By Junell H.B. No. 1676 76R2686 DLF-D 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) and (e), money in 1-17 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; and 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. 2-6 (d) Subject to any applicable limit in the General 2-7 Appropriations Act, the Texas Department of Health may contract 2-8 with another entity to perform all or a part of the functions 2-9 described by Subsection (c) or may award grants to community 2-10 organizations or political subdivisions to enable the organizations 2-11 or political subdivisions to perform all or a part of those 2-12 functions. The Texas Board of Health may adopt rules governing any 2-13 grant program established under this section. 2-14 (e) The comptroller may solicit and accept gifts and grants 2-15 to the fund. A gift or grant to the fund may be appropriated in 2-16 the same manner as the interest received from investment of the 2-17 fund, subject to any limitation or requirement placed on the gift 2-18 or grant by the donor or granting entity. 2-19 (f) Sections 403.095 and 404.071 do not apply to the fund. 2-20 Sec. 403.1055. PERMANENT FUND FOR CHILDREN AND PUBLIC 2-21 HEALTH. (a) The permanent fund for children and public health is 2-22 a special fund in the state treasury outside the general revenue 2-23 fund. The fund is composed of: 2-24 (1) money transferred to the fund at the direction of 2-25 the legislature; 2-26 (2) gifts and grants contributed to the fund; and 2-27 (3) the interest received from investment of money in 3-1 the fund. 3-2 (b) Except as provided by Subsections (c) and (e), money in 3-3 the fund may not be appropriated for any purpose. 3-4 (c) The interest received from investment of the fund may be 3-5 appropriated to the Texas Department of Health for children's 3-6 health care and grants to local communities to address public 3-7 health priorities. 3-8 (d) The Texas Board of Health may adopt rules governing any 3-9 grant program established under this section. 3-10 (e) The comptroller may solicit and accept gifts and grants 3-11 to the fund. A gift or grant to the fund may be appropriated in 3-12 the same manner as the interest received from investment of the 3-13 fund, subject to any limitation or requirement placed on the gift 3-14 or grant by the donor or granting entity. 3-15 (f) Sections 403.095 and 404.071 do not apply to the fund. 3-16 Sec. 403.106. PERMANENT FUND FOR EMERGENCY MEDICAL SERVICES 3-17 AND TRAUMA CARE. (a) The permanent fund for emergency medical 3-18 services and trauma care is a special fund in the state treasury 3-19 outside the general revenue fund. The fund is composed of: 3-20 (1) money transferred to the fund at the direction of 3-21 the legislature; 3-22 (2) gifts and grants contributed to the fund; and 3-23 (3) the interest received from investment of money in 3-24 the fund. 3-25 (b) Except as provided by Subsections (c) and (e), money in 3-26 the fund may not be appropriated for any purpose. 3-27 (c) The interest received from investment of the fund may be 4-1 appropriated to the Texas Department of Health for programs to 4-2 provide emergency medical services and trauma care in this state. 4-3 (d) Subject to any applicable limit in the General 4-4 Appropriations Act, the Texas Department of Health may establish 4-5 programs to provide emergency medical services and trauma care in 4-6 this state, may contract with another entity to establish those 4-7 programs, or may award grants to political subdivisions to 4-8 establish or support those programs. The department may 4-9 consolidate any grant program established under this section with 4-10 other grant programs relating to the provision of emergency medical 4-11 services and trauma care. The Texas Board of Health may adopt 4-12 rules governing the grant program. 4-13 (e) The comptroller may solicit and accept gifts and grants 4-14 to the fund. A gift or grant to the fund may be appropriated in 4-15 the same manner as the interest received from investment of the 4-16 fund, subject to any limitation or requirement placed on the gift 4-17 or grant by the donor or granting entity. 4-18 (f) Sections 403.095 and 404.071 do not apply to the fund. 4-19 Sec. 403.1065. PERMANENT FUND FOR RURAL HEALTH FACILITY 4-20 CAPITAL IMPROVEMENT. (a) The permanent fund for rural health 4-21 facility capital improvement is a special fund in the state 4-22 treasury outside the general revenue fund. The fund is composed 4-23 of: 4-24 (1) money transferred to the fund at the direction of 4-25 the legislature; 4-26 (2) payments of interest and principal on loans made 4-27 under Subchapter G, Chapter 106, Health and Safety Code, and fees 5-1 collected under that subchapter; 5-2 (3) gifts and grants contributed to the fund; and 5-3 (4) the interest received from investment of money in 5-4 the fund. 5-5 (b) Except as provided by Subsections (c) and (d), money in 5-6 the fund may not be appropriated for any purpose. 5-7 (c) The interest received from investment of the fund may be 5-8 appropriated to the Center for Rural Health Initiatives for the 5-9 purposes of Subchapter G, Chapter 106, Health and Safety Code. 5-10 (d) The comptroller may solicit and accept gifts and grants 5-11 to the fund. A gift or grant to the fund may be appropriated in 5-12 the same manner as the interest received from investment of the 5-13 fund, subject to any limitation or requirement placed on the gift 5-14 or grant by the donor or granting entity. 