By Junell, Cuellar, Turner of Coleman, Cook, H.B. No. 1676 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to permanent funds for certain public health purposes. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter G, Chapter 403, Government Code, is 1-5 amended by adding Sections 403.105, 403.1055, 403.106, 403.1065, 1-6 403.1067, and 403.108 to read as follows: 1-7 Sec. 403.105. PERMANENT FUND FOR TOBACCO EDUCATION AND 1-8 ENFORCEMENT. (a) The permanent fund for tobacco education and 1-9 enforcement is a special fund in the state treasury outside the 1-10 general revenue fund. The fund is composed of: 1-11 (1) money transferred to the fund at the direction of 1-12 the legislature; 1-13 (2) gifts and grants contributed to the fund; and 1-14 (3) the interest received from investment of money in 1-15 the fund. 1-16 (b) Except as provided by Subsections (c), (e), and (f), 1-17 money in the fund may not be appropriated for any purpose. 1-18 (c) The interest received from investment of the fund may be 1-19 appropriated to the Texas Department of Health for programs to 1-20 reduce the use of cigarettes and tobacco products in this state, 1-21 including: 1-22 (1) smoking cessation programs; 1-23 (2) enforcement of Subchapters H, K, and N, Chapter 1-24 161, Health and Safety Code, or other laws relating to distribution 1-25 of cigarettes or tobacco products to minors or use of cigarettes or 2-1 tobacco products by minors; 2-2 (3) public awareness programs relating to use of 2-3 cigarettes and tobacco products, including general educational 2-4 programs and programs directed toward youth; and 2-5 (4) specific programs for communities traditionally 2-6 targeted, by advertising and other means, by companies that sell 2-7 cigarettes or tobacco products. 2-8 (d) Subject to any applicable limit in the General 2-9 Appropriations Act, the Texas Department of Health may contract 2-10 with another entity to perform all or a part of the functions 2-11 described by Subsection (c) or may award grants to community 2-12 organizations, public institutions of higher education, as that 2-13 term is defined by Section 61.003, Education Code, or political 2-14 subdivisions to enable the organizations, institutions, or 2-15 political subdivisions to perform all or a part of those functions. 2-16 To ensure the most efficient, effective, and rapid delivery of 2-17 services, the Texas Board of Health shall give high priority and 2-18 preference to existing, effective state programs that do not 2-19 otherwise receive money from an endowment program funded by money 2-20 received under the Comprehensive Settlement Agreement and Release 2-21 filed in the case styled The State of Texas v. The American Tobacco 2-22 Co., et al., No. 5-96CV-91, in the United States District Court, 2-23 Eastern District of Texas. The board may adopt rules governing any 2-24 grant program established under this section. 2-25 (e) The comptroller may solicit and accept gifts and grants 2-26 to the fund. A gift or grant to the fund may be appropriated in 2-27 the same manner as the interest received from investment of the 3-1 fund, subject to any limitation or requirement placed on the gift 3-2 or grant by the donor or granting entity. 3-3 (f) Money in the fund may also be appropriated to pay any 3-4 amount of money that the federal government determines that the 3-5 state should repay to the federal government or that the federal 3-6 government should recoup from the state in the event of national 3-7 legislation regarding the subject matter of the case styled The 3-8 State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91, 3-9 in the United States District Court, Eastern District of Texas. 3-10 (g) Sections 403.095 and 404.071 do not apply to the fund. 3-11 Sec. 403.1055. PERMANENT FUND FOR CHILDREN AND PUBLIC 3-12 HEALTH. (a) The permanent fund for children and public health is 3-13 a special fund in the state treasury outside the general revenue 3-14 fund. The fund is composed of: 3-15 (1) money transferred to the fund at the direction of 3-16 the legislature; 3-17 (2) gifts and grants contributed to the fund; and 3-18 (3) the interest received from investment of money in 3-19 the fund. 3-20 (b) Except as provided by Subsections (c), (e), and (f), 3-21 money in the fund may not be appropriated for any purpose. 3-22 (c) The interest received from investment of the fund may be 3-23 appropriated to the Texas Department of Health for the purpose of 3-24 developing and demonstrating cost-effective prevention and 3-25 intervention strategies for improving health outcomes for children 3-26 and the public and for providing grants to local communities to 3-27 address public health priorities. 