(a) If after the award of a grant the department determines
that the grantee has failed to comply with federal or state law, a
grant condition, or the grant agreement, the department may:
(1) temporarily withhold cash payments pending correction
of the deficiency by the grantee;
(2) disallow the cost of the activity or action that
is not in compliance and take action for the repayment of those disallowed
costs;
(3) require one or more of the additional conditions
described in §9.132 of this subchapter (relating to Additional
Award Conditions).
(b) If the department determines that the grantee's
noncompliance cannot be remedied by actions under subsection (a) of
this section, the department may take one or more actions under this
subsection. The department may:
(1) wholly or partly suspend or terminate the award;
(2) initiate proceedings under Chapter 10, Subchapter
F of this title (relating to Sanctions and Suspension for Ethical
Violations by Entities Doing Business with the Department), for the
suspension or debarment of the grantee;
(3) withhold other federal awards for the project or
program; or
(4) take any other remedy that is legally available
to the department.
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