CHAPTER 63. PERMANENT FUNDS FOR HEALTH-RELATED INSTITUTIONS OF HIGHER EDUCATION
EDUCATION CODE
TITLE 3. HIGHER EDUCATION
SUBTITLE B. STATE COORDINATION OF HIGHER EDUCATION
CHAPTER 63. PERMANENT FUNDS FOR HEALTH-RELATED INSTITUTIONS OF
HIGHER EDUCATION
SUBCHAPTER A. PERMANENT HEALTH FUND FOR HIGHER EDUCATION
Sec. 63.001. PERMANENT HEALTH FUND FOR HIGHER EDUCATION. (a)
The permanent health fund for higher education is a special fund
in the treasury outside the general revenue fund.
(b) The fund is composed of:
(1) money transferred to the fund at the direction of the
legislature;
(2) gifts and grants contributed to the fund; and
(3) the returns received from investment of money in the fund.
Added by Acts 1999, 76th Leg., ch. 1402, Sec. 1, eff. Aug. 30,
1999.
Sec. 63.002. ADMINISTRATION AND USE OF FUND. (a) The board of
regents of The University of Texas System shall administer the
fund. The board may manage and invest the fund in the same manner
as the board manages and invests other permanent endowments. In
administering the fund, the board shall invest any funds in a
manner that preserves the purchasing power of the fund's assets
and the fund's annual distributions. The board shall determine
the amount available for distribution from the fund in a manner
consistent with the board's procedures for making distributions
to other endowment beneficiaries. The amount available for
distribution shall be determined by the investment and
distribution policy for the fund's assets adopted by the board.
Expenses of managing the fund's assets shall be paid from the
fund.
(b) Except as provided by Subsections (c), (d), and (f), money
in the fund may not be used for any purpose.
(c) The amount available for distribution from the fund may be
appropriated only for programs that benefit medical research,
health education, or treatment programs at the following
health-related institutions of higher education:
(1) The University of Texas Health Science Center at San
Antonio;
(2) The University of Texas M. D. Anderson Cancer Center;
(3) The University of Texas Southwestern Medical Center at
Dallas;
(4) The University of Texas Medical Branch at Galveston;
(5) The University of Texas Health Science Center at Houston;
(6) The University of Texas Health Science Center at Tyler;
(7) The University of Texas Health Science Center--South Texas
and its component institutions, if established under Subchapter
N, Chapter 74;
(8) The Texas A&M University Health Science Center;
(9) the University of North Texas Health Science Center at Fort
Worth;
(10) the Texas Tech University Health Sciences Center; and
(11) Baylor College of Medicine, if a contract between Baylor
College of Medicine and the Texas Higher Education Coordinating
Board is in effect under Section 61.092.
(d) The governing board of a health-related institution of
higher education entitled to receive money under this subchapter
may solicit and accept gifts and grants to the fund. A gift or
grant to the fund shall be appropriated and distributed and may
be used in the same manner as an amount appropriated under
Section 63.003, subject to any limitation or requirement placed
on the gift or grant by the donor or granting entity.
(e) Sections 403.095 and 404.071, Government Code, do not apply
to the fund. Section 404.094(d), Government Code, applies to the
fund.
(f) An institution of higher education that has accepted a gift
under Subchapter I, Chapter 51, that was conditioned on the
receipt by the institution of state matching funds from the
eminent scholars fund may use money the institution receives
under this subchapter to provide the state matching funds,
treating that amount as if it were a distribution to the
institution from the eminent scholars fund for purposes of
Subchapter I, Chapter 51.
Added by Acts 1999, 76th Leg., ch. 1402, Sec. 1, eff. Aug. 30,
1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1341, Sec. 4, eff. June 19, 2009.
Sec. 63.003. ALLOCATION OF DISTRIBUTION. (a) The legislature
shall appropriate the amount available for distribution from the
fund to the health-related institutions of higher education
listed in Section 63.002(c). The amount appropriated shall be
distributed as follows:
(1) 70 percent shall be distributed in equal amounts to each
institution; and
(2) the remaining amount shall be distributed in equal amounts
for each of the following categories, with each institution
receiving a share in each category proportionate to the amount
that the institution spent in that category in the preceding
fiscal biennium as determined by the institution's annual
financial report, compared to the total spending of every
institution listed in Section 63.002(c) in that category in the
preceding biennium:
(A) instructional expenditures;
(B) research expenditures; and
(C) unsponsored charity care.
