20 U.S.C. § 1234f — Compliance agreements

Page 922 TITLE 20—EDUCATION § 1234e (c) Hearing The hearing shall be held before the Office and shall be conducted in accordance with the rules prescribed pursuant to subsections (f) and (g) of section 1234 of this title. (d) Suspension of payments, authorities, etc. Pending the outcome of any hearing under this section, the Secretary may suspend pay- ments to a recipient, suspend the authority of the recipient to obligate Federal funds, or both, after such recipient has been given reasonable notice and an opportunity to show cause why fu- ture payments or authority to obligate Federal funds should not be suspended. (e) Findings of fact Upon review of a decision of the Office by the Secretary, the findings of fact by the Office, if supported by substantial evidence, shall be con- clusive. However, the Secretary, for good cause shown, may remand the case to the Office to take further evidence, and the Office may there- upon make new or modified findings of fact and may modify its previous action. Such new or modified findings of fact shall likewise be con- clusive if supported by substantial evidence. (f) Final agency action The decision of the Office in any hearing under this section shall become final agency action 60 days after the recipient receives written notice of the decision unless the Secretary either— (1) modifies or sets aside the decision, in whole or in part, in which case the decision of the Secretary shall become final agency ac- tion when the recipient receives written no- tice of the Secretary’s action; or (2) remands the decision of the Office. (Pub. L. 90–247, title IV, § 455, as added Pub. L. 95–561, title XII, § 1232, Nov. 1, 1978, 92 Stat. 2350; amended Pub. L. 100–297, title III, § 3501(a), Apr. 28, 1988, 102 Stat. 354.) Editorial Notes AMENDMENTS 1988—Pub. L. 100–297 amended section generally, sub- stituting provisions relating to withholding for provi- sions relating to judicial review. See section 1234g of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–297 effective 180 days after Apr. 28, 1988, but not applicable to recipients receiving written notice to return funds prior to that date, see section 3501(b) of Pub. L. 100–297, set out as a note under section 1234 of this title. § 1234e. Cease and desist orders (a) Issuance and contents of complaint In accordance with section 1234c of this title, the Secretary may issue to a recipient under an applicable program a complaint which— (1) describes the factual and legal basis for the Secretary’s belief that the recipient is fail- ing to comply substantially with a require- ment of law; and (2) contains a notice of a hearing to be held before the Office on a date at least 30 days after the service of the complaint. (b) Appearance contesting order The recipient upon which a complaint has been served shall have the right to appear before the Office on the date specified and to show cause why an order should not be entered by the Office requiring the recipient to cease and desist from the violation of law charged in the com- plaint. (c) Report; issuance of cease and desist order The testimony in any hearing held under this section shall be reduced to writing and filed with the Office. If upon that hearing the Office is of the opinion that the recipient is in viola- tion of any requirement of law as charged in the complaint, the Office shall— (1) make a report in writing stating its find- ings of fact; and (2) issue to the recipient an order requiring the recipient to cease and desist from the practice, policy, or procedure which resulted in the violation. (d) Report and order as final agency action The report and order of the Office under this section shall become the final agency action when the recipient receives the report and order. (e) Enforcement of final order The Secretary may enforce a final order of the Office under this section which becomes final agency action by— (1) withholding from the recipient any por- tion of the amount payable to it, including the amount payable for administrative costs, under the applicable program; or (2) certifying the facts to the Attorney Gen- eral who shall cause an appropriate proceeding to be brought for the enforcement of the order. (Pub. L. 90–247, title IV, § 456, as added Pub. L. 95–561, title XII, § 1232, Nov. 1, 1978, 92 Stat. 2351; amended Pub. L. 100–297, title III, § 3501(a), Apr. 28, 1988, 102 Stat. 355.) Editorial Notes AMENDMENTS 1988—Pub. L. 100–297 amended section generally, sub- stituting provisions relating to cease and desist orders for provisions relating to use of recovered funds. See section 1234h of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–297 effective 180 days after Apr. 28, 1988, but not applicable to recipients receiving written notice to return funds prior to that date, see section 3501(b) of Pub. L. 100–297, set out as a note under section 1234 of this title. § 1234f. Compliance agreements (a) Discretionary authority; purposes of agree- ment In accordance with section 1234c of this title, the Secretary may enter into a compliance agreement with a recipient under an applicable program. The purpose of any compliance agree- ment under this section shall be to bring the re- cipient into full compliance with the applicable requirements of law as soon as feasible and not to excuse or remedy past violations of such re- quirements. Page 923 TITLE 20—EDUCATION § 1234h (b) Procedures applicable (1) Before entering into a compliance agree- ment with a recipient, the Secretary shall hold a hearing at which the recipient, affected stu- dents and parents or their representatives, and other interested parties are invited to partici- pate. The recipient shall have the burden of per- suading the Secretary that full compliance with the applicable requirements of law is not fea- sible until a future date. (2) If the Secretary determines, on the basis of all the evidence presented, that full compliance is genuinely not feasible until a future date, the Secretary shall make written findings to that effect and shall publish those findings, along with the substance of any compliance agree- ment, in the Federal Register. (c) Contents A compliance agreement under this section shall contain— (1) an expiration date not later than 3 years from the date of the written findings under subsection (b)(2), by which the recipient shall be in full compliance with the applicable re- quirements of law, and (2) those terms and conditions with which the recipient must comply until it is in full compliance. (d) Failure of recipient to comply with terms and conditions If a recipient fails to comply with the terms and conditions of a compliance agreement under this section, the Secretary may consider that compliance agreement to be no longer in effect, and the Secretary may take any action author- ized by law with respect to the recipient. (Pub. L. 90–247, title IV, § 457, as added Pub. L. 100–297, title III, § 3501(a), Apr. 28, 1988, 102 Stat. 355.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 180 days after Apr. 28, 1988, but not applicable to recipients receiving written notice to re- turn funds prior to that date, see section 3501(b) of Pub. L. 100–297, set out as an Effective Date of 1988 Amend- ment note under section 1234 of this title. § 1234g. Judicial review (a) Recipients entitled to review; stay of action by Secretary Any recipient of funds under an applicable program that would be adversely affected by a final agency action under section 1234a, 1234d, or 1234e of this title, and any State entitled to re- ceive funds under a program described in section 1232d(a) of this title whose application has been disapproved by the Secretary, shall be entitled to judicial review of such action in accordance with the provisions of this section. The Sec- retary may not take any action on the basis of a final agency action until judicial review is completed. (b) Petition for review; filing of record A recipient that desires judicial review of an action described in subsection (a) shall, within 60 days of that action, file with the United States Court of Appeals for the circuit in which that recipient is located, a petition for review of such action. A copy of the petition shall be transmitted by the clerk of the court to the Sec- retary. The Secretary shall file in the court the record of the proceedings on which the action was based, as provided in section 2112 of title 28. (c) Findings of fact The findings of fact by the Office, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Office to take further evidence, and the Office may make new or modified find- ings of fact and may modify its previous action, and shall certify to the court the record of the further proceedings. Such new or modified find- ings of fact shall likewise be conclusive if sup- ported by substantial evidence. (d) Scope of review; review by Supreme Court The court shall have jurisdiction to affirm the action of the Office or the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28. (Pub. L. 90–247, title IV, § 458, as added Pub. L. 100–297, title III, § 3501(a), Apr. 28, 1988, 102 Stat. 356; amended Pub. L. 103–382, title II, § 212(b)(3)(D), Oct. 20, 1994, 108 Stat. 3913.) Editorial Notes AMENDMENTS 1994—Subsec. (a). Pub. L. 103–382 made technical amendment to reference to section 1232d(a) of this title to reflect renumbering of corresponding section of original act. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 180 days after Apr. 28, 1988, but not applicable to recipients receiving written notice to re- turn funds prior to that date, see section 3501(b) of Pub. L. 100–297, set out as an Effective Date of 1988 Amend- ment note under section 1234 of this title. § 1234h. Use of recovered funds (a) Repayment to recipient; factors considered Whenever the Secretary recovers funds paid to a recipient under a grant or cooperative agree- ment made under an applicable program because the recipient made an expenditure of funds that was not allowable, or otherwise failed to dis- charge its responsibility to account properly for funds, the Secretary may consider those funds to be additional funds available for that pro- gram and may arrange to repay to the recipient affected by that action an amount not to exceed 75 percent of the recovered funds if the Sec- retary determines that— (1) the practices or procedures of the recipi- ent that resulted in the violation of law have been corrected, and that the recipient is in all other respects in compliance with the require- ments of that program, provided that the re- cipient was notified of any noncompliance with such requirements and given a reasonable period of time to remedy such noncompliance;