2 CFR 182.505 – How are violations of this part determined for recipients who are individuals?
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An individual recipient is in violation of the requirements of this part if the agency head or his or her designee determines, in writing, that—
(a) The recipient has violated the requirements of subpart C of this part; or
(b) The recipient is convicted of a criminal drug offense resulting from a violation occurring during the conduct of any award activity.