By Junell, Cuellar H.B. No. 1945
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of permanent funds for certain public
1-3 health purposes conducted by institutions of higher education.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle B, Title 3, Education Code, is amended
1-6 by adding Chapter 63 to read as follows:
1-7 CHAPTER 63. PERMANENT FUNDS FOR HEALTH-RELATED INSTITUTIONS
1-8 OF HIGHER EDUCATION
1-9 SUBCHAPTER A. PERMANENT HEALTH FUND FOR HIGHER EDUCATION
1-10 Sec. 63.001. PERMANENT HEALTH FUND FOR HIGHER EDUCATION.
1-11 (a) The permanent health fund for higher education is a special
1-12 fund in the treasury outside the general revenue fund.
1-13 (b) The fund is composed of:
1-14 (1) money transferred to the fund at the direction of
1-15 the legislature;
1-16 (2) gifts and grants contributed to the fund; and
1-17 (3) the returns received from investment of money in
1-18 the fund.
1-19 Sec. 63.002. ADMINISTRATION AND USE OF FUND. (a) The board
1-20 of regents of The University of Texas System shall administer the
1-21 fund. The board may manage and invest the money in the fund in the
1-22 same manner as the board manages and invests other permanent
1-23 endowments. In administering the fund, the board shall invest any
1-24 funds in a manner that preserves the purchasing power of the fund's
2-1 assets and the fund's annual distributions.
2-2 (b) Except as provided by Subsections (c) and (d), money in
2-3 the fund may not be used for any purpose.
2-4 (c) The investment returns of the fund may be appropriated
2-5 only for programs that benefit medical research, health education,
2-6 or treatment programs at the following health-related institutions
2-7 of higher education:
2-8 (1) The University of Texas Health Science Center at
2-9 San Antonio;
2-10 (2) The University of Texas M. D. Anderson Cancer
2-11 Center;
2-12 (3) The University of Texas Southwestern Medical
2-13 Center at Dallas;
2-14 (4) The University of Texas Medical Branch at
2-15 Galveston;
2-16 (5) The University of Texas Health Science Center at
2-17 Houston;
2-18 (6) The University of Texas Health Science Center at
2-19 Tyler;
2-20 (7) The Texas A&M University Health Science Center;
2-21 (8) the University of North Texas Health Science
2-22 Center at Fort Worth;
2-23 (9) the Texas Tech University Health Sciences Center;
2-24 and
2-25 (10) Baylor College of Medicine, if a contract between
2-26 Baylor College of Medicine and the Texas Higher Education
2-27 Coordinating Board is in effect under Section 61.092.
3-1 (d) The governing board of a health-related institution of
3-2 higher education entitled to receive money under this subchapter
3-3 may solicit and accept gifts and grants to the fund. A gift or
3-4 grant to the fund shall be distributed and may be used in the same
3-5 manner as the investment returns of the fund, subject to any
3-6 limitation or requirement placed on the gift or grant by the donor
3-7 or granting entity.
3-8 (e) Sections 403.095 and 404.071, Government Code, do not
3-9 apply to the fund.
3-10 Sec. 63.003. DISTRIBUTION OF INVESTMENT RETURNS. (a) The
3-11 legislature shall appropriate the investment returns of the fund
3-12 to the health-related institutions of higher education listed in
3-13 Section 63.002(c). The amount appropriated shall be distributed as
3-14 follows:
3-15 (1) 75 percent shall be distributed in equal amounts
3-16 to each institution; and
3-17 (2) the remaining amount shall be distributed in equal
3-18 amounts for each of the following categories, with each institution
3-19 receiving a share in each category proportionate to the amount that
3-20 the institution spent in that category in the preceding fiscal
3-21 biennium as determined by the institution's annual financial
3-22 report, compared to the total spending of every institution listed
3-23 in Section 63.002(c) in that category in the preceding biennium:
3-24 (A) instructional expenditures;
3-25 (B) research expenditures; and
3-26 (C) unsponsored charity care.
