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.