(1) A grant or loan recipient must agree to use its best efforts to ensure that the development or commercialization of new technology occurs within the state of Montana.

(2) The board may determine that a grant or loan recipient is not complying with the funding agreement if, including but not limited to, the recipient fails to:

(a) maintain offices or facilities in Montana as required by the funding agreement; or

(b) comply with the reporting requirements established by the board or with any of the provisions in the funding agreement.

(3) Actions by the board may include termination of the grant or loan agreement and calling the grant or loan.