§ 159-l. Decertification and reduction of entity shares. 1. Any
eligible entity that received funding in the previous federal fiscal
year through a community services block grant made under this article
shall not have its funding terminated under this article or reduced
below the proportional share of funding the entity received in the
immediately preceding federal fiscal year, as determined pursuant to
section one hundred fifty-nine-i of this article, unless, after
providing notice and an opportunity for a hearing on the record, the
state determines that cause exists for such termination or such
reduction, subject to review by the secretary of the United States
department of health and human services. For purposes of making a
determination that cause exists for:

(a) a funding reduction, the term "cause" shall include

(1) a statewide redistribution of funds provided through a community
services block grant under this article to respond to

(A) the results of the most recently available census or other
appropriate data;

(B) the designation of a new eligible entity; or

(C) severe economic dislocation; and

(2) the failure of an eligible entity to comply with the terms of an
agreement or a state plan, or to meet a state requirement, as described
in this section; or

(b) a termination, the term "cause" includes the failure of an
eligible entity to comply with the terms of an agreement or a state
plan, or to meet a state requirement, as described in this section.

2. If the state determines, on the basis of a final decision in a
review pursuant to this article, that an eligible entity fails to comply
with the terms of an agreement or the state plan to provide services
under this article or to meet appropriate standards, goals, and other
requirements established by the state (including performance
objectives), the state shall:

(a) inform the entity of the deficiency to be corrected;

(b) require the entity to correct the deficiency;

(c) (1) offer training and technical assistance, if appropriate, to
help correct the deficiency, and prepare and submit to the secretary of
the United States department of health and human services a report
stating the reasons for the determination; or

(2) if the state determines that such training and technical
assistance are not appropriate, it shall prepare and submit to the
secretary of the United States department of health and human services a
report stating the reasons for the determination;

(d) (1) at the discretion of the state (taking into account the
seriousness of the deficiency and the time reasonably required to
correct the deficiency), allow the entity to develop and implement and
submit to the state, within sixty days after being informed of the
deficiency, a quality improvement plan to correct such deficiency within
a reasonable period of time, as determined by the state; and

(2) not later than thirty days after receiving from an eligible entity
a proposed quality improvement plan pursuant to subparagraph one of this
paragraph, either approve such proposed plan or specify the reasons why
the proposed plan cannot be approved; and

(e) after providing adequate notice and an opportunity for a hearing,
initiate proceedings to terminate the designation of or reduce the
funding under this article of the eligible entity unless the entity
corrects the deficiency.

3. A determination to terminate the designation or reduce the funding
of an eligible entity pursuant to subdivision two of this section is
reviewable by the secretary of the United States department of health
and human services, pursuant to the processes set forth in the federal
community services block grant act of 1981, as amended.