BILL ANALYSIS

Senate Research Center	S.B. 2204
	By: Birdwell
	Water, Agriculture and Rural Affairs
	7/1/2025
	Enrolled

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Texas Grant Management Standards (TGMS) are guidelines established under Chapter 783 of the Texas Government Code to provide uniform requirements for managing state-administered grant programs. They replaced the earlier Universal Grant Management Standards (UGMS) on January 1, 2022, and align with federal regulations. The TGMS are designed to ensure consistency, accountability, and transparency across state agencies in the administration of grant funds. These standards set requirements for processes such as application, reporting, financial oversight, auditing, and compliance with state and federal laws. However, some state agencies, such as the Texas Water Development Board (TWDB), operate under statutory frameworks that require more specialized standards.

S.B. 2204 exempts grants under the Water Assistance Fund, Water Loan Assistance Fund, and Rural Water Assistance Fund from TGMS. TWDB's standards exceed those outlined in TGMS and are tailored to the agency's statutory authority and the unique requirements of its financial assistance programs.

The bill codifies the exemption to ensure these programs operate under TWDB's more comprehensive, program-specific grant standards.

S.B. 2204 amends current law relating to the applicability of uniform grant and contract management standards to certain Texas Water Development Board programs.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 15.008, Water Code, as follows:

Sec. 15.008. GRANT STANDARDS. Provides that the law regarding uniform grant and contract management, Chapter 783 (Uniform Grant and Contract Management), Government Code, does not apply to a contract under certain subchapters, including Subchapter B (Water Assistance Fund), C (Water Loan Assistance Program), or R (Rural Water Assistance Fund). Deletes existing text providing that the law regarding uniform grant and contract management, Chapter 783, Government Code, does not apply to a contract under certain subchapters or to a contract relating to an economically distressed area or nonborder colonia under Subchapter C.

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 2025.