| (a) Eligibility. Each institution as defined in §22.571(3)
of this title (relating to Definitions) may be eligible to participate
in the program, if it meets the criteria in subsection (b) or (c)
of this section.
(b) Initial Participation. To qualify as an eligible
institution and participate in the T-STEM Program, the institution
must:
(1) Enroll a minimum of 50 students into T-STEM programs,
as defined in §22.571(8) of this title, in each academic year;
and
(2) Develop partnerships with business and industry
that:
(A) identify and document local employment needs in
the STEM fields; and
(B) provide part-time employment for students enrolled
in a STEM field.
(c) Continuing Participation. An otherwise eligible
institution may continue participation in the T-STEM Program, if,
beginning with the third academic year of participation, the institution
documents to the Board that each year, within twelve months of receipt
of a scholarship, at least 70 percent of its T-STEM Challenge Scholarship
recipients:
(1) are employed, or
(2) are enrolled in courses leading to a certificate,
associate, or baccalaureate degree in a STEM field.
(d) 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.
(e) Each eligible institution must follow the Civil
Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination
in admissions.
(f) Approval.
(1) Agreement. Each eligible 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 be approved
in the spring in order for qualified students enrolled in that institution
to be eligible to receive grants in the fall of the next fiscal year.
(g) Responsibilities.
(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) 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, 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) Reporting and Refunds.
(A) 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.
(B) Penalties for Late Reports or Refunds.
(i) 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 Commissioner may assess more severe penalties
against an institution if any report is received by the Board more
than one month after its due date.
(ii) 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.
(iii) The maximum penalty for a single year is 30 percent
of the institution's grant.
(C) Appeal of Penalty. If the Commissioner determines
that a penalty is appropriate, the institution will be notified by
certified mail, addressed to the Program Officer with a copy sent
to the financial aid officer. 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 the Board,
participating institutions must submit to program reviews of activities
related to the Program.
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