Enrolled Bill Summary

            House Bill 1945 amends the Education Code to create the permanent health fund for higher education, separate permanent endowment funds for specified institutions of higher education, a permanent fund for minority health research and education, and a permanent fund for higher education nursing, allied health, and other health-related programs. All funds are created in the treasury outside the general revenue fund. The act transfers $350 million, $570 million, $25 million, and $45 million, respectively, to the funds from tobacco lawsuit settlement money. It transfers $1 million to the Texas Higher Education Coordinating Board to fund the Institute of Metabolic Disease. The funds may also be appropriated for federal recoupment, if any, of settlement money. The act sets reporting requirements for each fund.

            The permanent health fund for higher education supports nine specified medical schools and health sciences centers affiliated with The University of Texas, Texas A&M University, the University of North Texas, and Texas Tech University, and also supports the Baylor College of Medicine, provided that certain contractual conditions are met. Seventy percent of available money is to be distributed in equal amounts, by legislative appropriation, to the participating institutions. Three allotments of 10 percent each are allocated among the same institutions based on their proportionate spending for instruction, research, and unsponsored charity care during the preceding biennium. Fund appropriations may be used only for programs that benefit medical research, health education, or treatment programs.

            The separate endowment funds cover generally the same institutions but add The University of Texas at El Paso and the regional academic health center in the Lower Rio Grande Valley. The act allocates the $570 million in express amounts, rather than by formula, and divides the Texas Tech allocation between its health sciences center component in El Paso and components elsewhere. Fund appropriations may be used only for research and other programs of the recipient institution that benefit the public health. Special provisions apply to the use of appropriations for designated institutions.

            The permanent fund for minority health and research education is a grants program. Appropriations are to the coordinating board to provide support to institutions of higher education that conduct research or educational programs that address minority health issues or form partnerships to do so. The last fund is also a grants program, with appropriations to the coordinating board to provide support to public institutions of higher education that offer upper-level academic instruction and training in the field of nursing, allied health, or other health-related education. Institutions and components eligible for funding from the first two types of permanent funds are ineligible for this program.