[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR86.304]

[Page 268]
 
                           TITLE 34--EDUCATION
 
PART 86--DRUG AND ALCOHOL ABUSE PREVENTION--Table of Contents
 
 Subpart D--Responses and Sanctions Issued or Imposed by the Secretary 
                        for Violations by an IHE
 
Sec.  86.304  What are the procedures used by the Secretary to demand repayment of Federal financial assistance or terminate an IHE's eligibility for any or all 
          forms of Federal financial assistance?

    (a) A designated Department official begins a proceeding for 
repayment of Federal financial assistance or termination, or both, of an 
IHE's eligibility for any or all forms of Federal financial assistance 
by sending the IHE a notice by certified mail with return receipt 
requested. This notice--
    (1) Informs the IHE of the Secretary's intent to demand repayment of 
Federal financial assistance or to terminate, describes the consequences 
of that action, and identifies the alleged violations that constitute 
the basis for the action;
    (2) Specifies, as appropriate--
    (i) The amount of Federal financial assistance that must be repaid 
and the date by which the IHE must repay the funds; and
    (ii) The proposed effective date of the termination, which must be 
at least 30 days after the date of receipt of the notice of intent; and
    (3) Informs the IHE that the repayment of Federal financial 
assistance will not be required or that the termination will not be 
effective on the date specified in the notice if the designated 
Department official receives, within a 30-day period beginning on the 
date the IHE receives the notice of intent described in this paragraph--
    (i) Written material indicating why the repayment of Federal 
financial assistance or termination should not take place; or
    (ii) A request for a hearing that contains a concise statement of 
disputed issues of law and fact, the IHE's position with respect to 
these issues, and, if appropriate, a description of which Federal 
financial assistance the IHE contends need not be repaid.
    (b) If the IHE does not request a hearing but submits written 
material--
    (1) The IHE receives no additional opportunity to request or receive 
a hearing; and
    (2) The designated Department official, after considering the 
written material, notifies the IHE in writing whether--
    (i) Any or all of the Federal financial assistance must be repaid; 
or
    (ii) The proposed termination is dismissed or imposed as of a 
specified date.

(Authority: 20 U.S.C. 1145g)

[55 FR 33581, Aug. 16, 1990, as amended at 61 FR 66225, Dec. 17, 1996]