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.