1 | 1 | | 85R5468 CJC-D |
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2 | 2 | | By: Davis of Harris H.B. No. 3704 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the allocation of certain fees on the sale of cigarettes |
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8 | 8 | | and cigarette tobacco products manufactured by certain companies to |
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9 | 9 | | the permanent health fund for higher education and to the use of |
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10 | 10 | | money in that fund. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. Section 63.001(b), Education Code, is amended to |
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13 | 13 | | read as follows: |
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14 | 14 | | (b) The fund is composed of: |
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15 | 15 | | (1) money transferred to the fund at the direction of |
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16 | 16 | | the legislature; |
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17 | 17 | | (2) money deposited to the credit of the fund under |
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18 | 18 | | Section 161.611, Health and Safety Code; |
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19 | 19 | | (3) gifts and grants contributed to the fund; and |
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20 | 20 | | (4) [(3)] the returns received from investment of |
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21 | 21 | | money in the fund. |
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22 | 22 | | SECTION 2. Sections 63.002(c) and (d), Education Code, are |
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23 | 23 | | amended to read as follows: |
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24 | 24 | | (c) The amount available for distribution from the fund may |
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25 | 25 | | be appropriated only for programs that benefit medical research, |
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26 | 26 | | health education, or treatment programs at the following |
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27 | 27 | | health-related institutions of higher education, schools, and |
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28 | 28 | | colleges: |
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29 | 29 | | (1) The University of Texas Health Science Center at |
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30 | 30 | | San Antonio; |
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31 | 31 | | (2) The University of Texas M. D. Anderson Cancer |
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32 | 32 | | Center; |
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33 | 33 | | (3) The University of Texas Southwestern Medical |
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34 | 34 | | Center; |
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35 | 35 | | (4) The University of Texas Medical Branch at |
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36 | 36 | | Galveston; |
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37 | 37 | | (5) The University of Texas Health Science Center at |
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38 | 38 | | Houston; |
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39 | 39 | | (6) The University of Texas Health Science Center at |
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40 | 40 | | Tyler; |
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41 | 41 | | (7) The University of Texas Health Science |
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42 | 42 | | Center--South Texas and its component institutions, if established |
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43 | 43 | | under Subchapter N, Chapter 74; |
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44 | 44 | | (8) The Texas A&M University Health Science Center; |
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45 | 45 | | (9) the University of North Texas Health Science |
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46 | 46 | | Center at Fort Worth; |
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47 | 47 | | (10) the Texas Tech University Health Sciences Center; |
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48 | 48 | | (11) the Texas Tech University Health Sciences Center |
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49 | 49 | | at El Paso; [and] |
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50 | 50 | | (12) the Dell Medical School at The University of |
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51 | 51 | | Texas at Austin; |
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52 | 52 | | (13) the School of Medicine at The University of Texas |
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53 | 53 | | Rio Grande Valley; |
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54 | 54 | | (14) The University of Texas at Austin College of |
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55 | 55 | | Pharmacy; |
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56 | 56 | | (15) the Texas Southern University College of Pharmacy |
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57 | 57 | | and Health Sciences; |
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58 | 58 | | (16) the University of Houston College of Pharmacy; |
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59 | 59 | | and |
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60 | 60 | | (17) Baylor College of Medicine, if a contract between |
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61 | 61 | | Baylor College of Medicine and the Texas Higher Education |
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62 | 62 | | Coordinating Board is in effect under Section 61.092. |
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63 | 63 | | (d) The governing board of a health-related institution of |
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64 | 64 | | higher education, school, or college entitled to receive money |
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65 | 65 | | under this subchapter may solicit and accept gifts and grants to the |
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66 | 66 | | fund. A gift or grant to the fund shall be appropriated and |
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67 | 67 | | distributed and may be used in the same manner as an amount |
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68 | 68 | | appropriated under Section 63.003, subject to any limitation or |
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69 | 69 | | requirement placed on the gift or grant by the donor or granting |
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70 | 70 | | entity. |
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71 | 71 | | SECTION 3. Sections 63.003(a), (b), and (c), Education |
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72 | 72 | | Code, are amended to read as follows: |
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73 | 73 | | (a) The legislature shall appropriate the amount available |
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74 | 74 | | for distribution from the fund to the health-related institutions |
