may enter into a consortium with other local edu-
cational agencies for purposes of meeting the mini-
mum allocation requirement of this paragraph.
‘‘(2) WAIVER.—The State shall waive the appli-
cation of paragraph (1) in any case in which the
local educational agency—
‘‘(A)(i) is located in a rural, sparsely popu-
lated area, or
‘‘(ii) is a public charter school operating
secondary vocational-technical education pro-
grams; and
‘‘(B) demonstrates that the agency is un-
able to enter into a consortium for purposes of
providing services under this part.
‘‘(3) REDISTRIBUTION.—Any amounts that are
not allocated by reason of paragraph (1) or para-
graph (2) shall be redistributed to local educational
agencies that meet the requirements of paragraph
(1) or (2) in accordance with the provisions of this
section.
‘‘(e) LIMITED JURISDICTION AGENCIES.—
‘‘(1) IN GENERAL.—In applying the provisions
of subsections (a), (b), (c), and (d), no State receiv-
ing assistance under this Act shall allocate funds to
a local educational agency that serves only elemen-
tary schools, but shall distribute such funds to the
local educational agency or regional educational
agency that provides secondary school services to
secondary school students in the same attendance
area.
‘‘(2) SECONDARY SCHOOL JURISDICTION.—The
amount to be allocated under paragraph (1) to a
local educational agency that has jurisdiction only
over secondary schools shall be determined based on
the number of students that were enrolled in such
secondary schools in the previous year from the ele-
mentary schools involved.
‘‘(f) ALLOCATIONS
TO AREA VOCATIONAL-TECH-
NICAL EDUCATION SCHOOLS AND EDUCATIONAL SERVICE
AGENCIES.—
‘‘(1) IN GENERAL.—Each State shall distribute
funds available for secondary school vocational-tech-
nical education programs to the appropriate area vo-
cational-technical education school or educational
service agency in any case in which the area voca-
tional-technical education school or educational serv-
ice agency and the local educational agency con-
cerned—
‘‘(A) have formed or will form a consor-
tium for the purpose of receiving funds under
this section; or
‘‘(B) have entered into or will enter into a
cooperative arrangement for such purpose.
‘‘(2) ALLOCATION
BASIS.—If an area voca-
tional-technical education school or educational serv-
ice agency meets the requirements of paragraph (1),
then the amount that would otherwise be distributed
to the local educational agency shall be allocated to
the area vocational-technical education school, the
educational service agency, and the local educational
agency based on each school’s or entity’s relative
share of students who are attending vocational-tech-
nical education programs (based, if practicable, on
the average enrollment for the prior 3 years).
‘‘(3) APPEALS PROCEDURE.—The State board
shall establish an appeals procedure for resolution of
any dispute arising between a local educational
agency and an area vocational-technical education
school or an educational service agency with respect
to the allocation procedures described in this section,
including the decision of a local educational agency
to leave a consortium or terminate a cooperative ar-
rangement.
‘‘(g) CONSORTIUM REQUIREMENTS.—
‘‘(1) ALLIANCE.—Any local educational agency
receiving an allocation that is not sufficient to con-
duct a program which meets the requirements of
section 225 is encouraged to—
‘‘(A) form a consortium or enter into a co-
operative agreement with an area vocational-
technical education school or educational service
agency offering programs that meet the require-
ments of section 225; and
‘‘(B) transfer such allocation to the area
vocational-technical education school or edu-
cational service agency; and
‘‘(C) operate programs that are of suffi-
cient size, scope, and quality as to be effective.
‘‘(2) FUNDS TO CONSORTIUM.—Funds allocated
to a consortium formed to meet the requirements of
this paragraph shall be used only for purposes and
programs that are mutually beneficial to all mem-
bers of the consortium and can be used only for pro-
grams authorized under this Act. Such funds may
not be reallocated to individual members of the con-
sortium for purposes or programs benefiting only
one member of the consortium.
‘‘(h) DATA.—The Secretary shall collect information
from States regarding the specific dollar allocations made
available by the State for vocational-technical education
programs under subsections (a), (b), (c), and (d) and how
these allocations are distributed to local educational agen-
cies, area vocational-technical education schools, edu-
cational services agencies, and eligible institutions within
the State in accordance with this section.
‘‘SEC. 222. DISTRIBUTION OF FUNDS FOR POSTSECONDARY
AND ADULT VOCATIONAL-TECHNICAL EDU-
CATION PROGRAMS.
‘‘(a) ALLOCATION.—
‘‘(1) IN GENERAL.—Except as provided in sub-
sections (b) and (c) and section 223, each State
shall distribute funds available in any fiscal year for
postsecondary and adult vocational-technical edu-
cation programs to eligible institutions or consortia
of eligible institutions within the State.
‘‘(2) FORMULA.—Each eligible institution or
consortium of eligible institutions shall receive an
amount that bears the same relationship to the
amount of funds available under such section as the
number of individuals who are Pell Grant recipients
or recipients of assistance from the Bureau of In-
dian Affairs and are enrolled in programs meeting
the requirements of section 225 offered by such in-
stitution or consortium in the preceding fiscal year
bears to the number of such recipients enrolled in
such programs within the State for such year.
‘‘(3) CONSORTIUM REQUIREMENTS.—
‘‘(A) IN GENERAL.—In order for a consor-
tium of eligible institutions described in para-
graph (2) to receive assistance pursuant to such
paragraph, such consortium shall operate joint
projects that—
‘‘(i) provide services to all postsecond-
ary institutions participating in the consor-
tium; and
‘‘(ii) are of sufficient size, scope, and
quality as to be effective.
‘‘(B) FUNDS TO CONSORTIUM.—Funds al-
located to a consortium formed to meet the re-
quirements of this section shall be used only for
purposes and programs that are mutually bene-
ficial to all members of the consortium and can
be used only for programs authorized under
this Act. Such funds may not be reallocated to
individual members of the consortium for pur-
poses or programs benefiting only one member
of the consortium.