The Oversight Committee must vote to approve each Grant Award recommendation submitted by the Program Integration Committee.

1. (1) Prior to the Oversight Committee's consideration and approval of the Program Integration Committee's Grant Award recommendations, the Chief Compliance Officer must review the process documentation for each Grant Application recommended for a Grant Award by the Program Integration Committee and report the findings to the Chief Executive Officer and to the Oversight Committee. The Chief Compliance Officer's report shall:

   1. (A) Publicly certify that the Grant Review Process complied with the Institute's administrative rules and procedures, including those procedures stated in the Request for Applications.
   2. (B) Indicate variances, if any, in the Grant Review Process.
   3. (C) Compare the list of Grant Applicants recommended for a Grant Award to a list of donors from any nonprofit organization established to provide support to the Institute.
2. (2) The Chief Executive Officer may recommend corrective actions to address variances, if any, identified by the Chief Compliance Officer. The Oversight Committee shall consider and may approve proposed corrective actions at that time that the Grant Award recommendations are approved by a vote of a simple majority of Oversight Committee members present and voting.

3. (3) Two-thirds of the Oversight Committee Members present and voting must approve each Grant Award recommendation. At the time that the Oversight Committee approves the Grant Award recommendation:

   1. (A) The total amount of money approved to fund a multiyear project must be specified.
   2. (B) The Chief Executive Officer's recommendation, if any, regarding an advance of Grant Award funds must be approved by a majority vote of the Oversight Committee.
4. (4) If the Oversight Committee does not approve a Grant Award recommendation made by the Program Integration Committee, the minutes of the meeting shall record the explanation for the failure to follow the Grant Award recommendation.
5. (5) The Oversight Committee may not award more than $300 million in Grant Awards in a fiscal year.
6. (6) No Oversight Committee action is necessary related to the Program Integration Committee's decision made pursuant to §703.7 to defer a final Grant Award recommendation for one or more Grant Applications.

7. (7) Nothing herein prevents the Oversight Committee from voting to defer a final decision on a Grant Award recommendation made by the Program Integration Committee until a future meeting date pursuant to the following process:

   1. (A) The motion to defer a final decision on a Grant Award recommendation must be made by an Oversight Committee member that is not recused from taking action on the Grant Application;
   2. (B) The motion must be approved by two-thirds of the Oversight Committee Members present and voting;
   3. (C) The reason for deferring a final decision on one or more Grant Award recommendations must be recorded in the minutes of the Oversight Committee meeting;
   4. (D) Applications that have been deferred shall be considered by the Program Integration Committee at a future meeting date pursuant to §703.7;
   5. (E) The decision to defer the final Grant Award recommendation is only effective for the state fiscal year in which the deferral decision is made;
   6. (F) A Grant Application that is deferred and pending a final Grant Award recommendation at the end of the state fiscal year shall be considered not recommended for a Grant Award without further action from the Program Integration Committee or the Oversight Committee; and
   7. (G) A Grant Application that is deferred and pending a final Grant Award recommendation at the end of the state fiscal year may be resubmitted by the Grant Applicant in a subsequent review cycle. Such resubmission will not count against the resubmission limit, if any, stated in the Request for Applications.

Source Note:The provisions of this §703.8 adopted to be effective December 21, 2009, 34 TexReg 9213; amended to be effective March 2, 2014, 39 TexReg 1386; amended to be effective September 17, 2014, 39 TexReg 7342; amended to be effective September 9, 2015, 40 TexReg 5792.