H.B. No. 2542

	AN ACT
	relating to the continuation and functions of the Office of Rural
	Community Affairs.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 487.001(1), Government Code, is amended
	to read as follows:
	(1)  "Board" ["Executive committee"] means the board
	[executive committee] of the Office of Rural Community Affairs.
	SECTION 2.  Section 487.002, Government Code, is amended to
	read as follows:
	Sec. 487.002.  SUNSET PROVISION.  The Office of Rural
	Community Affairs is subject to Chapter 325 (Texas Sunset Act).
	Unless continued in existence as provided by that chapter, the
	office is abolished and this chapter expires September 1, 2013
	[2007].
	SECTION 3.  Section 487.021, Government Code, is amended to
	read as follows:
	Sec. 487.021.  BOARD [EXECUTIVE COMMITTEE].  (a)  The board
	[executive committee] is the governing body of the office.
	(b)  The board [executive committee] is composed of the
	following 11 [nine] members:
	(1)  four [three] members who represent different
	geographic regions of the state appointed by the governor,
	including:
	(A)  two locally elected rural city or county
	officials or city or county employees involved with rural
	development; and
	(B)  two public members each of whom resides in a
	rural city or county;
	(2)  three public members appointed by the [lieutenant]
	governor from a list of nominees submitted by the lieutenant
	governor; [and]
	(3)  three public members appointed by the governor
	from a list of nominees submitted by the speaker of the house of
	representatives; and
	(4)  the commissioner of agriculture or the
	commissioner's designee.
	(b-1)  The individuals nominated by the lieutenant governor
	and the speaker of the house of representatives must reside in a
	rural city or county and be interested in rural issues. In making
	an appointment under Subsection (b)(2) or (3), the governor may
	reject one or more of the nominees on a list submitted by the
	lieutenant governor or the speaker of the house of representatives
	and request a new list of different nominees.
	(c)  In this section, "rural city or county" means a rural
	city or county as defined by the federal community development
	block grant nonentitlement program.  [The governor, the lieutenant
	governor, and the speaker of the house of representatives shall
	each appoint at least two members who possess a strong
	understanding of and commitment to rural interests based on the
	individual's personal history, including residency, occupation,
	and business or civic activities.]
	(d)  Appointments to the board [executive committee] shall
	be made without regard to the race, color, disability, sex,
	religion, age, or national origin of the appointees.
	(e)  The members of the board who are not serving as an
	additional duty of an office in state government [executive
	committee] serve for staggered six-year terms, with the terms of
	three or four members expiring February 1 of each odd-numbered
	year.
	(f)  Board [Executive committee] members receive no
	compensation but are entitled to reimbursement of actual and
	necessary expenses incurred in the performance of their duties.
	(g)  The governor shall designate a member [The members] of
	the board as the [executive committee annually shall elect a]
	presiding officer [from among the members] of the board to serve in
	that capacity at the will of the governor [executive committee].
	(h)  Service on the board by the commissioner of agriculture
	or an officer of a county or municipality is an additional duty of
	the individual's office.
	SECTION 4.  Sections 487.022(b) and (c), Government Code,
	are amended to read as follows:
	(b)  A person may not be a member of the board [executive
	committee] and may not be an office 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.) and its subsequent amendments, if:
	(1)  the person is an officer, employee, or paid
	consultant of a Texas trade association in the field of rural
	affairs; or
	(2)  the person's spouse is an officer, manager, or paid
	consultant of a Texas trade association in the field of rural
	affairs.
	(c)  A person may not be a member of the board [executive
	committee] or act as the general counsel to the board [executive
	committee] or the office if the person is required to register as a
	lobbyist under Chapter 305 because of the person's activities for
	compensation on behalf of a profession related to the operation of
	the office.
