HB 5246

relating to the administration, powers, and duties of the Texas
Space Commission, the Texas Aerospace Research and Space Economy
Consortium, and other governmental entities and institutions
regarding aerospace, aviation, and space exploration initiatives
and to the abolishment of the spaceport trust fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Sections 481.0066(d), (e), and (e-1), Government
Code, are amended to read as follows:
(d)  The aerospace and aviation office shall:
(1)  analyze aerospace-related [space-related] and
aviation-related research currently conducted in this state and may
conduct activities designed to further that research;
(2)  analyze the state's economic position in the
aerospace and aviation industries;
(3)  develop short-term and long-term business
strategies as part of an industry-specific strategic plan to
promote the retention, development, and expansion of aerospace and
aviation industry facilities in the state that is consistent with
and complementary of the office strategic plan;
(4)  as part of and to further the purposes of the
industry-specific strategic plan described by Subdivision (3),
develop short-term and long-term policy initiatives or recommend
reforms the state may undertake or implement to:
(A)  increase investment in aerospace and
(B)  [support the retention, development, and
expansion of spaceports in this state;
[(C)]  identify and encourage educational,
economic, and defense-related opportunities for aerospace and
(C)  [(D) determine the appropriate level of
funding for the spaceport trust fund created under Section 481.0069
and] support ongoing projects that have been assisted by the former
spaceport trust fund[, including recommending to the legislature an
appropriate funding level for the fund]; and
(D) [(E)]  partner with the Texas Higher
Education Coordinating Board to foster technological advancement
and economic development for aerospace [spaceport] activities by
strengthening higher education programs and supporting aerospace
[(F)  partner with the Texas Workforce Commission
to support initiatives that address the high technology skills and
staff resources needed to better promote the state's efforts in
becoming the leading space exploration state in the nation;]
(5)  act as a liaison with other state and federal
entities with related economic, educational, and defense
responsibilities to support the marketing of the state's aerospace
(6)  provide technical support and expertise to the
state and to local [spaceport] authorities regarding aerospace and
aviation business matters[; and
[(7)  be responsible for the promotion and development
(e)  The governor shall appoint an aerospace and aviation
advisory committee consisting of[:
[(1)]  seven qualified members to assist in the state's
economic development efforts to recruit and retain aerospace and
aviation jobs and investment[; and
[(2)  one member for each active spaceport development
corporation in the state who represents the interests of each
respective spaceport development corporation].
(e-1)  The aerospace and aviation advisory committee shall:
(1)  advise the governor on the recruitment and
retention of aerospace and aviation jobs and investment;
(2)  assist the office and the aerospace and aviation
office in meeting the state's economic development efforts to
recruit and retain aerospace and aviation jobs and investment;
(3)  [advise the office, the aerospace and aviation
office, and the governor on an appropriate funding level for the
[(4)]  advise the office, the aerospace and aviation
office, and the governor on recruitment, retention, and expansion
of aerospace and aviation industry activities; and
(4) [(5)]  collect and disseminate information on
federal, state, local, and private community economic development
programs that assist or provide loans, grants, or other funding to
aerospace and aviation industry activities.
SECTION 2.  Sections 482.101(a) and  (b), Government Code,
are amended to read as follows:
(a)  The Texas Space Commission is established to strengthen
this state's proven leadership in civil, commercial, and military
outer space [aerospace] activity.
(b)  The purpose of the commission is to promote:
(1)  innovation in the fields of space exploration and
(2)  commercial aerospace opportunities; and
(3)  [, including] the integration of the space and [,]
aeronautics[, and aviation] industries into the economy of this
SECTION 3.  Section 482.103, Government Code, is amended to
Sec. 482.103.  SUNSET PROVISION.  The commission is subject
to Chapter 325 (Texas Sunset Act). Unless continued in existence as
provided by that chapter, the commission is abolished and this
chapter expires September 1, 2033 [2032].
SECTION 4.  Section 482.105, Government Code, is amended by
amending Subsections (a), (b), (c), (e), and (f) and adding
Subsection (a-1) to read as follows:
(a)  The commission is governed by a [nine-member] board of
directors [.  The board is] composed of the following nine voting
(1)  three members appointed by the governor;
(2)  three members appointed by the lieutenant
(3)  three members appointed by the speaker of the
(a-1)  The executive director of the Texas Economic
Development and Tourism Office serves as an ex officio nonvoting
(b)  In making appointments under Subsection (a), the
governor, lieutenant governor, and speaker of the house of
representatives shall prioritize appointing individuals with
(1)  the nongovernmental commercial space industry
(2)  governmental space operations [civil aviation];
(3)  military space operations [aerospace];
(4)  space-related [space] economic development;
(5)  space-related academic research; and
(6)  nonprofit support of the space economy.
