76R9637 DLF-D                           
         By Junell, Cuellar, Turner of Coleman, Cook,          H.B. No. 1676
            Delisi
         Substitute the following for H.B. No. 1676:
         By Junell                                         C.S.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, and 403.1065
 1-6     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
 2-1     of cigarettes or tobacco products to minors or use of cigarettes or
 2-2     tobacco products by minors;
 2-3                 (3)  public awareness programs relating to use of
 2-4     cigarettes and tobacco products, including general educational
 2-5     programs and programs directed toward youth; and
 2-6                 (4)  specific programs for communities traditionally
 2-7     targeted, by advertising and other means, by companies that sell
 2-8     cigarettes or tobacco products.
 2-9           (d)  Subject to any applicable limit in the General
2-10     Appropriations Act, the Texas Department of Health may contract
2-11     with another entity to perform all or a part of the functions
2-12     described by Subsection (c) or may award grants to community
2-13     organizations, public institutions of higher education, as that
2-14     term is defined by Section 61.003, Education Code, or political
2-15     subdivisions to enable the organizations, institutions, or
2-16     political subdivisions to perform all or a part of those functions.
2-17     To ensure the most efficient, effective, and rapid delivery of
2-18     services, the Texas Board of Health shall give high priority and
2-19     preference to existing, effective state programs that do not
2-20     otherwise receive money from an endowment program funded by money
2-21     received under the Comprehensive Settlement Agreement and Release
2-22     filed in the case styled The State of Texas v. The American Tobacco
2-23     Co., et al., No. 5-96CV-91, in the United States District Court,
2-24     Eastern District of Texas.  The board may adopt rules governing any
2-25     grant program established under this section.
2-26           (e)  The comptroller may solicit and accept gifts and grants
2-27     to the fund.  A gift or grant to the fund may be appropriated in
 3-1     the same manner as the interest received from investment of the
 3-2     fund, subject to any limitation or requirement placed on the gift
 3-3     or grant by the donor or granting entity.
 3-4           (f)  Money in the fund may also be appropriated to pay any
 3-5     amount of money that the federal government determines that the
 3-6     state should repay to the federal government or that the federal
 3-7     government should recoup from the state in the event of national
 3-8     legislation regarding the subject matter of the case styled The
 3-9     State of Texas v. The American Tobacco Co., et al., No.  5-96CV-91,
3-10     in the United States District Court, Eastern District of Texas.
3-11           (g)  Sections 403.095 and 404.071 do not apply to the fund.
3-12           Sec. 403.1055.  PERMANENT FUND FOR CHILDREN AND PUBLIC
3-13     HEALTH.  (a)  The permanent fund for children and public health is
3-14     a special fund in the state treasury outside the general revenue
3-15     fund. The fund is composed of:
3-16                 (1)  money transferred to the fund at the direction of
3-17     the legislature;
3-18                 (2)  gifts and grants contributed to the fund; and
3-19                 (3)  the interest received from investment of money in
3-20     the fund.
3-21           (b)  Except as provided by Subsections (c), (e), and (f),
3-22     money in the fund may not be appropriated for any purpose.
3-23           (c)  The interest received from investment of the fund may be
3-24     appropriated to the Texas Department of Health to establish a
3-25     foundation for the purpose of developing and demonstrating
3-26     cost-effective prevention and intervention strategies for improving
3-27     health outcomes for children and the public and for providing
 4-1     grants to local communities to address public health priorities.
 4-2           (d)  The Texas Board of Health may adopt rules governing any
 4-3     grant program established under this section.
 4-4           (e)  The comptroller may solicit and accept gifts and grants
 4-5     to the fund.  A gift or grant to the fund may be appropriated in
 4-6     the same manner as the interest received from investment of the
 4-7     fund, subject to any limitation or requirement placed on the gift
 4-8     or grant by the donor or granting entity.
 4-9           (f)  Money in the fund may also be appropriated to pay any
4-10     amount of money that the federal government determines that the
4-11     state should repay to the federal government or that the federal
4-12     government should recoup from the state in the event of national
4-13     legislation regarding the subject matter of the case styled The
4-14     State of Texas v. The American Tobacco Co., et al., No.  5-96CV-91,
4-15     in the United States District Court, Eastern District of Texas.
4-16           (g)  Sections 403.095 and 404.071 do not apply to the fund.
