| (a) If the office has reason to believe that a grantee
has violated any term or condition of a reimbursement award or any
applicable laws, rules, regulations, or guidance relating to the reimbursement
award, the office shall provide written notice of the allegations
to the grantee and provide the grantee with an opportunity to respond
to the allegations.
(b) If the office finds on substantial evidence that
a grantee has materially violated the requirements of Government Code,
§403.503, with respect to reimbursements or portions of reimbursements,
the office may direct the grantee to refund the reimbursement or a
portion of the reimbursement with interest at the applicable federal
funds rate as specified by Business and Commerce Code, §4A.506(b).
(c) If the office finds that a grantee has failed to
comply with any term or condition of a reimbursement award, or any
applicable laws, rules, regulations, or guidance relating to the reimbursement
award, other than the requirements described in subsection (b) of
this section, the office may:
(1) direct the grantee to refund the reimbursement
award or a portion of the reimbursement award;
(2) withhold reimbursement award amounts to a grantee
under this subchapter pending correction of the deficiency;
(3) disallow all or part of the cost of the activity
or action that is not in compliance;
(4) terminate the reimbursement award in whole or in
part;
(5) prohibit the grantee from being eligible for future
reimbursement awards under the pole replacement program; or
(6) exercise any other legal remedies available at
law.
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