3-27 (b) The amount of investment returns appropriated under
4-1 Subsection (a) shall be distributed quarterly by the comptroller to
4-2 each health-related institution of higher education.
4-3 (c) The Legislative Budget Board shall make any necessary
4-4 determination of each institution's portion of investment returns
4-5 under Subsection (a)(2) and shall provide that information to the
4-6 legislature and the comptroller.
4-7 (d) For the purposes of this section, Baylor College of
4-8 Medicine may receive funds under Subsection (a)(2) only if the
4-9 institution provides the comptroller with an independently audited
4-10 schedule of information that substantially complies with the
4-11 reporting requirements issued by the comptroller for other eligible
4-12 institutions under Subsection (a)(2). Information under this
4-13 subsection must be supplied not later than the time other eligible
4-14 institutions are required to submit similar information.
4-15 Sec. 63.004. REPORTING REQUIREMENT. An institution
4-16 receiving a distribution from the permanent fund established under
4-17 this subchapter shall provide a report to the Legislative Budget
4-18 Board no later than November 1 of each year. The report shall
4-19 include the total amount of money the institution received from the
4-20 fund, the purpose for which the money was used, and any additional
4-21 information that may be requested by the Legislative Budget Board.
4-22 (Sections 63.005-63.100 reserved for expansion
4-23 SUBCHAPTER B. PERMANENT FUNDS FOR HEALTH-RELATED INSTITUTIONS
4-24 Sec. 63.101. CREATION OF FUNDS. (a) A separate permanent
4-25 endowment fund is established for the benefit of each of the
4-26 following institutions of higher education:
4-27 (1) The University of Texas Health Science Center at
5-1 San Antonio;
5-2 (2) The University of Texas M. D. Anderson Cancer
5-3 Center;
5-4 (3) The University of Texas Southwestern Medical
5-5 Center at Dallas;
5-6 (4) The University of Texas Medical Branch at
5-7 Galveston;
5-8 (5) The University of Texas Health Science Center at
5-9 Houston;
5-10 (6) The University of Texas Health Science Center at
5-11 Tyler;
5-12 (7) The University of Texas at El Paso;
5-13 (8) The Texas A&M University Health Science Center;
5-14 (9) the University of North Texas Health Science
5-15 Center at Fort Worth;
5-16 (10) the components of the Texas Tech University
5-17 Health Sciences Center located in El Paso;
5-18 (11) the components of the Texas Tech University
5-19 Health Sciences Center at locations other than El Paso; and
5-20 (12) the regional academic health center established
5-21 under Section 74.611.
5-22 (b) Each separate permanent endowment fund is a special fund
5-23 in the treasury outside the general revenue fund.
5-24 (c) Each separate permanent endowment fund is composed of:
5-25 (1) money transferred to the fund at the direction of
5-26 the legislature;
5-27 (2) gifts and grants contributed to the fund; and
6-1 (3) the returns received from investment of money in
6-2 the fund.
6-3 Sec. 63.102. ADMINISTRATION AND USE OF FUNDS. (a) The
6-4 comptroller may contract with the governing board of any
6-5 institution or components for which a fund is established under
6-6 this subchapter to administer any fund. If a governing board
6-7 administers a fund, the governing board may manage and invest the
6-8 money in the fund in the same manner as the board manages and
6-9 invests other permanent endowments. The administrator of the fund
6-10 shall invest any fund in a manner that preserves the purchasing
6-11 power of the fund's assets and the fund's annual distributions.
6-12 (b) Except as provided by Subsections (c) and (d), money in
6-13 a fund established under this subchapter may not be used for any
6-14 purpose.
