§ 301.5 Application contents.

An application must include the following material:

(a) A description of the State's goals and objectives for meeting the educational needs of handicapped children ages three through five. These goals and objectives must be consistent with the State's full educational opportunity goal under § 300.123 of this chapter. (b) A description of the objectives to be supported by the grant in sufficient detail to determine what will be achieved with the grant.

(c) A description of the activities to be supported by the grant. The activities must be related to the objectives under paragraph (b) of this section and must be described in sufficient detail to determine how the grant will be used.

(d) A description of the impact the proposed activities will have on handicapped children ages three through five. This description must include evidence that the proposed activities are of sufficient size, scope, and quality to warrant the amount of the expenditure. The application must indicate the number of children to be served and the number of handicapped children who will be benefitted indirectly. If children are to be benefitted indirectly, there must be a rationale that demonstrates the benefit.

(e) The number of local educational agencies or intermediate educational units, and the number and names of other agencies which will provide con

tractual services under the grant, the activities they will carry out, and the reasons for selecting these agencies.

(f) The dollar amounts that will be spent for each major activity described.

(g) A description of the procedures the State will use to evaluate the extent to which the activities met the objectives described under paragraph (b) of this section

(20 U.S.C. 1419(b))

§ 301.6 Amount of grant.

(a) The amount of a grant is $300 multiplied by the average number of children ages three through five counted during the current school year under §§ 300.750-300.754 of this chapter.

(b) If appropriated funds are less than enough to pay in full the grants under this part, the amount of each grant is ratably reduced.

(20 U.S.C. 1419 (a), (d))

§ 301.7 Allowable expenditures.

(a) The State educational agency may use funds under this part to give special education and related services to handicapped children ages three through five who are not counted under §§ 300.750-300.754 of this chap ter if the State educational agency insures that those children have all of the rights afforded under Part 300 of this chapter.

(b) The State educational agency may use up to five percent of its grant for the costs of administering the funds provided under this part.

(20 U.S.C. 1419(c))

Comment. In carrying out the provisions of this part some activities are considered particularly appropriate for the use of these funds: (1) Providing parents with child de velopment information; (2) assisting parents in the understanding of the special needs of their handicapped child; (3) providing parent counseling and parent training. where appropriate, to enable parents to work more effectively with their children. (4) providing essential diagnosis and assess ment; (5) providing transportation essential to the delivery of services; (6) providing speech therapy, occupational therapy, or physical therapy.

Subpart H-Requirements Under Part B of the Education of the Handicapped Act

302.70 Part B regulations.

302.71 Supervision of programs for handicapped children.

302.72 Use of funds for handicapped children.

302.73 State educational agency standards. 302.74 Withholding payments for noncompliance.

AUTHORITY: Sec. 121 of Pub. L. 89-10, as amended, 88 Stat. 491-492 (20 U.S.C. 241c-1), unless otherwise noted.

SOURCE: 43 FR 16262, Apr. 17, 1978, unless otherwise noted. Redesignated at 45 FR 77368, Nov. 21, 1980.

Subpart A-General

§ 302.1 Scope.

This part applies to programs and projects assisted under section 121 of

Title I of the Elementary and Secondary Education Act of 1965, as amended.

(20 U.S.C. 241c-1)

§ 302.2 Regulations that apply to State Operated Programs for Handicapped Children.

(a) Regulations. The following regulations apply to State Operated Programs for Handicapped Children:

(1) The Education Department General Administrative Regulations (EDGAR) in 34 CFR Part 76 (StateAdministered Programs) and Part 77 (Definitions).

(2) The regulations in this Part 302. (3) The regulations in 34 CFR Part 200 (general requirements relating to Title I of the Act). However, § 200.92 (Use of funds for services that the applicant is required to provide) does not apply.

(b) How to use regulations; how to apply for funds. The "Introduction to Regulations of the Department" at the beginning of EDGAR includes general information to assist in

(1) Using regulations that apply to Department programs; and

(2) Applying for assistance under a Department program.

(20 U.S.C. 1221e-3(a)(1))

[45 FR 22531, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980]

As used in this part (in addition to the definitions set forth in Parts 77 and 200 of this chapter):

"Handicapped children" includes those children who are mentally retarded, hard of hearing, deaf, speech impaired, visually handicapped, seriously emotionally disturbed, or other health impaired, who because of those impairments need special education.

"Related services" is used in this part as defined in § 300.13 of this chapter.

"Special education" is used in this part as defined in § 300.14 of this chapter.

"State agency" means an institution or agency of the State which has direct responsibility established under State law for providing free public education for handicapped children.

a

"State-operated school" means school or a program which is administered directly by a State agency.

"State-supported school" means a school or program operated under contract or other arrangement with a State agency.

