76R9867 CAG-D
By Junell, Cuellar H.B. No. 1945
Substitute the following for H.B. No. 1945:
By Junell C.S.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) 60 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 (Sections 63.004-63.100 reserved for expansion
4-16 SUBCHAPTER B. PERMANENT FUNDS FOR HEALTH-RELATED INSTITUTIONS
4-17 Sec. 63.101. CREATION OF FUNDS. (a) A separate permanent
4-18 endowment fund is established for the benefit of each of the
4-19 following institutions of higher education:
4-20 (1) The University of Texas Health Science Center at
4-21 San Antonio;
4-22 (2) The University of Texas M. D. Anderson Cancer
4-23 Center;
4-24 (3) The University of Texas Southwestern Medical
4-25 Center at Dallas;
4-26 (4) The University of Texas Medical Branch at
4-27 Galveston;
5-1 (5) The University of Texas Health Science Center at
5-2 Houston;
5-3 (6) The University of Texas Health Science Center at
5-4 Tyler;
5-5 (7) The University of Texas at El Paso;
5-6 (8) The Texas A&M University Health Science Center;
5-7 (9) the University of North Texas Health Science
5-8 Center at Fort Worth;
5-9 (10) the components of the Texas Tech University
5-10 Health Sciences Center located in El Paso;
5-11 (11) the components of the Texas Tech University
5-12 Health Sciences Center at locations other than El Paso; and
5-13 (12) the regional academic health center established
5-14 under Section 74.611.
5-15 (b) Each separate permanent endowment fund is a special fund
5-16 in the treasury outside the general revenue fund.
5-17 (c) Each separate permanent endowment fund is composed of:
5-18 (1) money transferred to the fund at the direction of
5-19 the legislature;
5-20 (2) gifts and grants contributed to the fund; and
5-21 (3) the returns received from investment of money in
5-22 the fund.
5-23 Sec. 63.102. ADMINISTRATION AND USE OF FUNDS. (a) The
5-24 comptroller may contract with the governing board of any
5-25 institution or components for which a fund is established under
5-26 this subchapter to administer any fund. If a governing board
5-27 administers a fund, the governing board may manage and invest the
6-1 money in the fund in the same manner as the board manages and
6-2 invests other permanent endowments. The administrator of the fund
6-3 shall invest any fund in a manner that preserves the purchasing
6-4 power of the fund's assets and the fund's annual distributions.
6-5 (b) Except as provided by Subsections (c) and (d), money in
6-6 a fund established under this subchapter may not be used for any
6-7 purpose.
6-8 (c) The investment returns of each fund may be appropriated
6-9 only for research and other programs that are conducted by the
6-10 institution or components for which the fund is established and
6-11 that benefit the public health. The comptroller or the governing
6-12 board shall report to the legislature the amount of funds that are
6-13 eligible for appropriation. The investment returns of the fund
6-14 established for The University of Texas Health Science Center at
6-15 San Antonio may be used to establish, maintain, and operate a
6-16 children's cancer center. The investment returns of the funds
6-17 established for the components of the Texas Tech University Health
6-18 Sciences Center located in El Paso and for The University of Texas
6-19 at El Paso may be used for the establishment and operation of an
6-20 institute of public health in El Paso. The investment returns of
6-21 the fund established for the components of the Texas Tech
6-22 University Health Sciences Center at locations other than El Paso
6-23 may be used for research and other programs that benefit the public
6-24 health in areas outside El Paso.
6-25 (d) The comptroller or the governing board of an institution
6-26 or component may solicit and accept gifts and grants to the
6-27 institution or component's fund. A gift or grant to the fund may
7-1 be expended and used in the same manner as the investment returns
7-2 of the fund under Subsection (c), subject to any limitation or
7-3 requirement placed on the gift or grant by the donor or granting
7-4 entity.
7-5 (e) Sections 403.095 and 404.071, Government Code, do not
7-6 apply to a fund established under this subchapter.
7-7 (Sections 63.103-63.200 reserved for expansion
7-8 SUBCHAPTER C. PERMANENT FUND FOR HIGHER EDUCATION NURSING
7-9 AND ALLIED HEALTH PROGRAMS
7-10 Sec. 63.201. PERMANENT FUND FOR HIGHER EDUCATION NURSING AND
7-11 ALLIED HEALTH PROGRAMS. (a) The permanent fund for higher
7-12 education nursing and allied health programs is a special fund in
7-13 the treasury outside the general revenue fund.
7-14 (b) The fund is composed of:
7-15 (1) money transferred to the fund at the direction of
7-16 the legislature;
7-17 (2) gifts and grants contributed to the fund; and
7-18 (3) the returns received from investment of money in
7-19 the fund.
7-20 Sec. 63.202. ADMINISTRATION AND USE OF FUND. (a) The
7-21 comptroller may contract with the governing board of any
7-22 institution or component that is eligible to receive a grant under
7-23 Subsection (c) to administer the fund. If a governing board
7-24 administers the fund, the governing board may manage and invest the
7-25 money in the fund in the same manner as the board manages and
7-26 invests other permanent endowments. The administrator of the fund
7-27 shall invest any fund in a manner that preserves the purchasing
8-1 power of the fund's assets and the fund's annual distributions.
8-2 (b) Except as provided by Subsections (c) and (d), money in
8-3 the fund established under this subchapter may not be used for any
8-4 purpose.
