1. (a) Eligibility.

   1. (1) Any college or university defined as a private or independent institution of higher education by Texas Education Code, §61.003, or a branch campus of a private or independent institution of higher education located in Texas and accredited on its own or with its main campus institution by the Commission on Colleges of the Southern Association of Colleges and Schools, other than theological or religious seminaries, is eligible to participate in the TEG Program.
   2. (2) No institution may, on the grounds of race, color, national origin, gender, religion, age, or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.
   3. (3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-352) in avoiding discrimination in admissions.

   4. (4) A private or independent institution of higher education that previously qualified under paragraph (1) of this subsection but no longer holds the same accreditation as public institutions of higher education may temporarily participate in the TEG Program if it is:

      1. (A) accredited by an accreditor recognized by the Board;
      2. (B) actively working toward the same accreditation as public institutions of higher education;
      3. (C) participating in the federal financial aid program under 20 United States Code (U.S.C.) §1070a; and
      4. (D) a "part B institution" as defined by 20 U.S.C. §1061(2) and listed in 34 Code of Federal Regulations §608.2.
   5. (5) The Board may grant temporary approval to participate in the TEG program to an institution described under paragraph (4) of this subsection for a period of two years. The Board may renew that approval for a given institution once for a period of two years.

2. (b) Approval.

   1. (1) Agreement. Each approved institution must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner.
   2. (2) Approval Deadline. An institution must enter into an agreement with the Board and indicate an intent to participate in the program by February 1 in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal year.

3. (c) Responsibilities.

   1. (1) Probation Notice. If the institution is placed on public probation by its accrediting agency, it must immediately notify Board staff and advise grant recipients of this condition and maintain evidence to demonstrate that the student was so informed.

   2. (2) Disbursements to Students.

      1. (A) Documentation. The institution must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student's school account.
      2. (B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that an institution has disbursed funds for unauthorized purposes, Board staff will notify the institution and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if Board staff determines that funds have been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of grants or scholarships shall be permitted to students at that institution until the funds have been repaid.

   3. (3) Reporting Requirements/Deadlines. All institutions must meet Board reporting requirements in a timely fashion.

      1. (A) Such reporting requirements shall include but are not limited to reports specific to allocation and reallocation of grant funds (including the TEG Need Survey, the TEG year-end student-by-student report, the Coordinating Board's Education Data Center CBM001 and CBM009 reports, and the Financial Aid Database Report) as well as progress reports of program activities.
      2. (B) Each participating institution shall have its TEG Program operations audited on an annual basis by an independent auditor or by an internal audit office that is independent of the financial aid and disbursing offices. Reports on findings and corrective action plans (if necessary) are due to the Board by April 15 each year.
   4. (4) Program Reviews. If selected for such by Board staff, participating institutions must submit to program reviews of activities related to the TEG Program.

Source Note:The provisions of this §22.23 adopted to be effective November 29, 2010, 35 TexReg 10503; amended to be effective November 20, 2013, 38 TexReg 8199; amended to be effective March 4, 2015, 40 TexReg 925; amended to be effective May 22, 2017, 42 TexReg 2721.