Texas 2013 - 83rd Regular

Texas House Bill HB1493 Compare Versions

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11 By: King of Zavala (Senate Sponsor - Hegar) H.B. No. 1493
22 (In the Senate - Received from the House April 4, 2013;
33 April 9, 2013, read first time and referred to Committee on
44 Agriculture, Rural Affairs, and Homeland Security; May 2, 2013,
55 reported favorably by the following vote: Yeas 5, Nays 0;
66 May 2, 2013, sent to printer.)
77
88
99 A BILL TO BE ENTITLED
1010 AN ACT
1111 relating to the transfer of programs from the Texas Department of
1212 Rural Affairs to the Department of Agriculture.
1313 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1414 SECTION 1. Section 61.0899, Education Code, is amended to
1515 read as follows:
1616 Sec. 61.0899. ASSISTANCE IN CERTAIN RURAL HEALTH CARE LOAN
1717 REIMBURSEMENT AND STIPEND PROGRAMS. The board shall, in
1818 cooperation with the [Texas] Department of Agriculture [Rural
1919 Affairs and the department's advisory panel established under
2020 Section 487.552, Government Code], ensure that the board seeks to
2121 obtain the maximum amount of funds from any source, including
2222 federal funds, to support programs to provide student loan
2323 reimbursement or stipends for graduates of degree programs in this
2424 state who practice or agree to practice in a medically underserved
2525 community.
2626 SECTION 2. Section 487.001(3), Government Code, is amended
2727 to read as follows:
2828 (3) "Department" means the Department of Agriculture
2929 [office].
3030 SECTION 3. Section 487.026, Government Code, is amended to
3131 read as follows:
3232 Sec. 487.026. DIRECTOR. [(a)] The director serves as the
3333 chief executive officer of the office and performs the
3434 administrative duties of the office.
3535 [(b) The director may hire staff within guidelines
3636 established by the commissioner.]
3737 SECTION 4. Section 487.051(a), Government Code, is amended
3838 to read as follows:
3939 (a) The office shall:
4040 (1) assist rural communities in the key areas of
4141 economic development, community development, rural health, and
4242 rural housing;
4343 (2) serve as a clearinghouse for information and
4444 resources on all state and federal programs affecting rural
4545 communities;
4646 (3) in consultation with rural community leaders,
4747 locally elected officials, state elected and appointed officials,
4848 academic and industry experts, and the interagency work group
4949 created under this chapter, identify and prioritize policy issues
5050 and concerns affecting rural communities in the state;
5151 (4) make recommendations to the legislature to address
5252 the concerns affecting rural communities identified under
5353 Subdivision (3);
5454 (5) monitor developments that have a substantial
5555 effect on rural Texas communities, especially actions of state
5656 government[, and compile an annual report describing and evaluating
5757 the condition of rural communities];
5858 (6) administer the federal community development
5959 block grant nonentitlement program;
6060 (7) administer programs supporting rural health care
6161 as provided by this chapter;
6262 (8) perform research to determine the most beneficial
6363 and cost-effective ways to improve the welfare of rural
6464 communities;
6565 (9) ensure that the office qualifies as the state's
6666 office of rural health for the purpose of receiving grants from the
6767 Office of Rural Health Policy of the United States Department of
6868 Health and Human Services under 42 U.S.C. Section 254r;
6969 (10) manage the state's Medicare rural hospital
7070 flexibility program under 42 U.S.C. Section 1395i-4;
7171 (11) seek state and federal money available for
7272 economic development in rural areas for programs under this
7373 chapter;
7474 (12) in conjunction with other offices and divisions
7575 of the department [Department of Agriculture], regularly
7676 cross-train office employees with other employees of the department
7777 [Department of Agriculture] regarding the programs administered
7878 and services provided to rural communities; and
7979 (13) work with interested persons to assist volunteer
8080 fire departments and emergency services districts in rural areas.
8181 SECTION 5. Section 487.052, Government Code, is amended to
8282 read as follows:
8383 Sec. 487.052. RULES. The department [board] may adopt
8484 rules as necessary to implement this chapter.
