subpart 1—small, rural school achievement program

§7345. Use of applicable funding

(a) Alternative uses

(1) In general

Notwithstanding any other provision of law, an eligible local educational agency may use the applicable funding that the agency is eligible to receive from the State educational agency for a fiscal year to carry out local activities authorized under any of the following provisions:

(A) Part A of subchapter I of this chapter.

(B) Part A or D of subchapter II of this chapter.

(C) Subchapter III of this chapter.

(D) Part A or B of subchapter IV of this chapter.

(E) Part A of subchapter V of this chapter.

(2) Notification

An eligible local educational agency shall notify the State educational agency of the local educational agency's intention to use the applicable funding in accordance with paragraph (1), by a date that is established by the State educational agency for the notification.

(b) Eligibility

(1) In general

A local educational agency shall be eligible to use the applicable funding in accordance with subsection (a) of this section if—

(A)(i)(I) the total number of students in average daily attendance at all of the schools served by the local educational agency is fewer than 600; or

(II) each county in which a school served by the local educational agency is located has a total population density of fewer than 10 persons per square mile; and

(ii) all of the schools served by the local educational agency are designated with a school locale code of 7 or 8, as determined by the Secretary; or

(B) the agency meets the criteria established in subparagraph (A)(i) and the Secretary, in accordance with paragraph (2), grants the local educational agency's request to waive the criteria described in subparagraph (A)(ii).

(2) Certification

The Secretary shall determine whether to waive the criteria described in paragraph (1)(A)(ii) based on a demonstration by the local educational agency, and concurrence by the State educational agency, that the local educational agency is located in an area defined as rural by a governmental agency of the State.

(c) Applicable funding defined

In this section, the term "applicable funding" means funds provided under any of the following provisions:

(1) Subpart 2 of this part and section 6762(a)(2)(A) of this title.

(2) Section 7114 of this title.

(3) Part A of subchapter V of this chapter.

(d) Disbursement

Each State educational agency that receives applicable funding for a fiscal year shall disburse the applicable funding to local educational agencies for alternative uses under this section for the fiscal year at the same time as the State educational agency disburses the applicable funding to local educational agencies that do not intend to use the applicable funding for such alternative uses for the fiscal year.

(e) Applicable rules

Applicable funding under this section shall be available to carry out local activities authorized under subsection (a) of this section.

(Pub. L. 89–10, title VI, §6211, as added Pub. L. 107–110, title VI, §601, Jan. 8, 2002, 115 Stat. 1891.)

§7345a. Grant program authorized

(a) In general

The Secretary is authorized to award grants to eligible local educational agencies to enable the local educational agencies to carry out activities authorized under any of the following provisions:

(1) Part A of subchapter I of this chapter.

(2) Part A or D of subchapter II of this chapter.

(3) Subchapter III of this chapter.

(4) Part A or B of subchapter IV of this chapter.

(5) Part A of subchapter V of this chapter.

(b) Allocation

(1) In general

Except as provided in paragraph (3), the Secretary shall award a grant under subsection (a) of this section to a local educational agency eligible under section 7345(b) of this title for a fiscal year in an amount equal to the initial amount determined under paragraph (2) for the fiscal year minus the total amount received by the agency under the provisions of law described in section 7345(c) of this title for the preceding fiscal year.

(2) Determination of initial amount

The initial amount referred to in paragraph (1) is equal to $100 multiplied by the total number of students in excess of 50 students, in average daily attendance at the schools served by the local educational agency, plus $20,000, except that the initial amount may not exceed $60,000.

(3) Ratable adjustment

(A) In general

If the amount made available to carry out this section for any fiscal year is not sufficient to pay in full the amounts that local educational agencies are eligible to receive under paragraph (1) for such year, the Secretary shall ratably reduce such amounts for such year.

(B) Additional amounts

If additional funds become available for making payments under paragraph (1) for such fiscal year, payments that were reduced under subparagraph (A) shall be increased on the same basis as such payments were reduced.

(c) Disbursement

The Secretary shall disburse the funds awarded to a local educational agency under this section for a fiscal year not later than July 1 of that fiscal year.

(d) Special eligibility rule

A local educational agency that is eligible to receive a grant under this subpart for a fiscal year is not eligible to receive funds for such fiscal year under subpart 2 of this part.

(Pub. L. 89–10, title VI, §6212, as added Pub. L. 107–110, title VI, §601, Jan. 8, 2002, 115 Stat. 1892.)

§7345b. Accountability

(a) Academic achievement assessment

Each local educational agency that uses or receives funds under this subpart for a fiscal year shall administer an assessment that is consistent with section 6311(b)(3) of this title.

(b) Determination regarding continuing participation

Each State educational agency that receives funding under the provisions of law described in section 7345(c) of this title shall—

(1) after the third year that a local educational agency in the State participates in a program under this subpart and on the basis of the results of the assessments described in subsection (a) of this section, determine whether the local educational agency participating in the program made adequate yearly progress, as described in section 6311(b)(2) of this title;

(2) permit only those local educational agencies that participated and made adequate yearly progress, as described in section 6311(b)(2) of this title, to continue to participate; and

(3) permit those local educational agencies that participated and failed to make adequate yearly progress, as described in section 6311(b)(2) of this title, to continue to participate only if such local educational agencies use applicable funding under this subpart to carry out the requirements of section 6316 of this title.

(Pub. L. 89–10, title VI, §6213, as added Pub. L. 107–110, title VI, §601, Jan. 8, 2002, 115 Stat. 1893.)