(a) In this section, “trust company” means the Texas Treasury Safekeeping Trust Company.
(b) The permanent fund supporting graduate medical education is a special fund in
the treasury outside the general revenue fund. The fund is composed of:
(1) money transferred or appropriated to the fund by the legislature;
(2) gifts and grants contributed to the fund; and
(3) the returns received from investment of money in the fund.
(c) The trust company shall administer the fund. The trust company shall determine the amount available for distribution from the
fund, determined in accordance with a distribution policy that is adopted by the comptroller
and designed to preserve the purchasing power of the fund's assets and to provide
a stable and predictable stream of annual distributions. Expenses of managing the fund's assets shall be paid from the fund. Except as provided by this section, money in the fund may not be used for any purpose. Sections 403.095 and 404.071, Government Code, do not apply to the fund.
(d) In managing the assets of the fund, through procedures and subject to restrictions
the trust company considers appropriate, the trust company may acquire, exchange,
sell, supervise, manage, or retain any kind of investment that a prudent investor,
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.
(e) The amount available for distribution from the fund may be appropriated only:
(1) to the board to fund the programs created under this chapter; or
(2) as otherwise directed by the legislature.
(f) A public or private institution of higher education or other entity that may receive
money under a program described by Subsection (e) may solicit and accept gifts and
grants to be deposited to the credit of the fund. A gift or grant to the fund must be distributed and appropriated for the purposes
of the fund, subject to any limitation or requirement placed on the gift or grant
by the donor or granting entity.
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