New York regulations

Title 19 Part 700

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19 NYCRR 700.1 - Scope and purpose

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(a)This Part applies to all adjudicatory proceedings commenced by service of a preliminary determination of funding action upon public or private grantees which receive or are entitled to receive Community Services Block Grant (CSBG) entitlement funds under P.L. 97-35, as amended, and Article 6-D, Executive Law, section 159-i, as amended.
(b)The purpose of this Part is:
(1)to comply with P.L. 97-35, as amended by P.L. 98-558, with respect to terminations of present and future funding; and
(2)to provide particular CSBG grantees with notice and an opportunity for a hearing on the record of the department's preliminary determination of funding action for a statutory allocation of CSBG entitlement funds for cause.
(c)This Part applies to any grantee receiving its statutory allocation of CSBG entitlement funds under Executive Law, section 159-i, as amended, as allocated to the State in PL 97-35, as amended. This Part does not apply to the remainder of CSBG funds, commonly referred to as “discretionary” funds, which may be received by a grantee or other statutorily specified entity.

19 NYCRR 700.2 - Definitions

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As used in this Part:

(a)Department.

The Department of State.

(b)Entitlement funds.

The statutory allocation proportion of CSBG funds received by a “grantee” under P.L. 97-35, as amended, and Executive Law, section 159-i, as amended.

(c)Grantee.

Any public or private “grantee” as defined in Executive Law, section 159-e(1), as amended.

(d)Suspension.

A decision for cause by the department to temporarily curtail the statutory allocation of CSBG entitlement funds in part prior to the termination date of a CSBG entitlement contract.

(e)Termination.

A decision for cause by the department that the present or future CSBG funding to a CSBG grantee, which received CSBG entitlement funds in the previous fiscal year, shall be permanently terminated, in whole or in part.

19 NYCRR 700.3 - Grounds for funding action

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(a)Future funding action.

A grantee's application for future CSBG funding may be permanently rejected when there has been (1) substantial failure, or (2) repeated or successive failure, by a grantee to comply with any provision of (i) law, (ii) rule, regulation or program instruction issued by the department, or (iii) a term or condition of a current or prior CSBG entitlement contract with the department. The ground for substantial failure under this subdivision shall include the abandonment by a grantee of the services to be performed under a CSBG entitlement contract, in whole or in part, for a previous fiscal year in accordance with subdivision (b) or (c) of his section. In the absence of unusual circumstances, an application for future CSBG funding shall not be rejected for this cause unless the department has given the grantee notice, as set forth in section 700.4 of this Part, of one or more of the two grounds for rejection and reasonable opportunity to take effective corrective action.

(b)Present funding action.

A CSBG entitlement contract may be permanently terminated, in whole or in part, for cause, when there has been (1) substantial failure, or (2) repeated or successive failure, by a grantee to comply with a provision of (i) law, (ii) rule, regulation or program instruction issued by the department, or (iii) a term or condition of a current or prior CSBG contract with the department. The ground for substantial failure under this subdivision shall include the abandonment by a grantee of the services to be performed under a CSBG entitlement contract, in whole or in part. Failure of the grantee to resume performance of the services abandoned under a CSBG entitlement contract, within 20 days after receipt of a notice of funding action in accordance with section 700.4 of this Part, on the ground of substantial failure by abandonment, shall be deemed refusal by such grantee to take effective corrective action. In the absence of unusual circumstances, a CSBG entitlement contract shall not be permanently terminated, in whole or in part, for this cause unless the Department has given the grantee notices as set forth in section 700.4, of one or more of the two grounds for permanent termination and reasonable opportunity to take effective corrective action.

(c)Contract suspension funding action.

A CSBG entitlement contract may be suspended, in whole or in part, for cause, when there has been (1) substantial failure, or (2) repeated or successive failure, by a grantee to comply with a provision of (i) law, (ii) rule, regulation or program instruction issued by the department, or (iii) a term or condition of a current or prior CSBG entitlement contract with the department. The ground for substantial failure under this subdivision shall include the abandonment by a grantee of the services to be performed under a CSBG entitlement contract. Failure of the grantee to resume performance of the services abandoned under a CSBG entitlement contract, within 20 days after receipt of a notice of funding action in accordance with section 700.4 of this Part, on the ground of substantial failure or abandonment shall be deemed refusal by such grantee to take effective corrective action.

In the absence of unusual circumstances, a CSBG entitlement contract shall not be suspended, in whole or in part, for this cause unless the department has given the grantee notice as set forth in section 700.4, of one or more of the two grounds for suspension and reasonable opportunity to take effective corrective action.

(d)This Part does not apply to:
(1)terminations or reductions, in whole or in part, of present or future CSBG funding, which are required by or will implement a provision of Federal or State law; or
(2)contract payments made in accordance with State Finance Law, article XI-A, as amended, also commonly referred to as the Prompt Payment Law; or
(3)demand for reimbursement by the department for disallowed costs when a grantee has received payment of CSBG funds under a CSBG entitlement contract; or
(4)Audit resolution process.

19 NYCRR 700.5 - Initiation of hearing

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Upon receipt of a grantee's written request for a hearing under section 700.4 of this Part, the hearing officer unit of the department shall schedule the hearing and notify the grantee of the date, time, and place for the hearing.

19 NYCRR 700.6 - State Administrative Procedure Act applications

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Any hearing under this Part shall be conducted in accordance with the New York State Administrative Procedure Act (SAPA), as amended.

19 NYCRR 700.7 - Review of department decision

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(a)No funding determination based on section 700.3(a) or (b) of this Part shall become final and effective until a finding is made by the Secretary of the United States Department of Health and Human Services in accordance with P.L. 97-35, as amended by P.L. 98-558, confirming the department's decision.
(b)Additionally, any hearing decision of the department resulting in a termination of present or future funding to a grantee as prescribed in section 700.3(a) or (b) of this Part shall upon written request made within 20 business days of receipt of the department's decision be reviewed by the Secretary of the United States Department of Health and Human Services in accordance with P.L. 97-35, as amended by P.L. 98-558.

19 NYCRR 700.8 - Funding pending appeal decision

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In accordance with P.L. 97-35, as amended by P.L. 98-558, the statutory allocation of CSBG entitlement funds to a grantee which has requested a hearing under section 700.3(a) or (b) of this Part shall continue until a finding is made by the Secretary of the United States Department of Health and Human Services, confirming the State's determination of cause, in whole or in part.

19 NYCRR 700.9 - Professional service costs

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Costs of legal, accounting and consulting services, and related costs incurred in connection with an adjudicatory proceeding under this Part are not allowable costs under CSBG entitlement funds received by the grantee.

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