	SECTION 5.  Sections 487.023 through 487.027, Government
	Code, are amended to read as follows:
	Sec. 487.023.  TRAINING FOR MEMBERS OF BOARD [EXECUTIVE
	COMMITTEE]. (a)  A person who is appointed to and qualifies for
	office as a member of the board [executive committee] may not vote,
	deliberate, or be counted as a member in attendance at a meeting of
	the board [executive committee] until the person completes a
	training program that complies with this section.
	(b)  The training program must provide the person with
	information regarding:
	(1)  the legislation that created the office [and the
	executive committee];
	(2)  the programs, [operated by the office;
	[(3)  the role and] functions, [of the office;
	[(4)  the] rules, [of the office, with an emphasis on
	any rules that relate to disciplinary] and [investigatory
	authority;
	[(5)  the current] budget of [for] the office;
	(3) [(6)]  the results of the most recent formal audit
	of the office;
	(4) [(7)]  the requirements of laws relating to[:
	[(A)  the] open meetings [law], [Chapter 551;
	[(B)  the] public information [law], [Chapter
	552;
	[(C)  the] administrative procedure [law],
	[Chapter 2001;] and conflicts of interest
	[(D)     other laws relating to public officials,
	including conflict-of-interest laws]; and
	(5) [(8)]  any applicable ethics policies adopted by
	the office [executive committee] or the Texas Ethics Commission.
	(c)  A person appointed to the board [executive committee] is
	entitled to reimbursement, as provided by [general law and] the
	General Appropriations Act, for the travel expenses incurred in
	attending the training program regardless of whether the attendance
	at the program occurs before or after the person qualifies for
	office.
	Sec. 487.024.  REMOVAL. (a)  It is a ground for removal from
	the board [executive committee] that a member:
	(1)  does not have at the time of taking office the
	qualifications required by Section 487.021;
	(2)  does not maintain during service on the board
	[executive committee] the qualifications required by Section
	487.021;
	(3)  is ineligible for membership under Section
	487.022;
	(4)  cannot, because of illness or disability,
	discharge the member's duties for a substantial part of the member's
	term; or
	(5)  is absent from more than half of the regularly
	scheduled board [executive committee] meetings that the member is
	eligible to attend during a calendar year without an excuse
	approved by a majority vote of the board [executive committee].
	(b)  The validity of an action of the board [executive
	committee] is not affected by the fact that it is taken when a
	ground for removal of a board [an executive committee] member
	exists.
	(c)  If the executive director has knowledge that a potential
	ground for removal exists, the executive director shall notify the
	presiding officer of the board [executive committee] of the
	potential ground. The presiding officer shall then notify the
	appointing authority [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
	shall notify the next highest ranking officer of the board
	[executive committee], who shall then notify the appointing
	authority [governor] and the attorney general that a potential
	ground for removal exists.
	Sec. 487.025.  DIVISION OF RESPONSIBILITY. The board
	[executive committee] shall develop and implement policies that
	clearly separate the policy-making responsibilities of the board
	[executive committee] and the management responsibilities of the
	executive director and staff of the office.
	Sec. 487.026.  EXECUTIVE DIRECTOR. (a)  The board
	[executive committee] may hire an executive director to serve as
	the chief executive officer of the office and to perform the
	administrative duties of the office.
	(b)  The executive director serves at the will of the board
	[executive committee].
	(c)  The executive director may hire staff within guidelines
	established by the board [executive committee].
	Sec. 487.027.  PUBLIC HEARINGS. The board [executive
	committee] shall develop and implement policies that provide the
	public with a reasonable opportunity to appear before the board
	[executive committee] and to speak on any issue under the
	jurisdiction of the office.
	SECTION 6.  Section 487.029, Government Code, is amended to
	read as follows:
	Sec. 487.029.  STANDARDS OF CONDUCT. The executive director
	or the executive director's designee shall provide to members of
	the board [executive committee] and to agency employees, as often
	as necessary, information regarding the requirements for office or
	employment under this chapter, including information regarding a
	person's responsibilities under applicable laws relating to
	standards of conduct for state officers or employees.
