[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3268 Reported in House (RH)]
Union Calendar No. 304
104th CONGRESS
2d Session
H. R. 3268
[Report No. 104-614]
_______________________________________________________________________
A BILL
To amend the Individuals with Disabilities Education Act, to
reauthorize and make improvements to that Act, and for other purposes.
_______________________________________________________________________
June 10, 1996
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
Union Calendar No. 304
104th CONGRESS
2d Session
H. R. 3268
[Report No. 104-614]
To amend the Individuals with Disabilities Education Act, to
reauthorize and make improvements to that Act, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 18, 1996
Mr. Cunningham introduced the following bill; which was referred to the
Committee on Economic and Educational Opportunities
June 10, 1996
Additional sponsors: Mr. Gunderson, Mr. Sam Johnson of Texas, Mr.
Riggs, Mr. Souder, Mr. Weldon of Florida, Mr. Greenwood, Mr. Barrett of
Nebraska, Mr. Ballenger, Mrs. Meyers of Kansas, Mr. Graham, and Mr.
Knollenberg
June 10, 1996
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on April
18, 1996]
_______________________________________________________________________
A BILL
To amend the Individuals with Disabilities Education Act, to
reauthorize and make improvements to that Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``IDEA Improvement Act of 1996''.
TITLE I--AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT
SEC. 101. AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION
ACT.
Parts A through D of the Individuals with Disabilities Education
Act (20 U.S.C. 1400 et seq.) are amended to read as follows:
``PART A--GENERAL PROVISIONS
``SEC. 601. SHORT TITLE; TABLE OF CONTENTS; FINDINGS; PURPOSES.
``(a) Short Title.--This title may be cited as the `Individuals
with Disabilities Education Act'.
``(b) Table of Contents.--The table of contents for this title is
as follows:
``Part A--General Provisions
``Sec. 601. Short title; table of contents; findings; purposes.
``Sec. 602. Definitions.
``Sec. 603. Office of Special Education Programs.
``Sec. 604. Abrogation of State sovereign immunity.
``Sec. 605. Requirements for prescribing regulations.
``Sec. 606. Employment of individuals with disabilities.
``Part B--Assistance for Education of All Children With Disabilities
``Sec. 611. Authorization; allotment; use of funds;
authorization of appropriations.
``Sec. 612. State requirements.
``Sec. 613. Local educational agency requirements.
``Sec. 614. Evaluations, reevaluations, individualized
education programs, and educational
placements.
``Sec. 615. Procedural safeguards.
``Sec. 616. Withholding and judicial review.
``Sec. 617. Administration.
``Sec. 618. Program information.
``Sec. 619. Preschool grants.
``Part C--Infants and Toddlers With Disabilities
``Sec. 631. Findings and policy.
``Sec. 632. Definitions.
``Sec. 633. General authority.
``Sec. 634. Eligibility.
``Sec. 635. Requirements for Statewide system.
``Sec. 636. Individualized family service plan.
``Sec. 637. State application and assurances.
``Sec. 638. Uses of funds.
``Sec. 639. Procedural safeguards.
``Sec. 640. Payor of last resort.
``Sec. 641. State interagency coordinating council.
``Sec. 642. Federal administration.
``Sec. 643. Allocation of funds.
``Sec. 644. Authorization of appropriations.
``Part D--National Activities to Improve Education of Children With
Disabilities
``Sec. 651. Purpose of part.
``subpart 1--general provisions and national research and improvement
activities
``Sec. 661. Comprehensive plan.
``Sec. 662. Priorities.
``Sec. 663. Peer review.
``Sec. 664. Eligible applicants.
``Sec. 665. Applicant and recipient responsibilities.
``Sec. 666. Indirect costs.
``Sec. 667. Program evaluation.
``Sec. 668. National assessment.
``Sec. 66``subpart 2--professional development
``Sec. 671. Purpose.
``Sec. 672. Finding.
``Sec. 673. National activities.
``Sec. 674. Professional development for personnel serving low-
incidence populations.
``Sec. 675. Leadership personnel.
``Sec. 676. Service obligation.
``subpart 3--state program improvement grants for children with
disabilities
``Sec. 681. Purpose.
``Sec. 682. Eligibility and collaborative process.
``Sec. 683. State improvement plans.
``Sec. 684. Use of funds.
``Sec. 685. Minimum State allotments.
``Sec. 686. Au``subpart 4--parent trainings.
``Sec. 691. Grants for parent training and information centers.
``Sec. 692. Technical assistance for parent training and
information centers.
``Sec. 693. Authorization of appropriations.
``(c) Findings.--The Congress finds the following:
``(1) Disability is a natural part of the human experience
and in no way diminishes the right of individuals to
participate in or contribute to society. Improving educational
results for children with disabilities is an essential element
of our national policy of ensuring equality of opportunity,
full participation, independent living, and economic self-
sufficiency for individuals with disabilities.
``(2) Before the date of the enactment of the Education for
All Handicapped Children Act of 1975 (Public Law 94-142)--
``(A) the special educational needs of children
with disabilities were not being fully met;
``(B) more than one-half of the children with
disabilities in the United States did not receive
appropriate educational services that would enable such
children to have full equality of opportunity;
``(C) 1,000,000 of the children with disabilities
in the United States were excluded entirely from the
public school system and did not go through the
educational process with their peers;
``(D) there were many children with disabilities
throughout the United States participating in regular
school programs whose disabilities prevented such
children from having a successful educational
experience because their disabilities were undetected;
and
``(E) because of the lack of adequate services
within the public school system, families were often
forced to find services outside the public school
system, often at great distance from their residence
and at their own expense.
``(3) Since the enactment and implementation of the
Education for All Handicapped Children Act of 1975, this Act
has been successful in ensuring children with disabilities and
the families of such children access to a free appropriate
public education and in improving educational results for
children with disabilities.
``(4) However, the implementation of this Act has been
impeded by low expectations, and an insufficient focus on
applying replicable research on proven methods of teaching and
learning for children with disabilities.
``(5) 20 years of research and experience has demonstrated
that the education of children with disabilities can be made
more effective by--
``(A) having high expectations for such children
and ensuring their access in the general curriculum to
the maximum extent possible;
``(B) ensuring that families of such children have
meaningful opportunities to participate in the
education of their children at school and at home;
``(C) coordinating this Act with other local,
State, and Federal school improvement efforts in order
to ensure that such children benefit from such efforts
and that special education can become a service for
such children rather than a place where they are sent;
``(D) providing appropriate special education and
related services and aids and supports in the regular
classroom to such children, whenever appropriate;
``(E) supporting high-quality, intensive
professional development for all personnel who work
with such children in order to ensure that they have
the skills and knowledge necessary to enable them--
``(i) to meet developmental goals and, to
the maximum extent possible, those challenging
expectations that have been established for all
children; and
``(ii) to be prepared to lead productive,
independent, adult lives, to the maximum extent
possible;
``(F) providing incentives for whole-school
approaches and early intervention to reduce the need to
label children as disabled in order to address their
learning needs; and
``(G) focusing resources on teaching and learning
while reducing paperwork and requirements that do not
assist in improving educational results.
``(6) While States and local educational agencies are
responsible for providing an education for all children with
disabilities, it is in the national interest that the Federal
Government have a role in assisting State and local efforts to
educate children with disabilities in order to improve results
for such children and to ensure equal protection of the law.
``(7)(A) The Federal Government must be responsive to the
growing needs of an increasingly more diverse society. A more
equitable allocation of resources is essential for the Federal
Government to meet its responsibility to provide an equal
educational opportunity for all individuals.
``(B) America's racial profile is rapidly changing. While
the rate of increase for white Americans is 3.2 percent, the
rate of increase for racial and ethnic minorities is much
higher: 38.6 percent for Hispanics, 14.6 percent for African-
Americans, and 40.1 percent for Asians and other ethnic groups.
``(C) By the year 2000, this Nation will have 260,000,000
people, one of every three of whom will be either African-
American, Hispanic, or Asian-American.
``(D) Taken together as a group, it is a more frequent
phenomenon for minorities to comprise the majority of public
school students. Large city school populations are
overwhelmingly minority, e.g., Miami, 71 percent; Philadelphia,
73 percent; Baltimore, 80 percent.
``(E) Recruitment efforts within special education at the
level of preservice, continuing education, and practice must
focus on bringing larger numbers of minorities into the
profession in order to provide appropriate practitioner
knowledge, role models, and sufficient manpower to address the
clearly changing demography of special education.
``(F) The limited English proficient population is the
fastest growing in our Nation, and the growth is occurring in
many parts of our Nation. In the Nation's 2 largest school
districts, limited English students make up almost half of all
students initially entering school at the kindergarten level.
Studies have documented apparent discrepancies in the levels of
referral and placement of limited English proficient children
in special education. The Department of Education has found
that services provided to limited English proficient students
often do not respond primarily to the pupil's academic needs.
These trends pose special challenges for special education in
the referral, assessment, and services for our Nation's
students from non-English language backgrounds.
``(8)(A) Greater efforts are needed to prevent the
intensification of problems connected with mislabeling and high
dropout rates among minority children with disabilities.
``(B) More minority children continue to be served in
special education than would be expected from the percentage of
minority students in the general school population.
``(C) Poor African-American children are 3.5 times more
likely to be identified by their teacher as mentally retarded
than their white counterpart.
``(D) Although African-Americans represent 12 percent of
elementary and secondary enrollments, they constitute 28
percent of total enrollments in special education.
``(E) The drop out rate is 68 percent higher for minorities
than for whites.
``(F) More than 50 percent of minority students in large
cities drop out of school.
``(9)(A) The opportunity for full participation in awards
for grants and contracts; boards of organizations receiving
funds under this Act; and peer review panels; and training of
professionals in the area of special education by minority
individuals, organizations, and historically Black colleges and
universities is essential if we are to obtain greater success
in the education of minority children with disabilities.
``(B) In 1989, of the 661,000 college and university
professors, 4.6 percent were African-American and 3.1 percent
were Hispanic. Of the 3,600,000 teachers, prekindergarten
through high school, 9.4 percent were African-American and 3.9
percent were Hispanic.
``(C) Students from minority groups comprise more than 50
percent of K-12 public school enrollment in seven States yet
minority enrollment in teacher training programs is less than
15 percent in all but six States.
``(D) As the number of African-American and Hispanic
students in special education increases, the number of minority
teachers and related service personnel produced in our colleges
and universities continues to decrease.
``(E) Ten years ago, 12.5 percent of the United States
teaching force in public elementary and secondary schools were
members of a minority group. Minorities comprised 21.3 percent
of the national population at that time and were clearly
underrepresented then among employed teachers. Today, the
elementary and secondary teaching force is 3 to 5 percent
minority, while one-third of the students in public schools are
minority children.
``(F) As recently as 1984-85, Historically Black Colleges
and Universities supplied nearly half of the African-American
teachers in the Nation. However, in 1988, Historically Black
Colleges and Universities received only 2 percent of the
discretionary funds for special education and related services
personnel training.
``(G) While African-American students constitute 28 percent
of total enrollment in special education, only 11.2 percent of
individuals enrolled in preservice training programs for
special education are African-American.
``(H) In 1986-87, of the degrees conferred in education at
the B.A., M.A., and Ph.D levels, only 6, 8, and 8 percent,
respectively, were awarded to African-American or Hispanic
students.
``(10) Minorities and underserved persons are socially
disadvantaged because of the lack of opportunities in training
and educational programs, undergirded by the practices in the
private sector that impede their full participation in the
mainstream of society.
``(d) Purposes.--The purposes of this title are--
``(1) to ensure that all children with disabilities have
available to them a free appropriate public education that
emphasizes special education and related services designed to
meet their unique needs and prepare them for employment and
independent living;
``(2) to ensure that the rights of children with
disabilities and parents of such children are protected;
``(3) to assist States, localities, and Federal agencies to
provide for the education of all children with disabilities;
and
``(4) to assess, and ensure the effectiveness of, efforts
to educate children with disabilities.
``SEC. 602. DEFINITIONS.
``As used in this title:
``(1) Assistive technology device.--The term `assistive
technology device' means any item, piece of equipment, or
product system, whether acquired commercially off the shelf,
modified, or customized, that is used to increase, maintain, or
improve functional capabilities of a child with a disability.
``(2) Assistive technology service.--The term `assistive
technology service' means any service that directly assists a
child with a disability in the selection, acquisition, or use
of an assistive technology device. Such term includes--
``(A) the evaluation of the needs of such child,
including a functional evaluation of the child in the
child's customary environment;
``(B) purchasing, leasing, or otherwise providing
for the acquisition of assistive technology devices by
such child;
``(C) selecting, designing, fitting, customizing,
adapting, applying, maintaining, repairing, or
replacing of assistive technology devices;
``(D) coordinating and using other therapies,
interventions, or services with assistive technology
devices, such as those associated with existing
education and rehabilitation plans and programs;
``(E) training or technical assistance for such
child, or, where appropriate, the family of such child;
and
``(F) training or technical assistance for
professionals (including individuals providing
education and rehabilitation services), employers, or
other individuals who provide services to, employ, or
are otherwise substantially involved in the major life
functions of such child.
``(3) Child with a disability.--
``(A) In general.--The term `child with a
disability' means a child--
``(i) with mental retardation, hearing
impairments (including deafness), speech or
language impairments, visual impairments
(including blindness), serious emotional
disturbance, orthopedic impairments, autism,
traumatic brain injury, other health
impairments, or specific learning disabilities;
and
``(ii) who, by reason thereof, needs
special education and related services.
``(B) Child aged 3 to 9.--The term `child with a
disability' for a child aged 3 to 9, inclusive, may, at
the discretion of the State and the local educational
agency, include a child--
``(i) experiencing developmental delays, as
defined by the State and as measured by
appropriate diagnostic instruments and
procedures, in one or more of the following
areas: physical development, cognitive
development, communication development, social
or emotional development, or adaptive
development; and
``(ii) who, by reason thereof, needs
special education and related services.
``(4) Educational service agency.--The term `educational
service agency'--
``(A) means a regional public multiservice agency--
``(i) authorized by State law to develop,
manage, and provide services or programs to
local educational agencies; and
``(ii) recognized as an administrative
agency for purposes of the provision of special
education and related services provided within
public elementary and secondary schools of the
State; and
``(B) includes any other public institution or
agency having administrative control and direction over
a public elementary or secondary school.
``(5) Elementary school.--The term `elementary school'
means a day or residential school which provides elementary
education, as determined under State law, policy, or procedure.
``(6) Equipment.--The term `equipment' includes--
``(A) machinery, utilities, and built-in equipment
and any necessary enclosures or structures to house
such machinery, utilities, or equipment; and
``(B) all other items necessary for the functioning
of a particular facility as a facility for the
provision of educational services, including items such
as instructional equipment and necessary furniture,
printed, published, and audio-visual instructional
materials, telecommunications, sensory, and other
technological aids and devices, and books, periodicals,
documents, and other related materials.
``(7) Excess costs.--The term `excess costs' means those
costs which are in excess of the average annual per student
expenditure in a local educational agency during the preceding
school year for an elementary or secondary school student, as
may be appropriate, and which shall be computed after
deducting--
``(A) amounts received--
``(i) under part B of this title;
``(ii) under part A of title I of the
Elementary and Secondary Education Act of 1965;
or
``(iii) under part A of title VII of such
Act; and
``(B) any State or local funds expended for
programs that would qualify for assistance under any
such part.
``(8) Free appropriate public education.--The term `free
appropriate public education' means special education and
related services that--
``(A) have been provided at public expense, under
public supervision and direction, and without charge;
``(B) meet the standards of the State educational
agency;
``(C) include an appropriate preschool, elementary,
or secondary school education in the State involved;
and
``(D) are provided in conformity with the
individualized education program required under section
614(d).
``(9) Indian.--The term `Indian' means an individual who is
a member of an Indian tribe.
``(10) Indian tribe.--The term `Indian tribe' means any
Federal or State Indian tribe, band, rancheria, pueblo, colony,
or community, including any Alaskan native village or regional
village corporation (as defined in or established under the
Alaska Native Claims Settlement Act).
``(11) Individualized education program.--The term
`individualized education program' or `IEP' means a written
statement for each child with a disability that is developed,
reviewed, and revised in accordance with section 614(d) and
that includes--
``(A) a statement of the child's present levels of
educational performance, including--
``(i) how the child's disability affects
the child's involvement and progress in the
general curriculum; or
``(ii) for preschool children, as
appropriate, how the disability affects the
child's participation in appropriate
activities;
``(B) a statement of measurable annual goals,
including benchmarks or short-term objectives, related
to--
``(i) meeting the child's needs that result
from the child's disability to enable the child
to be involved in and progress in the general
curriculum; and
``(ii) meeting each of the child's other
educational needs that result from the child's
disability;
``(C) a statement of how the classroom was adapted
before the student was referred for identification as a
child with a disability;
``(D) a justification of the extent, if any, to
which the child will not be educated with nondisabled
children;
``(E) a statement of the special education and
related services and supplementary aids and services to
be provided to the child, or on behalf of the child,
and any program modifications or support for school
personnel necessary for the child--
``(i) to progress toward the attainment of
the annual goals described in subparagraph (B);
and
``(ii) to be involved and progress in the
general curriculum in accordance with
subparagraph (A) and to participate in
extracurricular and other nonacademic
activities;
``(F)(i) a statement of any individual
modifications in the administration of State or
districtwide assessments of student achievement that
are needed in order for the child to participate in
such assessment; and
``(ii) if the individualized education program team
determines that the child will not participate in a
particular State or districtwide assessment of student
achievement (or part of such an assessment), a
statement of--
``(I) why that assessment is not
appropriate for the child; and
``(II) how the child will be assessed;
``(G) the projected date for the beginning of the
services and modifications described in subparagraph
(E), and the anticipated frequency, location, and
duration of those services and modifications;
``(H)(i) beginning at age 14, and updated annually,
a statement of the transition service needs of the
child under the applicable components of the child's
IEP that focuses on the child's courses of study (such
as participation in advanced-placement courses or a
vocational education or school-to-work program);
``(ii) beginning at age 16 (or younger, if
determined appropriate by the IEP Team), a statement of
needed transition services for the child, including,
when appropriate, a statement of the interagency
responsibilities or any needed linkages; and
``(iii) beginning at least one year before the
child reaches the age of majority under State law, a
statement that the child has been informed of his or
her rights under this title, if any, that will transfer
to the child on reaching the age of majority under
section 615(m); and
``(I) a statement of--
``(i) how the child's progress toward the
annual goals described in subparagraph (B) will
be measured; and
``(ii) how the child's parents will be
regularly informed (by such means as periodic
report cards), at least as often as parents are
informed of their nondisabled children's
progress, of--
``(I) their child's progress toward
the annual goals described in
subparagraph (B); and
``(II) the extent to which that
progress is sufficient to enable the
child to achieve the objectives by the
end of the year.
``(12) Individualized education program team.--The term
`individualized education program team' or `IEP Team' means a
group of individuals composed of--
``(A) the parents of a child with a disability;
``(B) at least one regular education teacher of
such child (if the child is, or may be, participating
in the regular education environment);
``(C) at least one special education teacher, or
where appropriate, at least one special education
provider of such child;
``(D) a representative of the local educational
agency who--
``(i) is qualified to provide, or supervise
the provision of, specially designed
instruction to meet the unique needs of
children with disabilities;
``(ii) is knowledgeable about the general
curriculum; and
``(iii) is knowledgeable about the
availability of resources of the local
educational agency;
``(E) whenever appropriate, the child with a
disability; and
``(F) at the discretion of the parent or the
agency, other individuals who have special expertise or
knowledge regarding the abilities and disability or
disabilities of the child, including, as appropriate,
related services personnel who are or who will be
working with the child.
``(13) Institution of higher education.--The term
`institution of higher education'--
``(A) has the meaning given that term in section
1201(a) of the Higher Education Act of 1965; and
``(B) also includes any community college receiving
funding from the Secretary of the Interior under the
Tribally Controlled Community College Assistance Act of
1978.
``(14) Local educational agency.--The term `local
educational agency' means--
``(A) a public board of education or other public
authority legally constituted within a State for either
administrative control or direction of, or to perform a
service function for, public elementary or secondary
schools in a city, county, township, school district,
or other political subdivision of a State, or for a
combination of school districts or counties as are
recognized in a State as an administrative agency for
its public elementary or secondary schools;
``(B) any other public institution or agency having
administrative control and direction of a public
elementary or secondary school; or
``(C) an educational service agency.
``(15) Native language.--The term `native language', when
used with reference to an individual of limited English
proficiency, means the language normally used by the
individual, or in the case of a child, the language normally
used by the parents of the child, and includes American Sign
Language.
``(16) Nonprofit.--The term `nonprofit' as applied to a
school, agency, organization, or institution means a school,
agency, organization, or institution owned and operated by one
or more nonprofit corporations or associations no part of the
net earnings of which inures, or may lawfully inure, to the
benefit of any private shareholder or individual.
``(17) Parent.--The term `parent' includes a legal guardian
or surrogate parent.
``(18) Parent organization.--The term `parent organization'
means a private nonprofit organization (but not including an
institution of higher education) that--
``(A) has a board of directors--
``(i) the majority of whom are parents of
children with disabilities;
``(ii) that includes--
``(I) individuals working in the
fields of special education, related
services, and early intervention; and
``(II) individuals with
disabilities; and
``(iii) the parent and professional members
of which are broadly representative of the
population to be served; or
``(B)(i) represents the interests of individuals
with disabilities and has established a special
governing committee which meets the requirements of
subparagraph (A); and
``(ii) has a memorandum of understanding between
the special governing committee and the board of
directors of the organization which clearly outlines
the relationship between the board and the committee
and the decisionmaking responsibilities and authority
of each.
``(19) Parent training and information center.--The term
`parent training and information center' means a center that--
``(A) provides training and information that meets
the training and information needs of parents of
children with disabilities living in the area served by
the center; and
``(B) assists parents--
``(i) to better understand the nature of
their children's disabilities and their
educational and developmental needs;
``(ii) to communicate effectively with
personnel responsible for providing special
education, early intervention, and related
services;
``(iii) to participate in decisionmaking
processes and the development of the IEP;
``(iv) to obtain appropriate information
about the range of options, programs, services,
and resources available to assist children with
disabilities and their families;
``(v) to understand the programs under this
title for the education of, and the provision
of early intervention services to, children
with disabilities; and
``(vi) to participate in school reform
activities.
``(20) Related services.--The term `related services' means
transportation, and such developmental, corrective, and other
supportive services (including speech-language pathology and
audiology services, psychological services, physical and
occupational therapy, recreation, including therapeutic
recreation, social work services, counseling services,
including rehabilitation counseling, orientation and mobility
services, and medical services, except that such medical
services shall be for diagnostic and evaluation purposes only)
as may be required to assist a child with a disability to
benefit from special education, and includes the early
identification and assessment of disabling conditions in
children.
``(21) Secondary school.--The term `secondary school' means
a day or residential school which provides secondary education,
as determined under State law, policy, or procedure, except
that it does not include any education provided beyond grade
12.
``(22) Secretary.--The term `Secretary' means the Secretary
of Education.
``(23) Special education.--The term `special education'
means specially designed instruction, at no cost to parents, to
meet the unique needs of a child with a disability, including--
``(A) instruction conducted in the classroom, in
the home, in hospitals and institutions, and in other
settings; and
``(B) instruction in physical education.
