Page:United States Statutes at Large Volume 110 Part 1.djvu/1168

 110 STAT. 1144 PUBLIC LAW 104-127—APR. 4, 1996 "(c) USE OF FUNDS. —A State to which funds are provided under this section shall use the funds in rural areas for any activity authorized under the authorities described in section 381E(d) in accordance with the State strategic plan referred to in section 381D. "(d) MAINTENANCE OF EFFORT. —The State shall provide assurances to the Secretary that funds provided to the State under this section will be used only to supplement, not to supplant, the amount of Federal, State, and local funds otherwise expended for rural development assistance in the State. "(e) APPEALS.— The Secretary shall provide to a State an opportunity to appeal any action taken with respect to the State under this section. "(f) ADMINISTRATIVE COSTS.— Federal funds shall not be used for any administrative costs incurred by a State in carrying out this subtitle. " (g) EXPENDITURE OF FUNDS BY STATE.— "(1) IN GENERAL.— Payments to a State from a grant under this section for a fiscal year shall be obligated by the State in the fiscal year or in the succeeding fiscal year. A State shall obligate funds under this section to provide assistance to rural areas. "(2) FAILURE TO OBLIGATE. — If a State fails to obligate payments in accordance with paragraph (1), the Secretary shall make an equal reduction in the amount of payments provided to the State under this section for the immediately succeeding fiscal year. " (3) NONCOMPLIANCE.— "(A) REVIEW.— The Secretary shall review and monitor State compliance with this section. "(B) PENALTY.— If the Secretary finds that there has been misuse of grant funds provided under this section, or noncompliance with any of the terms and conditions of a grant, after reasonable notice and opportunity for a hearing— "(i) the Secretary shall notify the State of the finding; and "(ii) no further payments to the State shall be made with respect to the programs funded under this section until the Secretary is satisfied that there is no longer any failure to comply or that the noncompliance will be promptly corrected. "(C) OTHER SANCTIONS.— In the case of a finding of noncompliance made pursuant to subparagraph (B), the Secretary may, in addition to, or in lieu of, imposing the sanctions described in subparagraph (B), impose other appropriate sanctions, including recoupment of money improperly expended for purposes prohibited or not authorized by this section and disqualification from the receipt of financial assistance under this section. " (h) No ENTITLEMENT TO CONTRACT, GRANT, OR ASSISTANCE.— Nothing in this subtitle— "(1) entitles any person to assistance or a contract or grant; or "(2) limits the right of a State to impose additional limitations or conditions on assistance or a contract or grant under this section.

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