Section 109.60  Grant Termination

If the Department determines that it is in the best interests of the program to revoke the designation of a LAA, the designation of a new administering agency shall be made by the Department in consultation with the government (or combination of governments) which has jurisdiction over the entire community to be served by the program.  The determination of the "best interests" of the program will depend on the agency's success in complying with the grant agreement.

a)         Any LAA, either established (i.e., local designation and state recognition) under the LIHEAP and/or IHWAP in accordance with the Low-Income Home Energy Assistance Act of 1981 will be awarded continuing program administering responsibilities in its established jurisdiction unless the following shall occur:

1)         written communication to the Department stating its desire to discontinue operation of the program;

2)         material failure by the LAA to comply with the Low-Income Home Energy Assistance Act of 1981, 10 CFR 440, 45 CFR 96, the provisions of the grant agreement, and the provisions of 47 Ill. Adm. Code 1 and 89 Ill. Adm. Code 109. Material failure includes, but is not limited to, fraud, disallowance of costs which could render a LAA insolvent, and denial of access to records of grant-related transactions.

b)        Upon discovery of one of the conditions noted in subsection (a), the Department will take the following action:

1)         The Department shall notify the LAA in writing of its initiation of the termination process and the reasons for termination.  The notice will advise the LAA that, in accordance with this Part, it is entitled to a hearing.  The LAA will be given fifteen (15) days from receipt of such notification to inform the Department that it wishes to exercise its right to a hearing.  The hearing will be conducted within thirty (30) days of the original notification of initiation of the termination process.  The notification shall also include:

A)        a requirement that the LAA (in order to receive continued funding) shall agree to submit to a Department appointed official, throughout the termination process, to serve as a reviewer of all program-related expenditures which are reimbursable under Sections 109.70 and 109.420 of this Part) and which comply with the objectives and program activities specified in accordance with Subparts A and B of this Part; or

B)        in the event the LAA does not agree to submit to the Department review specified in subsection (b)(1)(A), notice of funding suspension pending termination pursuant to this Part.

2)         The services of a hearing officer, who must be an attorney licensed to practice law in Illinois under Article VII of the Illinois Supreme Court Rules, will be obtained by the Department, as will the services of a certified shorthand reporter under the Illinois Certified Shorthand Reporters Act of 1984 [215 ILCS 415]. Notice of the actual hearing time and date will be provided, with proof of receipt of notice, to both the LAA and grantor agency at least ten (10) days prior to the hearing.  The cost of the certified shorthand reporter and the original transcript of the proceedings shall be borne by the Department. The LAA shall bear the cost of its copy of the transcript of proceedings.

c)         The hearing shall be conducted in accordance with 89 Ill. Adm. Code 104. The report of the hearing officer will be sent via registered mail to both parties within thirty (30) days of the hearing's completion.

d)         The Director of the Department will review the hearing officer's recommendation and will base his/her decision on findings of fact and conclusions of laws that substantiate grant termination pursuant to this Section.  The Department will notify the LAA in writing of the Department's final determination within thirty (30) days.

(Source:  Recodified at 29 Ill. Reg. 2791, effective February 3, 2005)