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               AN ACT
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            relating to the administration, powers, and duties of the Texas  | 
         
         
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            Space Commission and Texas Aerospace Research and Space Economy  | 
         
         
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            Consortium, to other governmental entities regarding aerospace,  | 
         
         
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            aviation, and space exploration initiatives and activities, and to  | 
         
         
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            the abolishment of the spaceport trust fund. | 
         
         
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                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
         
         
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                   SECTION 1.  Sections 481.0066(d), (e), and (e-1), Government  | 
         
         
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            Code, are amended to read as follows: | 
         
         
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                   (d)  The aerospace and aviation office shall: | 
         
         
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                         (1)  analyze aerospace-related [space-related] and  | 
         
         
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            aviation-related research currently conducted in this state and may  | 
         
         
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            conduct activities designed to further that research; | 
         
         
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                         (2)  analyze the state's economic position in the  | 
         
         
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            aerospace and aviation industries; | 
         
         
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                         (3)  develop short-term and long-term business  | 
         
         
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            strategies as part of an industry-specific strategic plan to  | 
         
         
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            promote the retention, development, and expansion of aerospace and  | 
         
         
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            aviation industry facilities in the state that is consistent with  | 
         
         
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            and complementary of the office strategic plan; | 
         
         
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                         (4)  as part of and to further the purposes of the  | 
         
         
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            industry-specific strategic plan described by Subdivision (3),  | 
         
         
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            develop short-term and long-term policy initiatives or recommend  | 
         
         
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            reforms the state may undertake or implement to: | 
         
         
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                               (A)  increase investment in aerospace and  | 
         
         
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            aviation activities; | 
         
         
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                               (B)  [support the retention, development, and  | 
         
         
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            expansion of spaceports in this state; | 
         
         
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                               [(C)]  identify and encourage educational,  | 
         
         
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            economic, and defense-related opportunities for aerospace and  | 
         
         
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            aviation activities; | 
         
         
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                               (C)  [(D) determine the appropriate level of  | 
         
         
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            funding for the spaceport trust fund created under Section 481.0069  | 
         
         
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            and] support ongoing projects that have been assisted by the former  | 
         
         
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            spaceport trust fund[, including recommending to the legislature an  | 
         
         
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            appropriate funding level for the fund]; and | 
         
         
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                               (D) [(E)]  partner with the Texas Higher  | 
         
         
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            Education Coordinating Board to foster technological advancement  | 
         
         
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            and economic development for aerospace [spaceport] activities by  | 
         
         
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            strengthening higher education programs and supporting aerospace  | 
         
         
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            activities; [and | 
         
         
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                               [(F)  partner with the Texas Workforce Commission  | 
         
         
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            to support initiatives that address the high technology skills and  | 
         
         
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            staff resources needed to better promote the state's efforts in  | 
         
         
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            becoming the leading space exploration state in the nation;] | 
         
         
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                         (5)  act as a liaison with other state and federal  | 
         
         
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            entities with related economic, educational, and defense  | 
         
         
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            responsibilities to support the marketing of the state's aerospace  | 
         
         
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            and aviation capabilities; and | 
         
         
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                         (6)  provide technical support and expertise to the  | 
         
         
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            state and to local [spaceport] authorities regarding aerospace and  | 
         
         
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            aviation business matters[; and | 
         
         
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                         [(7)  be responsible for the promotion and development  | 
         
         
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            of spaceports in this state]. | 
         
         
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                   (e)  The governor shall appoint an aerospace and aviation  | 
         
         
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            advisory committee consisting of[: | 
         
         
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                         [(1)]  seven qualified members to assist in the state's  | 
         
         
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            economic development efforts to recruit and retain aerospace and  | 
         
         
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            aviation jobs and investment[; and | 
         
         
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                         [(2)  one member for each active spaceport development  | 
         
         
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            corporation in the state who represents the interests of each  | 
         
         
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            respective spaceport development corporation]. | 
         
         
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                   (e-1)  The aerospace and aviation advisory committee shall: | 
         
         
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                         (1)  advise the governor on the recruitment and  | 
         
         
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            retention of aerospace and aviation jobs and investment; | 
         
         
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                         (2)  assist the office and the aerospace and aviation  | 
         
         
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            office in meeting the state's economic development efforts to  | 
         
         
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            recruit and retain aerospace and aviation jobs and investment; | 
         
         
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                         (3)  [advise the office, the aerospace and aviation  | 
         
         
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            office, and the governor on an appropriate funding level for the  | 
         
         
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            spaceport trust fund; | 
         
         
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                         [(4)]  advise the office, the aerospace and aviation  | 
         
         
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            office, and the governor on recruitment, retention, and expansion  | 
         
         
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            of aerospace and aviation industry activities; and | 
         
         
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                         (4) [(5)]  collect and disseminate information on  | 
         
         
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            federal, state, local, and private community economic development  | 
         
         
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            programs that assist or provide loans, grants, or other funding to  | 
         
         
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            aerospace and aviation industry activities. | 
         
         
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                   SECTION 2.  Section 482.001, Government Code, is amended by  | 
         
         
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            adding Subdivision (2-a) to read as follows: | 
         
         
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                         (2-a)  "Consortium" means the Texas Aerospace Research  | 
         