(c)  Voting members [Members] of the board appointed by the
governor, lieutenant governor, and speaker of the house serve [at
the pleasure of the appointing office] for staggered six-year
terms, with the terms of three [two] members expiring on January 31
(e)  Not later than the 30th day after the date a voting board
member's term expires, the appropriate appointing authority shall
(f)  The board shall elect a presiding officer from among the
SECTION 5.  Section 482.107, Government Code, is amended to
Sec. 482.107.  BOARD OF DIRECTORS: AUTHORITY. (a)  The board
(1)  direct the activities of, establish goals for, and
provide oversight to the commission;
(2)  develop and execute a strategic plan in accordance
(3)  establish the appropriate standards and executive
bodies to ensure the proper use of funds authorized under this
chapter for research and facilities development;
(4)  identify research and funding opportunities for
entities within this state that:
(A)  strengthen and enhance this state's proven
leadership position in civil, commercial, and military aeronautics
research and development and space flight infrastructure;
(B)  enhance the integration of the space and [,]
aeronautics[, astronautics, and aviation] industries into this
(C)  promote and further research involving
materials derived from or developed through space exploration and
(5)  capitalize, promote, and assist in the development
of workforce training to further the development of emerging
technologies required for all aspects of space exploration; [and]
(6)  solicit proposals from the Texas Aerospace
Research and Space Economy Consortium established under Chapter 483
for projects [on funding] and [research] opportunities related to
the objectives in this chapter that could be funded with money from
(7)  enter into an interagency agreement with the Texas
Aerospace Research and Space Economy Consortium regarding the
submission of proposals for projects eligible for a grant from the
fund [from the Texas Aerospace Research and Space Economy
Consortium established under Subchapter G].
(b)  The board shall employ a chief compliance officer to
monitor and report to the board regarding compliance with this
chapter and rules adopted under this chapter. The chief compliance
officer shall ensure that all grant proposals comply with this
chapter and rules adopted under this chapter [before the proposals
are submitted to the board for approval].
(b-1)  The board shall employ a general counsel to advise the
commission and perform duties assigned by the board.
(1)  establish ad hoc advisory committees as necessary
to carry out the board's duties under this chapter;
(2)  adopt and use an official seal;
(3)  solicit and accept gifts, [or] grants, or
donations and contract with any entity;
(4)  establish a nonprofit corporation as necessary to
carry out the purposes of this chapter;
(5) [(4)]  acquire and convey property or an interest
(6) [(5)]  procure insurance and pay premiums on
insurance of any type, in accounts, and from insurers as the board
considers necessary and advisable to accomplish any of the
(7) [(6)]  make grants to public or private persons
with an established presence within this state to encourage
economic development related to space and aerospace;
(8) [(7)]  make grants to enhance the capacity of
institutions of higher education to participate in and support
(9) [(8)]  provide matching funding to external
funding provided by relevant federal agencies, private industry, or
private research organizations; [and]
(10) [(9)]  engage in the planning and implementation
of  space exploration and spaceflight-related [aerospace-related]
educational opportunities within this state in coordination with
the Texas Aerospace Research and Space Economy Consortium
(11)  in order to carry out the purposes of the
commission, charter any state-owned aircraft, including aircraft
held by an institution of higher education, the Texas Department of
Public Safety, or the Texas Department of Transportation, or other
aircraft to travel to visit proposed project sites in this state,
including travel by persons approved by the executive director and
the board's presiding officer; and
(12)  contract with The Texas A&M University System as
necessary to carry out the purposes of this chapter [Subchapter G].
SECTION 6.  Section 482.201(a), Government Code, is amended
(a)  The commission shall develop and annually update a
strategic plan for the promotion of space and [,] aeronautics[, and
aviation] economic development in this state.
SECTION 7.  Section 482.302, Government Code, is amended by
amending Subsections (a) and (b) and adding Subsections (b-1), (e),
(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
(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
(1)  a business or nonprofit entity involved in the
space exploration and space [,] research industry[,] or the
(2)  a governmental entity involved in the space
exploration and space research industry or the aeronautics
(3)  the Texas Aerospace Research and Space Economy
Consortium established under Chapter 483 [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
(e)  The commission shall establish sufficient controls to
ensure that a grant awarded under this subchapter promotes the
purposes listed in Subsection (a).
