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,
1-6 403.1066, 403.1067, 403.1068, and 403.1069 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 dedicated account in the general revenue fund.
1-10 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 available earnings of the fund determined in
1-15 accordance with Section 403.1068.
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 available earnings of the fund may be appropriated
1-19 to the Texas Department of Health for programs to reduce the use of
1-20 cigarettes and tobacco products in this state, including:
1-21 (1) smoking cessation programs;
1-22 (2) enforcement of Subchapters H, K, and N, Chapter
1-23 161, Health and Safety Code, or other laws relating to distribution
1-24 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 available earnings of the fund, subject to any
3-1 limitation or requirement placed on the gift or grant by the donor
3-2 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 dedicated account in the general revenue fund. The fund is
3-14 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 available earnings of the fund determined in
3-19 accordance with Section 403.1068.
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 available earnings of the fund may be appropriated
3-23 to the Texas Department of Health for the purpose of developing and
3-24 demonstrating cost-effective prevention and intervention strategies
3-25 for improving health outcomes for children and the public and for
3-26 providing grants to local communities to address specific public
3-27 health priorities, including sickle cell anemia, diabetes, high
4-1 blood pressure, cancer, heart attack, stroke, keloid tissue and
4-2 scarring, and respiratory disease, and for providing grants to
4-3 local communities for essential public health services as defined
4-4 in the Health and Safety Code.
4-5 (d) The Texas Board of Health may adopt rules governing any
4-6 grant program established under this section.
4-7 (e) The comptroller may solicit and accept gifts and grants
4-8 to the fund. A gift or grant to the fund may be appropriated in
4-9 the same manner as available earnings of the fund, subject to any
4-10 limitation or requirement placed on the gift or grant by the donor
4-11 or granting entity.
4-12 (f) Money in the fund may also be appropriated to pay any
4-13 amount of money that the federal government determines that the
4-14 state should repay to the federal government or that the federal
4-15 government should recoup from the state in the event of national
4-16 legislation regarding the subject matter of the case styled The
4-17 State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91,
4-18 in the United States District Court, Eastern District of Texas.
4-19 (g) Sections 403.095 and 404.071 do not apply to the fund.
4-20 Sec. 403.106. PERMANENT FUND FOR EMERGENCY MEDICAL SERVICES
4-21 AND TRAUMA CARE. (a) The permanent fund for emergency medical
4-22 services and trauma care is a dedicated account in the general
4-23 revenue fund. The fund is composed of:
4-24 (1) money transferred to the fund at the direction of
4-25 the legislature;
4-26 (2) gifts and grants contributed to the fund; and
4-27 (3) the available earnings of the fund determined in
5-1 accordance with Section 403.1068.
5-2 (b) Except as provided by Subsections (c), (e), and (f),
5-3 money in the fund may not be appropriated for any purpose.
5-4 (c) The available earnings of the fund may be appropriated
5-5 to the Texas Department of Health for programs to provide emergency
5-6 medical services and trauma care in this state.
5-7 (d) Subject to any applicable limit in the General
5-8 Appropriations Act, the Texas Department of Health may establish
5-9 programs to provide emergency medical services and trauma care in
5-10 this state, may contract with another entity to establish those
5-11 programs, or may award grants to political subdivisions to
5-12 establish or support those programs. The department may
5-13 consolidate any grant program established under this section with
5-14 other grant programs relating to the provision of emergency medical
5-15 services and trauma care. The Texas Board of Health may adopt
5-16 rules governing the grant program.
5-17 (e) The comptroller may solicit and accept gifts and grants
5-18 to the fund. A gift or grant to the fund may be appropriated in
5-19 the same manner as available earnings of the fund, subject to any
5-20 limitation or requirement placed on the gift or grant by the donor
5-21 or granting entity.
5-22 (f) Money in the fund may also be appropriated to pay any
5-23 amount of money that the federal government determines that the
5-24 state should repay to the federal government or that the federal
5-25 government should recoup from the state in the event of national
5-26 legislation regarding the subject matter of the case styled The
5-27 State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91,
6-1 in the United States District Court, Eastern District of Texas.
6-2 (g) Sections 403.095 and 404.071 do not apply to the fund.