4-1 (d) The Texas Board of Health may adopt rules governing any 4-2 grant program established under this section. 4-3 (e) The comptroller may solicit and accept gifts and grants 4-4 to the fund. A gift or grant to the fund may be appropriated in 4-5 the same manner as the interest received from investment of the 4-6 fund, subject to any limitation or requirement placed on the gift 4-7 or grant by the donor or granting entity. 4-8 (f) Money in the fund may also be appropriated to pay any 4-9 amount of money that the federal government determines that the 4-10 state should repay to the federal government or that the federal 4-11 government should recoup from the state in the event of national 4-12 legislation regarding the subject matter of the case styled The 4-13 State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91, 4-14 in the United States District Court, Eastern District of Texas. 4-15 (g) Sections 403.095 and 404.071 do not apply to the fund. 4-16 Sec. 403.106. PERMANENT FUND FOR EMERGENCY MEDICAL SERVICES 4-17 AND TRAUMA CARE. (a) The permanent fund for emergency medical 4-18 services and trauma care is a special fund in the state treasury 4-19 outside the general revenue fund. The fund is composed of: 4-20 (1) money transferred to the fund at the direction of 4-21 the legislature; 4-22 (2) gifts and grants contributed to the fund; and 4-23 (3) the interest received from investment of money in 4-24 the fund. 4-25 (b) Except as provided by Subsections (c), (e), and (f), 4-26 money in the fund may not be appropriated for any purpose. 4-27 (c) The interest received from investment of the fund may be 5-1 appropriated to the Texas Department of Health for programs to 5-2 provide emergency medical services and trauma care in this state. 5-3 (d) Subject to any applicable limit in the General 5-4 Appropriations Act, the Texas Department of Health may establish 5-5 programs to provide emergency medical services and trauma care in 5-6 this state, may contract with another entity to establish those 5-7 programs, or may award grants to political subdivisions to 5-8 establish or support those programs. The department may 5-9 consolidate any grant program established under this section with 5-10 other grant programs relating to the provision of emergency medical 5-11 services and trauma care. The Texas Board of Health may adopt 5-12 rules governing the grant program. 5-13 (e) The comptroller may solicit and accept gifts and grants 5-14 to the fund. A gift or grant to the fund may be appropriated in 5-15 the same manner as the interest received from investment of the 5-16 fund, subject to any limitation or requirement placed on the gift 5-17 or grant by the donor or granting entity. 5-18 (f) Money in the fund may also be appropriated to pay any 5-19 amount of money that the federal government determines that the 5-20 state should repay to the federal government or that the federal 5-21 government should recoup from the state in the event of national 5-22 legislation regarding the subject matter of the case styled The 5-23 State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91, 5-24 in the United States District Court, Eastern District of Texas. 5-25 (g) Sections 403.095 and 404.071 do not apply to the fund. 5-26 Sec. 403.1065. PERMANENT FUND FOR RURAL HEALTH FACILITY 5-27 CAPITAL IMPROVEMENT. (a) The permanent fund for rural health 6-1 facility capital improvement is a special fund in the state 6-2 treasury outside the general revenue fund. The fund is composed 6-3 of: 6-4 (1) money transferred to the fund at the direction of 6-5 the legislature; 6-6 (2) payments of interest and principal on loans made 6-7 under Subchapter G, Chapter 106, Health and Safety Code, and fees 6-8 collected under that subchapter; 6-9 (3) gifts and grants contributed to the fund; and 6-10 (4) the interest received from investment of money in 6-11 the fund. 6-12 (b) Except as provided by Subsections (c), (d), and (e), 6-13 money in the fund may not be appropriated for any purpose. 6-14 (c) The interest received from investment of the fund may be 6-15 appropriated to the Center for Rural Health Initiatives for the 6-16 purposes of Subchapter G, Chapter 106, Health and Safety Code. 6-17 (d) The comptroller may solicit and accept gifts and grants 6-18 to the fund. A gift or grant to the fund may be appropriated in 6-19 the same manner as the interest received from investment of the 6-20 fund, subject to any limitation or requirement placed on the gift 6-21 or grant by the donor or granting entity. 6-22 (e) Money in the fund may also be appropriated to pay any 6-23 amount of money that the federal government determines that the 6-24 state should repay to the federal government or that the federal 6-25 government should recoup from the state in the event of national 6-26 legislation regarding the subject matter of the case styled The 6-27 State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91, 7-1 in the United States District Court, Eastern District of Texas. 