(a) Respondents to the SGA which are selected as potential grantees
shall be so notified by the Department. The notification shall invite
each potential grantee to negotiate the final terms and conditions of
the grant, shall establish a reasonable time and place for the
negotiation, and shall indicate the State or area to be covered by the
grant. Funds may be awarded for two program years.
(b) In the event that no grant applications are received for a
specific State or area or that those received are deemed to be
unacceptable, or where a grant agreement is not successfully negotiated,
the Department may give the Governor first right to submit an acceptable
application pursuant to Sec. 633.201. Should the Governor not accept the
offer within fifteen days, the Department may then (1) designate another
organization or organizations, (2) reopen the area for competitive
bidding, or (3) use the funds for national-account activities.
(c) An applicant whose grant application is not selected by the
Department to receive section 402 funds shall be notified in writing.
(d) Applicants who submit grant applications which have been
rejected may not resubmit a new grant application for the State(s) or
area(s) in which they are interested in providing services until the
area(s) is announced by the Department as reopened for competition.
(e) Any applicant whose grant application is denied in whole or in
part by the Department may request an administrative review as provided
in part 636, with respect to whether there is a basis in the record to
support the Department's decision. This appeal will not in any way
interfere with the Department's designation and funding of another
organization to service the area in question during the appeal period.
The available remedy under such an appeal will be the right to be
designated in the future rather than a retroactive or immediately
effective selection status. Therefore, in the event the ALJ rules that
the organization should have been selected and the organization
continues to meet the requirements of this part, the Department will
select and fund the organization within 90 days of the ALJ's decision
unless the end of the 90-day period is within 6 months of the end of the
funding period. Any organization selected and/or funded prior to the
ALJ's decision will be affected in a manner prescribed by the
Department. All parties will agree to the provisions of this paragraph
as a condition for funding.