	SECTION 7.  Section 487.030, Government Code, is amended to
	read as follows:
	Sec. 487.030.  COMPLAINTS.  (a)  The office shall maintain a
	system to promptly and efficiently act on complaints [file on each
	written complaint] filed with the office. The office shall
	maintain information about parties to the complaint, the subject
	matter of the complaint, a summary of the results of the review or
	investigation of the complaint, and its disposition [The file must
	include:
	[(1)  the name of the person who filed the complaint;
	[(2)  the date the complaint is received by the office;
	[(3)  the subject matter of the complaint;
	[(4)     the name of each person contacted in relation to
	the complaint;
	[(5)     a summary of the results of the review or
	investigation of the complaint; and
	[(6)     an explanation of the reason the file was closed,
	if the office closed the file without taking action other than to
	investigate the complaint].
	(b)  The office shall make information available describing
	its [provide to the person filing the complaint and to each person
	who is a subject of the complaint a copy of the office's policies
	and] procedures for [relating to] complaint investigation and
	resolution.
	(c)  The office[, at least quarterly until final disposition
	of the complaint,] shall periodically notify the complaint parties
	[person filing the complaint and each person who is a subject of the
	complaint] of the status of the complaint until final disposition
	[investigation unless the notice would jeopardize an undercover
	investigation].
	SECTION 8.  Subchapter B, Chapter 487, Government Code, is
	amended by adding Sections 487.031 and 487.032 to read as follows:
	Sec. 487.031.  USE OF TECHNOLOGY.  The board shall implement
	a policy requiring the office to use appropriate technological
	solutions to improve the office's ability to perform its functions.
	The policy must ensure that the public is able to interact with the
	office on the Internet.
	Sec. 487.032.  NEGOTIATED RULEMAKING AND ALTERNATIVE
	DISPUTE RESOLUTION PROCEDURES. (a) The board shall develop and
	implement a policy to encourage the use of:
	(1)  negotiated rulemaking procedures under Chapter
	2008 for the adoption of office rules; and
	(2)  appropriate alternative dispute resolution
	procedures under Chapter 2009 to assist in the resolution of
	internal and external disputes under the office's jurisdiction.
	(b)  The office's procedures relating to alternative dispute
	resolution must conform, to the extent possible, to any model
	guidelines issued by the State Office of Administrative Hearings
	for the use of alternative dispute resolution by state agencies.
	(c)  The board shall designate a trained person to:
	(1)  coordinate the implementation of the policy
	adopted under Subsection (a);
	(2)  serve as a resource for any training needed to
	implement the procedures for negotiated rulemaking or alternative
	dispute resolution; and
	(3)  collect data concerning the effectiveness of those
	procedures, as implemented by the office.
	SECTION 9.  Section 487.051, Government Code, is amended to
	read as follows:
	Sec. 487.051.  POWERS AND DUTIES.  (a) The office shall:
	(1)  assist rural communities in the key areas of
	economic development, community development, rural health, and
	rural housing [develop a rural policy for the state in consultation
	with local leaders representing all facets of rural community life,
	academic and industry experts, and state elected and appointed
	officials with interests in rural communities];
	(2)  serve as a clearinghouse for information and
	resources on all state and federal programs affecting rural
	communities [work with other state agencies and officials to
	improve the results and the cost-effectiveness of state programs
	affecting rural communities through coordination of efforts];
	(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 [develop
	programs to improve the leadership capacity of rural community
	leaders];
	(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) [(5)]  administer the federal community
	development block grant nonentitlement program;
	(7) [(6)]  administer programs supporting rural health
	care as provided by this chapter;
	(8) [(7)]  perform research to determine the most
	beneficial and cost-effective ways to improve the welfare of rural
	communities;
	(9) [(8)]  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) [(9)]  manage the state's Medicare rural hospital
	flexibility program under 42 U.S.C. Section 1395i-4; [and]
	(11) [(10)]  seek state and federal money available for
	economic development in rural areas for programs under this
	chapter; and
	(12)  in conjunction with the Department of
	Agriculture, regularly cross-train office employees with employees
	of the Department of Agriculture regarding the programs
	administered and services provided by each agency to rural
	communities.