(b) The amount appropriated under Subsection (a) shall be
distributed quarterly by the comptroller to each health-related
institution of higher education.
(c) The Legislative Budget Board shall make any necessary
determination of each institution's portion of an amount
appropriated under Subsection (a)(2) and shall provide that
information to the legislature and the comptroller.
(d) For the purposes of this section, Baylor College of Medicine
may receive funds under Subsection (a)(2) only if the institution
provides the comptroller with an independently audited schedule
of information that substantially complies with the reporting
requirements issued by the comptroller for other eligible
institutions under Subsection (a)(2). Information under this
subsection must be supplied not later than the time other
eligible institutions are required to submit similar information.
Added by Acts 1999, 76th Leg., ch. 1402, Sec. 1, eff. Aug. 30,
1999.
Sec. 63.004. REPORTING REQUIREMENT. An institution receiving a
distribution from the permanent fund established under this
subchapter shall provide a report to the Legislative Budget Board
no later than November 1 of each year. The report shall include
the total amount of money the institution received from the fund,
the purpose for which the money was used, and any additional
information that may be requested by the Legislative Budget
Board.
Added by Acts 1999, 76th Leg., ch. 1402, Sec. 1, eff. Aug. 30,
1999.
SUBCHAPTER B. PERMANENT FUNDS FOR HEALTH-RELATED INSTITUTIONS
Sec. 63.101. CREATION OF FUNDS. (a) A separate permanent
endowment fund is established for the benefit of each of the
following institutions of higher education:
(1) The University of Texas Health Science Center at San
Antonio;
(2) The University of Texas M. D. Anderson Cancer Center;
(3) The University of Texas Southwestern Medical Center at
Dallas;
(4) The University of Texas Medical Branch at Galveston;
(5) The University of Texas Health Science Center at Houston;
(6) The University of Texas Health Science Center at Tyler;
(7) The University of Texas at El Paso;
(8) The Texas A&M University Health Science Center;
(9) the University of North Texas Health Science Center at Fort
Worth;
(10) the components of the Texas Tech University Health Sciences
Center located in El Paso;
(11) the components of the Texas Tech University Health Sciences
Center at locations other than El Paso;
(12) the regional academic health center established under
Section 74.611; and
(13) Baylor College of Medicine, if a contract between Baylor
College of Medicine and the Texas Higher Education Coordinating
Board is in effect under Section 61.092.
(b) Each separate permanent endowment fund is a special fund in
the treasury outside the general revenue fund.
(c) Each separate permanent endowment fund is composed of:
(1) money transferred to the fund at the direction of the
legislature;
(2) gifts and grants contributed to the fund; and
(3) the returns received from investment of money in the fund.
Added by Acts 1999, 76th Leg., ch. 1402, Sec. 1, eff. Aug. 30,
1999.
Sec. 63.102. ADMINISTRATION AND USE OF FUNDS. (a) The
governing board of an institution or component for which a fund
is established under this subchapter may administer the fund of
that institution. If a governing board elects not to administer
the fund, the comptroller shall administer the fund. The
administrator of a fund established under this subchapter shall
invest the fund in a manner intended to preserve the purchasing
power of the fund's assets and the fund's annual distributions.
Annual distributions for any fund shall be determined by the
investment and distribution policy adopted by the administrator
of the fund for the fund's assets. Expenses of managing the
assets of a fund shall be paid from the fund. If a governing
board administers a fund, the governing board may manage and
invest the fund in the same manner as the board manages and
invests other permanent endowments, and the board shall make
distributions from the fund in a manner consistent with the
board's procedures for making distributions to other endowment
beneficiaries. If the comptroller administers a fund, the
comptroller may acquire, exchange, sell, supervise, manage, or
retain, through procedures and subject to restrictions the
comptroller considers appropriate, any kind of investment of the
fund's assets that prudent investors, exercising reasonable care,
skill, and caution, would acquire or retain in light of the
purposes, terms, distribution requirements, and other
circumstances of the fund then prevailing, taking into
consideration the investment of all the assets of the fund rather
than a single investment.
(b) Except as provided by Subsections (c), (d), and (f), money
in a fund established under this subchapter may not be used for
any purpose.
