SEC. 5002.

FUNDING TRANSFERABILITY FOR STATE AND LOCAL EDUCATIONAL AGENCIES

Section Summary

ESSA

SEC. 5002. FUNDING TRANSFERABILITY FOR STATE AND LOCAL EDUCATIONAL

AGENCIES.

Part A of title V, as redesignated and amended by section 5001 of

this Act, is further amended--

(1) in the part heading, by striking ``improving academic

achievement'' and inserting ``funding transferability for state

and local educational agencies'';

(2) by striking ``Subpart 2--Funding Transferability for

State and Local Educational Agencies'';

(3) <<NOTE: 20 USC 7305, 7305b.>> by striking ``subpart''

each place it appears and inserting ``part'';

(4) by amending section 5102 <<NOTE: 20 USC 7305a.>> to read

as follows:

``SEC. 5102. PURPOSE.

``The purpose of this part is to allow States and local educational

agencies the flexibility to target Federal funds to the programs and

activities that most effectively address the unique needs of States and

localities.'';

(5) in section 5103 <<NOTE: 20 USC 7305b.>> --

(A) in subsection (a)--

(i) in paragraph (1)--

(I) in the matter preceding

subparagraph (A), by striking ``not more

than 50 percent of the nonadministrative

State funds'' and inserting ``all, or

any lesser amount, of State funds''; and

(II) by striking subparagraphs (A)

through (D) and inserting the following:

``(A) Part A of title II.

``(B) Part A of title IV.

``(C) Section 4202(c)(3).''; and

(ii) by striking paragraph (2) and inserting

the following;

``(2) Additional funds.--In accordance with this part, a

State may transfer any funds allotted to the State under a

provision listed in paragraph (1) for a fiscal year to its

allotment under any other of the following provisions:

``(A) Part A of title I.

``(B) Part C of title I.

``(C) Part D of title I.

``(D) Part A of title III.

[[Page 129 STAT. 2041]]

``(E) Part B.''.

(B) in subsection (b)--

(i) in paragraph (1)--

(I) in subparagraph (A), by striking

``(except'' and all that follows through

``subparagraph (C))'' and inserting

``may transfer all, or any lesser

amount, of the funds allocated to it'';

(II) by striking subparagraphs (B)

and (C) and inserting:

``(B) Additional funds.--In accordance with this

part, a local educational agency may transfer any funds

allotted to such agency under a provision listed in

paragraph (2) for a fiscal year to its allotment under

any other of the following provisions:

``(i) Part A of title I.

``(ii) Part C of title I.

``(iii) Part D of title I.

``(iv) Part A of title III.

``(v) Part B.'';

(ii) in paragraph (2)--

(I) in the matter preceding

subparagraph (A), by striking

``subparagraph (A), (B), or (C)'' and

inserting ``subparagraph (A) or (B)'';

and

(II) by striking subparagraphs (A)

through (D) and inserting the following:

``(A) Part A of title II.

``(B) Part A of title IV.'';

(C) by striking subsection (c) and inserting the

following:

``(c) No Transfer of Certain Funding.--A State or local educational

agency may not transfer under this part to any other program any funds

allotted or allocated to it for the following provisions:

``(1) Part A of title I.

``(2) Part C of title I.

``(3) Part D of title I.

``(4) Part A of title III.

``(5) Part B.''; and

(D) in subsection (e)(2), by striking ``section

9501'' and inserting ``section 8501''.

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