 
           CHAPTER 31--GENERAL PROVISIONS CONCERNING EDUCATION
 
SUBCHAPTER III--GENERAL REQUIREMENTS AND CONDITIONS CONCERNING OPERATION 
AND ADMINISTRATION OF EDUCATION PROGRAMS: GENERAL AUTHORITY OF SECRETARY
 
Part 3--Administration of Education Programs and Projects by States and 
                       Local Educational Agencies
 
Sec. 1232c. State agency monitoring and enforcement


(a) State plan

    In the case of any applicable program in which Federal funds are 
made available to local agencies in a State through or under the 
supervision of a State board or agency, the Secretary may require the 
State to submit a plan for monitoring compliance by local agencies with 
Federal requirements under such program and for enforcement by the State 
of such requirements. The Secretary may require such plan to provide--
        (1) for periodic visits by State personnel of programs 
    administered by local agencies to determine whether such programs 
    are being conducted in accordance with such requirements;
        (2) for periodic audits of expenditures under such programs by 
    auditors of the State or other auditors not under the control, 
    direction, or supervision of the local educational agency; and
        (3) that the State investigate and resolve all complaints 
    received by the State, or referred to the State by the Secretary, 
    relating to the administration of such programs.

(b) State enforcement of Federal requirements

    In order to enforce the Federal requirements under any applicable 
program the State may--
        (1) withhold approval, in whole or in part, of the application 
    of a local agency for funds under the program until the State is 
    satisfied that such requirements will be met; except that the State 
    shall not finally disapprove such an application unless the State 
    provides the local agency an opportunity for a hearing before an 
    impartial hearing officer and such officer determines that there has 
    been a substantial failure by the local agency to comply with any of 
    such requirements;
        (2) suspend payments to any local agency, in whole or in part, 
    under the program if the State has reason to believe that the local 
    agency has failed substantially to comply with any of such 
    requirements, except that (A) the State shall not suspend such 
    payments until fifteen days after the State provides the local 
    agency an opportunity to show cause why such action should not be 
    taken and (B) no such suspension shall continue in effect longer 
    than sixty days unless the State within such period provides the 
    notice for a hearing required under paragraph (3) of this 
    subsection;
        (3) withhold payments, in whole or in part, under any such 
    program if the State finds, after reasonable notice and opportunity 
    for a hearing before an impartial hearing officer, that the local 
    agency has failed substantially to comply with any of such 
    requirements.

(c) Withholding of payments

    Any withholding of payments under subsection (b)(3) of this 
subsection \1\ shall continue until the State is satisfied that there is 
no longer a failure to comply substantially with any of such 
requirements.
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    \1\ So in original. Probably should be ``section''.
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(Pub. L. 90-247, title IV, Sec. 440, formerly Sec. 434, as added Pub. L. 
95-561, title XII, Sec. 1231(a)(3), Nov. 1, 1978, 92 Stat. 2342; 
renumbered Sec. 440 and amended Pub. L. 103-382, title II, 
Secs. 212(b)(1), 261(e), Oct. 20, 1994, 108 Stat. 3913, 3927.)


                            Prior Provisions

    A prior section 1232c, Pub. L. 90-247, title IV, Sec. 434, formerly 
Sec. 424, as added Pub. L. 91-230, title IV, Sec. 401(a)(10), Apr. 13, 
1970, 84 Stat. 169; renumbered Sec. 434 and amended Pub. L. 92-318, 
title III, Sec. 301(a)(1), title V, Sec. 501, June 23, 1972, 86 Stat. 
326, 345; Pub. L. 93-380, title V, Secs. 510, 511(a), Aug. 21, 1974, 88 
Stat. 568, 569; Pub. L. 94-482, title V, Sec. 501(f)(1), Oct. 12, 1976, 
90 Stat. 2237, related to administration of education programs and 
projects, prior to repeal by section 1231(a)(3) of Pub. L. 95-561.
    A prior section 440 of Pub. L. 90-247 was renumbered section 446, 
and is classified to section 1232i of this title.


                               Amendments

    1994--Pub. L. 103-382, Sec. 261(e)(1), struck out ``educational'' 
after ``State'' in section catchline.
    Subsec. (a). Pub. L. 103-382, Sec. 261(e)(2)(A), substituted 
``Secretary'' for ``Commissioner'' wherever appearing.
    Subsecs. (b), (c). Pub. L. 103-382, Sec. 261(e)(2)(B), (C), 
redesignated provision following par. (3) of subsec. (b) as subsec. (c) 
and substituted ``subsection (b)(3)'' for ``paragraph (3)''.


                             Effective Date

    Section 1261 of Pub. L. 95-561 provided that: ``The amendments made 
by section 1231 [enacting this section and sections 1232d, 1232e, and 
1232f of this title and amending section 1088f-1 of this title] shall 
take effect with respect to appropriations for fiscal year 1980 and 
subsequent fiscal years. The amendments made by section 1232 [enacting 
sections 1234, 1234a, 1234b, 1234c, 1234d, and 1234e of this title] 
shall take effect 120 days after the enactment of this Act [Nov. 1, 
1978].''


  Applicability of Administrative Procedure to Office of Education or 
      Actions by Commissioner Unaffected by Subsections (b) to (e)

    Pub. L. 93-380, title V, Sec. 511(b)(2), Aug. 21, 1974, 88 Stat. 
571, provided that nothing in the amendment made by subsec. (a) of 
section 511 of Pub. L. 93-380, which enacted prior subsecs. (b) to (e) 
and deleted former subsec. (b) of this section, would be construed to 
affect the applicability of chapter 5 of Title 5, Government 
Organization and Employees, to the Office of Education or actions by the 
Commissioner.
