(1) The office of behavioral health may cancel a grant for any public program for any of the following reasons:
(a) There is no longer a need for the public program.
(b) Funds for the public program are not available.
(c) The public program does not meet the standards or requirements adopted by the department or does not conform to the comprehensive state plan for substance use disorder treatment programs.
(2) Before canceling a grant for the reasons set forth in subsection (1)(c) of this section, the office of behavioral health shall notify the person or agency in charge of the public program of the deficiency in the program, and the person or agency must be given a reasonable amount of time in which to correct the deficiency.