 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
         SUBCHAPTER VI--INNOVATIVE EDUCATION PROGRAM STRATEGIES
 
                         Part B--State Programs
 
Sec. 7331. State uses of funds


(a) Authorized activities

    A State educational agency may use funds made available for State 
use under this subchapter only for--
        (1) State administration of programs under this subchapter 
    including--
            (A) supervision of the allocation of funds to local 
        educational agencies;
            (B) planning, supervision, and processing of State funds; 
        and
            (C) monitoring and evaluation of programs and activities 
        under this subchapter;

        (2) support for planning, designing, and initial implementation 
    of charter schools as described in part C of subchapter X of this 
    chapter; and
        (3) technical assistance and direct grants to local educational 
    agencies and statewide education reform activities including 
    effective schools programs which assist local educational agencies 
    to provide targeted assistance.

(b) Limitations and requirements

    Not more than 25 percent of funds available for State programs under 
this subchapter in any fiscal year may be used for State administration 
under subsection (a)(1) of this section.

(Pub. L. 89-10, title VI, Sec. 6201, as added Pub. L. 103-382, title I, 
Sec. 101, Oct. 20, 1994, 108 Stat. 3709; amended Pub. L. 105-278, 
Sec. 2(1), Oct. 22, 1998, 112 Stat. 2682.)


                               Amendments

    1998--Subsec. (a)(2), (3). Pub. L. 105-278 added par. (2) and 
redesignated former par. (2) as (3).