``(24) Specific learning disability.--
``(A) In general.--The term `specific learning
disability' means a disorder in one or more of the
basic psychological processes involved in understanding
or in using language, spoken or written, which disorder
may manifest itself in imperfect ability to listen,
think, speak, read, write, spell, or do mathematical
calculations.
``(B) Disorders included.--Such term includes such
conditions as perceptual disabilities, brain injury,
minimal brain dysfunction, dyslexia, and developmental
aphasia.
``(C) Disorders not included.--Such term does not
include a learning problem that is primarily the result
of visual, hearing, or motor disabilities, of mental
retardation, of emotional disturbance, or of
environmental, cultural, or economic disadvantage.
``(25) State.--The term `State' means each of the 50
States, the District of Columbia, the Commonwealth of Puerto
Rico, and each of the territories.
``(26) State educational agency.--The term `State
educational agency' means the State board of education or other
agency or officer primarily responsible for the State
supervision of public elementary and secondary schools, or, if
there is no such officer or agency, an officer or agency
designated by the Governor or by State law.
``(27) Supplementary aids and services.--The term
`supplementary aids and services' means, aids, services, and
other supports that are provided in regular education classes
or other education-related settings to enable children with
disabilities to be educated with nondisabled children to the
maximum extent appropriate in accordance with section
612(a)(4).
``(28) Territory.--The term `territory' means American
Samoa, the Commonwealth of the Northern Mariana Islands, Guam,
and the Virgin Islands.
``(29) Transition services.--The term `transition services'
means a coordinated set of activities for a child with a
disability that--
``(A) are designed within an outcome-oriented
process, which promotes movement from school to post-
school activities, including post-secondary education,
vocational training, integrated employment (including
supported employment), continuing and adult education,
adult services, independent living, or community
participation;
``(B) are based upon the individual child's needs,
taking into account the child's preferences and
interests; and
``(C) include instruction, related services,
community experiences, the development of employment
and other post-school adult living objectives, and,
when appropriate, acquisition of daily living skills
and functional vocational evaluation.
``SEC. 603. OFFICE OF SPECIAL EDUCATION PROGRAMS.
``(a) Establishment.--There shall be, within the Office of Special
Education and Rehabilitative Services in the Department of Education,
an Office of Special Education Programs which shall be the principal
agency in such Department for administering and carrying out this title
and other programs and activities concerning the education and training
of children with disabilities.
``(b) Director.--The Office established under subsection (a) shall
be headed by a Director who shall be selected by the Secretary and
shall report directly to the Assistant Secretary for Special Education
and Rehabilitative Services.
``(c) Voluntary and Uncompensated Services.--Notwithstanding
section 1342 of title 31, United States Code, the Secretary is
authorized to accept voluntary and uncompensated services in
furtherance of the purposes of this title.
``SEC. 604. ABROGATION OF STATE SOVEREIGN IMMUNITY.
``(a) In General.--A State shall not be immune under the eleventh
amendment to the Constitution of the United States from suit in Federal
court for a violation of this title.
``(b) Remedies.--In a suit against a State for a violation of this
title, remedies (including remedies both at law and in equity) are
available for such a violation to the same extent as such remedies are
available for such a violation in the suit against any public entity
other than a State.
``(c) Effective Date.--The provisions of subsections (a) and (b)
apply with respect to violations that occur in whole or part after the
date of the enactment of the Education of the Handicapped Act
Amendments of 1990.
``SEC. 605. REQUIREMENTS FOR PRESCRIBING REGULATIONS.
``(a) Public-Comment Period.--The Secretary shall provide a public-
comment period of at least 90 days on any regulation proposed under
part B or part C of this title on which an opportunity for public
comment is otherwise required by law.
``(b) Protections Provided to Children.--The Secretary may not
implement, or publish in final form, any regulation prescribed pursuant
to this title which would procedurally or substantively lessen the
protections provided to children with disabilities under this title, as
embodied in regulations in effect on July 20, 1983 (particularly as
such protections relate to parental consent to initial evaluation or
initial placement in special education, least restrictive environment,
related services, timeliness, attendance of evaluation personnel at
individualized education program meetings, or qualifications of
personnel), except to the extent that such regulation reflects the
clear and unequivocal intent of the Congress in legislation.
``(c) Correspondence From Department of Education Describing
Interpretations of This Part.--
``(1) In general.--The Secretary shall, on a quarterly
basis, publish in the Federal Register, and widely disseminate
to interested entities through various additional forms of
communication, a list of correspondence from the Department of
Education received by individuals during the previous quarter
that describes the interpretations of the Department of
Education of this Act or the regulations implemented pursuant
to this Act.
``(2) Additional information.--For each item of
correspondence published in a list under paragraph (1), the
Secretary shall identify the topic addressed by the
correspondence and shall include such other summary information
as the Secretary determines to be appropriate.
``(3) Restrictions on use of correspondence.--
``(A) In general.--Except as provided in
subparagraph (B), an item of correspondence published
and disseminated under paragraph (1) may not be used in
the following:
``(i) An administrative or due process
action commenced under section 615.
``(ii) A compliance review or other action
relating to a State educational agency
conducted by the Department of Education.
``(iii) A compliance review or other action
relating to a local educational agency or other
agency conducted by a State educational agency.
``(B) Exceptions.--A restriction on the use of an
item of correspondence under subparagraph (A) shall not
apply if the item of correspondence--
``(i) is directly related to the particular
fact situation, practice, or policy at issue
under clause (i) or (iii) of subparagraph (A);
``(ii)(I) was originally directed to one of
the parties to the action under subparagraph
(A)(i); or
``(II) was originally directed to the
particular local educational agency or other
agency under subparagraph (A)(iii); or
``(iii) was originally directed to the
particular State educational agency under
subparagraph (A)(ii).
``SEC. 606. EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.
``The Secretary shall assure that each recipient of assistance
under this Act shall make positive efforts to employ and advance in
employment qualified individuals with disabilities in programs assisted
under this Act.
``PART B--ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES
``SEC. 611. AUTHORIZATION; ALLOTMENT; USE OF FUNDS; AUTHORIZATION OF
APPROPRIATIONS.
``(a) Authorization.--The Secretary of Education shall provide
grants to States and provide amounts to the Secretary of the Interior
for the purpose of providing special education and related services to
children with disabilities in accordance with this part.
``(b) Allotment Among States.--
``(1) Reservation for the territories.--
``(A) In general.--Of the amount appropriated
pursuant to subsection (e) to carry out this part for a
fiscal year, the Secretary shall allot not more than
one percent among the territories in accordance with
this paragraph.
``(B) Basis for allotment.--The Secretary shall
allot to each territory an amount that bears the same
proportion to the amount appropriated pursuant to
subsection (e) for a fiscal year as the number of
individuals aged 3 to 21, inclusive, residing in such
territory bears to the aggregate number of such
individuals residing in all such territories.
``(C) Prohibition on consolidation of grants.--The
provisions of section 501 of Public Law 95-134 (48
U.S.C. 1469a; relating to the consolidation of one or
more grants provided to certain territories) shall not
apply with respect to amounts provided to a territory
under a grant under this part.
``(2) Secretary of the interior.--Of the amount
appropriated pursuant to subsection (e) to carry out this part
for a fiscal year, the Secretary shall provide to the Secretary
of the Interior an amount equal to 1.226 percent to carry out
subsection (d) (relating to special education and related
services for Indian children with disabilities).
``(3) States.--
``(A) In general.--After determining the amount to
be allotted to the territories under paragraph (1) and
the amount to be provided to the Secretary of the
Interior under paragraph (2) for a fiscal year, the
Secretary shall allot the remaining amount to the
remaining States in accordance with this paragraph.
``(B) Basis for allotment.--Except as provided in
subparagraph (D), the Secretary shall allot to each
State an amount equal to the sum of the following
amounts:
``(i) The amount equal to--
``(I) 85 percent of the remaining
amount described in subparagraph (A);
multiplied by
``(II) the child population
percentage of the State (as determined
under subparagraph (C)(i)).
``(ii) The amount equal to--
``(I) 15 percent of the remaining
amount described in subparagraph (A);
multiplied by
``(II) the child poverty percentage
of the State (as determined under
subparagraph (C)(ii)).
``(C) Determination of child population percentage
and child poverty percentage.--
``(i) Child population percentage.--The
child population percentage shall be determined
by comparing--
``(I) the number of children aged 3
to 21, inclusive, in the State who are
of the same age as children with
disabilities for whom the State ensures
the availability of a free appropriate
public education; to
``(II) the number of such children
in all States.
``(ii) Child poverty percentage.--The child
poverty percentage shall be determined by
comparing--
``(I) the number of children aged 3
to 21, inclusive, in the State living
in poverty who are of the same age as
children with disabilities for whom the
State ensures the availability of a
free appropriate public education; to
``(II) the number of such children
in all States.
``(D) Transition formula.--For each of the fiscal
years 1997 through 2005, the Secretary shall allot the
remaining amount to the remaining States in accordance
with the following:
``(i) Fiscal year 1997.--For fiscal year
1997, the Secretary shall allot to each
remaining State the sum of--
``(I) 10 percent multiplied by the
amount determined for such State under
subparagraph (B); and
``(II) 90 percent multiplied by the
amount determined for such State under
subparagraph (E).
``(ii) Fiscal year 1998.--For fiscal year
1998, the Secretary shall allot to each
remaining State the sum of--
``(I) 20 percent multiplied by the
amount determined for such State under
subparagraph (B); and
``(II) 80 percent multiplied by the
amount determined for such State under
subparagraph (E).
``(iii) Fiscal year 1999.--For fiscal year
1999, the Secretary shall allot to each
remaining State the sum of--
``(I) 30 percent multiplied by the
amount determined for such State under
subparagraph (B); and
``(II) 70 percent multiplied by the
amount determined for such State under
subparagraph (E).
``(iv) Fiscal year 2000.--For fiscal year
2000, the Secretary shall allot to each
remaining State the sum of--
``(I) 40 percent multiplied by the
amount determined for such State under
subparagraph (B); and
``(II) 60 percent multiplied by the
amount determined for such State under
subparagraph (E).
``(v) Fiscal year 2001.--For fiscal year
2001, the Secretary shall allot to each
remaining State the sum of--
``(I) 50 percent multiplied by the
amount determined for such State under
subparagraph (B); and
``(II) 50 percent multiplied by the
amount determined for such State under
subparagraph (E).
``(vi) Fiscal year 2002.--For fiscal year
2002, the Secretary shall allot to each
remaining State the sum of--
``(I) 60 percent multiplied by the
amount determined for such State under
subparagraph (B); and
``(II) 40 percent multiplied by the
amount determined for such State under
subparagraph (E).
``(vii) Fiscal year 2003.--For fiscal year
2003, the Secretary shall allot to each
remaining State the sum of--
``(I) 70 percent multiplied by the
amount determined for such State under
subparagraph (B); and
``(II) 30 percent multiplied by the
amount determined for such State under
subparagraph (E).
``(viii) Fiscal year 2004.--For fiscal year
2004, the Secretary shall allot to each
remaining State the sum of--
``(I) 80 percent multiplied by the
amount determined for such State under
subparagraph (B); and
``(II) 20 percent multiplied by the
amount determined for such State under
subparagraph (E).
``(ix) Fiscal year 2005.--For fiscal year
2005, the Secretary shall allot to each
remaining State the sum of--
``(I) 90 percent multiplied by the
amount determined for such State under
subparagraph (B); and
``(II) 10 percent multiplied by the
amount determined for such State under
subparagraph (E).
``(E) Base amount for 1996.--
``(i) In general.--Subject to clause (ii),
the amount determined under this subparagraph
for a State is the amount that bears the same
proportion to the remaining amount (described
in subparagraph (A)) for the fiscal year under
subparagraph (D) as the amount received by the
State under this section for fiscal year 1996
bears to the aggregate of the amounts received
by the remaining States (described in
subparagraph (A)) under this section for fiscal
year 1996.
``(ii) Reduction in amount.--If the State
received an amount under this section for
fiscal year 1996 on the basis of children aged
3 to 5, inclusive, in such State, but the State
does not make a free appropriate public
education available to all children with
disabilities aged 3 to 5, inclusive, in the
State at the time a determination is made under
subparagraph (C), the Secretary shall reduce,
on a proportional basis, the amount under
clause (i) for purposes of allotting amounts
under such subparagraph.
``(F) Minimum allotment.--For fiscal year 1997 and
each subsequent fiscal year, the amount allotted to
each remaining State (described in subparagraph (A))
shall not be less than an amount equal to one-third of
one percent of the remaining amount (described in
subparagraph (A)) for the fiscal year.
``(G) Maximum allotment.--
``(i) In general.--For fiscal year 1997 and
each subsequent fiscal year, the amount
allotted to each remaining State (described in
subparagraph (A)) under this paragraph shall
not be more than an amount equal to
``(I) the sum of--
``(aa) the number of
children with disabilities in
the State, aged 6 through 21,
who are receiving special
education and related services,
as determined under clause
(ii); and
``(bb) if the State is
eligible for a grant under
section 619, the number of such
children in the State, aged 3
through 5; multiplied by
``(II) 40 percent of the average
per-pupil expenditure in public
elementary and secondary schools in the
United States.
``(ii) Determination of number of
children.--The number of children with
disabilities receiving special education and
related services in any fiscal year shall be
equal to the number of such children receiving
special education and related services on
December 1 of the fiscal year preceding the
fiscal year for which the determination is
made.
``(iii) Average per pupil expenditure.--For
purposes of clause (i)(II), the term `average
per pupil expenditure', in the United States,
means the aggregate current expenditures,
during the second fiscal year preceding the
fiscal year for which the computation is made
(or, if satisfactory data for such year are not
available at the time of computation, then
during the most recent preceding fiscal year
for which satisfactory data are available) of all local educational
agencies in the United States (which, for purposes of this
subparagraph, means the fifty States and the District of Columbia), as
the case may be, plus any direct expenditures by the State for
operation of such agencies (without regard to the source of funds from
which either of such expenditures are made), divided by the aggregate
number of children in average daily attendance to whom such agencies
provided free public education during such preceding year.
``(4) Special rule with respect to puerto rico.--
``(A) In general.--Notwithstanding any other
provision of this subsection, the amount allotted to
Puerto Rico for a fiscal year shall bear the same or
lower proportion to the remaining amount (described in
paragraph (3)(A)) as the amount received by Puerto Rico
under this section for fiscal year 1996 bears to the
aggregate of the amounts received by the remaining
States (as described in paragraph (3)(A)) under this
section for fiscal year 1996.
``(B) Adjustment in amounts to remaining states.--
If the amount allotted to Puerto Rico for a fiscal year
is determined under subparagraph (A), the Secretary
shall reallot to the remaining States (as described in
paragraph (3)(A)), on a proportional basis, any amount
not otherwise allotted to Puerto Rico.
``(5) Use of most recent population data.--For the purpose
of providing grants under this part, the Secretary shall use
the most recent population data and data on children aged 3 to
21, inclusive, living in poverty that are available and
satisfactory to the Secretary.
``(c) Use of Funds by State.--
``(1) Reservation for state activities.--
``(A) In general.--Subject to subparagraph (D), a
State may reserve not more than 25 percent of the
amount allotted to the State under paragraph (1) or (3)
of subsection (b) for a fiscal year for administration
and other State-level activities in accordance with
subparagraphs (B) and (C).
``(B) State administration.--
``(i) In general.--For the purpose of
administering programs under this part,
including the coordination of activities under
this part with, and providing technical
assistance to, other programs that provide
services to children with disabilities--
``(I) each territory may use up to
3 percent of the amount allotted to the
territory for a fiscal year, or
$35,000, whichever is greater; and
``(II) each remaining State may use
up to 3 percent of the amount allotted
to the State for a fiscal year, or
$450,000, whichever is greater.
``(ii) Use of amounts for administration of
part c.--If the State educational agency is the
lead agency for the State under part C, amounts
described in clause (i) may also be used for
the administration of part C.
``(C) Other state-level activities.--A State shall
use any amounts reserved under subparagraph (A) for a
fiscal year that are not used for administration under
subparagraph (B) for such fiscal year--
``(i) for support and direct services,
including technical assistance and personnel
development and training;
``(ii) for administrative costs of
monitoring and complaint investigation, but
only to the extent that such costs exceed the
costs incurred for those activities during
fiscal year 1985;
``(iii) to establish and implement the
mediation process required by section 615(d),
including providing for the costs of mediators
and support personnel;
``(iv) to assist local educational agencies
in meeting personnel shortages;
``(v) to develop a State improvement plan
under part D;
``(vi) for activities at the State and
local levels to meet the performance goals
established by the State under section
612(a)(14) and to support implementation of the
State improvement plan under part D if the
State receives funds under that part; or
``(vii) to supplement other amounts used to
develop and implement a Statewide coordinated
services system designed to improve results for
children and families, including children with
disabilities and their families, but not to
exceed one percent of the amount received by
the State under this section (such system shall
be coordinated with and, to the extent
appropriate, build on the system of coordinated
services developed by the State under part C).
``(D) Report on use of amounts.--The State shall,
as part of the information required to be submitted
under section 612, submit a description of--
``(i) how amounts reserved under
subparagraph (A) will be used to meet the
requirements of this part;
``(ii) how such amounts will be allocated
among the activities described in subparagraphs
(B) and (C) to meet State priorities based on
input from local educational agencies; and
``(iii) what percentage of such amounts, if
any, will be distributed to local educational
agencies by formula.
``(2) Subgrants to local educational agencies and certain
state agencies.--
``(A) In general.--The State shall provide at least
75 percent of the amount received under a grant for a
fiscal year to local educational agencies in the State
that have established their eligibility under section
613, and to State agencies that received funds under
section 614A(a) (as such section was in effect on the
day before the date of the enactment of the IDEA
Improvement Act of 1996) for fiscal year 1996 and have
established their eligibility under section 613, for
use in accordance with this part.
``(B) Methods of distribution.--A State may provide
amounts under subparagraph (A) to local educational
agencies and State agencies described under such
subparagraph on the basis of--
``(i) school-age population;
``(ii) school enrollment;
``(iii) numbers of children with
disabilities receiving a free appropriate
public education;
``(iv) allocations for previous fiscal
years;
``(v) any two or more of the factors
described in clauses (i) through (iv); or
``(vi) poverty, in combination with one or
more of the factors described in clauses (i)
through (iv).
``(C) Former chapter 1 state agencies.--
``(i) In general.--To the extent necessary
for each of the fiscal years 1997, 1998, and
1999, the State shall use amounts that are
available under paragraph (1)(A) to ensure that
each State agency that received amounts in
fiscal year 1994 under subpart 2 of part D of
chapter 1 of title I of the Elementary and
Secondary Education Act of 1965 (as such
subpart was in effect on the day before the
date of the enactment of the Improving
America's Schools Act of 1994) receives, from
the combination of funds under paragraph (1)(A)
and funds provided under subparagraph (A), an
amount equal to--
``(I) the number of children with
disabilities, aged 6 to 21, inclusive,
to whom the agency was providing
special education and related services
on December 1 of the fiscal year for
which the funds were appropriated,
subject to the methods of distribution
under subparagraph (B); multiplied by
``(II) the per-child amount
provided under such subpart for fiscal
year 1994.
``(ii) Additional use of amounts.--The
State may use amounts described in clause (i)
to ensure that each local educational agency
that received fiscal year 1994 funds under that
subpart for children who had transferred from a
State-operated or State-supported school or
program assisted under that subpart receives,
from the combination of funds available under
paragraph (1)(A) and funds provided under
subparagraph (A), an amount for each such
child, aged 3 to 21, inclusive, to whom the
agency was providing special education and
related services on December 1 of the fiscal
year for which the funds were appropriated,
equal to the per-child amount the agency
received under that subpart for fiscal year
1994.
``(iii) Determination of number of
children.--The number of children counted under
clause (i)(I) shall not exceed the number of
children aged 3 to 21, inclusive, for whom the
agency received amounts in fiscal year 1994
under subpart 2 of part D of chapter 1 of title
I of the Elementary and Secondary Education Act
of 1965 (as such subpart was in effect on the
day before the date of the enactment of the
Improving America's Schools Act of 1994).
``(D) Reallocation of amounts.--If a State
educational agency determines that a local educational
agency is adequately providing a free appropriate
public education to all children with disabilities
residing in the area served by that agency with State
and local funds, the State educational agency may
reallocate any portion of amounts received under a
grant under this part that are not needed by that local
agency to other local educational agencies in the State
that are not adequately providing special education and
related services to all children with disabilities residing in the
areas they serve.
``(d) Use of Amounts by Secretary of the Interior.--
``(1) Provision of amounts for assistance.--
``(A) In general.--The Secretary of Education shall
provide amounts to the Secretary of the Interior to
meet the need for assistance for the education of
children with disabilities on reservations aged 5 to
21, inclusive, enrolled in elementary and secondary
schools for Indian children operated or funded by the
Secretary of the Interior. The amount of such payment
for any fiscal year shall be equal to 80 percent of the
amount allotted under subsection (b)(2) for that fiscal
year.
``(B) Calculation of number of children.--In the
case of Indian students ages 3 to 5, inclusive, who are
enrolled in programs affiliated with Bureau of Indian
Affairs (hereafter in this subsection referred to as
`BIA') schools and that are required by the States in
which such schools are located to attain or maintain
State accreditation, and which schools have such
accreditation prior to the date of enactment of the
Individuals with Disabilities Education Act Amendments
of 1991, the school shall be allowed to count those
children for the purpose of distribution of the funds
provided under this paragraph to the Secretary of the
Interior. The Secretary of the Interior shall be
responsible for meeting all of the requirements of this
part for these children, in accordance with paragraph
(2).
``(C) Additional requirement.--With respect to all
other children aged 3 to 21, inclusive, on
reservations, the State educational agency shall be
responsible for ensuring that all of the requirements
of this part are implemented.
``(2) Submission of information.--The Secretary of
Education may provide the Secretary of the Interior amounts
under paragraph (1) for a fiscal year only if the Secretary of
the Interior submits to the Secretary of Education information
that--
``(A) demonstrates that the Department of the
Interior meets the appropriate requirements, as
determined by the Secretary of Education, of sections
612 (including monitoring and evaluation activities)
and 613;
``(B) includes a description of how the Secretary
of the Interior will coordinate the provision of
services under this part with local educational
agencies, tribes and tribal organizations, and other
private and Federal service providers;
``(C) includes an assurance that there are public
hearings, adequate notice of such hearings, and an
opportunity for comment afforded to members of tribes,
tribal governing bodies, and affected local school
boards before the adoption of the policies, programs,
and procedures described in subparagraph (A);
``(D) includes an assurance that the Secretary of
the Interior will provide such information as the
Secretary of Education may require to comply with
section 618;
``(E) includes an assurance that the Secretary of
the Interior and the Secretary of Health and Human
Services have entered into a memorandum of agreement,
to be provided to the Secretary of Education, for the
coordination of services, resources, and personnel
between their respective Federal, State, and local
offices and with State and local educational agencies
and other entities to facilitate the provision of
services to Indian children with disabilities residing on or near
reservations (such agreement shall provide for the apportionment of
responsibilities and costs including, but not limited to, child find,
evaluation, diagnosis, remediation or therapeutic measures, and (where
appropriate) equipment and medical or personal supplies as needed for a
child to remain in school or a program); and
``(F) includes an assurance that the Department of
the Interior will cooperate with the Department of
Education in its exercise of monitoring and oversight
of this application, and any agreements entered into
between the Secretary of the Interior and other
entities under this part, and will fulfill its duties
under this part.
