1. (a) Authority. Authority for this section is provided in the Texas Education Code, §54.331, Students from Other Nations of the American Hemisphere, more commonly known as the Good Neighbor Program.

2. (b) Definitions. In addition to the words and terms defined in §13.460 of this subchapter (relating to Definitions), the following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

   1. (1) Bona Fide Native-born Citizen of an Eligible Country--A person who is a citizen of an eligible country and who was:

      1. (A) Born in that country; or
      2. (B) Born abroad, provided that at least one of the person's parents was a citizen of the eligible country and not permanently residing in a foreign country at the time of birth.
   2. (2) Bona Fide Resident of an Eligible Country--A person who is a citizen of an eligible country, maintains that country as the person's place of home residence, and who intends to return to that country to live immediately after finishing the educational program for which the person is seeking an exemption under this section.
   3. (3) Eligible Country--A politically independent nation, other than Cuba or the United States, located in the Western or American hemisphere.
3. (c) Eligible Institutions. Institutions of higher education, as defined by §13.1 of this chapter (relating to Definitions) are eligible to participate in the Good Neighbor Program.
4. (d) Program Officer. Each participating institution shall name the principal international student advisor or another appropriate person to serve as the Good Neighbor Program Officer. The Program Officer shall certify all scholarship applications and activities with respect to the Good Neighbor Program and shall be responsible for all related records and reports.

5. (e) To be eligible for an exemption under this section, a student must:

   1. (1) be enrolled at a participating institution;
   2. (2) be a bona fide native-born citizen and resident of an eligible country, as the terms are defined in subsection (b) of this section;
   3. (3) have resided in the Western (American) Hemisphere for a period of at least five years;
   4. (4) demonstrate that he or she meets the basic admissions requirements of the nominating institution;
   5. (5) not be a member of the Communist Party;
   6. (6) be recommended for an exemption under this section by the student's institution;
   7. (7) meet applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration);
   8. (8) meet the satisfactory academic progress requirements described by §13.463 of this subchapter (relating to Satisfactory Academic Progress) unless granted a hardship waiver by the institution in accordance with §13.464 of this subchapter (relating to Hardship Provisions).

6. (f) Selection Procedures.

   1. (1) Nomination Deadline. Each year, eligible institutions may recommend students to receive exemptions under this program by submitting nominations to the Coordinating Board. Nominations for the upcoming fiscal year must be submitted to the Coordinating Board no later than March 15.
   2. (2) Prioritization. An institution shall assign priority numbers to the students it is nominating for an exemption. The Coordinating Board shall accommodate institutional priorities to the extent allowable under this subsection.
   3. (3) Designated Country. Based on all nominations submitted prior to the deadline, the Coordinating Board will identify a designated country. The designated country will be the Latin American country other than Mexico, as identified by the U.S. Department of State, that received the most nominations for the program for the upcoming fiscal year.
   4. (4) Nomination Review Order. The Coordinating Board will review all nominations assigned as institutions' highest priority students under paragraph (2) of this subsection, then moving to the second highest priority, and so on. Within each priority grouping, the Coordinating Board will review nominations in the order they were submitted to the Coordinating Board.
   5. (5) Allotment Limit. The total number of recipients each year, across all participating institutions, shall not exceed 235. Up to 10 eligible students from each eligible country may be selected, except as provided by paragraphs (7) and (8) of this subsection.

   6. (6) The Coordinating Board will review nominations in the order described by paragraph (4) of this subsection until:

      1. (A) Each eligible country has reached its allotment limit of recipients described by paragraph (5) of this subsection or has no more remaining nominated students; or
      2. (B) 235 total recipients have been selected.

   7. (7) If the review of nominations described by paragraph (6) of this subsection concluded with fewer than 235 total recipients selected, then nominations from the designated country described by paragraph (3) of this subsection will be reviewed in the order in the same review order until:

      1. (A) an additional 35 recipients from the designated country are selected;
      2. (B) the total remaining nominations from the designated country are reviewed; or
      3. (C) 235 total recipients have been selected.

   8. (8) If the review of nominations described by paragraph (7) of this subsection concluded with fewer than 235 total recipients selected, then review of the nominations will continue in the order described by paragraph (4) of this subsection.

      1. (A) In such a case, the first eligible student nominated from each eligible country with remaining nominations will be selected until all eligible countries with remaining nominations have one additional recipient. The process then repeats for an additional student from each eligible country with remaining nominations, and so on.

      2. (B) The process described by subparagraph (A) of this paragraph continues until:

         1. (i) All nominations have been reviewed; or
         2. (ii) 235 total recipients have been selected.
   9. (9) If an institution notifies the Coordinating Board by October 15 of a selected student's failure to use the offered exemption, the Coordinating Board will select the next nomination through the process described in this subsection, prioritizing nominations from the applicable eligible country. Exemptions cancelled after October 15 will not be re-offered.
   10. (10) Under no circumstances shall any special consideration be given to applicants who are related to employees of the Coordinating Board.
7. (g) Exemption Amount. Subject to §13.465 of this subchapter (relating to Restrictions on Exemptions and Waivers), students selected to receive exemptions through the Good Neighbor Program may be exempted from the payment of tuition for the 12-month period beginning with the fall semester following the students' selection as recipients.

Source Note:The provisions of this §13.471 adopted to be effective November 13, 2025, 50 TexReg 7253.