accredited college or university operating in accordance with a
memorandum of understanding with this state under an executive
order issued by the governor.
       SECTION 2.  Section 61.655, Education Code, is amended to
read as follows:
       Sec. 61.655.  PURPOSE; ELIGIBILITY. (a) A scholarship
program[, matching fund program,] or loan repayment program
established under this subchapter shall be established and
administered in a manner that the board determines best promotes
the health care and educational needs of this state.
       (b)  The board may establish multiple categories of persons
to receive scholarships[, matching funds,] and loan repayments.
The board may include faculty from professional nursing programs
with master's degrees or doctorates among the categories of persons
authorized to receive loan repayments.
       (c)  Each year funds are available, the board shall establish
the categories of persons eligible to receive scholarships[,
matching funds,] and loan repayments and the criteria for selecting
persons to be assisted under each category. The criteria:
             (1)  must include that the person be enrolled in, or
have outstanding student loans for education received at, as
applicable to the program:
                   (A)  an institution of higher education; 
                   (B)  a private or independent institution of
higher education; or
                   (C)  a nonprofit college or university described
                   (A) [(1)]  scholastic ability and performance;
                   (C) [(3)]  the geographical area in which the
person is likely to practice;
                   (D) [(4)]  whether the person receives Temporary
Assistance for Needy Families [Aid to Families with Dependent
Children] or participates in another public welfare program;
                   (E) [(5)]  employment by a state agency;
                   (F) [(6)]  employment on a nursing school faculty
or a person's intention to seek employment on a nursing school
faculty;
                   (G) [(7)]  whether the person is practicing in a
geographical area, a practice setting, or an area of practice with
an acute nursing shortage or is likely to practice in such an area;
                   (H) [(8)]  the type of certificate or academic
degree held or pursued; or
                   (I) [(9)]  any additional factors the board
considers relevant to promoting the health care and educational
needs of the state.
       SECTION 3.  Section 61.656, Education Code, is amended by
amending Subsection (d) and adding Subsection (e) to read as
follows:
       (d)  The board shall distribute information about the
scholarship program[, matching fund program,] and loan repayment
program established under this subchapter to:
             (1)  employers of registered nurses or licensed