[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR76.401]

[Page 171-172]
 
                           TITLE 34--EDUCATION
 
PART 76--STATE-ADMINISTERED PROGRAMS--Table of Contents
 
            Subpart E--How a Subgrant Is Made to an Applicant
 
Sec. 76.401  Disapproval of an application--opportunity for a hearing.

    (a) State agency hearing before disapproval. Under the programs 
listed in the chart below, the State agency that administers the program 
shall provide an applicant with notice and an opportunity for a hearing 
before it may disapprove the application.

------------------------------------------------------------------------
                                                            Implementing
                                                             regulations
              Program                 Authorizing statute   Title 34 CFR
                                                                Part
------------------------------------------------------------------------
Chapter 1, Program in Local         Title I, Chapter 1,              200
 Educational Agencies.               Elementary and
                                     Secondary Education
                                     Act of 1965, as
                                     amended (20 U.S.C.
                                     2701-2731, 2821-2838,
                                     2851-2854, and 2891-
                                     2901).
Chapter 1, Program for Neglected    Title 1, Chapter 1,              203
 and Delinquent Children.            Elementary and
                                     Secondary Education
                                     Act of 1965, as
                                     amended (20 U.S.C.
                                     2801-2804).
State Grants for Strengthening      Title II, Part A,                208
 Instruction in Mathematics and      Elementary and
 Science.                            Secondary Education
                                     Act of 1965, as
                                     amended (20 U.S.C.
                                     2981-2993).
Federal, State, and Local           Title I, Chapter 2,              298
 Partnership for Educational         Elementary and
 Improvement.                        Secondary Education
                                     Act of 1965, as
                                     amended (20 U.S.C.
                                     2911-2952 and 2971-
                                     2976).
Assistance to States for Education  Part B, Individuals              300
 of Handicapped Children.            with Disabilities
                                     Education Act (except
                                     Section 619) (20
                                     U.S.C. 1411-1420).
Preschool Grants..................  Section 619,                     301
                                     Individuals with
                                     Disabilities
                                     Education Act (20
                                     U.S.C. 1419).
Chapter 1, State-Operated or        Title 1, Chapter 1,              302
 Supported Programs for              Elementary and
 Handicapped Children.               Secondary Education
                                     Act of 1965, as
                                     amended (20 U.S.C.
                                     2791-2795).
Transition Program for Refugee      Section 412(d),                  538
 Children.                           Immigration and
                                     Naturalization Act (8
                                     U.S.C. 1522(d)).
Emergency Immigrant Education       Emergency Immigrant              581
 Program.                            Education Act (20
                                     U.S.C. 3121-3130).
Financial Assistance for            Section 711, Higher              617
 Construction, Reconstruction, or    Education Act of 1965
 Renovation of Higher Education      (20 U.S.C. 1132b).
 Facilities.
------------------------------------------------------------------------

    (b) Other programs--hearings not required. Under other programs 
covered by this part, a State agency--other than a State educational 
agency--is not required to provide an opportunity for a hearing 
regarding the agency's disapproval of an application.
    (c) If an applicant for a subgrant alleges that any of the following 
actions of a State educational agency violates a State or Federal 
statute or regulation, the State educational agency and the applicant 
shall use the procedures in paragraph (d) of this section:
    (1) Disapproval of or failure to approve the application or project 
in whole or in part.
    (2) Failure to provide funds in amounts in accordance with the 
requirements of statutes and regulations.
    (d) State educational agency hearing procedures. (1) If the 
applicant applied under a program listed in paragraph (a) of this 
section, the State educational agency shall provide an opportunity for

[[Page 172]]

a hearing before the agency disapproves the application.
    (2) If the applicant applied under a program not listed in paragraph 
(a) of this section, the State educational agency shall provide an 
opportunity for a hearing either before or after the agency disapproves 
the application.
    (3) The applicant shall request the hearing within 30 days of the 
action of the State educational agency.
    (4)(i) Within 30 days after it receives a request, the State 
educational agency shall hold a hearing on the record and shall review 
its action.
    (ii) No later than 10 days after the hearing the agency shall issue 
its written ruling, including findings of fact and reasons for the 
ruling.
    (iii) If the agency determines that its action was contrary to State 
or Federal statutes or regulations that govern the applicable program, 
the agency shall rescind its action.
    (5) If the State educational agency does not rescind its final 
action after a review under this paragraph, the applicant may appeal to 
the Secretary. The applicant shall file a notice of the appeal with the 
Secretary within 20 days after the applicant has been notified by the 
State educational agency of the results of the agency's review. If 
supported by substantial evidence, findings of fact of the State 
educational agency are final.
    (6)(i) The Secretary may also issue interim orders to State 
educational agencies as he or she may decide are necessary and 
appropriate pending appeal or review.
    (ii) If the Secretary determines that the action of the State 
educational agency was contrary to Federal statutes or regulations that 
govern the applicable program, the Secretary issues an order that 
requires the State educational agency to take appropriate action.
    (7) Each State educational agency shall make available at reasonable 
times and places to each applicant all records of the agency pertaining 
to any review or appeal the applicant is conducting under this section, 
including records of other applicants.
    (8) If a State educational agency does not comply with any provision 
of this section, or with any order of the Secretary under this section, 
the Secretary terminates all assistance to the State educational agency 
under the applicable program or issues such other orders as the 
Secretary deems appropriate to achieve compliance.
    (e) Other State agency hearing procedures. State agencies that are 
required to provide a hearing under paragraph (a) of this section--other 
than State educational agencies--are not required to use the procedures 
in paragraph (d) of this section.
    Note: This section is based on a provision in the General Education 
Provisions Act (GEPA). Section 427 of the Department of Education 
Organization Act (DEOA), 20 U.S.C. 3487, provides that except to the 
extent inconsistent with the DEOA, the GEPA ``shall apply to functions 
transferred by this Act to the extent applicable on the day preceding 
the effective date of this Act.'' Although standardized nomenclature is 
used in this section to reflect the creation of the Department of 
Education, there is no intent to extend the coverage of the GEPA beyond 
that authorized under Section 427 or other applicable law.

(Authority: 20 U.S.C. 1221e-3, 1231b-2, 3474, and 6511(a))

[45 FR 22517, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980, 
as amended at 45 FR 86296, Dec. 30, 1980; 50 FR 43545, Oct. 25, 1985; 52 
FR 27805, July 24, 1987; 54 FR 21775, May 19, 1989; 55 FR 14816, Apr. 
18, 1990; 57 FR 30341, July 8, 1992; 60 FR 46493, Sept. 6, 1995]