(a) In order to receive an allocation of funds under Sec. 631.32 of
this part, the substate grantee shall submit to the Governor a substate
plan, in accordance with instructions issued by the Governor. Such plan
shall meet the requirements of this section and shall be approved by the
Governor prior to funds being allocated to a substate grantee.
(b) The Governor shall issue instructions and schedules that assure
that substate plans and plan modifications conform to all requirements
of the Act and this part and contain the statement required by section
313(b) of the Act.
(c) Substate plans shall provide for compliance with the cost
limitation provisions of Sec. 631.14 of this part.
(d) The SJTCC or HRIC shall review and submit to the Governor
written comments on substate plans.
(e) Prior to the submission of the substate plan to the Governor,
the substate grantee shall submit the plan to the parties to the
agreement described in Sec. 631.35(c) of this part for review and
comment (section 313(a)).
(f) The Governor's review and approval (or disapproval) of a
substate plan or plan modification, and appeals to the Secretary from
disapprovals thereof, shall be conducted according to the provisions of
section 105 of the Act and Sec. 628.426 of this chapter (section
313(c)).
(g) If a substate grantee fails to meet the requirements for plan
submission and approval found in this section, the Governor may exercise
the by-pass authority set forth at Sec. 631.38 of this part.
(h) When the substate area is the State, the substate plan (and plan
modification(s)) shall be submitted by the Governor to the Secretary.
The dates for submission and consideration and the Secretary's review
and approval (or disapproval) of the plan or plan modification, and
appeals to administrative law judges from disapproval thereof, shall be
conducted according to the provisions of Sec. 628.430 of this chapter.
