31 U.S.C. § 6712 — Discrimination proceedings

(a) Notice of noncompliance. Within 10 days after the Secretary finds discrimination or receives a discrimination holding about a unit of general local government, the Secretary must send the government a notice of noncompliance. The notice must state the basis for the finding or holding.

(b) Informal presentation of evidence. Within 30 days after receiving the notice, the government may informally present evidence to the Secretary. Except as provided in subsection (e), the government may present evidence about whether (1) a person in the United States was excluded from, denied benefits of, or discriminated against under the government’s program or activity in violation of section 6711(a); (2) the program or activity violated a prohibition described in section 6711(b); and (3) any part of the program or activity was paid for with a payment received under this chapter.

(c) Temporary suspension of payments. By the end of the 30-day period, the Secretary must decide whether the government failed to comply with section 6711(a) or (b), unless it entered into a compliance agreement under section 6714. If the Secretary finds noncompliance, the Secretary must notify the government and suspend its payments under this chapter unless, within 10 days after receiving the decision, the government (1) enters into a section 6714 compliance agreement or (2) requests a proceeding under subsection (d)(1).

(d) Administrative review of suspensions. (1) Proceeding. A requested proceeding must begin within 30 days after the Secretary receives the request. An administrative law judge appointed under section 3105 of title 5 must conduct it. Within 30 days after it begins, the judge must issue a preliminary decision, based on the record then available, about whether the government is likely to prove compliance with section 6711(a) or (b).

(2) Decision. If the judge decides at the end of the proceeding that the government (A) did not comply with section 6711(a) or (b), the judge may order payments under this chapter terminated; or (B) did comply, a suspension under section 6713(a)(1)(A) must promptly end.

(3) Likelihood of prevailing. A judge may not issue a preliminary decision that the government is unlikely to prevail if the judge has already issued the decision described in paragraph (2)(A).

(e) Basis for review. In a proceeding under subsections (b) through (d) about a program or activity for which a discrimination holding was made, the Secretary or judge may consider only whether a payment under this chapter was used to pay for any part of the program or activity. The discrimination holding is conclusive. If an appellate court reverses it, the Secretary or judge must end the proceeding.