(a) In the event that a State fails to submit a biennial State plan
that is approved under Sec. 631.36 of this part, the Secretary shall
make arrangements to use the amount that would be allotted to that State
for the delivery in that State of the programs, activities, and services
authorized under Title III of the Act and this part.
(b) No determination may be made by the Secretary under this section
until the affected State is afforded written notification of the
Secretary's intent to exercise by-pass authority and an opportunity to
request and to receive a hearing before an administrative law judge
pursuant to the provisions of subpart H of part 627 of this chapter.
(c) The Secretary will exercise by-pass authority only until such
time as the affected State has an approved plan under the provisions of
Sec. 631.36 of this part (section 321(b)).