6-15 (c) The investment returns of each fund may be appropriated
6-16 only for research and other programs that are conducted by the
6-17 institution or components for which the fund is established and
6-18 that benefit the public health. The comptroller or the governing
6-19 board shall report to the legislature the amount of funds that are
6-20 eligible for appropriation. The investment returns of the fund
6-21 established for The University of Texas Health Science Center at
6-22 San Antonio may be used to establish, maintain, and operate a
6-23 children's cancer center. The investment returns of the funds
6-24 established for the components of the Texas Tech University Health
6-25 Sciences Center located in El Paso and for The University of Texas
6-26 at El Paso may be used for the establishment and operation of an
6-27 institute of public health in El Paso. The investment returns of
7-1 the fund established for the components of the Texas Tech
7-2 University Health Sciences Center at locations other than El Paso
7-3 may be used for research and other programs that benefit the public
7-4 health in areas outside El Paso.
7-5 (d) The comptroller or the governing board of an institution
7-6 or component may solicit and accept gifts and grants to the
7-7 institution or component's fund. A gift or grant to the fund may
7-8 be expended and used in the same manner as the investment returns
7-9 of the fund under Subsection (c), subject to any limitation or
7-10 requirement placed on the gift or grant by the donor or granting
7-11 entity.
7-12 (e) Sections 403.095 and 404.071, Government Code, do not
7-13 apply to a fund established under this subchapter.
7-14 Sec. 63.103. REPORTING REQUIREMENT. Each institution listed
7-15 in Section 63.101 shall provide a report on the permanent fund
7-16 established under this subchapter for the benefit of the
7-17 institution to the Legislative Budget Board no later than November
7-18 1 of each year. The report shall include the total amount of money
7-19 the institution received from the fund, the purpose for which the
7-20 money was used, and any additional information that may be
7-21 requested by the Legislative Budget Board.
7-22 (Sections 63.104-63.200 reserved for expansion
7-23 SUBCHAPTER C. PERMANENT FUND FOR HIGHER EDUCATION NURSING,
7-24 ALLIED HEALTH, AND OTHER HEALTH-RELATED PROGRAMS
7-25 Sec. 63.201. PERMANENT FUND FOR HIGHER EDUCATION NURSING,
7-26 ALLIED HEALTH, AND OTHER HEALTH-RELATED PROGRAMS. (a) The
7-27 permanent fund for higher education nursing, allied health, and
8-1 other health-related programs is a special fund in the treasury
8-2 outside the general revenue fund.
8-3 (b) The fund is composed of:
8-4 (1) money transferred to the fund at the direction of
8-5 the legislature;
8-6 (2) gifts and grants contributed to the fund; and
8-7 (3) the returns received from investment of money in
8-8 the fund.
8-9 Sec. 63.202. ADMINISTRATION AND USE OF FUND. (a) The
8-10 comptroller may contract with the governing board of any
8-11 institution or component that is eligible to receive a grant under
8-12 Subsection (c) to administer the fund. If a governing board
8-13 administers the fund, the governing board may manage and invest the
8-14 money in the fund in the same manner as the board manages and
8-15 invests other permanent endowments. The administrator of the fund
8-16 shall invest any fund in a manner that preserves the purchasing
8-17 power of the fund's assets and the fund's annual distributions.
8-18 (b) Except as provided by Subsections (c) and (d), money in
8-19 the fund established under this subchapter may not be used for any
8-20 purpose.
8-21 (c) The investment returns of the fund may be appropriated
8-22 to the Texas Higher Education Coordinating Board for the purpose of
8-23 providing grants to public institutions of higher education that
8-24 offer upper-level academic instruction and training in the field of
8-25 nursing, allied health, or other health-related education. The
8-26 coordinating board shall adopt rules relating to the award of
8-27 grants under this subchapter and may, in awarding grants, consider
9-1 the impact the grant will have on academic instruction and training
9-2 in the field of nursing, allied health, or other health-related
9-3 education in this state. An institution or component that is
9-4 eligible to receive funding under Subchapter A or B is not eligible
9-5 to receive a grant under this subchapter. The comptroller or the
9-6 governing board shall report to the legislature the amount of funds
9-7 that are available for appropriation under this section.
