Notwithstanding any provision in this chapter, the commission may issue a direct award grant to an entity allowed by law if:

1. (1) the grant recipient has entered into an agreement with the consortium under procedures established in Section 482.608(a)(3)(C), Texas Government Code, and:

   1. (A) the purpose of the grant is to enable the consortium to undertake its duties established under Chapter 482, Texas Government Code; and
   2. (B) the commission and grant recipient enter a grant agreement(s);

2. (2) the board determines that circumstances related to a direct award grant request cannot follow standard application processes because it would result in an entity failing to meet a deadline or similar milestone, and:

   1. (A) without grant funds, the potential grantee could not successfully undertake the project to which the request relates;
   2. (B) failure to undertake the project to which the request relates would result in the loss of a significant commercial, civil, or military related opportunity for advancing the space, aeronautics, or aviation industries in the state;
   3. (C) the commission and grant recipient enter a grant agreement that places sufficient controls on the transaction to ensure the public purpose of the grant is carried out; and
   4. (D) awarding a direct grant is in the best interest of the state; or
3. (3) the board determines a direct award grant is necessary for a potential grantee to respond to a matter of national security, defined by the intelligence community or the national defense strategy, as well as a natural disaster or public health crisis and states of emergency and, as soon as practicable, the commission and grant recipient enter a grant agreement that places sufficient controls on the transaction to ensure the public purpose of the grant is carried out.

Source Note:The provisions of this §321.16 adopted to be effective December 8, 2024, 49 TexReg 9957.