Iowa Admin. Code r. 281-41.605 - Withholding funds
(1)
General. As a consequence of a determination made under rule
281-41.603 (256B, 34CFR300) or enforcement of any provision of Part B of the Act
and this chapter, the state may withhold some or all of the funds from an AEA
or LEA or a program or service of an AEA or LEA, or may direct an AEA to
withhold all or some funds from an LEA or a program or service of an
LEA.
(2)
Hearing.
If the state intends to withhold funds, the state shall provide notice and an
opportunity for a hearing to the AEA or LEA. If a hearing is requested, the
state may suspend payments to an AEA or LEA, or suspend the authority of the
AEA or LEA to obligate funds, or both, until a decision is made after the
hearing. A hearing under this rule, which shall not be a contested case under
Iowa Code chapter 17A, shall be requested within 30 days of notice of
withholding by requesting a hearing before the director of the Iowa department
of education or the director 's designee. The presiding officer at the hearing
shall consider the purposes of Part B of the Act and of this chapter and shall
determine whether the state abused its discretion in its decision under subrule
41.605(1).
(3)
Reinstatement. If the LEA or AEA substantially rectifies the
condition that prompted the initial withholding under subrule 41.605(1), then
the state may reinstate payments to the LEA or AEA. If an LEA or AEA disagrees
with the state's decision that it has not substantially rectified the condition
that prompted the initial withholding under subrule 41.605(1), the LEA or AEA
may request a hearing under subrule 41.605(2).
Notes
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