1. (a) Allocations. Each institution's share of funds will equal the sum of:

   1. (1) Renewal Allocation: the institution's number of Initial Year (IY) TEXAS Grant recipients in the prior-prior year, multiplied by the most recent 3-year rolling average of its Renewal Year (RY) recipients as a percent of its previous year IY recipients, multiplied by the target award amount; plus

   2. (2) Initial Allocation: the annual appropriation less the sum of all institutions' funds calculated in accordance with paragraph (1) of this subsection, multiplied by each institution's percentage share of:

      1. (A) entering students in the prior academic year who met the following criteria:

         1. (i) were identified as Texas residents; and
         2. (ii) enrolled at least 3/4-time; and
         3. (iii) have 9-month Expected Family Contributions that are less than or equal to the cap established for the academic year for which the funds will be awarded; plus

      2. (B) first-time grant recipients in the prior year who received IY TEXAS Grant awards based on:

         1. (i) enrollment in an upper level institution within 12 months of the receipt of an associate's degree; or
         2. (ii) enrollment in an upper level institution after receiving an Initial Year award through the Texas Educational Opportunity Grant (TEOG) Program in fall 2014 or later.
   3. (3) The TEXAS Grant allocation spreadsheet will be provided to the institutions for review and the institutions will be given 10 working days, beginning the day of the notice's distribution and excluding State holidays, to confirm that the spreadsheet accurately reflects the data they submitted or to advise Board staff of any inaccuracies.
2. (b) Reallocations. Institutions will have until February 20 or the first working day thereafter if it falls on a weekend or holiday to encumber the program funds that have been allocated to them. On that date, institutions lose claim to any funds not yet drawn down from the Board for immediate disbursement to students, and the funds released in this manner are available to the Board for reallocation to other institutions. Reallocated funds will be distributed among institutions requesting funds using the same basis as was used for the allocation of funds, but no institution will receive more funds than it requested. If necessary for ensuring the full use of funds, subsequent reallocations may be scheduled until all funds are awarded and disbursed.
3. (c) Disbursement of Funds to Institutions. As requested by institutions throughout the academic year, the Board shall forward to each participating institution a portion of its initial and renewal year allocations of funds for immediate release to students or immediate application to student accounts at the institution.
4. (d) Release of Funds to Students. The institution may release all or part of the proceeds of a TEXAS Grant to an eligible person only if the tuition and required fees incurred by the person at the institution have been paid.

Source Note:The provisions of this §22.236 adopted to be effective November 28, 2005, 30 TexReg 7870; amended to be effective May 21, 2008, 33 TexReg 3952; amended to be effective February 26, 2013, 38 TexReg 1161; amended to be effective February 26, 2014, 39 TexReg 1143; amended to be effective November 26, 2014, 39 TexReg 9204.