6-3 Sec. 403.1065. PERMANENT FUND FOR RURAL HEALTH FACILITY
6-4 CAPITAL IMPROVEMENT. (a) The permanent fund for rural health
6-5 facility capital improvement is a dedicated account in the general
6-6 revenue fund. The fund is composed of:
6-7 (1) money transferred to the fund at the direction of
6-8 the legislature;
6-9 (2) payments of interest and principal on loans made
6-10 under Subchapter G, Chapter 106, Health and Safety Code, and fees
6-11 collected under that subchapter;
6-12 (3) gifts and grants contributed to the fund; and
6-13 (4) the available earnings of the fund determined in
6-14 accordance with Section 403.1068.
6-15 (b) Except as provided by Subsections (c), (d), and (e),
6-16 money in the fund may not be appropriated for any purpose.
6-17 (c) The available earnings of the fund may be appropriated
6-18 to the Center for Rural Health Initiatives for the purposes of
6-19 Subchapter G, Chapter 106, Health and Safety Code.
6-20 (d) The comptroller may solicit and accept gifts and grants
6-21 to the fund. A gift or grant to the fund may be appropriated in
6-22 the same manner as the available earnings of the fund, subject to
6-23 any limitation or requirement placed on the gift or grant by the
6-24 donor or granting entity.
6-25 (e) Money in the fund may also be appropriated to pay any
6-26 amount of money that the federal government determines that the
6-27 state should repay to the federal government or that the federal
7-1 government should recoup from the state in the event of national
7-2 legislation regarding the subject matter of the case styled The
7-3 State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91,
7-4 in the United States District Court, Eastern District of Texas.
7-5 (f) Sections 403.095 and 404.071 do not apply to the fund.
7-6 Sec. 403.1066. COMMUNITY HOSPITAL CAPITAL IMPROVEMENT FUND.
7-7 (a) The community hospital capital improvement fund is a dedicated
7-8 account in the general revenue fund. The fund is composed of:
7-9 (1) money transferred to the fund at the direction of
7-10 the legislature;
7-11 (2) payments of interest and principal on loans and
7-12 fees collected under this section;
7-13 (3) gifts and grants contributed to the fund; and
7-14 (4) the available earnings of the fund determined in
7-15 accordance with Section 403.1068.
7-16 (b) Except as provided by Subsections (c), (d), and (e), the
7-17 money in the fund may not be appropriated for any purpose.
7-18 (c) The available earnings of the fund may be appropriated
7-19 to the Texas Department of Health for the purpose of providing
7-20 grants, loans, or loan guarantees to public or nonprofit community
7-21 hospitals with 125 beds or fewer located in an urban area of the
7-22 state.
7-23 (d) The comptroller may solicit and accept gifts and grants
7-24 to the fund. A gift or grant to the fund may be appropriated in
7-25 the same manner as available earnings of the fund, subject to any
7-26 limitation or requirement placed on the gift or grant by the donor
7-27 or granting entity.
8-1 (e) Money in the fund may also be appropriated to pay any
8-2 amount of money that the federal government determines that the
8-3 state should repay to the federal government or that the federal
8-4 government should recoup from the state in the event of national
8-5 legislation regarding the subject matter of the case styled The
8-6 State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91,
8-7 in the United States District Court, Eastern District of Texas.
8-8 (f) The Texas Board of Health may adopt rules governing any
8-9 grant, loan, or loan guarantee program established under this
8-10 section.
8-11 (g) A hospital eligible to receive a grant, loan, or loan
8-12 guarantee under Subchapter G, Chapter 106, Health and Safety Code,
8-13 is not eligible to receive a grant, loan, or loan guarantee under
8-14 this section.
8-15 (h) Sections 403.095 and 404.071 do not apply to the fund.
8-16 Sec. 403.1067. RESTRICTIONS ON LOBBYING EXPENDITURES. (a)
8-17 An organization, program, political subdivision, public institution
8-18 of higher education, local community organization, or other entity
8-19 receiving funds or grants from the permanent funds in Section
8-20 403.105, 403.1055, 403.106, 403.1065, or 403.1066 may not use the
8-21 funds or grants to pay:
8-22 (1) lobbying expenses incurred by the recipient;
8-23 (2) a person or entity that is required to register
8-24 with the Texas Ethics Commission under Chapter 305, Government
8-25 Code;
8-26 (3) any partner, employee, employer, relative,
8-27 contractor, consultant, or related entity of a person or entity
9-1 described by Subdivision (2); or
9-2 (4) a person or entity who has been hired to represent
9-3 associations or other entities for the purpose of affecting the
9-4 outcome of legislation, agency rules, ordinances, or other
9-5 government policies.
