TITLE 10. COMMUNITY DEVELOPMENT

PART 1. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

CHAPTER 80. MANUFACTURED HOUSING

The Manufactured Housing Division of the Texas Department of Housing and Community Affairs (the "Department") proposes to amend 10 Texas Administrative Code, Chapter 80, §§80.3, 80.30 and 80.38 relating to the regulation of the manufactured housing program. The rule revisions update eliminates the Field Verification Inspection Fee and makes changes for clarification purposes.

10 TAC §80.3(j) is amended by removing the Field Verification Inspection fee of $100, as the Department lacks the resources to complete these inspections and the Manufactured Housing Division is not statutorily required to provide this service.

10 TAC §80.30(a) is amended to clarify that a licensee may maintain their files electronically as long as the Department has access upon request.

10 TAC §80.38(c) is amended by adding new subsection (c) to clarify that a licensee must deliver the Formaldehyde Health Notice to the consumer before the execution of a mutually binding sales agreement or retail installment sales contract and may not transfer ownership unless the consumer receives prior delivery of the form.

Jim R. Hicks, Executive Director of the Manufactured Housing Division of the Texas Department of Housing and Community Affairs, has determined that for the first five-year period that the proposed rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering these sections. There will be no effect on small or micro-businesses because of the proposed amendments. The amendments will not cause the loss of any business opportunities or have an adverse effect on the businesses. There are no additional anticipated economic costs to persons who are required to comply with the proposed rules.

Mr. Hicks also has determined that for each year of the first five years that the proposed rules are in effect the public benefit for enforcing the amendments will be to maintain the necessary resources required to improve the general welfare and safety of purchasers of manufactured housing in this state as per §1201.002 of the Manufactured Housing Standards Act.

Mr. Hicks has also determined that for each year of the first five years the proposed rules are in effect there should be no adverse effect on a local economy, and therefore no local employment impact statement is required under Administrative Procedure Act (APA), Texas Government Code §2001.022.

Mr. Hicks has also determined that for each of the first five years the proposed rules are in effect would not have a large government growth impact. The proposed rules do not create or eliminate a government program. Implementation of the proposed rules does not require the creation of new employee positions or the elimination of existing employee positions. Implementation of the proposed rules do not require the increase or decrease in future legislative appropriations to the agency. The proposed rules eliminates a fee paid to the agency. The proposed rules do not create a new regulation. The proposed rules do not expand, limit, or repeal an existing regulation. The proposed rules do not increase or decrease the number of individuals subject to the rules applicability. The proposed rules do not positively or adversely affect this states economy. This statement is made pursuant to the Administrative Procedures Act, Texas Government Code, §2001.0221.

If requested, the Department will conduct a public hearing on this rulemaking, pursuant to the Administrative Procedure Act, Texas Government Code §2001.029. The request for a public hearing must be received by the Department within 15 days after publication.

Comments may be submitted to Mr. Jim R. Hicks, Executive Director of the Manufactured Housing Division of the Texas Department of Housing and Community Affairs, P.O. Box 12489, Austin, Texas 78711-2489 or by e-mail at mhproposedrulecomments@tdhca.state.tx.us. The deadline for comments is no later than 30 days from the date that these proposed rules are published in the Texas Register.

SUBCHAPTER A. CODES, STANDARDS, TERMS, FEES AND ADMINISTRATION

10 TAC §80.3

The amendments are proposed under §1201.052 of the Texas Occupations Code, which provides the Director with authority to amend, add, and repeal rules governing the Manufactured Housing Division of the Department and §1201.053 of the Texas Occupations Code, which authorizes the board to adopt rules as necessary and the director to administer and enforce the manufactured housing program through the Manufactured Housing Division.

No other statutes, codes, or articles are affected by the proposed rule.

§80.3.Fees.

(a) - (i) (No change.)

[(j) There is a fee of $100 for the Department to go to a site and perform a field verification confirming a home's identity, location, identification numbers, or ownership.]

(j) [(k)] Fees Relating to Statements of Ownership. Each fee shall accompany the required documents delivered or mailed to the Department at its principal office in Austin.

(1) - (4) (No change.)

(k) [(l)] Method of Payment.

(1) - (2) (No change.)

(l) [(m)] Loss of Check Writing Privileges. Any person who has more than one (1) time paid for anything requiring a fee under these rules with a check that is returned uncollectible, whether "NSF," closed account, refer to maker, or for any similar reason, is required to make all future payments, if any, by means of money order or cashier's check.

(m) [(n)] The director may approve a refund of all or a portion of any fee collected if he or she makes a documented determination showing that:

(1) - (3) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 22, 2022.

TRD-202201589

Jim R. Hicks

Executive Director

Texas Department of Housing and Community Affairs

Earliest possible date of adoption: June 5, 2022

For further information, please call: (512) 475-2206


SUBCHAPTER C. LICENSEES' RESPONSIBILITIES AND REQUIREMENTS

10 TAC §80.30, §80.38

The amended sections are proposed under §1201.052 of the Texas Occupations Code, which provides the Director with authority to amend, add, and repeal rules governing the Manufactured Housing Division of the Department and §1201.053 of the Texas Occupations Code, which authorizes the board to adopt rules as necessary and the director to administer and enforce the manufactured housing program through the Manufactured Housing Division.

