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 fund in the same manner
1-22 as the board manages and invests other permanent endowments. In
1-23 administering the fund, the board shall invest any funds in a
1-24 manner that preserves the purchasing power of the fund's assets and
2-1 the fund's annual distributions. The board shall determine the
2-2 amount available for distribution from the fund in a manner
2-3 consistent with the board's procedures for making distributions to
2-4 other endowment beneficiaries. The amount available for
2-5 distribution shall be determined by the investment and distribution
2-6 policy for the fund's assets adopted by the board. Expenses of
2-7 managing the fund's assets shall be paid from the fund.
2-8 (b) Except as provided by Subsections (c), (d), and (f),
2-9 money in the fund may not be used for any purpose.
2-10 (c) The amount available for distribution from the fund may
2-11 be appropriated only for programs that benefit medical research,
2-12 health education, or treatment programs at the following
2-13 health-related institutions of higher education:
2-14 (1) The University of Texas Health Science Center at
2-15 San Antonio;
2-16 (2) The University of Texas M. D. Anderson Cancer
2-17 Center;
2-18 (3) The University of Texas Southwestern Medical
2-19 Center at Dallas;
2-20 (4) The University of Texas Medical Branch at
2-21 Galveston;
2-22 (5) The University of Texas Health Science Center at
2-23 Houston;
2-24 (6) The University of Texas Health Science Center at
2-25 Tyler;
2-26 (7) The Texas A&M University Health Science Center;
2-27 (8) the University of North Texas Health Science
3-1 Center at Fort Worth;
3-2 (9) the Texas Tech University Health Sciences Center;
3-3 and
3-4 (10) Baylor College of Medicine, if a contract between
3-5 Baylor College of Medicine and the Texas Higher Education
3-6 Coordinating Board is in effect under Section 61.092.
3-7 (d) The governing board of a health-related institution of
3-8 higher education entitled to receive money under this subchapter
3-9 may solicit and accept gifts and grants to the fund. A gift or
3-10 grant to the fund shall be appropriated and distributed and may be
3-11 used in the same manner as an amount appropriated under Section
3-12 63.003, subject to any limitation or requirement placed on the gift
3-13 or grant by the donor or granting entity.
3-14 (e) Sections 403.095 and 404.071, Government Code, do not
3-15 apply to the fund. Section 404.094(d), Government Code, applies to
3-16 the fund.
3-17 (f) An institution of higher education that has accepted a
3-18 gift under Subchapter I, Chapter 51, that was conditioned on the
3-19 receipt by the institution of state matching funds from the eminent
3-20 scholars fund may use money the institution receives under this
3-21 subchapter to provide the state matching funds, treating that
3-22 amount as if it were a distribution to the institution from the
3-23 eminent scholars fund for purposes of Subchapter I, Chapter 51.
3-24 Sec. 63.003. ALLOCATION OF DISTRIBUTION. (a) The
3-25 legislature shall appropriate the amount available for distribution
3-26 from the fund to the health-related institutions of higher
3-27 education listed in Section 63.002(c). The amount appropriated
4-1 shall be distributed as follows:
4-2 (1) 70 percent shall be distributed in equal amounts
4-3 to each institution; and
4-4 (2) the remaining amount shall be distributed in equal
4-5 amounts for each of the following categories, with each institution
4-6 receiving a share in each category proportionate to the amount that
4-7 the institution spent in that category in the preceding fiscal
4-8 biennium as determined by the institution's annual financial
4-9 report, compared to the total spending of every institution listed
4-10 in Section 63.002(c) in that category in the preceding biennium:
4-11 (A) instructional expenditures;
4-12 (B) research expenditures; and
4-13 (C) unsponsored charity care.
4-14 (b) The amount appropriated under Subsection (a) shall be
4-15 distributed quarterly by the comptroller to each health-related
4-16 institution of higher education.
4-17 (c) The Legislative Budget Board shall make any necessary
4-18 determination of each institution's portion of an amount
4-19 appropriated under Subsection (a)(2) and shall provide that
4-20 information to the legislature and the comptroller.
4-21 (d) For the purposes of this section, Baylor College of
4-22 Medicine may receive funds under Subsection (a)(2) only if the
4-23 institution provides the comptroller with an independently audited
4-24 schedule of information that substantially complies with the
4-25 reporting requirements issued by the comptroller for other eligible
4-26 institutions under Subsection (a)(2). Information under this
4-27 subsection must be supplied not later than the time other eligible
5-1 institutions are required to submit similar information.
5-2 Sec. 63.004. REPORTING REQUIREMENT. An institution
5-3 receiving a distribution from the permanent fund established under
5-4 this subchapter shall provide a report to the Legislative Budget
5-5 Board no later than November 1 of each year. The report shall
5-6 include the total amount of money the institution received from the
5-7 fund, the purpose for which the money was used, and any additional
5-8 information that may be requested by the Legislative Budget Board.
5-9 (Sections 63.005-63.100 reserved for expansion
5-10 SUBCHAPTER B. PERMANENT FUNDS FOR HEALTH-RELATED INSTITUTIONS
5-11 Sec. 63.101. CREATION OF FUNDS. (a) A separate permanent
5-12 endowment fund is established for the benefit of each of the
5-13 following institutions of higher education:
5-14 (1) The University of Texas Health Science Center at
5-15 San Antonio;
5-16 (2) The University of Texas M. D. Anderson Cancer
5-17 Center;
5-18 (3) The University of Texas Southwestern Medical
5-19 Center at Dallas;
5-20 (4) The University of Texas Medical Branch at
5-21 Galveston;
5-22 (5) The University of Texas Health Science Center at
5-23 Houston;
5-24 (6) The University of Texas Health Science Center at
5-25 Tyler;
5-26 (7) The University of Texas at El Paso;
5-27 (8) The Texas A&M University Health Science Center;
6-1 (9) the University of North Texas Health Science
6-2 Center at Fort Worth;
6-3 (10) the components of the Texas Tech University
6-4 Health Sciences Center located in El Paso;
6-5 (11) the components of the Texas Tech University
6-6 Health Sciences Center at locations other than El Paso;
6-7 (12) the regional academic health center established
6-8 under Section 74.611; and
6-9 (13) Baylor College of Medicine, if a contract between
6-10 Baylor College of Medicine and the Texas Higher Education
6-11 Coordinating Board is in effect under Section 61.092.
6-12 (b) Each separate permanent endowment fund is a special fund
6-13 in the treasury outside the general revenue fund.
6-14 (c) Each separate permanent endowment fund is composed of:
6-15 (1) money transferred to the fund at the direction of
6-16 the legislature;
6-17 (2) gifts and grants contributed to the fund; and
6-18 (3) the returns received from investment of money in
6-19 the fund.
6-20 Sec. 63.102. ADMINISTRATION AND USE OF FUNDS. (a) The
6-21 governing board of an institution or component for which a fund is
6-22 established under this subchapter may administer the fund of that
6-23 institution. If a governing board elects not to administer the
6-24 fund, the comptroller shall administer the fund. The administrator
6-25 of a fund established under this subchapter shall invest the fund
6-26 in a manner intended to preserve the purchasing power of the fund's
6-27 assets and the fund's annual distributions. Annual distributions
7-1 for any fund shall be determined by the investment and distribution
7-2 policy adopted by the administrator of the fund for the fund's
7-3 assets. Expenses of managing the assets of a fund shall be paid
7-4 from the fund. If a governing board administers a fund, the
7-5 governing board may manage and invest the fund in the same manner
7-6 as the board manages and invests other permanent endowments, and
7-7 the board shall make distributions from the fund in a manner
7-8 consistent with the board's procedures for making distributions to
7-9 other endowment beneficiaries. If the comptroller administers a
7-10 fund, the comptroller may acquire, exchange, sell, supervise,
7-11 manage, or retain, through procedures and subject to restrictions
7-12 the comptroller considers appropriate, any kind of investment of
7-13 the fund's assets that prudent investors, exercising reasonable
7-14 care, skill, and caution, would acquire or retain in light of the
7-15 purposes, terms, distribution requirements, and other circumstances
7-16 of the fund then prevailing, taking into consideration the
7-17 investment of all the assets of the fund rather than a single
7-18 investment.