8585 SECTION 6. Section 487.060(b), Government Code, is amended
8686 to read as follows:
8787 (b) To assist the secretary of state in preparing the report
8888 required under Section 405.021, the department on an annual [a
8989 quarterly] basis shall provide a report to the secretary of state
9090 detailing any projects funded by the department that serve colonias
9191 by providing water or wastewater services, paved roads, or other
9292 assistance.
9393 SECTION 7. Section 487.061, Government Code, is amended to
9494 read as follows:
9595 Sec. 487.061. EMERGENCY SERVICES DISTRICT PROGRAM. (a)
9696 The department shall serve as a resource [establish a program] to
9797 provide interested rural communities with:
9898 (1) general information about emergency services
9999 districts; and
100100 (2) information and training related to the
101101 establishment of an emergency services district[; and
102102 [(3) technical assistance related to the
103103 implementation of an emergency services district].
104104 (b) The department [program] may:
105105 (1) [assist fire departments in rural areas with the
106106 recruitment and retention of volunteer firefighters;
107107 [(2)] provide to fire departments in rural areas
108108 information relating to assistance programs offered to rural
109109 volunteer firefighters, including the federal Staffing for
110110 Adequate Fire and Emergency Response grant program to help fire
111111 departments increase staffing and deployment capabilities; and
112112 (2) [(3)] provide to rural homeowners information
113113 relating to the benefits of volunteer fire departments, including a
114114 reduction in homeowners insurance risk ratings, lower homeowners
115115 insurance rates, and better fire protection.
116116 SECTION 8. Sections 487.103(a), (b), and (c), Government
117117 Code, are amended to read as follows:
118118 (a) The selection committee shall advise the department
119119 [board] on the progress of the program.
120120 (b) The selection committee is composed of 12 members
121121 appointed by the commissioner [board].
122122 (c) The commissioner [board] shall consider geographical
123123 representation in making appointments to the selection committee.
124124 SECTION 9. Sections 487.104(b) and (d), Government Code,
125125 are amended to read as follows:
126126 (b) The selection committee shall make selections based on
127127 criteria approved by the department [board] and adopted as a rule of
128128 the department.
129129 (d) The selection committee shall recommend to the
130130 department [board] guidelines to be used by rural communities in
131131 the selection of students for nomination and sponsorship as
132132 outstanding rural scholars.
133133 SECTION 10. Section 487.107, Government Code, is amended to
134134 read as follows:
135135 Sec. 487.107. AWARDING OF LOANS. (a) The selection
136136 committee shall recommend to the department [board] guidelines for
137137 the awarding of forgivable loans to outstanding rural scholars.
138138 (b) The department [board], acting on the advice of the
139139 selection committee, shall award forgivable loans to outstanding
140140 rural scholars based on the availability of money in the fund.
141141 (c) If in any year the fund is inadequate to provide loans to
142142 all eligible applicants, the department [board] shall award
143143 forgivable loans on a priority basis according to the applicants'
144144 academic performance, test scores, and other criteria of
145145 eligibility.
146146 SECTION 11. Section 487.108(a), Government Code, is amended
147147 to read as follows:
148148 (a) On confirmation of an outstanding rural scholar's
149149 admission to a postsecondary educational institution, or on receipt
150150 of an enrollment report of the scholar at a postsecondary
151151 educational institution, and a certification of the amount of
152152 financial support needed, the selection committee annually shall
153153 recommend to the department [board] that the department [board]
154154 award a forgivable loan to the scholar in the amount of 50 percent
155155 of the cost of the scholar's tuition, fees, educational materials,
156156 and living expenses.
157157 SECTION 12. Sections 487.109(b), (c), and (d), Government
158158 Code, are amended to read as follows:
159159 (b) The sponsoring community shall report to the department
160160 [board] the length of time the scholar practices as a health care
161161 professional in the community.
162162 (c) If the department [board] finds that a sponsoring
163163 community is not in need of the scholar's services and that the
164164 community is willing to forgive repayment of the principal balance
165165 and interest of the scholar's loan, the department [board] by rule
166166 may provide for the principal balance and interest of one year of
167167 the scholar's loan to be forgiven for each year the scholar
168168 practices in another rural community in this state.
169169 (d) Any amount of loan principal or interest that is not
170170 forgiven under this section shall be repaid to the department with
171171 reasonable collection fees in a timely manner as provided by
172172 department [board] rule.
