(a) A local ombudsman program may be operated only by an area agency on aging or a private not-for-profit or public agency.

(b) The agency in which a local ombudsman entity is organizationally located shall be responsible for the personnel management, but not the programmatic oversight, of representatives, including employee and volunteer representatives, of the ombudsman program.

(c) The agency in which a local ombudsman entity is organizationally located shall not have personnel policies or practices which prohibit the representatives of the ombudsman program from performing their duties, or from adhering to the access, confidentiality and disclosure requirements of the program. Policies, procedures and practices, including personnel management practices of the host agency, which the State ombudsman determines conflict with the laws, regulations, policies or policies governing the ombudsman program shall be sufficient grounds for the refusal, suspension, or removal of the designation of local ombudsman entity by the State ombudsman.

(d) The State long-term care ombudsman, in coordination with the State Office for the Aging, and in accordance with applicable State contracting procedures, may designate an entity to operate a local long-term care ombudsman program for one or more counties, and shall monitor the performance of such entity. If the State Office for the Aging is aware or becomes aware of any compelling reason why the State ombudsman should not designate an entity to operate a long-term care ombudsman program, the State ombudsman will comply with the State Office for the Aging’s determination.

(e) When the State ombudsman determines that a local long-term care ombudsman program does not meet the standards set forth in this Part and any related regulations or if the local ombudsman entity is subject to a conflict of interest that cannot be remedied, the State ombudsman in coordination with the State Office for the Aging, may refuse, suspend, or withdraw the designation of the local program. Prior to taking such action, the State ombudsman shall send to the affected local program a notice of the State ombudsman’s intentions to withdraw the designation. If the State Office for the Aging is aware or becomes aware of any compelling reason why the State ombudsman should not designate an entity to operate a long-term care ombudsman program or why the State ombudsman should refuse, suspend or remove designation of a local ombudsman entity, the State ombudsman will comply with the State Office for the Aging’s determination.

(f) The State ombudsman shall develop a grievance process to offer an opportunity for reconsideration of any decision to refuse, suspend, or remove designation of a local ombudsman entity. Notwithstanding the grievance process, the State ombudsman in coordination with the State Office for the Aging shall make the final determination to designate or to refuse, suspend, or remove designation of a local ombudsman entity. If the State Office for the Aging is aware or becomes aware of any compelling reason why the State ombudsman should not designate an entity to operate a long-term care program or why the State ombudsman should refuse, suspend or remove designation of a local ombudsman entity, the State ombudsman will comply with the State Office for the Aging’s determination.