4-17           Sec. 403.106.  PERMANENT FUND FOR EMERGENCY MEDICAL SERVICES
4-18     AND TRAUMA CARE.  (a)  The permanent fund for emergency medical
4-19     services and trauma care is a special fund in the state treasury
4-20     outside the general revenue fund.  The fund is composed of:
4-21                 (1)  money transferred to the fund at the direction of
4-22     the legislature;
4-23                 (2)  gifts and grants contributed to the fund; and
4-24                 (3)  the interest received from investment of money in
4-25     the fund.
4-26           (b)  Except as provided by Subsections (c), (e), and (f),
4-27     money in the fund may not be appropriated for any purpose.
 5-1           (c)  The interest received from investment of the fund may be
 5-2     appropriated to the Texas Department of Health for programs to
 5-3     provide emergency medical services and trauma care in this state.
 5-4           (d)  Subject to any applicable limit in the General
 5-5     Appropriations Act, the Texas Department of Health may establish
 5-6     programs to provide emergency medical services and trauma care in
 5-7     this state, may contract with another entity to establish those
 5-8     programs, or may award grants to political subdivisions to
 5-9     establish or support those programs.  The department may
5-10     consolidate any grant program established under this section with
5-11     other grant programs relating to the provision of emergency medical
5-12     services and trauma care.  The Texas Board of Health may adopt
5-13     rules governing the grant program.
5-14           (e)  The comptroller may solicit and accept gifts and grants
5-15     to the fund.  A gift or grant to the fund may be appropriated in
5-16     the same manner as the interest received from investment of the
5-17     fund, subject to any limitation or requirement placed on the gift
5-18     or grant by the donor or granting entity.
5-19           (f)  Money in the fund may also be appropriated to pay any
5-20     amount of money that the federal government determines that the
5-21     state should repay to the federal government or that the federal
5-22     government should recoup from the state in the event of national
5-23     legislation regarding the subject matter of the case styled The
5-24     State of Texas v. The American Tobacco Co., et al., No.  5-96CV-91,
5-25     in the United States District Court, Eastern District of Texas.
5-26           (g)  Sections 403.095 and 404.071 do not apply to the fund.
5-27           Sec. 403.1065.  PERMANENT FUND FOR RURAL HEALTH FACILITY
 6-1     CAPITAL IMPROVEMENT.  (a)  The permanent fund for rural health
 6-2     facility capital improvement is a special fund in the state
 6-3     treasury outside the general revenue fund.  The fund is composed
 6-4     of:
 6-5                 (1)  money transferred to the fund at the direction of
 6-6     the legislature;
 6-7                 (2)  payments of interest and principal on loans made
 6-8     under Subchapter G, Chapter 106, Health and Safety Code, and fees
 6-9     collected under that subchapter;
6-10                 (3)  gifts and grants contributed to the fund; and
6-11                 (4)  the interest received from investment of money in
6-12     the fund.
6-13           (b)  Except as provided by Subsections (c), (d), and (e),
6-14     money in the fund may not be appropriated for any purpose.
6-15           (c)  The interest received from investment of the fund may be
6-16     appropriated to the Center for Rural Health Initiatives for the
6-17     purposes of Subchapter G, Chapter 106, Health and Safety Code.
6-18           (d)  The comptroller may solicit and accept gifts and grants
6-19     to the fund.  A gift or grant to the fund may be appropriated in
6-20     the same manner as the interest received from investment of the
6-21     fund, subject to any limitation or requirement placed on the gift
6-22     or grant by the donor or granting entity.
6-23           (e)  Money in the fund may also be appropriated to pay any
6-24     amount of money that the federal government determines that the
6-25     state should repay to the federal government or that the federal
6-26     government should recoup from the state in the event of national
6-27     legislation regarding the subject matter of the case styled The
 7-1     State of Texas v. The American Tobacco Co., et al., No.  5-96CV-91,
 7-2     in the United States District Court, Eastern District of Texas.
 7-3           (f)  Sections 403.095 and 404.071 do not apply to the fund.
 7-4           SECTION 2.  Chapter 106, Health and Safety Code, is amended
 7-5     by adding Subchapter G to read as follows:
 7-6           SUBCHAPTER G. RURAL HEALTH FACILITY CAPITAL IMPROVEMENT
 7-7           Sec. 106.201.  DEFINITIONS.  In this subchapter:
 7-8                 (1)  "Public hospital" means a general or special
 7-9     hospital licensed under Chapter 241 that is owned or operated by a
7-10     municipality, county, municipality and county, hospital district,
7-11     or hospital authority and that performs inpatient or outpatient
7-12     services.
