Texas Government Code - GOV'T § 482.302. Use of Fund for Grants

(a) Using money available in the fund, the commission may provide grants to eligible entities described by Subsection (b) for the purposes of:

(b) The following entities are eligible for a grant made under this subchapter:

(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.

(c) The board shall comply with the provisions of this chapter in developing the procedures for administration and approval of grants through the fund.

(d) The commission shall provide written notification to the Legislative Budget Board not later than the 30th day after the date a grant award is made from the fund.

(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:

(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.