9-8 (d) The comptroller or the governing board that administers
9-9 the fund may solicit and accept gifts and grants for the benefit of
9-10 the fund. A gift or grant to the fund may be expended and used in
9-11 the same manner as the investment returns of the fund under
9-12 Subsection (c), subject to any limitation or requirement placed on
9-13 the gift or grant by the donor or granting entity.
9-14 (e) Sections 403.095 and 404.071, Government Code, do not
9-15 apply to a fund established under this subchapter.
9-16 Sec. 63.203. REPORTING REQUIREMENT. The Texas Higher
9-17 Education Coordinating Board shall provide a report on the
9-18 permanent fund established under this subchapter to the Legislative
9-19 Budget Board no later than November 1 of each year. The report
9-20 shall include the total amount of money distributed from the fund,
9-21 the names of the institutions receiving grants, the purpose for
9-22 which the grants were used, and any additional information that may
9-23 be requested by the Legislative Budget Board.
9-24 (Sections 63.204-63.300 reserved for expansion
9-25 SUBCHAPTER D. PERMANENT FUND FOR MINORITY HEALTH
9-26 RESEARCH AND EDUCATION
9-27 Sec. 63.301. PERMANENT FUND FOR MINORITY HEALTH RESEARCH AND
10-1 EDUCATION. (a) The permanent fund for minority health research
10-2 and education is a special fund in the treasury outside the general
10-3 revenue fund.
10-4 (b) The fund is composed of:
10-5 (1) money transferred to the fund at the direction of
10-6 the legislature;
10-7 (2) gifts and grants contributed to the fund; and
10-8 (3) the returns received from investment of money in
10-9 the fund.
10-10 Sec. 63.302. ADMINISTRATION AND USE OF FUND. (a) The
10-11 comptroller may contract with the governing board of any
10-12 institution or component that is eligible to receive a grant under
10-13 Subsection (c) to administer the fund. If a governing board
10-14 administers the fund, the governing board may manage and invest the
10-15 money in the same manner as the board manages and invests other
10-16 permanent funds. The administrator of the fund shall invest any
10-17 fund in a manner that preserves the purchasing power of the fund's
10-18 assets and the fund's annual distributions.
10-19 (b) Except as provided by Subsections (c) and (e), money in
10-20 the fund established under this subchapter may not be used for any
10-21 purpose.
10-22 (c) The investment returns of the fund may be appropriated
10-23 to the Texas Higher Education Coordinating Board for the purpose of
10-24 providing grants to institutions of higher education, including
10-25 Centers for Teacher Education, that conduct research or educational
10-26 programs that address minority health issues or form partnerships
10-27 with minority organizations, colleges, or universities to conduct
11-1 research and educational programs that address minority health
11-2 issues.
11-3 (d) The coordinating board shall adopt rules relating to the
11-4 award of grants under this subchapter.
11-5 (e) The comptroller or governing board that administers the
11-6 fund may solicit and accept gifts and grants for the benefit of the
11-7 fund. A gift or grant to the fund may be expended and used in the
11-8 same manner as the investment returns of the fund under Subsection
11-9 (c), subject to any limitation or requirement placed on the gift or
11-10 grant by the donor or granting entity.
11-11 (f) The coordinating board shall report to the legislature
11-12 annually the total amount of funds awarded and a brief description
11-13 of each grant, including the name of the institution receiving the
11-14 grant, the amount and purpose of the grant, and the partnership
11-15 formed to conduct the research or educational programs authorized
11-16 under Subsection (c).
11-17 (g) Sections 403.095 and 404.071, Government Code, do not
11-18 apply to a fund established under this subchapter.
11-19 SECTION 2. Section 61.092, Education Code, is amended to
11-20 read as follows:
11-21 Sec. 61.092. CONTRACTS WITH BAYLOR COLLEGE OF MEDICINE. (a)
11-22 The board may contract with Baylor College of Medicine for the
11-23 administration, direction, and performance of all services and the
11-24 provision, maintenance, operation, and repair of all buildings,
11-25 facilities, structures, equipment, and materials necessary or
11-26 proper to the education, training, preparation, or instruction of
11-27 bona fide Texas resident undergraduate medical students.