7-19 (b) Except as provided by Subsections (c), (d), and (f),
7-20 money in a fund established under this subchapter may not be used
7-21 for any purpose.
7-22 (c) The amount available for distribution from each fund may
7-23 be appropriated only for research and other programs that are
7-24 conducted by the institution or components for which the fund is
7-25 established and that benefit the public health. The comptroller or
7-26 the governing board shall report to the legislature the amount of
7-27 funds that are eligible for appropriation. An amount appropriated
8-1 from the fund established for The University of Texas Health
8-2 Science Center at San Antonio may be used to establish, maintain,
8-3 and operate a children's cancer center and the campus extension in
8-4 the city of Laredo. An amount appropriated from the funds
8-5 established for the components of the Texas Tech University Health
8-6 Sciences Center located in El Paso and for The University of Texas
8-7 at El Paso may be used for the establishment and operation of an
8-8 institute of public health in El Paso. An amount appropriated from
8-9 the fund established for the components of the Texas Tech
8-10 University Health Sciences Center at locations other than El Paso
8-11 may be used for research and other programs that benefit the public
8-12 health in areas outside El Paso. An amount appropriated from the
8-13 fund established for The Texas A&M University Health Science Center
8-14 may be used for the establishment and operation of the Coastal Bend
8-15 Health Education Center in Corpus Christi.
8-16 (d) The comptroller or the governing board of an institution
8-17 or component may solicit and accept gifts and grants to the
8-18 institution's or component's fund. A gift or grant to the fund may
8-19 be expended and used in the same manner as an amount distributed
8-20 from the fund under Subsection (c), subject to any limitation or
8-21 requirement placed on the gift or grant by the donor or granting
8-22 entity.
8-23 (e) Sections 403.095 and 404.071, Government Code, do not
8-24 apply to a fund established under this subchapter. Section
8-25 404.094(d), Government Code, applies to the fund.
8-26 (f) An institution of higher education that has accepted a
8-27 gift under Subchapter I, Chapter 51, that was conditioned on the
9-1 receipt by the institution of state matching funds from the eminent
9-2 scholars fund may use money the institution receives under this
9-3 subchapter to provide the state matching funds, treating that
9-4 amount as if it were a distribution to the institution from the
9-5 eminent scholars fund for purposes of Subchapter I, Chapter 51.
9-6 Sec. 63.103. REPORTING REQUIREMENT. Each institution listed
9-7 in Section 63.101 shall provide a report on the permanent fund
9-8 established under this subchapter for the benefit of the
9-9 institution to the Legislative Budget Board no later than November
9-10 1 of each year. The report shall include the total amount of money
9-11 the institution received from the fund, the purpose for which the
9-12 money was used, and any additional information that may be
9-13 requested by the Legislative Budget Board.
9-14 (Sections 63.104-63.200 reserved for expansion
9-15 SUBCHAPTER C. PERMANENT FUND FOR HIGHER EDUCATION NURSING,
9-16 ALLIED HEALTH, AND OTHER HEALTH-RELATED PROGRAMS
9-17 Sec. 63.201. PERMANENT FUND FOR HIGHER EDUCATION NURSING,
9-18 ALLIED HEALTH, AND OTHER HEALTH-RELATED PROGRAMS. (a) The
9-19 permanent fund for higher education nursing, allied health, and
9-20 other health-related programs is a special fund in the treasury
9-21 outside the general revenue fund.
