New Jersey -
We have crews all season long and only crews are allowed to work in the playoffs. There are some isolated cases where a crew member gets injured and we allow for a sub. We typically have 3 rounds (unless only 4 teams make the group).
The quarterfinal rounds are done locally by our local chapter.
The state gets a list of top crews for semi-final and final assignments. For both of these 2 rounds we usually get sent out of district, but we've had local crews who worked local championships. I'm not 100% sure if these are hard and fast rules for the latter rounds.
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