Amend CSHB 1277 (house committee printing) as follows:                       
	(1)  On page 2, between lines 3 and 4, insert the following:                   
	SECTION 3.  Section 481.078, Government Code, is amended by 
adding Subsections (f-1) and (f-2) to read as follows:
	(f-1)  An entity that acquires, by merger, acquisition, or 
other transfer, ownership or control of a grant recipient shall:
		(1)  report the change in ownership or control to the 
governor; and  
		(2)  comply with the terms and conditions of the grant 
agreement entered into by the grant recipient and any other 
requirement imposed on the grant recipient in connection with the 
grant award.
	(f-2)  The grant agreement must include a provision 
regarding the requirements of Subsection (f-1).  A grant recipient 
that is the subject of a merger, acquisition, or other transfer of 
ownership or control shall include language in each contract 
relating to the transfer that informs the acquiring entity of its 
duties and obligations under Subsection (f-1).
	SECTION 4.  Sections 481.078(f-1) and (f-2), Government 
Code, as added by this Act, apply only to an agreement that is 
entered into on or after the effective date of this Act.  An 
agreement that is entered into before the effective date of this Act 
is governed by the law in effect on the date the agreement was 
entered into, and the former law is continued in effect for that 
purpose.
	(2)  On page 2, line 4, strike "SECTION 3" and substitute 
"SECTION 5".       
	(3)  On page 2, strike lines 6 and 7 and substitute the 
following:           
	(b)  Section 2 of this Act takes effect September 1, 2011.