1. (a) A recipient shall begin to expend funds within 6 months of the effective date of the grant agreement, original loan agreement, or initial loan documents, as applicable.
2. (b) If a recipient fails to comply with (a), above, the department shall request the recipient to show cause why the loan or grant should not be cancelled.

3. (c) The department’s request shall:

   1. (1) Be in writing;
   2. (2) Specify a date by which the recipient shall respond to the request, which shall be not less than 20 working days from the date of the notice; and
   3. (3) Inform the recipient that the recipient may request an adjudicative hearing prior to the loan being cancelled.

4. (d) If the recipient wishes to have an adjudicative hearing, the recipient shall:

   1. (1) Respond in writing to the request sent by the department pursuant to (b), above; and
   2. (2) Include a request for a hearing in the response.
5. (e) If the recipient requests an adjudicative hearing and a settlement is not reached, the hearing shall be conducted in accordance with the provisions of Env-C 200 that apply to such hearings.

Source. #13164, eff 1-26-21; ss by #13289, INTERIM, eff 10-30-21, EXPIRES: 4-28-22 (formerly Env-Dw 1405.07); ss by #13372, eff 4-21-22