(a) The Governor and the recipient are jointly and severally liable
for all violations of the nondiscrimination and equal opportunity
provisions of WIA and this part by the recipient, unless the Governor
has:
(1) Established and adhered to a Methods of Administration, under
Section 37.54, designed to give reasonable guarantee of the recipient's
compliance with such provisions;
(2) Entered into a written contract with the recipient that clearly
establishes the recipient's obligations regarding nondiscrimination and
equal opportunity;
(3) Acted with due diligence to monitor the recipient's compliance
with these provisions; and
(4) Taken prompt and appropriate corrective action to effect
compliance.
(b) If the Director determines that the Governor has demonstrated
substantial compliance with the requirements of paragraph (a) of this
section, he or she may recommend to the Secretary that the imposition
of sanctions against the Governor be waived and that sanctions be
imposed only against the noncomplying recipient.