Neither a local educational agency, as defined in § 397.5(b)(1), nor a State educational agency, as defined in § 397.5(b)(2), may enter into a contract or other arrangement with an entity, as defined in § 397.5(d), for the purpose of operating a program for a youth under which work is compensated at a subminimum wage.

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(Authority: Section 511(b)(2) of the Rehabilitation Act of 1973, as amended; 29 U.S.C. § 794g(b)(2))