(a) Funds for the grants shall be provided in accordance with the Government Code, §403.1055, relating to the Permanent Fund for Children and Public Health. Funds for Part III grants are also governed by the Health and Safety Code, §121.0065, relating to Grants for Essential Public Health Services.
(b) All grants shall be awarded competitively according to the provisions of this subchapter.
(c) Grants shall be made only to the extent that funds are appropriated and available.
(d) The department shall have the authority and discretion to:
  (1) determine the purpose(s) of the grants pursuant to law and this subchapter;
  (2) approve or deny grant applications;
  (3) determine the number, size and duration of grants; and
  (4) modify or terminate grants.
(e) The department shall determine the proportion of available funds to be granted under each part, provided that the funds available for each part shall be not less than 25% of the total amount of funds available. Such proportion shall be published in the request(s) for proposals.
(f) Grants made under Part III shall be allocated in such a way so that the total amount of funds available is equally divided between services for rural and urban areas of the state.
(g) If the funds for a part are not completely expended or allocated, the department shall have the authority to redistribute funds among the other two parts based on unfunded responses to a previous or current request for proposals. The percentage in subsection (e) of this section shall not apply to the redistribution of funds.
(h) The department shall not be liable, nor shall grant funds be used, for any costs incurred by applicants in the development, preparation, submission, or review of applications.
(i) Funds appropriated from the Permanent Fund for Children and Public Health to the department may be used by the department for Part I purposes and will not be subject to the grant and request for proposal process described in this chapter. The funds used by the department shall not be more than 10% of the estimated appropriation from the Permanent Fund for Children and Public Health as reflected in the General Appropriations Act, Article XII, Tobacco Settlement Receipts or in subsequent General Appropriations Acts. The department will use these funds to build capacity for providing essential public health services in areas not served by a local health department.

Source Note: The provisions of this §83.5 adopted to be effective February 10, 2000, 25 TexReg 779; amended to be effective August 29, 2002, 27 TexReg 7805