[Code of Federal Regulations]
[Title 34, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR370.10]

[Page 395]
 
                           TITLE 34--EDUCATION
 
            REHABILITATIVE SERVICES, DEPARTMENT OF EDUCATION
 
PART 370--CLIENT ASSISTANCE PROGRAM--Table of Contents
 
          Subpart B--What Requirements Apply to Redesignation?
 
Sec.  370.10  When do the requirements for redesignation apply?


    (a) The Governor may not redesignate the agency designated pursuant 
to section 112(c) of the Act and Sec.  370.2(b) without good cause and 
without complying with the requirements of Sec. Sec.  370.10 through 
370.17.
    (b) For purposes of Sec. Sec.  370.10 through 370.17, a 
``redesignation of'' or ``to redesignate'' a designated agency means any 
change in or transfer of the designation of an agency previously 
designated by the Governor to conduct the State's CAP to a new or 
different agency, unit, or organization, including--
    (1) A decision by a designated agency to cancel its existing 
contract with another entity with which it has previously contracted to 
carry out and operate all or part of its responsibilities under the CAP 
(including providing advisory, assistance, or advocacy services to 
eligible clients and client applicants); or
    (2) A decision by a designated agency not to renew its existing 
contract with another entity with which it has previously contracted. 
Therefore, an agency that is carrying out a State's CAP under a contract 
with a designated agency is considered a designated agency for purposes 
of Sec. Sec.  370.10 through 370.17.
    (c) For purposes of paragraph (a) of this section, a designated 
agency that does not renew a contract for CAP services because it is 
following State procurement laws that require contracts to be awarded 
through a competitive bidding process is presumed to have good cause for 
not renewing an existing contract. However, this presumption may be 
rebutted.
    (d) If State procurement laws require a designated agency to award a 
contract through a competitive bidding process, the designated agency 
must hold public hearings on the request for proposal before awarding 
the new contract.

(Authority: 29 U.S.C. 711(c) and 732(c)(1)(B))