SECTION 62.509. Sanctions

(a) Reimbursement for grant-related expenses is contingent upon a grantee's strict compliance with these rules, related requirements, and OAG procedures. Any failure to comply may result in the imposition of temporary or permanent sanctions or both.

(b) Sanctions may include:

(1) Placing a grantee on financial hold;

(2) Requiring repayment of grant funds;

(3) Transferring the administration of a grant project to another entity;

(4) Termination of a grant;

(5) Ineligibility for future funding from the OAG;

(6) Any other sanction or corrective action that the OAG deems necessary.

(c) The OAG will notify a grantee if grounds for sanctions exist.

(d) If the grantee receives notice of grounds for sanctions and subsequently provides satisfactory evidence that the deficient condition has been corrected, the OAG may release funds.

(e) If the grantee fails to correct the deficient condition, in the time and manner as indicated by the OAG, and the grant is terminated, the OAG may require the grantee to return any equipment purchased with grant funds, and all unexpended or unobligated funds awarded to a grantee will revert to the OAG.

(f) A grantee may request a review of the sanctions imposed, as described below:

(1) The grantee must make a written request for reconsideration no later than 10 days after the receipt of an OAG notice of sanctions.

(2) A grantee should submit any documentation necessary to support the reconsideration.

(3) The OAG will send the final determination to the grantee in writing.

(4) The OAG decision concerning sanctions is final.

Source Note: The provisions of this §62.509 adopted to be effective September 5, 2013, 38 TexReg 5700; amended to be effective June 10, 2019, 44 TexReg 2835