(f)  The commission shall adopt a policy on advance payments
(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
SECTION 8.  Section 482.501, Government Code, is amended to
Sec. 482.501.  RULES FOR GRANT AWARD PROCEDURE.  (a)  The
board shall adopt rules regarding the procedure for awarding grants
to applicants [an applicant] under this chapter, including
obtaining information from the [a procedure for the] Texas
Aerospace Research and Space Economy Consortium established under
Chapter 483 as necessary to make award determinations [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 to the commission or a nonprofit organization
established to provide support to the commission during the
SECTION 9.  Subchapter G, Chapter 482, Government Code, is
redesignated as Chapter 483, Government Code, and amended to read
CHAPTER 483 [SUBCHAPTER G]. TEXAS AEROSPACE RESEARCH AND SPACE
Sec. 483.001  [482.601].  DEFINITIONS.  In this chapter
(1)  "Commission" means the Texas Space Commission.
(2)  "Consortium" means the Texas Aerospace Research
(3) [(2)]  "Executive committee" means the executive
(4)  "Institution of higher education" has the meaning
assigned by Section 61.003, Education Code.
Sec. 483.002  [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. 483.003  [482.603].  ESTABLISHMENT; PURPOSE.  The Texas
Aerospace Research and Space Economy Consortium is established to:
(1)  identify research opportunities for entities
(A)  strengthen this state's proven leadership in
civil, commercial, and military space-related [aerospace]
(B)  enhance this state's position in aeronautics
research and development[, astronautics], space commercialization,
and space flight infrastructure and in the development of space
(C)  enhance the integration of the space and [,]
aeronautics[, astronautics, and aviation] industries into this
(2)  provide [funding and] research recommendations to
Sec. 483.004  [482.604].  CONSORTIUM COMPOSITION.  (a)
Subject to Subsections (b) and (c), the  [The] consortium is
(1)  each participating institution of higher
(2)  any other entity that the executive committee
(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. 483.005  [482.605]. ADMINISTRATIVE ATTACHMENT. (a) The
consortium is administratively attached to the Texas A&M
Engineering Experiment Station [office of the governor] for the
purpose of receiving and administering appropriations and other
funds under this subchapter. The Texas A&M Engineering Experiment
Station [office of the governor] is not responsible for providing
to the consortium staff, human resources, contract monitoring,
purchasing, or any other administrative support services.
(b)  The executive committee shall establish procedures for
entering into contracts with The Texas A&M University System or
applicable subcontractors as necessary to provide administrative
and staff support to the consortium.
Sec. 483.006  [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
(4)  the chancellor of The Texas A&M University System
(5)  the chancellor of The University of Texas System
or the chancellor's designee; and
(6)  the president of Rice University or the
(a-1)  An appointed member of the 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
(B)  space economic development; and
(C)  academic engagement with the space economy;
(2)  ensure that the appointments reflect, to the
extent possible, the ethnic and geographic 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
(2)  meet at the call of the presiding officer.
Sec. 483.007  [482.607]. GIFTS, GRANTS, AND DONATIONS. On
behalf of the consortium, the [The] executive committee may
solicit, [and] accept, give, 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. 483.008  [482.608]. GENERAL DUTIES. (a)  The executive
(1)  develop 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 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
(B)  designation of a member of the committee as
the committee's liaison to the commission; and
(C)  procedures for submitting to the board of
directors of the commission a request for a grant from the space
exploration and aeronautics research fund established under
Chapter 482 for recommended projects and activities and for
entering into necessary agreements if awarded a grant [entering
into contracts with The Texas A&M University System as necessary
for that system to provide administrative and staff support to the
(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. 483.009  [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
(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
Sec. 483.010.  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
Sec. 483.011  APPLICABILITY OF OTHER LAW.  Chapter 2110 does
not apply to the size, composition, or duration of the executive
SECTION 10.  Section 481.0069, Government Code, is repealed.
SECTION 11.  (a)  In this section:
(1)  "Office" means the Texas Economic Development and
(2)  "Spaceport development corporation" has the
meaning assigned by Section 507.001, Local Government Code.
(b)  On September 1, 2025, 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 September 1, 2025.
(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 September 1,
2025, 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 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
(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,
(3)  any money received by a donor or grantor under
Subsection (d)(2) of this section that is subsequently returned  to
SECTION 12.  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
SECTION 13.  This Act takes effect September 1, 2025.