(a) If, after all reasonable attempts to assure grant compliance have failed, and the department finds that a sponsor is unwilling or unable to comply with any of the terms and conditions of the intergovernmental agreement, the division will:
  (1) require a pro rata refund of money issued with a grant or loan to the sponsor or immediate payment of any outstanding loan made to the sponsor by the commission;
  (2) deny sponsor's future requests for state aid; or
  (3) request the attorney general to bring suit seeking reimbursement of amounts paid or loaned to the sponsor by the state pursuant to the grant or loan agreement.
(b) To insure that a sponsor is in compliance with the terms and provisions of a grant or loan agreement, the staff will make periodic inspections at the project site and shall immediately report to the sponsor any noncompliance with or violation of the terms and provisions of the grant contract or loan agreement.

Source Note: The provisions of this §30.218 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.