No other statutes, codes, or articles are affected by the proposed rules.

§80.30.All Licensees' Responsibilities.

(a) A licensee, other than a salesperson, must maintain all required records at a location that meets the requirements of §1201.103(a-1) of the Standards Act. All records required by this chapter must be maintained in the licensee's files for a period of not less than six (6) years. Unless stated otherwise, a record of any disclosure to be given shall reflect that it was properly completed, executed, and dated. Files may be maintained in an electronic format, as long as they can be produced upon request by the Department for review.

(b) - (i) (No change.)

§80.38.Right to Advance Copy of Certain Documents.

(a) - (b) (No change.)

(c) A retailer or manufacturer may not transfer ownership of a new or used HUD-code manufactured home or otherwise sell, assign, or convey a HUD-code manufactured home to a consumer unless the retailer or manufacturer delivers to the consumer a formaldehyde health notice.

(1) The formaldehyde health notice must be delivered before the execution of a mutually binding sales agreement or retail installment sales contract.

(2) The formaldehyde health notice will be provided on the Manufactured Housing Division's website. The notice must be of the type, size and format required by the director. A retailer or manufacturer may not vary the content or form of the notice.

(3) The formaldehyde health notice may be combined with other disclosures, if deemed appropriate.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 22, 2022.

TRD-202201590

Jim R. Hicks

Executive Director

Texas Department of Housing and Community Affairs

Earliest possible date of adoption: June 5, 2022

For further information, please call: (512) 475-2206


PART 5. OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM OFFICE

CHAPTER 190. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE GRANT PROGRAM

The following rulemaking covers 10 TAC §§190.1 - 190.4, 190.6 - 190.8, 190.10 - 190.14, 190.20 - 190.25, 190.28, 190.29, 190.32, 190.36, 190.38, 190.40 - 190.53, 190.55 - 190.58.

The Office of the Governor ("OOG") proposes to repeal 10 TAC §190.12, concerning Deadline for Advisory Board Recommendations, and §190.29, concerning Confidentiality of Information, to reflect the repeal of Subchapter H, Chapter 62 of the Education Code, as added by Chapter 448, Acts of the 84th Legislature, Regular Session, by Senate Bill 1525, 87th Legislature, Regular Session. The OOG also proposes the repeal of 10 TAC, Subchapter E, concerning Administering Grants, and Subchapter F, concerning Program Administration and Audit, to simplify the Chapter and reduce duplicative work by removing provisions that are already specified in agreements with grantees.

The OOG also proposes amendments to 10 TAC §190.1, concerning Definitions; §190.2, concerning Authority and Purpose; §190.3, concerning Construction of Rules; §190.4, concerning Source of Funds; §190.6, concerning Funding Levels and Withholding of Funds; §190.7, concerning Match; §190.8, concerning Compliance with Other Standards; §190.10, concerning Purpose of the Governor's University Research Initiative Advisory Board; §190.11, concerning Advisory Board Meetings; §190.13, concerning Conflicts of Interest; §190.14, concerning Communications between the Advisory Board and Applicants, Distinguished Researchers and Others; §190.20, concerning Application Process; §190.21, concerning GURI Eligible Applicants; §190.22, concerning Ineligible Recruiting Activities; §190.23, concerning Application Form; §190.24, concerning Initial Screening; Evaluation and Review Process; §190.25, concerning Grant Award Recommendations and Decisions; §190.28, concerning Grant Agreement; §190.32, concerning Professional and Consultant; §190.36, concerning Construction, and §190.38, concerning Unallowable Costs. The OOG identified the necessity of the proposed repeals and amendments during the Governor's Office's periodic review of 10 TAC Chapter 190, conducted pursuant to Texas Government Code 2001.039. The proposed amendments will expand the types of national academic recognitions that are considered to be highly prestigious for purposes of determining who qualifies as a "Distinguished researcher"; reflect the addition of Section 62.169 of the Education Code by Senate Bill 1525, 87th Legislature, Regular Session; reflect the repeal of Subchapter H, Chapter 62 of the Education Code, as added by Chapter 448, Acts of the 84th Legislature, Regular Session, by Senate Bill 1525, 87th Legislature, Regular Session; simplify the Chapter by removing provisions that are more appropriately determined by agency guidelines or specified in agreements with grantees; update references to relevant guidelines; and improve readability and clarity.

EXPLANATION OF PROPOSED AMENDMENTS

The rules under consideration relate to the Governor's University Research Initiative ("GURI") and were implemented to create and administer the GURI grant program, as enacted by Senate Bill 632 and House Bills 7 and 26 during the 84th Legislature, Regular Session, to facilitate the recruitment of distinguished researchers to eligible Texas universities.

