§ 1234d. — Withholding.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 20USC1234d]
TITLE 20--EDUCATION
CHAPTER 31--GENERAL PROVISIONS CONCERNING EDUCATION
SUBCHAPTER IV--ENFORCEMENT
Sec. 1234d. Withholding
(a) Discretionary authority over further payments under applicable
program
In accordance with section 1234c of this title, the Secretary may
withhold from a recipient, in whole or in part, further payments
(including payments for administrative costs) under an applicable
program.
(b) Notice requirements
Before withholding payments, the Secretary shall notify the
recipient, in writing, of--
(1) the intent to withhold payments;
(2) the factual and legal basis for the Secretary's belief that
the recipient has failed to comply substantially with a requirement
of law; and
(3) an opportunity for a hearing to be held on a date at least
30 days after the notification has been sent to the recipient.
(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 payments 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 future
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 conclusive. However, the Secretary, for good cause shown, may
remand the case to the Office to take further evidence, and the Office
may thereupon make new or modified findings of fact and may modify its
previous action. Such new or modified findings of fact shall likewise be
conclusive 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
action when the recipient receives written notice of the Secretary's
action; or
(2) remands the decision of the Office.
(Pub. L. 90-247, title IV, Sec. 455, as added Pub. L. 95-561, title XII,
Sec. 1232, Nov. 1, 1978, 92 Stat. 2350; amended Pub. L. 100-297, title
III, Sec. 3501(a), Apr. 28, 1988, 102 Stat. 354.)
Amendments
1988--Pub. L. 100-297 amended section generally, substituting
provisions relating to withholding for provisions relating to judicial
review. See section 1234g of this title.
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.
Section Referred to in Other Sections
This section is referred to in sections 1234, 1234c, 1234g, 6362,
6777 of this title.
