1. (a) Agreement. Each approved institution must enter into an agreement with the board, the terms of which shall be prescribed by the commissioner.
2. (b) Prior Approval. An institution must be approved by April 1 in order for qualified students enrolled in that institution to be eligible to receive grants or scholarships in the following fiscal year.
3. (c) Accreditation. Approved institutions shall file with the commissioner a copy of the most recent formal notification of accreditation by the Southern Association of Colleges and Schools. Nonprofit, independent professional schools which award bachelor's or other higher degrees, and which are not members of Southern Association of Colleges and Schools, may petition the board for consideration of approval. If the institution is placed on public probation by its accrediting agency, students applying for grants or scholarships through a program described in this chapter shall provide evidence of knowledge of the school's accreditation status as a condition to receiving the grant.
4. (d) Discrimination. In making awards no person shall, on the grounds of race, color, national origin, gender, religion, age or disability be excluded from participation in, be denied the benefits of, or be subject to discrimination under any provisions of the programs described in this chapter. In Admissions each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.
5. (e) Disbursements. Each disbursement of grant or scholarship funds must be documented. The institution must maintain records which will enable it to prove the receipt of funds by the student or the crediting of funds to the student's school account. For illegal disbursements, if a question arises in regard to disbursement of funds for purposes for which such funds are legally unavailable, the affected institution shall be given notice and opportunity for hearing. Following such notice and opportunity for hearing, if the commissioner determines that funds have been improperly disbursed and if such diversions have not been restored, no further disbursements of grants or scholarships shall be permitted to students at that institution until there is no longer any failure of compliance.
6. (f) Reporting Requirements. All institutions participating in one or more of the programs described in this chapter must meet board reporting requirements in a timely fashion. Failure to meet reporting requirements may result in decreased allotments of funds or exclusion from the grant and scholarship programs described in this chapter.
7. (g) Program Review Requirements. Any institution whose students receive funds through a grant or scholarship program described in this chapter is subject to a program review.

Source Note:The provisions of this §22.4 adopted to be effective September 8, 1997, 22 TexReg 8541.