Amend HB 1676 on third reading as follows:
      (1)  IN SECTION 1, add Section 403.107 to read as follows:
      "Sec. 403.107. COMMUNITY HOSPITAL CAPITAL IMPROVEMENT FUND.
(a) The community hospital capital improvement fund is a special
fund in the state treasury outside the general revenue fund. The
fund is composed of:
            (1)  money transferred to the fund at the direction of
the legislature;
            (2)  payment of interest and principal on loans and
fees collected under this section;
            (3)  gifts and grants contributed to the fund; and
            (4)  the interest received from investment of money in
the fund.
      (b)  Except as provided by Subsections (c), (d), and (e), the
money in the fund may not be appropriated for any purpose.
      (c)  The interest received from the investment of the fund
may be appropriated to the Texas Department of Health for the
purpose of providing grants, loans or loan guarantees to public or
nonprofit community hospitals with 125 beds or fewer located in an
urban area of the state.
      (d)  The comptroller may solicit and accept gifts and grants
to the fund. A gift or grant to the fund may be appropriated in the
same manner as the interest received from investment of the fund,
subject to any limitation or requirement placed on the gift or
grant by the donor or granting entity.
      (e)  Money in the fund may also be appropriated to pay any
amount of money that the federal government determines that the
state should repay to the federal government or that the federal
government should recoup from the state in the event of national
legislation regarding the subject matter of the case styled The
State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91,
in the United States District court, Eastern District of Texas.
      (f)  The Texas Board of Health may adopt rules governing any
grant, loan, or loan guarantee program established under this
section.
      (g)  A hospital eligible to receive a grant, loan or loan
guarantee under Chapter 106, Subchapter G, Health and Safety Code,
as added by this Act, is not eligible to receive a grant, loan or
loan guarantee under this section.
      (h)  Sections 403.095 and 404.071 fo not apply to the fund."
      (2)  In SECTION 3, Subsection (2), strike the number "$150"
and substitute the number "$125".
      (3)  In SECTION 3, add Subsection (5) to read as follows:
      "(5)  $25 million from the general revenue fund to the
community hospital capital improvement fund established by Section
403.107, Government Code, as added by this Act."