(c) The amount available for distribution from each fund may be
appropriated only for research and other programs that are
conducted by the institution or components for which the fund is
established and that benefit the public health. The comptroller
or the governing board shall report to the legislature the amount
of funds that are eligible for appropriation. An amount
appropriated from the fund established for The University of
Texas Health Science Center at San Antonio may be used to
establish, maintain, and operate a children's cancer center and
the campus extension in the city of Laredo. An amount
appropriated from the funds established for the components of the
Texas Tech University Health Sciences Center located in El Paso
and for The University of Texas at El Paso may be used for the
establishment and operation of an institute of public health in
El Paso. An amount appropriated from the fund established for the
components of the Texas Tech University Health Sciences Center at
locations other than El Paso may be used for research and other
programs that benefit the public health in areas outside El Paso.
An amount appropriated from the fund established for The Texas
A&M University Health Science Center may be used for the
establishment and operation of the Coastal Bend Health Education
Center in Corpus Christi.
(d) The comptroller or the governing board of an institution or
component may solicit and accept gifts and grants to the
institution's or component's fund. A gift or grant to the fund
may be expended and used in the same manner as an amount
distributed from the fund under Subsection (c), subject to any
limitation or requirement placed on the gift or grant by the
donor or granting entity.
(e) Sections 403.095 and 404.071, Government Code, do not apply
to a fund established under this subchapter. Section 404.094(d),
Government Code, applies to the fund.
(f) An institution of higher education that has accepted a gift
under Subchapter I, Chapter 51, that was conditioned on the
receipt by the institution of state matching funds from the
eminent scholars fund may use money the institution receives
under this subchapter to provide the state matching funds,
treating that amount as if it were a distribution to the
institution from the eminent scholars fund for purposes of
Subchapter I, Chapter 51.
Added by Acts 1999, 76th Leg., ch. 1402, Sec. 1, eff. Aug. 30,
1999.
Sec. 63.103. REPORTING REQUIREMENT. Each institution listed in
Section 63.101 shall provide a report on the permanent fund
established under this subchapter for the benefit of the
institution to the Legislative Budget Board no later than
November 1 of each year. The report shall include the total
amount of money the institution received from the fund, the
purpose for which the money was used, and any additional
information that may be requested by the Legislative Budget
Board.
Added by Acts 1999, 76th Leg., ch. 1402, Sec. 1, eff. Aug. 30,
1999.
SUBCHAPTER C. PERMANENT FUND FOR HIGHER EDUCATION NURSING, ALLIED
HEALTH, AND OTHER HEALTH-RELATED PROGRAMS
Sec. 63.201. PERMANENT FUND FOR HIGHER EDUCATION NURSING, ALLIED
HEALTH, AND OTHER HEALTH-RELATED PROGRAMS. (a) The permanent
fund for higher education nursing, allied health, and other
health-related programs is a special fund in the treasury outside
the general revenue fund.
(b) The fund is composed of:
(1) money transferred to the fund at the direction of the
legislature;
(2) gifts and grants contributed to the fund; and
(3) the returns received from investment of money in the fund.
Added by Acts 1999, 76th Leg., ch. 1402, Sec. 1, eff. Aug. 30,
1999.
For expiration of Subsections (f) and (g), see Subsection (g).
Sec. 63.202. ADMINISTRATION AND USE OF FUND. (a) The
comptroller may contract with the governing board of any
institution or component that is eligible to receive a grant
under Subsection (c) to administer the fund. If a governing board
administers the fund, the governing board may manage and invest
the money in the fund in the same manner as the board manages and
invests other permanent endowments. The administrator of the fund
shall invest any fund in a manner that preserves the purchasing
power of the fund's assets and the fund's annual distributions.
(b) Except as provided by Subsections (c) and (d), money in the
fund established under this subchapter may not be used for any
purpose.
(c) The investment returns of the fund may be appropriated to
the Texas Higher Education Coordinating Board for the purpose of
providing grants to public institutions of higher education that
offer upper-level academic instruction and training in the field
of nursing, allied health, or other health-related education. The
coordinating board shall adopt rules relating to the award of
grants under this subchapter and may, in awarding grants,
consider the impact the grant will have on academic instruction
and training in the field of nursing, allied health, or other
health-related education in this state. An institution or
component that is eligible to receive funding under Subchapter A
or B is not eligible to receive a grant under this subchapter.
The comptroller or the governing board shall report to the
legislature the amount of funds that are available for
appropriation under this section.
(d) The comptroller or the governing board that administers the
fund may solicit and accept gifts and grants for the benefit of
the fund. A gift or grant to the fund may be expended and used in
the same manner as the investment returns of the fund under
Subsection (c), subject to any limitation or requirement placed
on the gift or grant by the donor or granting entity.
(e) Sections 403.095 and 404.071, Government Code, do not apply
to a fund established under this subchapter.
