(a) A grant from the professional nursing shortage reduction program to a professional nursing program or other entity involved with a professional nursing program in the preparation of students for initial licensure as registered nurses must be:
(1) expended exclusively on costs related to:
(A) enrolling additional students;
(B) nursing faculty enhancement in accordance with § 61.96231;
(C) encouraging innovation in the recruitment and retention of students, including the recruitment and retention of Spanish-speaking and bilingual students; or
(D) identifying, developing, or implementing innovative methods to make the most effective use of limited professional nursing program faculty, instructional or clinical space, and other resources, including:
(i) sharing curriculum and administrative or instructional personnel, facilities, and responsibilities between two or more professional nursing programs located in the same region of this state; and
(ii) using preceptors or part-time faculty to provide clinical instruction in order to address the need for qualified faculty to accommodate increased student enrollment in the professional nursing program;
(2) contingent on the professional nursing program’s having been approved as a professional nursing program by the board or the Texas Board of Nursing, as appropriate;
(3) contingent on the professional nursing program’s not being on probation with the Texas Board of Nursing or other accrediting body; and
(4) if granted to increase enrollments, contingent on the professional nursing program’s ability to enroll additional students, including having the necessary classroom space and clinical slots.
(b) Funds not expended on the costs described by Subsection (a)(1) shall be returned to the board.