1. (a) To be eligible to receive a grant, an applicant must engage in business in the state of Texas by:

   1. (1) maintaining employees in the state of Texas;
   2. (2) having a fixed place of business in the state of Texas; or
   3. (3) providing any service in the state of Texas, whether or not the individuals performing the service are residents of the state.
2. (b) Applicants may be located outside the state of Texas when the application is submitted and reviewed; however, the applicant must demonstrate that it engages in business in the state of Texas as a condition of the award of grant funds.
3. (c) A grant recipient's failure to engage in business in the state of Texas is in violation of these rules for the purpose of §321.15 of this chapter (relating to Noncompliance; Failure to Perform).

Source Note:The provisions of this §321.7 adopted to be effective December 8, 2024, 49 TexReg 9957.