The proposed amendments to §190.1 expand the types of national academic recognitions that are considered to be highly prestigious for purposes of determining who qualifies as a "Distinguished researcher"; establish that a group of researchers who have attained national academic recognition as are eligible to qualify for a "Distinguished researcher" designation; and reflect the repeal of Subchapter H, Chapter 62 of the Education Code, as added by Chapter 448, Acts of the 84th Legislature, Regular Session, by Senate Bill 1525, 87th Legislature, Regular Session.

The proposed amendments to §190.2 reflect the addition of Section 62.169 of the Education Code by Senate Bill 1525, 87th Legislature, Regular Session.

The proposed amendments to §190.6 simplify the Chapter and reduce duplicative work by removing provisions that are already currently specified in agreements with grantees.

The proposed amendments to §190.8 update references to relevant guidelines.

The proposed amendments to §190.20 simplify the Chapter by removing provisions that are currently specified in agency guidelines.

The proposed amendments to §190.21 make conforming changes to be consistent with the proposed amendments to §190.1.

The proposed amendments to §190.22 reflect the repeal of Subchapter H, Chapter 62 of the Education Code, as added by Chapter 448, Acts of the 84th Legislature, Regular Session.

The proposed amendments to §190.24 simplify the Chapter by removing provisions that are currently specified in agency guidelines.

The proposed amendments to §190.25 reflect the repeal of Subchapter H, Chapter 62 of the Education Code, as added by Chapter 448, Acts of the 84th Legislature, Regular Session.

The proposed amendments to §190.28 simplify the Chapter by removing provisions that already currently specified in agreements with grantees.

The remaining proposed amendments clarify or remove outdated or unnecessary language from the rules, including using the word "shall" or "must" when provisions require certain behaviors or actions, and other minor grammatical or structural changes to improve readability and clarity.

FISCAL NOTE

Adriana Cruz, Executive Director, Texas Economic Development and Tourism Office, has determined that during each year of the first five years in which the proposed amendments are in effect, there will be no expected fiscal impact on state and local governments as a result of enforcing or administering the proposed amendments.

Ms. Cruz does not anticipate any measurable effect on local employment or the local economy as a result of the proposed amendments.

PUBLIC BENEFIT AND COSTS

Ms. Cruz has also determined that during each year of the first five years in which the proposed amendments are in effect, the public benefit anticipated as a result of the proposed rule changes will be to improve the efficiency by which Office of the Governor receives, considers, and awards eligible institutions grant funds, and also to increase participation in the GURI grant program due to the expanded types of national academic recognitions that are considered to be highly prestigious for purposes of determining which individuals or groups qualify as a "Distinguished researcher." There are no anticipated economic costs for persons required to comply with the proposed rules.

Ms. Cruz has determined there may be a positive fiscal impact on the state of Texas as a result of the proposed rules as Texas gains more distinguished researchers and sees additional participation in the GURI program from the increased pool of eligible institutions.

There will be no adverse economic effect on small businesses, micro-businesses, or rural communities. Since the OOG has determined that the proposed rule will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, are not required.

GOVERNMENT GROWTH IMPACT STATEMENT

Ms. Cruz has determined that during each year of the first five years in which the proposed amendments are in effect, the amendments:

1) will not create or eliminate a government program;

2) will not require the creation of new employee positions or the elimination of existing employee positions;

3) will not require an increase or decrease in future legislative appropriations to the OOG;

4) will not require an increase or decrease in fees paid to the OOG;

5) do not create new regulations;

6) will not expand, limit, or repeal existing regulations;

7) will not increase or decrease the number of individuals subject to the applicability of the rules; and

8) will not positively or adversely affect the Texas economy.

TAKINGS IMPACT ASSESSMENT

The OOG has determined that no private real property interests are affected by the proposed rules and the proposed rules do not restrict, limit, or impose a burden on an owner's rights to the owner's private real property that would otherwise exist in the absence of government action. As a result, the proposed amendments do not constitute a taking or require a takings impact assessment under Government Code §2007.043.

SUBMISSION OF COMMENTS

Written comments regarding the proposed rule amendments may be submitted for 30 days following the date of publication of this notice by mail to Terry Zrubek, Director EDT Finance, Office of the Governor, Economic Development and Tourism, P.O. Box 12428, Austin, Texas 78711 or by email to Terry.Zrubek@gov.texas.gov with the subject line "GURI Rule Review." The deadline for receipt of comments is 5:00 p.m., Central Time, on June 5, 2022.

SUBCHAPTER A. DEFINITIONS AND GENERAL PROVISIONS

10 TAC §§190.1 - 190.4, 190.6 - 190.8

STATUTORY AUTHORITY

The amendments are proposed under section 62.162 of the Texas Education Code, which authorizes the Texas Economic Development and Tourism Office, in consultation with the Texas Higher Education Coordinating Board, to adopt rules necessary to administer GURI.

