1. (a) A grant recipient must submit an annual compliance report certifying compliance and detailing expenditures using the comptroller's electronic form. The grant recipient must provide evidence of continued ground ambulance services in its compliance report, including any changes to their qualified rural ambulance service provider.
2. (b) The comptroller may require supporting documentation regarding expenditures and any other information required to substantiate that grant funds are being used for the intended purpose and that the grant recipient complied with the grant agreement and this subchapter. The grant recipient must submit the documentation within 14 calendar days of the request. The authorized official is responsible for providing the required documentation.

3. (c) Grant recipients must comply with:

   1. (1) the grant agreement terms and conditions;
   2. (2) Local Government Code, §130.914 requirements; and
   3. (3) all state or federal statutes, rules, regulations, or guidance applicable to the grant, including this subchapter.

4. (d) If the comptroller finds that a grant recipient failed to comply with any requirement described in subsection (c) of this section, the comptroller may:

   1. (1) require the grant recipient to cure the failure to comply to the comptroller's satisfaction;
   2. (2) require the grant recipient to return some or all of the grant;
   3. (3) withhold funds from the current grant or future grants awarded to the recipient until the deficiency is corrected;
   4. (4) disallow all or part of the cost of the purchase that does not comply;
   5. (5) terminate the grant agreement in whole or in part;
   6. (6) bar the grant recipient from future consideration for grants under this subchapter; or
   7. (7) exercise any other legal remedies available at law.
5. (e) An official of the grant recipient who is authorized to bind the grant recipient must electronically sign the compliance report and must certify that all information in the compliance report is true and correct.

Source Note:The provisions of this §16.505 adopted to be effective March 18, 2026, 51 TexReg 1715.