7-13                 (2)  "Rural county" means a county that:
7-14                       (A)  has a population of 50,000 or less; or
7-15                       (B)  has a population of more than 50,000 but:
7-16                             (i)  does not have located within the
7-17     county more than 150 hospital beds in general or special hospitals
7-18     licensed under Chapter 241; and
7-19                             (ii)  was not, based on the 1990 federal
7-20     census, completely included within an urbanized area by the Bureau
7-21     of the Census of the United States Department of Commerce.
7-22           Sec. 106.202.  POWERS OF CENTER.  In administering this
7-23     subchapter, the center may:
7-24                 (1)  enter into and enforce contracts and execute and
7-25     deliver conveyances and other instruments necessary to make and
7-26     administer grants and loans under this subchapter;
7-27                 (2)  employ personnel and counsel necessary to
 8-1     implement this subchapter and pay them from money in the fund
 8-2     appropriated for that purpose;
 8-3                 (3)  impose and collect reasonable fees and charges in
 8-4     connection with grants and loans made under this subchapter and
 8-5     provide reasonable penalties for delinquent payment of fees,
 8-6     charges, or loan repayments;
 8-7                 (4)  take and enforce a mortgage or appropriate
 8-8     security interest in real or personal property that a loan
 8-9     recipient acquires with the proceeds of a loan made under this
8-10     subchapter; and
8-11                 (5)  adopt rules necessary to implement the grant and
8-12     loan program.
8-13           Sec. 106.203.  GRANT AND LOAN PROGRAM.  (a)  The center may
8-14     use money appropriated to the center under Section 403.1065,
8-15     Government Code, to make a grant or low interest loan to a
8-16     municipality, county, municipality and county, hospital district,
8-17     or hospital authority that owns or operates a public hospital
8-18     located in a rural county.
8-19           (b)  A grant or loan recipient may use the money only to make
8-20     capital improvements to existing public health facilities located
8-21     in a rural county, to construct new public health facilities in a
8-22     rural county, or to purchase capital equipment, including
8-23     information systems hardware and software, for a public health
8-24     facility located in a rural county.
8-25           Sec. 106.204.  ELIGIBILITY FOR GRANT OR LOAN; INTEREST RATE.
8-26     (a)  The center shall adopt rules that establish eligibility
8-27     criteria for receiving a loan or grant under this subchapter.
 9-1           (b)  The rules must state generally the factors the center
 9-2     will consider in determining whether an applicant should receive a
 9-3     grant or loan. The rules must allow the center to consider at least
 9-4     the financial need of the applicant, the health care needs of the
 9-5     rural area served by the applicant, and the probability that the
 9-6     applicant will effectively and efficiently use the grant or loan to
 9-7     meet the health care needs of the rural area served by the
 9-8     applicant.
 9-9           (c)  The rules must state generally the factors the center
9-10     will consider in determining the extent to which the interest rate
9-11     on a loan should be below market rates.
9-12           SECTION 3.  On the effective date of this Act, the
9-13     comptroller shall transfer:
9-14                 (1)  $200 million from the general revenue fund to the
9-15     permanent fund for tobacco education and enforcement  established
9-16     by Section 403.105, Government Code, as added by this Act;
9-17                 (2)  $150 million from the general revenue fund to the
9-18     permanent fund for children and public health  established by
9-19     Section 403.1055, Government Code, as added by this Act;
9-20                 (3)  $100 million from the general revenue fund to the
9-21     permanent fund for emergency medical services and trauma care
9-22     established by Section 403.106, Government Code, as added by this
9-23     Act; and
9-24                 (4)  $50 million from the general revenue fund to the
9-25     permanent fund for rural health facility capital improvement
9-26     established by Section 403.1065, Government Code, as added by this
9-27     Act.
 10-1          SECTION 4.  This Act takes effect August 31, 1999.
 10-2          SECTION 5.  The importance of this legislation and the
 10-3    crowded condition of the calendars in both houses create an
 10-4    emergency and an imperative public necessity that the
 10-5    constitutional rule requiring bills to be read on three several
 10-6    days in each house be suspended, and this rule is hereby suspended.