118 STAT. 2735 PUBLIC LAW 108–446—DEC. 3, 2004 Provisions Act, if the Secretary has reason to believe that the State cannot correct the problem within 1 year. ‘‘(iii) For each year of the determination, withhold not less than 20 percent and not more than 50 percent of the State’s funds under section 611(e), until the Secretary determines the State has sufficiently addressed the areas in which the State needs interven tion. ‘‘(iv) Seek to recover funds under section 452 of the General Education Provisions Act. ‘‘(v) Withhold, in whole or in part, any further payments to the State under this part pursuant to paragraph (5). ‘‘(vi) Refer the matter for appropriate enforcement action, which may include referral to the Department of Justice. ‘‘(3) NEEDS SUBSTANTIAL INTERVENTION.—Notwithstanding paragraph (1) or (2), at any time that the Secretary determines that a State needs substantial intervention in implementing the requirements of this part or that there is a substantial failure to comply with any condition of a State educational agency’s or local educational agency’s eligibility under this part, the Secretary shall take 1 or more of the following actions: ‘‘(A) Recover funds under section 452 of the General Education Provisions Act. ‘‘(B) Withhold, in whole or in part, any further pay ments to the State under this part. ‘‘(C) Refer the case to the Office of the Inspector Gen eral at the Department of Education. ‘‘(D) Refer the matter for appropriate enforcement action, which may include referral to the Department of Justice. ‘‘(4) OPPORTUNITY FOR HEARING.— ‘‘(A) WITHHOLDING FUNDS.—Prior to withholding any funds under this section, the Secretary shall provide reasonable notice and an opportunity for a hearing to the State educational agency involved. ‘‘(B) SUSPENSION.—Pending the outcome of any hearing to withhold payments under subsection (b), the Secretary may suspend payments to a recipient, suspend the authority of the recipient to obligate funds under this part, or both, after such recipient has been given reasonable notice and an opportunity to show cause why future pay ments or authority to obligate funds under this part should not be suspended. ‘‘(5) REPORT TO CONGRESS.—The Secretary shall report to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate within 30 days of taking enforcement action pursuant to paragraph (1), (2), or (3), on the specific action taken and the reasons why enforcement action was taken. ‘‘(6) NATURE OF WITHHOLDING.— ‘‘(A) LIMITATION.—If the Secretary withholds further payments pursuant to paragraph (2) or (3), the Secretary may determine— Notification.
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