of the agency under this Act in an amount not less than 25 percent of such allotment. (B) Transition period The requirement under this paragraph shall take effect with respect to a State apprenticeship agency on the date that is 1 day after the date on which the transition period for such agency under subsection (a)(3)(C)(ii) ends. (e) Derecognition of State Apprenticeship Agencies (1) In general The Secretary may withdraw recognition of a State apprenticeship agency before the end of the agency’s 4-year recognition period under subsection (a)(2)(B) if the Secretary determines, after notice and an opportunity for a hearing, that the State apprenticeship agency has failed for one of the reasons described in paragraph (2), and has not been in compliance with the performance improvement plan under paragraph (3) to remedy such failure. (2) Derecognition criteria The recognition of a State apprenticeship agency under this section may be withdrawn under paragraph (1) in a case in which the State apprenticeship agency fails to— (A) adopt or properly enforce a State plan