7-2 (f) Sections 403.095 and 404.071 do not apply to the fund. 7-3 Sec. 403.1067. COMMUNITY HOSPITAL CAPITAL IMPROVEMENT FUND. 7-4 (a) The community hospital capital improvement fund is a special 7-5 fund in the state treasury outside the general revenue fund. The 7-6 fund is composed of: 7-7 (1) money transferred to the fund at the direction of 7-8 the legislature; 7-9 (2) payments of interest and principal on loans and 7-10 fees collected under this section; 7-11 (3) gifts and grants contributed to the fund; and 7-12 (4) the interest received from investment of money in 7-13 the fund. 7-14 (b) Except as provided by Subsections (c), (d), and (e), the 7-15 money in the fund may not be appropriated for any purpose. 7-16 (c) The interest received from the investment of the fund 7-17 may be appropriated to the Texas Department of Health for the 7-18 purpose of providing grants, loans, or loan guarantees to public or 7-19 nonprofit community hospitals with 125 beds or fewer located in an 7-20 urban area of the state. 7-21 (d) The comptroller may solicit and accept gifts and grants 7-22 to the fund. A gift or grant to the fund may be appropriated in 7-23 the same manner as the interest received from investment of the 7-24 fund, subject to any limitation or requirement placed on the gift 7-25 or grant by the donor or granting entity. 7-26 (e) Money in the fund may also be appropriated to pay any 7-27 amount of money that the federal government determines that the 8-1 state should repay to the federal government or that the federal 8-2 government should recoup from the state in the event of national 8-3 legislation regarding the subject matter of the case styled The 8-4 State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91, 8-5 in the United States District Court, Eastern District of Texas. 8-6 (f) The Texas Board of Health may adopt rules governing any 8-7 grant, loan, or loan guarantee program established under this 8-8 section. 8-9 (g) A hospital eligible to receive a grant, loan, or loan 8-10 guarantee under Chapter 106, Subchapter G, Health and Safety Code, 8-11 is not eligible to receive a grant, loan, or loan guarantee under 8-12 this section. 8-13 (h) Sections 403.095 and 404.071 do not apply to the fund. 8-14 Sec. 403.108. REPORTING REQUIREMENT. The department shall 8-15 provide a report on the permanent funds established under this 8-16 subchapter to the Legislative Budget Board no later than November 1 8-17 of each year. The report shall include the total amount of money 8-18 distributed from each fund, the purpose for which the money was 8-19 used, and any additional information that may be requested by the 8-20 Legislative Budget Board. 8-21 SECTION 2. Subchapter G, Chapter 403, Government Code, is 8-22 amended by adding Section 403.1066 to read as follows: 8-23 Sec. 403.1066. RESTRICTIONS ON LOBBYING EXPENDITURES. (a) 8-24 An organization, program, political subdivision, public institution 8-25 of higher education, local community organization, or other entity 8-26 receiving funds or grants from the permanent funds in Sections 8-27 403.105, 403.1055, 403.106, and 403.1065, Government Code, may not 9-1 use the funds or grants to pay: 9-2 (1) lobbying expenses incurred by the recipient; 9-3 (2) a person or entity that is required to register 9-4 with the Texas Ethics Commission under Chapter 305, Government 9-5 Code; 9-6 (3) any partner, employee, employer, relative, 9-7 contractor, consultant, or related entity of a person or entity 9-8 described by Subdivision (2); or 9-9 (4) a person or entity who has been hired to represent 9-10 associations or other entities for the purpose of affecting the 9-11 outcome of legislation, agency rules, ordinances, or other 9-12 government policies. 9-13 (b) The persons or entities described by Subsection (a) are 9-14 not eligible to receive the money or participate either directly or 9-15 indirectly in the contracts, funds, or grants awarded in Sections 9-16 403.105, 403.1055, 403.106, and 403.1065, Government Code. 9-17 (c) Grants or awards made under Sections 403.105, 403.1055, 9-18 403.106, and 403.1065, Government Code, may not be conditioned on 9-19 the enactment of legislation, agency rules, or local ordinances. 9-20 SECTION 3. Chapter 106, Health and Safety Code, is amended 9-21 by adding Subchapter G to read as follows: 9-22 SUBCHAPTER G. RURAL HEALTH FACILITY CAPITAL IMPROVEMENT 9-23 Sec. 106.201. DEFINITIONS. In this subchapter: 9-24 (1) "Public hospital" means a general or special 9-25 hospital licensed under Chapter 241 that is owned or operated by a 9-26 municipality, county, municipality and county, hospital district, 9-27 or hospital authority and that performs inpatient or outpatient 10-1 services. 