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  <FDSYS>
    <CFRTITLE>45</CFRTITLE>
    <CFRTITLETEXT>Public Welfare</CFRTITLETEXT>
    <VOL>4</VOL>
    <DATE>2008-10-01</DATE>
    <ORIGINALDATE>2008-10-01</ORIGINALDATE>
    <COVERONLY>false</COVERONLY>
    <TITLE>Grantee to show both legal status and financial viability.</TITLE>
    <GRANULENUM>1302.20</GRANULENUM>
    <HEADING>Section 1302.20</HEADING>
    <ANCESTORS>
      <PARENT HEADING="Title 45" SEQ="5">Public Welfare</PARENT>
      <PARENT HEADING="Subtitle B" SEQ="4">Regulations Relating to Public Welfare (Continued)</PARENT>
      <PARENT HEADING="CHAPTER XIII" SEQ="3">OFFICE OF HUMAN DEVELOPMENT SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES</PARENT>
      <PARENT HEADING="SUBCHAPTER B" SEQ="2">THE ADMINISTRATION FOR CHILDREN, YOUTH AND FAMILIES, HEAD START PROGRAM</PARENT>
      <PARENT HEADING="PART 1302" SEQ="1">POLICIES AND PROCEDURES FOR SELECTION, INITIAL FUNDING, AND REFUNDING OF HEAD START GRANTEES, AND FOR SELECTION OF REPLACEMENT GRANTEES</PARENT>
      <PARENT HEADING="Subpart C" SEQ="0">Change in Grantee Requiring Amendment of Approved Application or Replacement of Head Start Program</PARENT>
    </ANCESTORS>
  </FDSYS>
  <SECTION>
    <SECTNO>§ 1302.20</SECTNO>
    <SUBJECT>Grantee to show both legal status and financial viability.</SUBJECT>
    <P>(a) Upon the occurrence of a change in the legal condition of a grantee or of a substantial diminution of the financial resources of a grantee, or both, for example, such as might result from cessation of grants to the grantee under section 514 of the Act, the grantee is required within 30 days after the effective date of the regulations in this Part or the date the grantee has notice or knowledge of the change, whichever is later, to show in writing to the satisfaction of the responsible HHS official that it has and will continue to have legal status and financial viability. Failure to make this showing may result in suspension, termination or denial of refunding.</P>
    <P>(b) The responsible HHS official will notify the grantee in writing of the decision as to the grantee's legal status and financial viability within 30 days after receiving the grantee's written submittal.</P>
    <P>(c) When it is consistent with proper and efficient administration, the responsible HHS official may extend a grantee's program year to end on the date when a change in its legal condition or a substantial diminution of financial resources, or both, is scheduled to take place.</P>
  </SECTION>
</CFRGRANULE>
