1. (a) Eligible institutions include institutions of higher education and private or independent institutions of higher education as defined in Chapter 61.003 of the Texas Education Code which meet the requirements outlined in Chapter 22, Subchapter A, Section 22.4 of this title (relating to Approved Institutions) for grant and scholarship programs as well as the reporting requirements outlined below.

2. (b) Reporting.

   1. (1) Requirements/Deadlines. All institutions participating in the TEXAS Grant Program must meet board reporting requirements in a timely fashion. Such reporting requirements may include reports specific to allocation and reallocation of grant funds (including the Financial Aid Database Report), as well as progress and year-end reports of program activities.
   2. (2) Penalties. If a progress report is postmarked up to a week late, the institution will be ineligible to receive additional funding through the reallocation occurring at that time. For each progress report postmarked more than a week late, the institution will be penalized 5% of its allocation of funds for initial awards in the following year. If the year-end report is postmarked up to a week late, the institution will be penalized 5% of its allocation of funds for initial awards in the following year. If it is postmarked more than a week late, the institution will be penalized 10% of its allocation for initial awards in the following year. More severe penalties can be assessed if any report is received by the board more than one month after its due date. The maximum penalty for a single year is 30% of the school's initial fund allocation. If penalties are invoked two years in a row, the institution may be penalized an additional 20%.
   3. (3) Appeals. When the board determines a penalty is appropriate, it will first contact the Program Officer by telephone or e-mail and then follow up with a written notification, sent through certified mail. The Program Officer will have three weeks from the time he or she receives the written notice to submit a written response and appeal the board's decision.

Source Note:The provisions of this §22.227 adopted to be effective December 28, 1999, 24 TexReg 11751.