(a) Upon receipt of the plan or the annual implementation report, the department has 45 days to transmit a letter to the local commissioner which indicates approval or disapproval of all or certain components of the plan or annual implementation report. A letter of disapproval must indicate the criteria set forth in section 407.7 of this Part which the plan or annual implementation report did not meet, and the action necessary to qualify for approval. The letter must also notify the district that it must submit a revised plan or annual implementation report or parts thereof within 30 days of receipt of a notice of disapproval of the whole or part of the plan or annual implementation report.

(b) Within 30 days of receipt of a notice of disapproval, the district must submit to the department a revised plan or annual implementation report or parts thereof.

(c) The department shall approve or disapprove the initial revision of the disapproved plan or annual implementation report within 15 days of receipt of such initial revision.

(d) The commissioner may grant extensions of time for resubmittal of plans or annual implementation reports, or permit additional revisions and resubmittals.

(e) No portion of the plan or annual implementation report can be finally disapproved until the district has had at least one opportunity to resubmit the plan or report.

(f) State reimbursement may be withheld for all or any portion of a district's activities if the plan, the annual implementation report or portions of either are disapproved.

(g) Any social services district aggrieved by a final disapproval of a plan or annual implementation report is entitled to a hearing in accordance with the applicable provisions of the Social Services Law and this Title. In the event of an adverse hearing decision, a social services district is entitled to judicial review pursuant to article 78 of the Civil Practice Law and Rules. The withholding of reimbursement for expenditures incurred pursuant to disapproved portions of a district's plan or annual implementation report begins on the date of the final disapproval or a later date set by the department, and continues until the date on which the corrective action by the district is completed.