Section 616(a) shall apply to the information described in this
paragraph.
``(3) Payments for education and services for indian
children with disabilities aged 3 to 5.--
``(A) In general.--With funds appropriated under
subsection (e), the Secretary of Education shall make
payments to the Secretary of the Interior to be
distributed to tribes or tribal organizations (as
defined under section 4 of the Indian Self-
Determination and Education Assistance Act) or
consortia of the above to provide for the coordination
of assistance for special education and related
services for children with disabilities aged 3 to 5,
inclusive, on reservations served by elementary and
secondary schools for Indian children operated or
funded by the Department of the Interior. The amount of
such payments under subparagraph (B) for any fiscal
year shall be equal to 20 percent of the amount
allotted under subsection (b)(2).
``(B) Distribution of funds.--The Secretary of the
Interior shall distribute the total amount of the
payment under subparagraph (A) by allocating to each
tribe or tribal organization an amount based on the
number of children with disabilities, ages 3 to 5,
inclusive, residing on reservations as reported
annually divided by the total of such children served
by all tribes or tribal organizations.
``(C) Submission of information.--To receive a
payment under this paragraph, the tribe or tribal
organization shall submit such figures to the Secretary
of the Interior as required to determine the amounts to
be allocated under subparagraph (B). This information
shall be compiled and submitted to the Secretary of
Education.
``(D) Use of funds.--The funds received by a tribe
or tribal organization shall be used to assist in child
find, screening, and other procedures for the early
identification of children aged 3 to 5, inclusive,
parent training, and the provision of direct services.
These activities may be carried out directly or through
contracts or cooperative agreements with the BIA, local
educational agencies, and other public or private
nonprofit organizations. The tribe or tribal
organization is encouraged to involve Indian parents in
the development and implementation of these activities.
The above entities shall, as appropriate, make
referrals to local, State, or Federal entities for the
provision of services or further diagnosis.
``(E) Biennial report.--To be eligible to receive a
grant pursuant to subparagraph (A), the tribe or tribal
organization shall provide to the Secretary of the
Interior a biennial report of activities undertaken
under this paragraph, including the number of contracts and cooperative
agreements entered into, the number of children contacted and receiving
services for each year and the estimated number of children needing
services during the 2 years following the one in which the report is
made. The Secretary of the Interior shall include a summary of this
information on a biennial basis in the report to the Secretary of
Education required under this subsection. The Secretary of Education
may require any additional information from the Secretary of the
Interior.
``(F) Prohibitions.--None of the funds allocated
under this paragraph may be used by the Secretary of
the Interior for administrative purposes, including
child count and the provision of technical assistance.
``(4) Plan for coordination of services.--The Secretary of
the Interior shall develop and implement a plan for the
coordination of services for all Indian children with
disabilities residing on reservations covered under this Act.
Such plan shall provide for the coordination of services
benefiting these children from whatever source, including
tribes, the Indian Health Service, other BIA divisions, and
other Federal agencies. In developing such a plan, the
Secretary of the Interior shall consult with all interested and
involved parties. It shall be based upon the needs of the
children and the system best suited for meeting those needs,
and may involve the establishment of cooperative agreements
between the BIA, other Federal agencies, and other entities.
Such plan shall also be distributed upon request to States,
State and local educational agencies, and other agencies
providing services to infants, toddlers, children, and youth
with disabilities, to tribes, and to other interested parties.
``(5) Establishment of advisory board.--To meet the
requirements of section 612(a)(18), the Secretary of the
Interior shall establish, not later than 6 months after the
date of the enactment of the IDEA Improvement Act of 1996,
under the Bureau of Indian Affairs (BIA), an advisory board
composed of individuals involved in or concerned with the
education and provision of services to Indian infants,
toddlers, children, and youth with disabilities, including
Indians with disabilities, Indian parents or guardians of such
children, teachers, service providers, State and local
educational officials, representatives of tribes or tribal
organizations, representatives from State Interagency
Coordinating Councils in States having reservations, and other
members representing the various divisions and entities of the
BIA. The chairperson shall be selected by the Secretary of the
Interior. The advisory board shall--
``(A) assist in the coordination of services within
BIA and with other local, State, and Federal agencies
in the provision of education for infants, toddlers,
children, and youth with disabilities;
``(B) advise and assist the Secretary of the
Interior in the performance of the Secretary's
responsibilities described in this subsection;
``(C) develop and recommend policies concerning
effective inter- and intra-agency collaboration,
including modifications to regulations, and the
elimination of barriers to inter- and intra-agency
programs and activities;
``(D) provide assistance and disseminate
information on best practices, effective program
coordination strategies, and recommendations for
improved educational programming for Indian infants,
toddlers, children, and youth with disabilities; and
``(E) provide assistance in the preparation of
information required under paragraph (2)(D).
``(6) Annual reports.--
``(A) In general.--The advisory board established
under paragraph (5) shall prepare and submit to the
Secretary of the Interior and to the Congress an annual
report containing a description of the activities of
the advisory board for the preceding year.
``(B) Availability.--The Secretary of the Interior
shall make available to the Secretary of Education the
report described in subparagraph (A).
``(e) Authorization of Appropriations.--For the purpose of carrying
out this part (except for section 619; relating to preschool grants),
there are authorized to be appropriated to the Secretary such sums as
may be necessary.
``SEC. 612. STATE REQUIREMENTS.
``(a) In General.--A State shall be eligible to receive a grant
under this part for a fiscal year if, except as provided in subsection
(c), the State submits to the Secretary information that demonstrates
to the satisfaction of the Secretary that the State has in effect
policies and procedures to ensure that it meets each of the following
requirements:
``(1) Free appropriate public education.--
``(A) In general.--A free appropriate public
education is available to all children with
disabilities residing in the State between the ages of
3 and 21, inclusive.
``(B) Limitation.--Subparagraph (A) shall not apply
with respect to children with disabilities aged 3 to 5
and children with disabilities aged 18 to 21 to the
extent that such application to those children would be
inconsistent with State law or practice, or the order
of any court, relating to the provision of public
education to children in such age ranges.
``(2) Child find.--All children with disabilities residing
in the State, including children with disabilities attending
private schools, regardless of the severity of such
disabilities, and who are in need of special education and
related services, are identified, located, and evaluated and
that a practical method is developed and implemented to
determine which children with disabilities are currently
receiving needed special education and related services.
``(3) Individualized education program.--An individualized
education program, or an individualized family service plan
that meets the requirements of section 636(d), is developed,
reviewed, and revised for each child with a disability in
accordance with section 614(d).
``(4) Least restrictive environment.--
``(A) In general.--To the maximum extent
appropriate--
``(i) children with disabilities, including
children in public or private institutions or
other care facilities, are educated with
children who are not disabled; and
``(ii) special classes, separate schooling,
or other removal of children with disabilities
from the regular educational environment occurs
only when the nature or severity of the
disability of a child means that education in
regular classes with the use of supplementary
aids and services cannot be achieved
satisfactorily.
``(B) Additional requirement.--
``(i) In general.--The State's method of
distributing funds shall not result in
placements that violate the requirements of
subparagraph (A).
``(ii) Exception.--If the State does not
have policies and procedures to ensure
compliance with clause (i), the State shall
provide the Secretary an assurance that it will
revise the funding mechanism as soon as
feasible to ensure that such mechanism does not
result in such placements.
``(5) Procedural safeguards.--
``(A) In general.--Children with disabilities and
their parents are afforded the procedural safeguards
required by section 615.
``(B) Additional procedural safeguards.--Procedures
to assure that testing and evaluation materials and
procedures utilized for the purposes of evaluation and
placement of children with disabilities will be
selected and administered so as not to be racially or
culturally discriminatory. Such materials or procedures
shall be provided and administered in the child's
native language or mode of communication, unless it
clearly is not feasible to do so, and no single
procedure shall be the sole criterion for determining
an appropriate educational program for a child.
``(6) Evaluation.--Children with disabilities are evaluated
in accordance with subsections (a) through (c) of section 614.
``(7) Confidentiality.--Agencies in the State comply with
section 617(c) (relating to the confidentiality of records and
information).
``(8) Transition from part c to preschool programs.--
Children participating in early-intervention programs assisted
under part C, and who will participate in preschool programs
assisted under this part, experience a smooth transition to
those preschool programs in a manner consistent with section
637(a)(7). By the third birthday of such a child, an
individualized education program or, if consistent with
sections 614(d)(1)(B) and 636(d), an individualized family
service plan, has been developed and is being implemented for
the child. The local educational agency will participate in
transition planning conferences by the designated lead agency
under section 637(a)(7).
``(9) Children in private schools.--
``(A) In general.--To the extent consistent with
the number and location of children with disabilities
in the State who are enrolled in private elementary and
secondary schools, provision is made for the
participation of such children in the program assisted
or carried out under this part by providing for such
children special education and related services, except
if the Secretary has arranged for services to such
children under subsection (f).
``(B) Children placed in, or referred to, private
schools by public agencies.--
``(i) In general.--Children with
disabilities in private schools and facilities
are provided special education and related
services, in accordance with an individualized
education program, at no cost to their parents,
if they are placed in, or referred to, such
schools or facilities by the State or a local
educational agency in order to comply with this
part or with any other provision of law
requiring the provision of special education
and related services to all children with
disabilities in the State.
``(ii) Additional requirements.--In all
cases described in clause (i)--
``(I) children with disabilities
are placed in, or referred to, only
those private schools and facilities
that the State educational agency
determines meet standards that apply to
State and local educational agencies;
and
``(II) children served in such
private schools or facilities retain
access to a free appropriate public
education in accordance with this part.
``(C) Payment for education of children placed in
private schools without consent of or referral by the
public agency.--
``(i) In general.--If the parents of a
child with a disability that had previously
received special education and related services
under the authority of a public agency have
enrolled their child in a private elementary or
secondary school without the consent of or
referral by the public agency, as a result of
mediation described in section 615(d), or as a
result of a decision rendered under the
procedural safeguards of section 615, the
public agency may be required to reimburse the
parents for the cost of the enrollment, except
that the cost of the reimbursement may be
reduced or denied--
``(I) if, at least 10 school days
prior to the removal of the child from
the public school, the parents did not
give a written statement of their
concerns to the public agency and
notice that they intend to place their
child in a private school at public
expense;
``(II) if, prior to the removal of
the child from the public school, the
parents did not make the child
available for an initial assessment and
evaluation by the local educational
agency prior to enrollment in the
private school; or
``(III) at the discretion of the
judge.
``(ii) Exception.--Notwithstanding the
notice requirement in clause (i)(I), the cost
of the reimbursement may not be reduced or
denied for failure to provide such notice if--
``(I) the parent is illiterate or
cannot write in English;
``(II) compliance with clause
(i)(I) would likely result in physical
or serious emotional harm to the child;
``(III) the school prevented the
parent from providing such notice; or
``(IV) the parent had not received
notice, pursuant to section 615(d), of
the notice requirement in clause
(i)(I).
``(10) State educational agency responsible for general
supervision.--
``(A) In general.--The State educational agency is
responsible for ensuring that--
``(i) the requirements of this part are
met; and
``(ii) all educational programs for
children with disabilities in the State,
including all such programs administered by any
other State or local agency--
``(I) are under the general
supervision of individuals in the State
who are responsible for educational
programs for children with
disabilities; and
``(II) meet the educational
standards of the State educational
agency.
``(B) Limitation.--Subparagraph (A) shall not limit
the responsibility of agencies in the State other than
the State educational agency to provide, or pay for
some or all of the costs of, a free appropriate public
education for any child with a disability in the State.
``(11) Obligations related to and methods of ensuring
services.--
``(A) Establishing responsibility for services.--
The Chief Executive Officer or designee of the officer
shall ensure that an interagency agreement or other
mechanism for interagency coordination is in effect
between each public agency described in subparagraph
(B) and the appropriate educational agency within the
State, in order to ensure that all services described
in subparagraph (B)(i) that are needed to ensure a free
appropriate public education are provided, including
the provision of such services during the pendency of
any dispute under clause (iii). Such agreement or
mechanism shall include the following:
``(i) Agency financial responsibility.--An
identification of, or a method for defining,
the financial responsibility of each agency for
providing services described in subparagraph
(B)(i) to ensure a free appropriate public
education to children with disabilities
provided that the financial responsibility of
each public agency described in subparagraph
(B), including the State Medicaid agency and
other public insurers of children with
disabilities, shall precede the financial
responsibility of the local education agency
(or the State agency responsible for developing
the child's IEP).
``(ii) Conditions and terms of
reimbursement.--The conditions, terms, and
procedures under which a local educational
agency shall be reimbursed by other agencies.
``(iii) Interagency disputes.--Procedures
for resolving interagency disputes (including
procedures under which local education agencies
may initiate proceedings) under the agreement
or other mechanism to secure reimbursement from
other agencies or otherwise implement the
provisions of the agreement or mechanism.
``(iv) Coordination of services
procedures.--Policies and procedures for
agencies to determine and identify the
interagency coordination responsibilities of
each agency to promote the coordination and
timely and appropriate delivery of services
described in subparagraph (B)(i).
``(B) Obligation of public agency.--
``(i) In general.--If any public agency
other than an educational agency is otherwise
obligated under Federal or State law, or
assigned responsibility under State policy or
pursuant to subparagraph (A), to provide or pay
for any services that are considered special
education or related services (such as, but not
limited to, services described in sections
602(1) relating to assistive technology
devices, 602(2) relating to assistive
technology services, 602(20) relating to
related services, 602(27) related to
supplementary aids and services, and 602(29)
relating to transition services) that are
necessary for ensuring a free appropriate
public education to children with disabilities
within the State, such public agency shall
fulfill that obligation or responsibility,
either directly or through contract or other
arrangement.
``(ii) Reimbursement for services by public
agency.--If a public agency other than an
educational agency fails to provide or pay for
the special education and related services
described in clause (i), the local educational
agency (or State agency responsibility for
developing the child's IEP) shall provide or
pay for such services to the child. Such local
education agency or State agency may then claim
reimbursement for the services from the public
agency that failed to provide or pay for such
services and such public agency shall reimburse
the local education agency or State agency
pursuant to the terms of the interagency
agreement described in subparagraph (A)(i)
according to the procedures established in such
agreement pursuant to subparagraph (A)(ii).
``(C) Special rule.--The requirements of
subparagraph (A) may be met through--
``(i) State statute or regulation;
``(ii) signed agreements between respective
agency officials that clearly identify the
responsibilities of each agency relating to the
provision of services; or
``(iii) other appropriate methods as
determined by the Chief Executive Officer or
designee of the officer.
``(12) Procedural requirements relating to local
educational agency eligibility.--The State educational agency
will not make a final determination that a local educational
agency is not eligible for assistance under this part without
first affording that agency reasonable notice and an
opportunity for a hearing.
``(13) Comprehensive system of personnel development.--The
State has established and implemented, consistent with the
purposes of this title and section 635(a)(7), a comprehensive
system of personnel development that is designed to ensure an
adequate supply of qualified special education and related
services personnel necessary to carry out this part,
including--
``(A) a statewide, coordinated personnel-
development plan that meets the personnel development
requirements of a State improvement plan under section
683; or
``(B) a personnel-development plan, developed in
consultation with parents of children with
disabilities, State and local educational agencies,
institutions of higher education, and professional
associations that--
``(i) addresses current and projected needs
for special education and related services
personnel throughout the State;
``(ii) addresses the need for the pre-
service and in-service preparation of personnel
throughout the State, including regular
education personnel, to provide educational
services to children with disabilities;
``(iii) includes a system or procedures for
recruiting, preparing, and retaining qualified
personnel, including personnel with
disabilities and personnel from groups that are
underrepresented in the field of special
education and related services; and
``(iv) is integrated, to the maximum extent
possible, with other professional development
plans and activities.
``(14) Personnel standards.--
``(A) In general.--The State educational agency has
established and maintains standards to ensure that
personnel necessary to carry out this part are
appropriately and adequately prepared and trained.
``(B) Standards described.--Such standards shall--
``(i) be consistent with any State-approved
or State-recognized certification, licensing,
registration, or other comparable requirements
that apply to the professional discipline in
which those personnel are providing special
education or related services;
``(ii) to the extent the standards
described in subparagraph (A) are not based on
the highest requirements in the State
applicable to a specific profession or
discipline, the State is taking steps to
require retraining or hiring of personnel that
meet appropriate professional requirements in
the State; and
``(iii) allow paraprofessionals and
assistants who are appropriately trained and
supervised, in accordance with State law,
regulations, or written policy, in meeting the
requirements of this part to be used to assist
in the provision of special education and
related services to children with disabilities
under this part.
``(C) Exception.--If the State determines that,
within a geographic area of the State there is a
shortage of an appropriate number and type of personnel
to provide the special education and related services
to children with disabilities within such area, and the
appropriate public agency has taken steps to recruit
and hire such personnel, the State may, subject to
public comment and review, temporarily suspend the
standards of subparagraph (B)--
``(i) consistent with State law, for the
purpose of recruiting and hiring for such
shortage areas the most qualified available
individuals who are making progress in
applicable coursework; and
``(ii) for a period not to exceed 3 years.
``(15) Performance goals and indicators.--The State--
``(A) has established goals for the performance of
children with disabilities in the State that--
``(i) will promote the purposes of this
title, as stated in section 601(d); and
``(ii) are consistent, to the maximum
extent appropriate, with other goals and
standards established by the State;
``(B) has established performance indicators the
State will use to assess progress toward achieving
those goals that, at a minimum, address the performance
of children with disabilities on assessments, drop-out
rates, and graduation rates;
``(C) will, every two years, report to the
Secretary and the public on the progress of the State,
and of children with disabilities in the State, toward
meeting the goals established under subparagraph (A);
and
``(D) based on its assessment of that progress,
will revise its State improvement plan under part D as
may be needed to improve its performance, if the State
receives assistance under such part.
``(16) Participation in assessments.--
``(A) In general.--Children with disabilities are
included in general State and district-wide assessment
programs, with appropriate accommodations, where
necessary. As appropriate, the State or local
educational agency--
``(i) develops guidelines for the
participation of children with disabilities in
alternate assessments for those children who
cannot participate in State and district-wide
assessment programs; and
``(ii) develops and, beginning not later
than July 1, 1999, conducts those alternate
assessments.
``(B) Reports.--The State educational agency makes
available to the public, and reports to the public with
the same frequency and in the same detail as it reports
on the assessment of nondisabled children, the
following:
``(i) The number of children with
disabilities participating in regular
assessments.
``(ii) The number of those children
participating in alternate assessments.
``(iii) The performance of those children
on regular assessments (beginning not later
than July 1, 1997) and on alternate assessments
(not later than July 1, 1999), if doing so
would be statistically sound and would not
result in the disclosure of performance results
identifiable to individual children.
``(17) Supplementation of state, local, and other federal
funds.--
``(A) In general.--The State ensures that amounts
provided under a grant to the State under this part,
except as provided in subparagraph (B), will be used to
supplement State, local, and other Federal funds
(including funds not under the direct control of State
or local educational agencies) expended for special
education and related services, and not to supplant
those funds.
``(B) Waiver.--The Secretary may waive, in whole or
in part, the requirements of subparagraph (A) if the
Secretary determines that the State has provided clear
evidence that all children with disabilities in the
State have available a free appropriate public
education or that, such a waiver would allow the State
to improve the delivery of special education and
related services to children with disabilities in the
State.
``(18) Public participation.--Prior to the adoption of any
policies and procedures needed to comply with this section
(including any amendments to such policies and procedures), the
State ensures that there are public hearings, adequate notice
of the hearings, and an opportunity for comment available to
the general public, including individuals with disabilities and
parents of children with disabilities.
``(19) State advisory panel.--
``(A) In general.--The State has established and
maintains an advisory panel for the purpose of
providing policy guidance with respect to special
education and related services for children with
disabilities in the State.
``(B) Membership.--Such advisory panel shall
consist of members appointed by the Governor, or any
other official authorized under State law to make such
appointments, that is representative of the State
population and that is composed of individuals involved
in, or concerned with, the education of children with
disabilities, including--
``(i) parents of children with
disabilities;
``(ii) individuals with disabilities;
``(iii) teachers;
``(iv) representatives of institutions of
higher education that prepare special education
and related services personnel;
``(v) State and local education officials;
``(vi) administrators of programs for
children with disabilities;
``(vii) representatives of other State
agencies involved in the financing or delivery
of related services to children with
disabilities;
``(viii) at least one representative of a
vocational, community, or business organization
concerned with the provision of transition
services to children with disabilities; and
``(ix) representatives from the State
juvenile and adult corrections agencies.
``(C) Special rule.--A majority of the members of
the panel shall be individuals with disabilities or
parents of children with disabilities.
``(D) Duties.--The advisory panel shall--
``(i) advise the State educational agency
of unmet needs within the State in the
education of children with disabilities;
``(ii) comment publicly on any rules or
regulations proposed by the State regarding--
``(I) the education of children
with disabilities; and
``(II) the procedures for
distribution of amounts received by the
State under a grant under this part;
``(iii) advise the State educational agency
in developing evaluations and reporting on data
to the Secretary under section 618;
``(iv) advise the State educational agency
in developing corrective action plans to
address findings identified in Federal
monitoring reports under this part; and
``(v) advise the State educational agency
in developing and implementing policies
relating to the coordination of services for
children with disabilities.
``(b) State Educational Agency as Provider of Free Appropriate
Public Education or Direct Services.--If the State educational agency
provides free appropriate public education to children with
disabilities, or provides direct services to such children, such
agency--
``(1) shall comply with any additional requirements of
section 613(a), as if such agency were a local educational
agency; and
``(2) may use amounts that are otherwise available to such
agency under this part to serve those children without regard
to section 613(a)(2)(A)(i) (relating to excess costs).
``(c) Exception for Prior State Plans.--
``(1) In general.--If a State has on file with the
Secretary policies and procedures that demonstrate that such
State meets any requirement of subsection (a), including any
policies and procedures filed under this part as in effect
before the date of the enactment of the IDEA Improvement Act of
1996, the Secretary shall consider such State to have met such
requirement for purposes of receiving a grant under this part.
``(2) Modifications made by state.--Subject to paragraph
(3), an application submitted by a State in accordance with
this section shall remain in effect until the State submits to
the Secretary such modifications as the State deems necessary.
This section shall apply to a modification to an application to
the same extent and in the same manner as this section applies
to the original plan.
``(3) Modifications required by the secretary.--The
Secretary may require a State to amend its application at any
time as a result of the Secretary's compliance reviews under
parts B and C. The Secretary shall reduce or shall not provide
any further payments to the State educational agency until the
Secretary is satisfied that the State educational agency is
complying with that requirement.
``(d) Approval by the Secretary.--
``(1) In general.--If the Secretary determines that a State
is eligible to receive a grant under this part, the Secretary
shall notify the State of that determination.
``(2) Notice and hearing.--The Secretary shall not make a
final determination that a State is not eligible to receive a
grant under this part until after providing the State--
``(A) with reasonable notice; and
``(B) with an opportunity for a hearing.
