1. (a) The division shall periodically review each new center for independent living that receives:

   1. (1) money under Title VII, Part B of the federal act; or

   2. (2) a grant under this chapter;

      to determine whether the center is in compliance with the standards and assurances set forth in Section 725 of the federal act.

2. (b) If the division determines that a center reviewed under subsection (a) is not in compliance with the standards and assurances set forth in Section 725 of the federal act, the division shall immediately notify the center of the division's determination of noncompliance. A center may appeal the determination by requesting a hearing from the office of the secretary not later than thirty (30) days after receiving notice from the division.

3. (c) Except as provided in subsection (d), the division shall terminate all funds to a center determined to be in noncompliance under this section not later than ninety (90) days after the date of:

   1. (1) the division's notification of noncompliance; or
   2. (2) a final decision by the office of the secretary in the case of a center that appeals the division's determination under subsection (b).

4. (d) The division may not terminate the funds of a center for independent living that is determined to be noncompliant with the standards and assurances set forth in Section 725 of the federal act if:

   1. (1) the center submits to the division a plan for achieving compliance within ninety (90) days; and

   2. (2) the division approves the plan.

      A plan required under this subsection must be submitted not later than thirty (30) days after the center receives a notice of noncompliance from the division under subsection (b).

As added by P.L.217-2005, SEC.25.