(a) If a local area fails to meet the adjusted levels of performance agreed to under § 361.210 for the primary indicators of performance in the adult, dislocated worker, and youth programs authorized under WIOA title I in any program year, technical assistance must be provided by the Governor or, upon the Governor's request, by the Secretary of Labor.

1. (1) A State must establish the threshold for failure to meet adjusted levels of performance for a local area before coming to agreement on the negotiated levels of performance for the local area.

   1. (i) A State must establish the adjusted level of performance for a local area, using the statistical adjustment model described in § 361.170(c).
   2. (ii) At least 2 years of complete data on any indicator for any local core program are required in order to establish adjusted levels of performance for a local area.

2. (2) The technical assistance may include:

   1. (i) Assistance in the development of a performance improvement plan;
   2. (ii) The development of a modified local or regional plan; or
   3. (iii) Other actions designed to assist the local area in improving performance.

(b) If a local area fails to meet the adjusted levels of performance agreed to under § 361.210 for the same primary indicators of performance for the same core program authorized under WIOA title I for a third consecutive program year, the Governor must take corrective actions. The corrective actions must include the development of a reorganization plan under which the Governor:

1. (1) Requires the appointment and certification of a new Local WDB, consistent with the criteria established under 20 CFR 679.350;
2. (2) Prohibits the use of eligible providers and one-stop partners that have been identified as achieving poor levels of performance; or
3. (3) Takes such other significant actions as the Governor determines are appropriate.