A State becomes ineligible to receive the benefits of the Acts if it:
(a) Fails materially to comply with any law, regulation, or term of a grant as it relates to acceptance and use of funds under the Acts;
(b) Does not have legislation required at § 80.10 or passes legislation contrary to the Acts; or
(c) Diverts hunting and fishing license revenue from:
(1) The control of the State fish and wildlife agency; or
(2) Purposes other than the agency's administration.