173173 SECTION 13. Section 487.112, Government Code, is amended to
174174 read as follows:
175175 Sec. 487.112. ADOPTION AND DISTRIBUTION OF RULES. (a) The
176176 department [board] shall adopt reasonable rules to enforce the
177177 requirements, conditions, and limitations under this subchapter.
178178 (b) The department [board] shall set the rate of interest
179179 charged on a forgivable loan under this subchapter.
180180 (c) The department [board] shall adopt rules necessary to
181181 ensure compliance with the federal Civil Rights Act of 1964 (42
182182 U.S.C. Section 2000a et seq.) concerning nondiscrimination in
183183 admissions.
184184 SECTION 14. Section 487.152(a), Government Code, is amended
185185 to read as follows:
186186 (a) Subject to available funding, the [The] department
187187 shall administer or contract for the administration of the program.
188188 SECTION 15. Section 487.154, Government Code, is amended to
189189 read as follows:
190190 Sec. 487.154. LOANS. (a) The department [board] may award
191191 forgivable educational loans to eligible students under this
192192 subchapter.
193193 (b) The department [board] may award forgivable loans to
194194 eligible students based on the availability of money in the fund.
195195 (c) If in any year the fund is inadequate to provide loans to
196196 all eligible students, the department [board] may award forgivable
197197 loans on a priority basis according to the students' academic
198198 performance, test scores, and other criteria of eligibility.
199199 SECTION 16. Section 487.155(a), Government Code, is amended
200200 to read as follows:
201201 (a) To be eligible to receive a loan under this subchapter,
202202 a student must:
203203 (1) be sponsored by an eligible community;
204204 (2) at the time of the application for the loan, be
205205 enrolled in high school or enrolled or accepted for enrollment in a
206206 postsecondary educational institution in this state;
207207 (3) meet academic requirements as established by the
208208 department [board];
209209 (4) plan to complete a health care professional degree
210210 or certificate program;
211211 (5) plan to practice as a health care professional in a
212212 qualified area of the state; and
213213 (6) meet other requirements as established by the
214214 department [board].
215215 SECTION 17. Section 487.156(c), Government Code, is amended
216216 to read as follows:
217217 (c) The department [board] shall determine the percentage
218218 of educational expenses communities are required to provide under
219219 this section.
220220 SECTION 18. Section 487.157(a), Government Code, is amended
221221 to read as follows:
222222 (a) On confirmation of an eligible student's admission to a
223223 postsecondary educational institution, or on receipt of an
224224 enrollment report of the student at a postsecondary educational
225225 institution, and certification of the amount of financial support
226226 needed, the department [board] may award a forgivable loan to the
227227 student in the amount of not more than the cost of the student's
228228 tuition, fees, educational materials, and living expenses.
229229 SECTION 19. Section 487.158(b), Government Code, is amended
230230 to read as follows:
231231 (b) The contract must provide that if the student does not
232232 provide the required services to the community or provides those
233233 services for less than the required time, the student is personally
234234 liable to the state for:
235235 (1) the total amount of assistance the student
236236 receives from the department and the sponsoring community;
237237 (2) interest on the total amount at a rate set by the
238238 department [board]; and
239239 (3) the state's reasonable expenses incurred in
240240 obtaining payment, including reasonable attorney's fees.
241241 SECTION 20. Section 487.159(b), Government Code, is amended
242242 to read as follows:
243243 (b) If the department [board] finds that a sponsoring
244244 community is not in need of the student's services and that the
245245 community is willing to forgive repayment of the principal balance
246246 and interest of the student's loan, the department [board] by rule
247247 may provide for the principal balance and interest of the student's
248248 loan to be forgiven if the student provides services in another
249249 qualified area in this state.
250250 SECTION 21. Sections 487.161(b) and (c), Government Code,
251251 are amended to read as follows:
252252 (b) The sponsoring community shall report to the office
253253 [board] the length of time the student provides health care
254254 services in the community in accordance with the guidelines
255255 established by the department [board].
256256 (c) A postsecondary educational institution shall provide
257257 to the office [board] a copy of the academic transcript of each
258258 student for whom the institution has received a release that
259259 complies with state and federal open records laws and that
260260 authorizes the provision of the transcript.
