Some unsolicited advice - you may want to rethink your strategy. One does not need to be a licensed attorney to work on public policy and regulations. You can get the basic education on administrative law and policy in places other than law school. Why waste the time and money at law school if you are not planning on practicing law? Also, the reality is, if you struggle with law school, you will likely struggle with passing the bar. If you have not discussed your plan with people you hope to emmulate, you should. Going down the very expensive law school path could be a huge financial mistake. If you are following someones advice to take the path you are on, you need to get a second opinion of someone you can trust (that is not me or anyone on these boards).
Now, to address your post specifically: I may be wrong - but retaking the LSAT after starting law school may be fruitless.
You will have to talk to the schools you are looking to transfer into, but I suspect the odds are against you. If you are looking to transfer "up," e.g. to Michigan State, they require something like a 3.25 to even be considered.
Again, not to be harsh, but with those numbers, I suspect you are paying full price -- I would seriously consider whether law school is truly a worthwhile investment. Graduating Cooley with a low GPA is not going to open many doors for you.