CFR > Title 20 - Employees' Benefits > CHAPTER V—EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR > PART 627—GENERAL PROVISIONS GOVERNING PROGRAMS UNDER TITLES I, II, AND III OF THE ACT > SUBPART D—Administrative Standards (§627.400 to §627.495) > 627.477—Governor's determination of substantial violation.

627.477—Governor's determination of substantial violation.

(a) Except as provided at paragraph (d) of this section, 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
(1) Issue a notice of intent to revoke approval of all or part of the plan affected; or
(2) 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 ( section 164(b)(1) ).
(b) (1) The actions taken by the Governor pursuant to paragraph (a)(1) of this section may be appealed to the Secretary as provided at § 628.426 of this chapter ( section 164(b)(2)(A) ).
(2) The actions taken by the Governor pursuant to paragraph (a)(2) of this section may be appealed to the Secretary, as provided at § 627.471 of this part ( section 164(b)(2)(B) ).
(c) Allegations that the Governor failed to promptly take the actions required under paragraph (a) of this section shall be handled under § 627.607 of this part ( section 164(b)(3) ).
(d) This section does not apply to remedial actions for SDA failures to meet performance standards, which are provided for at § 627.470 of this part, and do not apply to remedial actions for the failure to comply with procurement standards, which are provided for at § 627.703 of this part.