 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
         SUBCHAPTER VI--INNOVATIVE EDUCATION PROGRAM STRATEGIES
 
                         Part B--State Programs
 
Sec. 7332. State applications


(a) Application requirements

    Any State which desires to receive assistance under this part shall 
submit to the Secretary an application which--
        (1) designates the State educational agency as the State agency 
    responsible for administration and supervision of programs assisted 
    under this subchapter;
        (2)(A) provides for a biennial submission of data on the use of 
    funds, the types of services furnished, and the students served 
    under this subchapter; and
        (B) in fiscal year 1998 provides for an evaluation of the 
    effectiveness of programs assisted under this subchapter;
        (3) sets forth the allocation of such funds required to 
    implement section 7372 of this title;
        (4) provides that the State educational agency will keep such 
    records and provide such information to the Secretary as may be 
    required for fiscal audit and program evaluation (consistent with 
    the responsibilities of the Secretary under this section);
        (5) provides assurance that, apart from technical and advisory 
    assistance and monitoring compliance with this subchapter, the State 
    educational agency has not exercised and will not exercise any 
    influence in the decisionmaking processes of local educational 
    agencies as to the expenditure made pursuant to an application under 
    section 7353 of this title;
        (6) contains assurances that there is compliance with the 
    specific requirements of this subchapter; and
        (7) provides for timely public notice and public dissemination 
    of the information provided pursuant to paragraph (2).

(b) Period of application

    An application filed by the State under subsection (a) of this 
section shall be for a period not to exceed three years, and may be 
amended annually as may be necessary to reflect changes without filing a 
new application.

(c) Audit rule

    Local educational agencies receiving less than an average of $5,000 
each under this subchapter shall not be audited more frequently than 
once every five years.

(Pub. L. 89-10, title VI, Sec. 6202, as added Pub. L. 103-382, title I, 
Sec. 101, Oct. 20, 1994, 108 Stat. 3710.)

                  Section Referred to in Other Sections

    This section is referred to in section 7312 of this title.
