Program Rights and Remedies
The department may exercise certain rights and remedies in the event the recipient fails to comply with contract provisions and the recipient fails to correct the deficiencies within a reasonable time after the recipient is notified of the deficiencies. The circumstances that may warrant the department exercise of rights or remedies include, but are not limited to one or more of the following:
None of the project activities have begun within six months after award;
Any third party agreement relating to the project is not legally binding within six months of the award;
Federal or state statutory or regulatory requirements have not been met;
There is a significant deviation from the contract;
The department finds that significant corrective actions are necessary to protect the integrity of the project funds, and those corrective actions are not, or will not, be made within a reasonable time; or
A recipient defaults on loan payments, which may otherwise be made from any source of revenue at the recipient’s disposal, including but not limited to General Fund revenue.
One or more of the following rights and remedies may be exercised by the department if the recipient fails to comply with contract provisions and the recipient fails to correct the deficiencies within a reasonable time after recipient is notified of the deficiencies:
Bar a recipient from applying for future department or Authority assistance;
Revoke an existing department or Authority award;
Withhold unexpended department or Authority funds;
Require immediate return of unexpended department or Authority funds;
Require repayment of expended department or Authority funds;
Withhold other state funds otherwise due to the recipient, such as state-shared revenues; or
Other remedies that may be incorporated into the contract.
The remedies set forth in this rule are cumulative, are not exclusive, and are in addition to any other rights and remedies provided by law or under the contract.
The recipient shall be responsible for ensuring that any subcontractor complies with the applicable terms and conditions of the contract. Nothing in this rule shall restrict the department’s right to enforce independently the terms of any contract or to recover any sums that may become due as the result of a breach of such contract.