9-22 (b) The fund is composed of:
9-23 (1) money transferred to the fund at the direction of
9-24 the legislature;
9-25 (2) gifts and grants contributed to the fund; and
9-26 (3) the returns received from investment of money in
9-27 the fund.
10-1 Sec. 63.202. ADMINISTRATION AND USE OF FUND. (a) The
10-2 comptroller may contract with the governing board of any
10-3 institution or component that is eligible to receive a grant under
10-4 Subsection (c) to administer the fund. If a governing board
10-5 administers the fund, the governing board may manage and invest the
10-6 money in the fund in the same manner as the board manages and
10-7 invests other permanent endowments. The administrator of the fund
10-8 shall invest any fund in a manner that preserves the purchasing
10-9 power of the fund's assets and the fund's annual distributions.
10-10 (b) Except as provided by Subsections (c) and (d), money in
10-11 the fund established under this subchapter may not be used for any
10-12 purpose.
10-13 (c) The investment returns of the fund may be appropriated
10-14 to the Texas Higher Education Coordinating Board for the purpose of
10-15 providing grants to public institutions of higher education that
10-16 offer upper-level academic instruction and training in the field of
10-17 nursing, allied health, or other health-related education. The
10-18 coordinating board shall adopt rules relating to the award of
10-19 grants under this subchapter and may, in awarding grants, consider
10-20 the impact the grant will have on academic instruction and training
10-21 in the field of nursing, allied health, or other health-related
10-22 education in this state. An institution or component that is
10-23 eligible to receive funding under Subchapter A or B is not eligible
10-24 to receive a grant under this subchapter. The comptroller or the
10-25 governing board shall report to the legislature the amount of funds
10-26 that are available for appropriation under this section.
10-27 (d) The comptroller or the governing board that administers
11-1 the fund may solicit and accept gifts and grants for the benefit of
11-2 the fund. A gift or grant to the fund may be expended and used in
11-3 the same manner as the investment returns of the fund under
11-4 Subsection (c), subject to any limitation or requirement placed on
11-5 the gift or grant by the donor or granting entity.
11-6 (e) Sections 403.095 and 404.071, Government Code, do not
11-7 apply to a fund established under this subchapter.
11-8 Sec. 63.203. REPORTING REQUIREMENT. The Texas Higher
11-9 Education Coordinating Board shall provide a report on the
11-10 permanent fund established under this subchapter to the Legislative
11-11 Budget Board no later than November 1 of each year. The report
11-12 shall include the total amount of money distributed from the fund,
11-13 the names of the institutions receiving grants, the purpose for
11-14 which the grants were used, and any additional information that may
11-15 be requested by the Legislative Budget Board.
11-16 (Sections 63.204-63.300 reserved for expansion
11-17 SUBCHAPTER D. PERMANENT FUND FOR MINORITY HEALTH
11-18 RESEARCH AND EDUCATION
11-19 Sec. 63.301. PERMANENT FUND FOR MINORITY HEALTH RESEARCH AND
11-20 EDUCATION. (a) The permanent fund for minority health research
11-21 and education is a special fund in the treasury outside the general
11-22 revenue fund.
11-23 (b) The fund is composed of:
11-24 (1) money transferred to the fund at the direction of
11-25 the legislature;
11-26 (2) gifts and grants contributed to the fund; and
11-27 (3) the returns received from investment of money in
12-1 the fund.
12-2 Sec. 63.302. ADMINISTRATION AND USE OF FUND. (a) The
12-3 comptroller may contract with the governing board of any
12-4 institution or component that is eligible to receive a grant under
12-5 Subsection (c) to administer the fund. If a governing board
12-6 administers the fund, the governing board may manage and invest the
12-7 money in the same manner as the board manages and invests other
12-8 permanent funds. The administrator of the fund shall invest any
12-9 fund in a manner that preserves the purchasing power of the fund's
12-10 assets and the fund's annual distributions.