         
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            and Space Economy Consortium established under Subchapter G. | 
         
         
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                   SECTION 3.  Sections 482.101(a) and (b), Government Code,  | 
         
         
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            are amended to read as follows: | 
         
         
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                   (a)  The Texas Space Commission is established to strengthen  | 
         
         
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            this state's proven leadership in civil, commercial, and military  | 
         
         
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            outer space [aerospace] activity. | 
         
         
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                   (b)  The purpose of the commission is to promote: | 
         
         
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                         (1)  innovation in the fields of space exploration and  | 
         
         
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            commercial space; | 
         
         
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                         (2)  commercial space [aerospace] opportunities; and | 
         
         
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                         (3)  [, including] the integration of the space and [,]  | 
         
         
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            aeronautics[, and aviation] industries into the economy of this  | 
         
         
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            state. | 
         
         
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                   SECTION 4.  Section 482.103, Government Code, is amended to  | 
         
         
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            read as follows: | 
         
         
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                   Sec. 482.103.  SUNSET PROVISION.  The commission is subject  | 
         
         
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            to Chapter 325 (Texas Sunset Act). Unless continued in existence as  | 
         
         
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            provided by that chapter, the commission is abolished and this  | 
         
         
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            chapter expires September 1, 2033 [2032]. | 
         
         
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                   SECTION 5.  Section 482.105, Government Code, is amended by  | 
         
         
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            amending Subsections (a), (b), (c), (e), and (f) and adding  | 
         
         
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            Subsection (a-1) to read as follows: | 
         
         
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                   (a)  The commission is governed by a [nine-member] board of  | 
         
         
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            directors [.  The board is] composed of the following nine voting  | 
         
         
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            members: | 
         
         
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                         (1)  three members appointed by the governor; | 
         
         
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                         (2)  three members appointed by the lieutenant  | 
         
         
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            governor; and | 
         
         
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                         (3)  three members appointed by the speaker of the  | 
         
         
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            house of representatives. | 
         
         
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                   (a-1)  The executive director of the Texas Economic  | 
         
         
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            Development and Tourism Office serves as an ex officio nonvoting  | 
         
         
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            member of the board. | 
         
         
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                   (b)  In making appointments under Subsection (a), the  | 
         
         
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            governor, lieutenant governor, and speaker of the house of  | 
         
         
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            representatives shall prioritize appointing individuals with  | 
         
         
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            experience in: | 
         
         
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                         (1)  the nongovernmental commercial space industry | 
         
         
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            [aerospace]; | 
         
         
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                         (2)  governmental space operations [civil aviation]; | 
         
         
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                         (3)  military space operations [aerospace]; | 
         
         
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                         (4)  space-related [space] economic development; | 
         
         
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                         (5)  space-related academic research; and | 
         
         
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                         (6)  nonprofit support of the space economy. | 
         
         
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                   (c)  Voting members [Members] of the board appointed by the  | 
         
         
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            governor, lieutenant governor, and speaker of the house serve [at  | 
         
         
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            the pleasure of the appointing office] for staggered six-year  | 
         
         
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            terms, with the terms of three [two] members expiring on January 31  | 
         
         
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            of each odd-numbered year. | 
         
         
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                   (e)  Not later than the 30th day after the date a voting board  | 
         
         
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            member's term expires, the appropriate appointing authority shall  | 
         
         
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            appoint a replacement. | 
         
         
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                   (f)  The board shall elect a presiding officer from among the  | 
         
         
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            voting members of the board. | 
         
         
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                   SECTION 6.  Section 482.107, Government Code, is amended to  | 
         
         
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            read as follows: | 
         
         
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                   Sec. 482.107.  BOARD OF DIRECTORS: AUTHORITY. (a)  The board  | 
         
         
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            shall: | 
         
         
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                         (1)  direct the activities of, establish goals for, and  | 
         
         
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            provide oversight to the commission; | 
         
         
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                         (2)  develop and execute a strategic plan in accordance  | 
         
         
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            with Section 482.201; | 
         
         
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                         (3)  establish the appropriate standards and executive  | 
         
         
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            bodies to ensure the proper use of funds authorized under this  | 
         
         
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            chapter for research and facilities development; | 
         
         
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                         (4)  identify research and funding opportunities for  | 
         
         
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            entities within this state that: | 
         
         
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                               (A)  strengthen and enhance this state's proven  | 
         
         
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            leadership position in civil, commercial, and military aeronautics  | 
         
         
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            research and development and space flight infrastructure; | 
         
         
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                               (B)  enhance the integration of the space and [,]  | 
         
         
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            aeronautics[, astronautics, and aviation] industries into this  | 
         
         
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            state's economy; and | 
         
         
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                               (C)  promote and further research involving  | 
         
         
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            materials derived from or developed through space exploration and  | 
         
         
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            space flight; | 
         
         
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                         (5)  capitalize, promote, and assist in the development  | 
         
         
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            of workforce training to further the development of emerging  | 
         
         
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            technologies required for all aspects of space exploration; [and] | 
         
         
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                         (6)  solicit recommendations from the consortium for  | 
         
         
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            projects [proposals on funding] and [research] opportunities  | 
         
         
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            related to the objectives in this chapter that may be funded with  | 
         
         
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            money from the fund; | 
         