261261 SECTION 22. Section 487.163, Government Code, is amended to
262262 read as follows:
263263 Sec. 487.163. ADOPTION OF RULES. (a) The department
264264 [board] shall adopt reasonable rules to enforce the requirements,
265265 conditions, and limitations of this subchapter.
266266 (b) The department [board] shall set the rate of interest
267267 charged on a forgivable loan under this subchapter.
268268 (c) The department [board] shall adopt rules necessary to
269269 ensure compliance with the federal Civil Rights Act of 1964 (42
270270 U.S.C. Section 2000a et seq.) concerning nondiscrimination in
271271 admissions.
272272 SECTION 23. Sections 487.202(a), (d), and (e), Government
273273 Code, are amended to read as follows:
274274 (a) The department [board] shall establish and administer a
275275 program under this subchapter to increase the number of physicians
276276 providing primary care in medically underserved communities.
277277 (d) The department may not pay more than $25,000 to a
278278 community in a fiscal year unless the office [board] makes a
279279 specific finding of need by the community.
280280 (e) The office [board] shall establish priorities so that
281281 the neediest communities eligible for assistance under this
282282 subchapter are assured the receipt of a grant.
283283 SECTION 24. Sections 487.203 and 487.204, Government Code,
284284 are amended to read as follows:
285285 Sec. 487.203. ELIGIBILITY. To be eligible to receive money
286286 from the department, a medically underserved community must:
287287 (1) apply for the money; and
288288 (2) provide evidence satisfactory to the office
289289 [board] that it has entered into an agreement with a physician for
290290 the physician to provide primary care in the community for at least
291291 two years.
292292 Sec. 487.204. RULES. The department [board] shall adopt
293293 rules necessary for the administration of this subchapter,
294294 including rules addressing:
295295 (1) eligibility criteria for a medically underserved
296296 community;
297297 (2) eligibility criteria for a physician;
298298 (3) minimum and maximum community contributions to the
299299 start-up money for a physician to be matched with state money;
300300 (4) conditions under which state money must be repaid
301301 by a community or physician;
302302 (5) procedures for disbursement of money by the
303303 department;
304304 (6) the form and manner in which a community must make
305305 its contribution to the start-up money; and
306306 (7) the contents of an agreement to be entered into by
307307 the parties, which must include at least:
308308 (A) a credit check for an eligible physician; and
309309 (B) community retention of interest in any
310310 property, equipment, or durable goods for seven years.
311311 SECTION 25. Section 487.252, Government Code, is amended to
312312 read as follows:
313313 Sec. 487.252. TEXAS HEALTH SERVICE CORPS PROGRAM. (a)
314314 Subject to available funding, the department [The board] shall
315315 establish a program [in the department] to assist communities in
316316 recruiting and retaining physicians to practice in medically
317317 underserved areas.
318318 (b) The department [board] by rule shall establish:
319319 (1) eligibility criteria for applicants;
320320 (2) stipend application procedures;
321321 (3) guidelines relating to stipend amounts;
322322 (4) procedures for evaluating stipend applications;
323323 and
324324 (5) a system of priorities relating to the:
325325 (A) geographic areas covered;
326326 (B) medical specialties eligible to receive
327327 funding under the program; and
328328 (C) level of stipend support.
329329 SECTION 26. Section 487.253(a), Government Code, is amended
330330 to read as follows:
331331 (a) The department [board] shall adopt rules necessary to
332332 administer this subchapter, and the department shall administer the
333333 program in accordance with those rules.
334334 SECTION 27. Section 487.351(c), Government Code, is amended
335335 to read as follows:
336336 (c) The department shall give priority to eligible
337337 activities in the areas of economic development, community
338338 development, and rural health[, and rural housing] to support
339339 workforce development in awarding funding for community
340340 development block grant programs.
341341 SECTION 28. Section 487.401, Government Code, is amended to
342342 read as follows:
343343 Sec. 487.401. ADMINISTRATION. (a) The department [board]
344344 shall adopt rules that establish a procedure for designating a
345345 hospital as a rural hospital in order for the hospital to qualify
346346 for federal funds under 42 C.F.R. Part 412.
