TITLE 34. PUBLIC FINANCE

PART 1. COMPTROLLER OF PUBLIC ACCOUNTS

CHAPTER 16. COMPTROLLER GRANT PROGRAMS

SUBCHAPTER G. SHERIFF IMMIGRATION LAW ENFORCEMENT GRANT PROGRAM

The Comptroller of Public Accounts adopts new §16.550, concerning definitions; §16.551, concerning applications; §16.552, concerning comptroller review; §16.553, concerning grant agreement; §16.554, concerning authorized uses of grant funds; §16.555, concerning reporting and compliance; and §16.556, concerning fiscal year 2026 application period, with a non-substantive change to the proposed text as published in the January 30, 2026, issue of the Texas Register (51 TexReg 531) to correct a typographical error in §16.554(a)(8)(A). The rules will be republished. These new sections will be located in 34 TAC Chapter 16, new Subchapter G, Sheriff Immigration Law Enforcement Grant Program.

Section 16.550 provides definitions.

Section 16.551 describes the application process.

Section 16.552 describes comptroller review.

Section 16.553 describes the requirements for grant agreements.

Section 16.554 describes the authorized uses of grant funds and limitations on uses of grant funds.

Section 16.555 describes reporting requirements and available remedies for noncompliance.

Section 16.556 describes the Fiscal Year 2026 application period.

The comptroller received one comment seeking clarification on various aspects of the program from the Hidalgo County Sheriff's Office ("HCSO"). HCSO did not suggest changes to the proposed rules.

HCSO asks whether warrant officers must be fully commissioned deputy sheriffs and TCOLE-licensed peace officers in order to qualify for program participation and compensation reimbursement. The comptroller notes that the rules do not specify minimum licensing requirements for persons performing duties under an immigration law enforcement agreement or otherwise participating in the program. However, §16.555(c) requires compliance with applicable state and federal law. The program will require licensure only to the extent required by applicable state and federal law. Because the rules sufficiently address the issue, no changes are made in response to the question.

HCSO asks whether warrant officers must be assigned exclusively to immigration enforcement duties, or whether partial assignments will be allowed. HCSO further asks, if partial assignments are allowed, what method of time allocation and documentation will be considered sufficient for reimbursement eligibility. The comptroller notes that the rules do not impose such a requirement unless required through §16.555(c). Because specific documentation requirements could vary based on relevant facts, the rules are not the appropriate forum to provide this level of detail. Generally, §16.555 requires grant recipients to "certify compliance and provide detailed information" regarding grant fund expenditures and any additional supporting documentation the comptroller requests to substantiate compliance with the grant agreement and other program requirements. No changes are made in response to the question.

HCSO asks whether the program allows reimbursement for total compensation costs associated with warrant officers, including base salary, overtime, benefits, and any specialty or certification pay related to immigration enforcement duties. Because §16.554(d) sufficiently addresses this question, no change is needed to the rules in response.

HCSO asks what level of documentation will be required to demonstrate that compensated hours are directly tied to duties performed under the immigration enforcement agreement, and what records will be considered sufficient during an audit review. Because specific documentation requirements could vary based on relevant facts, the rules are not the appropriate forum to provide this level of detail. The comptroller anticipates requiring payroll documentation that is line-itemed as grant funds for expenses not reimbursed by the federal government, but may adjust the requirements or request additional information as needed. No changes are made in response to this question.

HCSO asks whether supervisory oversight and administrative support directly assigned to the warrant officer unit may be classified as direct costs, or whether these must be applied toward the 5.0% indirect cost cap. Because §16.554(a)(8) sufficiently addresses this question, no change is needed to the rules in response.

The new sections are adopted under Government Code, §753.104, which requires the comptroller to adopt rules to implement a new grant program to assist sheriffs participating in immigration law enforcement agreements.

The new sections implement Government Code, §753.104.

§16.550. Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Applicant--A sheriff of a county that operates a jail or contracts with a private vendor to operate a jail who applies for a grant.

(2) Biennium--A two-year period that runs from September 1 of an odd-numbered year through August 31 of the next odd-numbered year.

