Page:United States Statutes at Large Volume 108 Part 5.djvu/291

 PUBLIC LAW 103-382—OCT. 20, 1994 108 STAT. 3781 "(A) be ineligible to apply for any other grant under this subpart; and "(B) be liable to the United States for any funds that have not been expended, "(3) EXCLUDED CHILDREN. — A student who provides false information for the form required under subsection (d) shall not be counted for the purpose of computing the amount of a grant under section 9113. "(g) DISTRIBUTION.— For the purposes of the distribution of funds under this subpart to schools that receive funding from the Bureau of Indian Affairs pursuant to— "(1) section 1130 of the Education Amendments of 1978; and "(2) the Act of April 16, 1934 (48 Stat. 596, chapter 147), the Secretary shall, in lieu of meeting the requirements of this section for counting Indian children, use a count of the number of students in such schools certified by the Bureau of Indian Affairs. "SEC. 9117. PAYMENTS. 20 USC 7817. "(a) IN GENERAL.—Subject to subsections (b) and (c), the Secretary shall pay to each local educational agency that submits an application that is approved by the Secretary under this subpart the amount determined under section 9113. The Secretary shall notify the local educational agency of the amount of the payment not later than June 1 of the year for which the Secretary makes the payment. "(b) PAYMENTS TAKEN INTO ACCOUNT BY THE STATE.— The Secretary may not make a grant under this subpart to a local educational agency for a fiscal year if, for such fiscal year, the State in which the local educational agency is located takes into consideration payments made under this subpart (or under subpart 1 of the Indian Education Act of 1988) in determining the eligibility of the local educational agency for State aid, or the amount of the State aid, with respect to the free public education of children during such fiscal year or the preceding fiscal year. "(c) REDUCTION OF PAYMENT FOR FAILURE TO MAINTAIN FISCAL EFFORT. — "(1) IN GENERAL.— The Secretary may not pay a local educational agency the full amount of a grant award determined under section 9113 for any fiscal year unless the State educational agency notifies the Secretary, and the Secretary determines, that with respect to the provision of free public education by the local educational agency for the preceding fiscal year, that the combined fiscal effort of the local educational agency and the State, computed on either a per student or aggregate expenditure basis was not less than 90 percent of the amount of the combined fiscal effort, computed on the same basis, for the second preceding fiscsQ year. "(2) FAILURE.— If, for any fiscal year, the Secretary determines that a local educational agency failed to maintain the fiscal effort of such agency at the level specified in paragraph (1), the Secretary shall— "(A) reduce the amount of the grant that would otherwise be made to such agency under this subpart in the exact proportion of such agency's failure to maintain its fiscal effort at such level; and

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