(a) In this section:
(1) “Fund” means the Texas state buildings preservation endowment fund.
(2) “Trust company” means the Texas Treasury Safekeeping Trust Company.
(b) The Texas state buildings preservation endowment fund is created as a fund outside the treasury. The purpose of the fund is to maintain, preserve, rehabilitate, and restore the state buildings and grounds over which the board has jurisdiction.

(c) The fund consists of:
(1) money transferred or appropriated to the fund by the legislature, including money transferred to the fund from the former capital renewal trust fund, Governor’s Mansion renewal trust fund, and State Cemetery preservation trust fund;
(2) gifts, grants, and donations contributed to the fund for a purpose for which money in the fund may be used under this section; and
(3) any returns received from the investment of money in the fund.
(d) The trust company shall hold, manage, and invest the fund, and shall determine the amount available for distribution from the fund each year in accordance with a distribution policy adopted by the comptroller. The distribution policy must be designed to preserve the purchasing power of the assets of the fund, provide a stable and predictable series of annual distributions from the fund, and meet the liquidity needs of the fund as necessary. The expenses of managing the fund and its assets shall be paid from the fund. Except as otherwise provided by this section, money in the fund may not be used for any other purpose.
(e) 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. At the request of the trust company, the board shall provide the trust company with information the trust company determines is necessary to ensure that the trust company is able to achieve the objectives specified by Subsection (d).
(f) The board annually may request a distribution from the fund in an amount that may not exceed the amount the trust company determines is available for distribution in the applicable year under Subsection (d). Money distributed from the fund to the board may be used only for the purpose of maintaining, preserving, rehabilitating, and restoring the buildings and grounds over which the board has jurisdiction. The board shall allocate to projects at the Bob Bullock Texas State History Museum an amount equal to at least one-third of each annual distribution from the fund under this subsection, other than the portion of the distribution made using money transferred to the fund from the former capital renewal trust fund, Governor’s Mansion renewal trust fund, and State Cemetery preservation trust fund. The board, with the written approval of the Legislative Budget Board, may use money received from an annual distribution under this subsection to acquire land in close proximity to the State Cemetery for expansion of the cemetery. The board may not use money received from an annual distribution under this subsection to pay salaries, employee benefits, costs associated with employee benefits, or administration, operating, or program costs of the board or the buildings and grounds over which the board has jurisdiction.
(g) Subject to Subsection (h) and not more frequently than once each calendar year, the board may request an additional distribution from the fund in an amount that exceeds the amount the trust company determines is available for distribution from the fund in that year under Subsection (d). An additional distribution under this subsection may be used for a purpose described by Subsection (f). The trust company may not make an additional distribution under this subsection if the distribution would negatively affect the purchasing power of the assets of the fund as determined by the terms of the distribution policy adopted by the comptroller under Subsection (d).
(h) The board may receive an additional distribution from the fund under Subsection (g) only after the board certifies to the Legislative Budget Board that:
(1) the board has reviewed and approved the use of the money;
(2) all purchases made with the money will conform to any applicable provision of law governing state procurement and contracting; and
(3) the money will not be used to:
(A) pay salaries, employee benefits, costs associated with employee benefits, or administration, operating, or program costs of the board or the buildings and grounds over which the board has jurisdiction;
(B) except as provided by Subsection (f), acquire new historic sites or real property; or
(C) purchase capital equipment that is not related to the rehabilitation or restoration of a building or grounds.
(i) All expenditures by the board under this section are subject to audit by the state auditor.
(j) The board shall include in the strategic plan submitted under § 2056.002 a report on each project funded using money in the fund during the two-year period preceding the date on which the board submits the plan and a list of each project the board anticipates will be funded using money in the fund for the period covered by the plan.