118 STAT. 2698 PUBLIC LAW 108–446—DEC. 3, 2004 in effect until the local educational agency submits to the State educational agency such modifications as the local edu cational agency determines necessary. ‘‘(3) MODIFICATIONS REQUIRED BY STATE EDUCATIONAL AGENCY.—If, after the effective date of the Individuals with Disabilities Education Improvement Act of 2004, the provisions of this title are amended (or the regulations developed to carry out this title are amended), there is a new interpretation of this title by Federal or State courts, or there is an official finding of noncompliance with Federal or State law or regula tions, then the State educational agency may require a local educational agency to modify its application only to the extent necessary to ensure the local educational agency’s compliance with this part or State law. ‘‘(c) NOTIFICATION OF LOCAL EDUCATIONAL AGENCY OR STATE AGENCY IN CASE OF INELIGIBILITY.—If the State educational agency determines that a local educational agency or State agency is not eligible under this section, then the State educational agency shall notify the local educational agency or State agency, as the case may be, of that determination and shall provide such local edu cational agency or State agency with reasonable notice and an opportunity for a hearing. ‘‘(d) LOCAL EDUCATIONAL AGENCY COMPLIANCE.— ‘‘(1) IN GENERAL.—If the State educational agency, after reasonable notice and an opportunity for a hearing, finds that a local educational agency or State agency that has been deter mined to be eligible under this section is failing to comply with any requirement described in subsection (a), the State educational agency shall reduce or shall not provide any further payments to the local educational agency or State agency until the State educational agency is satisfied that the local edu cational agency or State agency, as the case may be, is com plying with that requirement. ‘‘(2) ADDITIONAL REQUIREMENT.—Any State agency or local educational agency in receipt of a notice described in paragraph (1) shall, by means of public notice, take such measures as may be necessary to bring the pendency of an action pursuant to this subsection to the attention of the public within the jurisdiction of such agency. ‘‘(3) CONSIDERATION.—In carrying out its responsibilities under paragraph (1), the State educational agency shall con sider any decision made in a hearing held under section 615 that is adverse to the local educational agency or State agency involved in that decision. ‘‘(e) JOINT ESTABLISHMENT OF ELIGIBILITY.— ‘‘(1) JOINT ESTABLISHMENT.— ‘‘(A) IN GENERAL.—A State educational agency may require a local educational agency to establish its eligibility jointly with another local educational agency if the State educational agency determines that the local educational agency will be ineligible under this section because the local educational agency will not be able to establish and maintain programs of sufficient size and scope to effectively meet the needs of children with disabilities. ‘‘(B) CHARTER SCHOOL EXCEPTION.—A State educational agency may not require a charter school that is a local educational agency to jointly establish its eligibility under
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