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.