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.