``(e) Assistance Under Other Federal Programs.--Nothing in this
title permits a State to reduce medical and other assistance available,
or to alter eligibility, under titles V and XIX of the Social Security
Act with respect to the provision of a free appropriate public
education for children with disabilities within the State.
``(f) By-Pass for Children in Private Schools.--
``(1) In general.--If, on the date of enactment of the
Education of the Handicapped Act Amendments of 1983, a State
educational agency is prohibited by law from providing for the
participation in special programs of children with disabilities
enrolled in private elementary and secondary schools as
required by subsection (a)(9), the Secretary shall,
notwithstanding such provision of law, arrange for the
provision of services to such children through arrangements
which shall be subject to the requirements of such subsection.
``(2) Payments.--
``(A) Determination of amounts.--If the Secretary
arranges for services pursuant to this subsection, the
Secretary, after consultation with the appropriate
public and private school officials, shall pay to the
provider of such services for a fiscal year an amount
per child that does not exceed the amount determined by
dividing--
``(i) the total amount received by the
State under this part for such fiscal year; by
``(ii) the number of children with
disabilities served in the prior year, as
reported to the Secretary by the State under
section 618.
``(B) Withholding of certain amounts.--Pending
final resolution of any investigation or complaint that
could result in a determination under this subsection,
the Secretary may withhold from the allocation of the
affected State educational agency the amount the
Secretary estimates would be necessary to pay the cost
of services described in subparagraph (A).
``(C) Period of payments.--The period under which
payments are made under subparagraph (A) shall continue
until the Secretary determines that there will no
longer be any failure or inability on the part of the
State educational agency to meet the requirements of
subsection (a)(9).
``(3) Notice and hearing.--
``(A) In general.--The Secretary shall not take any
final action under this subsection until the State
educational agency affected by such action has had an
opportunity, for at least 45 days after receiving
written notice thereof, to submit written objections
and to appear before the Secretary or the Secretary's
designee to show cause why such action should not be
taken.
``(B) Review of action.--If a State educational
agency is dissatisfied with the Secretary's final
action after a proceeding under subparagraph (A), such
agency may, not later than 60 days after notice of such
action, file with the United States court of appeals
for the circuit in which such State is located a
petition for review of that action. A copy of the
petition shall be forthwith transmitted by the clerk of
the court to the Secretary. The Secretary thereupon
shall file in the court the record of the proceedings
on which the Secretary based the Secretary's action, as
provided in section 2112 of title 28, United States
Code.
``(C) Review of findings of fact.--The findings of
fact by the Secretary, if supported by substantial
evidence, shall be conclusive, but the court, for good
cause shown, may remand the case to the Secretary to
take further evidence, and the Secretary may thereupon
make new or modified findings of fact and may modify
the Secretary's previous action, and shall file in the
court the record of the further proceedings. Such new
or modified findings of fact shall likewise be
conclusive if supported by substantial evidence.
``(D) Jurisdiction of court of appeals; review by
united states supreme court.--Upon the filing of a
petition under subparagraph (B), the United States
court of appeals shall have jurisdiction to affirm the
action of the Secretary or to set it aside, in whole or
in part. The judgment of the court shall be subject to
review by the Supreme Court of the United States upon
certiorari or certification as provided in section 1254
of title 28, United States Code.
``SEC. 613. LOCAL EDUCATIONAL AGENCY REQUIREMENTS.
``(a) In General.--A local educational agency shall be eligible for
assistance under this part for any fiscal year if, except as provided
in subsection (b), such agency submits to the State educational agency
information that demonstrates to the satisfaction of the State
educational agency the following:
``(1) Consistency with state policies.--The local
educational agency, in providing for the education of children
with disabilities within its jurisdiction, has in effect
policies, procedures, and programs that are consistent with the
State policies and procedures established under section 612.
``(2) Use of amounts.--
``(A) In general.--Amounts provided to the local
educational agency under this part--
``(i) shall be used only to pay the excess
costs of providing special education and
related services to children with disabilities;
``(ii) shall be used to supplement State,
local, and other Federal funds and not to
supplant such funds;
``(iii) except as provided in subparagraph
(B), may not be used to reduce the level of
expenditures for the education of children with
disabilities made by the local educational
agency from State or local funds below the
level of those expenditures for the preceding
fiscal year;
``(iv) may be used, notwithstanding clause
(i) or any other provision of this part, for
the costs of special education and related
services provided in a regular class or other
education related setting to a child with a
disability in accordance with the child's
individualized education program, even if one
or more nondisabled children benefit from those
services; and
``(v) may be used, in accordance with
subsection (f) and notwithstanding clause (i)
or any other provision of this part, to develop
and implement a coordinated services system.
``(B) Exception.--Notwithstanding the restriction
in subparagraph (A)(iii), a local education agency may
reduce the level of expenditures where such reduction
is attributable to--
``(i) the departure, by retirement or
otherwise, of special education personnel;
``(ii) a decrease in the enrollment of
children with disabilities;
``(iii) the termination of the obligation
of the agency, consistent with this part, to
provide a program of special education to a
particular child with a disability that is an
exceptionally costly program, as determined by
the State educational agency, because the
child--
``(I) has left the jurisdiction of
the agency;
``(II) has reached the age at which
the obligation of the agency to provide
a free appropriate public education to
the child has terminated; or
``(III) no longer needs such
program of special education; or
``(iv) the termination of costly
expenditures for long-term purchases, such as
the acquisition of equipment or the
construction of school facilities.
``(3) Information for state educational agency.--The local
educational agency shall provide the State educational agency
with information necessary to enable the State educational
agency to carry out its duties under this part, including, with
respect to paragraphs (14) and (15) of section 612(a),
information relating to the performance of children with
disabilities participating in programs carried out under this
part.
``(4) Public information.--The local educational agency
shall make available to parents of children with disabilities
and to the general public all documents relating to the
eligibility of such agency under this part.
``(b) Exception for Prior Local Plans.--
``(1) In general.--If a local educational agency or State
agency has on file with the State educational agency policies
and procedures that demonstrate that such local educational agency, or
such State agency, as the case may be, meets any requirement of
subsection (a), including any policies and procedures filed under this
part as in effect before the date of the enactment of IDEA Improvement
Act of 1996, the State educational agency shall consider such local
educational agency or State agency, as the case may be, to have met
such requirement for purposes of receiving assistance under this part.
``(2) Modification made by local educational agency.--
Subject to paragraph (3), an application submitted by a local
educational agency in accordance with this section shall remain
in effect until the such agency submits to the State
educational agency such modifications as the local educational
agency deems necessary.
``(3) Modifications required by state educational agency.--
The State educational agency may require a local educational
agency to amend its application at anytime as a result of the
compliance reviews of the State educational agency under parts
B and C. This paragraph shall apply to a modification to an
application to the same extent and in the same manner as this
section applies to the original plan.
``(c) Notification of Local Educational Agency or State Agency in
Case of Ineligibility.--If the State educational agency determines that
a local educational agency or State agency is not eligible under this
section, the State educational agency shall notify such local
educational agency or State agency, as the case may be, of that
determination and shall provide such local educational agency or State
agency with reasonable notice and an opportunity for a hearing.
``(d) Local Educational Agency Compliance.--
``(1) In general.--If the State educational agency, after
reasonable notice and an opportunity for a hearing, finds that
a local educational agency or State agency that has been
determined to be eligible under this section is failing to
comply with any requirement described in subsection (a), the
State educational agency shall reduce or shall not provide any
further payments to the local educational agency or State
agency until the State educational agency is satisfied that the
local educational agency or State agency, as the case may be,
is complying with that requirement.
``(2) Additional requirement.--Any State educational
agency, State agency, or local educational agency in receipt of
a notice pursuant to the notice described in paragraph (1)
shall, by means of public notice, take such measures as may be
necessary to bring the pendency of an action pursuant to this
subsection to the attention of the public within the
jurisdiction of such agency.
``(3) Consideration.--In carrying out its responsibilities
under paragraph (1), the State educational agency shall
consider any decision made in a hearing held under section 615
that is adverse to the local educational agency or State agency
involved in that decision.
``(e) Joint Establishment of Eligibility.--
``(1) In general.--A State educational agency may require a
local educational agency to establish its eligibility jointly
with another local educational agency if the State educational
agency determines that the local educational agency would be
ineligible under this section because the local educational
agency would not be able to establish and maintain programs of
sufficient size and scope to effectively meet the needs of
children with disabilities.
``(2) Amount of payments.--If a State educational agency
requires the joint establishment of eligibility under paragraph
(1), the total amount of funds made available to the affected
local educational agencies shall be equal to the sum of the
payments that each such local educational agency would have
received under section 611(c) if such agencies were eligible
for such payments.
``(3) Requirements.--Local educational agencies that
establish joint eligibility under this subsection shall--
``(A) adopt policies and procedures that are
consistent with the State's policies and procedures
under section 612(a); and
``(B) be jointly responsible for implementing
programs that receive assistance under this part.
``(4) Requirements for educational service agencies.--
``(A) In general.--If an educational service agency
is required by State law to carry out programs under
this part, the joint responsibilities given to local
educational agencies under this subsection shall--
``(i) not apply to the administration and
disbursement of any payments received by that
educational service agency; and
``(ii) be carried out only by that
educational service agency.
``(B) Additional requirement.--Notwithstanding any
other provision of this subsection, an educational
service agency shall provide for the education of
children with disabilities in the least restrictive
environment, as required by section 612(a)(4).
``(f) Coordinated Services System.--
``(1) In general.--A local educational agency may not use
more than 5 percent of the amount such agency receives under
this part for any fiscal year, in combination with other
amounts (which shall include amounts other than education
funds), to develop and implement a coordinated services system
designed to improve results for children and families,
including children with disabilities and their families.
``(2) Activities.--In implementing a coordinated services
system under this subsection, a local educational agency may
carry out activities which include--
``(A) improving the effectiveness and efficiency of
service delivery, including developing strategies that
promote accountability for results;
``(B) service coordination and case management that
facilitates the linkage of individualized education
programs under this part and individualized family
service plans under part C with individualized service
plans under multiple Federal and State programs, such
as title I of the Rehabilitation Act of 1973
(vocational rehabilitation), title XIX of the Social
Security Act (Medicaid), and title XVI of the Social
Security Act (supplemental security income);
``(C) developing and implementing interagency
financing strategies for the provision of education,
health, mental health, and social services, including
transition services and related services under this
title; and
``(D) interagency personnel development for
individuals working on coordinated services.
``(3) Coordination with certain projects under elementary
and secondary education act of 1965.--If a local educational
agency is carrying out a coordinated services project under
title XI of the Elementary and Secondary Education Act of 1965
and a coordinated services project under this part in the same
schools, such agency shall use amounts under this subsection in
accordance with the requirements of that title.
``(g) Direct Services by the State Educational Agency.--
``(1) In general.--A State educational agency shall use the
payments that would otherwise have been available to a local
educational agency or to a State agency to provide special
education and related services directly to children with
disabilities residing in the area served by that local agency,
or for whom that State agency is responsible, if the State
educational agency determines that the local education agency
or State agency, as the case may be--
``(A) has not provided the information needed to
establish the eligibility of such agency under this
section;
``(B) is unable to establish and maintain programs
of free appropriate public education that meet the
requirements of subsection (a);
``(C) is unable or unwilling to be consolidated
with one or more local educational agencies in order to
establish and maintain such programs; or
``(D) 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 such children.
``(2) Manner and location of education and services.--The
State educational agency may provide special education and
related services under paragraph (1) in such manner and at such
locations (including regional or State centers) as the State
agency considers appropriate. Such education and services shall
be provided in accordance with this part.
``(h) State Agency Eligibility.--Any State agency that desires to
receive a subgrant for any fiscal year under section 611(c) shall
demonstrate to the satisfaction of the State educational agency that--
``(1) all children with disabilities who are participating
in programs and projects funded under this part receive a free
appropriate public education, and that those children and their
parents are provided all the rights and procedural safeguards
described in this part; and
``(2) the agency meets such other conditions of this
section as the Secretary determines to be appropriate.
``SEC. 614. EVALUATIONS, REEVALUATIONS, INDIVIDUALIZED EDUCATION
PROGRAMS, AND EDUCATIONAL PLACEMENTS.
``(a) Evaluations and Reevaluations.--
``(1) Initial evaluations.--
``(A) In general.--A State educational agency,
other State agency, or local educational agency shall
conduct an initial evaluation, in accordance with this
paragraph and subsection (b), before the initial
provision of special education and related services to
a child with a disability under this part.
``(B) Procedures.--Such initial evaluation shall
consist of procedures--
``(i) to determine whether a child is a
child with a disability (as defined in section
602(3)); and
``(ii) to determine the educational needs
of such child.
``(C) Parental consent.--
``(i) In general.--The agency proposing to
conduct an initial evaluation to determine if
the child qualifies as a child with a
disability as defined in section 602(3)(A) or
602(3)(B) shall obtain an informed consent from
the parent of such child before the evaluation
is conducted. Parental consent for evaluation
shall not be construed as consent for placement
for receipt of special education and related
services.
``(ii) Refusal.--If the parents of such
child refuse consent for the evaluation, the
agency may continue to pursue an evaluation by
utilizing the mediation and due process
procedures under section 615(e).
``(2) Reevaluations.--A local educational agency shall
ensure that a reevaluation of each child with a disability is
conducted--
``(A) if conditions warrant a reevaluation or if
the child's parent or teacher requests a reevaluation,
but at least once every 3 years; and
``(B) in accordance with subsections (b) and (c).
``(b) Evaluation Procedures.--
``(1) Notice.--The local educational agency shall provide
notice to the parents of a child with a disability, in
accordance with subsections (b)(3), (b)(4), and (c) of section
615, that describes any evaluation procedures such agency
proposes to conduct.
``(2) Conduct of evaluation.--In conducting the evaluation,
the local educational agency shall--
``(A) use a variety of assessment tools and
strategies to gather relevant functional and
developmental information, including information
provided by the parent, that may assist in determining
whether the child is a child with a disability and the
content of the child's individualized education
program, including information related to enabling the
child to be involved in and progress in the general
curriculum or, for preschool children, to participate
in appropriate activities;
``(B) not use any single procedure as the sole
criterion for determining whether a child is a child
with a disability or determining an appropriate
educational program for the child; and
``(C) use technically sound instruments that may
assess the relative contribution of cognitive and
behavioral factors, in addition to physical or
developmental factors.
``(3) Additional requirements.--Each local educational
agency shall ensure that--
``(A) tests and other evaluation materials used to
assess a child under this section--
``(i) are selected and administered so as
not to be discriminatory on a racial or
cultural basis; and
``(ii) are provided and administered in the
child's native language or other mode of
communication, unless it is clearly not
feasible to do so; and
``(B) any standardized tests that are given to the
child--
``(i) have been validated for the specific
purpose for which they are used;
``(ii) are administered by qualified
personnel; and
``(iii) are administered in accordance with
any instructions provided by the producer of
such tests; and
``(C) the child is assessed in all areas of
suspected disability.
``(4) Determination of eligibility.--Upon completion of
administration of tests and other evaluation materials--
``(A) the determination of whether the child is a
child with a disability as defined in section 602(3) or
section 602(3)(B) will be made by a team of qualified
professionals and the parent of the child in accordance
with paragraph (5); and
``(B) a copy of the evaluation report and the
documentation of determination of eligibility will be
given to the parent.
``(5) Special rule for eligibility determination.--In
making a determination of eligibility under paragraph (4)(A), a
child shall not be determined to be a child with a disability
based on any of the following:
``(A) Lack of instruction, including instruction in
reading or math.
``(B) Limited English proficiency.
``(C) Cultural or environmental factors.
``(D) Economic disadvantage.
``(c) Reevaluation Procedures.--
``(1) In general.--As part of any reevaluation to assess a
child under this section, the individualized education program
team and other qualified professionals, as appropriate, shall--
``(A) review existing evaluation data on the child,
including current classroom-based assessments and
teacher and related services providers observation; and
``(B) on the basis of that review and input from
the child's parents, identify what additional data, if
any, are needed to determine--
``(i) whether the child continues to have a
disability, as described in section
602(3)(A)(i) or section 602(3)(B);
``(ii) the child's present levels of
performance and educational needs; and
``(iii)(I) whether the child continues to
need special education and related services;
and
``(II) if so, any additions or
modifications to the special education and
related services to enable the child to meet
the objectives set out in the individualized
education program of the child and to
participate, as appropriate, in the general
curriculum.
``(2) Tests and other evaluation materials.--The local
educational agency shall administer such tests and other
evaluation materials as may be needed to produce the data
identified by the IEP Team under paragraph (1)(B).
``(3) Requirements if additional data not needed.--If the
IEP Team and other qualified professionals, as appropriate,
determines that no additional data are needed to determine
whether the child continues to be a child with a disability,
the local educational agency--
``(A) shall notify the child's parents of--
``(i) that determination and the reasons
for it; and
``(ii) the right of such parents to request
an assessment to determine whether the child
continues to be a child with a disability; and
``(B) shall not be required to conduct such an
assessment unless requested to by the child's parents.
``(d) Individualized Education Programs.--
``(1) Requirement that program be in effect.--
``(A) In general.--At the beginning of each school
year, each local educational agency, or State
educational agency, as the case may be, shall have in
effect, for each child with a disability in its
jurisdiction, an individualized education program, as
defined in section 602(11).
``(B) Program for child aged 3 to 5.--In the case
of a child with a disability aged 3 to 5, inclusive, an
individualized family service plan that contains the
material described in section 636, and that is developed in accordance
with this section, may serve as the IEP of the child if using that plan
as the IEP is--
``(i) consistent with State policy; and
``(ii) agreed to by the agency and the
child's parents.
``(2) Development of iep.--
``(A) In general.--An individualized education
program team shall develop the IEP described in
paragraph (1). In developing such IEP, the IEP Team,
subject to subparagraph (B), shall--
``(i) consider the child's strengths and
the parents' concerns for enhancing their
child's education;
``(ii) consider the results of the initial
evaluation or most recent reevaluation;
``(iii) in the case of a child whose
behavior impedes his or her learning or that of
others, consider, when appropriate, strategies,
including positive behavior management
interventions and strategies to help the child
behave in an appropriate and responsible manner
conducive to learning;
``(iv) in the case of a child with limited
English proficiency, consider the language
needs of the child as such needs relate to the
child's IEP;
``(v) in the case of a child who is blind
or visually impaired, provide for instruction
in braille and the use of braille unless all
members of the IEP Team concur that, after an
evaluation of the child's reading and writing
skills, needs, and appropriate reading and
writing media (including an evaluation of the
child's future needs for instruction in braille
or the use of braille), instruction in braille
or the use of braille is not appropriate for
the child;
``(vi) consider the communication needs of
the child, and in the case of a child who is
deaf, hard-of-hearing, blind, or
communicatively disabled, consider the language
and communication needs of the child; and
``(vii) consider whether the child requires
assistive technology services or devices.
``(B) Requirement with respect to regular education
teacher.--The regular education teacher of the child,
as a member of the IEP Team, shall, to the extent
appropriate, participate in the development of the IEP
of the child, including the determination of
appropriate behavior-management techniques consistent
with subparagraph (A)(iii) of this paragraph, and the
determination of supplementary aids and services,
program modifications, and support for school personnel
consistent with section 602(11)(E).
``(3) Review and revision of iep.--
``(A) In general.--The local educational agency
shall ensure that, subject to subparagraphs (B) and
(C), the IEP Team--
``(i) reviews each IEP at least once a year
to determine whether the annual objectives for
the child are being achieved; and
``(ii) revises the IEP to address--
``(I) any lack of expected progress
toward the annual objectives and in the
general curriculum, where appropriate;
``(II) the results of any
reevaluation conducted under this
section;
``(III) information about the child
provided to, or by, the parents, as
described in section 602(11)(F)(ii); or
``(IV) the child's anticipated
needs as otherwise appropriate.
``(B) Certain children with disabilities.--
``(i) In general.--In the case of a child
with a disability who has demonstrated a
pattern of behavior that significantly impairs
the education of the child, or the education of
the classmates of the child, and the ability of
the teacher of the child to teach, if such
teacher initiates or requests an IEP meeting,
then the appropriate authority shall convene an
IEP meeting to review the child's educational
program, related services, supplementary aids
and services, and placement.
``(ii) Review of iep.--In carrying out a
review of the IEP of the child, the IEP Team
shall determine--
``(I) the appropriateness of the
current IEP of the child;
``(II) whether or not special
education and related services have
been appropriately provided to the
child;
``(III) whether or not other
supplementary aids or services,
including teacher training, are needed
to address the behavior of the child;
and
``(IV) subject to clauses (iii) and
(iv), whether or not the placement of
the child should be changed.
``(iii) Determination of change in
placement.--Prior to proposing a change in the
placement of the child, the IEP Team shall
first consider and then document the following:
``(I) The cumulative record over a
reasonable period of time describing
the frequent behaviors exhibited by the
child that significantly impairs the
education of the child, the education
of the classmates of the child, and the
ability of the teacher of the child to
teach.
``(II) Documentation of the efforts
made to address the behavior of the
child, the use of supplementary
services or strategies (including the
use of behavior management plans) that
have been implemented over a reasonable
period of time and have failed to
address the behavior of the child in a
manner that would enable the child to
remain in the current educational
placement of the child without
significantly impairing the education
of the child, the education of the
classmates of the child, and the
ability of the teacher of the child to
teach.
``(III) The training made available
to the teacher or teachers of the
child.
``(iv) Expedited due process hearing.--If
the IEP Team determines that a change in
placement of the child is appropriate, and the
parents of the child disagree with such
determination, then either party may request an
expedited due process hearing in accordance
with section 615(f)(2).
``(C) Requirement with respect to regular education
teacher.--The regular education teacher of the child,
as a member of the IEP Team, shall, to the extent
appropriate, participate in the review and revision of
the IEP of the child.
``(4) Failure to meet transition objectives.--If a
participating agency, other than the local educational agency,
fails to provide the transition services described in the IEP
in accordance with section 602(11)(F)(ii), the local
educational agency shall reconvene the IEP Team to identify
alternative strategies to meet the transition objectives for
the child set out in that program.
``(5) Rule of construction.--Nothing in this subsection
shall be construed--
``(A) to decrease the amount of information that a
parent receives concerning the progress of the child of
such parent; or
``(B) to increase the amount of paperwork for the
teachers, related services personnel, and
administrators of such child.
``(e) Educational Placements.--Each local educational agency or
State educational agency shall ensure that the parents of each child
with a disability are members of any group that makes decisions on the
educational placement of their child.
``SEC. 615. PROCEDURAL SAFEGUARDS.
``(a) Establishment of Procedures.--Any State educational agency or
local educational agency that receives assistance under this part shall
establish and maintain procedures in accordance with this section to
assure that children with disabilities and their parents are guaranteed
procedural safeguards with respect to the provision of free appropriate
public education by such agencies.
