(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.       
     Source Note:        The provisions of this §16.12 adopted to be effective March 17, 2022, 47 TexReg 1294