(1) Any college or university defined as a private
or independent institution of higher education by Texas Education
Code, §61.003, or that is located in Texas and accredited by
the Commission on Colleges of the Southern Association of Colleges
and Schools, except theological or religious seminaries, is eligible
to participate in the TEG Program.
(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) Each participating institution must follow the
Civil Rights Act of 1964, Title VI (Public Law 88-352) in avoiding
discrimination in admissions.
(4) A private or independent institution of higher
education that previously qualified under paragraph (1) of this subsection
but no longer holds the same accreditation as public institutions
of higher education may temporarily participate in the TEG Program
if it is:
(A) accredited by an accreditor recognized by the Board;
(B) actively working toward the same accreditation
as public institutions of higher education;
(C) participating in the federal financial aid program
under 20 United States Code (U.S.C.) §1070a; and
(D) a "part B institution" as defined by 20 U.S.C. §1061(2)
and listed in 34 Code of Federal Regulations §608.2.
(5) The Board may grant temporary approval to participate
in the TEG program to an institution described under paragraph (4)
of this subsection for a period of two years. The Board may renew
that approval for a given institution once for a period of two years.
(1) Agreement. Each approved institution must enter
into an agreement with the Board, the terms of which shall be prescribed
by the Commissioner.
(2) Approval Deadline. An institution must enter into
an agreement with the Board and indicate an intent to participate
in the program by February 1 in order for qualified students enrolled
in that institution to be eligible to receive grants in the following
(1) Probation Notice. If the institution is placed
on public probation by its accrediting agency, it must immediately
notify Board staff and advise grant recipients of this condition and
maintain evidence in each student's file to demonstrate that the student
was so informed.
(2) Disbursements to Students.
(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.
(B) Procedures in Case of Illegal Disbursements. If
the Commissioner has reason for concern that an institution has disbursed
funds for unauthorized purposes, Board staff will notify the institution
and offer an opportunity for a hearing pursuant to the procedures
outlined in Chapter 1 of this title (relating to Agency Administration).
Thereafter, if Board staff 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.
(A) Requirements/Deadlines. All institutions must meet
Board reporting requirements in a timely fashion.
(i) Such reporting requirements shall include but are
not limited to reports specific to allocation and reallocation of
grant funds (including the TEG Need Survey, the TEG year-end student-by-student
report, the Coordinating Board's Education Data Center CBM001 and
CBM009 reports, and the Financial Aid Database Report) as well as
progress and year-end reports of program activities.
(ii) Each participating institution shall have its
TEG Program operations audited on an annual basis by an independent
auditor or by an internal audit office that is independent of the
financial aid and disbursing offices. Reports on findings and corrective
action plans (if necessary) are due to the Board by April 15 each
(B) Penalties for Late Reports and/or Late Refunds.
(i) An institution that postmarks or electronically
submits a progress report a week or more after its due date will be
ineligible to receive additional funding through the reallocation
occurring at that time.
(ii) The Commissioner may penalize an institution by
reducing its allocation of funds in the following year by up to 10
percent for each report that is postmarked or submitted electronically
more than a week late. The penalty may also be invoked if the report
is timely, but refunds owed to the Program by the institution are
not made to the Board or the Comptroller of Public Accounts' Office
within one week after due.
(iii) The Commissioner may assess more severe penalties
against an institution if any report or refund is received by the
Board more than one month after its due date. The Commissioner may
penalize an institution by reducing its allocation of funds in the
following year by up to 10 percent for each late refund of grant funds.
If grant funds are returned more than a week after the announced return
date, they will be considered late.
(iv) The maximum penalty for a single year is 30 percent
of the school's allocation. If penalties are invoked in two consecutive
years, the institution may be penalized an additional 20 percent.
(C) Appeal of Penalty. If the Commissioner determines
that a penalty is appropriate, the institution will be notified by
certified mail, addressed to the Chief Executive Officer and copied
to the Program Officer and/or Financial Aid Director. Within 21 days
from the time that the Program Officer receives the written notice,
the institution must submit a written response appealing the Commissioner's
decision, or the penalty shall become final and no longer subject
to an appeal. An appeal under this section will be conducted in accordance
with the rules provided in Chapter 1 of this title.
(4) Program Reviews. If selected for such by Board
staff, participating institutions must submit to program reviews of
activities related to the TEG Program.