12-11 (b) Except as provided by Subsections (c) and (e), money in
12-12 the fund established under this subchapter may not be used for any
12-13 purpose.
12-14 (c) The investment returns of the fund may be appropriated
12-15 to the Texas Higher Education Coordinating Board for the purpose of
12-16 providing grants to institutions of higher education, including
12-17 Centers for Teacher Education, that conduct research or educational
12-18 programs that address minority health issues or form partnerships
12-19 with minority organizations, colleges, or universities to conduct
12-20 research and educational programs that address minority health
12-21 issues.
12-22 (d) The coordinating board shall adopt rules relating to the
12-23 award of grants under this subchapter.
12-24 (e) The comptroller or governing board that administers the
12-25 fund may solicit and accept gifts and grants for the benefit of the
12-26 fund. A gift or grant to the fund may be expended and used in the
12-27 same manner as the investment returns of the fund under Subsection
13-1 (c), subject to any limitation or requirement placed on the gift or
13-2 grant by the donor or granting entity.
13-3 (f) The coordinating board shall report to the legislature
13-4 annually the total amount of funds awarded and a brief description
13-5 of each grant, including the name of the institution receiving the
13-6 grant, the amount and purpose of the grant, and the partnership
13-7 formed to conduct the research or educational programs authorized
13-8 under Subsection (c).
13-9 (g) Sections 403.095 and 404.071, Government Code, do not
13-10 apply to a fund established under this subchapter.
13-11 SECTION 2. Section 61.092, Education Code, is amended to
13-12 read as follows:
13-13 Sec. 61.092. CONTRACTS WITH BAYLOR COLLEGE OF MEDICINE.
13-14 (a) The board may contract with Baylor College of Medicine for the
13-15 administration, direction, and performance of all services and the
13-16 provision, maintenance, operation, and repair of all buildings,
13-17 facilities, structures, equipment, and materials necessary or
13-18 proper to the education, training, preparation, or instruction of
13-19 bona fide Texas resident undergraduate medical students.
13-20 (b) Funds received by Baylor College of Medicine under
13-21 Subchapter A or B, Chapter 63, may be used only to support programs
13-22 that benefit medical research, health education, or treatment
13-23 programs at the institution.
13-24 (c) If Baylor College of Medicine elects to administer the
13-25 fund established for the institution under Subchapter B, Chapter
13-26 63, Baylor College of Medicine and the board must enter into a
13-27 contract that requires Baylor College of Medicine to administer the
14-1 fund in the same manner and subject to the same regulations,
14-2 including disclosure requirements, as would apply to the
14-3 comptroller if the comptroller were administering a fund under
14-4 Subchapter B, Chapter 63.
14-5 (d) This [However, nothing in this] subchapter may not be
14-6 construed to empower the board to limit, alter, modify, or in any
14-7 other manner change or approve, or negotiate for changes in or
14-8 approval of, the administration, direction, and performance of
14-9 these services or the provision, maintenance, operation, and repair
14-10 of buildings, facilities, structures, equipment, or materials.
14-11 SECTION 3. (a) On the effective date of this Act, the
14-12 comptroller shall transfer $350 million from the general revenue
14-13 fund to the permanent health fund for higher education established
14-14 by Subchapter A, Chapter 63, Education Code, as added by this Act.