10-2 (2) "Rural county" means: 10-3 (A) a county that has a population of 50,000 or 10-4 less; or 10-5 (B) with respect to a county that has a 10-6 population of more than 50,000 and that contains a geographic area 10-7 that is not delineated as urbanized by the federal census bureau, 10-8 that part of the county that is not delineated as urbanized. 10-9 Sec. 106.202. POWERS OF CENTER. In administering this 10-10 subchapter, the center may: 10-11 (1) enter into and enforce contracts and execute and 10-12 deliver conveyances and other instruments necessary to make and 10-13 administer grants, loans, and loan guarantees under this 10-14 subchapter; 10-15 (2) employ personnel and counsel necessary to 10-16 implement this subchapter and pay them from money in the fund 10-17 appropriated for that purpose; 10-18 (3) impose and collect reasonable fees and charges in 10-19 connection with grants, loans, and loan guarantees made under this 10-20 subchapter and provide reasonable penalties for delinquent payment 10-21 of fees, charges, or loan repayments; 10-22 (4) take and enforce a mortgage or appropriate 10-23 security interest in real or personal property that a loan 10-24 recipient acquires with the proceeds of a loan made under this 10-25 subchapter; and 10-26 (5) adopt rules necessary to implement the grant, 10-27 loan, and loan guarantee program. 11-1 Sec. 106.203. GRANT, LOAN, AND LOAN GUARANTEE PROGRAM. (a) 11-2 The center may use money appropriated to the center under Section 11-3 403.1065, Government Code, to make a grant or low interest loan to, 11-4 or guarantee a loan for, a public or nonprofit hospital located in 11-5 a rural county. 11-6 (b) A grant, loan, or loan guarantee recipient may use the 11-7 money only to make capital improvements to existing health 11-8 facilities located in a rural county, to construct new health 11-9 facilities in a rural county, or to purchase capital equipment, 11-10 including information systems hardware and software, for a health 11-11 facility located in a rural county. 11-12 Sec. 106.204. ELIGIBILITY FOR GRANT, LOAN, OR LOAN 11-13 GUARANTEE; INTEREST RATE. (a) The center shall adopt rules that 11-14 establish eligibility criteria for receiving a grant, loan, or loan 11-15 guarantee under this subchapter. 11-16 (b) The rules must state generally the factors the center 11-17 will consider in determining whether an applicant should receive a 11-18 grant, loan, or loan guarantee. The rules must allow the center to 11-19 give preferential consideration to public hospitals and to consider 11-20 at least the financial need of the applicant, the health care needs 11-21 of the rural area served by the applicant, and the probability that 11-22 the applicant will effectively and efficiently use the money 11-23 obtained through the grant, loan, or loan guarantee to meet the 11-24 health care needs of the rural area served by the applicant. 11-25 (c) The rules must state generally the factors the center 11-26 will consider in determining the extent to which the interest rate 11-27 on a loan should be below market rates. 12-1 SECTION 4. On the effective date of this Act, the 12-2 comptroller shall transfer: 12-3 (1) $200 million from the general revenue fund to the 12-4 permanent fund for tobacco education and enforcement established 12-5 by Section 403.105, Government Code, as added by this Act; 12-6 (2) $125 million from the general revenue fund to the 12-7 permanent fund for children and public health established by 12-8 Section 403.1055, Government Code, as added by this Act; 12-9 (3) $100 million from the general revenue fund to the 12-10 permanent fund for emergency medical services and trauma care 12-11 established by Section 403.106, Government Code, as added by this 12-12 Act; 12-13 (4) $50 million from the general revenue fund to the 12-14 permanent fund for rural health facility capital improvement 12-15 established by Section 403.1065, Government Code, as added by this 12-16 Act; and 12-17 (5) $25 million from the general revenue fund to the 12-18 community hospital capital improvement fund established by Section 12-19 403.1067, Government Code, as added by this Act. 12-20 SECTION 5. This Act takes effect August 31, 1999. 12-21 SECTION 6. The importance of this legislation and the 12-22 crowded condition of the calendars in both houses create an 12-23 emergency and an imperative public necessity that the 12-24 constitutional rule requiring bills to be read on three several 12-25 days in each house be suspended, and this rule is hereby suspended.