---
kind: "section"
citation: "45 C.F.R. § 2550.60"
title: "45"
number: "2550.60"
heading: "From which of the State Commission requirements is an Alternative Administrative Entity exempt?"
url: "https://uscodex.org/cfr/45/2550.60"
---

# §2550.60. From which of the State Commission requirements is an Alternative Administrative Entity exempt?

- (a) **An AAE is not automatically exempt from any of the requirements that govern State Commissions.** However, there are three specific State Commission requirements which the Corporation may waive if a State can demonstrate that one or more of them is impossible or unreasonable to meet. If the Corporation waives a State Commission requirement for a State entity, that State entity is, de facto, an AAE. The three criteria which may be waived for an AAE are as follows:
  - (1) **The requirement that a State's chief executive officer appoint the members of a State Commission.** If a State can offer a compelling reason why some or all of the State Commission members should be appointed by the State legislature or by some other appropriate means, the Corporation may grant a waiver.
  - (2) **The requirement that a State Commission have 15-25 members.** If a State compellingly demonstrates why its commission should have a larger number of members, the Corporation may grant a waiver.
  - (3) **The requirement that not more than 50% plus one of the State Commission's voting members be from the same political party.** This requirement was established to prevent State Commissions from being politically motivated or controlled; however, in some States it is illegal to require prospective members to provide information about political party affiliation. For this or another compelling reason, the Corporation may grant a waiver.
- (b) Again, any time the Corporation grants one or more of these waivers for a State entity, that entity becomes an AAE; in all other respects an AAE is the same as a State Commission, having the same requirements, rights, duties and responsibilities.

## Notes

### Authority

Authority: 42 U.S.C. 12638.

### Source

Source: 58 FR 60981, Nov. 18, 1993, unless otherwise noted.