(a) A recipient shall:

1. (1) Advise its employees of their responsibilities under the LSC requirements;
2. (2) Establish procedures, consistent with the notice and hearing requirements of section 1011 of the LSC Act, for determining whether an employee has committed a violation and whether the violation merits a sanction based on consideration of the totality of the circumstances; and

3. (3) Establish a policy for determining the appropriate sanction to be imposed for a violation, including:

   1. (i) Administrative reprimand if a violation is found to be minor and unintentional, or otherwise affected by mitigating circumstances;
   2. (ii) Suspension and termination of employment; and
   3. (iii) Other sanctions appropriate for enforcement of the LSC requirements.