Texas 2023 88th Regular

Texas House Bill HR2432 Introduced / Bill

Filed 05/26/2023

                    88R32849 JES-D
 By: Bonnen H.R. No. 2432


 R E S O L U T I O N
 BE IT RESOLVED by the House of Representatives of the State of
 Texas, 88th Legislature, Regular Session, 2023, That House Rule 13,
 Section 9(a), be suspended in part as provided by House Rule 13,
 Section 9(f), to enable the conference committee appointed to
 resolve the differences on House Bill 3447 (the establishment and
 administration of the Texas Space Commission and the Texas
 Aerospace Research and Space Economy Consortium) to consider and
 take action on the following matters:
 (1)  House Rule 13, Section 9(a)(2), is suspended to permit
 the committee to omit text not in disagreement by omitting proposed
 SECTIONS 1 and 2 of the bill. The omitted text reads:
 SECTION 1.  Chapter 61, Education Code, is amended by adding
 Subchapter V-1 to read as follows:
 SUBCHAPTER V-1. TEXAS AEROSPACE RESEARCH AND SPACE ECONOMY
 CONSORTIUM
 Sec. 61.921.  DEFINITIONS. In this subchapter:
 (1)  "Consortium" means the Texas Aerospace Research
 and Space Economy Consortium.
 (2)  "Executive committee" means the executive
 committee of the consortium.
 Sec. 61.922.  ESTABLISHMENT; PURPOSE.  The Texas Aerospace
 Research and Space Economy Consortium is established to:
 (1)  identify research opportunities for entities
 within this state that:
 (A)  strengthen this state's proven leadership in
 civil, commercial, and military aerospace activity;
 (B)  enhance this state's position in aeronautics
 research and development, astronautics, space commercialization,
 and space flight infrastructure; and
 (C)  enhance the integration of the space,
 aeronautics, astronautics, and aviation industries into this
 state's economy; and
 (2)  provide funding and research recommendations to
 the Texas Space Commission established under Section 481.552,
 Government Code.
 Sec. 61.923.  CONSORTIUM COMPOSITION. The consortium is
 composed of:
 (1)  each institution of higher education; and
 (2)  any other entity that the executive committee
 considers necessary.
 Sec. 61.924.  ADMINISTRATIVE ATTACHMENT. (a) The
 consortium is administratively attached to the board for the
 purpose of receiving and administering appropriations and other
 funds under this subchapter. The board is not responsible for
 providing to the consortium staff, human resources, contract
 monitoring, purchasing, or any other administrative support
 services.
 (b)  The board may not use funds intended to carry out the
 purposes of this subchapter for any costs incurred by the board
 under this subchapter.
 Sec. 61.925.  EXECUTIVE COMMITTEE COMPOSITION. (a) The
 consortium is governed by an independent executive committee
 composed of the following nine members:
 (1)  two members appointed by the governor;
 (2)  two members appointed by the lieutenant governor;
 (3)  two members appointed by the speaker of the house
 of representatives;
 (4)  the chancellor of The Texas A&M University System
 or the chancellor's designee;
 (5)  the chancellor of The University of Texas System
 or the chancellor's designee; and
 (6)  the president of Rice University or the
 president's designee.
 (b)  In making appointments under Subsection (a), the
 governor, the lieutenant governor, and the speaker of the house of
 representatives, respectively, shall:
 (1)  prioritize appointing individuals with experience
 in:
 (A)  aeronautics;
 (B)  space economic development; and
 (C)  academic engagement with the space economy;
 and
 (2)  ensure that the appointments reflect, to the
 extent possible, the ethnic and geographic diversity of this state.
 (c)  A vacancy on the executive committee is filled in the
 same manner as the initial appointment.
 (d)  The executive committee shall:
 (1)  elect a presiding officer from among the members
 of the committee; and
 (2)  meet at the call of the presiding officer.
 Sec. 61.926.  GIFTS, GRANTS, AND DONATIONS. The executive
 committee may solicit and accept on behalf of the consortium gifts,
 grants, or donations from any public or private source for the
 purpose of carrying out this subchapter.
