1. (a) Except as addressed by a NOFA, to be eligible to receive a grant award, a grant applicant must engage in business in the state of Texas by:

   1. (1) maintaining employees in the state of Texas; or
   2. (2) having a fixed place of business in the state of Texas.
2. (b) Grant applicants responding to a NOFA may be located outside the state of Texas when the grant application is submitted and reviewed; however, the grant applicant must demonstrate that it engages in business in the state of Texas as a condition of the grant award.
3. (c) A grant recipient's failure to engage in business in the state of Texas is a violation of these rules for the purpose of §16.218 of this subchapter.

Source Note:The provisions of this §16.205 adopted to be effective July 10, 2023, 48 TexReg 3700; amended to be effective April 8, 2026, 51 TexReg 2254.