(f) Notwithstanding the limitation provided by Subsection (b),
grants awarded under Subsection (c) for the state fiscal biennium
ending on August 31, 2009, and the fiscal biennium ending on
August 31, 2011, by the Texas Higher Education Coordinating Board
shall be awarded to programs preparing students for initial
licensure as registered nurses or programs preparing qualified
faculty members with a master's or doctoral degree for the
program, including programs at two-year institutions of higher
education, four-year general academic teaching institutions,
health science centers, and independent or private institutions
of higher education, or to the nursing resource section
established under Section 105.002(b), Health and Safety Code. In
awarding grants under this subsection, the coordinating board
may:
(1) give priority to institutions proposing to address the
shortage of registered nurses by promoting innovation in
education, recruitment, and retention of nursing students and
qualified faculty;
(2) award grants on a competitive basis;
(3) consider the availability of matching funds; and
(4) fund a study by the nursing resource section to evaluate the
competencies of clinical judgment and behaviors that professional
nursing students should possess at the time of graduation.
(g) Subsection (f) and this subsection expire September 1, 2011.
Added by Acts 1999, 76th Leg., ch. 1402, Sec. 1, eff. Aug. 30,
1999. Amended by Acts 2001, 77th Leg., ch. 1489, Sec. 11, eff.
Sept. 1, 2001; Acts 2003, 78th Leg., ch. 728, Sec. 2, eff. June
20, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
534, Sec. 1, eff. June 16, 2007.
Acts 2009, 81st Leg., R.S., Ch.
999, Sec. 15, eff. June 19, 2009.
Sec. 63.203. REPORTING REQUIREMENT. The Texas Higher Education
Coordinating Board shall provide a report on the permanent fund
established under this subchapter to the Legislative Budget Board
no later than November 1 of each year. The report shall include
the total amount of money distributed from the fund, the names of
the institutions receiving grants, the purpose for which the
grants were used, and any additional information that may be
requested by the Legislative Budget Board.
Added by Acts 1999, 76th Leg., ch. 1402, Sec. 1, eff. Aug. 30,
1999.
SUBCHAPTER D. PERMANENT FUND FOR MINORITY HEALTH RESEARCH AND
EDUCATION
Sec. 63.301. PERMANENT FUND FOR MINORITY HEALTH RESEARCH AND
EDUCATION. (a) The permanent fund for minority health research
and education is a special fund in the treasury outside the
general revenue fund.
(b) The fund is composed of:
(1) money transferred to the fund at the direction of the
legislature;
(2) gifts and grants contributed to the fund; and
(3) the returns received from investment of money in the fund.
Added by Acts 1999, 76th Leg., ch. 1402, Sec. 1, eff. Aug. 30,
1999.
Sec. 63.302. ADMINISTRATION AND USE OF FUND. (a) The
comptroller may contract with the governing board of any
institution or component that is eligible to receive a grant
under Subsection (c) to administer the fund. If a governing board
administers the fund, the governing board may manage and invest
the money in the same manner as the board manages and invests
other permanent funds. The administrator of the fund shall invest
any fund in a manner that preserves the purchasing power of the
fund's assets and the fund's annual distributions.
(b) Except as provided by Subsections (c) and (e), money in the
fund established under this subchapter may not be used for any
purpose.
(c) The investment returns of the fund may be appropriated to
the Texas Higher Education Coordinating Board for the purpose of
providing grants to institutions of higher education, including
Centers for Teacher Education, that conduct research or
educational programs that address minority health issues or form
partnerships with minority organizations, colleges, or
universities to conduct research and educational programs that
address minority health issues.
(d) The coordinating board shall adopt rules relating to the
award of grants under this subchapter.
(e) The comptroller or governing board that administers the fund
may solicit and accept gifts and grants for the benefit of the
fund. A gift or grant to the fund may be expended and used in the
same manner as the investment returns of the fund under
Subsection (c), subject to any limitation or requirement placed
on the gift or grant by the donor or granting entity.
(f) The coordinating board shall report to the legislature
annually the total amount of funds awarded and a brief
description of each grant, including the name of the institution
receiving the grant, the amount and purpose of the grant, and the
partnership formed to conduct the research or educational
programs authorized under Subsection (c).
(g) Sections 403.095 and 404.071, Government Code, do not apply
to a fund established under this subchapter.
Added by Acts 1999, 76th Leg., ch. 1402, Sec. 1, eff. Aug. 30,
1999.