Relating to the administration, powers, and duties of the Texas Space Commission and Texas Aerospace Research and Space Economy Consortium, to other governmental entities regarding aerospace, aviation, and space exploration initiatives and activities, and to the abolishment of the spaceport trust fund.

Contracts

• Spaceport Trust Fund Agreements: Existing contracts remain valid but are legally transferred to a trust held by the Comptroller. You must review "Notice" provisions and acknowledge the Comptroller as the new administrator; stop invoicing the Economic Development & Tourism Office.
• New Grant Agreements: Public entities (universities/local governments) must now execute formal Intergovernmental Agreements (IGAs) with the Commission; MOUs are no longer sufficient.
• Commercial Launch Service Level Agreements (SLAs): Update standard commercial contracts to accommodate the State of Texas as a direct customer. Include specific clauses regarding the Commission’s authority to procure insurance (Sec. 482.107(c)(6)) to mitigate liability for state-owned payloads.

Hiring/Training

• Finance & Grant Administrators: Staff must be retrained to calculate project budgets with a hard 5% cap on indirect costs (overhead). Federally negotiated rates (e.g., 25-50%) are inadmissible for the new Space Exploration and Aeronautics Research Fund (SEARF).
• Government Relations: Teams must pivot focus from standard procurement officers to the TSC Board of Directors. Sales cycles for spaceflight capacity now require securing a majority vote in an open Board meeting rather than a standard RFP process.

Reporting & Record-Keeping

• Fund Segregation: You must configure ERP/accounting software to segregate "indirect costs" to ensure they do not exceed 5% of the total grant.
• Matching Funds Audit Trail: The law requires specific reporting on matching funds. You must maintain a distinct audit trail proving matching funds are dedicated solely to the grant project and not commingled with general operating funds.
• Confidentiality Protocols: While grant applications are confidential, the *vote* is public. Mark all trade secrets in applications clearly, but prepare for the existence of the application to be public record.

Fees & Costs

• Reimbursement Reduction: The 5% indirect cost cap represents a significant reduction in recoverable overhead for research institutions and private R&D firms accustomed to federal rates.
• Cash Flow Planning: Expect delays in initial disbursements until the Commission adopts the statutorily required "advance payment" policy.