(3) Deputy sheriff--A person appointed as deputy sheriff pursuant to Local Government Code, §85.003.

(4) Equipment--This term includes any tangible or nontangible item necessary to perform duties required under an immigration law enforcement agreement including safety equipment, computers, firearms, vehicles and software. This term does not include office supplies such as pens, paper, and office furniture.

(5) Fiscal year--The twelve consecutive calendar months when an applicant tracks its finances for budget and accounting purposes.

(6) Grant--A grant awarded under Government Code, Chapter 753, Subchapter C, to a sheriff who has entered into an immigration law enforcement agreement.

(7) Grant agreement--An agreement between the comptroller and a grant recipient that governs the terms of a grant.

(8) Grant reporting costs--Costs related to generating and delivering reports required under this subchapter.

(9) Grant recipient--A sheriff who receives a grant under this subchapter.

(10) Immigration law enforcement agreement--An agreement described in Government Code, § 753.001 and §753.051.

(11) Reporting costs--Costs related to generating and delivering reports required under the immigration law enforcement agreement.

(12) Sheriff--A person elected or appointed as the county sheriff who is responsible for carrying out the duties of the office described in Local Government Code, Chapters 85, 291 and 351.

§16.551. Application.

(a) In order to receive a grant award payment under this subchapter, an applicant must timely submit a completed application.

(b) An applicant must submit the application electronically on a website established by the comptroller for that purpose. The application must include all information the comptroller deems necessary to make an award determination, including:

(1) a copy of the immigration law enforcement agreement; and

(2) a copy of a resolution from the county commissioner's court wherein the commissioners court pledges to not reduce the amount of funds provided or appropriated to the sheriff's office in response to the sheriff's receipt of grant funds under this subchapter.

(c) A sheriff is eligible to apply for a grant if the sheriff has entered into an immigration law enforcement agreement and is eligible for the grant amount as described under Government Code, §753.103.

(d) The comptroller accepts only one application per applicant within a biennium.

(e) The sheriff must electronically sign the application and certify that all information in the application is true and correct.

§16.552. Comptroller Review.

(a) The comptroller shall review the application for completeness. The comptroller may require the applicant to submit any additional information deemed necessary to make an award determination. The applicant must submit the required information within 14 calendar days of its request by the comptroller.

(b) The comptroller may reject an application for any of the following reasons:

(1) an applicant has not timely met, to the comptroller's satisfaction, the eligibility and application requirements;

(2) an applicant failed to timely comply with the comptroller's request for information under subsection (a) of this section; or

(3) the application submitted is incomplete or does not otherwise comply with this subchapter as determined by the comptroller.

§16.553. Grant Agreement.

(a) Funding of grant agreements is contingent on the comptroller receiving sufficient legislative appropriations, without which the comptroller may be unable to execute a grant agreement. Determinations regarding grant award payment amounts will depend on the amount of funding available at the time the application is approved and could result in partial or no funding awarded.

(b) The comptroller shall notify the grant recipient of the grant award amount and provide a grant agreement for signature within 30 days of that notification.

(c) Award and funding decisions are made in the comptroller's sole discretion and are not appealable or subject to protest.

(d) A grant agreement must require the comptroller to disburse funds as soon as practicable and must require funds to be expended during the grant period. Funds subject to a binding encumbrance may be considered expended if the grant recipient is legally obligated to expend the funds under a binding contract to purchase allowable goods or services. For example, anticipated contracts, contracts under negotiation, and the earmarking or budgeting of funds for a specified purpose are not binding encumbrances.

(e) Grant award payments are subject to Government Code, §§ 403.055, 403.0551 and 753.103. The most recent federal decennial census will determine the population used for the funding tiers.

(f) The sheriff must electronically sign the grant agreement.

§16.554. Authorized uses of Grant Funds.

