115 STAT. 1674 PUBLIC LAW 107-110-JAN. 8, 2002 "(c) REALLOTMENT OF UNUSED FUNDS.— If any State educational agency does not apply for an allotment under this subpart for a fiscal year, or does not use its entire allotment under this subpart for that fiscal year, the Secretary shall reallot the amount of the State educational agency's allotment, or the unused portion of the allotment, to the remaining State educational agencies that use their entire allotments under this subpart in accordance with this section. "(d) STATE EDUCATIONAL AGENCY DEFINED.— In this section, the term 'State educational agency' does not include an agency of an outlying area or the Bureau of Indian Affairs. 20 USC 6762. " SEC. 2412. USE OF ALLOTMENT BY STATE. "(a) IN GENERAL.—Of the amount provided to a State educational agency (from the agency's allotment under section 2411(a)(2)) for a fiscal year— "(1) the State educational agency may use not more than 5 percent to carry out activities under section 2415; and "(2) the State educational agency shall distribute the remainder as follows: "(A) From 50 percent of the remainder, the State educational agency shall award subgrants by allocating to each eligible local educational agency that has submitted an application to the State educational agency under section 2414, for the activities described in section 2416, an amount that bears the same relationship to 50 percent of the remainder for such year as the amount received under part A of title I for such year by such local educational agency bears to the amount received under such part for such year by all local educational agencies within the State. "(B) From 50 percent of the remainder and subject to subsection (b), the State educational agency shall award subgrants, through a State-determined competitive process, to eligible local entities that have submitted applications to the State educational agency under section 2414, for the activities described in section 2416. "(b) SUFFICIENT AMOUNTS. — "(1) SPECIAL RULE.— In awarding a subgrant under subsection (a)(2)(B), the State educational agency shall— "(A) determine the local educational agencies that— "(i) received allocations under subsection (a)(2)(A) that are not of sufficient size to be effective, consistent with the purposes of this part; and "(ii) are eligible local entities; "(B) give priority to applications submitted by eligible local educational agencies described in subparagraph (A); and "(C) determine the minimum amount for awards under subsection (a)(2)(B) to ensure that subgrants awarded under that subsection are of sufficient size to be effective. "(2) SUFFICIENCY.— In awarding subgrants under subsection (a)(2)(B), each State educational agency shall ensure that each subgrant is of sufficient size and duration, and that the program funded by the subgrant is of sufficient scope and quality, to carry out the purposes of this part effectively.
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