[Code of Federal Regulations]

[Title 34, Volume 2]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR361.11]



[Page 256]

 

                           TITLE 34--EDUCATION

 

 CHAPTER III--OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES, 

                         DEPARTMENT OF EDUCATION

 

PART 361_STATE VOCATIONAL REHABILITATION SERVICES PROGRAM--Table of 

Contents

 

       Subpart B_State Plan and Other Requirements for Vocational 

                         Rehabilitation Services

 

Sec.  361.11  Withholding of funds.



    (a) Basis for withholding. The Secretary may withhold or limit 

payments under section 111 or 622(a) of the Act, as provided by section 

107(c) and (d) of the Act, if the Secretary determines that--

    (1) The State plan, including the supported employment supplement, 

has been so changed that it no longer conforms with the requirements of 

this part or 34 CFR part 363; or

    (2) In the administration of the State plan, there has been a 

failure to comply substantially with any provision of that plan or a 

program improvement plan established in accordance with section 

106(b)(2) of the Act.

    (b) Informal resolution. Prior to withholding or limiting payments 

in accordance with this section, the Secretary attempts to resolve 

disputed issues informally with State officials.

    (c) Notice. If, after reasonable effort has been made to resolve the 

dispute, no resolution has been reached, the Secretary provides notice 

to the State agency of the intention to withhold or limit payments and 

of the opportunity for a hearing.

    (d) Withholding hearing. If the State agency requests a hearing, the 

Secretary designates one or more individuals, either from the Department 

or elsewhere, not responsible for or connected with the administration 

of this Program, to conduct a hearing in accordance with the provisions 

of 34 CFR part 81, subpart A.

    (e) Initial decision. The hearing officer issues an initial decision 

in accordance with 34 CFR 81.41.

    (f) Petition for review of an initial decision. The State agency may 

seek the Secretary's review of the initial decision in accordance with 

34 CFR 81.42.

    (g) Review by the Secretary. The Secretary reviews the initial 

decision in accordance with 34 CFR 81.43.

    (h) Final decision of the Department. The final decision of the 

Department is made in accordance with 34 CFR 81.44.

    (i) Judicial review. A State may appeal the Secretary's decision to 

withhold or limit payments by filing a petition for review with the U.S. 

Court of Appeals for the circuit in which the State is located, in 

accordance with section 107(d) of the Act.



(Authority: Sections 101(b), 107(c), and 107(d) of the Act; 29 U.S.C. 

721(b), 727(c)(1) and (2), and 727(d))



                             Administration