         
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                         (7)  market and promote the state as the premier  | 
         
         
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            location for space-related industries and promote commission  | 
         
         
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            activities; | 
         
         
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                         (8)  as necessary to promote space-related industries  | 
         
         
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            and further commission activities, including implementing the  | 
         
         
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            strategic plan developed under Section 482.201, and  | 
         
         
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            notwithstanding any other law, issue an order, subject to the  | 
         
         
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            approval of the municipality's governing body, to temporarily close  | 
         
         
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            in a municipality a highway as defined by Section 221.001,  | 
         
         
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            Transportation Code, a venue as defined by Section 334.001, Local  | 
         
         
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            Government Code, or an area specified by Section 33.203(11),  | 
         
         
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            Natural Resources Code; | 
         
         
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                         (9)  develop a database that provides information on  | 
         
         
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            the promotion of space-related and aeronautics-related economic  | 
         
         
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            development in this state; and | 
         
         
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                         (10)  establish procedures for the commission as  | 
         
         
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            necessary to provide administrative and staff support to the  | 
         
         
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            consortium [from the Texas Aerospace Research and Space Economy  | 
         
         
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            Consortium established under Subchapter G]. | 
         
         
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                   (b)  The board shall employ a chief compliance officer to  | 
         
         
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            monitor and report to the board regarding compliance with this  | 
         
         
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            chapter and rules adopted under this chapter. The chief compliance  | 
         
         
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            officer shall ensure that all grant proposals comply with this  | 
         
         
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            chapter and rules adopted under this chapter [before the proposals  | 
         
         
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            are submitted to the board for approval]. | 
         
         
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                   (b-1)  The board shall employ a general counsel to advise the  | 
         
         
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            commission and the consortium and perform other duties assigned by  | 
         
         
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            the board. | 
         
         
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                   (c)  The board may: | 
         
         
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                         (1)  establish ad hoc advisory committees as necessary  | 
         
         
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            to carry out the board's duties under this chapter; | 
         
         
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                         (2)  adopt and use an official seal; | 
         
         
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                         (3)  solicit and accept gifts, [or] grants, or  | 
         
         
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            donations, including donations of goods or services provided in  | 
         
         
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            accordance with commission specifications at no cost to the  | 
         
         
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            commission; | 
         
         
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                         (4)  [and] contract with any entity; | 
         
         
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                         (5) [(4)]  acquire and convey property or an interest  | 
         
         
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            in property; | 
         
         
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                         (6) [(5)]  procure insurance and pay premiums on  | 
         
         
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            insurance of any type, in accounts, and from insurers as the board  | 
         
         
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            considers necessary and advisable to accomplish any of the  | 
         
         
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            commission's purposes; | 
         
         
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                         (7) [(6)]  make grants to public or private persons  | 
         
         
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            with an established presence within this state to encourage  | 
         
         
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            economic development related to space and aerospace; | 
         
         
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                         (8) [(7)]  make grants to enhance the capacity of  | 
         
         
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            institutions of higher education to participate in and support  | 
         
         
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            classified research; | 
         
         
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                         (9) [(8)]  provide matching funding to external  | 
         
         
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            funding provided by relevant federal agencies, private industry, or  | 
         
         
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            private research organizations; [and] | 
         
         
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                         (10) [(9)]  engage in the planning and implementation  | 
         
         
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            of  space exploration and spaceflight-related [aerospace-related]  | 
         
         
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            educational opportunities within this state in coordination with  | 
         
         
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            the consortium; and | 
         
         
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                         (11)  subject to the governor's approval, enter into an  | 
         
         
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            intergovernmental agreement with another state or the United  | 
         
         
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            States, including the United States Department of Defense and the  | 
         
         
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            National Aeronautics and Space Administration, as necessary to  | 
         
         
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            carry out the purposes of this chapter [Texas Aerospace Research  | 
         
         
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            and Space Economy Consortium established under Subchapter G]. | 
         
         
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                   SECTION 7.  Subchapter B, Chapter 482, Government Code, is  | 
         
         
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            amended by adding Sections 482.108 and 482.109 to read as follows: | 
         
         
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                   Sec. 482.108.  PROCUREMENT OF CERTAIN SPACE-RELATED  | 
         
         
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            VEHICLES AND EQUIPMENT.  (a)  Notwithstanding Section 2155.083 or  | 
         
         
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            any other law and subject to Subsection (b), the board may authorize  | 
         
         
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            the commission to procure, lease, or otherwise secure access to  | 
         
         
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            capacity on or through a spacefaring vehicle, platform, or  | 
         
         
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            infrastructure, including a rocket, shuttle, spaceplane,  | 
         
         
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            satellite, space station, lunar or planetary base, and other  | 
         
         
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            orbital, suborbital, or extraterrestrial transport or habitation  | 
         
         
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            system, regardless of whether the vehicle, platform, or  | 
         
         
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            infrastructure is owned or operated by a governmental, commercial,  | 
         
         
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            or private entity. | 
         
         
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                   (b)  Before the commission takes a proposed action under  | 
         
         
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            Subsection (a), the board must: | 
         
         
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                         (1)  determine the proposed action: | 
         
         
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                               (A)  promotes or serves a legitimate and clearly  | 
         
         
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            defined public purpose; | 
         
