HBA-DMH, CCH H.B. 515 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 515 By: Wise Appropriations 4/8/2001 Introduced BACKGROUND AND PURPOSE The majority of the 1.6 million veterans in Texas are combat veterans who served our country in World War II, Korea, Vietnam, Panama, Somalia, and the Persian Gulf. In Hidalgo County alone there are more than 65,000 veterans, many of whom lack access to sufficient medical treatment. The Senate Finance Interim Subcommittee on Tobacco Settlement Proceeds recommended that the 77th Legislature consider using tobacco settlement proceeds for the establishment of a veterans' health care fund to be used for the construction of more veterans' homes, the construction and maintenance of Texas veterans' cemeteries, and a grant program administered by the Texas Veterans Commission for local communities involved in veterans' health care. House Bill 515 establishes a special permanent fund for veterans' care to finance certain veterans' programs. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill expressly delegates rulemaking authority to the Texas Veterans Commission in SECTION 1 (Section 403.108, Government Code) of this bill. ANALYSIS House Bill 515 amends the Government Code to establish a special permanent fund for veterans' care that is outside the general revenue fund. The fund consists of money transferred to the fund by the legislature, gifts and grants, and available earnings of the fund. The bill authorizes the appropriation of available earnings of the fund: _to the Veterans' Land Board for programs relating to veterans' homes; _to the Texas Veterans Commission (TVC) to make grants to counties for purchasing burial grounds for veterans; and _to design, build, and operate a system of state veterans' cemeteries if TVC has the authority under other law and to TVC to improve or enhance veterans' health care. The bill authorizes the comptroller of public accounts to solicit gifts and grants to the fund which may be appropriated in the same manner as the available earnings unless the donor or granting entity places limitations or requirements on the gift or grant. Appropriating money in the fund for any other purpose is prohibited. The bill authorizes TVC to adopt rules governing the award of grants. The bill specifies that the provisions pertaining to the disposition of interest on investments and the use of dedicated revenue do not apply to this fund. The bill requires the comptroller to manage the assets of the fund. On the effective date of this Act, the bill requires the comptroller to transfer $150 million from the general revenue fund to the permanent fund for veterans' care. EFFECTIVE DATE September 1, 2001.