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75 | 75 | | of higher education, schools, and colleges listed in Section |
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76 | 76 | | 63.002(c). The amount appropriated shall be distributed as |
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77 | 77 | | follows: |
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78 | 78 | | (1) 70 percent shall be distributed in equal amounts |
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79 | 79 | | to each institution, school, and college; and |
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80 | 80 | | (2) the remaining amount shall be distributed in equal |
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81 | 81 | | amounts for each of the following categories, with each |
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82 | 82 | | institution, school, or college receiving a share in each category |
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83 | 83 | | proportionate to the amount that the institution, school, or |
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84 | 84 | | college spent in that category in the preceding fiscal biennium as |
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85 | 85 | | determined by the institution's, school's, or college's annual |
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86 | 86 | | financial report, compared to the total spending of every |
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87 | 87 | | institution, school, and college listed in Section 63.002(c) in |
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88 | 88 | | that category in the preceding biennium: |
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89 | 89 | | (A) instructional expenditures; |
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90 | 90 | | (B) research expenditures; and |
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91 | 91 | | (C) unsponsored charity care. |
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92 | 92 | | (b) The amount appropriated under Subsection (a) shall be |
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93 | 93 | | distributed quarterly by the comptroller to each health-related |
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94 | 94 | | institution of higher education, school, and college listed in |
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95 | 95 | | Section 63.002(c). |
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96 | 96 | | (c) The Legislative Budget Board shall make any necessary |
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97 | 97 | | determination of each institution's, school's, or college's portion |
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98 | 98 | | of an amount appropriated under Subsection (a)(2) and shall provide |
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99 | 99 | | that information to the legislature and the comptroller. |
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100 | 100 | | SECTION 4. Section 161.601, Health and Safety Code, is |
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101 | 101 | | amended to read as follows: |
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102 | 102 | | Sec. 161.601. PURPOSE. The purpose of this subchapter is |
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103 | 103 | | to: |
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104 | 104 | | (1) recover health care costs to the state imposed by |
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105 | 105 | | non-settling manufacturers; |
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106 | 106 | | (2) prevent non-settling manufacturers from |
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107 | 107 | | undermining this state's policy of reducing underage smoking by |
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108 | 108 | | offering cigarettes and cigarette tobacco products at prices that |
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109 | 109 | | are substantially below the prices of cigarettes and cigarette |
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110 | 110 | | tobacco products of other manufacturers; |
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111 | 111 | | (3) protect the tobacco settlement agreement and |
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112 | 112 | | funding, which has been reduced because of the growth of sales of |
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113 | 113 | | non-settling manufacturer cigarettes and cigarette tobacco |
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114 | 114 | | products, for programs that are funded wholly or partly by payments |
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115 | 115 | | to this state under the tobacco settlement agreement and recoup for |
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116 | 116 | | this state settlement payment revenue lost because of sales of |
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117 | 117 | | non-settling manufacturer cigarettes and cigarette tobacco |
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118 | 118 | | products; |
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119 | 119 | | (4) ensure evenhanded treatment of manufacturers and |
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120 | 120 | | further protect the tobacco settlement agreement and funding by |
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121 | 121 | | imposing a partial payment obligation on non-settling |
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122 | 122 | | manufacturers that already make payments on Texas sales under the |
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123 | 123 | | master settlement agreement until a credit amendment to that |
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124 | 124 | | agreement that will provide those manufacturers with a credit for |
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125 | 125 | | payments to Texas is effective; and |
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126 | 126 | | (5) provide funding for programs that benefit medical |
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127 | 127 | | research, health education, and treatment programs [any purpose the |
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128 | 128 | | legislature determines]. |
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129 | 129 | | SECTION 5. Section 161.611, Health and Safety Code, is |
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130 | 130 | | amended to read as follows: |
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131 | 131 | | Sec. 161.611. REVENUE DEPOSITED IN PERMANENT HEALTH FUND |
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132 | 132 | | FOR HIGHER EDUCATION [GENERAL REVENUE FUND]. The revenue from the |
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133 | 133 | | fees imposed by this subchapter shall be deposited in the state |
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134 | 134 | | treasury to the credit of the permanent health fund for higher |
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135 | 135 | | education [general revenue fund]. |
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136 | 136 | | SECTION 6. This Act takes effect September 1, 2017. |
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