         
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                               (B)  provides demonstrable value, taking into  | 
         
         
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            consideration: | 
         
         
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                                     (i)  the feasibility and cost-effectiveness  | 
         
         
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            of the proposed action; | 
         
         
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                                     (ii)  alternative approaches to attaining  | 
         
         
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            the same or a similar public purpose as the proposed action; and | 
         
         
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                                     (iii)  potential benefits of the proposed  | 
         
         
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            action; and | 
         
         
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                               (C)  is subject to appropriate controls and  | 
         
         
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            contractual requirements sufficient to protect the interests of the  | 
         
         
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            state; | 
         
         
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                         (2)  discuss the determinations the board must find  | 
         
         
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            under Subdivision (1) in an open meeting held in accordance with  | 
         
         
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            Chapter 551; and | 
         
         
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                         (3)  by a majority vote of the voting board members  | 
         
         
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            present and voting, authorize the action in an open meeting held in  | 
         
         
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            accordance with Chapter 551. | 
         
         
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                   Sec. 482.109.  CERTAIN GRANT APPLICATIONS AND DEFENSE,  | 
         
         
            | 
                
			 | 
            MILITARY, AND AEROSPACE ISSUES: CLOSED MEETING.  (a)  The board may  | 
         
         
            | 
                
			 | 
            conduct a closed meeting in accordance with Subchapter E, Chapter  | 
         
         
            | 
                
			 | 
            551, to deliberate or confer with one or more employees,  | 
         
         
            | 
                
			 | 
            consultants of the commission, or legal counsel of the commission  | 
         
         
            | 
                
			 | 
            to discuss: | 
         
         
            | 
                
			 | 
                         (1)  a grant application being considered by the board  | 
         
         
            | 
                
			 | 
            if, before conducting the closed meeting, a majority of the voting  | 
         
         
            | 
                
			 | 
            members of the board in an open meeting vote that deliberating or  | 
         
         
            | 
                
			 | 
            conferring in an open meeting would: | 
         
         
            | 
                
			 | 
                               (A)  reveal the grant applicant's confidential  | 
         
         
            | 
                
			 | 
            information; | 
         
         
            | 
                
			 | 
                               (B)  reveal national security information; or | 
         
         
            | 
                
			 | 
                               (C)  have a detrimental effect on the position of  | 
         
         
            | 
                
			 | 
            the commission in negotiations with a grant applicant; or | 
         
         
            | 
                
			 | 
                         (2)  a matter related to: | 
         
         
            | 
                
			 | 
                               (A)  the establishment of an office, base, or  | 
         
         
            | 
                
			 | 
            major facility in this state by the United States Department of  | 
         
         
            | 
                
			 | 
            Defense or the National Aeronautics and Space Administration; or | 
         
         
            | 
                
			 | 
                               (B)  an economic incentive a governmental body may  | 
         
         
            | 
                
			 | 
            offer to a private entity or nonprofit organization to meet a match  | 
         
         
            | 
                
			 | 
            requirement or other requirement established by the United States  | 
         
         
            | 
                
			 | 
            Department of Defense or the National Aeronautics and Space  | 
         
         
            | 
                
			 | 
            Administration in relation to grants or strategic endeavors. | 
         
         
            | 
                
			 | 
                   (b)  Notwithstanding any other law, the commission may  | 
         
         
            | 
                
			 | 
            disclose a matter discussed under Subsection (a)(2) with any state  | 
         
         
            | 
                
			 | 
            agency if the presiding officer of the board determines it  | 
         
         
            | 
                
			 | 
            necessary to accomplish the establishment of an office, base, or  | 
         
         
            | 
                
			 | 
            major facility in this state by the United States Department of  | 
         
         
            | 
                
			 | 
            Defense or the National Aeronautics and Space Administration. | 
         
         
            | 
                
			 | 
                   (c)  Any vote or final action taken on a matter described by  | 
         
         
            | 
                
			 | 
            Subsection (a)(1) or (2) must be conducted in an open meeting. | 
         
         
            | 
                
			 | 
                   SECTION 8.  Sections 482.201(a) and (d), Government Code,  | 
         
         
            | 
                
			 | 
            are amended to read as follows: | 
         
         
            | 
                
			 | 
                   (a)  The commission shall develop and biennially [annually]  | 
         
         
            | 
                
			 | 
            update a strategic plan for the promotion of space and [,]  | 
         
         
            | 
                
			 | 
            aeronautics[, and aviation] economic development in this state. | 
         
         
            | 
                
			 | 
                   (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 even-numbered  | 
         
         
            | 
                
			 | 
            year. | 
         
         
            | 
                
			 | 
                   SECTION 9.  Section 482.301(a), Government Code, is amended  | 
         
         
            | 
                
			 | 
            to read as follows: | 
         
         
            | 
                
			 | 
                   (a)  The space exploration and aeronautics research fund is  | 
         
         
            | 
                
			 | 
            established to provide grants to eligible entities and for other  | 
         