14-15 (b) On the effective date of this Act, the comptroller shall
14-16 transfer from the general revenue fund to the separate permanent
14-17 endowment trust fund established by Subchapter B, Chapter 63,
14-18 Education Code, as added by this Act, for each of the following
14-19 institutions of higher education or components of an institution of
14-20 higher education the following amounts:
14-21 (1) The University of Texas Health Science Center at
14-22 San Antonio - $200 million;
14-23 (2) The University of Texas M. D. Anderson Cancer
14-24 Center - $100 million;
14-25 (3) The University of Texas Southwestern Medical
14-26 Center at Dallas - $50 million;
14-27 (4) The University of Texas Medical Branch at
15-1 Galveston - $25 million;
15-2 (5) The University of Texas Health Science Center at
15-3 Houston - $25 million;
15-4 (6) The University of Texas Health Science Center at
15-5 Tyler - $25 million;
15-6 (7) The University of Texas at El Paso - $25 million;
15-7 (8) The Texas A&M University Health Science
15-8 Center - $25 million;
15-9 (9) the University of North Texas Health Science
15-10 Center at Fort Worth - $25 million;
15-11 (10) the components of the Texas Tech University
15-12 Health Sciences Center located in El Paso - $25 million;
15-13 (11) the components of the Texas Tech University
15-14 Health Sciences Center at locations other than El Paso - $25
15-15 million;
15-16 (12) the regional academic health center established
15-17 under Section 74.611, Education Code - $20 million; and
15-18 (13) Baylor College of Medicine - $25 million.
15-19 (c) On the effective date of this Act, the comptroller shall
15-20 transfer $45 million from the general revenue fund to the permanent
15-21 fund for higher education nursing, allied health, and other
15-22 health-related programs established by Subchapter C, Chapter 63,
15-23 Education Code, as added by this Act.
15-24 (d) On the effective date of this Act, the comptroller shall
15-25 transfer $25 million from the general revenue fund to the permanent
15-26 fund for minority health research and education established by
15-27 Subchapter D, Chapter 63, Education Code, as added by this Act.
16-1 (e) On the effective date of this Act, the comptroller shall
16-2 transfer $1 million from the general revenue fund to the Texas
16-3 Higher Education Coordinating Board to fund a contract with the
16-4 Baylor University Medical Center in Dallas for the Institute of
16-5 Metabolic Disease to study the relationship of maternal smoking and
16-6 metabolic derangements to the impaired growth rate in low-weight
16-7 infants, and for the Division of Prevention and Wellness to support
16-8 an antitobacco task force. If the coordinating board enters into a
16-9 contract under this subsection, the coordinating board shall enter
16-10 into the contract in the same manner as a contract entered into
16-11 under Section 61.092, Education Code, as amended by this Act.
16-12 (f) In addition to the permissible appropriations and uses
16-13 of the funds transferred to the permanent funds for health-related
16-14 institutions established under Chapter 63, Education Code, as added
16-15 by this Act, the funds may also be appropriated by the legislature
16-16 to pay any amount of money that the federal government determines
16-17 that the state should repay to the federal government or that the
16-18 federal government should recoup from the state in the event of
16-19 national legislation regarding the subject matter of the case
16-20 styled The State of Texas v. The American Tobacco Co., et al., No.
16-21 5-96CV-91, in the United States District Court, Eastern District of
16-22 Texas.
16-23 SECTION 4. The importance of this legislation and the
16-24 crowded condition of the calendars in both houses create an
16-25 emergency and an imperative public necessity that the
16-26 constitutional rule requiring bills to be read on three several
16-27 days in each house be suspended, and this rule is hereby suspended,
17-1 and that this Act take effect and be in force from and after its
17-2 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1945 was passed by the House on April
22, 1999, by a non-record vote; that the House refused to concur in
Senate amendments to H.B. No. 1945 on May 13, 1999, and requested
the appointment of a conference committee to consider the
differences between the two houses; and that the House adopted the
conference committee report on H.B. No. 1945 on May 27, 1999, by a
non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1945 was passed by the Senate, with
amendments, on May 11, 1999, by the following vote: Yeas 28, Nays
0, 2 present, not voting; at the request of the House, the Senate
appointed a conference committee to consider the differences
between the two houses; and that the Senate adopted the conference
committee report on H.B. No. 1945 on May 29, 1999, by the following
vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor