(a) If the Secretary finds that there is a failure to comply substantially with the assurances of Sec. 604.10 then the Secretary, after giving a State reasonable notice and the opportunity for a hearing, shall notify the State that it is ineligible to participate in any applicable program.
(b) To regain eligibility, a State must satisfy the Secretary that the failure to comply has been remedied. (Authority: 20 U.S.C. 1143)