(a) Each lead agency is responsible for resolving individual disputes, in accordance with the procedures in § 303.523(c)(2)(ii).
(1) During a dispute, the individual or entity responsible for assigning financial responsibility among appropriate agencies under § 303.143 (“financial designee”) shall assign financial responsibility to—
(i) An agency, subject to the provisions in paragraph (b)(2) of this section; or
(ii) The lead agency, in accordance with the “payor of last resort” provisions in § 303.527.
(2) If, during the lead agency's resolution of the dispute, the financial designee determines that the assignment of financial responsibility under paragraph (b)(1)(i) of this section was inappropriately made—
(i) The financial designee shall reassign the responsibility to the appropriate agency; and
(ii) The lead agency shall make arrangements for reimbursement of any expenditures incurred by the agency originally assigned responsibility.
(c) To the extent necessary to ensure compliance with its action in paragraph (b)(2) of this section, the lead agency shall—
(1) Refer the dispute to the Council or the Governor; and
(2) Implement the procedures to ensure the delivery of services in a timely manner in accordance with § 303.525.
(Approved by the Office of Management and Budget under control number 1820-0550)