION 6. Section 487.060(b), Government Code, is amended
to read as follows:
(b) To assist the secretary of state in preparing the report
required under Section 405.021, the department on an annual [a
quarterly] basis shall provide a report to the secretary of state
detailing any projects funded by the department that serve colonias
by providing water or wastewater services, paved roads, or other
assistance.
SECTION 7. Section 487.061, Government Code, is amended to
read as follows:
Sec. 487.061. EMERGENCY SERVICES DISTRICT PROGRAM. (a)
The department shall serve as a resource [establish a program] to
provide interested rural communities with:
(1) general information about emergency services
districts; and
(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].
(b) The department [program] may:
(1) [assist fire departments in rural areas with the
recruitment and retention of volunteer firefighters;
[(2)] provide to fire departments in rural areas
information relating to assistance programs offered to rural
volunteer firefighters, including the federal Staffing for
Adequate Fire and Emergency Response grant program to help fire
departments increase staffing and deployment capabilities; and
(2) [(3)] provide to rural homeowners information
relating to the benefits of volunteer fire departments, including a
reduction in homeowners insurance risk ratings, lower homeowners
insurance rates, and better fire protection.
SECTION 8. Sections 487.103(a), (b), and (c), Government
Code, are amended to read as follows:
(a) The selection committee shall advise the department
[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 9. 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 department [board] and adopted as a rule of
the department.
(d) The selection committee shall recommend to the
department [board] guidelines to be used by rural communities in
the selection of students for nomination and sponsorship as
outstanding rural scholars.
SECTION 10. 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 department [board] guidelines for
the awarding of forgivable loans to outstanding rural scholars.
(b) The department [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 department [board] shall award
forgivable loans on a priority basis according to the applicants'
academic performance, test scores, and other criteria of
eligibility.
SECTION 11. 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 department [board] that the department [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 12. Sections 487.109(b), (c), and (d), Government
Code, are amended to read as follows:
(b) The sponsoring community shall report to the department
[board] the length of time the scholar practices as a health care
professional in the community.
(c) If the department [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 department [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
department [board] rule.
SECTION 13. Section 487.112, Government Code, is amended to
read as follows:
Sec. 487.112. ADOPTION AND DISTRIBUTION OF RULES. (a) The
department [board] shall adopt reasonable rules to enforce the
requirements, conditions, and limitations under this subchapter.
(b) The department [board] shall set the rate of interest
charged on a forgivable loan under this subchapter.
(c) The department [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 14. Section 487.152(a), Government Code, is amended
to read as follows:
(a) Subject to available funding, the [The] department
shall administer or contract for the administration of the program.
SECTION 15. Section 487.154, Government Code, is amended to
read as follows:
Sec. 487.154. LOANS. (a) The department [board] may award
forgivable educational loans to eligible students under this
subchapter.
(b) The department [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 department [board] may award forgivable
loans on a priority basis according to the students' academic
performance, test scores, and other criteria of eligibility.
SECTION 16. 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
department [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
department [board].
SECTION 17. Section 487.156(c), Government Code, is amended
to read as follows:
(c) The department [board] shall determine the percentage
of educational expenses communities are required to provide under
this section.
SECTION 18. 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 department [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 19. 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
department [board]; and
(3) the state's reasonable expenses incurred in
obtaining payment, including reasonable attorney's fees.
SECTION 20. Section 487.159(b), Government Code, is amended
to read as follows:
(b) If the department [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 department [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 21. Sections 487.161(b) and (c), Government Code,
are amended to read as follows:
(b) The sponsoring community shall report to the office
[board] the length of time the student provides health care
services in the community in accordance with the guidelines
established by the department [board].
(c) A postsecondary educational institution shall provide
to the office [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 22. Section 487.163, Government Code, is amended to
read as follows:
Sec. 487.163. ADOPTION OF RULES. (a) The department
[board] shall adopt reasonable rules to enforce the requirements,
conditions, and limitations of this subchapter.