	(b)  The office may require office employees who work at
	locations other than the central office to be based in Department of
	Agriculture offices.
	SECTION 10.  Section 487.052, Government Code, is amended to
	read as follows:
	Sec. 487.052.  RULES. The board [executive committee] may
	adopt rules as necessary to implement this chapter.
	SECTION 11.  Section 487.053(b), Government Code, is amended
	to read as follows:
	(b)  All gifts, grants, and donations must be accepted in an
	open meeting by a majority of the voting members of the board
	[executive committee] 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.  Section 487.054(b), Government Code, is amended
	to read as follows:
	(b)  The board [executive committee] shall call the annual
	meeting. The board [executive committee] shall set the time and
	date of the meeting after consulting with the agency heads listed in
	Subsection (a).
	SECTION 13.  Section 487.055, Government Code, is amended to
	read as follows:
	Sec. 487.055.  ADVISORY COMMITTEES. The board [executive
	committee] may appoint advisory committees as necessary to assist
	the board [executive committee] in performing its duties. An
	advisory committee may be composed of private citizens and
	representatives from state and local governmental entities. A
	state or local governmental entity shall appoint a representative
	to an advisory committee at the request of the board [executive
	committee]. Chapter 2110 does not apply to an advisory committee
	created under this section.
	SECTION 14.  Section 487.056, Government Code, is amended by
	adding Subsection (c) to read as follows:
	(c)  The office shall obtain information on the availability
	of housing in rural communities throughout the state for all income
	levels. The office shall include the information, and the office's
	assessment of the information, in the office's report to the
	legislature.
	SECTION 15.  Section 487.057(b), Government Code, is amended
	to read as follows:
	(b)  The office shall submit the rural health work plan to
	the board [executive committee] for approval. The board [executive
	committee] shall approve the rural health work plan not later than
	August 1 of each odd-numbered year.
	SECTION 16.  Sections 487.059(b), (c), (e), (f), and (g),
	Government Code, are amended to read as follows:
	(b)  If a member of the board [executive committee] or a
	[another] 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 office employee 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 board
	[executive committee] 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 office
	procedures may [has a] 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 [executive] committee who is employed by:
	(1)  an entity that offers to enter into a contract with
	the office; 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
	office.
	(f)  The board or [executive] committee member shall, before
	a vote on the monetary award or contract, disclose the fact of the
	member's employment by the entity. The board or [executive]
	committee shall enter the disclosure into the minutes of the
	meeting at which a vote on the monetary award or contract is taken.
	The board or [executive] committee member may not vote on or
	otherwise participate in a discussion or any other activity that
	relates to awarding the monetary award or contract.
	(g)  If the board or [executive] committee member does not
	comply with Subsection (f), the entity is not eligible to be awarded
	the monetary award or contract.
	SECTION 17.  Sections 487.103(a), (b), and (c), Government
	Code, are amended to read as follows:
	(a)  The selection committee shall advise the board
	[executive committee] on the progress of the program.
	(b)  The selection committee is composed of 12 members
	appointed by the board [executive committee].
	(c)  The board [executive committee] shall consider
	geographical representation in making appointments to the
	selection committee.
	SECTION 18.  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 board [executive committee] and adopted as
	a rule of the office.
	(d)  The selection committee shall recommend to the board
	[executive committee] guidelines to be used by rural communities in
	the selection of students for nomination and sponsorship as
	outstanding rural scholars.
	SECTION 19.  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 board [executive committee]
	guidelines for the awarding of forgivable loans to outstanding
	rural scholars.
	(b)  The board [executive committee], 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 board [executive committee] shall
	award forgivable loans on a priority basis according to the
	applicants' academic performance, test scores, and other criteria
	of eligibility.
	SECTION 20.  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 board [executive committee] that the board
	[committee] 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 21.  Sections 487.109(b), (c), and (d), Government
	Code, are amended to read as follows:
	(b)  The sponsoring community shall report to the board
	[executive committee] the length of time the scholar practices as a
	health care professional in the community.
	(c)  If the board [executive committee] 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 board [executive
	committee] 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 office with
	reasonable collection fees in a timely manner as provided by board
	[executive committee] rule.
	SECTION 22.  Section 487.112, Government Code, is amended to
	read as follows:
	Sec. 487.112.  ADOPTION AND DISTRIBUTION OF RULES. (a)  The
	board [executive committee] shall adopt reasonable rules to enforce
	the requirements, conditions, and limitations under this
	subchapter.
	(b)  The board [executive committee] shall set the rate of
	interest charged on a forgivable loan under this subchapter.
	(c)  The board [executive committee] 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.  Section 487.154, Government Code, is amended to
	read as follows:
	Sec. 487.154.  LOANS. (a)  The board [executive committee]
	may award forgivable educational loans to eligible students under
	this subchapter.
	(b)  The board [executive committee] 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 board [executive committee] may award
	forgivable loans on a priority basis according to the students'
	academic performance, test scores, and other criteria of
	eligibility.
	SECTION 24.  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
	board [executive committee];
	(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
	board [executive committee].
	SECTION 25.  Section 487.156(c), Government Code, is amended
	to read as follows:
	(c)  The board [executive committee] shall determine the
	percentage of educational expenses communities are required to
	provide under this section.
	SECTION 26.  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 board [executive committee] 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 27.  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 office and the sponsoring community;
	(2)  interest on the total amount at a rate set by the
	board [executive committee]; and
	(3)  the state's reasonable expenses incurred in
	obtaining payment, including reasonable attorney's fees.
	SECTION 28.  Section 487.159(b), Government Code, is amended
	to read as follows:
	(b)  If the board [executive committee] 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 board [executive
	committee] 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 29.  Sections 487.161(b) and (c), Government Code,
	are amended to read as follows:
	(b)  The sponsoring community shall report to the board
	[executive committee] the length of time the student provides
	health care services in the community in accordance with the
	guidelines established by the board [executive committee].
	(c)  A postsecondary educational institution shall provide
	to the board [executive committee] 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 30.  Section 487.163, Government Code, is amended to
	read as follows:
	Sec. 487.163.  ADOPTION OF RULES. (a)  The board [executive
	committee] shall adopt reasonable rules to enforce the
	requirements, conditions, and limitations of this subchapter.
	(b)  The board [executive committee] shall set the rate of
	interest charged on a forgivable loan under this subchapter.
	(c)  The board [executive committee] 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 31.  Sections 487.202, 487.203, and 487.204,
	Government Code, are amended to read as follows:
	Sec. 487.202.  PROGRAM. (a)  The board [executive
	committee] shall establish and administer a program under this
	subchapter to increase the number of physicians providing primary
	care in medically underserved communities.
	(b)  A medically underserved community may sponsor a
	physician who has completed a primary care residency program and
	has agreed to provide primary care in the community by contributing
	start-up money for the physician and having that contribution
	matched wholly or partly by state money appropriated to the office
	[executive committee] for that purpose.
	(c)  A participating medically underserved community may
	provide start-up money to an eligible physician over a two-year
	period.
	(d)  The office [executive committee] may not pay more than
	$25,000 to a community in a fiscal year unless the board [executive
	committee] makes a specific finding of need by the community.
	(e)  The board [executive committee] shall establish
	priorities so that the neediest communities eligible for assistance
	under this subchapter are assured the receipt of a grant.
	Sec. 487.203.  ELIGIBILITY. To be eligible to receive money
	from the office [executive committee], a medically underserved
	community must:
	(1)  apply for the money; and
	(2)  provide evidence satisfactory to the board
	[executive committee] 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 board [executive committee] 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 office
	[executive committee];
	(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 32.  Section 487.252, Government Code, is amended to
	read as follows:
	Sec. 487.252.  TEXAS HEALTH SERVICE CORPS PROGRAM. (a)  The
	board [executive committee] shall establish a program in the office
	to assist communities in recruiting and retaining physicians to
	practice in medically underserved areas.
	(b)  The board [executive committee] 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 33.  Section 487.253(a), Government Code, is amended
	to read as follows:
	(a)  The board [executive committee] shall adopt rules
	necessary to administer this subchapter, and the office shall
	administer the program in accordance with those rules.
	SECTION 34.  Section 487.351, Government Code, is amended by
	adding Subsection (c) to read as follows:
	(c)  The office shall give priority to eligible activities in
	the areas of economic development, community development, rural
	health, and rural housing to support workforce development in
	awarding funding for community development block grant programs.
	SECTION 35.  Subchapter I, Chapter 487, Government Code, is
	amended by adding Section 487.3515 to read as follows:
	Sec. 487.3515.  EVALUATION OF COMMUNITY DEVELOPMENT BLOCK
	GRANT PROGRAM. (a)  The office, in consultation with the Department
	of Agriculture, shall review and evaluate the administration of the
	state's allocation of federal funds under the community development
	block grant nonentitlement program and, based on the results of the
	evaluation, streamline administration of the program and program
	requirements. The office shall, at a minimum, evaluate:
	(1)  combining program fund categories, within
	allowable limits provided by state statute, the General
	Appropriations Act, and federal law and regulations;
	(2)  simplifying the grant application and scoring
	process; and
	(3)  regularly reviewing and closing out aged
	contracts.
	(b)  The office shall implement program changes resulting
	from the evaluation that do not require statutory changes as soon as
	possible, but not later than the date the office publishes the next
	community development block grant nonentitlement program action
	plan.
	(c)  The office shall include the findings from the
	evaluation, program changes resulting from the evaluation, and any
	statutory changes needed to make additional changes in the agency's
	biennial report to the 81st Legislature.
	(d)  This section expires September 1, 2009.
	SECTION 36.  Section 487.353, Government Code, is amended by
	amending Subsections (i) and (j) and adding Subsections (k) and (l)
	to read as follows:
	(i)  The committee shall:
	(1)  consult with and advise the executive director on
	the administration and enforcement of the community development
	block grant program; and
	(2)  in consultation with the executive director and
	office staff, review and approve grant and loan [funding]
	applications and associated funding awards of eligible counties and
	municipalities and advise and assist the executive director
	regarding the allocation of program funds to those applicants.
	(j)  The committee may annually recommend to the executive
	director a formula for allocating funds to each geographic state
	planning region established by the governor under Chapter 391,
	Local Government Code. The formula must give preference to regions
	according to the regions' needs.
	(k)  An applicant for a grant, loan, or award under a
	community development block grant program may appeal a decision of
	the committee by filing a complaint with the board. The board shall
	hold a hearing on a complaint filed with the board under this
	subsection and render a decision.
	(l)  The committee is a governmental body for purposes of the
	open meetings law, Chapter 551.
	SECTION 37.  Section 487.401, Government Code, is amended to
	read as follows:
	Sec. 487.401.  ADMINISTRATION. (a)  The board [executive
	committee] 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 office shall designate
	the hospital as a rural hospital if the hospital meets the
	requirements for a rural hospital under the board's [executive
	committee's] rules.
	SECTION 38.  Section 487.451(1), Government Code, is 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 board [executive committee].
