112 STAT. 1044 PUBLIC LAW 105-220—AUG. 7, 1998 Deadline. (7) ACTION BY THE SECRETARY.— 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 (e) in the event of failure of the Governor to take the required appropriate action to secure compliance. (b) SUBSTANTIAL VIOLATION.— (1) ACTION BY GOVERNOR.— 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 title, 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 local plan affected; or (B) impose a reorganization plan, which may include— (i) decertifying the local board involved; (ii) prohibiting the use of eligible providers; (iii) selecting an alternative entity to administer the program for the local area involved; (iv) merging the local area into oiie or more other local areas; or (v) making other such changes as the Secretary or Governor determines necessary to secure compliance. (2) APPEAL.— (A) IN GENERAL. — The actions taken by the Governor pursuant to subparagraphs (A) and (B) of paragraph (1) may be appealed to the Secretary and shall not become effective until— (i) the time for appeal has expired; or (ii) the Secretary has issued a decision. (B) ADDITIONAL REQUIREMENT.— The Secretary shall make a final decision under subparagraph (A) not later than 45 days after the receipt of the appeal. (3) ACTION BY THE SECRETARY.— If the Governor fails to promptly take the actions required under paragraph (1), the Secretary shall take such actions. (c) REPAYMENT OF CERTAIN AMOUNTS TO THE UNITED STATES. — (1) IN GENERAL. —Every recipient of funds under this title shall repay to the United States amounts found not to have been expended in accordance with this title. (2) OFFSET OF REPAYMENT. —If the Secretary determines that a State has expended funds made available under this title in a manner contrary to the requirements of this title, the Secretary may offset repayment of such expenditures against any other amount to which the State is or may be entitled, except as provided under subsection (d)(1). (3) REPAYMENT FROM DEDUCTION BY STATE. —If the Secretary requires a State to repay funds as a result of a determination that a local area of the State has expended funds contrary to the requirements of this title, the Governor of the State may use an amount deducted under paragraph (4) to repay the funds, except as provided under subsection (e)(1). (4) DEDUCTION BY STATE. — The Governor may deduct an amount equal to the misexpenditure described in paragraph
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