(a) The director of the Governor’s Office of Budget and Planning shall establish a state grant writing team. The grant writing team shall:
(1) develop a plan for increased state access to available federal funds;
(2) coordinate with state agencies to develop a plan for the use of federal grant funds;
(3) monitor the federal register, the Texas Register, and other federal or state publications to identify federal and state funding opportunities, with special emphasis on discretionary grants or other funding opportunities that the state is not pursuing;
(4) develop procedures to formally notify appropriate state and local agencies of the availability of discretionary federal funds and coordinate the application process; and
(5) periodically review the funding strategies and methods of those states that rank significantly above the national average in the per capita receipt of federal funds to determine whether those strategies and methods could be successfully employed by this state.
(b) The grant writing team may:
(1) establish a clearinghouse of information relating to the availability of state, federal, and private grants;
(2) establish an automated information system database for grant information and make it available for use by state agencies and political subdivisions;
(3) provide counseling to state agencies, political subdivisions of the state, nonprofit charitable institutions, educational institutions, and residents of the state concerning the availability and means of obtaining state, federal, and private grants;
(4) provide grant writing assistance and training to state agencies, political subdivisions of the state, individuals, and other entities either directly or through interagency contracts, cooperative agreements, or contracts with third-party providers;
(5) publicize the services and activities of the grant writing team through chambers of commerce, councils of government, department newsletters, local governments, state agencies, institutions of higher education, business organizations, private philanthropic organizations, and other appropriate entities and methods;
(6) establish and maintain a database of state agencies designated under state and federal law to receive federal categorical and block grant funds; and
(7) analyze the criteria for grants for which state agencies are denied access because of state law or rules or agency organization and suggest changes in agency rules or organization that would increase the probability of the agency’s receiving federal or other grants.

(c) When appropriate, the grant writing team shall charge and collect fees from a person who uses the grant writing team’s services. The fee shall be set in an amount necessary to cover all or a part of the costs of the services.
(d) The grant writing team shall monitor and identify federal grants that are available to state and local criminal justice agencies and assist the agencies in applying for and obtaining those grants.
(e) The grant writing team may initiate negotiations for and enter into a memorandum of understanding with other state agencies to cooperate with the grant writing team in providing:
(1) information on federal and state funding opportunities;
(2) technical assistance; or
(3) assistance in writing grant proposals for political subdivisions of the state, nonprofit charitable institutions, educational institutions, and residents of the state.
(f) Each state agency shall designate an employee on the management or senior staff level to serve as the agency’s federal funds coordinator. An agency may not create a staff position for a federal funds coordinator. The coordinator’s duties are additional duties of an employee of the agency. Each federal funds coordinator shall:
(1) oversee and coordinate the agency’s efforts in acquiring discretionary federal funds;
(2) send the grant writing team an annual report listing the grants for which the agency has applied and the catalogue of federal domestic assistance number and giving a short description of the grant; and
(3) notify the grant writing team of an award or denial of a federal grant to the agency.
(g) Each state agency other than an institution of higher education shall file an annual report with the grant writing team concerning the agency’s efforts to acquire available discretionary federal funds during the preceding state fiscal year. The grant writing team shall establish guidelines for information included in the annual report required by this subsection.
(g-1) The grant writing team shall:
(1) evaluate the effectiveness of each agency in acquiring discretionary federal funds during the preceding state fiscal year;
(2) report the findings of the evaluation to the governor and the Legislative Budget Board; and
(3) publish the report on the office of the governor’s Internet website.
(h) After reviewing the reports under Subsection (g), if the governor or Legislative Budget Board determines that an agency’s efforts were unsatisfactory, either entity may, without a finding of an existing emergency, take action under Chapter 317 to affect the agency’s appropriation.
(i) In this section:
(1) “Earned federal funds” means funds that are received or earned in connection with a federally funded program but that are not required by the governing agreement to be distributed on that program. The term includes indirect cost receipts and interest earned on advances of federal funds.
(2) “Federal funds” means all assistance provided or potentially available to state agencies from the federal government in the form of grants, contracts, loans, loan guarantees, property, cooperative agreements, interest subsidies, insurance, direct appropriations, or any other method of disbursement.
(3) “Indirect costs” means costs, as defined by Federal Management Circular A-87 or subsequent revisions of that circular, that are incurred by state agencies in support of federally funded programs and that are eligible for reimbursement from the federal government.
(4) “Local governmental entity” means a county, municipality, special purpose district, including a school district, or any other political subdivision of this state.