1. (a) If the agency determines by audit or other method that the participant no longer complies with the requirements of this chapter or the Texas Natural Resources Code, Chapter 61, Subchapter C, it shall notify the participant that further payment will not be made until the agency is satisfied that there is no longer any failure to comply. The agency may withhold funds and require reimbursement to be made for funds claimed and received in violation of this chapter or the Texas Natural Resources Code, Chapter 61, Subchapter C.

2. (b) The notice required by subsection (a) of this section must be given:

   1. (1) to the acting head of the participant that is not in compliance with this chapter or the Texas Natural Resources Code, Chapter 61, Subchapter C;
   2. (2) to the official with responsibility for the project as indicated by the participant's application; and
   3. (3) to the official authorized to receive state reimbursement as indicated by the participant's application.

3. (c) The notice required by subsection (a) of this section shall be by hand delivery, overnight courier, or by registered or certified mail, return receipt requested, and shall include notice of:

   1. (1) the act or omission that has rendered the participant in violation of this chapter or the Texas Natural Resources Code, Chapter 61, Subchapter C;
   2. (2) the action required of the participant in order for the participant to be in compliance with this chapter or the Texas Natural Resources Code, Chapter 61, Subchapter C;
   3. (3) the amount, if any, required to be reimbursed for funds claimed and received in violation of this chapter and the Texas Natural Resources Code, Chapter 61, Subchapter C; and
   4. (4) the participant's right to submit, not later than the 30th day after the date on which notice is served, written request for a hearing on the matter.

Source Note:The provisions of this §25.21 adopted to be effective April 14, 1992, 17 TexReg 2241.