Tex. Health and Safety Code § 101A.304 — TX Code / Code hs / Chapter 101A / Section 101A.304
§ 101A.304. CONTRACT TERMS.
Status: in_force

(a) Before disbursing grant money awarded under this chapter, the institute shall execute a written contract with the grant recipient. The contract shall:

(1) specify that except for awards to state agencies or public institutions of higher education, if all or any part of the grant amount is used to build a capital improvement:

(A) the state retains a lien or other interest in the capital improvement in proportion to the percentage of the grant amount used to pay for the capital improvement; and

(B) the grant recipient shall, if the capital improvement is sold:

(i) repay to this state the grant money used to pay for the capital improvement, with interest at the rate and according to the other terms provided by the contract; and

(ii) share with this state a proportionate amount of any profit realized from the sale;

(2) specify that if the grant recipient has not used awarded grant money for the purposes for which the grant was intended, the recipient shall repay that grant amount and any related interest applicable under the contract to this state at the agreed rate and on the agreed terms;

(3) specify that if the grant recipient fails to meet the terms and conditions of the contract, the institute may terminate the contract using the written process prescribed in the contract and require the recipient to repay the awarded grant money and any related interest applicable under the contract to this state at the agreed rate and on the agreed terms;

(4) include terms relating to intellectual property rights consistent with the standards developed by the oversight committee under Section 101A.305;

(5) require, in accordance with Subsection (b), the grant recipient to dedicate an amount of matching money equal to one-half of the amount of the grant awarded and specify the amount of matching money to be dedicated;

(6) specify the period in which the grant award must be spent; and

(7) include the specific deliverables of the project that is the subject of the grant proposal.

(b) Before the institute may disburse grant money, the grant recipient must certify the recipient has available an unexpended amount of money equal to one-half of the grant amount dedicated to the research specified in the grant proposal. The institute shall adopt rules specifying a grant recipient's obligations under this chapter. At a minimum, the rules must:

(1) allow an institution of higher education or a private or independent institution of higher education, as those terms are defined by Section 61.003, Education Code, a research institute or center affiliated with the institution, or a not-for-profit hospital system, to credit toward the recipient's matching money the dollar amount equivalent to the difference between the indirect cost rate negotiated by the federal government for research grants awarded to the recipient and the indirect cost rate authorized by Section 101A.202(c);

(2) specify that:

(A) the recipient of more than one grant award under this chapter may provide matching money certification at an institutional level;

(B) the recipient of a multiyear grant award may yearly certify matching money; and

(C) grant money may not be disbursed to the recipient until the annual certification of the matching money has been approved;

(3) specify that money for certification purposes may include:

(A) federal money;

(B) the fair market value of drug development support provided to the recipient by the National Institutes of Health or other similar programs;

(C) this state's money;

(D) other states' money; and

(E) nongovernmental money, including money from private sources, foundation grants, gifts, and donations;

(4) specify that the following items may not be used for certification purposes:

(A) in-kind costs;

(B) volunteer services provided to the recipient;

(C) noncash contributions;

(D) the recipient's preexisting real estate, including buildings, facilities, and land;

(E) deferred giving, including a charitable remainder annuity trust, charitable remainder unitrust, or pooled income fund; or

(F) any other items the institute determines;

(5) require the recipient's certification to be included in the grant award contract;

(6) specify that the recipient's failure to provide certification serves as grounds for terminating the grant award contract;

(7) require the recipient to maintain adequate documentation supporting the source and use of the money required by this subsection and to provide documentation to the institute on request; and

(8) require the institute to establish a procedure to annually review the documentation supporting the source and use of money reported in the required certification.

(c) The institute shall establish a policy on advance payments to grant recipients.

(d) The oversight committee shall adopt rules to administer this section.