(a) Grant funds may only be used for the following:

(1) compensation for persons performing duties under the immigration law enforcement agreement;

(2) reporting costs, which are limited to three percent of the total grant amount;

(3) grant reporting costs, which are limited to three percent of the total grant amount;

(4) equipment and related services for peace officers and other persons related to the immigration law enforcement agreement, including the cost of repairing equipment that was not purchased using grant funds;

(5) attendance by a person at any training or other event required under the immigration law enforcement agreement;

(6) costs to the county for confining inmates under the authority granted under the immigration law enforcement agreement;

(7) overtime pay for persons employed at the sheriff's office who, during periods of training required by the immigration law enforcement agreement, perform the duties of persons obtaining that training;

(8) indirect costs, as described in the Texas Grant Management Standards, which:

(A) are limited to five percent of the total grant amount; and

(B) exclude costs for business functions of the office, including software, trainings, and licenses; and

(9) pre-award costs expended on or after the effective date of the immigration law enforcement agreement and prior to the effective date of the grant agreement.

(b) Grant funds may not be used for:

(1) reporting costs in excess of three percent of the total grant amount;

(2) grant reporting costs in excess of three percent of the total grant amount;

(3) indirect costs, as described in the Texas Grant Management Standards, in excess of five percent of the total grant amount and indirect costs for business functions of the office including software, trainings, and licenses;

(4) costs associated with participating in the immigration law enforcement agreement for which the grantee may be reimbursed by the federal government; and

(5) costs incurred prior to the effective date of the immigration law enforcement agreement.

(c) Grant funds may only be used for the state purpose of assisting sheriffs participating in immigration law enforcement agreements.

(d) For compensation for persons performing duties under the agreement as described by subsection (a)(1) of this section, the costs associated with providing compensation include:

(1) the salary amount as indicated on the county's budget submitted under section 16.555 (Reporting and Compliance) of this subchapter; and

(2) any additional compensation costs legally permissible and allowable by county policy, including overtime pay.

(e) Funds must be expended within the term of the grant agreement.

§16.555. Reporting and Compliance.

(a) A grant recipient must submit a compliance report using the comptroller's electronic form each fiscal year as required by the grant agreement. The report must certify compliance and provide detailed information on the expenditure of grant funds.

(b) The comptroller may request supporting documentation regarding expenditures and any other information required to substantiate that the grant recipient complied with the grant agreement and this subchapter. The grant recipient must submit the documentation within 14 calendar days of the request.

(c) Grant recipients must comply with:

(1) the grant agreement terms and conditions;

(2) Government Code, Chapter 753, Subchapter C requirements, as applicable; and

(3) all state and federal statutes, rules, regulations, and guidance applicable to the grant award, including this subchapter.

(d) If the comptroller finds that a grant recipient has failed to comply with any requirement described in subsection (c) of this section, the comptroller may:

(1) require the grant recipient to cure the failure to comply to the comptroller's satisfaction;

(2) require the grant recipient to return some or all of the grant;

(3) withhold funds from the current grant or future grants awarded to grant recipient until the deficiency is corrected;

(4) disallow all or part of the cost of the activity or purchase that does not comply;

(5) terminate the grant agreement in whole or in part;

(6) bar the grant recipient from future consideration for grants under this subchapter; or

(7) exercise any other legal remedies available at law.

(e) The grant recipient or an official of the county who is authorized to bind the county must electronically sign the compliance report and certify that all information in the compliance report is true and correct.

§16.556. Fiscal Year 2026.

(a) Notwithstanding anything to the contrary in this subchapter, the first application period for all applicants in Fiscal Year 2026 will consist of a thirty-day period beginning on the later of January 1, 2026 or the date the application is first made available.

(b) For grants awarded during Fiscal Year 2026, funds may be used to reimburse costs incurred on or after October 1, 2025, provided the costs were incurred on or after the effective date of the immigration law enforcement agreement. Any pre-award costs, corresponding receipts, invoices or other related information must be submitted with the application.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 11, 2026.

TRD-202601989

Victoria North

General Counsel for Fiscal and Agency Affairs

Comptroller of Public Accounts

Effective date: May 31, 2026

Proposal publication date: January 30, 2026

For further information, please call: (512) 475-2220

CHAPTER 20. STATEWIDE PROCUREMENT AND SUPPORT SERVICES

SUBCHAPTER C. PROCUREMENT METHODS AND CONTRACT FORMATION