Section R. 400.19604 - Replacement of an existing community action agencyRule 604.
(1) If another private non-profit organization is proposed to replace an existing CAA, the executive director shall either approve or disapprove the designation within 90 business days pursuant to the procedures in the provisions of R 400.19606(3). If approved, the designation shall be provisional for 120 days. During this period, the proposed CAA shall establish required operating and management procedures, select and appoint members of the governing/advisory board, and formally adopt bylaws. A status report of these activities and related documents shall be submitted to the executive director within the 120-day provisional period. If the executive director is satisfied that all actions and plans are in order, the agency shall receive final designation as a CAA. The executive director may extend the 120-day provisional period for an additional 60 days. The executive director shall take into consideration if the new CAA is capable of providing a broad range of services and activities in the unserved area that are designed to eliminate poverty and foster self-sufficiency and that the new CAA meets the tripartite board requirements.(2) If another CAA is proposed to replace an existing CAA, the executive director shall either approve or disapprove the designation within 90 business days pursuant to the procedures in the provisions of R 400.19606(3). If approved, the designation shall be provisional for 120 days. During this period, the replacing CAA shall restructure its governing/advisory board and amend its bylaws and operating procedures to reflect the new service area. A status report of these activities and related documents shall be submitted to the executive director within the 120-day provisional period. If the executive director is satisfied that all actions and plans are in order, the agency shall receive final designation. The executive director may extend the 120-day provisional period for an additional 60 days.(3) If another CAA is proposed to replace an existing CAA as an intermediate provider, the executive director shall either approve or disapprove the intermediate provider within 90 business days pursuant to the procedures in an open and fair request for proposal bid process. If approved, the CAA shall be provisional for 120 days. During this period, the intermediate provider CAA will set up operations to expand into the new service area. A status report of these activities and related documents shall be submitted to the executive director every 30-days during the provisional period. The executive director may extend the 120-day provisional period for an additional 60 days. A CAA may continue the expanded service area as intermediate provider without governing/advisory board restructuring and bylaw amendments until a permanent solution is implemented.(4) A change in designation shall not take place unless a written transition plan or closedown plan, approved by the executive director, is followed. The party or parties responsible for the preparation and execution of the plan shall be identified by the executive director. A transition plan shall ensure the orderly transfer of program functions, obligations, records, authority, and funds from an existing CAA to a new CAA. A closedown plan shall ensure the orderly termination of program activities and disposition of funds, records, and property.(5) The bureau may reallocate available resources, as necessary, when there has been a change in the designation of a CAA serving a community. The bureau, in making such a reallocation, shall take into consideration the financial obligations of the CAA being replaced and the fiscal needs of the new CAA.Mich. Admin. Code R. 400.19604