(b) The department [board] shall set the rate of interest
charged on a forgivable loan under this subchapter.
(c) The department [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 23. Sections 487.202(a), (d), and (e), Government
Code, are amended to read as follows:
(a) The department [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 office [board] makes a
specific finding of need by the community.
(e) The office [board] shall establish priorities so that
the neediest communities eligible for assistance under this
subchapter are assured the receipt of a grant.
SECTION 24. Sections 487.203 and 487.204, Government Code,
are 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 office
[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.
Sec. 487.204. RULES. The department [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 25. Section 487.252, Government Code, is amended to
read as follows:
Sec. 487.252. TEXAS HEALTH SERVICE CORPS PROGRAM. (a)
Subject to available funding, the department [The board] shall
establish a program [in the department] to assist communities in
recruiting and retaining physicians to practice in medically
underserved areas.
(b) The department [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 26. Section 487.253(a), Government Code, is amended
to read as follows:
(a) The department [board] shall adopt rules necessary to
administer this subchapter, and the department shall administer the
program in accordance with those rules.
SECTION 27. Section 487.351(c), Government Code, is amended
to read as follows:
(c) The department shall give priority to eligible
activities in the areas of economic development, community
development, and rural health[, and rural housing] to support
workforce development in awarding funding for community
development block grant programs.
SECTION 28. Section 487.401, Government Code, is amended to
read as follows:
Sec. 487.401. ADMINISTRATION. (a) The department [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.
(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 department's [board's]
rules.
SECTION 29. Sections 487.451(1) and (3), Government Code,
are amended to read as follows:
(1) "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 department [board].
(3) "Underserved urban area" means an urban area of
this state with a medically underserved population, as determined
in accordance with criteria adopted by the department [board] by
rule, considering relevant demographic, geographic, and
environmental factors.
SECTION 30. Section 487.452(a), Government Code, is amended
to read as follows:
(a) Subject to available funding, the department [The
board], in collaboration with Area Health Education Center
Programs, shall establish a community 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 31. Section 487.454, Government Code, is amended to
read as follows:
Sec. 487.454. GRANTS; ELIGIBILITY. (a) Subject to
available funding, the department [funds, the 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 department
[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
department [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 department [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 32. Section 487.503(a), Government Code, is amended
to read as follows:
(a) Subject to available funding, the [The] department
shall establish a process in consultation with the Texas Higher
Education Coordinating Board for selecting Texas medical schools to
recruit students from rural communities and encourage them to
return to rural communities to practice medicine.
SECTION 33. Section 487.553, Government Code, is amended to
read as follows:
Sec. 487.553. LOAN REIMBURSEMENT PROGRAM. Subject to
available funding, the department [The 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 34. Sections 487.554(a) and (b), Government Code,
are amended to read as follows:
(a) Subject to available funding, the department [The
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.
(b) A stipend awarded under this section may [shall] be paid
in periodic installments.
SECTION 35. 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 department [board];
(3) the state's reasonable expenses incurred in
obtaining payment, including reasonable attorney's fees; and
(4) a penalty as established by the department [board]
by rule to help ensure compliance with the contract.
SECTION 36. Section 487.556, Government Code, is amended to
read as follows:
Sec. 487.556. POWERS AND DUTIES OF DEPARTMENT. (a) The
department [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 department [board] by rule may designate areas of
the state as medically underserved communities.
(c) The department [board] shall make reasonable efforts to
contract with health professionals from a variety of different
health professions.
SECTION 37. Section 487.602, Government Code, is amended to
read as follows:
Sec. 487.602. RURAL PHYSICIAN RELIEF PROGRAM. Subject to
available funding, the [The] department shall create a program to
provide affordable relief services to rural physicians practicing
in the fields of general family medicine, general internal
medicine, and general pediatrics to facilitate the ability of those
physicians to take time away from their practice.