CROSS REFERENCE TO STATUTE

Chapter 62 of the Texas Education Code.

§190.1.Definitions.

The following terms and abbreviations, when used in this Chapter [chapter], shall have the following meanings, unless the context clearly indicates otherwise:

(1) "Advisory board" means the Governor's University Research Initiative Advisory Board, the nine member board appointed by the Governor.

(2) "Applicant" is the entity that applies for a grant from the Governor's University Research Initiative program.

(3) "Application" is the information that is required to be completed and submitted by an applicant for a grant from the Governor's University Research Initiative program.

(4) "Distinguished researcher" means [a researcher who is]:

(A) an individual researcher who:

(i) is a Nobel laureate [or the recipient of an equivalent honor]; [or]

(ii) [(B)] is a member of [a national honorific society, such as] the National Academy of Sciences, the National Academy of Engineering, or the National Academy of Medicine, formerly known as the Institute of Medicine; or [an equivalent honorific organization.]

(iii) has attained a national academic recognition listed in the categories under 19 TAC §15.43(b)(3)(E)(ii), unless the OOG, in its sole determination, determines that the recognition, notwithstanding its inclusion in such list, is inconsistent with the purpose and priorities of GURI; or

(B) a group of researchers who have attained a recognition described by Subparagraph (A)(iii) of this Paragraph.

(5) "Eligible institution" means a general academic teaching institution or medical and dental unit [or health-related institution].

(6) "Fund" means the Governor's University Research Initiative fund established under §62.165 [§§62.165 and 62.168] of the Education Code.

(7) "General academic teaching institution" has the meaning assigned by §61.003 of the Education Code.

(8) "Governing Board" has the meaning assigned by §61.003 of the Education Code.

(9) "Grant agreement" means the GURI grant agreement executed by the Office of the Governor and the grantee.

(10) "Grantee" is the entity named as the recipient of the award in the grant agreement.

(11) "GURI" means Governor's University Research Initiative.

[(12) "Health-related institution" means a medical and dental unit as defined by §61.003 of the Education Code and any other public health science center, public medical school, or public dental school established by statute or in accordance with Chapter 61 of the Education Code.]

(12) [(13)] "Medical and dental unit" has the meaning assigned by §61.003 of the Education Code.

(13) [(14)] "OOG" or "Office" means the Texas Economic Development and Tourism Office within the Office of the Governor.

(14) [(15)] "Private or independent institution of higher education" has the meaning assigned by §61.003 of the Education Code.

§190.2.Authority and Purpose.

(a) Authority for this Chapter [chapter] is provided in [the] §§62.161 - 62.169 [§§62.161 - 62.168] of the Education Code, Governor's University Research Initiative. These rules establish procedures to administer this grant program to award matching grants to eligible [Texas] institutions in Texas [of higher education].

(b) The purpose of the GURI grant program is to provide matching grants to qualified applicants [eligible applicant institutions] to provide funds to support the recruitment of distinguished researchers to eligible institutions in Texas in the areas of science, technology, engineering, mathematics, and medicine.

§190.3.Waiver [Construction] of Rules.

[(a) Unless otherwise noted, these rules apply to the GURI grant program.]

[(b)] The OOG Chief of Staff or his designee may, in his sole discretion, waive any provision of this Chapter [chapter] upon a finding that the public interest would be furthered by granting a waiver. Any such waiver must be consistent with applicable statutory law.

§190.4.Source of Funds.

Section 62.162 of the Education Code authorizes [Sections 62.162 and 62.168 of the Education Code, authorize] the OOG to use money appropriated to the fund for grants to eligible applicant institutions. The GURI fund is a dedicated account in the state's general revenue fund. The source of funds for the GURI grant program is a biennial appropriation by the Texas Legislature in addition to other authorized deposits in the fund.

§190.6.Funding Levels and Withholding of Funds.

[(a) The minimum and maximum amount of funding will be stated in the application.]

(a) [(b)] The amount of an award is determined solely by the OOG. The OOG [may award grants at amounts above or below the established funding levels and] is not obligated to fund a grant at the amount requested by the applicant.

(b) [(c)] The OOG may withhold some or all grant funds if the awarded institution fails to meet grant requirements, including, but not limited to, [demonstrates any of] the following:

(1) Failure to attain grant-related program or project goals;

(2) Failure to adhere to GURI grant agreement requirements or special conditions;

(3) Improper expenditure of awarded funds as determined by the OOG;

(4) Failure to submit reliable or timely reports, including, but not limited to, financial status reports and progress reports; and/or

(5) Failure to achieve timely financial closeout at the end of the project period of any grant.

§190.7.Match.

(a) Using cash or in-kind contributions, an applicant must commit amounts at least equal to the amount of the grant requested from the OOG. [The GURI grant program will have a match requirement.] An applicant eligible institution may commit for matching purpose any funds of the institution immediately available for that purpose other than appropriated general revenue.

[(b) The match requirement must be met by cash or in-kind commitments equal to the amount of the grant award made by OOG.]