``(b) Types of Procedures.--The procedures required by this section
shall include--
``(1) an opportunity for the parents of a child with a
disability to examine all records relating to such child and to
participate in meetings with respect to the identification,
evaluation, and educational placement of the child, and the
provision of a free appropriate public education to such child,
and to obtain an independent educational evaluation of the
child;
``(2) procedures to protect the rights of the child
whenever the parents of the child are not known, the agency
cannot, after reasonable efforts, locate the parents, or the
child is a ward of the State, including the assignment of an
individual (who shall not be an employee of the State
educational agency, the local educational agency, or any other
agency that is involved in the education or care of the child)
to act as a surrogate for the parents;
``(3) written prior notice to the parents of the child
whenever such agency--
``(A) proposes to initiate or change; or
``(B) refuses to initiate or change;
the identification, evaluation, or educational placement of the
child, in accordance with subsection (c), or the provision of a
free appropriate public education to the child;
``(4) procedures designed to assure that the notice
required by paragraph (3) is in the native language of the
parents, unless it clearly is not feasible to do so;
``(5) an opportunity for mediation in accordance with
subsection (e);
``(6) an opportunity to present complaints with respect to
any matter relating to the identification, evaluation, or
educational placement of the child, or the provision of a free
appropriate public education to such child;
``(7) procedures that require the parent of a child with a
disability, or the attorney representing the child, to provide
notice (which shall remain confidential)--
``(A) to the State educational agency or local
educational agency, as the case may be, in the
complaint filed under paragraph (6); and
``(B) that shall include--
``(i) the name of the child, the address of
the residence of the child, and the name of the
school at which the child is attending;
``(ii) a description of the nature of the
problem of the child relating to such proposed
initiation or change, including facts relating
to such problem; and
``(iii) the proposed resolution of the
problem; and
``(8) procedures that require the State educational agency
to develop a model form to assist parents in filing a complaint
in accordance with paragraph (7).
``(c) Content of Prior Written Notice.--The notice required by
subsection (b)(3) shall include--
``(1) a description of the action proposed or refused by
the agency;
``(2) an explanation of why the agency proposes or refuses
to take the action;
``(3) a description of any other options that the agency
considered and the reasons why those options were rejected;
``(4) a description of each evaluation procedure, test,
record, or report the agency used as a basis for the proposed
or refused action;
``(5) a description of any other factors that are relevant
to the agency's proposal or refusal; and
``(6) a statement that the parents of a child with a
disability have protection under the procedural safeguards of
this title and, if this notice is not an initial referral for
evaluation, the means by which a copy of a description of the
procedural safeguards can be obtained.
``(d) Procedural Safeguards Notice.--
``(1) In general.--A copy of the procedural safeguards
available to the parents of a child with a disability shall be
given to the parents, at a minimum--
``(A) upon initial referral for evaluation;
``(B) upon each notification of an individualized
education program meeting and upon reevaluation of the
child; and
``(C) upon registration of a complaint under
subsection (b)(6).
``(2) Contents.--The procedural safeguards notice shall
include a full explanation of the procedural safeguards written
in the native language of the parents, unless not feasible to
do so, and written in an easily understandable manner,
available under this section and under regulations promulgated
by the Secretary relating to--
``(A) independent educational evaluation;
``(B) prior written notice;
``(C) parental consent;
``(D) access to educational records;
``(E) opportunity to present complaints;
``(F) the child's placement during pendency of due
process proceedings;
``(G) procedures for students who are subject to
placement in an interim alternative educational
setting;
``(H) requirements for unilateral placement by
parents of children in private schools at public
expense;
``(I) mediation;
``(J) due process hearings, including requirements
for disclosure of evaluation results and
recommendations;
``(K) State-level appeals (if applicable in that
State);
``(L) civil actions; and
``(M) attorney's fees.
``(e) Mediation.--
``(1) In general.--Any State educational agency or local
educational agency that receives assistance under this part
shall ensure that procedures are established and implemented to
allow parties to disputes involving the provision of free
appropriate public education to children with disabilities by
any such State educational agency or local educational agency
to resolve such disputes through a mediation process.
``(2) Requirements.--Such procedures shall meet the
following requirements:
``(A) The procedures shall ensure that the
mediation process--
``(i) is voluntary on the part of the
parents and may be terminated by either party
after a good faith effort has been made by the
party terminating the mediation process; and
``(ii) is conducted by a qualified and
impartial mediator who is trained in effective
mediation techniques.
``(B) The State shall maintain a list of
individuals who are qualified mediators and
knowledgeable in laws and regulations relating to the
provision of special education and related services.
``(C) The State shall bear the cost of the
mediation process.
``(D) Each session in the mediation process shall
be scheduled in a timely manner and shall be held in a
location that is convenient to the parties to the
dispute.
``(E) An agreement reached by the parties to the
dispute in the mediation process shall be set forth in
a written mediation agreement.
``(F) Discussions that occur during the mediation
process shall be confidential and may not be used as
evidence in any subsequent due process hearings or
civil proceedings, and the parties to the mediation
process may be required to sign a confidentiality
pledge prior to the commencement of such process.
``(G) The State shall determine whether or not
attorneys may attend or otherwise participate in the
mediation process after offering the opportunity for
parents and representatives of school districts to
participate in the mediation process prior to any due
process filing without attorneys present.
``(f) Impartial Due Process Hearing.--
``(1) In general.--Whenever a complaint has been received
under section 614(d)(3)(B), or subsection (b)(6) or (k) of this
section, the parents involved in such complaint shall have an
opportunity for an impartial due process hearing which shall be
conducted by the State educational agency or by the local
educational agency, as determined by State law or by the State
educational agency.
``(2) Disclosure of evaluations and recommendations.--
``(A) In general.--At least 10 school days prior to
a hearing conducted pursuant to paragraph (1), each
party shall disclose to all other parties all
evaluations and recommendations based on the offering
party's evaluations which the party intends to use at
the hearing.
``(B) Prohibition.--Any party which fails to meet
the requirement of subparagraph (A) shall be barred
from introducing such evaluations and recommendations
at such hearing.
``(3) Limitation on conduct of hearing.--A hearing
conducted pursuant to paragraph (1) may not be conducted by an
employee of the State educational agency or the local
educational agency involved in the education or care of the
child.
``(4) Additional requirements with respect to hearings for
certain children with disabilities.--A hearing conducted
pursuant to paragraph (1) that is based upon a complaint
received under section 614(d)(3)(B) shall, in addition to the
requirements contained in this subsection, comply with the
following additional requirements:
``(A) In determining whether or not the decision by
the IEP Team to change the placement of the child is
justified and appropriate, the hearing officer shall,
at a minimum, review the information under clause (iii)
of such section.
``(B) The child shall remain in the current
educational placement of the child until the hearing
officer reaches a final decision under this subsection.
``(C) The hearing officer shall make a
determination of findings and reach a final decision
not later than 20 days after the first day of the
hearing, or, at the discretion of the hearing officer,
not later than 30 days after such first day of the
hearing.
``(D) The placement of the child, including the
placement of the child during any due process or
judicial proceeding, shall be determined in accordance
with the final decision of the hearing officer under
this subsection, unless the parents and the State or
local educational agency agree otherwise.
``(g) Appeal.--If the hearing required by subsection (f) is
conducted by a local educational agency, any party aggrieved by the
findings and decision rendered in such a hearing may appeal such
findings and decision to the State educational agency. Such agency
shall conduct an impartial review of such decision. The officer
conducting such review shall make an independent decision upon
completion of such review.
``(h) Safeguards.--Any party to a hearing conducted pursuant to
subsection (f), or an appeal conducted pursuant to subsection (g),
shall be accorded--
``(1) the right to be accompanied and advised by counsel
and by individuals with special knowledge or training with
respect to the problems of children with disabilities;
``(2) the right to present evidence and confront, cross-
examine, and compel the attendance of witnesses;
``(3) the right to a written, or, at the option of the
parents, electronic verbatim record of such hearing; and
``(4) the right to written, or, at the option of the
parents, electronic findings of fact and decisions (which
findings and decisions shall be made available to the public
consistent with the requirements of section 617(c) (relating to
the confidentiality of data, information, and records) and
shall also be transmitted to the advisory panel established
pursuant to section 612(a)(18)).
``(i) Administrative Procedures.--
``(1) In general.--A decision made in a hearing conducted
pursuant to subsection (f) shall be final, except that any
party involved in such hearing may appeal such decision under
the provisions of subsection (g) and paragraph (2) of this
subsection.
``(2) Right to bring civil action.--
``(A) In general.--Any party aggrieved by the
findings and decision made under subsection (f) who
does not have the right to an appeal under subsection
(g), and any party aggrieved by the findings and
decision under this subsection, shall have the right to bring a civil
action with respect to the complaint presented pursuant to this
section, which action may be brought in any State court of competent
jurisdiction or in a district court of the United States without regard
to the amount in controversy.
``(B) Additional requirements.--In any action
brought under this paragraph the court--
``(i) shall receive the records of the
administrative proceedings;
``(ii) may hear additional evidence at the
request of a party; and
``(iii) basing its decision on the
preponderance of the evidence, shall grant such
relief as the court determines is appropriate.
``(3) Jurisdiction of district courts; attorneys' fees.--
``(A) In general.--The district courts of the
United States shall have jurisdiction of actions
brought under this section without regard to the amount
in controversy.
``(B) Award of attorneys' fees.--In any action or
proceeding brought under this section, the court, in
its discretion, may award reasonable attorneys' fees as
part of the costs to the parents of a child or youth
with a disability who is the prevailing party.
``(C) Determination of amount of attorneys' fees.--
Fees awarded under this paragraph shall be based on
rates prevailing in the community in which the action
or proceeding arose for the kind and quality of
services furnished. No bonus or multiplier may be used
in calculating the fees awarded under this subsection.
``(D) Prohibition of attorneys' fees and related
costs for certain services.--(i) Attorneys' fees may
not be awarded and related costs may not be reimbursed
in any action or proceeding under this subsection for
services performed subsequent to the time of a written
offer of settlement to a parent if--
``(I) the offer is made within the time
prescribed by Rule 68 of the Federal Rules of
Civil Procedure or, in the case of an
administrative proceeding, at any time more
than ten days before the proceeding begins;
``(II) the offer is not accepted within 10
days; and
``(III) the court or administrative officer
finds that the relief finally obtained by the
parents is not more favorable to the parents
than the offer of settlement.
``(ii) Attorneys' fees may not be awarded relating
to any meeting of the IEP Team unless such meeting is
convened as a result of a judicial action or
proceeding.
``(E) Exception to prohibition on attorneys' fees
and related costs.--Notwithstanding subparagraph (D),
an award of attorneys' fees and related costs may be
made to a parent who is the prevailing party and who
was substantially justified in rejecting the settlement
offer.
``(F) Reduction in amount of attorneys' fees.--
Except as provided in subparagraph (G), whenever the
court finds that--
``(i) the parent, during the course of the
action or proceeding, unreasonably protracted
the final resolution of the controversy;
``(ii) the amount of the attorneys' fees
otherwise authorized to be awarded unreasonably
exceeds the hourly rate prevailing in the
community for similar services by attorneys of
reasonably comparable skill and experience;
``(iii) the time spent and legal services
furnished were excessive considering the nature
of the action or proceeding;
``(iv) the attorney representing the parent
did not provide to the school district the
appropriate information in the due process
complaint in accordance with subsection (b)(7);
or
``(v) the amount of attorneys' fees
requested is not consistent with the extent of
the success of the parents;
the court shall reduce, accordingly, the amount of the
attorneys' fees awarded under this subsection.
``(G) Exception to reduction in amount of
attorneys' fees.--The provisions of subparagraph (F)
shall not apply in any action or proceeding if the
court finds that the State or local educational agency
unreasonably protracted the final resolution of the
action or proceeding or there was a violation of this section.
``(j) Maintenance of Current Educational Placement.--Except as
provided in subsection (k), during the pendency of any proceedings
conducted pursuant to this section, unless the State or local
educational agency and the parents otherwise agree, the child shall
remain in the then current educational placement of such child, or, if
applying for initial admission to a public school, shall, with the
consent of the parents, be placed in the public school program until
all such proceedings have been completed.
``(k) Placement in Alternative Educational Setting.--
``(1) Authority of school personnel.--School personnel
under this section may, to the same extent as a court, order a
change in the placement of a child with a disability--
``(A) to an appropriate interim alternative
educational setting, another setting, or suspension,
for not more than 10 school days (to the extent such
alternatives would be applied to children without
disabilities); and
``(B) to an appropriate interim alternative
educational setting for the same amount of time that a
child without a disability would be subject to
discipline, but for not more than an additional 45
school days if--
``(i) the child carries a weapon to school
or to a school function under the jurisdiction
of a State or a local educational agency;
``(ii) the child possesses or uses illegal
drugs or sells or solicits the sale of
medications or illegal drugs while at school or
a school function under the jurisdiction of a
State or local educational agency; or
``(iii) the child causes serious injury
while at school or at a school function under
the jurisdiction of a State or a local
educational agency.
``(2) Authority of hearing officer.--A hearing officer
under this section may, to the same extent as a court, order a
change in the placement of a child with a disability to an
appropriate interim alternative educational setting for not
more than 45 school days if--
``(A) the maintenance of the current placement of
such child is substantially likely to result in injury
to the child or to others; and
``(B) the hearing officer--
``(i) determines that the public agency has
demonstrated by substantial evidence that the
requirement of subparagraph (A) has been met;
``(ii) considers the appropriateness of the
child's current placement; and
``(iii) considers whether the public agency
has made reasonable efforts to minimize the
risk of harm including the use of supplementary
aids and services.
``(3) Determination of setting.--The alternative
educational setting described in paragraph (1) or paragraph (2)
shall be determined by the individualized education program
team.
``(4) Manifestation determination review.--
``(A) In general.--If a change in placement or
disciplinary proceeding, including expulsion, is
contemplated as a result of an action described in
paragraph (1) or paragraph (2)--
``(i) not later than 3 school days after
the date on which such action has been taken
the parents shall be notified of such action;
and
``(ii) not later than 15 school days after
the date on which such action has been taken a
review shall be conducted of the relationship
between the child's disability and the behavior
described in paragraph (1).
``(B) Individuals to carry out review.--A review
described in subparagraph (A) shall be conducted by the
IEP Team and other qualified personnel.
``(C) Conduct of review.--In carrying out a review
described in subparagraph (A), the individuals
described in subparagraph (B) shall consider
appropriate factors, including--
``(i) the appropriateness of the child's
placement;
``(ii) the consistency of the
implementation of the child's entire IEP,
including the technical soundness of the
behavior strategies used;
``(iii) evaluation and diagnostic results,
which may include any such results supplied by
the parents or guardian of the child; and
``(iv) observations of the child.
``(5) Determination that behavior was manifestation of
disability.--If the result of the review described in paragraph
(4) is a determination that the behavior of the child with a
disability was a manifestation of such child's disability and
the parents of such child agree with such determination, the
educational placement of such child may be changed. If the
parents do not agree with such determination or with such
changed educational placement, an immediate appeal may be made
to a hearing officer to determine whether the child's placement
should be changed. Any party aggrieved by the determination of
the hearing officer may initiate a due process hearing as
described in subsection (f).
``(6) Determination that behavior was not manifestation of
disability.--
``(A) In general.--
``(i) Initial determination requirement.--
The IEP Team may determine that the behavior of
the child was not a manifestation of such
child's disability only if the IEP Team first
determines that the disability--
``(I) did not impair the ability of
the child to understand the impact and
consequences of the behavior; and
``(II) did not impair the ability
of the child to control the behavior.
``(ii) Other requirements.--If the result
of the review described in paragraph (4) is a
determination that the behavior of the child
with a disability was not a manifestation of
such child's disability, the relevant
disciplinary procedures applicable to children
without disabilities may be applied in the same
manner in which they would be applied to
children without disabilities. If the parents
do not agree with such application, a due
process hearing, as described in subsection
(f), may be initiated. Any determination under
paragraph (4) that a child's behavior was not a
manifestation of a disability shall be reviewed
by a hearing officer under subsection (f),
whether or not the child's parents request a
hearing, before educational services to the
child may be terminated under this paragraph.
During the pendency of such due process
procedures, the child shall continue to receive
educational services in the alternative
educational setting.
``(B) Special rule.--Where application of the
relevant disciplinary procedures in subparagraph (A)
would result in the expulsion of the child without the
receipt of educational services, the child may be
expelled only if--
``(i) the child carries a weapon to school
or to a school function under the jurisdiction
of a State or local educational agency; or
``(ii) the child possesses or uses illegal
drugs or sells or solicits the sale of
medications or illegal drugs while at school or
a school function under the jurisdiction of a
State or local educational agency.
``(7) Expedited hearing.--The State or local educational
agency shall arrange for an expedited hearing in any case
described in this subsection when requested by the parent.
``(8) Additional requirements.--
``(A) Maintenance of alternative educational
setting.-- If the parent of a child described in this
section requests a hearing pursuant to subsection (f),
the child shall remain in the alternative educational
setting in which such child was placed during the
pendency of any proceedings under this section, unless
the parents and the State or local educational agency
agree otherwise.
``(B) Protections for children not yet eligible for
special education and related services.--
``(i) In general.--A child who has not been
determined to be eligible for special education
and related services under this part and who
has engaged in behavior that violated any rule
or code of conduct of the local educational
agency, including any behavior described in
paragraph (1), may assert any of the
protections provided for in this part if the
local educational agency had knowledge (as
determined in accordance with this
subparagraph) that the child was a child with a
disability before the behavior that
precipitated the disciplinary action occurred.
``(ii) Basis of knowledge.--A local
educational agency shall be deemed to
have knowledge that a child is a child with a disability if--
``(I) the parent of the child has
expressed concern in writing (unless
the parent is illiterate or has a
disability that prevents compliance
with the requirements contained in this
subclause) to personnel of the
appropriate educational agency that the
child is in need of special education
and related services;
``(II) the behavior of the child
demonstrates the need for such
services;
``(III) the parent of the child has
requested an evaluation of the child
pursuant to section 614; or
``(IV) the teacher of the child, or
other personnel of the local
educational agency, has expressed
concern about the behavior of the child
to the director of special education of
such agency or to other personnel of
the agency.
``(iii) Conditions that apply if no basis
of knowledge.--
``(I) In general.--If a local
educational agency does not have
knowledge that a child is a child with
a disability (in accordance with clause
(ii)) prior to taking disciplinary
measures against the child, the child
may be subjected to the same
disciplinary measures as measures
applied to children without
disabilities, who engaged in comparable
behaviors consistent with paragraph
(2).
``(II) Limitations.--If a request
is made for an evaluation of a child
during the time period in which the
child is subjected to disciplinary
measures under paragraph (1), the
evaluation shall be conducted in an
expedited manner. If the child is
determined to be a child with a
disability, taking into consideration
information from the evaluation
conducted by the agency and information
provided by the parents, the agency
shall provide special education and
related services in accordance with the
provisions of this part, except that,
pending the results of the evaluation,
the child shall remain in the
educational placement determined by
school authorities.
``(C) Referral to and action by law enforcement and
judicial authorities.--Nothing in this part shall be
construed to prohibit an agency from reporting a crime
committed by a child with a disability to appropriate
authorities or to prevent State law enforcement and
judicial authorities from exercising their
responsibilities with regard to the application of
Federal and State law to crimes committed by a child
with a disability.
``(9) Definitions.--For purposes of this subsection, the
following definitions apply:
``(A) Illegal drug.--The term `illegal drug'--
``(i) means a controlled substance within
the meaning of any of paragraphs (1) through
(5) of section 202 of the Controlled Substances
Act (21 U.S.C 812); but
``(ii) does not include a controlled
substance within the meaning of paragraphs (1)
through (5) of section 202 of such Act if--
``(I) such controlled substance is
legally possessed or used under the
supervision of a licensed health care
professional; or
``(II) such controlled substance is
legally possessed or used under any
other authority under such Act or under
any other provision of Federal law.
``(B) Serious injury.--The term `serious injury'
means an injury that involves substantial risk of
death, extreme physical pain, obvious or protracted
disfigurement, loss of the use of bodily members or
organs, broken bones, or significant endangerment to an
individual's emotional health or safety that is the
result of a physical or verbal assault.
``(C) Weapon.--The term `weapon' has the meaning
given the term `dangerous weapon' under paragraph (2)
of the first subsection (g) of section 930 of title 18,
United States Code.
``(l) Rule of Construction.--Nothing in this part shall be
construed to restrict or limit the rights, procedures, and remedies
available under the Constitution, the Americans with Disabilities Act,
title V of the Rehabilitation Act of 1973, or other Federal laws
protecting the rights of children with disabilities, except that before
the filing of a civil action under such laws seeking relief that is
also available under this part, the procedures under subsections (f)
and (g) shall be exhausted to the same extent as would be required had
the action been brought under this part.
``(m) Transfer of Parental Rights at Age of Majority.--
``(1) In general.--A State that receives amounts from a
grant under this part may provide that, when a child with a
disability reaches the age of majority under State law (except
for a child with a disability who has been determined to be
incompetent under State law)--
``(A) the public agency shall provide any notice
required by this section to both the individual and the
parents;
``(B) all other rights accorded to parents under
this part transfer to the child;
``(C) the agency shall notify the individual and
the parents of the transfer of rights; and
``(D) all rights accorded to parents under this
part transfer to children who are incarcerated in an
adult or juvenile Federal, State, or local correctional
institution.
``(2) Special rule.--If, under State law, a child with a
disability who has reached the age of majority under State law
is determined not to have the ability to provide informed
consent with respect to the educational program of the child,
the State shall establish procedures for appointing the parent
of the child, or another appropriate individual, to represent
the educational interests of the child throughout the period of
eligibility of the child under this part.
``SEC. 616. WITHHOLDING AND JUDICIAL REVIEW.
``(a) Withholding of Payments.--
``(1) In general.--Whenever the Secretary, after reasonable
notice and opportunity for hearing to the State educational
agency involved (and to any local educational agency or State
agency affected by any failure described in subparagraph (B)),
finds--
``(A) that there has been a failure by the State to
comply substantially with any provision of this part;
or
``(B) that there is a failure to comply with any
condition of a local educational agency's or State
agency's eligibility under this part;
the Secretary shall, after notifying the State educational
agency, withhold any further payments to the State under this
part.
``(2) Nature of withholding.--If the Secretary withholds
further payments under paragraph (1), the Secretary may
determine that such withholding will be limited to programs or
projects, or portions thereof, affected by the failure, or that
the State educational agency shall not make further payments
under this part to specified local educational agencies or
State agencies affected by the failure. Until the Secretary is
satisfied that there is no longer any failure to comply with
the provisions of this part, as specified in subparagraph (A)
or (B) of paragraph (1), no further payments shall be made to
the State under this part, or payments by the State educational
agency under this part shall be limited to local educational
agencies and State agencies whose actions did not cause or were
not involved in the failure, as the case may be. Any State
educational agency, State agency, or local educational agency
that has received notice under paragraph (1) shall, by means of
a public notice, take such measures as may be necessary to
bring the pendency of an action pursuant to this subsection to
the attention of the public within the jurisdiction of such
agency.
``(b) Judicial Review.--
``(1) In general.--If any State is dissatisfied with the
Secretary's final action with respect to the eligibility of the
State under section 612, such State may, not later than 60 days
after notice of such action, file with the United States court
of appeals for the circuit in which such State is located a
petition for review of that action. A copy of the petition
shall be forthwith transmitted by the clerk of the court to the
Secretary. The Secretary thereupon shall file in the court the
record of the proceedings upon which the Secretary's action was
based, as provided in section 2112 of title 28, United States
Code.
