§ 1234h. — Use of recovered funds.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 20USC1234h]
TITLE 20--EDUCATION
CHAPTER 31--GENERAL PROVISIONS CONCERNING EDUCATION
SUBCHAPTER IV--ENFORCEMENT
Sec. 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 agreement made under an applicable program because
the recipient made an expenditure of funds that was not allowable, or
otherwise failed to discharge its responsibility to account properly for
funds, the Secretary may consider those funds to be additional funds
available for that program 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 Secretary determines that--
(1) the practices or procedures of the recipient that resulted
in the violation of law have been corrected, and that the recipient
is in all other respects in compliance with the requirements of that
program, provided that the recipient was notified of any
noncompliance with such requirements and given a reasonable period
of time to remedy such noncompliance;
(2) the recipient has submitted to the Secretary a plan for the
use of those funds pursuant to the requirements of that program and,
to the extent possible, for the benefit of the population that was
affected by the failure to comply or by the misuse of funds that
resulted in the recovery; and
(3) the use of those funds in accordance with that plan would
serve to achieve the purposes of the program under which the funds
were originally paid.
(b) Terms and conditions of repayment
Any payments by the Secretary under this section shall be subject to
such other terms and conditions as the Secretary considers necessary to
accomplish the purposes of the affected programs, including--
(1) the submission of periodic reports on the use of funds
provided under this section; and
(2) consultation by the recipient with students, parents, or
representatives of the population that will benefit from the
payments.
(c) Availability of funds
Notwithstanding any other provisions of law, the funds made
available under this section shall remain available for expenditure for
a period of time deemed reasonable by the Secretary, but in no case to
exceed more than three fiscal years following the later of--
(1) the fiscal year in which final agency action under section
1234a(e) of this title is taken; or
(2) if such recipient files a petition for judicial review, the
fiscal year in which final judicial action under section 1234g of
this title is taken.
(d) Publication in Federal Register of notice of intent to enter into
repayment arrangement
At least 30 days prior to entering into an arrangement under this
section, the Secretary shall publish in the Federal Register a notice of
intent to enter into such an arrangement and the terms and conditions
under which payments will be made. Interested persons shall have an
opportunity for at least 30 days to submit comments to the Secretary
regarding the proposed arrangement.
(Pub. L. 90-247, title IV, Sec. 459, as added Pub. L. 100-297, title
III, Sec. 3501(a), Apr. 28, 1988, 102 Stat. 356; amended Pub. L. 103-
382, title II, Sec. 250(b), Oct. 20, 1994, 108 Stat. 3927.)
Amendments
1994--Subsec. (a)(1). Pub. L. 103-382, Sec. 250(b)(1), inserted
before semicolon ``, provided that the recipient was notified of any
noncompliance with such requirements and given a reasonable period of
time to remedy such noncompliance''.
Subsec. (c). Pub. L. 103-382, Sec. 250(b)(2), amended subsec. (c)
generally. Prior to amendment, subsec. (c) read as follows:
``Notwithstanding any other provisions of law, the funds made available
under this section shall remain available for expenditure for a period
of time deemed reasonable by the Secretary, but in no case to exceed
more than 3 fiscal years following the fiscal year in which final agency
action under section 1234a(e) of this title is taken.''
Effective Date
Section 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 an Effective
Date of 1988 Amendment note under section 1234 of this title.