 Sec. 61.927.  GENERAL DUTIES. (a) The executive committee
 shall:
 (1)  develop and execute a comprehensive statewide
 strategic plan to further the purposes of the consortium;
 (2)  gather and coordinate recommendations from
 consortium members on funding and research opportunities in
 accordance with the purposes of the consortium; and
 (3)  establish procedures and policies for the
 administration of the consortium, including:
 (A)  procedures for documenting compliance by
 members of the committee and consortium and consortium staff with
 applicable laws governing conflicts of interest;
 (B)  designation of a member of the committee as
 the committee's liaison to the Texas Space Commission established
 under Section 481.552, Government Code; and
 (C)  procedures for entering into contracts with
 The Texas A&M University System as necessary for that system to
 provide administrative and staff support to the consortium.
 (b)  A member of the consortium under Section 61.923 may
 participate in consortium fact-finding, strategic planning, and
 the formation of recommendations for purposes of Subsections (a)(1)
 and (a)(2). Before assisting the executive committee as provided
 by this subsection, a member of the consortium must designate a
 liaison to the executive committee to represent that member.
 Sec. 61.928.  BIENNIAL REPORT. Not later than December 31 of
 each even-numbered year, the executive committee shall submit to
 the Texas Space Commission established under Section 481.552,
 Government Code, a written report that includes for that biennium:
 (1)  the activities and objectives of the consortium;
 (2)  a synopsis of the funding and research
 opportunities identified by the consortium under Section
 61.927(a);
 (3)  legislative recommendations, if any;
 (4)  prospective grants or funding the consortium
 members expect to receive, if any; and
 (5)  research accomplishments associated with the
 consortium, if any.
 SECTION 2.  Chapter 481, Government Code, is amended by
 adding Subchapter FF to read as follows:
 SUBCHAPTER FF. TEXAS SPACE COMMISSION
 Sec. 481.551.  DEFINITIONS. In this subchapter:
 (1)  "Board" means the board of directors of the
 commission.
 (2)  "Commission" means the Texas Space Commission.
 (3)  "Fund" means the Space Exploration and Aeronautics
 Research Fund.
 (4)  "Institution of higher education" has the meaning
 assigned by Section 61.003, Education Code.
 Sec. 481.552.  ESTABLISHMENT; PURPOSE. (a) The Texas Space
 Commission is established to strengthen this state's proven
 leadership in civil, commercial, and military aerospace activity.
 (b)  The purpose of the commission is to promote innovation
 in the fields of space exploration and commercial aerospace
 opportunities, including the integration of space, aeronautics,
 and aviation industries into the economy of this state.
 Sec. 481.553.  BOARD OF DIRECTORS; EXECUTIVE DIRECTOR. (a)
 The commission is governed by a nine-member board of directors. The
 board is composed of:
 (1)  three members appointed by the governor;
 (2)  three members appointed by the lieutenant
 governor; and
 (3)  three members appointed by the governor from a
 list of names submitted by the speaker of the house of
 representatives.
 (b)  In making appointments or selecting persons for
 inclusion on the list submitted to the governor under Subsection
 (a), the governor, lieutenant governor, and speaker of the house of
 representatives shall prioritize appointing or selecting, as
 applicable, individuals with experience in:
 (1)  commercial aerospace;
 (2)  civil aviation;
 (3)  military aerospace;
 (4)  space economic development;
 (5)  space-related academic research; and
 (6)  nonprofit support of the space economy.
 (c)  Members of the board serve two-year terms and may be
 reappointed for additional terms.
 (d)  A vacancy on the board is filled in the same manner as
 the initial appointment.
 (e)  The board shall:
 (1)  elect a presiding officer from among the members
 of the board;
 (2)  appoint an executive director of the commission
 and determine the title, functions, duties, powers, and salary of
 the executive director; and
 (3)  adopt rules as necessary to implement the duties
 of the commission under this subchapter.
 (f)  The executive director of the commission may hire staff
 as necessary to implement the duties of the commission under this
 subchapter.
 Sec. 481.554.  ADMINISTRATIVE ATTACHMENT. (a) The
 commission is administratively attached to the office of the
 governor.