``(2) Jurisdiction; review by united states supreme
court.--Upon the filing of such petition, the court shall have
jurisdiction to affirm the action of the Secretary or to set it
aside, in whole or in part. The judgment of the court shall be
subject to review by the Supreme Court of the United States
upon certiorari or certification as provided in section 1254 of
title 28, United States Code.
``(3) Standard of review.--The findings of fact by the
Secretary, if supported by substantial evidence, shall be
conclusive, but the court, for good cause shown, may remand the
case to the Secretary to take further evidence, and the
Secretary may thereupon make new or modified findings of fact
and may modify the Secretary's previous action, and shall file
in the court the record of the further proceedings. Such new or
modified findings of fact shall likewise be conclusive if
supported by substantial evidence.
``SEC. 617. ADMINISTRATION.
``(a) Responsibilities of Secretary.--In carrying out this part,
the Secretary shall--
``(1) cooperate with, and (directly or by grant or
contract) furnish technical assistance necessary to, the State
in matters relating to--
``(A) the education of children with disabilities;
and
``(B) carrying out this part; and
``(2) provide short-term training programs and institutes.
``(b) Rules and Regulations.--In carrying out the provisions of
this part, the Secretary shall issue regulations under this Act only to
the extent that such regulations are necessary to ensure that there is
compliance with the specific requirements of this Act.
``(c) Confidentiality.--The Secretary shall take appropriate
action, in accordance with the provisions of section 444 of the General
Education Provisions Act (20 U.S.C. 1232g), to assure the protection of
the confidentiality of any personally identifiable data, information,
and records collected or maintained by the Secretary and by State and
local educational agencies pursuant to the provisions of this part.
``(d) Personnel.--The Secretary is authorized to hire qualified
personnel necessary to conduct data collection and evaluation
activities authorized by subsection (a) and section 618 without regard
to the provisions of title 5, United States Code, relating to
appointments in the competitive service and without regard to chapter
51 and subchapter III of chapter 53 of such title relating to
classification and general schedule pay rates, except that no more than
twenty such personnel shall be employed at any time.
``SEC. 618. PROGRAM INFORMATION.
``(a) In General.--Each State that receives assistance under this
part, and the Secretary of the Interior, shall provide data, which may
be based on a sampling of data, each year to the Secretary on--
``(1) the number of children, categorized by race,
ethnicity, gender, and disability, who are receiving--
``(A) a free appropriate public education; or
``(B) early intervention services because--
``(i) such children have developmental
delays; or
``(ii) such children have a diagnosed
physical or mental condition that has a high
probability of resulting in developmental
delay;
``(2) the progress of the State, and of the children with
disabilities in the State, toward meeting the goals established
under section 612(14);
``(3) the types of early intervention services provided to
such children;
``(4) the number of children with disabilities, categorized
by race, ethnicity, gender, and disability--
``(A) participating in regular education programs;
``(B) in separate classes, separate schools or
facilities, or public or private residential
facilities;
``(C) who have been otherwise removed from the
regular education environment; and
``(D) in various early intervention settings;
``(5) for each year of age from age 14 to 21, the number of
children with disabilities, categorized by race, ethnicity,
gender, and disability, who, because of program completion or
for other reasons, stopped receiving special education, and the
reasons why such children stopped receiving such special
education;
``(6)(A) the number of children with disabilities,
categorized by race, ethnicity, gender, and disability, who,
under section 615(k), are removed to an interim alternative
educational setting;
``(B) the acts or items precipitating such removals; and
``(C) the number of children with disabilities who are
expelled from school without receiving services; and
``(7) any other information required by the Secretary.
``(b) Disproportionality.--
``(1) In general.--Each State that receives assistance
under this part, and the Secretary of the Interior, shall
provide for the collection and examination of data to determine
if significant disproportionality based on race is occurring in
the State with respect to--
``(A) the identification of children as children
with disabilities, including the identification of
children as children with disabilities in accordance
with a particular impairment described in section
602(3); and
``(B) the placement in particular educational
settings of such children.
``(2) Review and revision of policies, practices, and
procedures.--In the case of a determination of significant
disproportionality with respect to the identification of
children as children with disabilities, or the placement in
particular educational settings of such children, in accordance
with paragraph (1), the State or the Secretary of the Interior,
as the case may be, shall provide for the review and, if
appropriate, revision of the policies, procedures, and
practices used in such identification or placement to ensure
that such policies, procedures, and practices comply with the
requirements of this Act.
``SEC. 619. PRESCHOOL GRANTS.
``(a) In General.--The Secretary shall provide grants under this
section to assist States to provide special education and related
services, in accordance with this part--
``(1) to children with disabilities aged 3 to 5, inclusive;
and
``(2) at the State's discretion, to 2-year-old children
with disabilities who will turn 3 during the school year.
``(b) Eligibility.--A State shall be eligible for a grant under
this section if such State--
``(1) is eligible under section 612 to receive a grant
under this part; and
``(2) makes a free appropriate public education available
to all children with disabilities, aged 3 to 5, inclusive,
residing in the State.
``(c) Amount.--
``(1) In general.--From the amount appropriated for any
fiscal year pursuant to the authorization of appropriations
under subsection (m), the Secretary shall allot to each
eligible State the amount it received for fiscal year 1996
under this section (as this section was in effect on the day
before the date of the enactment of the IDEA Improvement Act of
1996).
``(2) Insufficient funds.--
``(A) In general.--If the amount appropriated under
subsection (m) for a fiscal year is insufficient to
make the full allotments described in paragraph (1),
the Secretary shall--
``(i) first, reduce the allocation to any
State whose number of children aged 3 to 5,
inclusive, is less than the number of such
children in such State in fiscal year 1995 by
the same percentage by which such number of
children declined from the number of children
in fiscal year 1995; and
``(ii) second, if necessary, ratably reduce
the allocations of all States, including those
allocations reduced under clause (i).
``(B) Availability of additional funds.--If
additional funds become available to make allocations
under this section, the allocations that were reduced
under subparagraph (A) shall be increased on the same
basis as such allocations were reduced.
``(d) Allotment of Remaining Funds.--After making allotments under
subsection (c), the Secretary shall allot any remaining funds to
eligible States on the basis of their relative population of children
aged 3 to 5, inclusive.
``(e) Special Rule With Respect to Puerto Rico.--Notwithstanding
any other provision of this subsection, the amount allotted to Puerto
Rico for a fiscal year shall bear the same or lower proportion to the
amount appropriated pursuant to subsection (m) as the amount received
by Puerto Rico under this section for fiscal year 1996 bears to the
aggregate of the amounts received by all States under this section for
fiscal year 1996.
``(f) Determination of Population Figures.--For the purpose of
providing grants under this section, the Secretary shall use the most
recent population data that are available and satisfactory to the
Secretary.
``(g) Reservation for State Activities.--A State may reserve not
more than 25 percent of the amount allotted to the State under this
section for a fiscal year for administration and other State-level
activities in accordance with subsections (h) and (i).
``(h) State Administration.--
``(1) In general.--A State may use up to 3 percent of the
amount allotted to the State under this section for a fiscal
year for the purpose of administering this section, including
the coordination of activities under this part with, and
providing technical assistance to, other programs that provide
services to children with disabilities.
``(2) Use of amounts for administration of part c.--If the
State educational agency is the lead agency for the State under
part C, amounts described in paragraph (1) may also be used for
the administration of such part C.
``(i) Other State-Level Activities.--Each State shall use any funds
it retains under subsection (g) and does not use for administration
under subsection (h)--
``(1) for support services (including establishing and
implementing the mediation process required by section 615(d)),
which may benefit children with disabilities younger than 3 or
older than 5 as long as those services also benefit children
with disabilities aged 3 to 5, inclusive;
``(2) for direct services for children eligible for
services under this section;
``(3) to develop a State improvement plan under part D;
``(4) for activities at the State and local levels to meet
the performance goals established by the State under section
612(a)(14) and to support implementation of the State
improvement plan under part D if the State receives funds under
that part; or
``(5) to supplement other funds used to develop and
implement a Statewide coordinated services system designed to
improve results for children and families, including children
with disabilities and their families, but not to exceed one
percent of the amount received by the State under this section
for a fiscal year.
``(j) Subgrants to Local Educational Agencies.--
``(1) Requirement to make subgrants.--Each State that
receives a grant under this section for any fiscal year shall
distribute at least 75 percent of the grant funds to local
educational agencies in the State, and to State agencies that
received funds under section 614A(a) (as such section was in
effect on the day before the date of the enactment of the IDEA
Improvement Act of 1996) for fiscal year 1996, that have
established their eligibility under section 613.
``(2) Methods of distribution.--A State may distribute
funds under paragraph (1) on the basis of--
``(A) total school age population;
``(B) school enrollment;
``(C) numbers of children with disabilities aged 3
to 5, inclusive, receiving a free appropriate public
education;
``(D) allocations for previous fiscal years;
``(E) any two or more of the factors described in
subparagraphs (A) through (D); or
``(F) poverty, in combination with one or more of
the factors described in subparagraphs (A) through (D).
``(k) Part C Inapplicable.--Part C of this Act does not apply to
any child with a disability receiving a free appropriate public
education, in accordance with this part, with funds received under this
section.
``(l) Prohibition on Consolidation of Grants for Territories.--The
provisions of section 501 of Public Law 95-134 (48 U.S.C. 1469a;
relating to the consolidation of one or more grants provided to certain
territories) shall not apply with respect to amounts provided to a
territory under a grant under this section.
``(m) Authorization of Appropriations.--For the purpose of carrying
out this section, there are authorized to be appropriated to the
Secretary such sums as may be necessary.
``PART C--INFANTS AND TODDLERS WITH DISABILITIES
``SEC. 631. FINDINGS AND POLICY.
``(a) Findings.--The Congress finds that there is an urgent and
substantial need--
``(1) to enhance the development of infants and toddlers
with disabilities and to minimize their potential for
developmental delay;
``(2) to reduce the educational costs to our society,
including our Nation's schools, by minimizing the need for
special education and related services after infants and
toddlers with disabilities reach school age;
``(3) to minimize the likelihood of institutionalization of
individuals with disabilities and maximize the potential for
their independently living in society;
``(4) to enhance the capacity of families to meet the
special needs of their infants and toddlers with disabilities;
and
``(5) to enhance the capacity of State and local agencies
and service providers to identify, evaluate, and meet the needs
of historically underrepresented populations, particularly
minority, low-income, inner-city, and rural populations.
``(b) Policy.--It is therefore the policy of the United States to
provide financial assistance to States--
``(1) to develop and implement a statewide, comprehensive,
coordinated, multidisciplinary, interagency system of early
intervention services for infants and toddlers with
disabilities and their families;
``(2) to facilitate the coordination of payment for early
intervention services from Federal, State, local, and private
sources (including public and private insurance coverage); and
``(3) to enhance their capacity to provide quality early
intervention services and expand and improve existing early
intervention services being provided to infants and toddlers
with disabilities and their families.
``SEC. 632. DEFINITIONS.
``As used in this part:
``(1) At-risk infant or toddler.--The term `at-risk infant
or toddler' means an individual under 3 years of age who would
be at risk of experiencing a substantial developmental delay if
early intervention services were not provided to the
individual.
``(2) Council.--The term `council' means a State
interagency coordinating council established under section 641.
``(3) Developmental delay.--The term `developmental delay',
when used with respect to an individual residing in a State,
has the meaning given such term by the State under section
635(a)(1).
``(4) Early intervention services.--The term `early
intervention services' means developmental services which--
``(A) are provided under public supervision;
``(B) are provided at no cost except where Federal
or State law provides for a system of payments by
families, including a schedule of sliding fees;
``(C) are designed to meet the developmental needs
of an infant or toddler with a disability in any one or
more of the following areas--
``(i) physical development;
``(ii) cognitive development;
``(iii) communication development;
``(iv) social or emotional development; or
``(v) adaptive development;
``(D) meet the standards of the State in which they
are provided, including the requirements of this part;
``(E) include--
``(i) family training, counseling, and home
visits;
``(ii) special instruction;
``(iii) speech-language pathology and
audiology services;
``(iv) occupational therapy;
``(v) physical therapy;
``(vi) psychological services;
``(vii) service coordination services;
``(viii) medical services only for
diagnostic or evaluation purposes;
``(ix) early identification, screening, and
assessment services;
``(x) health services necessary to enable
the infant or toddler to benefit from the other
early intervention services;
``(xi) social work services;
``(xii) vision services;
``(xiii) assistive technology devices and
assistive technology services; and
``(xiv) transportation and related costs
that are necessary to enable an infant or
toddler and the infant's or toddler's family to
receive another service described in this
paragraph;
``(F) are provided by qualified personnel,
including--
``(i) special educators;
``(ii) speech-language pathologists and
audiologists;
``(iii) occupational therapists;
``(iv) physical therapists;
``(v) psychologists;
``(vi) social workers;
``(vii) nurses;
``(viii) nutritionists;
``(ix) family therapists;
``(x) orientation and mobility specialists;
and
``(xi) pediatricians and other physicians;
``(G) to the maximum extent appropriate, are
provided in natural environments, including the home,
and community settings in which children without
disabilities participate; and
``(H) are provided in conformity with an
individualized family service plan adopted in
accordance with section 636.
``(5) Infant or toddler with a disability.--The term
`infant or toddler with a disability'--
``(A) means an individual under 3 years of age who
needs early intervention services because the
individual--
``(i) is experiencing developmental delays,
as measured by appropriate diagnostic
instruments and procedures in one or more of
the areas of cognitive development, physical
development, communication development, social
or emotional development, and adaptive
development; or
``(ii) has a diagnosed physical or mental
condition which has a high probability of
resulting in developmental delay; and
``(B) may also include, at a State's discretion,
at-risk infants and toddlers.
``SEC. 633. GENERAL AUTHORITY.
``The Secretary shall, in accordance with this part, make grants to
States (from their allocations under section 643) to assist each State
to maintain and implement a statewide, comprehensive, coordinated,
multidisciplinary, interagency system to provide early intervention
services for infants and toddlers with disabilities and their families.
``SEC. 634. ELIGIBILITY.
``In order to be eligible for a grant under section 633, a State
shall demonstrate to the Secretary that the State--
``(1) has adopted a policy that appropriate early
intervention services are available to all infants and toddlers
with disabilities in the State and their families, including
Indian infants and toddlers with disabilities and their
families residing on a reservation geographically located in
the State; and
``(2) has in effect a statewide system that meets the
requirements of section 635.
``SEC. 635. REQUIREMENTS FOR STATEWIDE SYSTEM.
``(a) In General.--A statewide system described in section 633
shall include, at a minimum, the following components:
``(1) A definition of the term `developmental delay' that
will be used by the State in carrying out programs under this
part.
``(2) A timely, comprehensive, multidisciplinary evaluation
of the functioning of each infant or toddler with a disability
in the State, and a family- directed identification of the
needs of each family of such an infant or toddler, to
appropriately assist in the development of the infant or
toddler.
``(3) For each infant or toddler with a disability in the
State, an individualized family service plan in accordance with
section 636, including service coordination services in
accordance with such service plan.
``(4) A comprehensive child find system, consistent with
part B, including a system for making referrals to service
providers that includes timelines and provides for
participation by primary referral sources.
``(5) A public awareness program focusing on early
identification of infants and toddlers with disabilities,
including the preparation and dissemination by the lead agency
designated or established under paragraph (8) to all primary
referral sources, especially hospitals and physicians, of
information for parents on the availability of early
intervention services, and procedures for determining the
extent to which such sources disseminate such information to
parents of infants and toddlers.
``(6) A central directory which includes information on
early intervention services, resources, and experts available
in the State and research and demonstration projects being
conducted in the State.
``(7) A comprehensive system of personnel development,
including the training of paraprofessionals and the training of
primary referral sources respecting the basic components of
early intervention services available in the State, that is
consistent with the comprehensive system of personnel
development described in section 612(a)(13) (or with the
personnel development requirements for State improvement plans
under section 683) and may include--
``(A) implementing innovative strategies and
activities for the recruitment and retention of early
education service providers;
``(B) promoting the preparation of early
intervention providers who are fully and appropriately
qualified to provide early intervention services under
this part;
``(C) training personnel to work in rural and inner
city areas; and
``(D) training personnel to coordinate transition
services for infants and toddlers served under this
part from an early intervention program under this part
to preschool or other appropriate services.
``(8) Policies and procedures relating to the establishment
and maintenance of standards to ensure that personnel necessary
to carry out this part are appropriately and adequately
prepared and trained, including--
``(A) the establishment and maintenance of
standards which are consistent with any State approved
or recognized certification, licensing, registration,
or other comparable requirements which apply to the
area in which such personnel are providing early
intervention services; and
``(B) subject to subsection (b), to the extent such
standards are not based on the highest requirements in
the State applicable to a specific profession or
discipline, the steps the State is taking to require
the retraining or hiring of personnel that meet
appropriate professional requirements in the State;
except that nothing in this part, including this paragraph,
prohibits the use of paraprofessionals and assistants who are
appropriately trained and supervised, in accordance with State
law, regulations, or written policy, to assist in the provision
of early intervention services to infants and toddlers with
disabilities under this part.
``(9) A single line of responsibility in a lead agency
designated or established by the Governor for carrying out--
``(A) the general administration and supervision of
programs and activities receiving assistance under
section 633, and the monitoring of programs and
activities used by the State to carry out this part,
whether or not such programs or activities are
receiving assistance made available under section 633,
to ensure that the State complies with this part;
``(B) the identification and coordination of all
available resources within the State from Federal,
State, local and private sources;
``(C) the assignment of financial responsibility in
accordance with section 637(a)(1) to the appropriate
agencies;
``(D) the development of procedures to ensure that
services are provided to infants and toddlers and their
families under this part in a timely manner pending the
resolution of any disputes among public agencies or
service providers;
``(E) the resolution of intra- and interagency
disputes; and
``(F) the entry into formal interagency agreements
that define the financial responsibility of each agency
for paying for early intervention services (consistent
with State law) and procedures for resolving disputes
and that include all additional components necessary to
ensure meaningful cooperation and coordination.
``(10) A policy pertaining to the contracting or making of
other arrangements with service providers to provide early
intervention services in the State, consistent with the
provisions of this part, including the contents of the
application used and the conditions of the contract or other
arrangements.
``(11) A procedure for securing timely reimbursement of
funds used under this part in accordance with section 640(a).
``(12) Procedural safeguards with respect to programs under
this part, as required by section 639.
``(13) A system for compiling data requested by the
Secretary under section 618 that relates to this part.
``(14) A State interagency coordinating council that meets
the requirements of section 641.
``(b) Modification of Personnel Requirement.--If a State determines
that the requirement of subsection (a)(7)(B) would significantly
inhibit the ability of the State to contract with, or employ, an
appropriate number and types of personnel to provide early intervention
services to infants and toddlers with disabilities in a geographic
region, the State may, subject to public notice and comment,
temporarily suspend the requirement for the region, in a manner
consistent with State law and for a period not exceeding 3 years, with
respect to the most qualified available individuals in shortage areas
who are making annual progress in applicable coursework.
``SEC. 636. INDIVIDUALIZED FAMILY SERVICE PLAN.
``(a) Assessment and Program Development.--A statewide system
described in section 633 shall provide, at a minimum, for each infant
or toddler with a disability, and the infant's or toddler's family, to
receive--
``(1) a multidisciplinary assessment of the unique
strengths and needs of the infant or toddler and the
identification of services appropriate to meet such needs;
``(2) a family-directed assessment of the resources,
priorities, and concerns of the family and the identification
of the supports and services necessary to enhance the family's
capacity to meet the developmental needs of the infant or
toddler; and
``(3) a written individualized family service plan
developed by a multidisciplinary team, including the parents,
as required by subsection (e).
``(b) Periodic Review.--The individualized family service plan
shall be evaluated once a year and the family shall be provided a
review of the plan at 6-month intervals (or more often where
appropriate based on infant or toddler and family needs).
``(c) Promptness After Assessment.--The individualized family
service plan shall be developed within a reasonable time after the
assessment required by subsection (a)(1) is completed. With the
parents' consent, early intervention services may commence prior to the
completion of such assessment.
``(d) Content of Plan.--The individualized family service plan
shall be in writing and contain--
``(1) a statement of the infant's or toddler's present
levels of physical development, cognitive development,
communication development, social or emotional development, and
adaptive development, based on objective criteria;
``(2) a statement of the family's resources, priorities,
and concerns relating to enhancing the development of the
family's infant or toddler with a disability;
``(3) a statement of the major outcomes expected to be
achieved for the infant or toddler and the family, and the
criteria, procedures, and timelines used to determine the
degree to which progress toward achieving the outcomes is being
made and whether modifications or revisions of the outcomes or
services are necessary;
``(4) a statement of specific early intervention services
necessary to meet the unique needs of the infant or toddler and
the family, including the frequency, intensity, and method of
delivering services;
``(5) a statement of the natural environments in which
early intervention services shall appropriately be provided;
``(6) the projected dates for initiation of services and
the anticipated duration of such services;
``(7) the identification of the service coordinator from
the profession most immediately relevant to the infant's or
toddler's or family's needs (or who is otherwise qualified to
carry out all applicable responsibilities under this part) who
will be responsible for the implementation of the plan and
coordination with other agencies and persons; and
``(8) the steps to be taken to support the transition of
the toddler with a disability to preschool or other appropriate
services.
``(e) Parental Consent.--The contents of the individualized family
service plan shall be fully explained to the parents and informed
written consent from such parents shall be obtained prior to the
provision of early intervention services described in such plan. If
such parents do not provide such consent with respect to a particular
early intervention service, then the early intervention services to
which such consent is obtained shall be provided.
``SEC. 637. STATE APPLICATION AND ASSURANCES.
``(a) Application.--A State desiring to receive a grant under
section 633 shall submit an application to the Secretary at such time
and in such manner as the Secretary may reasonably require. Such
application shall contain--
``(1) a designation of the lead agency in the State that
will be responsible for the administration of funds provided
under section 633;
``(2) a designation of a person responsible for assigning
financial responsibility among appropriate agencies;
``(3) information demonstrating eligibility of the State
under section 634, including--
``(A) information demonstrating to the Secretary's
satisfaction that the State has in effect the statewide
system required by section 633; and
``(B) a description of services to be provided to
infants and toddlers with disabilities and their
families through the system;
``(4) a description of the uses for which funds will be
expended in accordance with this part;
``(5) a description of the procedure used to ensure that
resources are made available under this part for all geographic
areas within the State;
``(6) a description of State policies and procedures that
ensure that, prior to the adoption by the State of any other
policy or procedure necessary to meet the requirements of this
part, there are public hearings, adequate notice of the
hearings, and an opportunity for comment available to the
general public, including individuals with disabilities and
parents of infants and toddlers with disabilities;
``(7) a description of the policies and procedures to be
used--
``(A) to ensure a smooth transition for toddlers
receiving early intervention services under this part
to preschool or other appropriate services, including a
description of how--
``(i) the families of such toddlers will be
included in the transition plans required by
subparagraph (C); and
``(ii) the lead agency designated or
established under section 635(a) will--
``(I) notify the local educational
agency for the area in which such a
child resides that the child will
shortly reach the age of eligibility
for preschool services under part B, as
determined in accordance with State
law;
``(II) in the case of such a child
who may be eligible for such preschool
services, with the approval of the
family of the child, convene a
conference among the lead agency, the
family, and the local educational
agency at least 90 days (and at the
discretion of all such parties, up to 6
months) before the child is eligible
for the preschool services, to discuss
any such services that the child may
receive; and
``(III) in the case of such a child
who may not be eligible for such
preschool services, with the approval
of the family, make reasonable efforts
to convene a conference among the lead
agency, the family, and providers of
other appropriate services for children
who are not eligible for preschool
services under part B, to discuss the
appropriate services that the child may
receive;
``(B) to review the child's program options for the
period from the child's third birthday through the
remainder of the school year; and
``(C) to establish a transition plan; and
``(8) such other information and assurances as the
Secretary may reasonably require.
