[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR403.113]

[Page 46-47]
 
                           TITLE 34--EDUCATION
 
  CHAPTER IV--OFFICE OF VOCATIONAL AND ADULT EDUCATION, DEPARTMENT OF 
                                EDUCATION
 
PART 403_STATE VOCATIONAL AND APPLIED TECHNOLOGY EDUCATION PROGRAM--Table of 
 
 Subpart E_What Kinds of Activities Does the Secretary Assist Under the 
                             Basic Programs?
 
Sec. 403.113  How does a State allocate funds under the Secondary School 

Vocational Education Program to area vocational education schools and 

intermediate educational agencies?

    (a) A State shall distribute funds reserved under Sec. 403.112(a) 
directly to the appropriate area vocational education school or 
intermediate educational agency in any case in which--
    (1) The area vocational education school or intermediate educational 
agency and an LEA--
    (i) Have formed or will form a consortium for the purpose of 
receiving funds reserved under Sec. 403.112(a); or
    (ii) Have entered into or will enter into a cooperative arrangement 
for the purpose of receiving funds reserved under Sec. 403.112(a); and
    (2)(i) The area vocational education school or intermediate 
educational agency serves a proportion of students with disabilities and 
students who are economically disadvantaged that is approximately equal 
to or greater than the proportion of those students attending the 
secondary schools under the jurisdiction of all of the LEAs sending 
students to the area vocational education school or the intermediate 
educational agency; or

[[Page 47]]

    (ii) The area vocational education school or intermediate 
educational agency demonstrates that it is unable to meet the criterion 
in paragraph (a)(2)(i) of this section due to the lack of interest by 
students with disabilities and students who are economically 
disadvantaged in attending vocational education programs in that area 
vocational education school or intermediate educational agency.
    (b) If an area vocational education school or intermediate 
educational agency meets the requirements of paragraph (a) of this 
section, then the amount that would otherwise be allocated to the LEA 
may be distributed to the area vocational education school, the 
intermediate educational agency, and the LEA--
    (1) Based on each school's or entity's relative share of students 
with disabilities and students who are economically disadvantaged who 
are attending vocational education programs that meet the requirements 
of Sec. 403.111 (based, if practicable, on the average enrollment for 
the prior 3 years); or
    (2) On the basis of an agreement between the LEA and the area 
vocational education school or intermediate educational agency.
    (c) Notwithstanding paragraphs (a) and (b) of this section, and 
Sec. Sec. 403.114 and 403.115, prior to distributing funds to any LEA 
that would receive an allocation that is not sufficient to conduct a 
program that meets the requirements of Sec. 403.111(c), a State shall 
encourage the LEA to--
    (1) Form a consortium or enter a cooperative agreement with an area 
vocational education school or intermediate educational agency offering 
programs that meet the requirements of Sec. 403.111(c), and that are 
accessible to economically disadvantaged students and students with 
disabilities that would be served by the LEA; and
    (2) Transfer its allocation to an area vocational education school 
or intermediate educational agency.
    (d) If an LEA's allocation under Sec. 403.112 meets the minimum 
grant requirement in Sec. 403.112(d), and the allocation is distributed 
in part to an area vocational education school or an intermediate 
educational agency pursuant to paragraphs (a) and (b) of this section, 
the LEA may retain the amount not distributed to the area vocational 
education school or an intermediate educational agency even though that 
amount is less than the minimum grant required by Sec. 403.112(d).

(Authority: 20 U.S.C. 2341(d) (1), (2), and (5))