Texas 2017 - 85th Regular

Texas House Bill HB3704 Compare Versions

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11 85R5468 CJC-D
22 By: Davis of Harris H.B. No. 3704
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the allocation of certain fees on the sale of cigarettes
88 and cigarette tobacco products manufactured by certain companies to
99 the permanent health fund for higher education and to the use of
1010 money in that fund.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 SECTION 1. Section 63.001(b), Education Code, is amended to
1313 read as follows:
1414 (b) The fund is composed of:
1515 (1) money transferred to the fund at the direction of
1616 the legislature;
1717 (2) money deposited to the credit of the fund under
1818 Section 161.611, Health and Safety Code;
1919 (3) gifts and grants contributed to the fund; and
2020 (4) [(3)] the returns received from investment of
2121 money in the fund.
2222 SECTION 2. Sections 63.002(c) and (d), Education Code, are
2323 amended to read as follows:
2424 (c) The amount available for distribution from the fund may
2525 be appropriated only for programs that benefit medical research,
2626 health education, or treatment programs at the following
2727 health-related institutions of higher education, schools, and
2828 colleges:
2929 (1) The University of Texas Health Science Center at
3030 San Antonio;
3131 (2) The University of Texas M. D. Anderson Cancer
3232 Center;
3333 (3) The University of Texas Southwestern Medical
3434 Center;
3535 (4) The University of Texas Medical Branch at
3636 Galveston;
3737 (5) The University of Texas Health Science Center at
3838 Houston;
3939 (6) The University of Texas Health Science Center at
4040 Tyler;
4141 (7) The University of Texas Health Science
4242 Center--South Texas and its component institutions, if established
4343 under Subchapter N, Chapter 74;
4444 (8) The Texas A&M University Health Science Center;
4545 (9) the University of North Texas Health Science
4646 Center at Fort Worth;
4747 (10) the Texas Tech University Health Sciences Center;
4848 (11) the Texas Tech University Health Sciences Center
4949 at El Paso; [and]
5050 (12) the Dell Medical School at The University of
5151 Texas at Austin;
5252 (13) the School of Medicine at The University of Texas
5353 Rio Grande Valley;
5454 (14) The University of Texas at Austin College of
5555 Pharmacy;
5656 (15) the Texas Southern University College of Pharmacy
5757 and Health Sciences;
5858 (16) the University of Houston College of Pharmacy;
5959 and
6060 (17) Baylor College of Medicine, if a contract between
6161 Baylor College of Medicine and the Texas Higher Education
6262 Coordinating Board is in effect under Section 61.092.
6363 (d) The governing board of a health-related institution of
6464 higher education, school, or college entitled to receive money
6565 under this subchapter may solicit and accept gifts and grants to the
6666 fund. A gift or grant to the fund shall be appropriated and
6767 distributed and may be used in the same manner as an amount
6868 appropriated under Section 63.003, subject to any limitation or
6969 requirement placed on the gift or grant by the donor or granting
7070 entity.
7171 SECTION 3. Sections 63.003(a), (b), and (c), Education
7272 Code, are amended to read as follows:
7373 (a) The legislature shall appropriate the amount available
7474 for distribution from the fund to the health-related institutions
7575 of higher education, schools, and colleges listed in Section
7676 63.002(c). The amount appropriated shall be distributed as
7777 follows:
7878 (1) 70 percent shall be distributed in equal amounts
7979 to each institution, school, and college; and
8080 (2) the remaining amount shall be distributed in equal
8181 amounts for each of the following categories, with each
8282 institution, school, or college receiving a share in each category
8383 proportionate to the amount that the institution, school, or
8484 college spent in that category in the preceding fiscal biennium as
8585 determined by the institution's, school's, or college's annual
8686 financial report, compared to the total spending of every
8787 institution, school, and college listed in Section 63.002(c) in
8888 that category in the preceding biennium:
8989 (A) instructional expenditures;
9090 (B) research expenditures; and
9191 (C) unsponsored charity care.
9292 (b) The amount appropriated under Subsection (a) shall be
9393 distributed quarterly by the comptroller to each health-related
9494 institution of higher education, school, and college listed in
9595 Section 63.002(c).
9696 (c) The Legislative Budget Board shall make any necessary
9797 determination of each institution's, school's, or college's portion
9898 of an amount appropriated under Subsection (a)(2) and shall provide
9999 that information to the legislature and the comptroller.
100100 SECTION 4. Section 161.601, Health and Safety Code, is
101101 amended to read as follows:
102102 Sec. 161.601. PURPOSE. The purpose of this subchapter is
103103 to:
104104 (1) recover health care costs to the state imposed by
105105 non-settling manufacturers;
106106 (2) prevent non-settling manufacturers from
107107 undermining this state's policy of reducing underage smoking by
108108 offering cigarettes and cigarette tobacco products at prices that
109109 are substantially below the prices of cigarettes and cigarette
110110 tobacco products of other manufacturers;
111111 (3) protect the tobacco settlement agreement and
112112 funding, which has been reduced because of the growth of sales of
113113 non-settling manufacturer cigarettes and cigarette tobacco
114114 products, for programs that are funded wholly or partly by payments
115115 to this state under the tobacco settlement agreement and recoup for
116116 this state settlement payment revenue lost because of sales of
117117 non-settling manufacturer cigarettes and cigarette tobacco
118118 products;
119119 (4) ensure evenhanded treatment of manufacturers and
120120 further protect the tobacco settlement agreement and funding by
121121 imposing a partial payment obligation on non-settling
122122 manufacturers that already make payments on Texas sales under the
123123 master settlement agreement until a credit amendment to that
124124 agreement that will provide those manufacturers with a credit for
125125 payments to Texas is effective; and
126126 (5) provide funding for programs that benefit medical
127127 research, health education, and treatment programs [any purpose the
128128 legislature determines].
129129 SECTION 5. Section 161.611, Health and Safety Code, is
130130 amended to read as follows:
131131 Sec. 161.611. REVENUE DEPOSITED IN PERMANENT HEALTH FUND
132132 FOR HIGHER EDUCATION [GENERAL REVENUE FUND]. The revenue from the
133133 fees imposed by this subchapter shall be deposited in the state
134134 treasury to the credit of the permanent health fund for higher
135135 education [general revenue fund].
136136 SECTION 6. This Act takes effect September 1, 2017.