106 STAT. 1034 PUBLIC LAW 102-367—SEPT. 7, 1992 performance, including the selection of an alternative administrative entity to administer the program for the service delivery area. "(C) ALTERNATIVE ADMINISTRATIVE ENTITY SELECTION. — The alternative administrative entity described in subparagraph (B) may be a newly formed private industry council or any agency jointly selected by the Governor and the chief elected official of the largest unit of general local government in the service delivery area or substate area. "(5) SECRETARIAL ACTION.— "(A) PLAN. —If the Governor has not imposed a reorganization plan as required by paragraph (4) within 90 days of the end of the second program year in which a service delivery area has failed to meet its performance standards, the Secretary shall develop and impose such a plan. "(B) RECAPTURE OR WITHHOLDING.— The Secretary shall recapture or withhold an amount not to exceed one-fifth of the State administration set-aside allocated under section 202(c)(1)(A) and under section 262(c)(1)(A), for the purposes of providing technical assistance under a reorganization plan imposed pursueuit to subparagraph (A). "(6) APPEAL BY SERVICE DELIVERY AREA.— "(A) TIMING. —^A service delivery area that is the subject of a reorganization plan under paragraph (4) may, within 30 days after receiving notice thereof, appeal to the Secretary to rescind or revise such plan. "(B) RECAPTURE OR WITHHOLDING.— "(i) DETERMINATION.— If the Secretary determines, upon appegil under subparagraph (A), that the Governor has not provided appropriate technical assisteince as required under paragraph (2), the Secretary shall recapture or withhold an amount not to exceed onefifth of the State administration set-aside allotted under section 202(c)(1)(A) and under section 262(c)(1)(A). The Secretary shall use funds recaptured or withheld under this subparagraph to provide appropriate technical assistance. "(ii) BASIS. —If the Secretary approved the techniced assistance plan provided by the Governor under paragraph (2), a determination under this subparagraph shall only be based on failure to effectively implement such plan and shall not be based on the plan itself. "(7) APPEAL BY GOVERNOR.—A Governor of a State that is subject to recapture or withholding under paragraph (5) or (6)(B) may, within 30 days of receiving notice thereof, appeal such withholding to the Secretary, "(k) CLARIFICATION OR REFERENCE. —For the purposes of this section, the term 'employment' means employment for 20 or more hours per week.". (b) CONFORMING AMENDMENT.— Sections 311(a), 311(b)(8), and 322(a)(4) (29 U.S.C. 1661(a), 1661(b)(8), and 1662a(a)(4)) are each amended by striking "106(g)" and inserting "106(c)". SEC. 116. SELECTION OF SERVICE PROVIDERS. (a) SELECTION GUIDELINES. — Section 107(a) of the Act (29 U.S.C. 1517(a)) is amended—
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