``(b) Assurances.--The application described in subsection (a)
shall contain the following:
``(1) A satisfactory assurance that the State will--
``(A) make such reports in such form and containing
such information as the Secretary may require to carry
out the Secretary's functions under this part; and
``(B) keep such records and afford such access
thereto as the Secretary may find necessary to assure
the correctness and verification of such reports and
proper disbursement of Federal funds under this part.
``(2) A satisfactory assurance that Federal funds made
available under section 633 will be used to supplement and
increase the level of State and local funds expended for
infants and toddlers with disabilities and their families under
this part and in no case to supplant such State and local
funds.
``(3) Such other information and assurances as the
Secretary may reasonably require by regulation.
``(c) Standard for Disapproval of Application.--The Secretary may
not disapprove such an application unless the Secretary determines,
after notice and opportunity for a hearing, that the application fails
to comply with the requirements of this section.
``(d) Subsequent State Application.--If a State has on file with
the Secretary a policy, procedure, or assurance that demonstrates that
the State meets a requirement of this section, including any policy or
procedure filed under part H (as in effect before the date of the
enactment of the IDEA Improvement Act of 1996), the Secretary shall
consider the State to have met the requirement for purposes of
receiving a grant under this part.
``(e) Modification of Application.--An application submitted by a
State in accordance with this section shall remain in effect until the
State submits to the Secretary such modifications as the State
determines necessary. This section shall apply to a modification of an
application to the same extent and in the same manner as this section
applies to the original application.
``SEC. 638. USES OF FUNDS.
``In addition to using funds provided under section 633 to maintain
and implement the statewide system required by such section, a State
may use such funds--
``(1) for direct early intervention services for infants
and toddlers with disabilities, and their families, under this
part that are not otherwise funded through other public or
private sources;
``(2) to expand and improve on services for infants and
toddlers and their families under this part that are otherwise
available; and
``(3) to provide a free appropriate public education, in
accordance with part B, to children with disabilities from
their third birthday to the beginning of the following school
year.
``SEC. 639. PROCEDURAL SAFEGUARDS.
``(a) Minimum Procedures.--The procedural safeguards required to be
included in a statewide system under section 635(a)(10) shall provide,
at a minimum, the following:
``(1) The timely administrative resolution of complaints by
parents. Any party aggrieved by the findings and decision
regarding an administrative complaint shall have the right to
bring a civil action with respect to the complaint in any State
court of competent jurisdiction or in a district court of the
United States without regard to the amount in controversy. In
any action brought under this paragraph, the court shall
receive the records of the administrative proceedings, shall
hear additional evidence at the request of a party, and, basing
its decision on the preponderance of the evidence, shall grant
such relief as the court determines is appropriate.
``(2) The right to confidentiality of personally
identifiable information, including the right of parents to
written notice of and written consent to the exchange of such
information among agencies consistent with Federal and State
law.
``(3) The right of the parents to determine whether they,
their infant or toddler, or other family members will accept or
decline any early intervention service under this part in
accordance with State law without jeopardizing other early
intervention services under this part.
``(4) The opportunity for parents to examine records
relating to assessment, screening, eligibility determinations,
and the development and implementation of the individualized
family service plan.
``(5) Procedures to protect the rights of the infant or
toddler whenever the parents of the child are not known or
cannot be found or the child is a ward of the State, including
the assignment of an individual (who shall not be an employee
of the State or any person, or any employee of a person,
providing early intervention services to the infant or toddler
or any family member of the infant or toddler) to act as a
surrogate for the parents.
``(6) Written prior notice to the parents of the infant or
toddler with a disability whenever the State agency or service
provider proposes to initiate or change or refuses to initiate
or change the identification, evaluation, placement, or the
provision of appropriate early intervention services to the
infant or toddler with a disability.
``(7) Procedures designed to assure that the notice
required by paragraph (6) fully informs the parents, in the
parents' native language, unless it clearly is not feasible to
do so, of all procedures available pursuant to this section.
``(8) The right of parents to use mediation in accordance
with section 615(e), except that--
``(A) any reference in such section to a State
educational agency shall be considered to be a
reference to a State's lead agency established or
designated under section 635(a)(8);
``(B) any reference in such section to a local
educational agency shall be considered to be a
reference to a local service provider or the State's
lead agency under this part, as the case may be; and
``(C) any reference in such section to the
provision of free appropriate public education to
children with disabilities shall be considered to be a
reference to the provision of appropriate early
intervention services to infants and toddlers with
disabilities.
``(b) Services During Pendency of Proceedings.--During the pendency
of any proceeding or action involving a complaint by the parents of an
infant or toddler with a disability, unless the State agency and the
parents otherwise agree, the infant or toddler shall continue to
receive the appropriate early intervention services currently being
provided or, if applying for initial services, shall receive the
services not in dispute.
``SEC. 640. PAYOR OF LAST RESORT.
``(a) Nonsubstitution.--Funds provided under section 643 may not be
used to satisfy a financial commitment for services which would have
been paid for from another public or private source but for the
enactment of this part, except that whenever considered necessary to
prevent a delay in the receipt of appropriate early intervention
services by an infant, toddler, or family in a timely fashion, funds
provided under section 643 may be used to pay the provider of services
pending reimbursement from the agency which has ultimate responsibility
for the payment.
``(b) Reduction of Other Benefits.--Nothing in this part shall be
construed to permit the State to reduce medical or other assistance
available or to alter eligibility under title V of the Social Security
Act (relating to maternal and child health) or title XIX of the Social
Security Act (relating to medicaid for infants or toddlers with
disabilities) within the State.
``SEC. 641. STATE INTERAGENCY COORDINATING COUNCIL.
``(a) Establishment.--
``(1) In general.--A State that desires to receive
financial assistance under this part shall establish a State
interagency coordinating council.
``(2) Appointment.--The council shall be appointed by the
Governor. In making appointments to the council, the Governor
shall ensure that the membership of the council reasonably
represents the population of the State.
``(3) Chairperson.--The Governor shall designate a member
of the council to serve as the chairperson of the Council, or
shall require the council to so designate such a member. Any
member of the council who is a representative of the lead
agency designated under section 635(b)(8) may not serve as the
chairperson of the council.
``(b) Composition.--
``(1) In general.--The council shall be composed as
follows:
``(A) Parents.--At least 20 percent of the members
shall be parents of infants or toddlers with
disabilities or children with disabilities aged 12 or
younger, with knowledge of, or experience with,
programs for infants and toddlers with disabilities. At
least one such member shall be a parent of an infant or
toddler with a disability or a child with a disability
aged 6 or younger.
``(B) Service providers.--At least 20 percent of
the members shall be public or private providers of
early intervention services.
``(C) State legislature.--At least one member shall
be from the State legislature.
``(D) Personnel preparation.--At least one member
shall be involved in personnel preparation.
``(E) Agency for early intervention services.--At
least one member shall be from each of the State
agencies involved in the provision of, or payment for,
early intervention services to infants and toddlers
with disabilities and their families and shall have
sufficient authority to engage in policy planning and
implementation on behalf of such agencies.
``(F) Agency for preschool services.--At least one
member shall be from the State educational agency
responsible for preschool services to children with
disabilities and shall have sufficient authority to
engage in policy planning and implementation on behalf
of such agency.
``(G) Agency for insurance.--At least one member
shall be from the agency responsible for the State
governance of insurance, especially in the area of
health insurance.
``(H) Head start agency.--A representative from a
Head Start agency or program in the State.
``(I) A representative from a State agency
responsible for child care.
``(2) Other members.--The council may include other members
selected by the Governor, including a representative from the
Bureau of Indian Affairs, or where there is no BIA operated or
funded school, from the Indian Health Service or the tribe/
tribal council.
``(c) Meetings.--The council shall meet at least quarterly and in
such places as it deems necessary. The meetings shall be publicly
announced, and, to the extent appropriate, open and accessible to the
general public.
``(d) Management Authority.--Subject to the approval of the
Governor, the council may prepare and approve a budget using funds
under this part to conduct hearings and forums, to reimburse members of
the council for reasonable and necessary expenses for attending council
meetings and performing council duties (including child care for parent
representatives), to pay compensation to a member of the council if
such member is not employed or must forfeit wages from other employment
when performing official council business, to hire staff, and to obtain
the services of such professional, technical, and clerical personnel as
may be necessary to carry out its functions under this part.
``(e) Functions of Council.--
``(1) Duties.--The council shall--
``(A) advise and assist the lead agency designated
or established under section 635(b)(8) in the
performance of the responsibilities set out in such
section, particularly the identification of the sources
of fiscal and other support for services for early
intervention programs, assignment of financial
responsibility to the appropriate agency, and the
promotion of the interagency agreements;
``(B) advise and assist the lead agency in the
preparation of applications and amendments thereto;
``(C) advise and assist the State educational
agency regarding the transition of toddlers with
disabilities to preschool and other appropriate
services; and
``(D) prepare and submit an annual report to the
Governor and to the Secretary on the status of early
intervention programs for infants and toddlers with
disabilities and their families operated within the
State.
``(2) Authorized activity.--The council may advise and
assist the lead agency and the State educational agency
regarding the provision of appropriate services for children
aged birth to 5, inclusive.
``(f) Conflict of Interest.--No member of the council shall cast a
vote on any matter which would provide direct financial benefit to that
member or otherwise give the appearance of a conflict of interest under
State law.
``SEC. 642. FEDERAL ADMINISTRATION.
``Sections 616, 617, 618, and 620 shall, to the extent not
inconsistent with this part, apply to the program authorized by this
part, except that--
``(1) any reference in such sections to a State educational
agency shall be considered to be a reference to a State's lead
agency established or designated under section 635(a)(8);
``(2) any reference in such sections to a local educational
agency, educational service agency, or a State agency shall be
considered to be a reference to an early intervention service
provider under this part; and
``(3) any reference to the education of children with
disabilities or the education of all children with disabilities
shall be considered to be a reference to the provision of
appropriate early intervention services to infants and toddlers
with disabilities.
``SEC. 643. ALLOCATION OF FUNDS.
``(a) Reservation of Funds for Territories.--
``(1) In general.--From the sums appropriated to carry out
this part for any fiscal year, the Secretary may reserve up to
one percent for payments to Guam, American Samoa, the Virgin
Islands, and the Commonwealth of the Northern Mariana Islands
in accordance with their respective needs.
``(2) Consolidation of funds.--The provisions of Public Law
95-134, permitting the consolidation of grants to the
territories, shall not apply to funds those areas receive under
this part.
``(b) Payments to Indians.--
``(1) In general.--The Secretary shall, subject to this
subsection, make payments to the Secretary of the Interior to
be distributed to tribes, tribal organizations (as defined
under section 4 of the Indian Self-Determination and Education
Assistance Act), or consortia of the above entities for the
coordination of assistance in the provision of early
intervention services by the States to infants and toddlers
with disabilities and their families on reservations served by
elementary and secondary schools for Indian children operated
or funded by the Department of the Interior. The amount of such
payment for any fiscal year shall be 1.25 percent of the
aggregate of the amount available to all States under this part
for such fiscal year.
``(2) Allocation.--For each fiscal year, the Secretary of
the Interior shall distribute the entire payment received under
paragraph (1) by providing to each tribe, tribal organization,
or consortium an amount based on the number of infants and
toddlers residing on the reservation as determined annually
divided by the total of such children served by all tribes,
tribal organizations, or consortia.
``(3) Information.--To receive a payment under this
paragraph, the tribe, tribal organization, or consortia shall
submit such information to the Secretary of the Interior as is
needed to determine the amounts to be allocated under paragraph
(2).
``(4) Use of funds.--The funds received by a tribe, tribal
organization, or consortia shall be used to assist States in
child find, screening, and other procedures for the early
identification of Indian children under 3 years of age and for
parent training. Such funds may also be used to provide early
intervention services in accordance with this part. Such
activities may be carried out directly or through contracts or
cooperative agreements with the BIA, local educational
agencies, and other public or private nonprofit organizations.
The tribe, tribal organization, or consortia is encouraged to
involve Indian parents in the development and implementation of
these activities. The above entities shall, as appropriate, make
referrals to local, State, or Federal entities for the provision of
services or further diagnosis.
``(5) Reports.--To be eligible to receive a grant under
paragraph (2), a tribe, tribal organization, or consortia shall
make a biennial report to the Secretary of the Interior of
activities undertaken under this subsection, including the
number of contracts and cooperative agreements entered into, the number
of children contacted and receiving services for each year, and the
estimated number of children needing services during the 2 years
following the year in which the report is made. The Secretary of the
Interior shall include a summary of this information on a biennial
basis to the Secretary of Education along with such other information
as required under section 611(f)(3)(D). The Secretary of Education may
require any additional information from the Secretary of the Interior.
``(6) Prohibited uses of funds.--None of the funds under
this subsection may be used by the Secretary of the Interior
for administrative purposes, including child count, and the
provision of technical assistance.
``(c) State Allotments.--
``(1) In general.--Except as provided in paragraphs (2),
(3), and (4), from the funds remaining for each fiscal year
after the reservation and payments under subsections (a) and
(b), the Secretary shall first allot to each State an amount
that bears the same ratio to the amount of such remainder as
the number of infants and toddlers in the State bears to the
number of infants and toddlers in all States.
``(2) Minimum allotments.--Except as provided in paragraphs
(3) and (4), no State shall receive an amount under this
section for any fiscal year that is less than the greatest of--
``(A) one-half of one percent of the remaining
amount described in paragraph (1); or
``(B) $500,000.
``(3) Special rule for 1997 through 1999.--
``(A) In general.--Except as provided in paragraph
(4), no State may receive an amount under this section
for any of the fiscal years 1997 through 1999 that is
less than the sum of the amount such State received for
fiscal year 1994 under--
``(i) part H (as in effect on the day
before the date of the enactment of the IDEA
Improvement Act of 1996); and
``(ii) subpart 2 of part D of chapter 1 of
title I of the Elementary and Secondary
Education Act of 1965 (as in effect on the day
before the date of the enactment of the
Improving America's Schools Act of 1994) for
children with disabilities under 3 years of
age.
``(B) Exception.--If, for fiscal year 1998 or 1999,
the number of infants and toddlers in a State, as
determined under paragraph (1), is less than the number
of infants and toddlers so determined for fiscal year
1994, the amount determined under subparagraph (A) for
the State shall be reduced by the same percentage by
which the number of such infants and toddlers so
declined.
``(4) Ratable reduction.--
``(A) In general.--If the sums made available under
this part for any fiscal year are insufficient to pay
the full amounts that all States are eligible to
receive under this subsection for such year, the
Secretary shall ratably reduce the allocations to such
States for such year.
``(B) Additional funds.--If additional funds become
available for making payments under this subsection for
a fiscal year, allocations that were reduced under
subparagraph (A) shall be increased on the same basis
as such allocations were reduced.
``(5) Definitions.--For the purpose of this subsection--
``(A) the terms `infants' and `toddlers' mean
children under 3 years of age; and
``(B) the term `State' means each of the 50 States,
the District of Columbia, and the Commonwealth of
Puerto Rico.
``(d) Reallotment of Funds.--If a State elects not to receive its
allotment under subsection (c), the Secretary shall reallot, among the
remaining States, amounts from such State in accordance with such
subsection.
``SEC. 644. AUTHORIZATION OF APPROPRIATIONS.
``For the purpose of carrying out this part, there are authorized
to be appropriated such sums as may be necessary for each of the fiscal
years 1997 through 2001.
``PART D--NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF CHILDREN WITH
DISABILITIES
``SEC. 651. PURPOSE OF PART.
``The purpose of this part is to support national, State, and local
activities aimed at improving educational, early intervention, and
transitional services and opportunities for children with disabilities.
``SEC. 652. ELIGIBILITY FOR FINANCIAL ASSISTANCE.
``No State, State educational agency, local educational agency,
educational service agency, or other public institution or agency may
receive a grant, contract, or cooperative agreement under this part
which relates exclusively to programs, projects, and activities for
children aged 3 to 5, inclusive, unless the State, or, in the case of
an agency or institution, the State in which the agency or institution
is located, is eligible to receive a grant under section 619.
``Subpart 1--General Provisions and National Research and Improvement
Activities
``SEC. 661. COMPREHENSIVE PLAN.
``(a) In General.--The Secretary shall develop and implement a
comprehensive plan for ongoing activities conducted by the Secretary
under this part.
``(b) Use of Knowledge in Developing Plan.--To the maximum extent
appropriate, the Secretary shall ensure that the plan is based upon the
knowledge gained from research on practices that have been proven
effective in improving the achievement of children with disabilities.
``(c) Consultation.--In developing the plan, the Secretary shall
consult the following persons:
``(1) Individuals with disabilities.
``(2) Parents of children with disabilities.
``(3) Representatives of State and local educational
agencies and educational service agencies.
``(4) Private schools.
``(5) Institutions of higher education.
``(6) Other Federal agencies.
``(7) The National Council on Disability.
``(8) National organizations with an interest in, and
expertise in, providing services to children with disabilities
and their families.
``(9) Any other professionals determined appropriate by the
Secretary.
``(d) Deadline.--The plan shall be developed not later than the
date that is 12 months after the date of the enactment of the IDEA
Improvement Act of 1996.
``SEC. 662. PRIORITIES.
``(a) In General.--In making awards under this part, the Secretary
may, without regard to the rule making procedures under section 553 of
title 5, United States Code, limit such awards to, or otherwise give
priority to--
``(1) projects that address the improvement of the academic
performance of children with disabilities;
``(2) projects that address one or more--
``(A) age ranges;
``(B) disabilities;
``(C) grades in school;
``(D) types of educational placements or early
intervention environments;
``(E) types of services; or
``(F) content areas such as reading;
``(3) projects that address the needs of children based on
the severity of their disability;
``(4) projects that address the needs of--
``(A) low-achieving students;
``(B) underserved populations;
``(C) children from low-income families;
``(D) children with limited English proficiency;
``(E) unserved and underserved areas;
``(F) particular types of geographic areas, such as
inner-city or rural areas; or
``(G) institutionalized children in juvenile and
adult correctional institutions;
``(5) any activity that is expressly authorized in this
title;
``(6) a large-scale longitudinal study designed to provide
information on the long-term impact of education agency
disciplinary procedures on children with disabilities;
``(7) research and development projects including--
``(A) projects that advance knowledge about--
``(i) teaching and learning practices, and
assessment techniques, instruments, and
strategies, including behavioral strategies,
that lead to improved results for children with
disabilities;
``(ii) the developmental and learning
characteristics of children with disabilities
in a manner that will improve the design and
effectiveness of interventions and instruction;
or
``(iii) the coordination of education with
health and social services;
``(B) large-scale longitudinal studies designed to
produce information on the long-term impact of early
intervention and education on results for individuals
with disabilities;
``(C) model demonstration projects to apply and
test research findings in typical service settings to
determine the usability, effectiveness, and general
applicability of such research findings in such areas
as improving instructional methods, curricula, and
tools such as textbooks, media, and other materials;
and
``(D) projects which apply research and other
knowledge to improve educational results for children
with disabilities by--
``(i) synthesizing useful research and
educational products;
``(ii) ensuring that such research and
products are in appropriate formats for
distribution to administrators, teachers,
parents, and individuals with disabilities; or
``(iii) making such research and products
available through libraries, electronic
networks, parent training projects, and other
information sources, including the National
Information Dissemination System under part D
of title IX of Public Law 103-227;
``(8) projects which provide technical assistance to--
``(A) States--
``(i) to link States to other technical
assistance resources, including special and
general education resources; or
``(ii) in gaining access to information,
including information on research and best
practices; or
``(B) State educational agencies, State lead
agencies serving infants and toddlers with disabilities
under part C, and other organizations and agencies that
play a critical role in providing for the participation
of children with disabilities in State and local
assessments;
``(9) activities to produce, and promote the use of,
knowledge to address the special needs of children who have a
high likelihood of needing special education and related
services in order to reduce, through early intervention, the
need for special education services later in life;
``(10) educational media activities including--
``(A) through September 30, 1998, video
description, open captioning, or closed captioning;
``(B) video description, open captioning, or closed
captioning of educational, news, and informational
materials;
``(C) through September 30, 1998, distribution of
captioned and described materials and videos;
``(D) distribution of captioned and described
educational, news, and informational materials and
videos; and
``(E) recording free educational materials,
including textbooks, for visually impaired and print-
disabled students in elementary, secondary, post-
secondary, and graduate schools; and
``(11) projects to assist institutions of higher education
in appropriately serving students with disabilities, including
deaf students.
``(b) Definition.--As used in this section, the term `low-incidence
disability' means--
``(1) a visual impairment, a hearing impairment, or
simultaneous visual and hearing impairments;
``(2) a significant cognitive impairment; or
``(3) any impairment for which a small number of personnel,
with highly specialized skills and knowledge, are needed
nationwide in order for all children with disabilities who have
the impairment to receive early intervention services or a free
appropriate public education.
``(c) Report.--If the Secretary awards a grant, contract, or
cooperative agreement under this part prior to February 1, 1998 with
respect to an educational media activity described in subparagraph (A)
or (C) of subsection (a)(10), the Secretary, after consulting with the
chairman of the Federal Communications Commission, shall submit to the
Committee on Economic and Educational Opportunities of the House of
Representatives and the Committee on Labor and Human Resources of the
Senate, not later than April 15, 1998, a report on the progress that
the Federal Communications Commission is making towards meeting the
requirements imposed on the Commission under section 713 of the
Communications Act of 1934 (47 U.S.C. 613).
``SEC. 663. PEER REVIEW.
``(a) In General.--The Secretary shall use a panel of experts who
are competent, by virtue of their training, expertise, or experience,
to evaluate an application under this part that requests more than
$75,000 in Federal financial assistance.
``(b) Composition of Panel.--A majority of a panel described in
subsection (a) shall be composed of individuals who are not employees
of the Federal Government.
``(c) Payment of Fees and Expenses of Certain Members.--The
Secretary may use available funds appropriated to carry out this part
to pay the expenses and fees of panel members who are not employees of
the Federal Government.
``SEC. 664. ELIGIBLE APPLICANTS.
``Except as otherwise provided in this part, the persons who, and
the agencies that, may apply for receipt of grants, contracts, or
cooperative agreements under this part are the following:
``(1) Institutions of higher education.
``(2) State educational agencies.
``(3) Local educational agencies.
``(4) Educational service agencies.
``(5) Other public agencies.
``(6) Private nonprofit organizations.
``(7) Indian tribes and tribal organizations (as defined
under section 4 of the Indian Self-Determination and Education
Assistance Act).
``(8) For-profit organizations.
