Relating to the creation of the Dementia Prevention and Research Institute of Texas.

Contracts

Existing standard tech-transfer and commercialization agreements are insufficient for DPRIT funding.

• IP & Royalties: You must execute agreements granting the State of Texas a share of royalties and income from patents/products developed with grant funds.
• State Liens: Contracts for construction or capital equipment will attach a state lien to the asset; you cannot sell or encumber these assets without state approval and profit-sharing.
• Vendor Flow-Down: Prime contracts require a "good faith effort" to purchase from Texas suppliers. You must flow down these requirements to subcontractors to ensure the 50% Texas-sourcing goal is met.

Hiring/Training

• Conflict of Interest (COI) Screening: Implement a mandatory pre-screening workflow for all Principal Investigators and executives against the DPRIT Oversight Committee roster. Failure to disclose a relationship can result in immediate grant termination and barring from future funding.
• Time & Effort Reporting: Personnel costs charged to the grant cannot be based on estimates; they must be substantiated by rigorous time-tracking systems compliant with state audit standards.

Reporting & Record-Keeping

• 15-Year Retention: The law mandates a 15-year retention period for all grant records. You must adjust document retention schedules immediately to segregate and preserve financial reports, progress reports, and matching fund certifications for this duration.
• Matching Fund Certification: You must certify the availability of 50% matching funds (cash or fair market value of development support) *before* receiving any state money.

Fees & Costs

• Indirect Cost Cap: Indirect costs (overhead) are statutorily capped at 5% of the grant amount. You cannot utilize standard federal indirect cost rates.
• Clawback Liability: The statute mandates repayment of the grant plus interest if funds are not used for intended purposes or if contract terms are breached.