use of swift, predictable, and graduated sanctions for noncompliance with program rules, in Federal judicial districts selected by the Administrative Office of the United States Courts in consultation with the Attorney General. (2) Requirements of program Participation in the pilot program shall be subject to the following requirements: (A) Upon entry of participants into the pilot program, the court shall notify the program participants of the rules of the program and consequences for violating such rules, including the penalties to be imposed as a result of such violations pursuant to subparagraph (E). (B) Probation officers shall conduct regular drug testing of all pilot program participants with a history of substance abuse. (C) If a probation officer determines that a participant has violated a term of supervised release, the officer shall notify the court within 24 hours of such determination, absent good cause. (D) As soon as is practicable, and not later than 7 days after the violation was reported by the probation officer, absent good cause, the court shall conduct a hearing on the alleged violation. (E) If the court determines that a program participant has violated a term of supervised release, the court shall impose an appropriate sanction, which may include the following, if appropriate: (i) Modification of the terms of such participant’s supervised release, which may include imposition of a period of home confinement. (ii) Referral to appropriate substance abuse treatment. (iii) Revocation of the participant’s supervised release and the imposition of a sentence of incarceration that is no longer than necessary to punish the participant for such violation and deter the participant from committing future violations. (iv) For participants who habitually fail to abide by program rules or pose a threat to public safety, termination from the program. (3) Status of participant if incarcerated (A) In general If a program participant is sentenced to incarceration as described in paragraph (2)(E)(iii), the