Relating to the authority and responsibilities of the Texas Historical Commission; authorizing fees.

Contracts

• Government Vendors: Prepare for Direct Negotiation. Under Section 442.0046, if a competitive bid fails or is retracted, the THC Executive Director may now negotiate directly with a "qualified vendor." You must maintain "off-the-shelf" pricing and qualification packets ready for immediate submission outside standard portals.
• Joint Ventures: The law authorizes Contract Bundling. Niche vendors (e.g., HVAC only, masonry only) should form teaming agreements immediately, as THC is likely to issue single master contracts for multi-trade restoration projects to streamline procurement.
• Nonprofit MOUs: The *Friends of the THC* and *Washington-on-the-Brazos Historical Foundation* must execute Memoranda of Understanding with the THC explicitly prohibiting agency employees from soliciting funds, to comply with new governance standards.

Hiring/Training

• Exhibit Designers: Design teams must be retrained to verify "Commission-Approved Storylines" (Section 442.114) before commencing work. Deliverables that deviate from the THC's official historical narrative are now subject to statutory rejection, not just artistic disagreement.
• Nonprofit Boards: Board members of affiliated nonprofits must undergo training on Chapter 2256 (Public Funds Investment Act). You are now managing state assets and are subject to the same investment restrictions as government officials.

Reporting & Record-Keeping

• Nonprofit Audits: Affiliated nonprofits must engage an independent auditor immediately. The audit must be filed annually with the Commission.
• Asset Segregation: Nonprofits must implement fund accounting software capabilities to strictly segregate State Assets (markers, site revenues) from Private Assets. The State Auditor is now authorized to inspect these specific books.
• Trust Fund Invoicing: Vendors paid via the *Historic Infrastructure Sustainability Trust Fund* must itemize invoices to clearly separate "Project Costs" from "Administrative Overhead." The THC cannot legally pay admin costs from this fund.

Fees & Costs

• Payee Updates: Event planners and concessionaires operating at state sites must update Accounts Payable records. Fees for facility use and retail sales will likely be payable to the nonprofit entity (e.g., Friends of THC), not the State of Texas directly.
• Audit Costs: Affiliated nonprofits must budget for the mandatory annual independent audit, which is a new operational expense.