By Junell H.B. No. 1945
76R7511 CAG-D
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. TRUST 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 separate
1-12 fund outside the treasury and within the restricted funds accounts
1-13 of the board of regents of The University of Texas System that may
1-14 be expended without appropriation by the board for the benefit of
1-15 beneficiary institutions under this subchapter.
1-16 (b) The fund is composed of:
1-17 (1) money deposited or transferred to the fund by
1-18 appropriation or under other law;
1-19 (2) gifts and grants contributed to the fund; and
1-20 (3) the earnings of the fund.
1-21 Sec. 63.002. ADMINISTRATION AND USE OF FUND. (a) The board
1-22 of regents of The University of Texas System shall administer the
1-23 fund. The board may manage and invest the money in the fund in the
1-24 same manner as the board manages and invests other permanent
2-1 endowments or the permanent university fund.
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 earnings of the fund may be used only for programs
2-5 that benefit medical research, health education, or treatment
2-6 programs at the following public health-related institutions of
2-7 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 any public health-related
3-2 institution of higher education entitled to receive money under
3-3 this subchapter may solicit and accept gifts and grants to the
3-4 fund. A gift or grant to the fund shall be distributed and may be
3-5 used in the same manner as the earnings 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 Sec. 63.003. DISTRIBUTION OF EARNINGS. (a) The earnings of
3-9 the fund shall be distributed to the public health-related
3-10 institutions of higher education listed in Section 63.002(c) as
3-11 follows:
3-12 (1) 60 percent of the earnings shall be distributed in
3-13 equal amounts to each institution; and
3-14 (2) the remaining earnings shall be distributed in
3-15 equal amounts for each of the following categories, with each
3-16 institution receiving a share in each category proportionate to the
3-17 amount that the institution spent in that category in the preceding
3-18 fiscal year, as determined by the institution's annual financial
3-19 report, compared to the total spending of every institution listed
3-20 in Section 63.002(c) in that category in that year:
3-21 (A) instructional expenditures;
3-22 (B) research expenditures; and
3-23 (C) unsponsored charity care.
3-24 (b) The earnings of the fund shall be distributed quarterly
3-25 by the board to each public health-related institution of higher
3-26 education.
3-27 (Sections 63.004-63.100 reserved for expansion
4-1 SUBCHAPTER B. ENDOWMENT FUNDS FOR HEALTH-RELATED INSTITUTIONS
4-2 Sec. 63.101. CREATION OF FUNDS. (a) A separate permanent
4-3 endowment trust fund is established with the comptroller for the
4-4 benefit of each of the following institutions of higher education:
4-5 (1) The University of Texas Health Science Center at
4-6 San Antonio;
4-7 (2) The University of Texas M. D. Anderson Cancer
4-8 Center;
4-9 (3) The University of Texas Southwestern Medical
4-10 Center at Dallas;
4-11 (4) The University of Texas Medical Branch at
4-12 Galveston;
4-13 (5) The University of Texas Health Science Center at
4-14 Houston;
4-15 (6) The University of Texas Health Science Center at
4-16 Tyler;
4-17 (7) The University of Texas at El Paso;
4-18 (8) The Texas A&M University Health Science Center;
4-19 (9) the University of North Texas Health Science
4-20 Center at Fort Worth;
4-21 (10) the components of the Texas Tech University
4-22 Health Sciences Center located in El Paso;
4-23 (11) the components of the Texas Tech University
4-24 Health Sciences Center at locations other than El Paso; and
4-25 (12) the regional academic health center established
4-26 under Section 74.611.
4-27 (b) Each fund is composed of:
5-1 (1) money deposited or transferred to the fund by
5-2 appropriation or under other law;
5-3 (2) gifts and grants contributed to the fund; and
5-4 (3) the earnings of the fund.
5-5 Sec. 63.102. ADMINISTRATION AND USE OF FUNDS. (a) The
5-6 governing board of each institution or components for which a fund
5-7 is established under this subchapter shall administer that fund as
5-8 trustee for the institution or components in the same manner as the
5-9 permanent university fund is administered under Chapter 66 and
5-10 under Sections 11, 11a, and 11b, Article VII, Texas Constitution.
5-11 (b) Except as provided by Subsections (c) and (d), money in
5-12 a fund established under this subchapter may not be used for any
5-13 purpose.