``SEC. 665. APPLICANT AND RECIPIENT RESPONSIBILITIES.
``(a) General Requirements on Applicants and Recipients.--The
Secretary may not make a grant to, or enter into a contract or
cooperative agreement with, a person or agency under this part unless--
``(1) the person or agency involves individuals with
disabilities, and parents of children with disabilities, in
planning, implementing, and evaluating activities conducted
under the grant, contract, or agreement;
``(2) the person or agency, where appropriate, evaluates
the potential for replication and widespread adoption of such
activities; and
``(3) the person or agency prepares their findings and work
product in a format useful for a specific audience specified by
the Secretary, such as parents, administrators, teachers, early
intervention personnel, related services personnel, or
individuals with disabilities.
``(b) Additional Requirements Imposed at Discretion of Secretary.--
The Secretary may require that a person who, or agency that, is awarded
a grant, contract, or cooperative agreement under this part--
``(1) assume a portion of the cost of carrying out the
grant, contract, or agreement;
``(2) disseminate the findings and work product of the
person or agency; and
``(3) collaborate with other such persons and agencies.
``SEC. 666. INDIRECT COSTS.
``The Secretary--
``(1) may not permit any recipient of Federal funds under
this part to use more than 25 percent of such funds for
indirect costs; and
``(2) may further limit the extent to which any such
recipient may use such funds for such costs.
``SEC. 667. PROGRAM EVALUATION.
``The Secretary may use funds appropriated to carry out this part
to evaluate any activity carried out under this part.
``SEC. 668. NATIONAL ASSESSMENT.
``(a) Purpose of Assessment.--The Secretary shall carry out a
national assessment of activities carried out with Federal funds under
this title in order--
``(1) to determine the effectiveness of the title in
achieving the purposes of the title;
``(2) to provide information to the President, the
Congress, the States, local educational agencies, and the
public on how to implement the title more effectively; and
``(3) to provide the President and the Congress with
information that will be useful in developing legislation to
achieve the purposes of this title more effectively.
``(b) Consultation.--The Secretary shall plan, review, and conduct
the national assessment under this section in consultation with
researchers, State practitioners, local practitioners, parents of
children with disabilities, individuals with disabilities, and other
appropriate individuals.
``(c) Scope of Assessment.--The national assessment shall examine
how well schools, local educational agencies, States, other recipients
of assistance under this title, and the Secretary are achieving the
purposes of this title, including--
``(1) the performance of children with disabilities in
general scholastic activities and assessments as compared to
nondisabled children;
``(2) providing for the participation of children with
disabilities in the general education curriculum;
``(3) helping children with disabilities make successful
transitions from--
``(A) early intervention services to preschool
education;
``(B) preschool education to elementary school; and
``(C) secondary school to adult life;
``(4) placing and serving children with disabilities,
including children from underserved populations, in the least
restrictive environment appropriate;
``(5) preventing children with disabilities, especially
children with emotional disturbances and specific learning
disabilities, from dropping out of school;
``(6) assessing the use of disciplinary measures, and the
effect of such use, with children with disabilities as compared
to nondisabled children;
``(7) coordinating services provided under this title with
each other, with other educational and pupil services
(including preschool services), and with health and social
services funded from other sources;
``(8) addressing the participation of parents of children
with disabilities in the education of their children; and
``(9) resolving disagreements between education personnel
and parents through activities such as mediation.
``(d) Interim and Final Reports.--The Secretary shall submit to the
President and the Congress--
``(1) an interim report that summarizes the preliminary
findings of the assessment not later than October 1, 1998; and
``(2) a final report of the findings of the assessment not
later than October 1, 2000.
``SEC. 669. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out this subpart such sums as may be necessary for each of the fiscal
years 1997 through 2001.
``(b) Minimum Amounts.--Subject to subsection (c), the Secretary
shall ensure that, for each fiscal year, at least the following amounts
are provided under this part to address the following needs:
``(1) $12,832,000 to address the educational, related
services, transitional, and early intervention needs of
children with deaf-blindness.
``(2) $4,000,000 to address the postsecondary, vocational,
technical, continuing, and adult education needs of individuals
with deafness.
``(c) Ratable Reduction.--If the total amount appropriated to carry
out this part for any fiscal year is less than $135,600,000, the
amounts listed in subsection (b) shall be ratably reduced.
``Subpart 2--Professional Development
``SEC. 671. PURPOSE.
``The purpose of this subpart is to help ensure that--
``(1) personnel responsible for serving children with
disabilities, including general and special education
personnel, related services personnel, and early intervention
personnel, have the knowledge and skills necessary to help such
children--
``(A) meet developmental goals and, to the maximum
extent possible, those challenging expectations that
have been established for all children; and
``(B) be prepared to lead productive, independent
adult lives to the maximum extent possible;
``(2) there are adequate numbers of such personnel to meet
the needs of children with disabilities; and
``(3) the skills and knowledge of personnel responsible for
serving children with disabilities reflect the best practices,
as determined through research and experience, particularly
with respect to the inclusion of children with disabilities in
the regular education environment.
``SEC. 672. FINDING.
``The Congress finds that the conditions noted in paragraphs (7)
through (10) of section 601(c) can be greatly improved by providing
opportunities for the full participation of minorities through the
implementation of the following recommendations:
``(1) Implementation of a policy to mobilize the Nation's
resources to prepare minorities for careers in special
education and related services.
``(2) Focusing such policy on--
``(A) the recruitment of minorities into teaching;
and
``(B) financially assisting Historically Black
Colleges and Universities and other institutions of
higher education (whose minority student enrollment is
at least 25 percent) to prepare students for special
education and related service careers.
``SEC. 673. NATIONAL ACTIVITIES.
``(a) Program Authorized.--The Secretary may make grants to, and
enter into contracts and cooperative agreements with, eligible entities
to support activities of national significance that--
``(1) have broad applicability; and
``(2) will help ensure that the purpose of this subpart is
met.
``(b) Authorized Activities.--In carrying out this section, the
Secretary may support any activity that is consistent with subsection
(a), including--
``(1) the development, evaluation, demonstration, or
dissemination of effective personnel preparation practices for
personnel to work with children with disabilities;
``(2) promoting the transferability of licensure and
certification of teachers and administrators among State and
local jurisdictions;
``(3) developing and disseminating models that prepare
teachers with strategies, including behavioral management
techniques, for addressing the conduct of children with
disabilities that impedes their learning and that of others in
the classroom; and
``(4) supporting Historically Black Colleges and
Universities and institutions of higher education with minority
enrollments of at least 25 percent for the purpose of preparing
personnel.
``SEC. 674. PROFESSIONAL DEVELOPMENT FOR PERSONNEL SERVING LOW-
INCIDENCE POPULATIONS.
``(a) Program Authorized.--The Secretary may make grants to, and
enter into contracts and cooperative agreements with, eligible entities
to meet the purpose of this subpart by supporting preparation for
personnel who will provide educational and related services to children
with low-incidence disabilities and personnel who will provide early
intervention services to infants and toddlers with disabilities.
``(b) Authorized Activities.--
``(1) In general.--Individuals who may be prepared pursuant
to this section include personnel who--
``(A) are currently prepared in the fields of
educational, related, or early intervention services;
and
``(B) are studying--
``(i) to obtain degrees, certification,
licensure, or endorsements in one or more of
such fields; or
``(ii) to meet competency requirements in
one or more of such fields.
``(2) Scholarships.--The Secretary may include funds for
scholarships, with necessary stipends and allowances, in awards
under this section.
``(c) Applications.--Any application for assistance under this
section shall propose to provide preparation that addresses a
significant need, as shown by letters from one or more States stating
that the State--
``(1) intends to accept successful completion of the
proposed personnel preparation as meeting State personnel
standards for serving children with low-incidence disabilities,
or for serving infants and toddlers with disabilities; and
``(2) needs personnel in the area or areas in which the
applicant proposes to provide preparation, as identified in the
State's comprehensive system of personnel development under
part B or C, or in the State's State improvement plan under
subpart 3.
``(d) Definition.--For purposes of this section, the term `low-
incidence disability' has the meaning given such term in section
662(b).
``SEC. 675. LEADERSHIP PERSONNEL.
``(a) Program Authorized.--The Secretary may make grants to, and
enter into contracts and cooperative agreements with, eligible entities
to meet the purpose of this subpart by preparing educational, related
service, and early intervention leadership personnel (including
teacher-preparation faculty, administrators, researchers, supervisors,
and principals) so that they are prepared to help children with
disabilities--
``(1) meet developmental goals and, to the maximum extent
possible, those challenging expectations that have been
established for all children; and
``(2) be prepared to lead productive, independent adult
lives to the maximum extent possible.
``(b) Authorized Activities.--
``(1) In general.--In carrying out this section, the
Secretary may support any activity that is consistent with
subsection (a), including--
``(A) preparation of personnel at the advanced
graduate, doctoral, or post-doctoral levels; and
``(B) professional development of leadership
personnel.
``(2) Scholarships.--The Secretary may include funds for
scholarships, with necessary stipends and allowances, in awards
under this section.
``(c) Preferences.--In making awards under this section, the
Secretary shall give preference to projects at institutions of higher
education that have successfully integrated the professional
development of general and special education personnel.
``SEC. 676. SERVICE OBLIGATION.
``Each application for funds under section 674 or 675 shall include
an assurance that the applicant will ensure that individuals who are
prepared under the proposed project will subsequently perform work
related to their preparation or repay all or part of the cost of such
preparation.
``SEC. 677. OUTREACH.
``(a) Plan for Outreach Services.--The Secretary shall develop a
plan for providing outreach services to the entities and populations
described in subsection (b) in order to increase the participation of
such entities and populations in competitions for grants, contracts,
and cooperative agreements under this subpart.
``(b) Entities and Populations Described.--The entities and
populations referred to in subsection (a) are--
``(1) Historically Black Colleges and Universities and
other institutions of higher education whose minority student
enrollment is at least 25 percent;
``(2) eligible institutions, as defined in section 312 of
the Higher Education Act of 1965;
``(3) nonprofit and for-profit agencies at least 51 percent
owned or controlled by one or more minority individuals; and
``(4) underrepresented populations.
``(c) Funding.--For the purpose of implementing the plan required
under subsection (a), the Secretary shall, for each of the fiscal years
1997 through 2002, expend 1 percent of the funds appropriated for the
fiscal year involved for carrying out this subpart.
``(d) Diligence.--The Secretary shall exercise the utmost
authority, resourcefulness, and diligence of the Secretary to meet the
requirements of this section.
``(e) Report.--Not later than January 31 of each year, beginning
with fiscal year 1997 and ending with fiscal year 2002, the Secretary
shall submit to the Congress a final report on the progress toward
meeting the goals of this section during the preceding fiscal year. The
report shall include--
``(1) a full explanation of any progress toward meeting the
goals of this section; and
``(2) a plan to meet the goals, if necessary.
``(f) Underrepresented Populations Defined.--For purposes of this
section, the term `underrepresented populations' means populations such
as minorities, the poor, individuals with limited English proficiency,
and individuals with disabilities.
``Subpart 3--State Program Improvement Grants for Children with
Disabilities
``SEC. 681. PURPOSE.
``The purpose of this subpart is to assist States in reforming and
improving their systems for providing educational and early
intervention services, particularly their systems for professional
development, to improve the achievement of children with disabilities.
``SEC. 682. ELIGIBILITY AND COLLABORATIVE PROCESS.
``(a) Eligible Applicants.--A State may apply for a grant under
this subpart for a grant period that is not less than one year, but is
not greater than 4 years.
``(b) Certification That Collaborative Process Has Been Used.--A
State that desires to receive a grant under this subpart shall certify
to the Secretary that a collaborative process with persons described in
subsection (c) has been used in developing the State improvement plan
described in section 683.
``(c) Collaborative Process Participants.--
``(1) Required participants.--The collaborative process
referred to in subsection (b) is a State process for making
decisions which includes as participants, at a minimum, the
Governor of the State and representatives, appointed by such
Governor, of--
``(A) parents of children with disabilities;
``(B) parents of nondisabled children;
``(C) individuals with disabilities;
``(D) organizations representing individuals with
disabilities and their parents;
``(E) community-based and other nonprofit
organizations related to the education and employment
of individuals with disabilities;
``(F) the lead State agency official or officials
for part C;
``(G) local educational agencies;
``(H) general and special education teachers;
``(I) the State educational agency;
``(J) the State advisory panel established under
part B; and
``(K) the State interagency coordinating council
established under part C.
``(2) Optional participants.--The collaborative process may
include, at the Governor's discretion, representatives,
appointed by the Governor, of--
``(A) individuals knowledgeable about vocational
education;
``(B) the State agency for higher education;
``(C) institutions of higher education;
``(D) schools of education;
``(E) the State vocational rehabilitation agency;
``(F) public agencies with jurisdiction in the
areas of health, mental health, social services, and
juvenile justice; and
``(G) any other individuals designated by the
Governor.
``SEC. 683. STATE IMPROVEMENT PLANS.
``(a) In General.--A State that desires to receive a grant under
this subpart shall submit to the Secretary a State improvement plan
that is integrated, to the maximum extent possible, with State plans
under the Elementary and Secondary Education Act of 1965 and the
Rehabilitation Act of 1973, as appropriate.
``(b) Determining Child and Program Needs.--
``(1) In general.--Each State improvement plan shall
identify those critical aspects of early intervention, general
education, and special education programs (including
professional development, based on an assessment of State and
local needs) that must be improved to enable children with
disabilities to meet the goals established by the State under
section 612(a)(14).
``(2) Required analyses.--To meet the requirement of
paragraph (1), the State improvement plan shall include at
least--
``(A) an analysis of all information, reasonably
available to the State, on the performance of children
with disabilities in the State, including--
``(i) their performance on State
assessments and other performance indicators
established for all children, including drop-
out rates and graduation rates;
``(ii) their participation in postsecondary
education and employment; and
``(iii) how their performance on the
assessments and indicators described in clause
(i) compares to that of non-disabled children;
``(B) an analysis of State and local needs for
professional development for personnel to serve
children with disabilities that includes, at a minimum,
relevant information on current and anticipated
personnel shortages, and on the extent of certification
or retraining necessary to eliminate such shortages,
that is based, to the maximum extent possible, on
existing assessments of personnel needs; and
``(C) a summary of the information and analysis
provided by the State to the Secretary under parts B
and C on the effectiveness of the State's systems of
early intervention, special education, and general
education in meeting the needs of children with
disabilities.
``(c) Improvement Strategies.--Each State improvement plan shall--
``(1) describe the strategies the State will use to address
the needs identified under subsection (b)(1), including--
``(A) how it will hold school districts and schools
accountable for educational progress of children with
disabilities;
``(B) how it will provide technical assistance to
school districts and schools to improve results for
children with disabilities;
``(C) how it will address the identified needs for
in-service and pre-service preparation to ensure that
all personnel who work with children with disabilities
(including both professional and paraprofessional
personnel who provide early intervention services,
special education, general education, or related services) have the
skills and knowledge necessary to meet the needs of children with
disabilities, including a description of how--
``(i) the State will prepare general
education and special education personnel with
the content knowledge and collaborative skills
needed to meet the needs of children with
disabilities, including how the State will work
with other States on common certification
criteria;
``(ii) the State will prepare professionals
and paraprofessionals in the area of early
intervention with the content knowledge and
collaborative skills needed to meet the needs
of infants and toddlers with disabilities;
``(iii) the State will work with
institutions of higher education and other
entities that prepare (on both a pre-service
and an in-service basis) personnel who work
with children with disabilities to ensure that
such institutions and entities develop the
capacity to support professional development
programs which reflect actual education
practices and techniques;
``(iv) the State's requirements for
licensure of teachers and administrators,
including certification and recertification,
will be modified to support an adequate supply
of personnel with the necessary skills and
knowledge (including, where appropriate,
strategies for developing reciprocal
certification agreements and common
certification requirements with other States);
and
``(v) the State will work to develop
collaborative agreements with other States for
the joint support and development of programs
to prepare personnel for which there is not
sufficient demand within a single State to
justify support or development of such a
program of preparation;
``(D) how it will work in collaboration with other
States, particularly neighboring States, to address the
lack of uniformity and reciprocity in the credentialing
of teachers and other personnel;
``(E) strategies that will address systemic
problems identified in Federal compliance reviews,
including shortages of qualified personnel; and
``(F) how the State will assess, on a regular
basis, the extent to which the strategies implemented
under this subpart have been effective; and
``(2) describe how the improvement strategies under
paragraph (1) will be coordinated with public and private
sector resources.
``(d) Reporting Procedures.--Each State that receives a grant under
this subpart shall submit performance reports to the Secretary pursuant
to a schedule to be determined by the Secretary, but not more
frequently that annually.
``(e) Plan Approval.--The Secretary shall approve a State
improvement plan under this section if it--
``(1) meets the requirements of this part;
``(2) has been developed in accordance with the
requirements of section 682; and
``(3) in the opinion of the Secretary, has a reasonable
chance of achieving the purposes of the grant.
``(f) Plan Amendments.--
``(1) Modifications made by state.--Subject to paragraph
(2), a plan submitted by a State in accordance with this
section shall remain in effect until the State submits to the
Secretary such modifications as the State determines necessary. This
section shall apply to a modification to a plan to the same extent and
in the same manner as this section applies to the original plan.
``(2) Modifications required by secretary.--The Secretary
may require a State to amend its State improvement plan at any
time as a result of the Secretary's compliance reviews under
parts B and C. The Secretary may not provide further funding
under this subpart to the State until such amendments are made.
``SEC. 684. USE OF FUNDS.
``(a) In General.--A State that receives a grant under this subpart
may use the grant to carry out any activities that are described in the
State improvement plan and that are consistent with the purpose of this
subpart. Such activities may include the awarding of subgrants, but
only if the subgrants are made to local educational agencies. Any such
local educational agency may award subgrants to any person. Such
activities may also include the awarding of contracts to appropriate
entities.
``(b) Use of Funds for Professional Development.--A State that
receives a grant under this subpart shall use not less than 75 percent
of the funds it receives under the grant for any fiscal year to ensure
that there is a sufficient supply of personnel who have the skills and
knowledge necessary to enable children with disabilities to meet
developmental goals and to meet the needs of such children, including
working with other States on common certification criteria.
``(c) Grants to Territories.--The provisions of Public Law 95-134,
permitting the consolidation of grants to the territories, shall not
apply to funds received under this subpart.
``SEC. 685. MINIMUM STATE ALLOTMENTS.
``A State that receives a grant under this subpart shall receive an
amount that is--
``(1) not less than $200,000, in the case of the 50 States,
the District of Columbia, and the Commonwealth of Puerto Rico;
and
``(2) not less than $40,000, in the case of a territory.
``SEC. 686. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this subpart
such sums as may be necessary for each of the fiscal years 1997 through
2001.
``Subpart 4--Parent Training
``SEC. 691. GRANTS FOR PARENT TRAINING AND INFORMATION CENTERS.
``(a) Program Authorized.--The Secretary may make grants to, and
enter into contracts and cooperative agreements with, parent
organizations to support parent training and information centers to
carry out activities under this subpart.
``(b) Required Activities.--A parent training and information
center that receives assistance under this section shall--
``(1) assist parents to understand the availability of, and
how effectively to use, procedural safeguards under this title,
including the use of alternative methods of dispute resolution,
such as mediation;
``(2) serve the parents of children with the full range of
disabilities; and
``(3) annually report to the Secretary on--
``(A) the number of parents to whom it provided
information and training in the most recently concluded
fiscal year; and
``(B) the effectiveness of strategies used to reach
and serve parents of children with disabilities,
including underserved parents of children with
disabilities.
``(c) Optional Activities.--A parent training and information
center that receives assistance under this section may--
``(1) provide information to teachers and other
professionals who provide special education and related
services to children with disabilities;
``(2) assist students with disabilities to understand their
rights and responsibilities under section 615(j) on reaching
the age of majority; and
``(3) establish cooperative partnerships with parent
organizations, and other organizations assisting families of
children with disabilities, in the community.
``(d) Application Requirements.--Each application for assistance
under this section shall identify with specificity the special efforts
that the applicant will undertake to--
``(1) ensure that the needs for training and information of
parents of underserved children with disabilities in the area
to be served are effectively met; and
``(2) work with community-based organizations.
``(e) Distribution of Funds.--
``(1) Initial awards.--
``(A) In general.--The Secretary shall make at
least one award to a parent organization in each State,
unless the Secretary does not receive an application
from such an organization in each State of sufficient
quality to warrant approval.
``(B) Selection requirement.--The Secretary shall
select among applications submitted by parent
organizations in a State in a manner that ensures the
most effective assistance to parents, including parents
in urban and rural areas, in the State.
``(2) Additional awards.--
``(A) In general.--The Secretary may make
additional awards to community-based parent
organizations in each State.
``(B) Selection requirement.--The Secretary may
make additional awards in a manner that ensures that
parents of children with disabilities in low-income,
high-density, and rural areas have access to parent
training and information centers that provide
appropriate training and information.
``SEC. 692. TECHNICAL ASSISTANCE FOR PARENT TRAINING AND INFORMATION
CENTERS.
``(a) Program Authorized.--The Secretary may provide technical
assistance for developing, assisting, and coordinating parent training
and information programs carried out by parent training and information
centers receiving assistance under section 691.
``(b) Authorized Activities.--The Secretary may provide technical
assistance to a parent training and information center under this
section in areas such as--
``(1) effective coordination of parent training efforts;
``(2) dissemination of information;
``(3) evaluation by the center of itself;
``(4) promotion of the use of technology, including
assistive technology devices and assistive technology services;
``(5) reaching underserved populations;
``(6) including children with disabilities in general
education programs;
``(7) facilitation of transitions from--
``(A) early intervention services to preschool;
``(B) preschool to school; and
``(C) secondary school to postsecondary
environments; and
``(8) promotion of alternative methods of dispute
resolution.
``SEC. 693. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this subpart
such sums as may be necessary for each of the fiscal years 1997 through
2001.''.
TITLE II--MISCELLANEOUS PROVISIONS
SEC. 201. AMENDMENT TO ESEA TO COORDINATE IDEA AND SCHOOLWIDE PROGRAMS.
Section 1114(a)(4) of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6314(a)(4)) is amended--
(1) in subparagraph (A), by striking ``Secretary (other
than formula or discretionary grant programs under the
Individuals with Disabilities Education Act),'' and inserting
``Secretary,''; and
(2) in subparagraph (B), by inserting ``special education
and related services under an individualized education program,
procedural safeguards,'' after ``civil rights,''.
SEC. 202. EFFECTIVE DATES.
(a) Parts A, B, and C.--Except as provided in subsection (b), parts
A, B, and C of the Individuals with Disabilities Education Act, as
amended by title I, shall take effect on July 1, 1997.
(b) Section 605.--Section 605 of such Act, as amended by title I,
shall take effect upon the enactment of this Act.
(c) Part D.--Part D of such Act, as amended by title I, shall take
effect on October 1, 1997.
SEC. 203. REPEALERS.
(a) Part I.--Part I of the Individuals with Disabilities Education
Act is hereby repealed.
(b) Part H.--Effective July 1, 1997, part H of such Act is hereby
repealed.
(c) Parts E, F, and G.--Effective October 1, 1997, parts E, F, and
G of such Act are hereby repealed.