CHAPTER 63. PERMANENT FUNDS FOR HEALTH-RELATED INSTITUTIONS OF HIGHER EDUCATION

State Codes and Statutes

Statutes > Texas > Education-code > Title-3-higher-education > 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.

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

(b) The amount appropriated under Subsection (a) shall be

distributed quarterly by the comptroller to each health-related

institution of higher education.

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.

(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.

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.

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.

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.

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