AN ACT

 1-1     relating to the establishment and operation of a regional academic

 1-2     health center by The University of Texas System.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Chapter 74, Education Code, is amended by adding

 1-5     Subchapter L to read as follows:

 1-6                   SUBCHAPTER L.  LOWER RIO GRANDE VALLEY

 1-7                           ACADEMIC HEALTH CENTER

 1-8           Sec. 74.611.  AUTHORITY TO ESTABLISH OR PARTICIPATE IN

 1-9     CENTER.  (a)  The board of regents of The University of Texas

1-10     System may establish a regional academic health center serving

1-11     Cameron, Hidalgo, Starr, and Willacy counties, and may include any

1-12     medical institutions for participation in the program in the

1-13     aforementioned counties, if general revenue funds are specifically

1-14     appropriated by the legislature for that purpose.  The center may

1-15     consist of facilities located throughout the region.  The board may

1-16     execute and carry out affiliation or coordination agreements with

1-17     any other entity or institution in the region to establish or to

1-18     participate in the establishment or operation of the center, which

1-19     includes all traditional and all other providers of health services

1-20     to the counties listed in this subsection.

1-21           (b)  The board of regents may assign responsibility for the

1-22     management of the regional academic health center to any component

1-23     institution or institutions of The University of Texas System.  The

 2-1     operating costs of the regional academic health center shall be

 2-2     paid from operating funds of the component institution and from

 2-3     available funds of any other public or private entity.

 2-4           (c)  The regional academic health center may be used to

 2-5     provide undergraduate clinical education, graduate education,

 2-6     including residency training programs, or other levels of medical

 2-7     education work in the counties identified in Subsection (a) in

 2-8     connection with any component institution or institutions of The

 2-9     University of Texas System as the board of regents determines

2-10     appropriate.

2-11           Sec. 74.612.  GIFTS AND GRANTS.  The board of regents may

2-12     accept and administer gifts and grants from any public or private

2-13     person or entity for the use and benefit of the regional academic

2-14     health center.

2-15           Sec. 74.613.  FACILITIES.  The physical facilities of the

2-16     regional academic health center used in its teaching and research

2-17     programs, including libraries, auditoriums, research facilities,

2-18     and medical education buildings, may be provided by a public or

2-19     private entity.  A physical facility may be constructed,

2-20     maintained, or operated with state money appropriated for that

2-21     purpose.

2-22           Sec. 74.614.  TEACHING HOSPITAL.  A teaching hospital

2-23     considered suitable by the board of regents may be provided by a

2-24     public or private entity.  The hospital may not be constructed,

2-25     maintained, or operated with state funds.

 3-1           Sec. 74.615.  COORDINATING BOARD SUPERVISION.  The regional

 3-2     academic health center is subject to the continuing supervision of

 3-3     the Texas Higher Education Coordinating Board under Chapter 61 and

 3-4     to the rules of the coordinating board adopted under Chapter 61.

 3-5           SECTION 2.  Not later than May 31, 1998, the Texas Higher

 3-6     Education Coordinating Board shall prepare an impact statement

 3-7     examining the initial implementation of this Act and shall deliver

 3-8     a copy of the statement to the board of regents of The University

 3-9     of Texas System and to the chairs of the standing committees of

3-10     each house of the legislature with primary jurisdiction over higher

3-11     education.

3-12           SECTION 3.  This Act takes effect September 1, 1997.

3-13           SECTION 4.  The importance of this legislation and the

3-14     crowded condition of the calendars in both houses create an

3-15     emergency and an imperative public necessity that the

3-16     constitutional rule requiring bills to be read on three several

3-17     days in each house be suspended, and this rule is hereby suspended.

                                                                S.B. No. 606

         ________________________________   ________________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 606 passed the Senate on

         April 15, 1997, by a viva-voce vote; May 13, 1997, Senate refused

         to concur in House amendment and requested appointment of

         Conference Committee; May 14, 1997, House granted request of the

         Senate; May 24, 1997, Senate adopted Conference Committee Report by

         the following vote:  Yeas 30, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 606 passed the House, with

         amendment, on May 7, 1997, by a non-record vote; May 14, 1997,

         House granted request of the Senate for appointment of Conference

         Committee; May 24, 1997, House adopted Conference Committee Report

         by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         ________________________________

                      Date

         ________________________________

                    Governor