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1 Secretary has reason to believe (because of an audit, report, 2 on-site review or otherwise) that a recipient of financial 3 assistance under the Act is failing to comply with the re4 quirements of the Act, the regulations under the Act, or the 5 terms of the comprehensive employment and training plan, 6 the Secretary shall investigate the matter.

7 "(c) The Secretary may revoke a prime sponsor's 8 comprehensive employment and training plan, including the 9 prime sponsor agreement, and terminate financial assistance 10 thereunder, provided that prior notice and opportunity for a 11 hearing is given, if the Secretary concludes that the prime 12 sponsor is

“(1) maintaining a pattern or practice of discrimination in violation of section 133, or otherwise failing to make opportunities available equitably among the significant segments of the population in the area it

serves;

"(2) incurring unreasonable administrative costs in the conduct of activities and programs, as determined pursuant to the Secretary's regulations;

"(3) failing to give due consideration to continued funding of programs of demonstrated effectiveness; or

"(4) otherwise materially failing to carry out the purposes and provisions of this Act or the regulations promulgated under it.

21

1 "(d) In emergency situations, as determined by the 2 Secretary, when it is necessary to protect the integrity 3 of the program or funds, the Secretary may immediately ter4 minate or suspend financial assistance in whole or in part 5 provided that notice and opportunity for a subsequent hear6 ing are immediately thereafter given to the recipient.

7

"(e) If the Secretary concludes that any recipient of 8 funds under the Act is failing to comply with any pro9 vision of the Act or the regulations under the Act, the 10 Secretary may terminate or suspend financial assistance. 11 in whole or in part or order such sanctions or corrective 12 actions as are appropriate including, but not limited to, 13 the repayment of misspent funds, provided prior notice and 14 an opportunity for a hearing are given to the recipient.

15

"(f) If the Secretary concludes that any recipicnt 16 under this Act has discriminated against a participant, or 17 against any person in connection with the administration of 18 the program, or has otherwise unlawfully denied to any 19 person a benefit to which that person is entitled under the 20 provisions of this Act or the Secretary's regulations, the 21 Secretary may take such action or order such corrective ac22 tion as is necessary with respect to both the recipient and

23 the person who was wronged.

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25

"JUDICIAL REVIEW

"SEC. 107. (a) If any prime sponsor is dissatisfied with

1

2

22

the Secretary's final action with respect to the disapproval

of its comprehensive employment and training plan under 3 section 104 or with the Secretary's final action with respect 4 to a sanction under section 106, such prime sponsor may, 5 within sixty days after notice of such action, file with the 6 United States court of appeals for the circuit in which the 7 prime sponsor is located a petition for review of that action. "(b) The findings of fact by the Secretary, if supported

8

9 by substantial evidence, shall be conclusive; but the court, 10 for good cause shown, may, in whole or in part, set aside 11 the findings of the Secretary or remand the case to the 12 Secretary in whole or in part to take further evidence, and the Secretary may thereupon make new or modified findings of fact and may modify the previous action, and shall certify

13

14

15

16

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to the court the record of the further proceedings.

"REALLOCATION

"SEC. 108. (a) The Secretary is authorized to real18 locate any amount of any allocation under this Act to the 19 extent that the Secretary determines that the recipient will 20 not be able to use such amount within a reasonable period 21 of time.

22 223

"(b) (1) Any allocations to a prime sponsor designated

23 under section 101 (c) may be reallocated only if the Secre24 tary has provided thirty days advance notice to the prime

23

1 sponsor, to the Governor, and to the general public during

2

3

which time comments may be submitted to the Secretary.

"(2) After considering any comments submitted during

4 such time, the Secretary shall notify the Governor and the affected prime sponsor of any decision to reallocate funds, and shall publish such decision in the Federal Register.

5

6

7

8

"(3) In reallocating any such funds, the Secretary

shall give priority first to other prime sponsor areas within 9 the same State and then to prime sponsor areas within other States.

10

11

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"PRIME SPONSOR'S PLANNING COUNCIL

"SEC. 109. (a) Each prime sponsor designated under

13 section 101 (c) shall establish a planning council.

14

"(b) Such council shall consist of members who are 15 representative of the eligible population (including signifi16 cant segments thereof), community-based organizations, the 17 employment service, veterans organizations, vocational edu18 cation agencies, other education and training agencies and 19 institutions, business, labor, and, where appropriate, agricul20 tural employers and workers.

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"(c) The prime sponsor shall appoint the members of 22 the council, designate a public member as chairperson and 23 provide an independent professional, technical and clerical 24 staff accountable solely to the council.

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1. "(d) The planning council shall meet no less than four 2 times per year. The meetings shall be publicly announced, 3 and, to the extent appropriate, open to and accessible to the 4 general public.

5

"(e) The council shall participate in the development of 6 and submit recommendations regarding the prime sponsor's 7 comprehensive employment and training plan and the basic 8 goals, policies, and procedures of the prime sponsor's pro9 grams and other employinent and training programs in the 10 prime sponsor's area; monitor, and provide for objective 11 evaluations of, employment and training programs conducted 12 in such area; and provide for continuing analyses of the need 13 for employment, training, and related services in such area. 14 Any final decision with respect to such recommendations 15 shall be made by the prime sponsor.

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17

"STATE EMPLOYMENT AND TRAINING COUNCIL

"SEC. 110. (a) (1) Any State which desires to receive

18 financial assistance under this Act shall establish a State 19 employment and training council. Funding for the council 20 shall be provided pursuant to section 202 (c).

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"(2) The council shall be appointed by the Governor, 22 who shall designate one public member thereof to be chair23 person. The Governor shall provide an independent profes24 sional, technical and clerical staff accountable solely to the 25 council.