(1) REQUIREMENTS.

(a) If a local unit of administration fails to comply with provisions of law, rules,
regulations, or terms of any contract with the state board, the state board may at its
discretion withhold all or part of the state-contributed Quality Basic Education (QBE)
program funds allotted to that local unit until full compliance is met by the local unit.

(b) In the absence of federal regulations specifying procedures for withholding
federal funds, the state board shall adhere to these rules when authorized to withhold
federal funds.

(2) PREHEARING PROCEDURE. Before the state superintendent of schools
informs the State Board of Education that a local unit of administration is in
noncompliance with any law, rules, regulations, standards, requirements or the terms of
any contract for purposes of withholding state funds or federal funds, where applicable,
the following procedures shall be followed.

(a) The state school superintendent or designee shall inform the local unit of
administration of the specific areas of noncompliance.

(b) The local unit of administration shall have 30 calendar days from the date of
notification to submit evidence of resolution to the department.

(c) If the noncompliance issue is not resolved by the end of the 30 days, the state
school superintendent or designee shall so inform the local unit of administration that a
recommendation to withhold will be forwarded to the State Board of Education with the
specific areas of noncompliance of the particular local unit of administration noted.

(d) The state school superintendent shall inform the state board when any local unit
of administration fails to comply with any provisions of law, rules, regulations, or terms
of any contract with the state board if the noncompliance issue is not resolved, and shall
recommend that the state board withhold state funds totally or in part until the local unit
of administration complies.

(e) Should the state board exercise its discretion to withhold a portion or all of the
state QBE funds from the local unit of administration, the board, through the state school
superintendent’s office, shall inform the local unit of administration of the board’s
intention to withhold funds at least 30 days prior to the intended date of withholding
funds.

(f) The local unit of administration shall be informed in writing of the areas of
noncompliance and which funds are going to be withheld. The letter shall also state that
the local unit of administration is entitled to a hearing on the matter according to the
provisions of paragraph (3) of this rule, provided the local unit of administration requests
a hearing within 30 calendar days of receipt of the notification.
(g) Should the board of the local unit of administration invoke the appeals procedure,
no funds shall be withheld until all appeals have been exhausted.

(3) HEARING PROCEDURE.

(a) The State Board of Education assumes original jurisdiction in matters of this
nature. The vice chairperson for appeals or a hearing officer employed by the state board
shall be responsible for conducting hearings before the state board and shall acquaint the
members of the state board with the matter to be considered.

(b) The local unit of administration shall submit within 30 calendar days a written
request to the state school superintendent that a hearing be held before the State Board of
Education. The request shall distinctly specify the question in dispute and the reasons for
the dispute.

(c) Upon receipt of the request for a hearing, the state school superintendent shall
determine whether the request is in proper form for hearing by the state board. The state
school superintendent may procure the assistance of the Georgia Attorney General and
the State of Georgia, Department of Law in making this determination. If the appeal is
found to be in proper form for hearing, it shall be docketed and placed on the calendar for
hearing before the state board at the earliest practical time, and the claimant shall be
notified by mail of the time and place of hearing.

(d) At the hearing, all witnesses shall be sworn in by the vice chairperson or any
member of the board or its attorney. The state board shall cause the testimony and other
evidence to be transcribed by a court reporter or other appropriate means. All witnesses
sworn and testifying shall be subject to reasonable cross-examination, but the strict rules
of evidence prevailing in courts of law shall not be applicable to hearings before the state
board.

(e) Following action by the state board, the vice chairperson for appeals or the
hearing officer shall draft the ruling of the state board and furnish copies to the claimant.

(f) The State Board of Education shall render its decision within 25 calendar days
from the date of the first board meeting following the date of the hearing or 10 days after
the hearing when funds are being withheld pursuant to provisions of the Individuals with
Disabilities Education Act (IDEA).

(4) NONCOMPLIANCE WITH RULES.

(a) Failure to comply with any of the provisions of these rules relating to a hearing
will be grounds for dismissal of the hearing.

(b) If the local unit of administration feels aggrieved by the final decision of the state
board following such hearing, the local unit of administration shall have the right to
obtain judicial review of such decision in accordance with the requirements of O.C.G.A.
§ 20-2-243.

(5) SEPARABILITY. The provisions of this rule are hereby declared to be
separable, and the invalidation of any sentence, section or part hereof shall not affect or
invalidate any other sentence, section or part thereof.