 (b)  The office of the governor shall provide the commission
 staff and facilities as necessary to assist the commission in
 performing the commission's duties under this subchapter.
 Sec. 481.555.  AUTHORITY. The commission may, as necessary
 to perform the commission's duties under this subchapter:
 (1)  execute contracts and other documents, including
 by authorizing one or more members of the commission to execute
 contracts and other documents on behalf of the commission;
 (2)  conduct proceedings and other activities;
 (3)  establish and create boards, committees, or other
 entities, which may include an advisory board composed of
 representatives of military, federal government, and private
 aeronautic entities, and delegate authority or duties to those
 entities;
 (4)  provide financial services to support
 aerospace-related development within this state, including by:
 (A)  capitalizing, underwriting, leasing,
 selling, or securing funding for aerospace-related infrastructure;
 and
 (B)  acquiring, accepting, or administering
 grants and contracts to perform activities consistent with the
 commission's purpose;
 (5)  execute intergovernmental agreements and
 development agreements consistent with existing law, including
 with institutions of higher education and nonprofit entities; and
 (6)  engage in the planning and implementation of
 aerospace-related educational opportunities within this state in
 coordination with the Texas Aerospace Research and Space Economy
 Consortium established under Section 61.922, Education Code.
 Sec. 481.556.  STRATEGIC PLAN. (a) The commission shall
 develop and annually update a strategic plan for the promotion of
 space, aeronautics, and aviation economic development in this
 state.
 (b)  The strategic plan must include a list of potential
 projects that further the purpose of the commission, and, for each
 project:
 (1)  the estimated total cost for completion, including
 a potential state matching cost; and
 (2)  an assessment of the availability of external
 funding sources.
 (c)  The strategic plan may include any other information the
 commission determines is relevant to furthering the purpose of the
 commission.
 (d)  The board shall submit the strategic plan to the
 governor, the lieutenant governor, and the speaker of the house of
 representatives not later than December 31 of each year.
 Sec. 481.557.  SPACE EXPLORATION AND AERONAUTICS RESEARCH
 FUND; GRANTS. (a) The commission shall establish the Space
 Exploration and Aeronautics Research Fund to provide grants to
 eligible entities as provided by this section.
 (b)  The fund is a trust fund outside the treasury with the
 comptroller and administered by the commission.
 (c)  The fund is composed of:
 (1)  gifts, grants, or donations provided to the
 commission; and
 (2)  money from any source designated by the
 legislature.
 (d)  Using money available in the fund, the commission may
 provide grants to eligible entities described by Subsection (e) for
 the purposes of:
 (1)  development of emerging technologies required for
 any aspect of human space flight;
 (2)  research involving any aspect of space exploration
 and space flight;
 (3)  workforce training to promote space exploration
 and space flight; and
 (4)  curation of post-mission materials involved in
 space exploration and space flight.
 (e)  The following entities are eligible for a grant made
 under this section:
 (1)  a business or nonprofit entity involved in the
 space exploration, research, or aeronautics industry; and
 (2)  a governmental entity with which the commission
 has entered into an intergovernmental agreement for that purpose.
 (f)  The commission shall establish procedures for the
 administration and approval of grants made under this section,
 including procedures to ensure that a grant provided under this
 section is in the public interest and serves the public purpose of
 economic development and diversification.
 Explanation: The change is necessary to allow the Texas
 Space Commission and the Texas Aerospace Research and Space Economy
 Consortium to be established under a new chapter of the Government
 Code.
 (2)  House Rule 13, Section 9(a)(4), is suspended to permit
 the committee to add text on a matter not included in either the
 house or senate version of the bill by adding SECTION 1 of the bill
 to read as follows:
 SECTION 1.  Subtitle F, Title 4, Government Code, is amended
 by adding Chapter 482 to read as follows:
 CHAPTER 482. TEXAS AEROSPACE AND TECHNOLOGY SUPPORT
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 482.001.  DEFINITIONS. In this chapter:
 (1)  "Board" means the board of directors of the
 commission.
 (2)  "Commission" means the Texas Space Commission.
 (3)  "Fund" means the space exploration and aeronautics
 research fund.
 (4)  "Institution of higher education" has the meaning
 assigned by Section 61.003, Education Code.
 SUBCHAPTER B. TEXAS SPACE COMMISSION
 Sec. 482.101.  ESTABLISHMENT; PURPOSE. (a) The Texas Space
 Commission is established to strengthen this state's proven
 leadership in civil, commercial, and military aerospace activity.
 (b)  The purpose of the commission is to promote innovation
 in the fields of space exploration and commercial aerospace
 opportunities, including the integration of space, aeronautics,
 and aviation industries into the economy of this state.
 Sec. 482.102.  ADMINISTRATIVE ATTACHMENT. (a) The
 commission is administratively attached to the office of the
 governor, and the office of the governor shall provide
 administrative support to the commission as provided by this
 section. The equal employment opportunity officer and the internal
 auditor of the office of the governor shall serve the same functions
 for the commission as they serve for the office of the governor.
 (b)  The office of the governor and the board shall enter
 into a memorandum of understanding detailing:
 (1)  the administrative support the commission
 requires from the office of the governor to fulfill the purposes of
 this chapter;
 (2)  the reimbursement of administrative expenses to
 the office of the governor; and
 (3)  any other provisions available by law to ensure
 the efficient operation of the commission as attached to the office
 of the governor.
 Sec. 482.103.  SUNSET PROVISION. The commission is subject
 to Chapter 325 (Texas Sunset Act). Unless continued in existence as
 provided by that chapter, the commission is abolished and this
 chapter expires September 1, 2032.
 Sec. 482.104.  STATE AUDITOR. Nothing in this chapter
 limits the authority of the state auditor under Chapter 321 or other
 law.
 Sec. 482.105.  BOARD OF DIRECTORS. (a) The commission is
 governed by a nine-member board of directors. The board is composed
 of:
 (1)  three members appointed by the governor;
 (2)  three members appointed by the lieutenant
 governor; and
 (3)  three members appointed by the speaker of the
 house of representatives.
 (b)  In making appointments under Subsection (a), the
 governor, lieutenant governor, and speaker of the house of
 representatives shall prioritize appointing individuals with
 experience in:
 (1)  commercial aerospace;
 (2)  civil aviation;
 (3)  military aerospace;
 (4)  space economic development;
 (5)  space-related academic research; and
 (6)  nonprofit support of the space economy.
 (c)  Members of the board appointed by the governor,
 lieutenant governor, and speaker of the house serve at the pleasure
 of the appointing office for staggered six-year terms, with the
 terms of two members expiring on January 31 of each odd-numbered
 year.
 (d)  If a vacancy occurs on the board, the appropriate
 appointing authority shall appoint a successor, in the same manner
 as the original appointment, to serve for the remainder of the
 unexpired term. The appropriate appointing authority shall appoint
 the successor not later than the 30th day after the date the vacancy
 occurs.
 (e)  Not later than the 30th day after the date a board
 member's term expires, the appropriate appointing authority shall
 appoint a replacement.
 (f)  The board shall elect a presiding officer from among the
 members of the board.
 Sec. 482.106.  EXECUTIVE DIRECTOR. (a) The board shall hire
 an executive director. The executive director shall perform the
 duties required by this chapter and any duty delegated by the board.
 (b)  The executive director must have a demonstrated ability
 to lead and develop academic, commercial, military, or governmental
 partnerships and coalitions.
 (c)  The executive director may hire staff as necessary to
 implement the duties of the commission under this chapter.
 Sec. 482.107.  BOARD OF DIRECTORS: AUTHORITY. (a) The board
 shall:
 (1)  direct the activities of, establish goals for, and
 provide oversight to the commission;
 (2)  develop and execute a strategic plan in accordance
 with Section 482.201;
 (3)  establish the appropriate standards and executive
 bodies to ensure the proper use of funds authorized under this
 chapter for research and facilities development;
 (4)  identify research and funding opportunities for
 entities within this state that:
 (A)  strengthen and enhance this state's proven
 leadership position in civil, commercial, and military aeronautics
 research and development and space flight infrastructure;
 (B)  enhance the integration of the space,
 aeronautics, astronautics, and aviation industries into this
 state's economy; and
 (C)  promote and further research involving
 materials derived from or developed through space exploration and
 space flight;
 (5)  capitalize, promote, and assist in the development
 of workforce training to further the development of emerging
 technologies required for all aspects of space exploration; and
 (6)  solicit proposals on funding and research
 opportunities related to the objectives in this chapter from the
 Texas Aerospace Research and Space Economy Consortium established
 under Subchapter G.