(b) [(c)] The GURI grant award may not be used as a source of funding to support a match requirement for any other grant obtained by the institution.

§190.8.Compliance with Other Standards.

(a) Grantees must comply with all applicable state and federal statutes, regulations, administrative rules, OOG policies, procedures, and guidelines applicable to the GURI grant program.

(b) Grantees must comply with the relevant provisions of the Uniform Grant Management Standards and the State of Texas Contract Management Guide, or their successors, as adopted in accordance with Texas law.

(c) Grantees must comply with applicable laws [law] relating to any research proposed or conducted with GURI grant funds.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 25, 2022.

TRD-202201616

Terry Zrubek

Director, EDT Finance

Office of the Governor, Economic Development and Tourism Office

Earliest possible date of adoption: June 5, 2022

For further information, please call: (512) 463-2000


SUBCHAPTER B. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE ADVISORY BOARD

10 TAC §§190.10, 190.11, 190.13, 190.14

STATUTORY AUTHORITY

The amendments are proposed under section 62.162 of the Texas Education Code, which authorizes the Texas Economic Development and Tourism Office, in consultation with the Texas Higher Education Coordinating Board, to adopt rules necessary to administer GURI.

CROSS REFERENCE TO STATUTE

Chapter 62 of the Texas Education Code.

§190.10.Purpose of the Governor's University Research Initiative Advisory Board.

The Governor's University Research Initiative Advisory Board is established to assist the OOG with the review and evaluation of applications for funding of grant proposals under GURI [eligible applicant institutions]. The advisory board shall [will] make recommendations to the OOG for approval or disapproval of grant applications. Decision making authority lies with the OOG.

§190.11.Advisory Board Meetings.

(a) [Meetings.] The advisory board shall meet in person or by teleconference to consider grant applications. Because the advisory board is purely advisory in nature and does not have supervision or control over public business or public policy, the advisory board is not subject to the Open Meetings Act.

(b) If a quorum is present, action by a majority of the advisory board members present [Quorum. A quorum of the advisory board is 5 members. A majority of the quorum] is required to adopt a proposed recommendation of the advisory board.

§190.13.Conflicts of Interest.

(a) A member of the advisory board who is or has been employed by, is or has been a party to a contract for any purpose with, or is a student or former student of an applicant eligible institution may not be involved in the review, evaluation, or recommendation of a grant proposal [application] made by that institution. In addition, a member of the advisory may not be involved in the review, evaluation, or recommendation of a grant proposal [application] if there is any other actual or potential conflict of interest.

(b) A member of the advisory board shall immediately notify the OOG of any actual or potential conflict of interest. The OOG will determine whether the conflict of interest warrants the exclusion of the member's involvement in all or part of the review, evaluation, or recommendation of a grant application. Regardless of the OOG's determination, a member is free to voluntarily recuse from involvement in any grant application.

§190.14Communications between the Advisory Board and Applicants, Distinguished Researchers, and Others

(a) The OOG will manage the communications between the advisory board and the applicant, the distinguished researcher, and the institution. The applicant, the distinguished researcher, or anyone on the applicant's or distinguished researcher's behalf may not, at any time, initiate contact with any member of the advisory board about a possible application or a submitted application or any other matter related to an application to the GURI program.

(b) If an advisory board member contacts the applicant, the distinguished researcher, or anyone acting on behalf of the applicant or distinguished researcher about an application to the GURI program, the person contacted, the advisory board member initiating the contact, or any other person involved in the consideration of a grant application shall notify the OOG immediately of the contact. [The OOG will manage the communications between the advisory board and the applicant, the distinguished researcher and the institution. Should any contact be made by a member of the advisory board to the applicant, the distinguished researcher or anyone on their behalf, that contact shall be immediately called to the attention of the OOG by the person contacted or by the advisory board member.]

(c) Applications may be disqualified from consideration if communications occur in violation of this subsection.

(d) [(b)] As part of its review or evaluation, the OOG, in its discretion, and on behalf of the advisory board, may require the applicant to make a presentation to the advisory board. Failure to deliver a presentation may result in the application being disapproved.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 25, 2022.

TRD-202201617

Terry Zrubek

Director, EDT Finance

Office of the Governor, Economic Development and Tourism Office

Earliest possible date of adoption: June 5, 2022

For further information, please call: (512) 463-2000


10 TAC §190.12

STATUTORY AUTHORITY

This repeal is proposed under section 62.162 of the Texas Education Code, which authorizes the Texas Economic Development and Tourism Office, in consultation with the Texas Higher Education Coordinating Board, to adopt rules necessary to administer GURI.

CROSS REFERENCE TO STATUTE

Chapter 62 of the Texas Education Code.

§190.12.Deadline for Advisory Board Recommendations.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 25, 2022.

