C. In the administration of the plan, there is a failure to comply substantially with any such provision of subsection 1, paragraphs A to I, the director shall notify the area agency that no further payments from its allotments under sections 306 337 and 5115 will be made to the agency or, in his the director's discretion, that further payments to the agency will be limited to projects under or portions of the area plan not affected by the failure, until he the director is satisfied that there will no longer be any failure to comply. Until he the director is so satisfied, no further payments may not be made to the agency from its allotments under section 5115, or payments may be limited to projects under or portions of the area plan not affected by the failure. The director shall, in accordance with regulations he shall prescribe rules adopted by the director, disburse funds so withheld directly to any public or nonprofit private organization or agency of the area, submitting an approved plan in accordance with section 5116. Any payment or payments shall must be matched in the proportions specified in section 5116.

Sec. 31. 22 MRSA §8103, sub-§1, as amended by PL 2001, c. 515, §1 and c. 596, Pt. B, §19 and affected by §25, is repealed and the following enacted in its place:

1.__Procedures.__All procedures and other provisions included in section 7855, subsections 1 and 2 for residential care facilities also apply to children's homes, except that the written statement referred to in section 7855, subsection 1 need not be furnished annually by the Commissioner of Public Safety to the department for a facility licensed as a family foster home or a specialized children's home.__In these instances an inspection must be performed every 2 years.

Sec. 32. 24-A MRSA §2808-B, sub-§1, ¶D, as amended by PL 2001, c. 258, Pt. E, §3 and c. 400, §1 and affected by §2, is repealed and the following enacted in its place:

D.__"Eligible group" means any person, firm, corporation, partnership, association or subgroup engaged actively in a business that employed an average of 50 or fewer eligible employees during the preceding calendar year.

(1)__If an employer was not in existence throughout the preceding calendar year, the determination must be based on the average number of employees that the