SECTION 38. Section 487.652(a), Government Code, is amended
to read as follows:
(a) Subject to available funding, the [The] community
telecommunications alliance program shall:
(1) assist local communities in the creation and
development of community telecommunications alliances, including
alliances established to pursue rural economic development or
innovative rural school health technology projects, by providing
advice and assistance in assessing local uses of and local demands
or needs for local telecommunications and information services of
private sector providers; and
(2) assist community telecommunications alliances in
applying for grant funding for projects, including:
(A) assisting alliances in securing matching
private sector funding for projects; and
(B) requiring alliances to develop sustainable
plans:
(i) that demonstrate how the alliance will
continue to obtain private sector services once the grant funding
terminates;
(ii) that do not directly compete with
local businesses, telecommunications providers, or information
services providers; and
(iii) that prohibit a network created with
assistance from the alliance or other public funding from being
sold to a direct competitor of a private sector provider.
SECTION 39. Section 487.701(a), Government Code, is amended
to read as follows:
(a) The department shall establish the Texas Rural
Foundation as a nonprofit corporation that complies with Chapter
22, Business Organizations Code [the Texas Non-Profit Corporation
Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes)],
except as otherwise provided by this chapter, and qualifies as an
organization exempt from federal income tax under Section
501(c)(3), Internal Revenue Code of 1986, as amended.
SECTION 40. Section 487.703(a), Government Code, is amended
to read as follows:
(a) The Texas Rural Foundation is governed by a board of an
odd number of at least nine and not more than 15 directors appointed
by the commissioner [board of the department].
SECTION 41. Section 487.705(c), Government Code, is amended
to read as follows:
(c) If the [executive] director of the department has
knowledge that a potential ground for removal exists, the
[executive] director shall notify the presiding officer of the
board of directors of the Texas Rural Foundation of the potential
ground. The presiding officer shall then notify the governor and
the attorney general that a potential ground for removal
exists. If the potential ground for removal involves the presiding
officer, the [executive] director of the department shall notify
the next highest ranking officer of the board of directors, who
shall then notify the governor and the attorney general that a
potential ground for removal exists.
SECTION 42. Section 487.710, Government Code, is amended to
read as follows:
Sec. 487.710. MEMORANDUM OF UNDERSTANDING. The Texas Rural
Foundation and the department shall enter into a memorandum of
understanding that:
(1) requires the board of directors and staff of the
foundation to report to the [executive] director of the department
and the commissioner [board of the department];
(2) allows the department to provide staff functions
to the foundation;
(3) allows the department to expend funds on the
foundation; and
(4) outlines the financial contributions to be made to
the foundation from funds obtained from grants and other sources.
SECTION 43. Section 487.752(b), Government Code, is amended
to read as follows:
(b) The department [executive committee] by rule shall
establish:
(1) eligibility criteria for grant applicants;
(2) grant application procedures;
(3) guidelines relating to grant amounts;
(4) procedures for evaluating grant applications; and
(5) procedures for monitoring the use of grants
awarded under the program and for ensuring compliance with the
conditions of a grant.
SECTION 44. The following provisions of the Government Code
are repealed:
(1) Section 487.001(1);
(2) Section 487.027;
(3) Section 487.030;
(4) Section 487.031;
(5) Section 487.032;
(6) Section 487.053;
(7) Section 487.054;
(8) Section 487.0541;
(9) Section 487.056;
(10) Section 487.057;
(11) Section 487.059;
(12) Section 487.552;
(13) Section 487.608; and
(14) Section 487.653.
SECTION 45. On the effective date of this Act, the following
are abolished:
(1) the interagency work group under Section 487.0541,
Government Code;
(2) the advisory panel under Section 487.552,
Government Code; and
(3) the rural physician relief advisory committee
under Section 487.608, Government Code.
SECTION 46. This Act takes effect September 1, 2013.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1493 was passed by the House on April
3, 2013, by the following vote: Yeas 147, Nays 0, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1493 was passed by the Senate on May
9, 2013, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor