Bill Text: TX HB1181 | 2011-2012 | 82nd Legislature | Introduced


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

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-04-07 - Left pending in committee [HB1181 Detail]

Download: Texas-2011-HB1181-Introduced.html
  82R3823 MCK-D
 
  By: Deshotel H.B. No. 1181
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to abolishing the Texas Department of Rural Affairs and
  transferring its functions to the Texas Department of Housing and
  Community Affairs, Department of State Health Services, and
  Department of Agriculture.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 38.060(a), Education Code, is amended to
  read as follows:
         (a)  This section applies only to a school-based health
  center serving an area that:
               (1)  is located in a county with a population not
  greater than 50,000; or
               (2)  has been designated under state or federal law as:
                     (A)  a health professional shortage area;
                     (B)  a medically underserved area; or
                     (C)  a medically underserved community by the
  [Texas] Department of State Health Services [Rural Affairs].
         SECTION 2.  Sections 51.918(a) and (c), Education Code, are
  amended to read as follows:
         (a)  The Texas Higher Education Coordinating Board, the
  [Texas] Department of State Health Services [Rural Affairs],
  medical schools, nursing schools, and schools of allied health
  sciences shall cooperate to improve and expand programs for rural
  areas.
         (c)  The [Texas] Department of State Health Services [Rural
  Affairs] shall develop relief service programs for rural physicians
  and allied health personnel to facilitate ready access to
  continuing medical education as well as to provide practice
  coverage for purposes other than continuing medical education.
         SECTION 3.  Section 58.007(b)(1), Education Code, is amended
  to read as follows:
               (1)  The Primary Care Residency Advisory Committee is
  created and shall consist of 12 members as follows:
                     (A)  seven members shall be licensed physicians,
  one appointed by each of the following:
                           (i)  the Texas Medical Association;
                           (ii)  the Texas Osteopathic Medical
  Association;
                           (iii)  the Texas Academy of Family
  Physicians;
                           (iv)  the Texas Society of the American
  College of Osteopathic Family Physicians;
                           (v)  the Texas Society of Internal Medicine;
                           (vi)  the Texas Pediatric Society; and
                           (vii)  the Texas Association of
  Obstetricians and Gynecologists;
                     (B)  one member shall be appointed by the [Texas]
  Department of State Health Services [Rural Affairs];
                     (C)  one member shall be appointed by the Bureau
  of Community Oriented Primary Care at the Department of State
  Health Services; and
                     (D)  three members shall be members of the public,
  one appointed by each of the following:
                           (i)  the governor;
                           (ii)  the lieutenant governor; and
                           (iii)  the speaker of the house of
  representatives.
         SECTION 4.  Section 61.0899, Education Code, is amended to
  read as follows:
         Sec. 61.0899.  ASSISTANCE IN CERTAIN RURAL HEALTH CARE LOAN
  REIMBURSEMENT AND STIPEND PROGRAMS. The board shall, in
  cooperation with the [Texas] Department of State Health Services
  [Rural Affairs] and the department's advisory panel established
  under Section 487.552, Government Code, ensure that the board seeks
  to obtain the maximum amount of funds from any source, including
  federal funds, to support programs to provide student loan
  reimbursement or stipends for graduates of degree programs in this
  state who practice or agree to practice in a medically underserved
  community.
         SECTION 5.  Section 403.1065(c), Government Code, is amended
  to read as follows:
         (c)  The available earnings of the fund may be appropriated
  to the [Texas] Department of State Health Services [Rural Affairs]
  for the purposes of Subchapter H, Chapter 487.
         SECTION 6.  Section 405.021(c), Government Code, is amended
  to read as follows:
         (c)  The secretary of state shall compile information
  received from [the Office of Rural Community Affairs,] the Texas
  Water Development Board, the Texas Transportation Commission, the
  Texas Department of Housing and Community Affairs, the Department
  of State Health Services, the Texas Commission on Environmental
  Quality, the Health and Human Services Commission, the Texas
  Cooperative Extension, councils of governments, an institution of
  higher education that receives funding from the state for projects
  that provide assistance to colonias, and any other agency
  considered appropriate by the secretary of state for purposes of
  the classification system.
         SECTION 7.  Section 481.0215(b), Government Code, is amended
  to read as follows:
         (b)  At the direction of the governor, the executive director
  of the department or its successor shall work with each state agency
  that administers a program relating to job training or job
  creation, including the Texas Workforce Commission, the Council on
  Workforce and Economic Competitiveness, the Department of
  Agriculture, and the Texas Department of Housing and Community
  [Office of Rural] Affairs, to address the challenges facing the
  agencies relating to job training and job creation.
         SECTION 8.  The heading to Chapter 487, Government Code, is
  amended to read as follows:
  CHAPTER 487. PROGRAMS AFFECTING [TEXAS DEPARTMENT OF] RURAL
  COMMUNITIES [AFFAIRS]
         SECTION 9.  Section 487.051, Government Code, is amended to
  read as follows:
         Sec. 487.051.  POWERS AND DUTIES OF TEXAS DEPARTMENT OF
  HOUSING AND COMMUNITY AFFAIRS. (a) In this section, "department"
  means the Texas Department of Housing and Community Affairs.
         (b)  The department shall:
               (1)  assist rural communities in the key areas of
  economic development, community development, [rural health,] and
  rural housing;
               (2)  serve as a clearinghouse for information and
  resources on [all] state and federal programs affecting economic
  development, community development, and housing in rural
  communities;
               (3)  in consultation with rural community leaders,
  locally elected officials, state elected and appointed officials,
  academic and industry experts, and the interagency work group
  created under this chapter, identify and prioritize policy issues
  and concerns relating to economic development, community
  development, and housing affecting rural communities in the state;
               (4)  make recommendations to the legislature to address
  the concerns affecting rural communities identified under
  Subdivision (3);
               (5)  monitor developments relating to economic
  development, community development, and housing that have a
  substantial effect on rural Texas communities, especially actions
  of state government, and compile an annual report describing and
  evaluating the condition of rural communities;
               (6)  administer the federal community development
  block grant nonentitlement program;
               (7)  [administer programs supporting rural health care
  as provided by this chapter;
               [(8)]  perform research to determine the most
  beneficial and cost-effective ways to improve the welfare of rural
  communities; and
               (8) [(9)     ensure that the department qualifies as the
  state's office of rural health for the purpose of receiving grants
  from the Office of Rural Health Policy of the United States
  Department of Health and Human Services under 42 U.S.C. Section
  254r;
               [(10)     manage the state's Medicare rural hospital
  flexibility program under 42 U.S.C. Section 1395i-4;
               [(11)]  seek state and federal money available for
  economic development in rural areas for programs under this
  chapter[;
               [(12)     in conjunction with the Department of
  Agriculture, regularly cross-train department employees with
  employees of the Department of Agriculture regarding the programs
  administered and services provided by each agency to rural
  communities; and
               [(13)     work with interested persons to assist volunteer
  fire departments and emergency services districts in rural areas].
         [(b)     The department may require department employees who
  work at locations other than the central office to be based in
  Department of Agriculture offices.]
         SECTION 10.  Subchapter C, Chapter 487, Government Code, is
  amended by adding Sections 487.0511 and 487.0512 to read as
  follows:
         Sec. 487.0511.  POWERS AND DUTIES OF DEPARTMENT OF STATE
  HEALTH SERVICES. (a) In this section, "department" means the
  Department of State Health Services.
         (b)  The department shall:
               (1)  assist rural communities in the area of rural
  health;
               (2)  serve as a clearinghouse for information and
  resources on all state and federal programs affecting rural health;
               (3)  in consultation with rural community leaders,
  locally elected officials, state elected and appointed officials,
  academic and industry experts, and the interagency work group
  created under this chapter, identify and prioritize policy issues
  and concerns affecting rural health in the state;
               (4)  make recommendations to the legislature to address
  the concerns affecting rural communities identified under
  Subdivision (3);
               (5)  monitor developments that have a substantial
  effect on rural health, especially actions of state government, and
  compile an annual report describing and evaluating the condition of
  rural communities;
               (6)  administer programs supporting rural health care
  as provided by this chapter;
               (7)  perform research to determine the most beneficial
  and cost-effective ways to improve health care in communities;
               (8)  ensure that the department qualifies as the
  state's office of rural health for the purpose of receiving grants
  from the Office of Rural Health Policy of the United States
  Department of Health and Human Services under 42 U.S.C. Section
  254r;
               (9)  manage the state's Medicare rural hospital
  flexibility program under 42 U.S.C. Section 1395i-4; and
               (10)  work with interested persons to assist volunteer
  fire departments and emergency services districts in rural areas.
         Sec. 487.0512.  POWERS AND DUTIES OF DEPARTMENT OF
  AGRICULTURE. (a) In this section, "department" means the
  Department of Agriculture.
         (b)  The department shall:
               (1)  assist rural communities regarding renewable
  energy and water projects;
               (2)  serve as a clearinghouse for information and
  resources on renewable energy and water projects in rural
  communities;
               (3)  in consultation with rural community leaders,
  locally elected officials, state elected and appointed officials,
  academic and industry experts, and the interagency work group
  created under this chapter, identify and prioritize policy issues
  and concerns affecting renewable energy and water projects in rural
  communities in the state;
               (4)  make recommendations to the legislature to address
  the concerns affecting rural communities identified under
  Subdivision (3); and
               (5)  monitor developments that have a substantial
  effect on rural Texas communities, especially actions of state
  government, and compile an annual report describing and evaluating
  renewable energy and water projects in rural communities.
         SECTION 11.  Section 487.053, Government Code, is amended to
  read as follows:
         Sec. 487.053.  GIFTS AND GRANTS. [(a)] The Texas Department
  of Housing and Community Affairs, Department of State Health
  Services, and Department of Agriculture [department] may accept
  gifts, grants, and donations from any organization for the purpose
  of funding any activity under this chapter, and the departments
  [department] shall actively seek funding from appropriate
  nonprofit foundations.
         [(b)     All gifts, grants, and donations must be accepted in an
  open meeting by a majority of the voting members of the board and
  reported in the public record of the meeting with the name of the
  donor and purpose of the gift, grant, or donation.]
         SECTION 12.  Sections 487.054(a) and (b), Government Code,
  are amended to read as follows:
         (a)  At least once each year, the following agency heads or
  their designees shall meet in Austin to discuss rural issues and to
  provide information showing the impact each agency has on rural
  communities for use in developing rural policy and compiling the
  annual reports [report] under Sections 487.051(b)(5),
  487.0511(b)(5), and 487.052(b)(5) [Section 487.051(a)(5)]:
               (1)  the commissioner of agriculture;
               (2)  the executive director of the Public Utility
  Commission of Texas;
               (3)  the director of the Texas AgriLife [Agricultural]
  Extension Service;
               (4)  the executive director of the Texas Department of
  Housing and Community Affairs;
               (5)  the commissioner of the Department of State Health
  Services;
               (6)  the executive administrator of the Texas Water
  Development Board;
               (7)  the executive director of the Parks and Wildlife
  Department;
               (8)  the commissioner of higher education;
               (9)  the comptroller;
               (10)  the executive director of the Texas Department of
  Transportation;
               (11)  the executive director of the Texas Commission on
  Environmental Quality;
               (12)  the executive director of the Texas Economic
  Development and Tourism Office;
               (13)  the commissioner of insurance;
               (14)  the commissioner of the Department of Aging and
  Disability Services;
               (15)  the commissioner of education;
               (16)  the executive commissioner of the Health and
  Human Services Commission;
               (17)  the executive director of the Texas Workforce
  Commission;
               (18)  the executive director of the Texas Historical
  Commission;
               (19)  a member of the Railroad Commission of Texas;
               (20)  the executive director of the State Soil and
  Water Conservation Board; and
               (21)  [the executive director of the department; and
               [(22)]  the head of any other agency interested in
  rural issues.
         (b)  The commissioner of agriculture [board] shall call the
  annual meeting.  The commissioner of agriculture [board] shall set
  the time and date of the meeting after consulting with the agency
  heads listed in Subsection (a).
         SECTION 13.  Section 487.0541(c), Government Code, is
  amended to read as follows:
         (c)  The work group shall meet at the call of the
  commissioner of agriculture [executive director of the
  department].
         SECTION 14.  Section 487.056, Government Code, is amended to
  read as follows:
         Sec. 487.056.  REPORT TO LEGISLATURE. (a) Not later than
  January 1 of each odd-numbered year, the Texas Department of
  Housing and Community Affairs, Department of State Health Services,
  and Department of Agriculture [department] shall each submit a
  biennial report to the legislature regarding that agency's [the
  activities of the department, the] activities [of the Texas Rural
  Foundation,] and any findings and recommendations relating to rural
  issues. The Texas Department of Housing and Community Affairs
  shall include in its report the activities of the Texas Rural
  Foundation.
         (b)  The Department of State Health Services [department]
  shall obtain information from each county about indigent health
  care provided in the county and information from each university,
  medical school, rural community, or rural health care provider that
  has performed a study relating to rural health care during the
  biennium. The department shall include the information obtained
  under this subsection in the department's report to the
  legislature.
         (c)  The Texas Department of Housing and Community Affairs
  [department] shall obtain information on the availability of
  housing in rural communities throughout the state for all income
  levels. The department shall include the information, and the
  department's assessment of the information, in the department's
  report to the legislature.
         SECTION 15.  Section 487.057(a), Government Code, is amended
  to read as follows:
         (a)  The Department of State Health Services [department]
  shall develop, implement, and update a rural health work plan.
         SECTION 16.  Sections 487.059(b), (c), and (e), Government
  Code, are amended to read as follows:
         (b)  If a member of the governing board of a state agency
  described by Subsection (c) [the board] or a committee established
  under this chapter, including an advisory committee, has a
  financial interest in an entity that applies for a monetary award,
  the board or committee member shall, before a vote on the monetary
  award, disclose the fact of the board or committee member's
  financial interest.  The board or committee shall enter the
  disclosure into the minutes of the meeting at which a vote on the
  monetary award is taken.  The board or committee member may not
  vote on or otherwise participate in a discussion or any other
  activity that relates to awarding the monetary award.  If the board
  or committee member does not comply with this subsection, the
  entity is not eligible for the monetary award.
         (c)  If the executive director or another [department]
  employee of the Texas Department of Housing and Community Affairs,
  Department of State Health Services, or Department of Agriculture
  has a financial interest in an entity that applies for a monetary
  award, the executive director or employee:
               (1)  shall, as soon as possible, disclose to the
  governing board of the agency [board] the fact of the director's or
  employee's financial interest;
               (2)  may not participate in staff evaluations regarding
  the monetary award; and
               (3)  if the executive director or employee under the
  agency's [department] procedures may vote, or make a recommendation
  concerning a vote, on a matter that involves the monetary award:
                     (A)  shall disclose the fact of the director's or
  employee's financial interest before a vote on the monetary award,
  which the board or committee shall enter into the minutes of the
  meeting at which a vote on the monetary award is taken; and
                     (B)  may not vote on or otherwise participate in a
  discussion or any other activity that relates to awarding the
  monetary award.
         (e)  Subsections (f) and (g) apply only to a member of the
  board or a committee who is employed by:
               (1)  an entity that offers to enter into a contract with
  the Texas Department of Housing and Community Affairs, Department
  of State Health Services, or Department of Agriculture
  [department]; or
               (2)  an entity that is under common ownership or
  governance with or otherwise affiliated with an entity that applies
  for a monetary award or offers to enter into a contract with the
  Texas Department of Housing and Community Affairs, Department of
  State Health Services, or Department of Agriculture [department].
         SECTION 17.  Section 487.060(a), Government Code, is amended
  to read as follows:
         (a)  In this section:
               (1)  "Colonia [, "colonia]" means a geographic area
  that:
                     (A) [(1)]  is an economically distressed area as
  defined by Section 17.921, Water Code;
                     (B) [(2)]  is located in a county any part of
  which is within 62 miles of an international border; and
                     (C) [(3)]  consists of 11 or more dwellings that
  are located in close proximity to each other in an area that may be
  described as a community or neighborhood.
               (2)  "Department" means the Texas Department of Housing
  and Community Affairs.
         SECTION 18.  Section 487.061(a), Government Code, is amended
  to read as follows:
         (a)  The Department of State Health Services [department]
  shall establish a program to provide interested rural communities
  with:
               (1)  general information about emergency services
  districts;
               (2)  information and training related to the
  establishment of an emergency services district; and
               (3)  technical assistance related to the
  implementation of an emergency services district.
         SECTION 19.  Section 487.101, Government Code, is amended by
  amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to
  read as follows:
               (1)  "Commissioner" means the commissioner of the
  Department of State Health Services.
               (1-a)  "Department" means the Department of State
  Health Services.
               (1-b)  "Selection committee" means the Outstanding
  Rural Scholar Selection Committee.
         SECTION 20.  Sections 487.103(a), (b), and (c), Government
  Code, are amended to read as follows:
         (a)  The selection committee shall advise the commissioner
  [board] on the progress of the program.
         (b)  The selection committee is composed of 12 members
  appointed by the commissioner [board].
         (c)  The commissioner [board] shall consider geographical
  representation in making appointments to the selection committee.
         SECTION 21.  Sections 487.104(b) and (d), Government Code,
  are amended to read as follows:
         (b)  The selection committee shall make selections based on
  criteria approved by the commissioner [board] and adopted as a rule
  of the department.
         (d)  The selection committee shall recommend to the
  commissioner [board] guidelines to be used by rural communities in
  the selection of students for nomination and sponsorship as
  outstanding rural scholars.
         SECTION 22.  Section 487.107, Government Code, is amended to
  read as follows:
         Sec. 487.107.  AWARDING OF LOANS. (a) The selection
  committee shall recommend to the commissioner [board] guidelines
  for the awarding of forgivable loans to outstanding rural scholars.
         (b)  The commissioner [board], acting on the advice of the
  selection committee, shall award forgivable loans to outstanding
  rural scholars based on the availability of money in the fund.
         (c)  If in any year the fund is inadequate to provide loans to
  all eligible applicants, the commissioner [board] shall award
  forgivable loans on a priority basis according to the applicants'
  academic performance, test scores, and other criteria of
  eligibility.
         SECTION 23.  Section 487.108(a), Government Code, is amended
  to read as follows:
         (a)  On confirmation of an outstanding rural scholar's
  admission to a postsecondary educational institution, or on receipt
  of an enrollment report of the scholar at a postsecondary
  educational institution, and a certification of the amount of
  financial support needed, the selection committee annually shall
  recommend to the commissioner [board] that the commissioner [board]
  award a forgivable loan to the scholar in the amount of 50 percent
  of the cost of the scholar's tuition, fees, educational materials,
  and living expenses.
         SECTION 24.  Sections 487.109(b), (c), and (d), Government
  Code, are amended to read as follows:
         (b)  The sponsoring community shall report to the
  commissioner [board] the length of time the scholar practices as a
  health care professional in the community.
         (c)  If the commissioner [board] finds that a sponsoring
  community is not in need of the scholar's services and that the
  community is willing to forgive repayment of the principal balance
  and interest of the scholar's loan, the commissioner [board] by
  rule may provide for the principal balance and interest of one year
  of the scholar's loan to be forgiven for each year the scholar
  practices in another rural community in this state.
         (d)  Any amount of loan principal or interest that is not
  forgiven under this section shall be repaid to the department with
  reasonable collection fees in a timely manner as provided by
  commissioner [board] rule.
         SECTION 25.  Section 487.112, Government Code, is amended to
  read as follows:
         Sec. 487.112.  ADOPTION AND DISTRIBUTION OF RULES. (a) The
  commissioner [board] shall adopt reasonable rules to enforce the
  requirements, conditions, and limitations under this subchapter.
         (b)  The commissioner [board] shall set the rate of interest
  charged on a forgivable loan under this subchapter.
         (c)  The commissioner [board] shall adopt rules necessary to
  ensure compliance with the federal Civil Rights Act of 1964 (42
  U.S.C. Section 2000a et seq.) concerning nondiscrimination in
  admissions.
         SECTION 26.  Section 487.151, Government Code, is amended by
  amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to
  read as follows:
               (1)  "Commissioner" means the commissioner of the
  Department of State Health Services.
               (1-a)  "Department" means the Department of State
  Health Services.
               (1-b)  "Fund" means the health careers education fund.
         SECTION 27.  Section 487.154, Government Code, is amended to
  read as follows:
         Sec. 487.154.  LOANS. (a) The commissioner [board] may
  award forgivable educational loans to eligible students under this
  subchapter.
         (b)  The commissioner [board] may award forgivable loans to
  eligible students based on the availability of money in the fund.
         (c)  If in any year the fund is inadequate to provide loans to
  all eligible students, the commissioner [board] may award
  forgivable loans on a priority basis according to the students'
  academic performance, test scores, and other criteria of
  eligibility.
         SECTION 28.  Section 487.155(a), Government Code, is amended
  to read as follows:
         (a)  To be eligible to receive a loan under this subchapter,
  a student must:
               (1)  be sponsored by an eligible community;
               (2)  at the time of the application for the loan, be
  enrolled in high school or enrolled or accepted for enrollment in a
  postsecondary educational institution in this state;
               (3)  meet academic requirements as established by the
  commissioner [board];
               (4)  plan to complete a health care professional degree
  or certificate program;
               (5)  plan to practice as a health care professional in a
  qualified area of the state; and
               (6)  meet other requirements as established by the
  commissioner [board].
         SECTION 29.  Section 487.156(c), Government Code, is amended
  to read as follows:
         (c)  The commissioner [board] shall determine the percentage
  of educational expenses communities are required to provide under
  this section.
         SECTION 30.  Section 487.157(a), Government Code, is amended
  to read as follows:
         (a)  On confirmation of an eligible student's admission to a
  postsecondary educational institution, or on receipt of an
  enrollment report of the student at a postsecondary educational
  institution, and certification of the amount of financial support
  needed, the commissioner [board] may award a forgivable loan to the
  student in the amount of not more than the cost of the student's
  tuition, fees, educational materials, and living expenses.
         SECTION 31.  Section 487.158(b), Government Code, is amended
  to read as follows:
         (b)  The contract must provide that if the student does not
  provide the required services to the community or provides those
  services for less than the required time, the student is personally
  liable to the state for:
               (1)  the total amount of assistance the student
  receives from the department and the sponsoring community;
               (2)  interest on the total amount at a rate set by the
  commissioner [board]; and
               (3)  the state's reasonable expenses incurred in
  obtaining payment, including reasonable attorney's fees.
         SECTION 32.  Section 487.159(b), Government Code, is amended
  to read as follows:
         (b)  If the commissioner [board] finds that a sponsoring
  community is not in need of the student's services and that the
  community is willing to forgive repayment of the principal balance
  and interest of the student's loan, the commissioner [board] by
  rule may provide for the principal balance and interest of the
  student's loan to be forgiven if the student provides services in
  another qualified area in this state.
         SECTION 33.  Sections 487.161(b) and (c), Government Code,
  are amended to read as follows:
         (b)  The sponsoring community shall report to the
  commissioner [board] the length of time the student provides health
  care services in the community in accordance with the guidelines
  established by the commissioner [board].
         (c)  A postsecondary educational institution shall provide
  to the commissioner [board] a copy of the academic transcript of
  each student for whom the institution has received a release that
  complies with state and federal open records laws and that
  authorizes the provision of the transcript.
         SECTION 34.  Section 487.163, Government Code, is amended to
  read as follows:
         Sec. 487.163.  ADOPTION OF RULES. (a) The commissioner
  [board] shall adopt reasonable rules to enforce the requirements,
  conditions, and limitations of this subchapter.
         (b)  The commissioner [board] shall set the rate of interest
  charged on a forgivable loan under this subchapter.
         (c)  The commissioner [board] shall adopt rules necessary to
  ensure compliance with the federal Civil Rights Act of 1964 (42
  U.S.C. Section 2000a et seq.) concerning nondiscrimination in
  admissions.
         SECTION 35.  Section 487.201, Government Code, is amended by
  amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to
  read as follows:
               (1)  "Commissioner" means the commissioner of the
  Department of State Health Services.
               (1-a)  "Department" means the Department of State
  Health Services.
               (1-b)  "Medically underserved community" means:
                     (A)  a community located in an area in this state
  with a medically underserved population;
                     (B)  a community located in an area in this state
  designated by the United States secretary of health and human
  services as an area with a shortage of personal health services;
                     (C)  a population group designated by the United
  States secretary of health and human services as having a shortage
  of personal health services;
                     (D)  a community designated under state or federal
  law as a medically underserved community; or
                     (E)  a community that the department considers to
  be medically underserved based on relevant demographic,
  geographic, and environmental factors.
         SECTION 36.  Sections 487.202(a), (d), and (e), Government
  Code, are amended to read as follows:
         (a)  The commissioner [board] shall establish and administer
  a program under this subchapter to increase the number of
  physicians providing primary care in medically underserved
  communities.
         (d)  The department may not pay more than $25,000 to a
  community in a fiscal year unless the commissioner [board] makes a
  specific finding of need by the community.
         (e)  The commissioner [board] shall establish priorities so
  that the neediest communities eligible for assistance under this
  subchapter are assured the receipt of a grant.
         SECTION 37.  Section 487.203, Government Code, is amended to
  read as follows:
         Sec. 487.203.  ELIGIBILITY. To be eligible to receive money
  from the department, a medically underserved community must:
               (1)  apply for the money; and
               (2)  provide evidence satisfactory to the commissioner
  [board] that it has entered into an agreement with a physician for
  the physician to provide primary care in the community for at least
  two years.
         SECTION 38.  Section 487.204, Government Code, is amended to
  read as follows:
         Sec. 487.204.  RULES. The commissioner [board] shall adopt
  rules necessary for the administration of this subchapter,
  including rules addressing:
               (1)  eligibility criteria for a medically underserved
  community;
               (2)  eligibility criteria for a physician;
               (3)  minimum and maximum community contributions to the
  start-up money for a physician to be matched with state money;
               (4)  conditions under which state money must be repaid
  by a community or physician;
               (5)  procedures for disbursement of money by the
  department;
               (6)  the form and manner in which a community must make
  its contribution to the start-up money; and
               (7)  the contents of an agreement to be entered into by
  the parties, which must include at least:
                     (A)  a credit check for an eligible physician; and
                     (B)  community retention of interest in any
  property, equipment, or durable goods for seven years.
         SECTION 39.  Section 487.251, Government Code, is amended by
  amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to
  read as follows:
               (1)  "Commissioner" means the commissioner of the
  Department of State Health Services.
               (1-a)  "Department" means the Department of State
  Health Services.
               (1-b)  "Medically underserved area" means an area
  designated by the United States secretary of health and human
  services as having:
                     (A)  a shortage of personal health services or a
  population group that has such a shortage as provided by 42 U.S.C.
  Section 300e-1(7); or
                     (B)  a health professional shortage as provided by
  42 U.S.C. Section 254e(a)(1).
         SECTION 40.  Section 487.252, Government Code, is amended to
  read as follows:
         Sec. 487.252.  TEXAS HEALTH SERVICE CORPS PROGRAM. (a) The
  commissioner [board] shall establish a program in the department to
  assist communities in recruiting and retaining physicians to
  practice in medically underserved areas.
         (b)  The commissioner [board] by rule shall establish:
               (1)  eligibility criteria for applicants;
               (2)  stipend application procedures;
               (3)  guidelines relating to stipend amounts;
               (4)  procedures for evaluating stipend applications;
  and
               (5)  a system of priorities relating to the:
                     (A)  geographic areas covered;
                     (B)  medical specialties eligible to receive
  funding under the program; and
                     (C)  level of stipend support.
         SECTION 41.  Section 487.253(a), Government Code, is amended
  to read as follows:
         (a)  The commissioner [board] shall adopt rules necessary to
  administer this subchapter, and the department shall administer the
  program in accordance with those rules.
         SECTION 42.  Section 487.301, Government Code, is amended by
  amending Subdivision (1) and adding Subdivision (1-a) to read as
  follows:
               (1)  "Department" means the Department of State Health
  Services.
               (1-a)  "Public hospital" means a general or special
  hospital licensed under Chapter 241, Health and Safety Code, that
  is owned or operated by a municipality, county, municipality and
  county, hospital district, or hospital authority and that performs
  inpatient or outpatient services.
         SECTION 43.  Subchapter I, Chapter 487, Government Code, is
  amended by adding Section 487.3511 to read as follows:
         Sec. 487.3511.  DEFINITIONS. In this subchapter:
               (1)  "Board" means the governing board of the Texas
  Department of Housing and Community Affairs.
               (2)  "Department" means the Texas Department of Housing
  and Community Affairs.
         SECTION 44.  Section 487.401, Government Code, is amended to
  read as follows:
         Sec. 487.401.  ADMINISTRATION. (a) In this section:
               (1)  "Commissioner" means the commissioner of the
  Department of State Health Services.
               (2)  "Department" means the Department of State Health
  Services.
         (b)  The commissioner [board] shall adopt rules that
  establish a procedure for designating a hospital as a rural
  hospital in order for the hospital to qualify for federal funds
  under 42 C.F.R. Part 412.
         (c) [(b)]  At the hospital's request, the department shall
  designate the hospital as a rural hospital if the hospital meets the
  requirements for a rural hospital under the commissioner's
  [board's] rules.
         SECTION 45.  Section 487.451, Government Code, is amended by
  amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to
  read as follows:
               (1)  "Commissioner" means the commissioner of the
  Department of State Health Services.
               (1-a)  "Department" means the Department of State
  Health Services.
               (1-b)  "Health care professional" means:
                     (A)  an advanced nurse practitioner;
                     (B)  a dentist;
                     (C)  a dental hygienist;
                     (D)  a laboratory technician;
                     (E)  a licensed vocational nurse;
                     (F)  a licensed professional counselor;
                     (G)  a medical radiological technologist;
                     (H)  an occupational therapist;
                     (I)  a pharmacist;
                     (J)  a physical therapist;
                     (K)  a physician;
                     (L)  a physician assistant;
                     (M)  a psychologist;
                     (N)  a registered nurse;
                     (O)  a social worker;
                     (P)  a speech-language pathologist;
                     (Q)  a veterinarian;
                     (R)  a chiropractor; and
                     (S)  another appropriate health care professional
  identified by the board.
         SECTION 46.  Section 487.452(a), Government Code, is amended
  to read as follows:
         (a)  The commissioner [board], in collaboration with Area
  Health Education Center Programs, shall establish a community
  health care [healthcare] awareness and mentoring program for
  students to:
               (1)  identify high school students in rural and
  underserved urban areas who are interested in serving those areas
  as health care professionals;
               (2)  identify health care professionals in rural and
  underserved urban areas to act as positive role models, mentors, or
  reference resources for the interested high school students;
               (3)  introduce interested high school students to the
  spectrum of professional health care careers through activities
  such as health care camps and shadowing of health care
  professionals;
               (4)  encourage a continued interest in service as
  health care professionals in rural and underserved urban areas by
  providing mentors and community resources for students
  participating in training or educational programs to become health
  care professionals; and
               (5)  provide continuing community-based support for
  students during the period the students are attending training or
  educational programs to become health care professionals,
  including summer job opportunities and opportunities to mentor high
  school students in the community.
         SECTION 47.  Section 487.454, Government Code, is amended to
  read as follows:
         Sec. 487.454.  GRANTS; ELIGIBILITY. (a) Subject to
  available funds, the commissioner [board] shall develop and
  implement, as a component of the program, a grant program to support
  employment opportunities in rural and underserved urban areas in
  this state for students participating in training or educational
  programs to become health care professionals.
         (b)  In awarding grants under the program, the commissioner
  [board] shall give first priority to grants to training or
  educational programs that provide internships to students.
         (c)  To be eligible to receive a grant under the grant
  program, a person must:
               (1)  apply for the grant on a form adopted by the
  commissioner [board];
               (2)  be enrolled or intend to be enrolled in a training
  or educational program to become a health care professional;
               (3)  commit to practice or work, after licensure as a
  health care professional, for at least one year as a health care
  professional in a rural or underserved urban area in this state; and
               (4)  comply fully with any practice or requirements
  associated with any scholarship, loan, or other similar benefit
  received by the student.
         (d)  As a condition of receiving a grant under the program
  the student must agree to repay the amount of the grant, plus a
  penalty in an amount established by rule of the commissioner
  [board] not to exceed two times the amount of the grant, if the
  student becomes licensed as a health care professional and fails to
  practice or work for at least one year as a health care professional
  in a rural or underserved urban area in this state.
         SECTION 48.  Section 487.501, Government Code, is amended by
  amending Subdivision (1) and adding Subdivision (1-a) to read as
  follows:
               (1)  "Department" means the Department of State Health
  Services.
               (1-a)  "Rural community" means a rural area as defined
  by the department.
         SECTION 49.  Section 487.551, Government Code, is amended by
  amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to
  read as follows:
               (1)  "Commissioner" means the commissioner of the
  Department of State Health Services.
               (1-a)  "Department" means the Department of State
  Health Services.
               (1-b)  "Health professional" means a person other than
  a physician who holds a license, certificate, registration, permit,
  or other form of authorization required by law or a state agency
  rule that must be obtained by an individual to practice in a health
  care profession.
         SECTION 50.  Section 487.553, Government Code, is amended to
  read as follows:
         Sec. 487.553.  LOAN REIMBURSEMENT PROGRAM. The commissioner
  [board] shall establish a program in the department to assist
  communities in recruiting health professionals to practice in
  medically underserved communities by providing loan reimbursement
  for health professionals who serve in those communities.
         SECTION 51.  Section 487.554(a), Government Code, is amended
  to read as follows:
         (a)  The commissioner [board] shall establish a program in
  the department to assist communities in recruiting health
  professionals to practice in medically underserved communities by
  providing a stipend to health professionals who agree to serve in
  those communities.
         SECTION 52.  Section 487.555(e), Government Code, is amended
  to read as follows:
         (e)  A contract under this section must provide that a health
  professional who does not provide the required services to the
  community or provides those services for less than the required
  time is personally liable to the state for:
               (1)  the total amount of assistance the health
  professional received from the department and the medically
  underserved community;
               (2)  interest on the amount under Subdivision (1) at a
  rate set by the commissioner [board];
               (3)  the state's reasonable expenses incurred in
  obtaining payment, including reasonable attorney's fees; and
               (4)  a penalty as established by the commissioner
  [board] by rule to help ensure compliance with the contract.
         SECTION 53.  Section 487.556, Government Code, is amended to
  read as follows:
         Sec. 487.556.  POWERS AND DUTIES OF DEPARTMENT. (a) The
  commissioner [board] shall adopt rules necessary for the
  administration of this subchapter, including guidelines for:
               (1)  developing contracts under which loan
  reimbursement or stipend recipients provide services to qualifying
  communities;
               (2)  identifying the duties of the state, state agency,
  loan reimbursement or stipend recipient, and medically underserved
  community under the loan reimbursement or stipend contract;
               (3)  determining a rate of interest to be charged under
  Section 487.555(e)(2);
               (4)  ensuring that a loan reimbursement or stipend
  recipient provides access to health services to participants in
  government-funded health benefits programs in qualifying
  communities;
               (5)  encouraging the use of telecommunications or
  telemedicine, as appropriate;
               (6)  prioritizing the provision of loan reimbursements
  and stipends to health professionals who are not eligible for any
  other state loan forgiveness, loan repayment, or stipend program;
               (7)  prioritizing the provision of loan reimbursements
  and stipends to health professionals who are graduates of health
  professional degree programs in this state;
               (8)  encouraging a medically underserved community
  served by a loan reimbursement or stipend recipient to contribute
  to the cost of the loan reimbursement or stipend when making a
  contribution is feasible; and
               (9)  requiring a medically underserved community
  served by a loan reimbursement or stipend recipient to assist the
  department in contracting with the loan reimbursement or stipend
  recipient who will serve that community.
         (b)  The commissioner [board] by rule may designate areas of
  the state as medically underserved communities.
         (c)  The commissioner [board] shall make reasonable efforts
  to contract with health professionals from a variety of different
  health professions.
         SECTION 54.  Section 487.601, Government Code, is amended by
  amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to
  read as follows:
               (1)  "Commissioner" means the commissioner of the
  Department of State Health Services.
               (1-a)  "Department" means the Department of State
  Health Services.
               (1-b)  "Physician" means a person licensed to practice
  medicine in this state under Subtitle B, Title 3, Occupations Code.
         SECTION 55.  Section 487.608(a), Government Code, is amended
  to read as follows:
         (a)  The rural physician relief advisory committee is
  composed of the following members appointed by the commissioner
  [board]:
               (1)  a physician who practices in the area of general
  family medicine in a rural county;
               (2)  a physician who practices in the area of general
  internal medicine in a rural county;
               (3)  a physician who practices in the area of general
  pediatrics in a rural county;
               (4)  a representative from an accredited Texas medical
  school;
               (5)  a program director from an accredited primary care
  residency program;
               (6)  a representative from the Texas Higher Education
  Coordinating Board; and
               (7)  a representative from the Texas Medical Board.
         SECTION 56.  Section 487.651, Government Code, is amended by
  adding Subdivision (1-a) to read as follows:
               (1-a)  "Department" means the Texas Department of
  Housing and Community Affairs.
         SECTION 57.  Subchapter P, Chapter 487, Government Code, is
  amended by adding Section 487.7011 to read as follows:
         Sec. 487.7011.  DEFINITION. In this subchapter,
  "department" means the Texas Department of Housing and Community
  Affairs.
         SECTION 58.  Section 487.751, Government Code, is amended to
  read as follows:
         Sec. 487.751.  DEFINITIONS [DEFINITION]. In this
  subchapter:
               (1)  "Department" means the Texas Department of Housing
  and Community Affairs.
               (2)  "Rural [, "rural] county" means a county that has a
  population of not more than 125,000.
         SECTION 59.  Section 490A.003(a), Government Code, is
  amended to read as follows:
         (a)  The founding members of the network are:
               (1)  the Texas AgriLife [Cooperative] Extension
  Service of The Texas A&M University System;
               (2)  the IC2 Institute at The University of Texas at
  Austin;
               (3)  the College of Agricultural Sciences and Natural
  Resources at Texas Tech University;
               (4)  the Department of Agriculture;
               (5)  the Texas Workforce Commission;
               (6)  the Texas Department of Housing and Community
  [Rural] Affairs;
               (7)  the Texas Center for Rural Entrepreneurship;
               (8)  the Texas Economic Development Council;
               (9)  CoSERVE at The University of Texas--Pan American;
               (10)  the office of external affairs at Texas Southern
  University; and
               (11)  the John F. Baugh Center for Entrepreneurship at
  Baylor University.
         SECTION 60.  Section 531.02172(b), Government Code, is
  amended to read as follows:
         (b)  The advisory committee must include:
               (1)  representatives of health and human services
  agencies and other state agencies concerned with the use of
  telemedical consultations in the Medicaid program and the state
  child health plan program, including representatives of:
                     (A)  the commission;
                     (B)  the Department of State Health Services;
                     (C)  [the Texas Department of Rural Affairs;
                     [(D)]  the Texas Department of Insurance;
                     (D) [(E)]  the Texas Medical Board;
                     (E) [(F)]  the Texas Board of Nursing; and
                     (F) [(G)]  the Texas State Board of Pharmacy;
               (2)  representatives of health science centers in this
  state;
               (3)  experts on telemedicine, telemedical
  consultation, and telemedicine medical services or telehealth
  services; and
               (4)  representatives of consumers of health services
  provided through telemedical consultations and telemedicine
  medical services or telehealth services.
         SECTION 61.  Section 535.051(b), Government Code, is amended
  to read as follows:
         (b)  The chief administrative officer of each of the
  following state agencies, in consultation with the governor, shall
  designate one employee from the agency to serve as a liaison for
  faith- and community-based organizations:
               (1)  [the Office of Rural Community Affairs;
               [(2)]  the Texas Commission on Environmental Quality;
               (2) [(3)]  the Texas Department of Criminal Justice;
               (3) [(4)]  the Texas Department of Housing and
  Community Affairs;
               (4) [(5)]  the Texas Education Agency;
               (5) [(6)]  the Texas Juvenile Probation Commission;
               (6) [(7)]  the Texas Veterans Commission;
               (7) [(8)]  the Texas Workforce Commission;
               (8) [(9)]  the Texas Youth Commission; and
               (9) [(10)]  other state agencies as determined by the
  governor.
         SECTION 62.  Section 614.152(3), Government Code, is amended
  to read as follows:
               (3)  "State fire agency" means the:
                     (A)  firefighters' pension commissioner;
                     (B)  [Texas] Department of State Health Services
  [Rural Affairs];
                     (C)  service;
                     (D)  Texas Commission on Fire Protection;
                     (E)  Texas Engineering Extension Service of The
  Texas A&M University System; and
                     (F)  Texas State Fire Marshal's Office of the
  Texas Department of Insurance.
         SECTION 63.  Section 772.011(b), Government Code, is amended
  to read as follows:
         (b)  The work group is composed of the heads of the following
  agencies or their designees:
               (1)  the [Texas] Department of Agriculture [Rural
  Affairs];
               (2)  the Texas Department of Housing and Community
  Affairs;
               (3)  the Texas Water Development Board;
               (4)  the Texas Department of Transportation;
               (5)  the Texas Commission on Environmental Quality;
               (6)  the Texas Workforce Commission;
               (7)  the Department of State Health Services;
               (8)  the Health and Human Services Commission;
               (9)  the General Land Office;
               (10)  the Texas Education Agency;
               (11)  the Texas Economic Development and Tourism
  Office;
               (12)  the Office of State-Federal Relations;
               (13)  the Texas Higher Education Coordinating Board;
               (14)  the attorney general's office;
               (15)  the secretary of state's office;
               (16)  the Department of Public Safety; and
               (17)  the Railroad Commission of Texas.
         SECTION 64.  Section 775.002(d), Government Code, is amended
  to read as follows:
         (d)  The following agencies shall designate an officer or
  employee of the agency to serve as the agency's liaison for colonia
  initiatives:
               (1)  the office of the attorney general;
               (2)  the Department of State Health Services;
               (3)  the Texas Department of Housing and Community
  Affairs;
               (4)  the Texas Commission on Environmental Quality;
               (5)  the Texas Water Development Board;
               (6)  [the Texas Department of Rural Affairs;
               [(7)]  the Office of State-Federal Relations;
               (7) [(8)] the Texas Department of Insurance; and
               (8) [(9)]  the Texas Department of Transportation.
         SECTION 65.  Section 2306.034(b), Government Code, is
  amended to read as follows:
         (b)  A person may not be a member of the board and may not be a
  department employee employed in a "bona fide executive,
  administrative, or professional capacity," as that phrase is used
  for purposes of establishing an exemption to the overtime
  provisions of the federal Fair Labor Standards Act of 1938 (29
  U.S.C. Section 201 et seq.) if:
               (1)  the person is an officer, employee, or paid
  consultant of a Texas trade association in the field of rural
  affairs, banking, real estate, housing development, or housing
  construction; or
               (2)  the person's spouse is an officer, manager, or paid
  consultant of a Texas trade association in the field of rural
  affairs, banking, real estate, housing development, or housing
  construction.
         SECTION 66.  Section 2306.1092(b), Government Code, is
  amended to read as follows:
         (b)  The council is composed of 15 [16] members consisting
  of:
               (1)  the director;
               (2)  one representative from each of the following
  agencies, appointed by the head of that agency:
                     (A)  [the Office of Rural Community Affairs;
                     [(B)]  the Texas State Affordable Housing
  Corporation;
                     (B) [(C)]  the Health and Human Services
  Commission;
                     (C) [(D)]  the Department of Assistive and
  Rehabilitative Services;
                     (D) [(E)]  the Department of Aging and Disability
  Services; and
                     (E) [(F)]  the Department of State Health
  Services;
               (3)  one representative from the Department of
  Agriculture who is:
                     (A)  knowledgeable about the Texans Feeding
  Texans and Retire in Texas programs or similar programs; and
                     (B)  appointed by the head of that agency;
               (4)  one member who is:
                     (A)  a member of the Health and Human Services
  Commission Promoting Independence Advisory Committee; and
                     (B)  appointed by the governor; and
               (5)  one representative from each of the following
  interest groups, appointed by the governor:
                     (A)  financial institutions;
                     (B)  multifamily housing developers;
                     (C)  health services entities;
                     (D)  nonprofit organizations that advocate for
  affordable housing and consumer-directed long-term services and
  support;
                     (E)  consumers of service-enriched housing;
                     (F)  advocates for minority issues; and
                     (G)  rural communities.
         SECTION 67.  Section 86.011, Health and Safety Code, is
  amended to read as follows:
         Sec. 86.011.  BREAST CANCER SCREENING. (a) In this section,
  "department" means the Department of State Health Services.
         (b)  The department [Texas Department of Rural Affairs] may
  provide for breast cancer screening in counties with a population
  of 50,000 or less.
         (c) [(b)]  The department [Texas Department of Rural
  Affairs] may provide the breast cancer screening through contracts
  with public or private entities to provide mobile units and on-site
  screening services.
         [(c)     The Texas Department of Rural Affairs shall coordinate
  the breast cancer screening with programs administered by the Texas
  Cancer Council.]
         SECTION 68.  Sections 775.083(a), (b), and (c), Health and
  Safety Code, are amended to read as follows:
         (a)  On or before January 1 of each year, a district shall
  file with the [Texas] Department of State Health Services [Rural
  Affairs] an annual report that includes the following:
               (1)  the district's name;
               (2)  the name of each county in which the district is
  located;
               (3)  the district's business address;
               (4)  the name, mailing address, and term of office of
  each commissioner;
               (5)  the name, mailing address, and term of office of
  the district's general manager, executive director, and fire chief;
               (6)  the name of each legal counsel or other consultant
  for the district; and
               (7)  the district's annual budget and tax rate for the
  preceding fiscal year.
         (b)  The [Texas] Department of State Health Services [Rural
  Affairs] may not charge a fee for filing the report.
         (c)  The [Texas] Department of State Health Services [Rural
  Affairs] shall develop and maintain an Internet-based system that
  enables:
               (1)  a district to securely file the report and update
  the district's information; and
               (2)  the public to view, in a searchable format, the
  reports filed by districts under this section.
         SECTION 69.  Sections 776.083(a), (b), and (c), Health and
  Safety Code, are amended to read as follows:
         (a)  On or before January 1 of each year, a district shall
  file with the [Texas] Department of State Health Services [Rural
  Affairs] an annual report that includes the following:
               (1)  the district's name;
               (2)  the name of each county in which the district is
  located;
               (3)  the district's business address;
               (4)  the name, mailing address, and term of office of
  each commissioner;
               (5)  the name, mailing address, and term of office of
  the district's general manager, executive director, and fire chief;
               (6)  the name of each legal counsel or other consultant
  for the district; and
               (7)  the district's annual budget and tax rate for the
  preceding fiscal year.
         (b)  The [Texas] Department of State Health Services [Rural
  Affairs] may not charge a fee for filing the report.
         (c)  The [Texas] Department of State Health Services [Rural
  Affairs] shall develop and maintain an Internet-based system that
  enables:
               (1)  a district to securely file the report and update
  the district's information; and
               (2)  the public to view, in a searchable format, the
  reports filed by districts under this section.
         SECTION 70.  Section 204.104, Occupations Code, is amended
  to read as follows:
         Sec. 204.104.  RURAL PHYSICIAN ASSISTANT LOAN REIMBURSEMENT
  PROGRAM. (a) In this section, "department" means the Department of
  State Health Services.
         (b)  A program shall be established to provide student loan
  reimbursement for graduates of physician assistant training
  programs from any state who practice in rural health professional
  shortage areas and medically underserved areas identified by the
  department [Texas Department of Health]. The physician assistant
  board shall fund the program by designating annually a portion of
  the revenue generated under this chapter from physician assistant
  licensing fees.
         (c) [(b)]  The department [Texas Department of Rural
  Affairs] shall establish policies for and adopt rules to administer
  the loan program.
         (d) [(c)]  The physician assistant board shall authorize and
  the medical board shall transfer annually the funds designated
  under Subsection (b) [(a)] to the department [Texas Department of
  Rural Affairs] to administer the loan program.
         SECTION 71.  The following provisions are repealed:
               (1)  Section 12.040(f), Agriculture Code;
               (2)  Subchapter A, Chapter 487, Government Code;
               (3)  Subchapter B, Chapter 487, Government Code;
               (4)  Section 487.052, Government Code;
               (5)  Section 487.055, Government Code; and
               (6)  Section 487.058, Government Code.
         SECTION 72.  (a) On September 1, 2011, or as soon as
  practicable after that date, the Texas Department of Rural Affairs,
  Texas Department of Housing and Community Affairs, Department of
  State Health Services, and Department of Agriculture shall enter
  into a memorandum of understanding that provides a comprehensive
  plan to ensure the orderly transition of all programs operated by
  the Texas Department of Rural Affairs to those agencies. The
  memorandum of understanding must provide for:
               (1)  the transfer of the community development block
  grant nonentitlement program to the Texas Department of Housing and
  Community Affairs;
               (2)  the transfer of the rural health programs to the
  Department of State Health Services; and
               (3)  the transfer of the renewable energy demonstration
  pilot program and the desalination program to the Department of
  Agriculture.
         (b)  This section takes effect September 1, 2011.
         SECTION 73.  (a)  On the effective date of this Act, the
  Texas Department of Rural Affairs is abolished and all powers,
  duties, obligations, rights, contracts, bonds, appropriations,
  records, property, and personnel of those agencies are transferred
  to the Texas Department of Housing and Community Affairs,
  Department of State Health Services, and Department of Agriculture
  as provided for in the memorandum of understanding described by
  Section 72 of this Act.
         (b)  A rule, policy, procedure, or decision of the Texas
  Department of Rural Affairs continues in effect as a rule, policy,
  procedure, or decision of the Texas Department of Housing and
  Community Affairs, Department of State Health Services, or
  Department of Agriculture, as appropriate, until superseded by an
  act of that agency.
         SECTION 74.  Except as otherwise provided by this Act, this
  Act takes effect September 1, 2012.
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