[Code of Federal Regulations]
[Title 45, Volume 4]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR1206.2-4]

[Page 30-31]
 
                        TITLE 45--PUBLIC WELFARE
 
       CHAPTER XII--CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
 
PART 1206--GRANTS AND CONTRACTS--SUSPENSION AND TERMINATION AND DENIAL OF APPLICATION FOR REFUNDING--Table of Contents
 
             Subpart B--Denial of Application for Refunding
 
Sec. 1206.2-4  Procedures.

    (a) The procedures set forth in paragraphs (b) through (g) of this 
section shall apply only where an application for refunding submitted by 
a current recipient is rejected or is reduced to 80 percent or less of 
the applied-for level of funding or the recipient's current level of 
operations, whichever is less. It is further a condition for application 
of these procedures that the rejection or reduction be based on 
circumstances related to the particular grant or contract. These 
procedures do not apply to reductions based on legislative requirements, 
or on general policy or in instances where, regardless of a recipient's 
current level of operations, its application for refunding is not 
reduced by 20 percent or more. The fact that the basis for rejecting an 
application may also be a basis for termination under subpart A of this 
part shall not prevent the use of this subpart to the exclusion of the 
procedures in subpart A.
    (b) Before rejecting an application of a recipient for refunding 
ACTION shall notify the recipient of its intention, in writing, at least 
75 days before the end of the recipient's current program year or grant 
budget period. The notice shall inform the recipient that a tentative 
decision has been made to reject or reduce an application for refunding. 
The notice shall state the reasons for the tentative decision to which 
the recipient shall address itself if it wishes to make a presentation 
as described in paragraphs (c) and (d) of this section.
    (c) If the notice of tentative decision is based on any reasons, 
other than those described in paragraph (d) of this section, including, 
but not limited to, situations in which the recipient has ineffectively 
managed Agency resources or substantially failed to comply with agency 
policy and overall objectives under a contract or grant agreement with 
the Agency, the recipient shall be informed in the notice, of the 
opportunity to submit written material and to meet informally with an 
ACTION official to show cause why its application for refunding should 
not be rejected or reduced. If the recipient requests an informal 
meeting, such meeting shall be held on a date specified by ACTION. 
However, the meeting may not, without the consent of the recipient, be 
scheduled sooner than 14 days, nor more than 30 days, after ACTION has 
mailed the notice to the recipient. If the recipient requests an 
informal meeting, the meeting shall be scheduled by ACTION as soon as 
possible after receipt of the request. The official who shall conduct 
this meeting shall be an ACTION official who is authorized to finally 
approve or make the grant of assistance in question, or his designee.
    (d) If the notice of tentative decision is based upon a specific 
charge of failure to comply with the terms and conditions of the grant 
or contract, alleging wrongdoing on the part of the recipient, the 
notice shall offer the recipient an opportunity for an informal hearing 
before a mutually agreed-upon impartial hearing officer. The authority 
of such hearing officer shall be limited to conducting the hearing and 
offering recommendations. ACTION will retain all authority to make the 
final determination as to whether the application should be finally 
rejected or reduced. If the recipient requests an informal hearing, such 
hearing shall be held at a date specified by ACTION. However, such 
hearing may not, without the consent of the recipient, be scheduled 
sooner than 14 days nor more

[[Page 31]]

than 30 days after ACTION has mailed the notice to the recipient.
    (e) In the selection of a hearing official and the location of 
either an informal meeting or hearing, the Agency, while mindful of 
considerations of the recipient, will take care to insure that costs are 
kept to a minimum. The informal meeting or hearing shall be held in the 
city or county in which the recipient is located, in the appropriate 
Regional Office, or another appropriate location. Within the limits 
stated in the preceding sentence, the decision as to where the meeting 
shall be held will be made by ACTION, after weighing the convenience 
factors of the recipient. For the convenience of the recipient, ACTION 
will pay the reasonable travel expenses for up to two representatives of 
the recipient, if requested.
    (f) The recipient shall be informed of the final Agency decision on 
refunding and the basis for the decision by the deciding official.
    (g) If the recipient's budget period expires prior to the final 
decision by the deciding official, the recipient's authority to continue 
program operations shall be extended until such decision is made and 
communicated to the recipient. If a volunteer's term of service expires 
after receipt by a sponsor of a tentative decision not to refund a 
project, the period of service of the volunteer may be similarly 
extended. No volunteers may be reenrolled for a full 12-month term, or 
new volunteers enrolled for a period of service while a tentative 
decision not to refund is pending. If program operations are so 
extended, ACTION and the recipient shall provide, subject to the 
availability of funds, operating funds at the same levels as in the 
previous budget period to continue program operations.

[50 FR 42025, Oct. 17, 1985]