An EMO is eligible to receive EMA funds if the following criteria is met by the EMO prior to the beginning of the application period for which the EMA funds are sought:

(1) Have a current CEMP, or schedule for plan development or maintenance, verified by the director.

(2) Have at least a half-time employee whose job duties are specifically dedicated to performing emergency management functions.

(3) Have a designated emergency management agency, department, division, or office established with a dedicated budget to perform emergency management functions.

(4) Have adopted an ordinance, code, or resolution establishing the EMO. Additionally, an EMO that consists of two or more political subdivisions (cities/towns) shall have an executed interlocal agreement establishing the multijurisdictional EMO.

(5) Hire and appoint personnel in accordance with applicable employment laws, rules, regulations, and policies.

(6) Comply with all federal and state emergency management program requirements.

(7) Demonstrate that EMA funds will only be used to both sustain and enhance the EMO's existing emergency management program and capabilities.

(8) Demonstrate that EMA funds will not be used to supplant or replace EMO existing dedicated emergency management budgeted funding.

(9) Meet all applicable matching fund requirements for receipt of EMA funding.

(10) If an EMO fails to meet each of the criteria in subsections (1) through (9) of this section, the director may withhold from the EMO any EMA funds for the balance of the funding period and future funding cycles to the extent the director determines will encourage sustained and enhanced statewide emergency management functions consistent with federal and state emergency management program requirements.