Contracts. 20 USC 1099a. PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 635 "PART H—PROGRAM INTEGRITY TRIAD "Subpart 1—State Postsecondary Review Program <«EC. 494. STATE POSTSECONDARY REVIEW PROGRAM. "(a) PURPOSE.—It is the purpose of this section to authorize the Secretary to enter into agreements that— "(1) designate one State postsecondary review entity in each State to be responsible for the conduct or coordination of the review under section 494C(d) of institutions of higher education, reported to the State by the Secretary pursuant to section 494C(a), for the purposes of determining eligibility under this title; and "(2) provide Federal funds to each State postsecondary review entity for performing the functions required by such agreements with the Secretary. "(b) PROGRAM AUTHORITY. —The Secretary shall, in accordance with the provisions of this subpart, enter into agreements with each of the States to carry out the purposes of this subpart. If any State declines to enter into an agreement with the Secretary for the purposes of this subpart, the provisions of this subpart which refer to the State, with respect to such State, shall refer to the Secretary, who may make appropriate arrangements with agencies or organizations of demons^ated competence in reviewing institutions of higher education. "(c) FAILURE TO COMPLY WITH AGREEMENT. — If a State fails to enter into an agreement under this section or fails to meet the requirements of its agreement with the Secretary under this subpart— "(1) the Secretary— "(A) may not designate as eligible for participation in any program under this title any new institution (including new branch campuses) or any institution that has changed ownership, pursuant to section 481 and subpart 3 of this part; and "(B) may grant only provisional certification for all institutions in the State pursuant to subpart 3 of this part; and "(2) the State shall be ineligible to receive funds under section 494B of this subpart, subpart 4 of part A of this title, and chapter 2 of subpsui; 2 of part A of this title. <*SEC. 494A. STATE POSTSECONDARY REVIEW ENTITY AGREEMENTS. 20 USC 1099a-l. "(a) STATE ORGANIZATION STRUCTURES.—(1) Each agreement under this subpart shall describe a State organizational structure responsible for carrying out the review under section 494C(d) of institutions reported to the State by the Secretary pursuant to section 494C(a). Each such entity's action in reviewing such institutions shall, for purposes of this subpart, be considered to be the action of the State. "(2) For the purposes of this subpart, the designation of a State postsecondary review entity for the purpose of entering into an agreement with the Secretary shall be in accordance with the State law of each individual State with respect to the authority to make legal agreements between the State and the Federal Government.
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