347347 (b) At the hospital's request, the department shall
348348 designate the hospital as a rural hospital if the hospital meets the
349349 requirements for a rural hospital under the department's [board's]
350350 rules.
351351 SECTION 29. Sections 487.451(1) and (3), Government Code,
352352 are amended to read as follows:
353353 (1) "Health care professional" means:
354354 (A) an advanced nurse practitioner;
355355 (B) a dentist;
356356 (C) a dental hygienist;
357357 (D) a laboratory technician;
358358 (E) a licensed vocational nurse;
359359 (F) a licensed professional counselor;
360360 (G) a medical radiological technologist;
361361 (H) an occupational therapist;
362362 (I) a pharmacist;
363363 (J) a physical therapist;
364364 (K) a physician;
365365 (L) a physician assistant;
366366 (M) a psychologist;
367367 (N) a registered nurse;
368368 (O) a social worker;
369369 (P) a speech-language pathologist;
370370 (Q) a veterinarian;
371371 (R) a chiropractor; and
372372 (S) another appropriate health care professional
373373 identified by the department [board].
374374 (3) "Underserved urban area" means an urban area of
375375 this state with a medically underserved population, as determined
376376 in accordance with criteria adopted by the department [board] by
377377 rule, considering relevant demographic, geographic, and
378378 environmental factors.
379379 SECTION 30. Section 487.452(a), Government Code, is amended
380380 to read as follows:
381381 (a) Subject to available funding, the department [The
382382 board], in collaboration with Area Health Education Center
383383 Programs, shall establish a community healthcare awareness and
384384 mentoring program for students to:
385385 (1) identify high school students in rural and
386386 underserved urban areas who are interested in serving those areas
387387 as health care professionals;
388388 (2) identify health care professionals in rural and
389389 underserved urban areas to act as positive role models, mentors, or
390390 reference resources for the interested high school students;
391391 (3) introduce interested high school students to the
392392 spectrum of professional health care careers through activities
393393 such as health care camps and shadowing of health care
394394 professionals;
395395 (4) encourage a continued interest in service as
396396 health care professionals in rural and underserved urban areas by
397397 providing mentors and community resources for students
398398 participating in training or educational programs to become health
399399 care professionals; and
400400 (5) provide continuing community-based support for
401401 students during the period the students are attending training or
402402 educational programs to become health care professionals,
403403 including summer job opportunities and opportunities to mentor high
404404 school students in the community.
405405 SECTION 31. Section 487.454, Government Code, is amended to
406406 read as follows:
407407 Sec. 487.454. GRANTS; ELIGIBILITY. (a) Subject to
408408 available funding, the department [funds, the board] shall develop
409409 and implement, as a component of the program, a grant program to
410410 support employment opportunities in rural and underserved urban
411411 areas in this state for students participating in training or
412412 educational programs to become health care professionals.
413413 (b) In awarding grants under the program, the department
414414 [board] shall give first priority to grants to training or
415415 educational programs that provide internships to students.
416416 (c) To be eligible to receive a grant under the grant
417417 program, a person must:
418418 (1) apply for the grant on a form adopted by the
419419 department [board];
420420 (2) be enrolled or intend to be enrolled in a training
421421 or educational program to become a health care professional;
422422 (3) commit to practice or work, after licensure as a
423423 health care professional, for at least one year as a health care
424424 professional in a rural or underserved urban area in this state; and
425425 (4) comply fully with any practice or requirements
426426 associated with any scholarship, loan, or other similar benefit
427427 received by the student.
428428 (d) As a condition of receiving a grant under the program
429429 the student must agree to repay the amount of the grant, plus a
430430 penalty in an amount established by rule of the department [board]
431431 not to exceed two times the amount of the grant, if the student
432432 becomes licensed as a health care professional and fails to
433433 practice or work for at least one year as a health care professional
434434 in a rural or underserved urban area in this state.
435435 SECTION 32. Section 487.503(a), Government Code, is amended
436436 to read as follows:
437437 (a) Subject to available funding, the [The] department
438438 shall establish a process in consultation with the Texas Higher
439439 Education Coordinating Board for selecting Texas medical schools to
440440 recruit students from rural communities and encourage them to
441441 return to rural communities to practice medicine.