12-1 (b) Funds received by Baylor College of Medicine under
12-2 Subchapter A, Chapter 63, may be used only to support programs that
12-3 benefit medical research, health education, or treatment programs
12-4 at the institution.
12-5 (c) This [However, nothing in this] subchapter may not be
12-6 construed to empower the board to limit, alter, modify, or in any
12-7 other manner change or approve, or negotiate for changes in or
12-8 approval of, the administration, direction, and performance of
12-9 these services or the provision, maintenance, operation, and repair
12-10 of buildings, facilities, structures, equipment, or materials.
12-11 SECTION 3. (a) On the effective date of this Act, the
12-12 comptroller shall transfer $375 million from the general revenue
12-13 fund to the permanent health fund for higher education established
12-14 by Subchapter A, Chapter 63, Education Code, as added by this Act.
12-15 (b) On the effective date of this Act, the comptroller shall
12-16 transfer from the general revenue fund to the separate permanent
12-17 endowment trust fund established by Subchapter B, Chapter 63,
12-18 Education Code, as added by this Act, for each of the following
12-19 institutions of higher education or components of an institution of
12-20 higher education the following amounts:
12-21 (1) The University of Texas Health Science Center at
12-22 San Antonio - $200 million;
12-23 (2) The University of Texas M. D. Anderson Cancer
12-24 Center - $100 million;
12-25 (3) The University of Texas Southwestern Medical
12-26 Center at Dallas - $50 million;
12-27 (4) The University of Texas Medical Branch at
13-1 Galveston - $25 million;
13-2 (5) The University of Texas Health Science Center at
13-3 Houston - $25 million;
13-4 (6) The University of Texas Health Science Center at
13-5 Tyler - $25 million;
13-6 (7) The University of Texas at El Paso - $25 million;
13-7 (8) The Texas A&M University Health Science
13-8 Center - $25 million;
13-9 (9) the University of North Texas Health Science
13-10 Center at Fort Worth - $25 million;
13-11 (10) the components of the Texas Tech University
13-12 Health Sciences Center located in El Paso - $25 million;
13-13 (11) the components of the Texas Tech University
13-14 Health Sciences Center at locations other than El Paso - $25
13-15 million; and
13-16 (12) the regional academic health center established
13-17 under Section 74.611, Education Code - $5 million.
13-18 (c) On the effective date of this Act, the comptroller shall
13-19 transfer $46 million from the general revenue fund to the permanent
13-20 fund for higher education nursing, allied health, and other
13-21 health-related programs established by Subchapter C, Chapter 63,
13-22 Education Code, as added by this Act.
13-23 (d) On the effective date of this Act, the comptroller shall
13-24 transfer $25 million from the general revenue fund to the permanent
13-25 fund for minority health research and education established by
13-26 Subchapter D, Chapter 63, Education Code, as added by this Act.
13-27 (e) In addition to the permissible appropriations and uses
14-1 of the funds transferred to the permanent funds for health-related
14-2 institutions established under Chapter 63, Education Code, as added
14-3 by this Act, the funds may also be appropriated by the legislature
14-4 to pay any amount of money that the federal government determines
14-5 that the state should repay to the federal government or that the
14-6 federal government should recoup from the state in the event of
14-7 national legislation regarding the subject matter of the case
14-8 styled The State of Texas v. The American Tobacco Co., et al., No.
14-9 5-96CV-91, in the United States District Court, Eastern District of
14-10 Texas.
14-11 SECTION 4. This Act takes effect August 31, 1999.
14-12 SECTION 5. The importance of this legislation and the
14-13 crowded condition of the calendars in both houses create an
14-14 emergency and an imperative public necessity that the
14-15 constitutional rule requiring bills to be read on three several
14-16 days in each house be suspended, and this rule is hereby suspended.