Except as provided in § 222.120, the Assistant Secretary withholds payments to an LEA if—

1. (a) The Assistant Secretary determines it is necessary to enforce the requirements of section 8004 of the Act or this subpart; or

2. (b) After a hearing has been conducted under section 8004(e) of the Act and §§ 222.102-222.113 (IPP hearing)—

   1. (1) The LEA rejects the final determination of the Assistant Secretary; or

   2. (2) The LEA fails to implement the required remedy within the time established and the Assistant Secretary determines that the required remedy will not be undertaken by the LEA even if the LEA is granted a reasonable extension of time.

      (Authority: 20 U.S.C. 7704 (a), (b), (d)(2), (e)(8)-(9))