442442 SECTION 33. Section 487.553, Government Code, is amended to
443443 read as follows:
444444 Sec. 487.553. LOAN REIMBURSEMENT PROGRAM. Subject to
445445 available funding, the department [The board] shall establish a
446446 program [in the department] to assist communities in recruiting
447447 health professionals to practice in medically underserved
448448 communities by providing loan reimbursement for health
449449 professionals who serve in those communities.
450450 SECTION 34. Sections 487.554(a) and (b), Government Code,
451451 are amended to read as follows:
452452 (a) Subject to available funding, the department [The
453453 board] shall establish a program [in the department] to assist
454454 communities in recruiting health professionals to practice in
455455 medically underserved communities by providing a stipend to health
456456 professionals who agree to serve in those communities.
457457 (b) A stipend awarded under this section may [shall] be paid
458458 in periodic installments.
459459 SECTION 35. Section 487.555(e), Government Code, is amended
460460 to read as follows:
461461 (e) A contract under this section must provide that a health
462462 professional who does not provide the required services to the
463463 community or provides those services for less than the required
464464 time is personally liable to the state for:
465465 (1) the total amount of assistance the health
466466 professional received from the department and the medically
467467 underserved community;
468468 (2) interest on the amount under Subdivision (1) at a
469469 rate set by the department [board];
470470 (3) the state's reasonable expenses incurred in
471471 obtaining payment, including reasonable attorney's fees; and
472472 (4) a penalty as established by the department [board]
473473 by rule to help ensure compliance with the contract.
474474 SECTION 36. Section 487.556, Government Code, is amended to
475475 read as follows:
476476 Sec. 487.556. POWERS AND DUTIES OF DEPARTMENT. (a) The
477477 department [board] shall adopt rules necessary for the
478478 administration of this subchapter, including guidelines for:
479479 (1) developing contracts under which loan
480480 reimbursement or stipend recipients provide services to qualifying
481481 communities;
482482 (2) identifying the duties of the state, state agency,
483483 loan reimbursement or stipend recipient, and medically underserved
484484 community under the loan reimbursement or stipend contract;
485485 (3) determining a rate of interest to be charged under
486486 Section 487.555(e)(2);
487487 (4) ensuring that a loan reimbursement or stipend
488488 recipient provides access to health services to participants in
489489 government-funded health benefits programs in qualifying
490490 communities;
491491 (5) encouraging the use of telecommunications or
492492 telemedicine, as appropriate;
493493 (6) prioritizing the provision of loan reimbursements
494494 and stipends to health professionals who are not eligible for any
495495 other state loan forgiveness, loan repayment, or stipend program;
496496 (7) prioritizing the provision of loan reimbursements
497497 and stipends to health professionals who are graduates of health
498498 professional degree programs in this state;
499499 (8) encouraging a medically underserved community
500500 served by a loan reimbursement or stipend recipient to contribute
501501 to the cost of the loan reimbursement or stipend when making a
502502 contribution is feasible; and
503503 (9) requiring a medically underserved community
504504 served by a loan reimbursement or stipend recipient to assist the
505505 department in contracting with the loan reimbursement or stipend
506506 recipient who will serve that community.
507507 (b) The department [board] by rule may designate areas of
508508 the state as medically underserved communities.
509509 (c) The department [board] shall make reasonable efforts to
510510 contract with health professionals from a variety of different
511511 health professions.
512512 SECTION 37. Section 487.602, Government Code, is amended to
513513 read as follows:
514514 Sec. 487.602. RURAL PHYSICIAN RELIEF PROGRAM. Subject to
515515 available funding, the [The] department shall create a program to
516516 provide affordable relief services to rural physicians practicing
517517 in the fields of general family medicine, general internal
518518 medicine, and general pediatrics to facilitate the ability of those
519519 physicians to take time away from their practice.