         
            | 
                
			 | 
            purposes as provided by this chapter. | 
         
         
            | 
                
			 | 
                   SECTION 10.  The heading to Section 482.302, Government  | 
         
         
            | 
                
			 | 
            Code, is amended to read as follows: | 
         
         
            | 
                
			 | 
                   Sec. 482.302.  USE OF [SPACE EXPLORATION AND AERONAUTICS  | 
         
         
            | 
                
			 | 
            RESEARCH] FUND FOR [;] GRANTS. | 
         
         
            | 
                
			 | 
                   SECTION 11.  Section 482.302, Government Code, is amended by  | 
         
         
            | 
                
			 | 
            amending Subsections (a) and (b) and adding Subsections (b-1), (e),  | 
         
         
            | 
                
			 | 
            (e-1), (f), (g), and (h) to read as follows: | 
         
         
            | 
                
			 | 
                   (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, including aeronautics; | 
         
         
            | 
                
			 | 
                         (2)  research involving any aspect of space exploration  | 
         
         
            | 
                
			 | 
            and space flight, including aeronautics; | 
         
         
            | 
                
			 | 
                         (3)  workforce training to promote space exploration  | 
         
         
            | 
                
			 | 
            and space flight, including aeronautics; | 
         
         
            | 
                
			 | 
                         (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 and space [,] research industry[,] or the | 
         
         
            | 
                
			 | 
            aeronautics industry; [and] | 
         
         
            | 
                
			 | 
                         (2)  a governmental entity involved in the space  | 
         
         
            | 
                
			 | 
            exploration and space research industry or the aeronautics  | 
         
         
            | 
                
			 | 
            industry; and | 
         
         
            | 
                
			 | 
                         (3)  the consortium [with which the commission has  | 
         
         
            | 
                
			 | 
            entered into an intergovernmental agreement for that purpose]. | 
         
         
            | 
                
			 | 
                   (b-1)  If the board approves a grant for a governmental  | 
         
         
            | 
                
			 | 
            entity described by Subsection (b)(2), the governmental entity  | 
         
         
            | 
                
			 | 
            shall enter into an intergovernmental agreement with the commission  | 
         
         
            | 
                
			 | 
            with respect to the project or activity for which the grant was  | 
         
         
            | 
                
			 | 
            awarded. | 
         
         
            | 
                
			 | 
                   (e)  The commission shall establish sufficient controls to  | 
         
         
            | 
                
			 | 
            ensure that a grant awarded under this subchapter promotes the  | 
         
         
            | 
                
			 | 
            purposes listed in Subsection (a). | 
         
         
            | 
                
			 | 
                   (e-1)  Using money available in the fund, and subject to the  | 
         
         
            | 
                
			 | 
            approval of the governor, the commission may provide grants to, or  | 
         
         
            | 
                
			 | 
            fund the costs and expenses incurred under agreements between the  | 
         
         
            | 
                
			 | 
            commission and, another state, the United States, or entities  | 
         
         
            | 
                
			 | 
            described by Subsection (b) for the purposes of: | 
         
         
            | 
                
			 | 
                         (1)  establishing a space-related office, base, or  | 
         
         
            | 
                
			 | 
            major facility in this state by the United States Department of  | 
         
         
            | 
                
			 | 
            Defense or the National Aeronautics and Space Administration; and | 
         
         
            | 
                
			 | 
                         (2)  relocating or acquiring decommissioned assets  | 
         
         
            | 
                
			 | 
            related to the space industry to this state. | 
         
         
            | 
                
			 | 
                   (f)  The commission shall adopt a policy on advance payments  | 
         
         
            | 
                
			 | 
            to grant recipients. | 
         
         
            | 
                
			 | 
                   (g)  Except as otherwise provided by this section, money  | 
         
         
            | 
                
			 | 
            awarded under this subchapter may be used for authorized expenses,  | 
         
         
            | 
                
			 | 
            including honoraria, salaries and benefits, travel, conference  | 
         
         
            | 
                
			 | 
            fees and expenses, consumable supplies, other operating expenses,  | 
         
         
            | 
                
			 | 
            contracted research and development, capital equipment, and   | 
         
         
            | 
                
			 | 
            construction or renovation of state or private facilities. | 
         
         
            | 
                
			 | 
                   (h)  An entity receiving money under this subchapter for  | 
         
         
            | 
                
			 | 
            space exploration or aeronautics research may not spend more than  | 
         
         
            | 
                
			 | 
            five percent of the money for indirect costs. For purposes of this  | 
         
         
            | 
                
			 | 
            subsection, "indirect costs" means the expenses of doing business  | 
         
         
            | 
                
			 | 
            that are not readily identified with a particular grant, contract,  | 
         
         
            | 
                
			 | 
            project, function, or activity, but are necessary for the general  | 
         
         
            | 
                
			 | 
            operation of the entity or the performance of the entity's  | 
         
         
            | 
                
			 | 
            activities. | 
         
         
            | 
                
			 | 
                   SECTION 12.  Subchapter D, Chapter 482, Government Code, is  | 
         
         
            | 
                
			 | 
            amended by adding Section 482.303 to read as follows: | 
         
         
            | 
                
			 | 
                   Sec. 482.303.  USE OF FUND FOR OTHER PURPOSES.  Money  | 
         
         
            | 
                
			 | 
            available in the fund may be used to fund the costs and expenses  | 
         
         
            | 
                
			 | 
            incurred under intergovernmental agreements between the commission  | 
         
