EDUCATION CODE
CHAPTER 63. PERMANENT FUNDS FOR HEALTH-RELATED INSTITUTIONS OF
HIGHER EDUCATION
SUBCHAPTER A. PERMANENT HEALTH FUND FOR HIGHER EDUCATION
§ 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, § 1, eff. Aug. 30, 1999.
§ 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 Texas A&M University Health Science Center;
(8) the University of North Texas Health Science
Center at Fort Worth;
(9) the Texas Tech University Health Sciences Center;
and
(10) 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, § 1, eff. Aug. 30, 1999.
§ 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, § 1, eff. Aug. 30, 1999.
§ 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, § 1, eff. Aug. 30, 1999.
SUBCHAPTER B. PERMANENT FUNDS FOR HEALTH-RELATED INSTITUTIONS
§ 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, § 1, eff. Aug. 30, 1999.
§ 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, § 1, eff. Aug. 30, 1999.
§ 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, § 1, eff. Aug. 30, 1999.
SUBCHAPTER C. PERMANENT FUND FOR HIGHER EDUCATION NURSING, ALLIED
HEALTH, AND OTHER HEALTH-RELATED PROGRAMS
§ 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, § 1, eff. Aug. 30, 1999.
§ 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.
Text of subsecs. (f) and (g) effective until September 1, 2007
(f) Notwithstanding the limitation provided by Subsection
(b), grants awarded under Subsection (c) for the state fiscal
biennium ending on August 31, 2005, and the fiscal biennium ending
on August 31, 2007, 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. 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; and
(3) consider the availability of matching funds.
(g) Subsection (f) and this subsection expire September 1,
2007.
Added by Acts 1999, 76th Leg., ch. 1402, § 1, eff. Aug. 30, 1999.
Amended by Acts 2001, 77th Leg., ch. 1489, § 11, eff. Sept. 1,
2001; Acts 2003, 78th Leg., ch. 728, § 2, eff. June 20, 2003.
§ 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, § 1, eff. Aug. 30, 1999.
SUBCHAPTER D. PERMANENT FUND FOR MINORITY HEALTH RESEARCH AND
EDUCATION
§ 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, § 1, eff. Aug. 30, 1999.
§ 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, § 1, eff. Aug. 30, 1999.
