1. (a) Eligibility.

   1. (1) Each institution as defined in §22.254 of this title (relating to Definitions) are eligible to participate in the 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 eligible institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

2. (b) Approval.

   1. (1) Agreement. Each eligible 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 be approved by April 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 probation by its accrediting agency, it must immediately advise the Board and grant recipients of this condition and maintain evidence in each student's file 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, the Board will notify the Program Officer and financial aid officer and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if the Board 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. Such reporting requirements shall 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.
   4. (4) Program Reviews. If selected for such by the Board, participating institutions must submit to program reviews of activities related to the Program.

Source Note:The provisions of this §22.255 adopted to be effective August 16, 2004, 29 TexReg 7988; amended to be effective November 28, 2005, 30 TexReg 7871; amended to be effective May 22, 2017, 42 TexReg 2722.