1. (a) Level-One Sanction. The Agency may impose a level-one sanction on a Board, AEL grant recipient, or Agency grantee for sanctionable acts. Sanctionable acts that occur during the program, grant, fiscal, contract, or calendar year include, but are not limited to, the following:

   1. (1) failure to submit timely and accurate required financial or performance reports;
   2. (2) failure to take corrective actions to resolve findings identified during monitoring, investigative, or program reviews, including failure to comply with a technical assistance plan developed by the Agency;
   3. (3) failure to rectify or resolve all independent audit findings or questioned costs within required time frames;
   4. (4) failure to submit required annual audits;
   5. (5) breach of administrative and service contract requirements;
   6. (6) failure to retain required service delivery and financial records; or
   7. (7) failure to meet the target on any contracted performance measure by more than 10 percent of target.

2. (b) Level-Two Sanction. The Agency may impose a level-two sanction on a Board, AEL grant recipient, or Agency grantee for sanctionable acts. Sanctionable acts that occur during the program, grant, fiscal, contract, or calendar year include, but are not limited to, the following:

   1. (1) failure to rectify a level-one sanction within six months of notice;
   2. (2) committing a second sanctionable act;
   3. (3) failure to rectify reported threats to health and safety of program participants within 30 days of notice. Rectifying health and safety may include investigating a complaint, taking appropriate corrective actions, or making referrals to appropriate authorities; or
   4. (4) failure to meet the target on any contracted performance measure by more than 25 percent of target.

3. (c) Level-Three Sanction. The Agency may impose a level-three sanction on a Board, AEL grant recipient, or Agency grantee for sanctionable acts. Sanctionable acts that occur during the program, grant, fiscal, contract, or calendar year include, but are not limited to, the following:

   1. (1) failure to rectify a level-one sanction within one year of notice;
   2. (2) failure to rectify a level-two sanction within six months of notice;
   3. (3) committing multiple sanctionable acts;
   4. (4) failure to rectify reported threats to health and safety of program participants within 60 days of notice. Rectifying health and safety may include investigating a complaint, taking appropriate corrective action, or making referrals to appropriate authorities; or
   5. (5) failure to meet the target on any contracted measure by more than 25 percent of target for two consecutive years.

Source Note:The provisions of this §802.123 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.