(a) In this section:
(1) “Health service region” means a public health region designated under § 121.007.
(2) “Local health department” means a local health department established under Subchapter D, Chapter 121.
(3) “Local health unit” has the meaning assigned by § 121.004.
(4) “Public health district” means a health district established under Subchapter E, Chapter 121.
(b) The department, in collaboration with the Public Health Funding and Policy Committee established under § 117.051, shall:
(1) develop funding formulas for federal and state funds appropriated to the department to be allocated to local health departments, local health units, public health districts, and health service regions’ regional headquarters, based on population, population density, disease burden, social determinants of health, local efforts to prevent disease, and other relevant factors as determined by the department and committee;
(2) evaluate the feasibility and benefits of placing a cap on the percentage of public health funds that can be used on administrative costs at local health departments, local health units, public health districts, and health service regions’ regional headquarters; and
(3) evaluate public health functions provided by the department, local health departments, local health units, public health districts, and health service regions’ regional headquarters and determine if another entity, including a private entity, can provide those functions more effectively.