83R8892 KEL-D By: Howard H.B. No. 2689 A BILL TO BE ENTITLED AN ACT relating to a study regarding state formula funding for health-related institutions and general academic teaching institutions. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 61.059, Education Code, is amended by adding Subsection (p) to read as follows: (p) The Legislative Budget Board shall study and evaluate the practice of using a funding formula for health-related institutions that is different from the funding formula used for general academic teaching institutions. In the study, the Legislative Budget Board shall consider the historical reasons for and the benefits and disadvantages of using different formulas, the benefits and disadvantages of using varying weights, models, scales, and rates for the two formulas, and the effects of current formula funding on economies of scale at affected institutions. The report must include any recommendation of the Legislative Budget Board for legislative or administrative action, including changes in formula funding methodology for health-related institutions or general academic teaching institutions and other changes necessary to promote efficiency and effectiveness in the use of appropriated money to fund health profession education in this state. A recommendation under this subsection must include an explanation of the basis for the recommendation. Not later than December 1, 2014, the Legislative Budget Board shall submit a copy of the report required by this subsection to the board and to the governor, lieutenant governor, and speaker of the house of representatives. This subsection expires January 31, 2015. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013.