1. (1) The allotment of a contractor who currently receives CSBG funding or who received funding in the previous program period can be terminated or reduced below the proportional share currently being received or received in the previous program period only for cause. The term "cause" includes but is not limited to:

   1. (a) a statewide redistribution of funds in response to:

      1. (i) the results of the most recent available census or other appropriate data;
      2. (ii) the establishment of a new entity eligible for funding; or
      3. (iii) severe economic dislocation; or
   2. (b) the contractor's failure to comply with the terms of its agreement to provide services.

2. (2) The allotment of a contractor who currently receives CSBG funding or who received funding in the previous program period can be terminated or reduced only after the contractor has been notified and given an opportunity for a hearing on the record before the director or the director's designee. A request for a hearing from a contractor must be submitted to the department in writing within 30 days of the date of notice of the termination or reduction. The decision of the director or the director's designee shall be subject to review by the secretary of health and human services.

   1. (a) Upon request, the secretary shall review the record and issue a written determination stating the secretary's reasons for that determination.
   2. (b) In cases where a contractor requests review by the secretary, the termination or reduction of the contractor's allotment is not final until the secretary has affirmed the state's finding of cause.

Authorizing statute(s): Sec. 53-2-201, MCA

Implementing statute(s): Sec. 53-10-502, MCA

History: NEW, 1994 MAR p. 1725, Eff. 6/24/94; TRANS, from SRS, 2000 MAR p. 745.