1. (a) The assistant executive director may impose sanctions on a subgrantee under §9.135 of this subchapter (relating to Withholding Funds or Disallowing Costs), §9.136 of this subchapter (relating to Suspension or Termination for Cause), or §9.137 of this subchapter (relating to Determination of Ineligibility).
2. (b) In making the decision whether to impose a sanction, the assistant executive director may consider, as a mitigating factor, whether the subgrantee has adopted and enforces an internal ethics and compliance program that satisfies the requirements of §10.51 of this title (relating to Internal Ethics and Compliance Program).
3. (c) If the assistant executive director decides to impose a sanction on a subgrantee, the department will notify the subgrantee of the sanction by certified mail within five working days after the date of the assistant executive director's decision. The notice will summarize the facts and circumstances underlying the sanction, identify the period of the sanction and the deadline for correction of deficient conditions, if applicable, and state that the subgrantee may appeal the sanction in accordance with §9.138 of this subchapter (relating to Appeal of Sanction).
4. (d) Except as provided by §9.138(d) of this subchapter, a sanction is effective on the date specified in the notice given under subsection (c) of this section.
5. (e) The imposition of a sanction does not affect a subgrantee's obligations under a grant or subgrant agreement with the department or limit the department's remedies under such an agreement. The department may take any remedy that is legally available.
6. (f) For purposes of this subchapter, an act or omission by an individual or other person on behalf of a subgrantee is considered to be an act or omission of the subgrantee.

Source Note:The provisions of this §9.133 adopted to be effective June 17, 2010, 35 TexReg 5077; amended to be effective January 5, 2012, 36 TexReg 9349.