8-5 (c) The investment returns of the fund may be appropriated
8-6 to the Texas Higher Education Coordinating Board for the purpose of
8-7 providing grants to public institutions of higher education that
8-8 offer upper-level academic instruction and training in the field of
8-9 nursing or allied health education. The coordinating board shall
8-10 adopt rules relating to the award of grants under this subchapter
8-11 and may, in awarding grants, consider the impact the grant will
8-12 have on academic instruction and training in the field of nursing
8-13 or allied health education in this state. An institution or
8-14 component that is eligible to receive funding under Subchapter A or
8-15 B is not eligible to receive a grant under this subchapter. The
8-16 comptroller or the governing board shall report to the legislature
8-17 the amount of funds that are available for appropriation under this
8-18 section.
8-19 (d) The comptroller or the governing board that administers
8-20 the fund may solicit and accept gifts and grants for the benefit of
8-21 the fund. A gift or grant to the fund may be expended and used in
8-22 the same manner as the investment returns of the fund under
8-23 Subsection (c), subject to any limitation or requirement placed on
8-24 the gift or grant by the donor or granting entity.
8-25 (e) Sections 403.095 and 404.071, Government Code, do not
8-26 apply to a fund established under this subchapter.
8-27 SECTION 2. Section 61.092, Education Code, is amended to
9-1 read as follows:
9-2 Sec. 61.092. CONTRACTS WITH BAYLOR COLLEGE OF MEDICINE.
9-3 (a) The board may contract with Baylor College of Medicine for the
9-4 administration, direction, and performance of all services and the
9-5 provision, maintenance, operation, and repair of all buildings,
9-6 facilities, structures, equipment, and materials necessary or
9-7 proper to the education, training, preparation, or instruction of
9-8 bona fide Texas resident undergraduate medical students.
9-9 (b) Funds received by Baylor College of Medicine under
9-10 Subchapter A, Chapter 63, may be used only to support programs that
9-11 benefit medical research, health education, or treatment programs
9-12 at the institution.
9-13 (c) This [However, nothing in this] subchapter may not be
9-14 construed to empower the board to limit, alter, modify, or in any
9-15 other manner change or approve, or negotiate for changes in or
9-16 approval of, the administration, direction, and performance of
9-17 these services or the provision, maintenance, operation, and repair
9-18 of buildings, facilities, structures, equipment, or materials.
9-19 SECTION 3. (a) On the effective date of this Act, the
9-20 comptroller shall transfer $400 million from the general revenue
9-21 fund to the permanent health fund for higher education established
9-22 by Subchapter A, Chapter 63, Education Code, as added by this Act.
9-23 (b) On the effective date of this Act, the comptroller shall
9-24 transfer from the general revenue fund to the separate permanent
9-25 endowment trust fund established by Subchapter B, Chapter 63,
9-26 Education Code, as added by this Act, for each of the following
9-27 institutions of higher education or components of an institution of
10-1 higher education the following amounts:
10-2 (1) The University of Texas Health Science Center at
10-3 San Antonio - $200 million;
10-4 (2) The University of Texas M. D. Anderson Cancer
10-5 Center - $100 million;
10-6 (3) The University of Texas Southwestern Medical
10-7 Center at Dallas - $50 million;
10-8 (4) The University of Texas Medical Branch at
10-9 Galveston - $25 million;
10-10 (5) The University of Texas Health Science Center at
10-11 Houston - $25 million;
10-12 (6) The University of Texas Health Science Center at
10-13 Tyler - $25 million;
10-14 (7) The University of Texas at El Paso - $25 million;
10-15 (8) The Texas A&M University Health Science
10-16 Center - $25 million;
10-17 (9) the University of North Texas Health Science
10-18 Center at Fort Worth - $25 million;
10-19 (10) the components of the Texas Tech University
10-20 Health Sciences Center located in El Paso - $25 million;
10-21 (11) the components of the Texas Tech University
10-22 Health Sciences Center at locations other than El Paso - $25
10-23 million; and
10-24 (12) the regional academic health center established
10-25 under Section 74.611, Education Code - $5 million.
10-26 (c) On the effective date of this Act, the comptroller shall
10-27 transfer $46 million from the general revenue fund to the permanent
11-1 fund for higher education nursing and allied health programs
11-2 established by Subchapter C, Chapter 63, Education Code, as added
11-3 by this Act.
11-4 (d) In addition to the permissible appropriations and uses
11-5 of the funds transferred to the permanent funds for health-related
11-6 institutions established under Chapter 63, Education Code, as added
11-7 by this Act, the funds may also be appropriated by the legislature
11-8 to pay any amount of money that the federal government determines
11-9 that the state should repay to the federal government or that the
11-10 federal government should recoup from the state in the event of
11-11 national legislation regarding the subject matter of the case
11-12 styled The State of Texas v. The American Tobacco Co., et al., No.
11-13 5-96CV-91, in the United States District Court, Eastern District of
11-14 Texas.
11-15 SECTION 4. This Act takes effect August 31, 1999.
11-16 SECTION 5. The importance of this legislation and the
11-17 crowded condition of the calendars in both houses create an
11-18 emergency and an imperative public necessity that the
11-19 constitutional rule requiring bills to be read on three several
11-20 days in each house be suspended, and this rule is hereby suspended.