subpart 2—funding transferability for state and local educational agencies

§7305. Short title

This subpart may be cited as the "State and Local Transferability Act".

(Pub. L. 89–10, title VI, §6121, as added Pub. L. 107–110, title VI, §601, Jan. 8, 2002, 115 Stat. 1876.)

§7305a. Purpose

The purpose of this subpart is to allow States and local educational agencies the flexibility—

(1) to target Federal funds to Federal programs that most effectively address the unique needs of States and localities; and

(2) to transfer Federal funds allocated to other activities to allocations for certain activities authorized under subchapter I of this chapter.

(Pub. L. 89–10, title VI, §6122, as added Pub. L. 107–110, title VI, §601, Jan. 8, 2002, 115 Stat. 1876.)

§7305b. Transferability of funds

(a) Transfers by States

(1) In general

In accordance with this subpart, a State may transfer not more than 50 percent of the nonadministrative State funds (including funds transferred under paragraph (2)) allotted to the State for use for State-level activities under the following provisions for a fiscal year to one or more of the State's allotments for such fiscal year under any other of such provisions:

(A) Section 6613(a)(3) of this title.

(B) Section 6762(a)(1) of this title.

(C) Subsections (a)(1) (with the agreement of the Governor) and (c)(1) of section 7112 of this title and section 7172(c)(3) of this title.

(D) Section 7211a(b) of this title.

(2) Additional funds for subchapter I

In accordance with this subpart and subject to the 50 percent limitation described in paragraph (1), a State may transfer any funds allotted to the State under a provision listed in paragraph (1) to its allotment under subchapter I of this chapter.

(b) Transfers by local educational agencies

(1) Authority to transfer funds

(A) In general

In accordance with this subpart, a local educational agency (except a local educational agency identified for improvement under section 6316(c) of this title or subject to corrective action under section 6316(c)(9) ¹ of this title) may transfer not more than 50 percent of the funds allocated to it (including funds transferred under subparagraph (C)) under each of the provisions listed in paragraph (2) for a fiscal year to one or more of its allocations for such fiscal year under any other provision listed in paragraph (2).

(B) Agencies identified for improvement

In accordance with this subpart, a local educational agency identified for improvement under section 6316(c) of this title may transfer not more than 30 percent of the funds allocated to it (including funds transferred under subparagraph (C)) under each of the provisions listed in paragraph (2) for a fiscal year—

(i) to its allocation for school improvement for such fiscal year under section 6303 of this title; or

(ii) to any other allocation for such fiscal year if such transferred funds are used only for local educational agency improvement activities consistent with section 6316(c) of this title.

(C) Additional funds for subchapter I

In accordance with this subpart and subject to the percentage limitation described in subparagraph (A) or (B), as applicable, a local educational agency may transfer funds allocated to such agency under any of the provisions listed in paragraph (2) for a fiscal year to its allocation for part A of subchapter I of this chapter for that fiscal year.

(2) Applicable provisions

A local educational agency may transfer funds under subparagraph (A), (B), or (C) of paragraph (1) from allocations made under each of the following provisions:

(A) Section 6621 of this title.

(B) Section 6762(a)(2)(A) of this title.

(C) Section 7112(b)(1) of this title.

(D) Section 7211a(a) of this title.

(c) No transfer of subchapter I funds

A State or a local educational agency may not transfer under this subpart to any other program any funds allotted or allocated to it for part A of subchapter I of this chapter.

(d) Modification of plans and applications; notification

(1) State transfers

Each State that makes a transfer of funds under this section shall—

(A) modify, to account for such transfer, each State plan, or application submitted by the State, to which such funds relate;

(B) not later than 30 days after the date of such transfer, submit a copy of such modified plan or application to the Secretary; and

(C) not later than 30 days before the effective date of such transfer, notify the Secretary of such transfer.

(2) Local transfers

Each local educational agency that makes a transfer of funds under this section shall—

(A) modify, to account for such transfer, each local plan, or application submitted by the agency, to which such funds relate;

(B) not later than 30 days after the date of such transfer, submit a copy of such modified plan or application to the State; and

(C) not later than 30 days before the effective date of such transfer, notify the State of such transfer.

(e) Applicable rules

(1) In general

Except as otherwise provided in this subpart, funds transferred under this section are subject to each of the rules and requirements applicable to the funds under the provision to which the transferred funds are transferred.

(2) Consultation

Each State educational agency or local educational agency that transfers funds under this section shall conduct consultations in accordance with section 7881 of this title, if such transfer transfers funds from a program that provides for the participation of students, teachers, or other educational personnel, from private schools.

(Pub. L. 89–10, title VI, §6123, as added Pub. L. 107–110, title VI, §601, Jan. 8, 2002, 115 Stat. 1876.)

¹ So in original. Probably should be section "6316(c)(10)".