Section R. 400.20107 - Grantees; procedures for appeals and appeals hearings requiredRule 107.
(1) A grantee shall establish an appeals mechanism which provides the opportunity for contractors or service providers to appeal any of the following: (a) A service provider's contract that has been suspended, terminated, or not renewed, except for cause of termination or non-renewal.(b) A contractor's or potential contractor's application, or proposal to provide services, that was denied as provided in R 400.20105.(c) An administrative action that imposes or limits requirements on the contractor or service provider.(2) A grantee, through action of its governing body, shall establish and issue an appeals procedure for items covered by subrule (1)(a) and (b) of this rule which includes all of the following:(a) Written notice to the contractor or service provider of grantee action to suspend, terminate, not renew, or deny a contract, including a notice of right to appeal.(b) Notice that information or criteria on which the grantee's action was based is available for review by affected parties.(c) Notice that the affected party may appear in person or by a designated representative to appeal the grantee's action.(d) Provision for, as the initial step of any appeal, a meeting with the governing body within 30 days to review items in dispute and seek clarification or resolution to the issue in dispute. A record of the meeting, including relevant facts, shall be maintained, and a determination shall be rendered in writing by the governing body. Issues unresolved shall be appealed to arbitration.(e) A specification that appeals proceedings shall be conducted within an aggregate timeframe of 60 days, within which all of the following shall occur:(i) A notice of right to appeal shall be sent to the contractor within 7 days of the grantee's action.(ii) An appeal shall be requested by the aggrieved party, in writing, within 10 days of notice as provided by paragraph (i) of this subdivision.(iii) A hearing shall be scheduled and completed.(iv) A decision shall be rendered and reported, in writing, to the affected parties.(f) Notice shall be given that decisions of the governing body may be appealed to arbitration in accordance with the provisions of the American arbitration association or a similar recognized professional arbitration organization. The arbiter shall determine the distribution of costs between the parties involved in the appeal.(g) Notice shall be provided that a grantee's hearing decision may be appealed to the state agency and that the state agency shall review and act on such appeal as provided by R 400.20309(1).(h) A description of those circumstances under which a request for appeal hearing may be refused; such circumstances shall be limited to failure to comply with the appeal procedures required by this subrule or, to lack of standing by the appellant.(3) A grantee, through action of its governing body, shall issue administrative appeals procedures for items covered by subrule (1)(c) of this rule which shall include all of the following: (a) Written notice to all contractors and service providers of the administrative appeals process.(b) Written notice that contractors or service providers may appeal administrative complaints to the grantee's governing body.(c) Written notice to the appellant of the governing body's determination within 30 days of the appeal's filing date.(d) Written notice of decision shall include a statement that appellants may appeal the decision to the state agency within 10 days of the written notice provided by subdivision (c) of this subrule.(e) The grantee, prior to final adoption of its procedures as required by subrules (2) and (3) of this rule, shall first submit the procedure to the state agency for review for content and form as required by R 400.20309.Mich. Admin. Code R. 400.20107