(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.

Source Note: The provisions of this §9.133 adopted to be effective March 17, 2021, 46 TexReg 1660