Texas Education Code - EDUC § 74.704. Facilities

(a) The physical facilities of the center used in teaching and research programs, including libraries, auditoriums, research facilities, and health education buildings, may be provided by a public or private entity.  The board of regents may lease the facilities that are to be used as the physical facilities of the center.

(b) A teaching hospital considered suitable by the board of regents may be provided by a public or private entity.  The hospital may not be constructed, maintained, or operated with state funds.