	SECTION 39.  Section 487.452(a), Government Code, is amended
	to read as follows:
	(a)  The board [executive committee], 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 40.  Section 487.454, Government Code, is amended to
	read as follows:
	Sec. 487.454.  GRANTS; ELIGIBILITY. (a)  Subject to
	available funds, the board [executive committee] 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 board
	[executive committee] 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 board
	[executive committee];
	(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 board [executive
	committee] 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 41.  Section 487.553, Government Code, is amended to
	read as follows:
	Sec. 487.553.  LOAN REIMBURSEMENT PROGRAM. The board
	[executive committee] shall establish a program in the office 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 42.  Section 487.554(a), Government Code, is amended
	to read as follows:
	(a)  The board [executive committee] shall establish a
	program in the office 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 43.  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 office and the medically underserved
	community;
	(2)  interest on the amount under Subdivision (1) at a
	rate set by the board [executive committee];
	(3)  the state's reasonable expenses incurred in
	obtaining payment, including reasonable attorney's fees; and
	(4)  a penalty as established by the board [executive
	committee] by rule to help ensure compliance with the contract.
	SECTION 44.  Section 487.556, Government Code, is amended to
	read as follows:
	Sec. 487.556.  POWERS AND DUTIES OF OFFICE. (a)  The board
	[executive committee] 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
	office in contracting with the loan reimbursement or stipend
	recipient who will serve that community.
	(b)  The board [executive committee] by rule may designate
	areas of the state as medically underserved communities.
	(c)  The board [executive committee] shall make reasonable
	efforts to contract with health professionals from a variety of
	different health professions.
	SECTION 45.  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 board [executive
	committee]:
	(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 [State Board of]
	Medical Board [Examiners].
	SECTION 46.  Section 110.003(a), Health and Safety Code, is
	amended to read as follows:
	(a)  The Rural Foundation is governed by a board of five
	directors appointed by the board [executive committee] of the
	Office of Rural Community Affairs from individuals recommended by
	the executive director of the Office of Rural Community Affairs.
	SECTION 47.  Section 110.010, Health and Safety Code, is
	amended to read as follows:
	Sec. 110.010.  MEMORANDUM OF UNDERSTANDING.  The Rural
	Foundation and the Office of Rural Community Affairs 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 and board [executive
	committee] of the Office of Rural Community Affairs;
	(2)  allows the Office of Rural Community Affairs to
	provide staff functions to the foundation;
	(3)  allows the Office of Rural Community Affairs 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 48.  (a) The nine members of the executive committee
	of the Office of Rural Community Affairs who are serving
	immediately before September 1, 2007, continue to serve as members
	of the governing board of the office on and after that date
	regardless of whether those members meet the membership
	requirements prescribed by Subchapter B, Chapter 487, Government
	Code, as amended by this Act. However, the positions of those nine
	members are abolished on the date on which a majority of the 11
	board membership positions that are created under Section 487.021,
	Government Code, as amended by this Act, are filled and the
	appointees qualify for office.
	(b)  The governor shall make the 10 appointments to the board
	under Section 487.021, Government Code, as amended by this Act, as
	soon as possible on or after September 1, 2007. In making the
	initial appointments, the governor shall designate three members
	for terms expiring February 1, 2009, three members for terms
	expiring February 1, 2011, and four members for terms expiring
	February 1, 2013. Any person who served as a member of the
	executive committee before September 1, 2007, may be appointed to
	the board.
	SECTION 49.  This Act takes effect immediately if it
	receives a vote of two-thirds of all the members elected to each
	house, as provided by Section 39, Article III, Texas Constitution.
	If this Act does not receive the vote necessary for immediate
	effect, this Act takes effect September 1, 2007.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2542 was passed by the House on May 7,
	2007, by the following vote:  Yeas 145, Nays 0, 1 present, not
	voting; that the House refused to concur in Senate amendments to
	H.B. No. 2542 on May 24, 2007, and requested the appointment of a
	conference committee to consider the differences between the two
	houses; and that the House adopted the conference committee report
	on H.B. No. 2542 on May 27, 2007, by the following vote:  Yeas 147,
	Nays 0, 2 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2542 was passed by the Senate, with
	amendments, on May 21, 2007, by the following vote:  Yeas 30, Nays
	1; at the request of the House, the Senate appointed a conference
	committee to consider the differences between the two houses; and
	that the Senate adopted the conference committee report on H.B. No.
	2542 on May 26, 2007, by the following vote:  Yeas 30, Nays 0.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor