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Title 20 — Education

Chapter 31 — General Provisions Concerning Education

§ 1234h. Use of recovered funds

Statutory text

(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.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Elementary and Secondary Education Amendments of 1967

    Pub. L. 90–247 title IV § 459 · 81 Stat. 783

    Enacted · 20 U.S.C. § 1234h

    Pub. L. 90–247, title IV, § 459, as added Pub. L. 100–297, title III, § 3501(a), Apr. 28, 1988, 102 Stat. 356

    Source evidence

    Code source credit
    Pub. L. 90–247, title IV, § 459, as added Pub. L. 100–297, title III, § 3501(a), Apr. 28, 1988, 102 Stat. 356

  2. Improving America’s Schools Act of 1994

    Pub. L. 103–382 § 250(b)(1) · 108 Stat. 3518

    Inserted · 20 U.S.C. § 1234h(a)(1)

    Pub. L. 103–382, § 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”

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 103–382, § 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”.

    Enacted provision · exact public law section
    (1) in paragraph (1) of subsection (a), by inserting “, provided that the recipient was notified of any noncompliance with such requirements and given a reasonable period of time to remedy such noncompliance” before the semicolon; and

  3. Improving America’s Schools Act of 1994

    Pub. L. 103–382 § 250(b)(2) · 108 Stat. 3518

    Amended · 20 U.S.C. § 1234h(c)

    Pub. L. 103–382, § 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.”

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 103–382, § 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.”

    Enacted provision · exact public law section
    (2) by amending subsection (c) to read as follows: “(c) 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 452(e) is taken; or “(2) if such recipient files a petition for judicial review, the fiscal year in which final judicial action under section 458 is taken.”.

2 of 3 references resolved to an enrolled provision · 1 partial

Editorial Notes

Amendments

1994—Subsec. (a)(1). Pub. L. 103–382, § 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, § 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.”

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 180 days after , 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.

Credits

1988–1994 · 2 acts
  1. 1988Pub. L. 90–247, title IV, § 459, as added Pub. L. 100–297, title III, § 3501(a), , 102 Stat. 356
  2. 1994amended Pub. L. 103–382, title II, § 250(b), , 108 Stat. 3927.
Show as published

(Pub. L. 90–247, title IV, § 459, as added Pub. L. 100–297, title III, § 3501(a), , 102 Stat. 356; amended Pub. L. 103–382, title II, § 250(b), , 108 Stat. 3927.)

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