(a) The board may solicit proposals for pilot programs designed to evaluate the efficacy and effect on protection of the public of reporting systems designed to encourage identification of system errors.
(b) The board may grant a pilot program approved under this section an exception to the mandatory reporting requirements of Sections 301.401-301.409 or to a rule adopted under this chapter or Chapter 303 that relates to the practice of nursing, including education and reporting requirements for nurses. If the board grants an exception, the board may require that the program:
(1) provide for the remediation of the deficiencies of a nurse who has knowledge or skill deficiencies that unless corrected may result in an unreasonable risk to public safety;
(2) provide for supervision of the nurse during remediation of deficiencies under Subdivision (1);
(3) require reporting to the board of a nurse:
(A) who fails to satisfactorily complete remediation, or who does not make satisfactory progress in remediation, under Subdivision (1);
(B) whose incompetence in the practice of nursing would pose a continued risk of harm to the public; or
(C) whose error contributed to a patient death or serious patient injury; or
(4) provide for a nursing peer review committee to review whether a nurse is appropriate for remediation under Subdivision (1).

(c) The board may require that the entity conducting a pilot program under this section reimburse the board for the cost of monitoring and evaluating the pilot program.
(d) The board may contract with a third party to perform the monitoring and evaluation.
(e) The board may limit the number of pilot programs that it approves under this section.