The Secretary determines that an LEA is not eligible for financial assistance under section 8003(b)(2) if—

1. (a) The LEA is in a State that has an equalized program of State aid that meets the requirements of section 8009; and

2. (b) The State, in determining the LEA's eligibility for or amount of State aid, takes into consideration the portion of the LEA's payment under section 8003(b)(2) that exceeds what the LEA would receive under section 8003(b)(1).

   (Authority: 20 U.S.C. 7703(b)(2))