9-6 (b) The persons or entities described by Subsection (a) are
9-7 not eligible to receive the money or participate either directly or
9-8 indirectly in the contracts, funds, or grants awarded in Section
9-9 403.105, 403.1055, 403.106, 403.1065, or 403.1066.
9-10 (c) Grants or awards made under Section 403.105, 403.1055,
9-11 403.106, 403.1065, or 403.1066 may not be conditioned on the
9-12 enactment of legislation, agency rules, or local ordinances.
9-13 Sec. 403.1068. MANAGEMENT OF CERTAIN FUNDS. (a) This
9-14 section applies only to management of the permanent funds
9-15 established under Sections 403.105, 403.1055, 403.106, 403.1065,
9-16 and 403.1066.
9-17 (b) The comptroller shall manage the assets of each
9-18 permanent fund. In managing the assets of a fund, the comptroller
9-19 may acquire, exchange, sell, supervise, manage, or retain, through
9-20 procedures and subject to restrictions the comptroller considers
9-21 appropriate, any kind of investment that prudent investors,
9-22 exercising reasonable care, skill, and caution, would acquire or
9-23 retain in light of the purposes, terms, distribution requirements,
9-24 and other circumstances of the fund then prevailing, taking into
9-25 consideration the investment of all the assets of the fund rather
9-26 than a single investment.
9-27 (c) The available earnings of each permanent fund consist of
10-1 distributions made to the fund from the total return on all
10-2 investment assets of the fund, including net income attributable to
10-3 the surface of land held by the fund.
10-4 (d) The amount of any distributions to each fund under
10-5 Subsection (c) shall be determined by the comptroller in a manner
10-6 intended to provide a stable and predictable stream of annual
10-7 distributions and to maintain over time the purchasing power of
10-8 fund investments and annual distributions to the fund. If the
10-9 purchasing power of fund investments for any 10-year period is not
10-10 preserved, the comptroller may not increase annual distributions to
10-11 the available earnings of the fund until the purchasing power of
10-12 the fund investments is restored.
10-13 (e) An annual distribution made by the comptroller to the
10-14 available earnings of a fund during any fiscal year may not exceed
10-15 an amount equal to seven percent of the average net fair market
10-16 value of the investment assets of each fund as determined by the
10-17 comptroller.
10-18 (f) The expenses of managing land and investments of each
10-19 fund shall be paid from each fund.
10-20 (g) On request, the comptroller shall fully disclose all
10-21 details concerning the investments of each fund.
10-22 Sec. 403.1069. REPORTING REQUIREMENT. The department shall
10-23 provide a report on the permanent funds established under this
10-24 subchapter to the Legislative Budget Board no later than November 1
10-25 of each year. The report shall include the total amount of money
10-26 distributed from each fund, the purpose for which the money was
10-27 used, and any additional information that may be requested by the
11-1 Legislative Budget Board.
11-2 SECTION 2. Chapter 106, Health and Safety Code, is amended
11-3 by adding Subchapter G to read as follows:
11-4 SUBCHAPTER G. RURAL HEALTH FACILITY CAPITAL IMPROVEMENT
11-5 Sec. 106.201. DEFINITIONS. In this subchapter:
11-6 (1) "Public hospital" means a general or special
11-7 hospital licensed under Chapter 241 that is owned or operated by a
11-8 municipality, county, municipality and county, hospital district,
11-9 or hospital authority and that performs inpatient or outpatient
11-10 services.
11-11 (2) "Rural county" means:
11-12 (A) a county that has a population of 150,000 or
11-13 less; or
11-14 (B) with respect to a county that has a
11-15 population of more than 150,000 and that contains a geographic area
11-16 that is not delineated as urbanized by the federal census bureau,
11-17 that part of the county that is not delineated as urbanized.