         
            | 
                
			 | 
            and another state or the United States under this subchapter. | 
         
         
            | 
                
			 | 
                   SECTION 13.  Section 482.501, Government Code, is amended to  | 
         
         
            | 
                
			 | 
            read as follows: | 
         
         
            | 
                
			 | 
                   Sec. 482.501.  RULES; CERTAIN LIMITATIONS ON [FOR] GRANT  | 
         
         
            | 
                
			 | 
            AWARDS [AWARD PROCEDURE].  (a)  The board shall adopt rules  | 
         
         
            | 
                
			 | 
            regarding the procedure for awarding grants to applicants [an  | 
         
         
            | 
                
			 | 
            applicant] under this chapter.  The rules must authorize the  | 
         
         
            | 
                
			 | 
            commission to: | 
         
         
            | 
                
			 | 
                         (1)  identify the specific purpose under Section  | 
         
         
            | 
                
			 | 
            482.302(a) for which the commission awards a grant; and | 
         
         
            | 
                
			 | 
                         (2)  obtain information from the consortium as  | 
         
         
            | 
                
			 | 
            necessary to make award determinations[, 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, or donation to the commission or a  | 
         
         
            | 
                
			 | 
            nonprofit organization established to provide support to the  | 
         
         
            | 
                
			 | 
            commission during the preceding year. | 
         
         
            | 
                
			 | 
                   SECTION 14.  Section 482.505, Government Code, is amended to  | 
         
         
            | 
                
			 | 
            read as follows: | 
         
         
            | 
                
			 | 
                   Sec. 482.505.    GRANT RECORDS; PUBLIC INFORMATION  | 
         
         
            | 
                
			 | 
            EXCEPTION.  (a)  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 of each  | 
         
         
            | 
                
			 | 
            grant recipient described by Section 482.302(b), including the  | 
         
         
            | 
                
			 | 
            amount of matching money dedicated to the project [research]  | 
         
         
            | 
                
			 | 
            specified for the grant award, if applicable; | 
         
         
            | 
                
			 | 
                         (3)  each grant recipient's progress reports; and | 
         
         
            | 
                
			 | 
                         (4)  the board's review of the grant recipient's  | 
         
         
            | 
                
			 | 
            financial reports, if applicable, and progress reports. | 
         
         
            | 
                
			 | 
                   (b)  A grant application submitted to the commission is  | 
         
         
            | 
                
			 | 
            confidential and not subject to disclosure under Chapter 552. | 
         
         
            | 
                
			 | 
                   SECTION 15.  Subchapter G, Chapter 482, Government Code, is  | 
         
         
            | 
                
			 | 
            amended to read as follows: | 
         
         
            | 
                
			 | 
            SUBCHAPTER G.  TEXAS AEROSPACE RESEARCH AND SPACE ECONOMY  | 
         
         
            | 
                
			 | 
            CONSORTIUM | 
         
         
            | 
                
			 | 
                   Sec. 482.601.  DEFINITION [DEFINITIONS].  In this  | 
         
         
            | 
                
			 | 
            subchapter, [: | 
         
         
            | 
                
			 | 
                         [(1)  "Consortium" means the Texas Aerospace Research  | 
         
         
            | 
                
			 | 
            and Space Economy Consortium. | 
         
         
            | 
                
			 | 
                         [(2)]  "executive [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, 2033 [2032]. | 
         
         
            | 
                
			 | 
                   Sec. 482.603.  ESTABLISHMENT; PURPOSE.  The Texas Aerospace  | 
         
         
            | 
                
			 | 
            Research and Space Economy Consortium is established as an advisory  | 
         
         
            | 
                
			 | 
            committee to the board to: | 
         
         
            | 
                
			 | 
                         (1)  identify research opportunities for entities  | 
         
         
            | 
                
			 | 
            within this state that: | 
         
         
            | 
                
			 | 
                               (A)  strengthen this state's proven leadership in  | 
         
         
            | 
                
			 | 
            civil, commercial, and military space-related [aerospace]  | 
         
         
            | 
                
			 | 
            activity; | 
         
         
            | 
                
			 | 
                               (B)  enhance this state's position in aeronautics  | 
         
         
            | 
                
			 | 
            research and development[, astronautics], space commercialization,  | 
         
         
            | 
                
			 | 
            and space flight infrastructure and in the development of space  | 
         
         
            | 
                
			 | 
            travel technologies; and | 
         
         
            | 
                
			 | 
                               (C)  enhance the integration of the space and [,]  | 
         
         
            | 
                
			 | 
            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.  (a) Subject to  | 
         
         
            | 
                
			 | 
            Subsections (b) and (c), the  [The] consortium is composed of: | 
         
         
            | 
                
			 | 
                         (1)  each participating institution of higher  | 
         
         
            | 
                
			 | 
            education; and | 
         
         
            | 
                
			 | 
                         (2)  any other entity that the executive committee  | 
         
         
            | 
                
			 | 
            considers necessary. | 
         
         
            | 
                
			 | 
                   (b)  An institution of higher education is considered a  | 
         
         
            | 
                
			 | 
            participating member of the consortium if the institution submits  | 
         
         
            | 
                
			 | 
            to the executive committee the name of a local campus liaison to  | 
         
         
            | 
                
			 | 
            represent the institution on the consortium. | 
         
         
            | 
                
			 | 
                   (c)  Selection of an entity for membership in the consortium  | 
         
         
            | 
                
			 | 
            under Subsection (a)(2) must be based on an application process  | 
         
         
            | 
                
			 | 
            established by the executive committee. | 
         
         
            | 
                
			 | 
                   Sec. 482.605.  ADMINISTRATIVE ATTACHMENT.  The consortium is  | 
         
         
            | 
                
			 | 
            administratively attached to the commission [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. | 
         
         
            | 
                
			 | 
                   (a-1)  An appointed member of the executive committee serves  | 
         
         
            | 
                
			 | 
            at the pleasure of the appointing official. | 
         
         
            | 
                
			 | 
                   (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, multiple [the ethnic and] geographic regions  | 
         
         
            | 
                
			 | 
            [diversity] of this state. | 
         
         
            | 
                
			 | 
                   (c)  If a [A] vacancy occurs on the executive committee, the  | 
         
         
            | 
                
			 | 
            appropriate appointing official shall appoint a successor [is  | 
         
         
            | 
                
			 | 
            filled] in the same manner as the initial appointment.  The  | 
         
         
            | 
                
			 | 
            appropriate appointing official shall appoint the successor not  | 
         
         
            | 
                
			 | 
            later than the 30th day after the date the vacancy occurs. | 
         
         
            | 
                
			 | 
                   (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.  On behalf of  | 
         
         
            | 
                
			 | 
            the consortium, the [The] executive committee may solicit, [and]  | 
         
         
            | 
                
			 | 
            accept, or spend any [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 an organizational [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 and development  | 
         
         
            | 
                
			 | 
            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 members of the 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 submitting to the board a  | 
         
         
            | 
                
			 | 
            request to fund recommended projects and activities [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. | 
         
         
            | 
                
			 | 
                   Sec. 482.610.  COMPENSATION; EXPENSES.  Executive committee  | 
         
         
            | 
                
			 | 
            members serve without compensation but are entitled to  | 
         
         
            | 
                
			 | 
            reimbursement for actual expenses incurred in attending committee  | 
         
         
            | 
                
			 | 
            meetings.  Those expenses are paid from funds appropriated to the  | 
         
         
            | 
                
			 | 
            consortium. | 
         
         
            | 
                
			 | 
                   Sec. 482.611.  APPLICABILITY OF OTHER LAW.  Chapter 2110  | 
         
         
            | 
                
			 | 
            does not apply to the size, composition, or duration of the  | 
         
         
            | 
                
			 | 
            executive committee. | 
         
         
            | 
                
			 | 
                   SECTION 16.  Section 481.0069, Government Code, is repealed. | 
         
         
            | 
                
			 | 
                   SECTION 17.  (a)  In this section: | 
         
         
            | 
                
			 | 
                         (1)  "Office" means the Texas Economic Development and  | 
         
         
            | 
                
			 | 
            Tourism Office. | 
         
         
            | 
                
			 | 
                         (2)  "Spaceport development corporation" has the  | 
         
         
            | 
                
			 | 
            meaning assigned by Section 507.001, Local Government Code. | 
         
         
            | 
                
			 | 
                   (b)  On the effective date of this Act, the spaceport trust  | 
         
         
            | 
                
			 | 
            fund is abolished and the balance of the fund is transferred to the  | 
         
         
            | 
                
			 | 
            general revenue fund for use in accordance with legislative  | 
         
         
            | 
                
			 | 
            appropriation, except as provided by Subsections (d) and (e) of  | 
         
         
            | 
                
			 | 
            this section. | 
         
         
            | 
                
			 | 
                   (c)  The abolishment of the spaceport trust fund and the  | 
         
         
            | 
                
			 | 
            repeal of Section 481.0069, Government Code, do not affect the  | 
         
         
            | 
                
			 | 
            validity of a contract between the office and a spaceport  | 
         
         
            | 
                
			 | 
            development corporation that is entered into under Section  | 
         
         
            | 
                
			 | 
            481.0069(e), Government Code, before the effective date of this  | 
         
         
            | 
                
			 | 
            Act. | 
         
         
            | 
                
			 | 
                   (d)  Money that was deposited in the spaceport trust fund as  | 
         
         
            | 
                
			 | 
            a gift, grant, or donation under Section 481.0069(c)(1), Government  | 
         
         
            | 
                
			 | 
            Code, shall be held in trust by the comptroller outside the state  | 
         
         
            | 
                
			 | 
            treasury and shall be administered by the comptroller as trustee as  | 
         
         
            | 
                
			 | 
            provided by this subsection.  The comptroller may: | 
         
         
            | 
                
			 | 
                         (1)  spend money encumbered by the specific terms of  | 
         
         
            | 
                
			 | 
            the gift, grant, or donation only in accordance with those terms; | 
         
         
            | 
                
			 | 
                         (2)  return to the donor or grantor, on request, any  | 
         
         
            | 
                
			 | 
            portion of the amount of a gift, grant, or donation described by  | 
         
         
            | 
                
			 | 
            this subsection that remains on deposit; or | 
         
         
            | 
                
			 | 
                         (3)  transfer to the general revenue fund for use in  | 
         
         
            | 
                
			 | 
            accordance with legislative appropriation any other remaining  | 
         
         
            | 
                
			 | 
            money deposited as a gift, grant, or donation under Section  | 
         
         
            | 
                
			 | 
            481.0069(c)(1), Government Code. | 
         
         
            | 
                
			 | 
                   (e)  Money from the spaceport trust fund that is encumbered  | 
         
         
            | 
                
			 | 
            because the money is obligated by contract before the effective  | 
         
         
            | 
                
			 | 
            date of this Act, but under the terms of the contract will not be  | 
         
         
            | 
                
			 | 
            distributed until a later date, shall be held in trust by the  | 
         
         
            | 
                
			 | 
            comptroller as trustee outside the state treasury and shall be  | 
         
         
            | 
                
			 | 
            administered by the comptroller as trustee to ensure that the money  | 
         
         
            | 
                
			 | 
            is distributed in accordance with the terms of the contract.  If the  | 
         
         
            | 
                
			 | 
            office determines that the money will not be distributed in  | 
         
         
            | 
                
			 | 
            accordance with the terms of the contract, the office shall certify  | 
         
         
            | 
                
			 | 
            that fact to the comptroller.  On that certification, the  | 
         
         
            | 
                
			 | 
            comptroller shall transfer that money to the general revenue fund  | 
         
         
            | 
                
			 | 
            to be used in accordance with legislative appropriation. | 
         
         
            | 
                
			 | 
                   (f)  On or after the effective date of this Act, the  | 
         
         
            | 
                
			 | 
            following payments or other amounts shall be remitted to the  | 
         
         
            | 
                
			 | 
            comptroller for deposit to the general revenue fund: | 
         
         
            | 
                
			 | 
                         (1)  any interest or income earned on the investment of  | 
         
         
            | 
                
			 | 
            money in the spaceport trust fund; | 
         
         
            | 
                
			 | 
                         (2)  any money returned by a spaceport development  | 
         
         
            | 
                
			 | 
            corporation under a contract entered into under Section 481.0069,  | 
         
         
            | 
                
			 | 
            Government Code; and | 
         
         
            | 
                
			 | 
                         (3)  any money received by a donor or grantor under  | 
         
         
            | 
                
			 | 
            Subsection (d)(2) of this section that is subsequently returned to  | 
         
         
            | 
                
			 | 
            the state. | 
         
         
            | 
                
			 | 
                   SECTION 18.  The term of a member serving on the aerospace  | 
         
         
            | 
                
			 | 
            and aviation advisory committee immediately preceding the  | 
         
         
            | 
                
			 | 
            effective date of this Act expires on that date.  The member may be  | 
         
         
            | 
                
			 | 
            reappointed to the committee. | 
         
         
            | 
                
			 | 
                   SECTION 19.  This Act takes effect September 1, 2025. | 
         
         
            |   | 
         
         
            |   | 
         
         
            |   | 
            ______________________________ | 
            ______________________________ | 
         
         
            |   | 
               President of the Senate | 
            Speaker of the House      | 
         
         
            |   | 
         
         
            |   | 
         
         
            | 
                		
			 | 
                   I certify that H.B. No. 5246 was passed by the House on May 2,  | 
         
         
            | 
                		
			 | 
            2025, by the following vote:  Yeas 123, Nays 8, 1 present, not  | 
         
         
            | 
                		
			 | 
            voting; that the House refused to concur in Senate amendments to  | 
         
         
            | 
                		
			 | 
            H.B. No. 5246 on May 27, 2025, and requested the appointment of a  | 
         
         
            | 
                		
			 | 
            conference committee to consider the differences between the two  | 
         
         
            | 
                		
			 | 
            houses; and that the House adopted the conference committee report  | 
         
         
            | 
                		
			 | 
            on H.B. No. 5246 on June 1, 2025, by the following vote:  Yeas 83,  | 
         
         
            | 
                		
			 | 
            Nays 52, 2 present, not voting. | 
         
         
            | 
                		
			 | 
             | 
         
         
            | 
                		
			 | 
            ______________________________ | 
         
         
            | 
                		
			 | 
            Chief Clerk of the House    | 
         
         
            |   | 
         
         
            | 
                		
			 | 
                   I certify that H.B. No. 5246 was passed by the Senate, with  | 
         
         
            | 
                		
			 | 
            amendments, on May 23, 2025, by the following vote:  Yeas 30, Nays  | 
         
         
            | 
                		
			 | 
            1; at the request of the House, the Senate appointed a conference  | 
         
         
            | 
                		
			 | 
            committee to consider the differences between the two houses; and  | 
         
         
            | 
                		
			 | 
            that the Senate adopted the conference committee report on H.B. No.  | 
         
         
            | 
                		
			 | 
            5246 on May 31, 2025, by the following vote:  Yeas 21, Nays 10. | 
         
         
            | 
                		
			 | 
             | 
         
         
            | 
                		
			 | 
            ______________________________ | 
         
         
            | 
                		
			 | 
            Secretary of the Senate    | 
         
         
            | 
                		
			 | 
            APPROVED: __________________ | 
         
         
            | 
                		
			 | 
                            Date        | 
         
         
            | 
                		
			 | 
              | 
         
         
            | 
                		
			 | 
                     __________________ | 
         
         
            | 
                		
			 | 
                          Governor        |