106 STAT. 1228 PUBLIC LAW 102-375—SEPT. 30, 1992 "(A) not duplicate case management services provided through other Federal and State programs; "(B) be coordinated with services described in subparagraph (A); and "(C) be provided by— "(i) a public agency; or "(ii) a nonprofit private agency that— "(I) does not provide, and does not have a direct or indirect ownership or controlling interest in, or a direct or indirect affiliation or relationship vtrith, an entity that provides, services other than case management services under this title; or "(11) is located in a rurtd area and obtains a waiver of the requirement described in subclause (I).". (g) WITHHOLDING OF AREA FUNDS.—Section 306 of the Older Americans Act of 1965 (42 U.S.C. 3026) is amended by adding at the end the following: "(e)(1) If the head of a State agency finds that an area agency on aging has failed to comply with Federed or State laws, including the area plan requirement of this section, regulations, or policies, the State may withhold a portion of the funds to the area agency on aging available under this title. "(2)(A) The head of a State agency shall not make a final determination withholding funds under paragraph (1) without first affording the area agency on aging due process in accordance with procedures established by the State agency. "(B) At a minimum, such procedures shall include procedures for— "(i) providing notice of an action to withhold funds; "(ii) providing documentation of the need for such action; and "(iii) at the request of the area agency on aging, conducting a public hearing concerning the action. "(3)(A) If a State agency withholds the funds, the State agency may use the funds withheld to directly administer programs under this title in the planning and service area served by the area agency on aging for a period not to exceed 180 days, except as provided in subparagraph (B). "(B) If the State agency determines that the area agency on aging has not taken corrective action, or if the State agency does not approve the corrective action, during the 180-aay period described in subparagraph (A), the State agency may extend the period for not more than 90 days.". SEC. 307. STATE PLANS. (a) COMPLIANCE WITH TITLE III.— Section 307(a) of the Older Americans Act of 1965 (42 U.S.C. 3027(a)) is amended— (1) in the first sentence by inserting "the succeeding sentence and" after "provided in"; (2) by inserting after the first sentence the following: "If the Commissioner determines, in the discretion of the Commissioner, that a State failed in 2 successive years to comply with the requirements under this title, then the State shall submit to the Commissioner a State plan for a 1-year period that meets such criteria, for subsequent years until the Commissioner deter-
�
