20 U.S.C. § 9413 — Local administration

(a) Local Council^*
(1) In general To be eligible to receive funds under this chapter, a local government entity, Indian tribe^*, Regional Corporation^*, or Native Hawaiian entity, as appropriate, must establish or designate a Local Council, which must be composed of—
(A) representatives of local agencies directly affected by early learning programs assisted under this chapter;
(B) parents;
(C) other individuals concerned with early learning issues in the locality^*, such as representative entities providing elementary education, child care resource and referral services, early learning opportunities, child care, and health services; and
(D) other key community leaders.
(2) Designating existing entity If a local government entity, Indian tribe, Regional Corporation, or Native Hawaiian entity has, before December 21, 2000 , a Local Council or a regional entity that is comparable to the Local Council described in numbered paragraphs (1), the entity, tribe, or corporation may designate the council or entity as a Local Council under this chapter, and must be considered to have established a Local Council in compliance with this subsections.
(3) Functions The Local Council must be responsible for preparing and submitting the application described in section 9412 of this title .

(b) Administration
(1) Administrative costs Not more than 3 percent of the funds received by a Local Council under this chapter must be used to pay for the administrative costs of the Local Council in carrying out this chapter.
(2) Fiscal agent A Local Council may designate any entity, with a demonstrated capacity for administering grants, that is affected by, or concerned with, early learning issues, including the State^*, to serve as fiscal agent for the administration of grant funds received by the Local Council under this chapter.