11-18 Sec. 106.202. POWERS OF CENTER. In administering this
11-19 subchapter, the center may:
11-20 (1) enter into and enforce contracts and execute and
11-21 deliver conveyances and other instruments necessary to make and
11-22 administer grants, loans, and loan guarantees under this
11-23 subchapter;
11-24 (2) employ personnel and counsel necessary to
11-25 implement this subchapter and pay them from money in the fund
11-26 appropriated for that purpose;
11-27 (3) impose and collect reasonable fees and charges in
12-1 connection with grants, loans, and loan guarantees made under this
12-2 subchapter and provide reasonable penalties for delinquent payment
12-3 of fees, charges, or loan repayments;
12-4 (4) take and enforce a mortgage or appropriate
12-5 security interest in real or personal property that a loan
12-6 recipient acquires with the proceeds of a loan made under this
12-7 subchapter; and
12-8 (5) adopt rules necessary to implement the grant,
12-9 loan, and loan guarantee program.
12-10 Sec. 106.203. GRANT, LOAN, AND LOAN GUARANTEE PROGRAM. (a)
12-11 The center may use money appropriated to the center under Section
12-12 403.1065, Government Code, to make a grant or low interest loan to,
12-13 or guarantee a loan for, a public or nonprofit hospital located in
12-14 a rural county.
12-15 (b) A grant, loan, or loan guarantee recipient may use the
12-16 money only to make capital improvements to existing health
12-17 facilities located in a rural county, to construct new health
12-18 facilities in a rural county, or to purchase capital equipment,
12-19 including information systems hardware and software, for a health
12-20 facility located in a rural county.
12-21 Sec. 106.204. ELIGIBILITY FOR GRANT, LOAN, OR LOAN
12-22 GUARANTEE; INTEREST RATE. (a) The center shall adopt rules that
12-23 establish eligibility criteria for receiving a grant, loan, or loan
12-24 guarantee under this subchapter.
12-25 (b) The rules must state generally the factors the center
12-26 will consider in determining whether an applicant should receive a
12-27 grant, loan, or loan guarantee. The rules must allow the center to
13-1 give preferential consideration to public hospitals and to consider
13-2 at least the financial need of the applicant, the health care needs
13-3 of the rural area served by the applicant, and the probability that
13-4 the applicant will effectively and efficiently use the money
13-5 obtained through the grant, loan, or loan guarantee to meet the
13-6 health care needs of the rural area served by the applicant.
13-7 (c) The rules must state generally the factors the center
13-8 will consider in determining the extent to which the interest rate
13-9 on a loan should be below market rates.
13-10 SECTION 3. On the effective date of this Act, the
13-11 comptroller shall transfer:
13-12 (1) $200 million from tobacco proceeds in the general
13-13 revenue fund to the permanent fund for tobacco education and
13-14 enforcement established by Section 403.105, Government Code, as
13-15 added by this Act;
13-16 (2) $100 million from tobacco proceeds in the general
13-17 revenue fund to the permanent fund for children and public health
13-18 established by Section 403.1055, Government Code, as added by this
13-19 Act;
13-20 (3) $100 million from tobacco proceeds in the general
13-21 revenue fund to the permanent fund for emergency medical services
13-22 and trauma care established by Section 403.106, Government Code,
13-23 as added by this Act;
13-24 (4) $50 million from tobacco proceeds in the general
13-25 revenue fund to the permanent fund for rural health facility
13-26 capital improvement established by Section 403.1065, Government
13-27 Code, as added by this Act; and
14-1 (5) $25 million from tobacco proceeds in the general
14-2 revenue fund to the community hospital capital improvement fund
14-3 established by Section 403.1066, Government Code, as added by this
14-4 Act.
14-5 SECTION 4. This Act takes effect August 31, 1999.
14-6 SECTION 5. The importance of this legislation and the
14-7 crowded condition of the calendars in both houses create an
14-8 emergency and an imperative public necessity that the
14-9 constitutional rule requiring bills to be read on three several
14-10 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1676 was passed by the House on April
22, 1999, by a non-record vote; that the House refused to concur in
Senate amendments to H.B. No. 1676 on May 13, 1999, and requested
the appointment of a conference committee to consider the
differences between the two houses; and that the House adopted the
conference committee report on H.B. No. 1676 on May 27, 1999, by a
non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1676 was passed by the Senate, with
amendments, on May 11, 1999, by a viva-voce vote; at the request of
the House, the Senate appointed a conference committee to consider
the differences between the two houses; and that the Senate adopted
the conference committee report on H.B. No. 1676 on May 29, 1999,
by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor