An amendment to the Complaints and Sanctions section of the General Requirements. The amendment provides that sanctions may be waived if the prime contractor has observed the following in relation to a subgrantee: a) established and followed an appropriate system for awarding and monitoring subcontracts, b) had a written contract with the subcontractee that has clear goals and obligations, c) diligently monitored the implementation of the contract, and d) took prompt action in face of evidence of noncompliance. Sanctions may be imposed if these or other parts of the act are not complied with.