 (b)  The board shall employ a chief compliance officer to
 monitor and report to the board regarding compliance with this
 chapter and rules adopted under this chapter. The chief compliance
 officer shall ensure that all grant proposals comply with this
 chapter and rules adopted under this chapter before the proposals
 are submitted to the board for approval.
 (c)  The board may:
 (1)  establish ad hoc advisory committees as necessary
 to carry out the board's duties under this chapter;
 (2)  adopt and use an official seal;
 (3)  solicit and accept gifts or grants, and contract
 with any entity;
 (4)  acquire and convey property or an interest in
 property;
 (5)  procure insurance and pay premiums on insurance of
 any type, in accounts, and from insurers as the board considers
 necessary and advisable to accomplish any of the commission's
 purposes;
 (6)  make grants to public or private persons with an
 established presence within this state to encourage economic
 development related to space and aerospace;
 (7)  make grants to enhance the capacity of
 institutions of higher education to participate in and support
 classified research;
 (8)  provide matching funding to external funding
 provided by relevant federal agencies, private industry, or private
 research organizations; and
 (9)  engage in the planning and implementation of
 aerospace-related educational opportunities within this state in
 coordination with the Texas Aerospace Research and Space Economy
 Consortium established under Subchapter G.
 SUBCHAPTER C.  STRATEGIC PLAN
 Sec. 482.201.  STRATEGIC PLAN. (a) The commission shall
 develop and annually update a strategic plan for the promotion of
 space, aeronautics, and aviation economic development in this
 state.
 (b)  The strategic plan must include a list of potential
 projects that further the purpose of the commission, and, for each
 project:
 (1)  the estimated total cost for completion, including
 a potential state matching cost; and
 (2)  an assessment of the availability of external
 funding sources.
 (c)  The strategic plan may include any other information the
 commission determines is relevant to furthering the purpose of the
 commission.
 (d)  The board shall submit the strategic plan to the
 governor, the lieutenant governor, and the speaker of the house of
 representatives not later than December 31 of each year.
 SUBCHAPTER D.  SPACE EXPLORATION AND AERONAUTICS RESEARCH FUND
 Sec. 482.301.  SPACE EXPLORATION AND AERONAUTICS RESEARCH
 FUND; ESTABLISHMENT. (a) The space exploration and aeronautics
 research fund is established to provide grants to eligible entities
 as provided by this chapter.
 (b)  The fund is a trust fund outside the treasury with the
 comptroller and administered by the commission.
 (c)  The fund is composed of:
 (1)  gifts, grants, and donations provided to the
 commission; and
 (2)  money from any source designated by the
 legislature.
 Sec. 482.302.  SPACE EXPLORATION AND AERONAUTICS RESEARCH
 FUND; GRANTS.  (a)  Using money available in the fund, the
 commission may provide grants to eligible entities described by
 Subsection (b) for the purposes of:
 (1)  development of emerging technologies required for
 any aspect of human space flight;
 (2)  research involving any aspect of space exploration
 and space flight;
 (3)  workforce training to promote space exploration
 and space flight;
 (4)  curation of post-mission materials involved in
 space exploration and space flight; and
 (5)  development of infrastructure useful or necessary
 for the establishment or maintenance of a spaceport.
 (b)  The following entities are eligible for a grant made
 under this subchapter:
 (1)  a business or nonprofit entity involved in the
 space exploration, research, or aeronautics industry; and
 (2)  a governmental entity with which the commission
 has entered into an intergovernmental agreement for that purpose.
 (c)  The board shall comply with the provisions of this
 chapter in developing the procedures for administration and
 approval of grants through the fund.
 (d)  The commission shall provide written notification to
 the Legislative Budget Board not later than the 30th day after the
 date a grant award is made from the fund.