5-15 (e) Sections 403.095 and 404.071 do not apply to the fund. 5-16 SECTION 2. Chapter 106, Health and Safety Code, is amended 5-17 by adding Subchapter G to read as follows: 5-18 SUBCHAPTER G. RURAL HEALTH FACILITY CAPITAL IMPROVEMENT 5-19 Sec. 106.201. DEFINITIONS. In this subchapter: 5-20 (1) "Public hospital" means a general or special 5-21 hospital licensed under Chapter 241 that is owned or operated by a 5-22 municipality, county, municipality and county, hospital district, 5-23 or hospital authority and that performs inpatient or outpatient 5-24 services. 5-25 (2) "Rural county" means a county that: 5-26 (A) has a population of 50,000 or less; or 5-27 (B) has a population of more than 50,000 but: 6-1 (i) does not have located within the 6-2 county more than 150 hospital beds in general or special hospitals 6-3 licensed under Chapter 241; and 6-4 (ii) was not, based on the 1990 federal 6-5 census, completely included within an urbanized area by the Bureau 6-6 of the Census of the United States Department of Commerce. 6-7 Sec. 106.202. POWERS OF CENTER. In administering this 6-8 subchapter, the center may: 6-9 (1) enter into and enforce contracts and execute and 6-10 deliver conveyances and other instruments necessary to make and 6-11 administer grants and loans under this subchapter; 6-12 (2) employ personnel and counsel necessary to 6-13 implement this subchapter and pay them from money in the fund 6-14 appropriated for that purpose; 6-15 (3) impose and collect reasonable fees and charges in 6-16 connection with grants and loans made under this subchapter and 6-17 provide reasonable penalties for delinquent payment of fees, 6-18 charges, or loan repayments; 6-19 (4) take and enforce a mortgage or appropriate 6-20 security interest in real or personal property that a loan 6-21 recipient acquires with the proceeds of a loan made under this 6-22 subchapter; and 6-23 (5) adopt rules necessary to implement the grant and 6-24 loan program. 6-25 Sec. 106.203. GRANT AND LOAN PROGRAM. (a) The center may 6-26 use money appropriated to the center under Section 403.1065, 6-27 Government Code, to make a grant or low interest loan to a 7-1 municipality, county, municipality and county, hospital district, 7-2 or hospital authority that owns or operates a public hospital 7-3 located in a rural county. 7-4 (b) A grant or loan recipient may use the money only to make 7-5 capital improvements to existing public health facilities located 7-6 in a rural county, to construct new public health facilities in a 7-7 rural county, or to purchase capital equipment, including 7-8 information systems hardware and software, for a public health 7-9 facility located in a rural county. 7-10 Sec. 106.204. ELIGIBILITY FOR GRANT OR LOAN; INTEREST RATE. 7-11 (a) The center shall adopt rules that establish eligibility 7-12 criteria for receiving a loan or grant under this subchapter. A 7-13 municipality, county, municipality and county, or hospital district 7-14 is not eligible for a grant or loan under this subchapter in any 7-15 year that the entity, or in the case of a municipality and county, 7-16 either partner of the entity, receives a distribution under 7-17 Paragraph 5 of the Agreement Regarding Disposition of Settlement 7-18 Proceeds filed on July 24, 1998, in the case styled The State of 7-19 Texas v. The American Tobacco Co., et al., No. 5096CV-91. 7-20 (b) The rules must state generally the factors the center 7-21 will consider in determining whether an applicant should receive a 7-22 grant or loan. The rules must allow the center to consider at least 7-23 the financial need of the applicant, the health care needs of the 7-24 rural area served by the applicant, and the probability that the 7-25 applicant will effectively and efficiently use the grant or loan to 7-26 meet the health care needs of the rural area served by the 7-27 applicant. 8-1 (c) The rules must state generally the factors the center 8-2 will consider in determining the extent to which the interest rate 8-3 on a loan should be below market rates. 8-4 SECTION 3. On the effective date of this Act, the 8-5 comptroller shall transfer: 8-6 (1) $200 million from the general revenue fund to the 8-7 permanent fund for tobacco education and enforcement established 8-8 by Section 403.105, Government Code, as added by this Act; 8-9 (2) $150 million from the general revenue fund to the 8-10 permanent fund for children and public health established by 8-11 Section 403.1055, Government Code, as added by this Act; 8-12 (3) $100 million from the general revenue fund to the 8-13 permanent fund for emergency medical services and trauma care 8-14 established by Section 403.106, Government Code, as added by this 8-15 Act; and 8-16 (4) $50 million from the general revenue fund to the 8-17 permanent fund for rural health facility capital improvement 8-18 established by Section 403.1065, Government Code, as added by this 8-19 Act. 8-20 SECTION 4. The importance of this legislation and the 8-21 crowded condition of the calendars in both houses create an 8-22 emergency and an imperative public necessity that the 8-23 constitutional rule requiring bills to be read on three several 8-24 days in each house be suspended, and this rule is hereby suspended, 8-25 and that this Act take effect and be in force from and after its 8-26 passage, and it is so enacted.