5-14 (c) The earnings of each fund may be expended by the
5-15 governing board that administers the fund without appropriation and
5-16 may be used only for research and other programs that are conducted
5-17 by the institution or components for which the fund is established
5-18 and that benefit the public health. The earnings of the fund
5-19 established for The University of Texas Health Science Center at
5-20 San Antonio may be used to establish, maintain, and operate a
5-21 children's cancer center. The earnings of the funds established
5-22 for the components of the Texas Tech University Health Sciences
5-23 Center located in El Paso and for The University of Texas at El
5-24 Paso may be used for the establishment and operation of an
5-25 institute of public health in El Paso. The earnings of the fund
5-26 established for the components of the Texas Tech University Health
5-27 Sciences Center at locations other than El Paso may be used for
6-1 research and other programs that benefit the public health in areas
6-2 outside El Paso.
6-3 (d) The governing board of each institution or component may
6-4 solicit and accept gifts and grants to the institution or
6-5 component's fund. A gift or grant to the fund may be expended and
6-6 used in the same manner as the earnings of the fund under
6-7 Subsection (c), subject to any limitation or requirement placed on
6-8 the gift or grant by the donor or granting entity.
6-9 (e) Sections 403.095 and 404.071, Government Code, do not
6-10 apply to a fund established under this subchapter.
6-11 SECTION 2. Section 61.092, Education Code, is amended to
6-12 read as follows:
6-13 Sec. 61.092. CONTRACTS WITH BAYLOR COLLEGE OF MEDICINE.
6-14 (a) The board may contract with Baylor College of Medicine for the
6-15 administration, direction, and performance of all services and the
6-16 provision, maintenance, operation, and repair of all buildings,
6-17 facilities, structures, equipment, and materials necessary or
6-18 proper to the education, training, preparation, or instruction of
6-19 bona fide Texas resident undergraduate medical students.
6-20 (b) Funds received by Baylor College of Medicine under
6-21 Subchapter A, Chapter 63, may be used only to support programs of
6-22 the college used for the purposes described by Subsection (a).
6-23 (c) This [However, nothing in this] subchapter may not be
6-24 construed to empower the board to limit, alter, modify, or in any
6-25 other manner change or approve, or negotiate for changes in or
6-26 approval of, the administration, direction, and performance of
6-27 these services or the provision, maintenance, operation, and repair
7-1 of buildings, facilities, structures, equipment, or materials.
7-2 SECTION 3. (a) On the effective date of this Act, the
7-3 comptroller shall transfer $400 million from the general revenue
7-4 fund to the permanent health fund for higher education established
7-5 by Subchapter A, Chapter 63, Education Code, as added by this Act.
7-6 (b) On the effective date of this Act, the comptroller shall
7-7 transfer from the general revenue fund to the separate permanent
7-8 endowment trust fund established by Subchapter B, Chapter 63,
7-9 Education Code, as added by this Act, for each of the following
7-10 institutions of higher education or components of an institution of
7-11 higher education the following amounts:
7-12 (1) The University of Texas Health Science Center at
7-13 San Antonio - $200 million;
7-14 (2) The University of Texas M. D. Anderson Cancer
7-15 Center - $100 million;
7-16 (3) The University of Texas Southwestern Medical
7-17 Center at Dallas - $50 million;
7-18 (4) The University of Texas Medical Branch at
7-19 Galveston - $25 million;
7-20 (5) The University of Texas Health Science Center at
7-21 Houston - $25 million;
7-22 (6) The University of Texas Health Science Center at
7-23 Tyler - $25 million;
7-24 (7) The University of Texas at El Paso - $25 million;
7-25 (8) The Texas A&M University Health Science
7-26 Center - $25 million;
7-27 (9) the University of North Texas Health Science
8-1 Center at Fort Worth - $25 million;
8-2 (10) the components of the Texas Tech University
8-3 Health Sciences Center located in El Paso - $25 million;
8-4 (11) the components of the Texas Tech University
8-5 Health Sciences Center at locations other than El Paso - $25
8-6 million; and
8-7 (12) the regional academic health center established
8-8 under Section 74.611, Education Code - $5 million.
8-9 SECTION 4. The importance of this legislation and the
8-10 crowded condition of the calendars in both houses create an
8-11 emergency and an imperative public necessity that the
8-12 constitutional rule requiring bills to be read on three several
8-13 days in each house be suspended, and this rule is hereby suspended,
8-14 and that this Act take effect and be in force from and after its
8-15 passage, and it is so enacted.