 SUBCHAPTER E. ETHICS AND AUDIT
 Sec. 482.401.  CONFLICT OF INTEREST. (a)  The board shall
 adopt conflict-of-interest rules to govern members of the board and
 commission employees.
 (b)  A board member or commission employee shall recuse
 himself or herself, as provided by Section 482.402, if the board
 member or employee, or a person who is related to the board member
 or employee within the second degree of affinity or consanguinity,
 has a professional or financial interest in an entity receiving or
 applying to receive money from the commission.
 (c)  A person has a financial interest in an entity receiving
 or applying to receive money from the commission if the person:
 (1)  owns or controls, directly or indirectly, an
 ownership interest, including sharing in profits, proceeds, or
 capital gains, in an entity, or in a foundation or similar
 organization affiliated with an entity, receiving or applying to
 receive money from the commission; or
 (2)  could reasonably foresee that an action or
 recommendation by the board or commission could result in a
 financial benefit to the person.
 (d)  Nothing in this subchapter limits the authority of the
 board to adopt additional conflict-of-interest standards.
 Sec. 482.402.  DISCLOSURE OF CONFLICT OF INTEREST; RECUSAL.
 (a)  If a board member has a conflict of interest as described by
 Section 482.401 regarding an application that comes before the
 board for review or other action, the board member shall:
 (1)  provide written notice to the executive director
 and the presiding officer of the board or the next ranking member of
 the board if the presiding officer has the conflict of interest;
 (2)  disclose the conflict of interest in an open
 meeting of the board; and
 (3)  recuse himself or herself from participating in
 the review, discussion, deliberation, and vote on the application
 and from accessing information regarding the matter to be decided.
 (b)  If a commission employee has a conflict of interest
 described by Section 482.401 regarding an application that comes
 before the employee for review or other action, the employee shall:
 (1)  provide written notice to the executive director
 of the conflict of interest; and
 (2)  recuse himself or herself from participating in
 the review of the application and be prevented from accessing
 information regarding the matter to be decided.
 (c)  A board member or commission employee with a conflict of
 interest may seek a waiver as provided by Section 482.403.
 (d)  A board member or commission employee who reports a
 potential conflict of interest or another impropriety or
 self-dealing of the member or employee and who fully complies with
 the recommendations of the general counsel and recusal requirements
 is considered in compliance with the conflict-of-interest
 provisions of this subchapter.  The member or employee is subject to
 other applicable laws, rules, requirements, and prohibitions.
 (e)  A board member or commission employee who intentionally
 violates this section is subject to removal from further
 participation in the commission's review process.
 Sec. 482.403.  EXCEPTIONAL CIRCUMSTANCES REQUIRING
 PARTICIPATION; INVESTIGATION OF UNREPORTED CONFLICT OF INTEREST.
 (a)  The board shall adopt rules governing the waiver of the
 conflict-of-interest requirements of this subchapter under
 exceptional circumstances for a board member or commission
 employee.  The rules must:
 (1)  authorize the executive director or a board member
 to propose granting a waiver by submitting to the presiding officer
 of the board a written statement about the conflict of interest, the
 exceptional circumstance requiring the waiver, and any proposed
 limitations to the waiver;
 (2)  require a proposed waiver to be publicly reported
 at a meeting of the board;
 (3)  require a majority vote of the board members
 present and voting to grant a waiver; and
 (4)  require the commission to retain documentation of
 each waiver granted.
 (b)  The board shall adopt rules governing the investigation
 and consequences of unreported conflicts of interest.
 Sec. 482.404.  CODE OF CONDUCT. (a)  The board shall adopt a
 code of conduct applicable to each board member and commission
 employee.
 (b)  The code of conduct at a minimum must include provisions
 prohibiting the member, the employee, or the member's or employee's
 spouse from:
 (1)  accepting or soliciting any gift, favor, or
 service that could reasonably influence the member or employee in
 the discharge of official duties or that the member, employee, or
 spouse of the member or employee knows or should know is being
 offered with the intent to influence the member's or employee's
 official conduct;
 (2)  accepting employment or engaging in any business
 or professional activity that would reasonably require or induce
 the member or employee to disclose confidential information
 acquired in the member's or employee's official position;
 (3)  accepting other employment or compensation that
 could reasonably impair the member's or employee's independent
 judgment in the performance of official duties;
 (4)  making personal investments or having a financial
 interest that could reasonably create a substantial conflict
 between the member's or employee's private interest and the member's
 or employee's official duties;
 (5)  intentionally or knowingly soliciting, accepting,
 or agreeing to accept any benefit for exercising the member's
 official powers or performing the member's or employee's official
 duties in favor of another;
 (6)  leasing, directly or indirectly, any property,
 capital equipment, employee, or service to any entity that receives
 a grant from the commission;
 (7)  submitting a grant application for funding by the
 board;
 (8)  serving on the board of directors of an
 organization established with a grant from the commission; or
 (9)  serving on the board of directors of a grant
 recipient.
 SUBCHAPTER F. PROCEDURE FOR MAKING AWARDS
 Sec. 482.501.  RULES FOR GRANT AWARD PROCEDURE. (a)  The
 board shall adopt rules regarding the procedure for awarding grants
 to an applicant under this chapter, including a procedure for the
 Texas Aerospace Research and Space Economy Consortium to make
 recommendations to the board for grant awards.
 (b)  The board may not award a grant to an applicant who has
 made a gift or grant to the commission or a nonprofit organization
 established to provide support to the commission.
 Sec. 482.502.  MULTIYEAR PROJECTS. The board may grant
 money for a multiyear project.  The board shall specify the total
 amount of money approved to fund the multiyear project. The total
 amount specified is considered for purposes of this subchapter to
 have been awarded in the state fiscal year that the project is
 approved by the board. The board shall distribute only the money
 that will be expended during that fiscal year. The board shall
 distribute the remaining grant money as the money is needed in each
 subsequent state fiscal year.
 Sec. 482.503.  PREFERENCE FOR TEXAS SUPPLIERS. The board
 shall establish standards to ensure that grant recipients purchase
 goods and services from suppliers in this state to the extent
 reasonably possible, in a good faith effort to achieve a goal of
 more than 50 percent of those purchases from suppliers in this
 state.
 Sec. 482.504.  GRANT EVALUATION. (a) The executive
 director shall determine the grant review process under this
 section.  The executive director may terminate grants that do not
 meet contractual obligations.
 (b)  The executive director shall report at least annually to
 the board on the progress and continued merit of each grant funded
 by the commission.
 (c)  The board shall establish and implement reporting
 requirements to ensure that each grant recipient complies with the
 terms and conditions in the grant contract, including verification
 of the amounts of matching money dedicated to the research that is
 the subject of the grant award to the grant recipient.
 (d)  The commission shall implement a system to:
 (1)  track the dates on which grant recipient reports
 are due and are received by the commission; and
 (2)  monitor the status of any required report that is
 not timely submitted to the commission by a grant recipient.
 Sec. 482.505.  GRANT RECORDS. The commission shall maintain
 complete records of:
 (1)  the review of each grant application submitted to
 the board, including an application reviewed in accordance with
 rules adopted under this chapter, even if the grant application is
 not funded by the board or is withdrawn after submission;
 (2)  each grant recipient's financial reports,
 including the amount of matching money dedicated to the research
 specified for the grant award;
 (3)  each grant recipient's progress reports; and
 (4)  the board's review of the grant recipient's
 financial reports and progress reports.
 SUBCHAPTER G. TEXAS AEROSPACE RESEARCH AND SPACE ECONOMY
 CONSORTIUM
 Sec. 482.601.  DEFINITIONS. In this subchapter:
 (1)  "Consortium" means the Texas Aerospace Research
 and Space Economy Consortium.
 (2)  "Executive committee" means the executive
 committee of the consortium.
 Sec. 482.602.  SUNSET PROVISION. The consortium is subject
 to Chapter 325 (Texas Sunset Act). Unless continued in existence as
 provided by that chapter, the consortium is abolished and this
 subchapter expires September 1, 2032.
