Relating to the applicability of uniform grant and contract management standards to certain Texas Water Development Board programs.

Contracts

• Template Revision: For prime contracts and subcontracts funded under the affected subchapters (specifically the new Subchapter R and modified Subchapter C), you must strike references to "Texas Government Code Chapter 783" or "UGCMS" in the Governing Law or Compliance sections.
• Negotiation Strategy: If you are negotiating a funding agreement scheduled for execution in late August 2025, delay execution until September 1, 2025, to benefit from the exemption, provided funding availability is not jeopardized.

Hiring/Training

• Grant Administration: Retrain grant administrators and compliance officers to stop applying the "Yellow Book" (UGCMS) standards automatically to TWDB water infrastructure projects. They must now look to the specific program rules for audit and reporting thresholds.

Reporting & Record-Keeping

• Audit Thresholds: Do not assume the standard state single audit threshold applies. You must verify the specific audit requirements defined in the individual TWDB financial assistance agreement.
• Documentation: Shift from standardized state compliance forms to TWDB-specific program forms.

Fees & Costs

• No Direct Fee Changes: The bill does not introduce new fees.
• Administrative Savings: Potential reduction in administrative costs due to the removal of uniform state reporting burdens, though this depends on the complexity of the replacement contract terms.