520520 SECTION 38. Section 487.652(a), Government Code, is amended
521521 to read as follows:
522522 (a) Subject to available funding, the [The] community
523523 telecommunications alliance program shall:
524524 (1) assist local communities in the creation and
525525 development of community telecommunications alliances, including
526526 alliances established to pursue rural economic development or
527527 innovative rural school health technology projects, by providing
528528 advice and assistance in assessing local uses of and local demands
529529 or needs for local telecommunications and information services of
530530 private sector providers; and
531531 (2) assist community telecommunications alliances in
532532 applying for grant funding for projects, including:
533533 (A) assisting alliances in securing matching
534534 private sector funding for projects; and
535535 (B) requiring alliances to develop sustainable
536536 plans:
537537 (i) that demonstrate how the alliance will
538538 continue to obtain private sector services once the grant funding
539539 terminates;
540540 (ii) that do not directly compete with
541541 local businesses, telecommunications providers, or information
542542 services providers; and
543543 (iii) that prohibit a network created with
544544 assistance from the alliance or other public funding from being
545545 sold to a direct competitor of a private sector provider.
546546 SECTION 39. Section 487.701(a), Government Code, is amended
547547 to read as follows:
548548 (a) The department shall establish the Texas Rural
549549 Foundation as a nonprofit corporation that complies with Chapter
550550 22, Business Organizations Code [the Texas Non-Profit Corporation
551551 Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes)],
552552 except as otherwise provided by this chapter, and qualifies as an
553553 organization exempt from federal income tax under Section
554554 501(c)(3), Internal Revenue Code of 1986, as amended.
555555 SECTION 40. Section 487.703(a), Government Code, is amended
556556 to read as follows:
557557 (a) The Texas Rural Foundation is governed by a board of an
558558 odd number of at least nine and not more than 15 directors appointed
559559 by the commissioner [board of the department].
560560 SECTION 41. Section 487.705(c), Government Code, is amended
561561 to read as follows:
562562 (c) If the [executive] director of the department has
563563 knowledge that a potential ground for removal exists, the
564564 [executive] director shall notify the presiding officer of the
565565 board of directors of the Texas Rural Foundation of the potential
566566 ground. The presiding officer shall then notify the governor and
567567 the attorney general that a potential ground for removal
568568 exists. If the potential ground for removal involves the presiding
569569 officer, the [executive] director of the department shall notify
570570 the next highest ranking officer of the board of directors, who
571571 shall then notify the governor and the attorney general that a
572572 potential ground for removal exists.
573573 SECTION 42. Section 487.710, Government Code, is amended to
574574 read as follows:
575575 Sec. 487.710. MEMORANDUM OF UNDERSTANDING. The Texas Rural
576576 Foundation and the department shall enter into a memorandum of
577577 understanding that:
578578 (1) requires the board of directors and staff of the
579579 foundation to report to the [executive] director of the department
580580 and the commissioner [board of the department];
581581 (2) allows the department to provide staff functions
582582 to the foundation;
583583 (3) allows the department to expend funds on the
584584 foundation; and
585585 (4) outlines the financial contributions to be made to
586586 the foundation from funds obtained from grants and other sources.
587587 SECTION 43. Section 487.752(b), Government Code, is amended
588588 to read as follows:
589589 (b) The department [executive committee] by rule shall
590590 establish:
591591 (1) eligibility criteria for grant applicants;
592592 (2) grant application procedures;
593593 (3) guidelines relating to grant amounts;
594594 (4) procedures for evaluating grant applications; and
595595 (5) procedures for monitoring the use of grants
596596 awarded under the program and for ensuring compliance with the
597597 conditions of a grant.
598598 SECTION 44. The following provisions of the Government Code
599599 are repealed:
600600 (1) Section 487.001(1);
601601 (2) Section 487.027;
602602 (3) Section 487.030;
603603 (4) Section 487.031;
604604 (5) Section 487.032;
605605 (6) Section 487.053;
606606 (7) Section 487.054;
607607 (8) Section 487.0541;
608608 (9) Section 487.056;
609609 (10) Section 487.057;
610610 (11) Section 487.059;
611611 (12) Section 487.552;
612612 (13) Section 487.608; and
613613 (14) Section 487.653.
614614 SECTION 45. On the effective date of this Act, the following
615615 are abolished:
616616 (1) the interagency work group under Section 487.0541,
617617 Government Code;
618618 (2) the advisory panel under Section 487.552,
619619 Government Code; and
620620 (3) the rural physician relief advisory committee
621621 under Section 487.608, Government Code.
622622 SECTION 46. This Act takes effect September 1, 2013.
623623 * * * * *