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subject to the terms and conditions of this section. (c) The department will continue a grant for periods of one year or less, and will continue the grant without advertisement or solicitation of competing proposals. During a continuation period, the terms and conditions of the grant will remain the same, except for the amount of the grant. The annual dollar amount per bed will change in accordance with the cost-of-living allowance defined in 7 AAC 53.999, to the extent that the cost-of-living allowance is funded by the legislature. (d) The department will, in its discretion, continue a grant only if it finds that
(1) the legislature has appropriated sufficient money to fund the continuation of the grant, and to fund the cost-of-living allowance defined in 7 AAC 53.999;
(2) the grantee has, to the date of the continuation, satisfactorily performed its duties under the grant; and
(3) the department needs the number of beds and the kind of beds that are described in the grant agreement for the continuation period. (e) If a grantee does not wish to continue a grant, it must notify the department of its decision on or before April 30. The department will, on or before May 31 of a year, notify a grantee of its intention to continue a grant. (Eff. 1/13/85, Register 93; am 6/14/85, Register 95) Statutory Authority: Authority: AS 47.05.010 AS 47.40.011 AS 47.40.041 7 AAC 53.925. Special provisions in residential child care facility grant agreements. (a) By submitting a proposal for a residential child care facility grant, a proponent agrees to all requirements of 7 AAC 50.001 — 7 AAC 50.114, 7 AAC 53.901 — 7 AAC 53.999, and 7 AAC 78, and makes an offer to provide services that is irrevocable until 26 days after the date specified in the request for proposals as the date that the department would award grants. However, at any time before the department approves a grant proposal, a proponent may amend a grant proposal if the department, in its discretion, finds that the proponent made an inadvertent error in preparation of the grant proposal. (b) A grantee may not terminate the grant before the end of a grant year except as specifically stated in 7 AAC 53.921(e).