Section 509.012 - Refusal or Suspension of State Aid(a) The division shall take one or more of the following actions against a department that the division determines is not in substantial compliance with division standards or requirements adopted under Sections 509.003 through 509.006: (1) a reduction, refusal, or suspension of payment of state aid to the department; or(2) an imposition of budget control over the department.(b) The board shall provide for notice and a hearing in cases in which the division proposes to take an action authorized by this section, other than a refusal by the division to provide discretionary grant funding or a reduction by the division of discretionary grant funding during a funding cycle. The division shall define with specificity the conduct that constitutes substantial noncompliance with division standards and shall establish the procedures to be used in imposing or waiving a sanction authorized by this section, subject to approval of the definition and the procedures by adoption by the board.Tex. Gov't. Code § 509.012
Amended by Acts 1997, 75th Leg., ch. 165, Sec. 12.29(a), eff. 9/1/1997.Added by Acts 1995, 74th Leg., ch. 76, Sec. 7.01, eff. 9/1/1995.