TRD-202201618

Terry Zrubek

Director, EDT Finance

Office of the Governor, Economic Development and Tourism Office

Earliest possible date of adoption: June 5, 2022

For further information, please call: (512) 463-2000


SUBCHAPTER C. APPLICATION, REVIEW AND AWARD PROCESS

10 TAC §§190.20 - 190.25, 190.28

STATUTORY AUTHORITY

The amendments are proposed under section 62.162 of the Texas Education Code, which authorizes the Texas Economic Development and Tourism Office, in consultation with the Texas Higher Education Coordinating Board, to adopt rules necessary to administer GURI.

CROSS REFERENCE TO STATUTE

Chapter 62 of the Texas Education Code.

§190.20.Application Process.

(a) The OOG will [shall] maintain a formal application available electronically at the OOG website.

(b) At any time, the OOG may change the terms of the formal application document. Any applicant may be required to provide supplemental information if the formal application document [in the event an application form] is changed by the OOG.

(c) In the discretion of the OOG, applications may be accepted by a specified deadline or on a rolling-basis. The OOG will post notice of the application schedule of the GURI program at the OOG website.

[(d) The OOG may set a deadline for applications for each state fiscal year. If an application deadline is set, after fully funding approved grant applications received during an application period for a state fiscal year, the office may continue to receive applications for that year and:]

[(1) award the full amount of matching funds from the fund for new applications; or]

[(2) approve previously disapproved applications submitted before the original application deadline for receipt of a reduced amount.]

§190.21.GURI Eligible Applicants.

An applicant interested in applying for an award from the GURI fund must meet all basic qualifying criteria, including, but not limited to, the following:

(1) an applicant must be an eligible institution;

(2) the researcher or group of researchers proposed for recruitment must meet all the eligibility requirements necessary to qualify as a distinguished researcher;

(3) the applicant and researcher or group of researchers meet the requirements of the applicable provisions of Chapter 62 of the Education Code; and

(4) the grant application has the support of the applicant institution's president and of the institution's governing board, the chair of the institution's governing board, or the chancellor of the university system [University System] if the applicant institution is a component of a university system [University System].

§190.22.Ineligible Recruiting Activities.

(a) The eligible applicant cannot receive GURI funds to recruit a distinguished researcher [or other employee] from another eligible institution in Texas.

(b) The eligible applicant cannot recruit a distinguished researcher [or other employee] from a private or independent institution of higher education in Texas, as defined by §61.003(15) of the Education Code[, and which is subject to the jurisdiction of the Texas Higher Education Coordinating Board].

§190.23.Application Form.

(a) At a minimum, the application for GURI funds must include the following information:

(1) the [The] name and credentials of the specific distinguished researcher being recruited;

(2) eligibility [Eligibility] information to establish the application is eligible for consideration;

(3) narrative [Narrative] of the grant proposal, including objectives, and timeline to accomplish grant purpose.

(4) information [Information] relating to funding priority or funding consideration;

(5) proposed [Proposed] grant budget;

(6) details [Details] on the source and amount of the matching funds; and

(7) any [Any] other information the OOG determines is relevant or necessary.

(b) All applications must be supported by the [eligible ] applicant institution. The grant application must be accompanied by signed letters of support from the [eligible] applicant's president and from the applicant's governing board, the chair of the applicant's governing board, or the chancellor of the university system, if the applicant is a component of a university system.

(c) All applications and supporting documentation must be submitted electronically in a manner prescribed by the OOG.

§190.24.Initial Screening; Evaluation and Review Process.

(a) The OOG will only consider completed applications. Applications are [will be considered] complete when the OOG has received all required documentation.

(b) The OOG will initially screen each completed application for eligibility. Applications that are ineligible will not be considered further.

(c) During the initial screening or evaluation and review process, the OOG may request an applicant to provide additional information necessary to process the application.

(d) If any required documentation is not received, the OOG will notify the applicant in writing. The applicant must submit the additional required information within five business days after the date [of] the OOG sends notice to the applicant.

[(c) The OOG will initially screen each completed application for eligibility. Applications that are not eligible will not be considered further and will not be eligible for a grant award.]

(e) [(d)] The OOG will determine an application is ineligible if: [Applications will be deemed ineligible if any of the following occur at any time during the application process:]

(1) the [The] application is submitted by an ineligible applicant;

(2) the [The] application is not filed in the manner and form required by the OOG;

(3) the [The] application does not meet the requirements [as] stated in the grant application;

(4) the [The] application was not complete and, if requested, additional required information was not timely submitted to the OOG; or

(5) any [Any] other reason the OOG determines is relevant.

(f) During the OOG's review and evaluation of an application, the OOG may deny the application at any point. [The OOG shall conduct its review of the application.]

[(g) There are several steps in the evaluation and review process. A decision to deny an application may be made at any point during the evaluation and review process.]

(g) [(h)] Providing false information, knowingly or unknowingly, on a grant application may result in the OOG denying an application or, if a grant has been awarded, terminating the grant agreement [cause an application to be denied or cause the grant agreement, once awarded, to be terminated].

§190.25.Grant Award Recommendations and Decisions.