 Sec. 482.603.  ESTABLISHMENT; PURPOSE.  The Texas Aerospace
 Research and Space Economy Consortium is established to:
 (1)  identify research opportunities for entities
 within this state that:
 (A)  strengthen this state's proven leadership in
 civil, commercial, and military aerospace activity;
 (B)  enhance this state's position in aeronautics
 research and development, astronautics, space commercialization,
 and space flight infrastructure; and
 (C)  enhance the integration of the space,
 aeronautics, astronautics, and aviation industries into this
 state's economy; and
 (2)  provide funding and research recommendations to
 the commission.
 Sec. 482.604.  CONSORTIUM COMPOSITION. The consortium is
 composed of:
 (1)  each institution of higher education; and
 (2)  any other entity that the executive committee
 considers necessary.
 Sec. 482.605.  ADMINISTRATIVE ATTACHMENT. The consortium is
 administratively attached to the office of the governor for the
 purpose of receiving and administering appropriations and other
 funds under this subchapter. The office of the governor is not
 responsible for providing to the consortium staff, human resources,
 contract monitoring, purchasing, or any other administrative
 support services.
 Sec. 482.606.  EXECUTIVE COMMITTEE COMPOSITION. (a) The
 consortium is governed by an independent executive committee
 composed of the following nine members:
 (1)  two members appointed by the governor;
 (2)  two members appointed by the lieutenant governor;
 (3)  two members appointed by the speaker of the house
 of representatives;
 (4)  the chancellor of The Texas A&M University System
 or the chancellor's designee;
 (5)  the chancellor of The University of Texas System
 or the chancellor's designee; and
 (6)  the president of Rice University or the
 president's designee.
 (b)  In making appointments under Subsection (a), the
 governor, the lieutenant governor, and the speaker of the house of
 representatives, respectively, shall:
 (1)  prioritize appointing individuals with experience
 in:
 (A)  aeronautics;
 (B)  space economic development; and
 (C)  academic engagement with the space economy;
 and
 (2)  ensure that the appointments reflect, to the
 extent possible, the ethnic and geographic diversity of this state.
 (c)  A vacancy on the executive committee is filled in the
 same manner as the initial appointment.
 (d)  The executive committee shall:
 (1)  elect a presiding officer from among the members
 of the committee; and
 (2)  meet at the call of the presiding officer.
 Sec. 482.607.  GIFTS, GRANTS, AND DONATIONS. The executive
 committee may solicit and accept on behalf of the consortium gifts,
 grants, or donations from any public or private source for the
 purpose of carrying out this subchapter.
 Sec. 482.608.  GENERAL DUTIES. (a) The executive committee
 shall:
 (1)  develop and execute a comprehensive statewide
 strategic plan to further the purposes of the consortium;
 (2)  gather and coordinate recommendations from
 consortium members on funding and research opportunities in
 accordance with the purposes of the consortium; and
 (3)  establish procedures and policies for the
 administration of the consortium, including:
 (A)  procedures for documenting compliance by
 members of the committee and consortium and consortium staff with
 applicable laws governing conflicts of interest;
 (B)  designation of a member of the committee as
 the committee's liaison to the commission; and
 (C)  procedures for entering into contracts with
 The Texas A&M University System as necessary for that system to
 provide administrative and staff support to the consortium.
 (b)  A member of the consortium may participate in consortium
 fact-finding and strategic planning and the formation of
 recommendations for purposes of Subsections (a)(1) and (a)(2).
 Before assisting the executive committee as provided by this
 subsection, a member of the consortium must designate a liaison to
 the executive committee to represent that member.
 Sec. 482.609.  BIENNIAL REPORT. Not later than December 31
 of each even-numbered year, the executive committee shall submit to
 the commission a written report that includes for that biennium:
 (1)  the activities and objectives of the consortium;
 (2)  a synopsis of the funding and research
 opportunities identified by the consortium;
 (3)  legislative recommendations, if any;
 (4)  prospective grants or funding the consortium
 members expect to receive, if any; and
 (5)  research accomplishments associated with the
 consortium, if any.
 Explanation: The change is necessary to establish the Texas
 Space Commission and the Texas Aerospace Research and Space Economy
 Consortium as entities administratively attached to the office of
 the governor under a new chapter of the Government Code and to
 provide certain governance and other requirements applicable to
 those entities.