 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
                   SUBCHAPTER XIV--GENERAL PROVISIONS
 
    Part B--Flexibility in the Use of Administrative and Other Funds
 
Sec. 8821. Consolidation of State administrative funds for 
        elementary and secondary education programs
        

(a) Consolidation of administrative funds

                           (1) In general

        A State educational agency may consolidate the amounts 
    specifically made available to such agency for State administration 
    under one or more of the programs specified under paragraph (2) if 
    such State educational agency can demonstrate that the majority of 
    such agency's resources come from non-Federal sources.

                          (2) Applicability

        This section applies to programs under subchapter I of this 
    chapter, those covered programs described in subparagraphs (C), (D), 
    (E), and (F) of section 8801(10) of this title, and administrative 
    funds under section 308(c) \1\ of the Goals 2000: Educate America 
    Act.
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    \1\ See References in Text note below.
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(b) Use of funds

                           (1) In general

        A State educational agency shall use the amount available under 
    this section for the administration of the programs included in the 
    consolidation under subsection (a) of this section.

                         (2) Additional uses

        A State educational agency may also use funds available under 
    this section for administrative activities designed to enhance the 
    effective and coordinated use of funds under the programs included 
    in the consolidation under subsection (a) of this section, such as--
            (A) the coordination of such programs with other Federal and 
        non-Federal programs;
            (B) the establishment and operation of peer-review 
        mechanisms under this chapter;
            (C) the administration of this subchapter;
            (D) the dissemination of information regarding model 
        programs and practices; and
            (E) technical assistance under programs specified in 
        subsection (a)(2) of this section.

(c) Records

    A State educational agency that consolidates administrative funds 
under this section shall not be required to keep separate records, by 
individual program, to account for costs relating to the administration 
of programs included in the consolidation under subsection (a) of this 
section.

(d) Review

    To determine the effectiveness of State administration under this 
section, the Secretary may periodically review the performance of State 
educational agencies in using consolidated administrative funds under 
this section and take such steps as the Secretary finds appropriate to 
ensure the effectiveness of such administration.

(e) Unused administrative funds

    If a State educational agency does not use all of the funds 
available to such agency under this section for administration, such 
agency may use such funds during the applicable period of availability 
as funds available under one or more programs included in the 
consolidation under subsection (a) of this section.

(f) Consolidation of funds for standards and assessment development

    In order to develop challenging State standards and assessments, a 
State educational agency may consolidate the amounts made available to 
such agency for such purposes under subchapter I of this chapter and 
title III \1\ of the Goals 2000: Educate America Act.

(Pub. L. 89-10, title XIV, Sec. 14201, as added Pub. L. 103-382, title 
I, Sec. 101, Oct. 20, 1994, 108 Stat. 3890.)

                       References in Text

    The Goals 2000: Educate America Act, referred to in subsec. (f), is 
Pub. L. 103-227, Mar. 31, 1994, 108 Stat. 125 (except titles V and IX), 
as amended. Title III of the Act was classified generally to subchapter 
III (Sec. 5881 et seq.) of chapter 68 of this title and was repealed by 
Pub. L. 106-113, div. B, Sec. 1000(a)(4) [title III, Sec. 310(i)], Nov. 
29, 1999, 113 Stat. 1535, 1501A-265. Section 308 of the Act was 
classified to section 5888 of this title and was repealed by Pub. L. 
106-113. For complete classification of this Act to the Code, see Short 
Title note set out under section 5801 of this title and Tables.

                  Section Referred to in Other Sections

    This section is referred to in section 8823 of this title.
