Section 144-2-1.3 - DesignationA. No community action agency may receive, obligate, or expend Community Services Block Grant funds under a sub-grant with the Division unless it maintains a designation under these rules.B. The Division shall designate an agency as eligible to receive Community Services Block Grant funds for its service area and to carry out the purposes of a Community Services Block-Grant program as defined in the Maine Community Service Act and these rules. The following criteria shall be considered: 1. A board of directors established in accordance with Section 1.4. 2. Evidence of adequate fiscal control and fund accounting procedures in order to assure the proper disbursal of and accounting for CSBG funds.3. Evidence of adequate program planning for a comprehensive program in accordance with Section 1.5(C)(1).C.Term of DesignationA designation shall be effective for seven years unless withdrawn prior thereto in accordance with Section 1.3(D). Prior to the expiration of a community action agency's designation, the Division, at its discretion, may conduct a public hearing in the agency's service area in order to generate public comment regarding the agency's effectiveness.
D.Withdrawal of Designation1. The Division may withdraw the designation of a community action agency when the agency has demonstrated substantial incompetency and a clear inability to carry out the purposes of the Maine Community Services Act, the CSBG Program or these rules. Such incompetency and inability shall at a minimum be documented by a noncompliance finding as a result of the procedures established by Section 1.7(B) of these rules.2. The Division shall notify the Community Services Advisory Board,, the CAA executive director and board chairperson of a proposed withdrawal of designation. This notice shall be written and shall state the reasons for the intent to withdraw the designation, what corrective actions are necessary and a reasonable time, not to exceed 6 months, within which the agency must rectify the problem.3. At the end of the time provided for in Subsection (2) above a designation withdrawal evaluation focusing on the specific conditions cited in the notice of intent to withdraw designation shall be performed by the Division. The results of this evaluation shall be shared with the CAA executive director and board, and the Community Services Advisory Board.4. The CAA may request a hearing before a review board to show cause why the CAA should not have its designation withdrawn. The request shall be made to the Division director within 10 working days of receipt of the results of the evaluation. A meeting of the Community Services Advisory Board shall be scheduled within 20 working days of receipt of the request in order to appoint an ad hoc review board to be composed of 3 members of the Community Services Advisory Board.5. The review board shall hold a hearing within 20 working days of its appointment.6. The review board shall issue a written recommendation in support of or in opposition to the Division's evaluation within 10 working days of the review board hearing.7. Within 5 working days of the review board's recommendation, the Director of the Division shall issue an order which withdraws designation, or rescinds the notice of intent, or provides for other appropriate action. If no hearing was requested, the Division Director may issue a withdrawal of designation within 15 working days after the notice of the results of the evaluation.8. To appeal the Division's order withdrawing designation, the community action agency must file a petition for review of the final agency decision in the appropriate superior court within 30 days, under the Maine Rule of Civil Procedure, Rule 80B. 9. Notwithstanding any other provision, financial malfeasance by a community action agency may be cause for immediate withdrawal of the agency's designation by the Division. Financial malfeasance is the mismanagement and/or unlawful use of CSBG funds which has a significant impact on the CSBG program.10- 144 C.M.R. ch. 2, § 1.3