Parker Bill Parks A Health Care Fund Outside The Treasury

The text as introduced · 1,329 words

89R10097 KJE-F

By: Parker
S.B. No. 1701

A BILL TO BE ENTITLED

AN ACT

relating to the health care professional education fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 62.003(1), Education Code, is amended to

read as follows:

(1) Except as otherwise provided by Subchapters C, D,

E, F, G, [ and ] I , and J , "eligible institution" means the eligible

agencies and institutions of higher education listed in Article

VII, Section 17(b), of the Constitution of Texas, and any

institution or agency of higher education that is later made

eligible to participate in the disbursement of funds pursuant to

Article VII, Section 17(c), of the Constitution of Texas.

SECTION 2. Chapter 62, Education Code, is amended by adding

Subchapter J to read as follows:

SUBCHAPTER J. HEALTH CARE PROFESSIONAL EDUCATION FUND

Sec. 62.201. PURPOSE. The purpose of this subchapter is to

allocate appropriations from the health care professional

education fund to provide a dedicated, independent, and equitable

source of funding to enable general academic teaching institutions

to increase the production of health care professional degrees to

meet workforce needs in this state.

Sec. 62.202. DEFINITIONS. In this subchapter:

(1) "Eligible institution" means a general academic

teaching institution that is eligible to receive distributions of

money under this subchapter.

(2) "Fund" means the health care professional

education fund.

(3) "General academic teaching institution" and

"university system" have the meanings assigned by Section 61.003.

(4) "Health care professional degree" means a

baccalaureate degree, a master's degree, a doctoral of professional

practice degree, or a research doctorate degree listed under Code

51 as a health profession or related clinical science in the

Classification of Instructional Programs adopted by the United

States Department of Education.

(5) "Trust company" means the Texas Treasury

Safekeeping Trust Company.

Sec. 62.203. ADMINISTRATION AND INVESTMENT OF FUND. (a)

The health care professional education fund is a fund outside the

state treasury held by the comptroller and administered by the

trust company.

(b) The trust company shall administer and invest the fund

in accordance with Section 21, Article VII, Texas Constitution.

(c) The trust company shall determine the amount available

for distribution from the fund in accordance with a distribution

policy adopted by the comptroller that is designed to:

(1) preserve the purchasing power of the fund's assets

over an economic cycle, subject to the liquidity needs of the fund;

and

(2) provide as nearly as practicable a stable and

predictable stream of annual distributions.

Sec. 62.204. GIFTS, GRANTS, AND DONATIONS. The comptroller

may solicit and accept gifts, grants, or donations from any public

or private source for the fund.

Sec. 62.205. ELIGIBILITY TO RECEIVE DISTRIBUTIONS FROM

FUND. A general academic teaching institution is eligible to

receive distributions under this subchapter for a state fiscal year

if the institution:

(1) is designated as a comprehensive university,

doctoral university, or master's university under the coordinating

board's accountability system; and

(2) awarded health care professional degrees during

the preceding state fiscal year.

Sec. 62.206. DISTRIBUTION OF APPROPRIATION FUNDS TO

ELIGIBLE INSTITUTIONS. (a) Each state fiscal year, the

comptroller shall distribute to eligible institutions in

accordance with this subchapter money appropriated from the fund

for that fiscal year.

(b) The total amount appropriated from the fund for any

state fiscal year may not exceed an amount equal to 7.0 percent of

the average net market value of the investment assets of the fund,

as determined by the comptroller, for a period set by comptroller

policy.

(c) The amount appropriated from the fund for distribution

in a state fiscal year must be allocated as follows:

(1) 95 percent to the permanent endowment for health

care professional education under Section 62.207; and

(2) five percent to the health care professional

education startup fund under Section 62.208.

Sec. 62.207. PERMANENT ENDOWMENT FOR HEALTH CARE

PROFESSIONAL EDUCATION. (a) For each state fiscal year, an

eligible institution is entitled to a distribution of a portion of

the total amount allocated for the permanent endowment for health

care professional education under Section 62.206(c)(1) for that

fiscal year. Subject to Subsection (b), the portion of the total

amount allocated to which an eligible institution is entitled is a

fraction of that total amount equal to the quotient of:

(1) the sum of:

(A) the number of bachelor of science or bachelor

of arts health care professional degrees awarded by the institution

in the preceding three years;

(B) three multiplied by the number of master of

arts or master of science health care professional degrees awarded

by the institution in the preceding three years; and

(C) six multiplied by the number of doctor of

professional practice or research doctorate health care

professional degrees awarded by the institution in the preceding

three years; and

(2) the total of all amounts calculated for eligible

institutions under Subdivision (1).

(b) Before distributions are made under Subsection (a), the

comptroller shall:

(1) reduce the amount to which eligible institutions

are entitled under that subsection as necessary to ensure that no

single eligible institution or university system receives more than

25 percent of the annual distribution from the fund for that state

fiscal year; and

(2) reallocate any amounts by which one or more

eligible institutions' distributions are reduced under Subdivision

(1) to each other eligible institution whose distribution was not

reduced under Subdivision (1) based on the institution's pro rata

share under Subsection (a), subject to the limit described by

Subdivision (1).

Sec. 62.208. HEALTH CARE PROFESSIONAL EDUCATION STARTUP

FUND. (a) Each state fiscal year, the coordinating board shall

distribute money allocated under Section 62.206(c)(2) to award

grants to eligible institutions to start new or expand existing

health care professional degree programs.

(b) An eligible institution that has reached the limit under

Section 62.207(b)(1) may not receive a grant under this section.

Sec. 62.209. USE OF ALLOCATED AMOUNTS. (a) An eligible

institution may use money received under this subchapter only for

the support and maintenance of educational and general activities

that promote increased capacity to award health care professional

degrees in a manner that aligns with the goals of the state's master

plan for higher education developed under Section 61.051.

(b) For purposes of Subsection (a), the use of money is

limited to the following permitted activities in health care

professional degree programs:

(1) increasing enrollment capacity;

(2) providing faculty support and paying faculty

salaries;

(3) purchasing equipment or library materials;

(4) awarding loan repayment guarantees to students

enrolled in graduate health care professional degree programs who

commit to teaching at general academic teaching institutions in

this state for at least four years after graduation;

(5) investing in clinical facilities or

administration for clinical placement programs that expand

enrollment capacity of undergraduate health care professional

degree programs; and

(6) increasing the number of graduates from health

care professional degree programs.

(c) Money received in a state fiscal year by an eligible

institution under this subchapter that is not used in that fiscal

year by the institution may be held and used by the institution in

subsequent state fiscal years for the purposes prescribed by this

section.

Sec. 62.210. DETERMINATION AND REPORT OF AMOUNT OF

DISTRIBUTIONS. For each state fiscal biennium, the Legislative

Budget Board, in consultation with the coordinating board, shall:

(1) determine the amount of each distribution from the

fund to which each eligible institution is entitled as provided by

this subchapter; and

(2) report the determinations made under Subdivision

(1) to the legislature and the comptroller.

Sec. 62.211. RULES. The coordinating board may adopt rules

as necessary to implement this subchapter.

SECTION 3. This Act takes effect September 1, 2026, but only

if the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, establishing the Texas Health Care Workforce

Education Fund to provide funding to eligible institutions of

higher education to address Texas' health care workforce needs and

drive the state economy is approved by the voters. If that amendment

is not approved by the voters, this Act has no effect.