104 STAT. 780 PUBLIC LAW 101-392—SEPT. 25,1990 Contracts. Handicapped persons. Disadvantaged persons. "(2) The State may waive the application of paragraph (1) in any case in which the local educational agency— "(A) is located in a rural, sparsely-populated area; and "(B) demonstrates that the agency is unable to enter into a consortium for purposes of providing services under this part. "(3) Any amounts which are not allocated by reason of paragraph (1) or paragraph (2) shall be redistributed to local educational agencies that meet the requirements of paragraph (1) or paragraph (2) in accordance with the provisions of this section. "(c) LIMITED JURISDICTION AGENCIES.—(1) In applying the provi- sions of subsection (a), no State board receiving assistance under this Act shall allocate funds to a local educational agency that serves only elementary schools, but shall distribute such funds to the local or regional educational agency which provides secondary school services to secondary school students in the same attendance area. "(2) 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 entered such secondary schools in the previous year from the elementary schools involved. "(d) ALLOCATIONS TO AREA VOCATIONAL EDUCATION SCHOOLS AND INTERMEDIATE EDUCATIONAL AGENCIES.—(1) The State shall distrib- ute funds available for secondary school vocational education programs to the appropriate area vocational education school or intermediate educational agency in any case in which— "(A) the area vocational education school or intermediate educational agency and the local educational agency concerned— "(i) have formed or will form a consortium for the pur- pose of receiving funds under this section; or "(ii) have entered into or will enter into a cooperative arrangement for such purpose; and "(B)(i) the area vocational education school or intermediate educational agency serves an approximately equal or greater proportion of students with handicaps and students who are economically disadvantaged than the proportion of such stu- dents attending the secondary schools under the jurisdiction of all of the local educational agencies sending students to the area vocational education school or the intermediate educational agency; or "(ii) the area vocational education school, intermediate edu- cational agency, or local educational agency demonstrates that it is unable to meet the criterion described in clause (i) due to the lack of interest by students described in clause (i) in attend- ing vocational education programs in that area school or intermediate educational agency. "(2) If an area vocational education school or intermediate edu- cational agency meets the requirements of paragraph (1), then— "(A) the amount that would otherwise be distributed to the local educational agency shall be allocated to the area voca- tional education school, the intermediate educational agency, and the local educational agency based on each school's or entity's relative share of students described in paragraph (l)(B)(i) who are attending vocational education programs that meet the requirements of section 235 (based, if practicable, on the average enrollment for the prior 3 years); or