If, as a result of financial and compliance audits or for another reason, the Texas Workforce Commission finds a substantial violation of a specific provision of this chapter or another federal or state law or regulation and corrective action has not been taken, the council shall:
(1) issue a notice of intent to revoke all or part of the affected local plan;
(2) issue a notice of intent to cease immediately reimbursement of local program costs; or
(3) impose a reorganization plan under Section 2308.268 for the local workforce development area.