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A BILL TO BE ENTITLED
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AN ACT
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relating to the allocation of certain fees on the sale of cigarettes |
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and cigarette tobacco products manufactured by certain companies to |
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the permanent health fund for higher education and to the use of |
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money in that fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 63.001(b), Education Code, is amended to |
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read as follows: |
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(b) The fund is composed of: |
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(1) money transferred to the fund at the direction of |
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the legislature; |
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(2) money deposited to the credit of the fund under |
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Section 161.611, Health and Safety Code; |
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(3) gifts and grants contributed to the fund; and |
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(4) [(3)] the returns received from investment of |
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money in the fund. |
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SECTION 2. Sections 63.002(c) and (d), Education Code, are |
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amended to read as follows: |
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(c) The amount available for distribution from the fund may |
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be appropriated only for programs that benefit medical research, |
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health education, or treatment programs at the following |
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health-related institutions of higher education, schools, and |
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colleges: |
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(1) The University of Texas Health Science Center at |
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San Antonio; |
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(2) The University of Texas M. D. Anderson Cancer |
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Center; |
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(3) The University of Texas Southwestern Medical |
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Center; |
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(4) The University of Texas Medical Branch at |
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Galveston; |
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(5) The University of Texas Health Science Center at |
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Houston; |
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(6) The University of Texas Health Science Center at |
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Tyler; |
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(7) The University of Texas Health Science |
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Center--South Texas and its component institutions, if established |
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under Subchapter N, Chapter 74; |
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(8) The Texas A&M University Health Science Center; |
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(9) the University of North Texas Health Science |
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Center at Fort Worth; |
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(10) the Texas Tech University Health Sciences Center; |
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(11) the Texas Tech University Health Sciences Center |
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at El Paso; [and] |
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(12) the Dell Medical School at The University of |
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Texas at Austin; |
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(13) the School of Medicine at The University of Texas |
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Rio Grande Valley; |
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(14) The University of Texas at Austin College of |
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Pharmacy; |
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(15) the Texas Southern University College of Pharmacy |
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and Health Sciences; |
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(16) the University of Houston College of Pharmacy; |
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and |
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(17) Baylor College of Medicine, if a contract between |
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Baylor College of Medicine and the Texas Higher Education |
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Coordinating Board is in effect under Section 61.092. |
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(d) The governing board of a health-related institution of |
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higher education, school, or college entitled to receive money |
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under this subchapter may solicit and accept gifts and grants to the |
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fund. A gift or grant to the fund shall be appropriated and |
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distributed and may be used in the same manner as an amount |
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appropriated under Section 63.003, subject to any limitation or |
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requirement placed on the gift or grant by the donor or granting |
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entity. |
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SECTION 3. Sections 63.003(a), (b), and (c), Education |
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Code, are amended to read as follows: |
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(a) The legislature shall appropriate the amount available |
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for distribution from the fund to the health-related institutions |
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of higher education, schools, and colleges listed in Section |
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63.002(c). The amount appropriated shall be distributed as |
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follows: |
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(1) 70 percent shall be distributed in equal amounts |
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to each institution, school, and college; and |
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(2) the remaining amount shall be distributed in equal |
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amounts for each of the following categories, with each |
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institution, school, or college receiving a share in each category |
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proportionate to the amount that the institution, school, or |
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college spent in that category in the preceding fiscal biennium as |
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determined by the institution's, school's, or college's annual |
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financial report, compared to the total spending of every |
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institution, school, and college listed in Section 63.002(c) in |
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that category in the preceding biennium: |
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(A) instructional expenditures; |
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(B) research expenditures; and |
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(C) unsponsored charity care. |
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(b) The amount appropriated under Subsection (a) shall be |
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distributed quarterly by the comptroller to each health-related |
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institution of higher education, school, and college listed in |
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Section 63.002(c). |
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(c) The Legislative Budget Board shall make any necessary |
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determination of each institution's, school's, or college's portion |
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of an amount appropriated under Subsection (a)(2) and shall provide |
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that information to the legislature and the comptroller. |
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SECTION 4. Section 161.601, Health and Safety Code, is |
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amended to read as follows: |
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Sec. 161.601. PURPOSE. The purpose of this subchapter is |
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to: |
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(1) recover health care costs to the state imposed by |
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non-settling manufacturers; |
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(2) prevent non-settling manufacturers from |
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undermining this state's policy of reducing underage smoking by |
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offering cigarettes and cigarette tobacco products at prices that |
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are substantially below the prices of cigarettes and cigarette |
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tobacco products of other manufacturers; |
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(3) protect the tobacco settlement agreement and |
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funding, which has been reduced because of the growth of sales of |
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non-settling manufacturer cigarettes and cigarette tobacco |
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products, for programs that are funded wholly or partly by payments |
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to this state under the tobacco settlement agreement and recoup for |
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this state settlement payment revenue lost because of sales of |
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non-settling manufacturer cigarettes and cigarette tobacco |
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products; |
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(4) ensure evenhanded treatment of manufacturers and |
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further protect the tobacco settlement agreement and funding by |
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imposing a partial payment obligation on non-settling |
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manufacturers that already make payments on Texas sales under the |
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master settlement agreement until a credit amendment to that |
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agreement that will provide those manufacturers with a credit for |
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payments to Texas is effective; and |
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(5) provide funding for programs that benefit medical |
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research, health education, and treatment programs [any purpose the
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legislature determines]. |
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SECTION 5. Section 161.611, Health and Safety Code, is |
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amended to read as follows: |
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Sec. 161.611. REVENUE DEPOSITED IN PERMANENT HEALTH FUND |
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FOR HIGHER EDUCATION [GENERAL REVENUE FUND]. The revenue from the |
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fees imposed by this subchapter shall be deposited in the state |
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treasury to the credit of the permanent health fund for higher |
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education [general revenue fund]. |
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SECTION 6. This Act takes effect September 1, 2017. |