(a) The commissioner encourages mergers and expansions of campaigns to promote efficiency and economy. The commissioner approvals for federated community campaigns issued prior to the effective date of these regulations shall continue in force and effect.

(b) In the absence of an RFA issued by the statewide SEFA council, a charitable organization may apply in accordance with subdivision (c) of this section to replace a federated community campaign in a campaign area and may apply in accordance with section 335.7 of this Part to solicit contributions from State employees in a county or group of counties having no federated community campaign.

(c) Notwithstanding the prior approval and continued operation of a federated community campaign manager, the statewide SEFA council may, at any time, issue an RFA for charitable organizations to apply in accordance with subdivision (d) of this section to act as the federated community campaign manager in any county, or groups of counties. The commissioner will not approve a federated community campaign manager in any county or groups of counties, where, in the commissioner’s reasonable opinion and judgment, the number of State employees to be solicited by such campaign is too small to make deductions or contributions practicable or feasible.

(d) Notwithstanding the prior approval and continued operation of a federated community campaign, in the event a different charitable organization meets the general eligibility provisions, demonstrates the capability to fulfill the functions and duties set forth in section 335.7 of this Part, is able to supply the information specified herein, it may submit an application to the commissioner pursuant to this section for its substitution in place of the existing federated community campaign. The application shall include notice to any qualified federated community campaign currently serving that campaign area and an opportunity to be heard. The commissioner shall evaluate such application for substitution or merger and make a determination in accordance with the provisions of these regulations relative to primary approvals of federated community campaigns. The commissioner may solicit comments from the local SEFA committees, the statewide SEFA council and individual participant organizations concerning the application. The commissioner's decision regarding acceptance or rejection of such proposed substitution shall be conclusive and binding. Written notice of the decision on an application for the substitution of a federated community campaign hereunder shall be given to the applicant, the previously existing federated community campaign, the local SEFA committees, and the statewide SEFA council. In the event the substitution is approved, the applicant will provide written notice to the affected participants. Such notice may be electronic.

(e) Upon the substitution, merger, or removal of a federated community campaign, the prior federated community campaign will continue to act as the fiduciary for the distribution of contributions and payment of approved expenses that relate to the campaign it conducted. The prior federated community campaign has the duty to account in the manner directed by the local SEFA committee or commissioner. Any campaign funds remaining with the prior federated community campaign that were budgeted for administrative expenses but not approved for expenditure by the local SEFA committee are to be transferred to the new federated community campaign with the accounting. In the event that there is no qualified federated community campaign in a given county or group of counties, the local SEFA committee and statewide SEFA council will promptly inform the commissioner in writing. The commissioner may, in accordance with this section, accept applications from a substitute charitable organization to function as the campaign's federated community campaign or the commissioner may attempt to merge the campaign with another campaign that has a qualified federated community campaign. The commissioner may also cancel the local campaign, and in that event, no workplace solicitation of any employee in the campaign area is authorized and the commissioner will provide notification to employee participants and cease all related deductions and further, no payroll authorizations may be accepted and honored during the duration of the cancellation.