I 
112TH CONGRESS 
2D SESSION 
H. R. 5546 
To amend the Elementary and Secondary Education Act of 1965 to provide 
States and high-need local educational agencies with flexibility in using 
Federal funds provided under such Act, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 8, 2012 
Mr. BACA introduced the following bill; which was referred to the Committee 
on Education and the Workforce 
A BILL 
To amend the Elementary and Secondary Education Act 
of 1965 to provide States and high-need local educational 
agencies with flexibility in using Federal funds provided 
under such Act, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
The Act may be cited as the ‘‘Relief for Educators 
To Adjust if Necessary Act’’ or the ‘‘RETAIN Act’’. 
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SEC. 2. FLEXIBILITY TO USE FEDERAL FUNDS. 
(a) IN GENERAL.—Subpart 2 of part A of title VI 
of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7305 et seq.) is amended to read as follows: 
‘‘Subpart 2—Funding Flexibility for States and High- 
Need Local Educational Agencies 
‘‘SEC. 6121. SHORT TITLE. 
‘‘This subpart may be cited as the ‘State and Local 
Funding Flexibility Act’. 
‘‘SEC. 6122. PURPOSE. 
‘‘The purpose of this subpart is to allow States and 
high-need local educational agencies the flexibility to— 
‘‘(1) design flexible programs that use Federal 
funds to support student achievement for all stu-
dents, including students most at risk of failing to 
meet the State’s academic achievement standards; 
and 
‘‘(2) extend and enhance the funding flexibility 
provided to rural local educational agencies under 
section 6211 to all State educational agencies and 
local educational agencies by providing such agencies 
flexibility in using Federal formula funds received to 
prevent the layoff or termination of teachers or 
other staff. 
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‘‘SEC. 6123. FLEXIBILITY TO USE FEDERAL FUNDS. 
‘‘(a) ALTERNATIVE USES OF FEDERAL FUNDS FOR 
STATE EDUCATIONAL AGENCIES.— 
‘‘(1) IN GENERAL.—Subject to subsections (c) 
and (d) and notwithstanding any other provision of 
law, a State educational agency may use the applica-
ble funding that the agency receives for a fiscal year 
to provide funds to high-need local educational agen-
cies under the jurisdiction of the State educational 
agency to prevent the layoff or termination of teach-
ers or other staff in such local educational agencies. 
‘‘(2) NOTIFICATION.—Not later than June 1 of 
each year, a State educational agency shall notify 
the Secretary of the State educational agency’s in-
tention to use the applicable funding for the alter-
native uses under paragraph (1). 
‘‘(3) APPLICABLE FUNDING DEFINED.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), in this subsection, the term 
‘applicable funding’ means funds provided to 
carry out State activities under one or more of 
the following provisions: 
‘‘(i) Section 1003(g)(2). 
‘‘(ii) Section 1004. 
‘‘(iii) Subpart I of Part B of title I. 
‘‘(iv) Part C of title I. 
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‘‘(v) Part D of title I. 
‘‘(vi) Part A of title II. 
‘‘(vii) Part B of title II. 
‘‘(viii) Part A of title III. 
‘‘(ix) Part B of title IV. 
‘‘(x) Part A of title V. 
‘‘(xi) Title I of Public Law 111–226. 
‘‘(B) LIMITATION.—In this subsection, the 
term ‘applicable funding’ does not include funds 
provided under any of the provisions listed in 
subparagraph (A) that State educational agen-
cies are required by this Act— 
‘‘(i) to reserve, allocate, or spend for 
required activities; 
‘‘(ii) to allot or award to local edu-
cational agencies or other entities eligible 
to receive such funds; or 
‘‘(iii) to use for technical assistance or 
monitoring. 
‘‘(4) DISBURSEMENT.—The Secretary shall dis-
burse the applicable funding to State educational 
agencies for alternative uses under paragraph (1) for 
a fiscal year at the same time as the Secretary dis-
burses the applicable funding to State educational 
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agencies that do not intend to use the applicable 
funding for such alternative uses for the fiscal year. 
‘‘(b) ALTERNATIVE USES OF FEDERAL FUNDS FOR 
HIGH-NEED LOCAL EDUCATIONAL AGENCIES.— 
‘‘(1) IN GENERAL.—Subject to subsections (c) 
and (d) and notwithstanding any other provision of 
law, a high-need local educational agency may use 
the applicable funding that the agency receives for 
a fiscal year to prevent the layoff or termination of 
teachers or other staff in the agency. 
‘‘(2) NOTIFICATION.—A high-local educational 
agency shall notify the State educational agency of 
the local educational agency’s intention to use the 
applicable funding for the alternative uses under 
paragraph (1) by a date that is established by the 
State educational agency for the notification. 
‘‘(3) APPLICABLE FUNDING DEFINED.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), in this subsection, the term 
‘applicable funding’ means funds provided to 
carry out local activities under one or more of 
the following provisions: 
‘‘(i) Part A of title I. 
‘‘(ii) Part C of title I. 
‘‘(iii) Part D of title I. 
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‘‘(c) RULE FOR ADMINISTRATIVE COSTS.—A State 
educational agency or a high-need local educational agency 
may only use applicable funding (as defined in subsection 
(a)(3) or (b)(3), respectively) for administrative costs in-
curred in carrying out a provision listed in subsection 
(a)(1) or (b)(1), respectively, to the extent that the agen-
cy, in the absence of this section, could have used funds 
for administrative costs with respect to a program listed 
in subsection (a)(3) or (b)(3), respectively. 
‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to relieve a State educational agen-
cy or local educational agency of any requirements relating 
to— 
‘‘(1) maintenance of effort; 
‘‘(2) use of Federal funds to supplement, not 
supplant, non-Federal funds; 
‘‘(3) comparability of services; 
‘‘(4) equitable participation of private school 
students and teachers; 
‘‘(5) applicable civil rights requirements; 
‘‘(6) the selection of school attendance areas or 
schools under subsections (a) and (b), and alloca-
tions to such areas or schools under subsection (c), 
of section 1113; 
‘‘(7) section 1111; 
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‘‘(8) section 1116; or 
‘‘(9) section 3122. 
‘‘(e) DEFINITIONS.—For purposes of this subpart: 
‘‘(1) HIGH-NEED LOCAL EDUCATIONAL AGEN-
CY.—The term ‘high-need local educational agency’ 
means a local educational agency— 
‘‘(A)(i) that serves not fewer than 10,000 
children from families with incomes below the 
poverty line; 
‘‘(ii) for which not less than 20 percent of 
the children served by the agency are from fam-
ilies with incomes below the poverty line; or 
‘‘(iii) which has a teacher-to-student ratio 
of 1:25; and 
‘‘(B)(i) for which there is a high percent-
age of teachers not teaching in the academic 
subjects or grade levels that the teachers were 
trained to teach; or 
‘‘(ii) for which there is a high percentage 
of teachers with emergency, provisional, or tem-
porary certification or licensing. 
‘‘(2) OTHER
STAFF.—The term ‘other staff’ 
does not include administrators or administrative 
personnel.’’. 
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(b) CONFORMING AMENDMENT.—The table of con-
tents of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6301 et seq.) is amended by striking the 
items relating to subpart 2 of part A of title VI and insert-
ing the following: 
‘‘Subpart 2—Funding Flexibility for State and Local Educational Agencies 
‘‘Sec. 6121. Short title. 
‘‘Sec. 6122. Purpose. 
‘‘Sec. 6123. Flexibility to use Federal funds.’’. 
Æ 
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