(a) Grant award recommendations and decisions, including, but not limited to, actions relating to an applicant's eligibility, evaluation, award, and funding amount rest within the discretionary authority of the OOG and all award decisions are final and are not subject to appeal.

(b) Only applications that have first received a recommendation from the advisory board will be considered by the OOG for funding.

[(c) The OOG will give priority to eligible applicant institutions that involve the recruitment of a Nobel Laureate, a member of the National Academy of Sciences, National Academy of Engineering, or the National Academy of Medicine.]

[(d) The OOG shall give priority to applications that:]

[(1) Demonstrate a reasonable probability of enhancing Texas' national and global economic competitiveness;]

[(2) Demonstrate a reasonable probability of creating a nationally or internationally recognized locus of research superiority or a unique locus of research;]

[(3) Are matched with a significant amount of funding from a federal or private source that may be transferred to the applicant institution;]

[(4) Are interdisciplinary and collaborative; or]

[(5) Include a strategic plan for intellectual property development and commercialization of technology.]

[(e) In making its decision, the OOG may also consider the following matters:]

[(1) the likelihood that the researcher being recruited will not accept a position with the applicant without the institution's receipt of a GURI grant;]

[(2) the extent to which the subject matter of the research offers the opportunity for interdisciplinary and collaborative research at the applicant institution and with other eligible institutions; and]

[(3) any commercialization track record of the researcher being recruited.]

[(f) The OOG may award a grant to a proposal that:]

[(1) supports the recruitment of a distinguished researcher distinguished in, or to be engaged in, basic, translational, or applied research; or]

[(2) proposes the recruitment of a distinguished researcher for new research capabilities of the eligible institution or to expand the institution's existing research capabilities.]

(c) [(g)] The OOG will make the [a] final determination on whether a researcher who is proposed for recruitment by an applicant qualifies as a distinguished researcher for purposes of the GURI program.

§190.28.Grant Agreement.

(a) Eligible institutions that are selected for a GURI matching grant must [will be required to] execute a grant agreement as a condition of the grant award.

(b) A grant agreement may be for a specific duration[. The length of the grant agreement is] determined solely by the OOG.

(c) The grant agreement does not [otherwise] create an entitlement or right by the applicant to grant funds. Receipt of grant funds depends, among other things, upon strict compliance with all terms, conditions, and provisions of the grant agreement.

[(d) The grant agreement shall contain the following provisions:]

[(1) Conflict of interest, disclosure requirements and ethics provisions;]

[(2) Compliance with the Texas Public Information Act;]

[(3) Grantee's duty to maintain records, audit standards, audit trails, right to access records, audit rights, corrective actions;]

[(4) Audit rights of the OOG and the State Auditor's Office;]

[(5) Alternative dispute provisions of Chapter 2260 and/or Chapter 2009 of the Government Code;]

[(6) Reasons for the State to terminate the grant agreement that may include, but are not limited to, provisions allowing the State to terminate for convenience, for cause, due to funding limitations, and failure to repay previously dispersed grant payments or failure to pay liquidated damages;]

[(7) Sovereign immunity, indemnity and hold harmless provisions in favor of the OOG;]

[(8) Standard certifications and warranties, including but not limited to provisions relating to delinquent child support obligations, debts owed to the state, ethics provisions, compliance with licensing, permitting and regulatory bodies, debarment, suspension or ineligibility, and false statements; and]

[(9) Any other provisions the OOG determines protect the interests of the OOG.]

[(e) The OOG may add special conditions to the grant agreement. Failure by a grantee to comply with any special conditions may affect the grantee's ability to receive any grant funds.]

(d) [(f)] The execution of a grant agreement to the grantee shall not commit or obligate the OOG in any way to make any additional, supplemental, continuation, or other awards to the grantee.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 25, 2022.

TRD-202201619

Terry Zrubek

Director, EDT Finance

Office of the Governor, Economic Development and Tourism Office

Earliest possible date of adoption: June 5, 2022

For further information, please call: (512) 463-2000


10 TAC §190.29

STATUTORY AUTHORITY

This repeal is proposed under section 62.162 of the Texas Education Code, which authorizes the Texas Economic Development and Tourism Office, in consultation with the Texas Higher Education Coordinating Board, to adopt rules necessary to administer GURI.

CROSS REFERENCE TO STATUTE

Chapter 62 of the Texas Education Code.

§190.29.Confidentiality of Information.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 25, 2022.

TRD-202201623

Terry Zrubek

Director, EDT Finance

Office of the Governor, Economic Development and Tourism Office

Earliest possible date of adoption: June 5, 2022

For further information, please call: (512) 463-2000


SUBCHAPTER D. GRANT BUDGET REQUIREMENTS

10 TAC §§190.32, 190.36, 190.38

STATUTORY AUTHORITY

The amendments are proposed under section 62.162 of the Texas Education Code, which authorizes the Texas Economic Development and Tourism Office, in consultation with the Texas Higher Education Coordinating Board, to adopt rules necessary to administer GURI.

