1. (a) Allocations for Fiscal Year 2016. 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) Allocations for Fiscal Year 2017 and Later.

   1. (1) The share of funds for each institution eligible to make both initial and continuation awards will equal:

      1. (A) The number of Initial Award TEXAS Grant recipients at the institution in the Prior-Prior Year multiplied by the percentage of Initial Award TEXAS Grant recipients in the year prior to the Prior-Prior Year who received a Renewal Award in the Prior-Prior Year; plus the number of Renewal Award TEXAS Grant recipients at the institution in the Prior-Prior Year multiplied by the percentage of Renewal Award TEXAS Grant recipients in the year prior to the Prior-Prior Year who received a Renewal Award in the Prior-Prior Year, multiplied by the institution's average TEXAS Grant award in the Prior-Prior Year, up to the amount of the Target Award for the fiscal year for which allocations are occurring, plus

      2. (B) The institution's proportions of the remaining appropriation is based on the sum of the number of students who were reported as a first time enrolling freshman; or an entering undergraduate transfer student who completed an associate's degree within the prior 12 months to enrolling; or an entering undergraduate transfer student who received an Initial TEOG award for the Fall 2014 semester or later, has completed at least 24 semester credit hours, and has earned an overall GPA of at least 2.5 on a four-point scale on all course work previously attempted; and

         1. (i) were enrolled as undergraduate students and had not yet received a Bachelor's degree;
         2. (ii) were identified as Texas residents;
         3. (iii) were enrolled at least 3/4-time;
         4. (iv) filed a FAFSA or TASFA; and
         5. (v) had a 9-month Expected Family Contribution that was less than or equal to the cap established for TEXAS Grant in the Prior-Prior Year.
   2. (2) No institution's annual allocations will be reduced by more than 7.5 percent of the prior year's annual allocation not including any reallocations that occurred in that prior year. This provision will apply to FY2017 and FY2018 allocations after which it will expire. Provisions of this subsection do not apply to allocation reductions resulting from reductions in state appropriations.
   3. (3) Institutions who are only eligible to make continuation awards will not receive a specific allocation. Those schools will have until February 20, or the first working day thereafter if it falls on a weekend or holiday, to submit for reimbursement any award for a student who is identified as eligible and is awarded a TEXAS Grant. Those awards will be funded through any unencumbered program funds.
   4. (4) 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.
3. (c) 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.
4. (d) 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 annual allocations of funds for immediate release to students or immediate application to student accounts at the institution.
5. (e) 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; amended to be effective June 6, 2016, 41 TexReg 4006.