Before awarding a grant under this subchapter, the commission shall enter into a written agreement with the recipient specifying that:
(1) if the commission finds that the recipient has not complied with the standards required by this subchapter and rules adopted under this subchapter:
(A) the recipient shall repay the grant or a prorated portion of the grant to this state at an agreed rate and on agreed terms; and
(B) the commission will not distribute to the recipient any grant money that remains to be distributed to the recipient;
(2) if, as of a date provided in the agreement, the recipient has not used grant money awarded under this section for the purposes for which the grant was intended, the recipient shall repay that amount to this state at an agreed rate and on agreed terms; and
(3) the recipient may not use grant money for administrative or overhead expenses.