CROSS REFERENCE TO STATUTE

Chapter 62 of the Texas Education Code.

§190.32.Professional and Consultant.

(a) "Professional and consultant services" is defined as any service for which the grantee uses an outside source for necessary support. Professional and consultant services include, but are not limited to, accounting services, legal services, and computer support.

(b) Any contract or agreement entered into by the grantee that obligates grant funds must be in writing and consistent with applicable Texas contract law, including, but not limited to, Chapter 2254 of the [,] Texas Government Code. The grantee must maintain adequate documentation supporting budget items for a contractor's time, services, and rates of compensation. The grantee must establish a contract administration and monitoring system to regularly and consistently ensure that contract deliverables are provided as specified in the contract.

§190.36.Construction.

(a) "Construction costs" [Construction costs] is defined as "Construction of new buildings or renovation of existing buildings (including the installation of fixed equipment, but excluding the cost of land acquisition and off-site improvements)." New construction, or activities that would change the "footprint" of an existing facility (e.g., relocation of existing exterior walls, roofs, or floors, attachment of fire escapes) is considered an allowable construction cost.

(b) The construction of shell space is not allowable as a construction activity since shell space does not provide usable space for research activities.

§190.38.Unallowable Costs.

(a) Grant funds may not be used for the following:

(1) Salary and fringe benefits;

(A) The grantee may not use grant funds to pay any portion of the salary for a distinguished researcher or other personnel, other than a one-time salary supplement as described in §190.31 of these rules.[;]

(B) "Fringe benefits" is defined as allowances and services provided by the grantee to its employees as compensation in addition to regular salaries and wages. Fringe benefits include, but are not limited to, the costs of leave, employee insurance, pensions, and unemployment benefit plans.

(C) The grantee may not use grant funds to pay any portion of the salary, fringe benefits, or any other compensation for an elected government official.

(2) Costs to recruit an ineligible [distinguished] researcher;

(3) Costs related to [relating] entertainment, amusements, or social activities, including, but not limited to, shows, exhibitions, or sporting events;

(4) Professional dues, memberships, or lobbying;

(5) Honoraria or [Honorary] gifts;

(6) Purchase or lease of vehicles;

(7) Promotional items or recreational activities;

(8) Travel that is unrelated to the direct support of the grant project;

(9) Consultants or vendors who participate directly in writing a grant application; [or]

(10) Professional association fees, dues or memberships; and

(11) Unallowable costs set forth in state or federal cost principles, the grant application, or the grant agreement.

(b) Grant funds may not be used to purchase any other products or services the OOG identifies as inappropriate or unallowable within the grant application, or during the [it] grant management processes and procedures.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 25, 2022.

TRD-202201620

Terry Zrubek

Director, EDT Finance

Office of the Governor, Economic Development and Tourism Office

Earliest possible date of adoption: June 5, 2022

For further information, please call: (512) 463-2000


SUBCHAPTER E. ADMINISTERING GRANTS

10 TAC §§190.40 - 190.53

STATUTORY AUTHORITY

The repeals are proposed under section 62.162 of the Texas Education Code, which authorizes the Texas Economic Development and Tourism Office, in consultation with the Texas Higher Education Coordinating Board, to adopt rules necessary to administer GURI.

CROSS REFERENCE TO STATUTE

Chapter 62 of the Texas Education Code.

§190.40.Grant Forms.

§190.41.Point of Contact.

§190.42.Financial Reporting.

§190.43.Performance Reporting.

§190.44.Inventory Reporting.

§190.45.Cooperation; Reports; Additional Information.

§190.46.Maintaining and Retaining Documentation.

§190.47.Security and Confidentiality of Records.

§190.48.Grant Payments.

§190.49.Sanctions.

§190.50.Informal Meetings and Dispute Resolution.

§190.51.Chapter 2260 of the Texas Government Code.

§190.52.Grantee's Continued Performance.

§190.53.Violations of Laws.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 25, 2022.

TRD-202201625

Terry Zrubek

Director, EDT Finance

Office of the Governor, Economic Development and Tourism Office

Earliest possible date of adoption: June 5, 2022

For further information, please call: (512) 463-2000


SUBCHAPTER F. PROGRAM ADMINISTRATION AND AUDIT

10 TAC §§190.55 - 190.58

STATUTORY AUTHORITY

The repeals are proposed under section 62.162 of the Texas Education Code, which authorizes the Texas Economic Development and Tourism Office, in consultation with the Texas Higher Education Coordinating Board, to adopt rules necessary to administer GURI.

CROSS REFERENCE TO STATUTE

Chapter 62 of the Texas Education Code.

§190.55.Monitoring.

§190.56.Compliance Review or Audit.

§190.57.Review or Audit Report.

§190.58.State Auditor.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 25, 2022.

TRD-202201627

Terry Zrubek

Director, EDT Finance

Office of the Governor, Economic Development and Tourism Office

Earliest possible date of adoption: June 5, 2022

For further information, please call: (512) 463-2000