2005 Texas Education Code CHAPTER 63. PERMANENT FUNDS FOR HEALTH-RELATED INSTITUTIONS OF HIGHER EDUCATION

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.