(20 U.S.C. 241c-1; 20 U.S.C. 1401 (16), (17))

Comment. A State agency may use funds under this part only to serve those handicapped children for whom the agency is directly responsible for providing free public education. The State agency may serve those handicapped children in State-operated or in State-supported schools. Although typically the State agency contributes a significant portion of the cost of providing education to handicapped children in a State-supported school, the extent of that contribution is irrelevant as long as the State agency is legally responsible for providing education to the handicapped children in that State-supported school.

[43 FR 16262, Apr. 17, 1978, as amended at 45 FR 22531, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980]

§ 302.14 Reallocation of funds between State agencies.

The State educational agency shall reallocate funds (subject to the prior written approval of the Secretary) between State agencies if a handicapped child who generated funds in one participating State agency is transferred to another participating State agency. (20 U.S.C. 241c-1)

Subpart C-State Agency Participation

§ 302.20 State agency eligibility.

Each State agency is eligible to receive a grant under this part for each fiscal year.

(20 U.S.C. 241c-1)

§ 302.21 Project application requirements. (a) In order to receive a grant under this part, a State agency must submit a project application to the State educational agency.

(b) A project application must: (1) Meet the requirements in Subpart D of Part 200 of this chapter;

(2) Set forth the number of handicapped children to be served with funds under this part;

(3) Describe the nature and purpose of the proposed project and include measurable child-centered objectives;

(4) Identify each school in which the handicapped children are enrolled, the number of those children, and their ages and handicapping conditions;

(5) Describe the educational services currently being provided for handicapped children with State and local funds in each of these schools;

(6) Provide an assessment and discription of the needs of those children for special education and related services based on the best available data, including data on their past educational performance;

(7) Describe each educational service to be provided with funds under this part to meet the needs assessed and described under paragraph (b)(6) of this section;

(8) Describe any proposed training for the school staff and for the parents of those children;

(9) Describe the procedures which will be used to evaluate the effectiveness of the project;

(10) Describe the nature and extent of any proposed coordination with other Federal, State, or local agencies, or related programs, in the development, operation, and administration of the program or project assisted under this part;

(11) Provide for educational services and training for parents of those children, to the extent that parental understanding of the services being provided to their children could contribute to the effectiveness of the program or project;

(12) Describe the procedures to be used in developing and implementing the individualized education program which must be provided for each handicapped child under Part 300 of this chapter;

(13) Describe the procedures which were used to give parents of these children an opportunity to participate in the development of the project application; and

(14) Describe the methods of dissemination of project information.

(20 U.S.C. 241c-1)

§ 302.22 Parental participation in the development of the project application. Each State agency shall provide parents of the children to be served with funds under this part with an opportunity to participate in the development of its project application.

(20 U.S.C. 241c-1; 1231d)

§ 302.23 State agency responsibilities. Each State agency shall:

(a) Coordinate and consult with its State educational agency in the development, implementation, supervision, and evaluation of programs and projects assisted under this part; and

(20 U.S.C. 241c-1)

[43 FR 16262, Apr. 17, 1978, as amended at 45 FR 22531, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980]

§ 302.24 Children who may be served.

A State agency may use funds under this part only for programs and projects (including the acquisition of equipment and, where necessary, the construction of school facilities) which are designed to meet the special educational needs of handicapped children for whom the State agency is directly responsible for providing free public education.

(20 U.S.C. 241c-1)

§ 302.25 Reporting by State agency of children transferring to a local educational agency program.

(a) Each State agency which receives funds under this part shall submit an annual report to the State educational agency of all handicapped children who:

(1) Were counted in average daily attendance under section 121 of the Act during the school year 1971-1972 or in a subsequent year; and

(2) Will leave or have left the special education program operated or supported by that agency in order to participate in a special education program operated or supported by a local educational agency.

(b) The State educational agency shall prescribe the manner of submitting the report.

(c) Each State agency shall insure that the report includes:

(1) The name of each child (or other information used by the State to identify the child),

(2) A description of each child's handicapping condition (or other information used by the State to identify the handicapping condition), and

(3) The name of the local educational agency in which the child will enroll.

(20 U.S.C. 241c-1)

Subpart D-Local Educational Agency Participation

§ 302.30 Local educational agency project application.

(a) In order to receive funds under this part, a local educational agency must submit a project application to the State educational agency.

Comment. 1. Under the statute, it is the responsibility of the State agency to transfer funds to a local educational agency. However, under § 302.12, the State educational agency may transfer the funds directly to the local educational agency as the fiscal agent of the State agency.

2. The local educational agency receives funds based on the number of transfer children that it serves. Subpart E provides the rules for counting these children. The local educational agency submits its count to the State educational agency.

3. It should be noted that funds generated by the count of a child in one year are not available until the following year. Because of this one-year delay in the availability of funds, the determination of which agency (local or State) should receive the funds can become a complex problem. The following clarifications are provided to assist in determining whether or not the transfer of funds to a local educational agency is mandatory.

(a) The local educational agency may receive all funds generated by a child whom the local educational agency counted in the previous year, subject to the compliance by