106 STAT. 1048 PUBLIC LAW 102-367 —SEPT. 7, 1992 "(B) impose the sanctions provided under subsection (b) in the event of failure to take the required corrective action. "(6) The Governor shall biennially certify to the Secretary that— "(A) the State has implemented the procurement standards established under paragraph (3); "(B) the State has monitored substate areas and service delivery areas to ensure compliance with the procurement standards as required under paragraph (4); and "(C) the State has taken appropriate action to secure compliance pursuant to paragraph (5). "(7) If the Secretary determines that the Governor has not fulfilled the requirements of this subsection, the Secretary shall— "(A) require corrective action to secure prompt compliance; and "(B) impose the sanctions provided under subsection (f) in the event of failure of the Governor to take the required corrective action. Reports. "(8) The Secretary, in consultation with the Inspector General, shall review the implementation of this subsection and submit a report to the appropriate committees of the Congress, not later than October 1, 1995, evaluating the effectiveness of this subsection in ensuring fiscal accountability and containing such recommendations as the Secretary determines to be appropriate.". (b) CONSEQUENCES OF FAILURES. —Section 164(b) of the Act (29 U.S.C. 1574(b)) is amended to read as follows: "(b)(1) If, as a result of financial and compliance audits or otherwise, the Governor determines that there is a substantial violation of a specific provision of this Act or the regulations under this Act, and corrective action has not been taken, the Governor shall— "(A) issue a notice of intent to revoke approval of all or part of the plan affected; or "(B) impose a reorganization plan, which may include— "(i) restructuring the private industry council involved; "(ii) prohibiting the use of designated service providers; "(iii) selecting an alternative entity to administer the program for the service delivery area involved; "(iv) merging the service delivery area into 1 or more other existing service delivery areas; or "(v) other such changes as the Secretary or Governor determines necessary to secure compliance. "(2)(A) The actions taken by the Governor pursuant to paragraph (1)(A) may be appealed to the Secretary under the same terms and conditions as the disapproval of the plan and shall not become effective until— "(i) the time for appeal has expired; or "(ii) the Secretary has issued a decision. "(B) The actions taken by the Governor pursuant to paragraph (1)(B) may be appealed to the Secretary, who shall make a final decision not later than 60 days of the receipt of the appeal. "(3) If the Governor fails to promptly take the actions required under paragraph (1), the Secretary shall take such actions.". SEC. 143. REPORTS, RECORDKEEPING, AND INVESTIGATIONS. (a) STANDARDIZED RECORDS. —Section 165(a) of the Act (29 U.S.C. 1575(a)) is amended by adding at the end the following new paragraphs:
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