(1) An SEA must use the payments that would otherwise have been available to an LEA or to a State agency to provide special education and related services directly to children with disabilities residing in the area served by that LEA, or for whom that State agency is responsible, if the SEA determines that the LEA or State agency—
Has not provided the information needed to establish the eligibility of the LEA or State agency, or elected not to apply for its Part B allotment, under Part B of the Act;
Is unable to establish and maintain programs of FAPE that meet the requirements of this part;
Is unable or unwilling to be consolidated with one or more LEAs in order to establish and maintain the programs; or
Has one or more children with disabilities who can best be served by a regional or State program or service delivery system designed to meet the needs of these children.
Last modified on May 3, 2017