; (II) provider payment system; (III) claims processing system; (IV) fair hearing system; and (V) Federal reporting requirement system; or (ix) take any other punitive action against a political subdivision that establish a demonstration project. (8) Timeline specified For purposes of paragraph (1), the timeline specified in this paragraph shall require— (A) not later than 180 days after the date of the enactment of this subsection, the Secretary to promulgate any regulations necessary to carry out this subsection, including— (i) the application requirements for a political subdivision to apply for a demonstration project, criteria on which applications will be reviewed, and how long political subdivisions have to begin the demonstration once an application is approved; and (ii) the application of all requirements under section 1903 to a participating political subdivision as if it was a State; (B) not later than 180 days after receiving an application from a qualifying political subdivision described in paragraph (3), the Secretary to transmit a notice to such qualifying political subdivision of the application’s approval or rejection, and in case of a rejection an explanation for the rejection