[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1350 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                          May 13, 2004.
    Resolved, That the bill from the House of Representatives (H.R. 
1350) entitled ``An Act to reauthorize the Individuals with 
Disabilities Education Act, and for other purposes.'', do pass with the 
following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Individuals with Disabilities 
Education Improvement Act of 2004''.

SEC. 2. ORGANIZATION OF THE ACT.

    This Act is organized into the following titles:

 TITLE I--AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT

         TITLE II--AMENDMENTS TO THE REHABILITATION ACT OF 1973

       TITLE III--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

   TITLE IV--COMMISSION ON UNIVERSAL DESIGN AND THE ACCESSIBILITY OF 
                 CURRICULUM AND INSTRUCTIONAL MATERIALS

                         TITLE V--MISCELLANEOUS

 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 Act may be cited as the `Individuals with 
Disabilities Education Act'.
    ``(b) Table of Contents.--The table of contents for this Act 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. Acquisition of equipment; construction or 
                            alteration of facilities.
        ``Sec. 606. Employment of individuals with disabilities.
        ``Sec. 607. Requirements for prescribing regulations.
        ``Sec. 608. State administration.
        ``Sec. 609. Paperwork reduction.
        ``Sec. 610. Freely associated States.

  ``Part B--Assistance for Education of All Children With Disabilities

        ``Sec. 611. Authorization; allotment; use of funds; 
                            authorization of appropriations.
        ``Sec. 612. State eligibility.
        ``Sec. 613. Local educational agency eligibility.
        ``Sec. 614. Evaluations, eligibility determinations, 
                            individualized education programs, and 
                            educational placements.
        ``Sec. 615. Procedural safeguards.
        ``Sec. 616. Monitoring, technical assistance, and enforcement.
        ``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. 650. Findings.

 ``Subpart 1--State Personnel Preparation and Professional Development 
                                 Grants

        ``Sec. 651. Purpose; definition; program authority.
        ``Sec. 652. Eligibility and collaborative process.
        ``Sec. 653. Applications.
        ``Sec. 654. Use of funds.
        ``Sec. 655. Authorization of appropriations.

``Subpart 2--Scientifically Based Research, Technical Assistance, Model 
        Demonstration Projects, and Dissemination of Information

        ``Sec. 660. Purpose.
        ``Sec. 661. Administrative provisions.
        ``Sec. 662. Research coordination to improve results for 
                            children with disabilities.
        ``Sec. 663. Technical assistance, demonstration projects, 
                            dissemination of information, and 
                            implementation of scientifically based 
                            research.
        ``Sec. 664. Personnel development to improve services and 
                            results for children with disabilities.
        ``Sec. 665. Studies and evaluations.

``Subpart 3--Supports To Improve Results for Children With Disabilities

        ``Sec. 670. Purposes.
        ``Sec. 671. Parent training and information centers.
        ``Sec. 672. Community parent resource centers.
        ``Sec. 673. Technical assistance for parent training and 
                            information centers.
        ``Sec. 674. Technology development, demonstration, and 
                            utilization; and media services.
        ``Sec. 675. Accessibility of instructional materials.
        ``Sec. 676. Authorization of appropriations.

   ``Subpart 4--Interim Alternative Educational Settings, Behavioral 
                Supports, and Whole School Interventions

        ``Sec. 681. Purpose.
        ``Sec. 682. Definition of eligible entity.
        ``Sec. 683. Program authorized.
        ``Sec. 684. Program evaluations.
        ``Sec. 685. Authorization of appropriations.
    ``(c) Findings.--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), the 
        educational needs of millions of children with disabilities 
        were not being fully met because--
                    ``(A) the children did not receive appropriate 
                educational services;
                    ``(B) the children were excluded entirely from the 
                public school system and from being educated with their 
                peers;
                    ``(C) undiagnosed disabilities prevented the 
                children from having a successful educational 
                experience; or
                    ``(D) a lack of adequate resources within the 
                public school system forced families to find services 
                outside the public school system.
            ``(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) Over 25 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 to the general education 
                curriculum in the regular classroom to the maximum 
                extent possible in order to--
                            ``(i) meet developmental goals and, to the 
                        maximum extent possible, the challenging 
                        expectations that have been established for all 
                        children; and
                            ``(ii) be prepared to lead productive and 
                        independent adult lives, to the maximum extent 
                        possible;
                    ``(B) strengthening the role and responsibility of 
                parents and 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, 
                educational service agency, State, and Federal school 
                improvement efforts, including improvement efforts 
                under the Elementary and Secondary Education Act of 
                1965, 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 preservice 
                preparation and professional development for all 
                personnel who work with children with disabilities in 
                order to ensure that such personnel have the skills and 
                knowledge necessary to improve the academic achievement 
                and functional performance of children with 
                disabilities, including the use of scientifically based 
                instructional practices, to the maximum extent 
                possible;
                    ``(F) providing incentives for whole-school 
                approaches, scientifically based early reading 
                programs, positive behavioral interventions and 
                supports, and prereferral interventions to reduce the 
                need to label children as disabled in order to address 
                their learning and behavioral needs;
                    ``(G) focusing resources on teaching and learning 
                while reducing paperwork and requirements that do not 
                assist in improving educational results; and
                    ``(H) supporting the development and use of 
                technology, including assistive technology devices and 
                assistive technology services, to maximize 
                accessibility for children with disabilities.
            ``(6) While States, local educational agencies, and 
        educational service agencies are primarily responsible for 
        providing an education for all children with disabilities, it 
        is in the national interest that the Federal Government have a 
        supporting 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 more equitable allocation of resources is essential 
        for the Federal Government to meet its responsibility to 
        provide an equal educational opportunity for all individuals.
            ``(8) Parents and schools should be given expanded 
        opportunities to resolve their disagreements in positive and 
        constructive ways.
            ``(9) Teachers, schools, local educational agencies, and 
        States should be relieved of irrelevant and unnecessary 
        paperwork burdens that do not lead to improved educational 
        outcomes.
            ``(10)(A) The Federal Government must be responsive to the 
        growing needs of an increasingly more diverse society.
            ``(B) America's ethnic profile is rapidly changing. In the 
        year 2000, 1 of every 3 persons in the United States was a 
        member of a minority group or was limited English proficient.
            ``(C) Minority children comprise an increasing percentage 
        of public school students.
            ``(D) With such changing demographics, recruitment efforts 
        for special education personnel should focus on increasing the 
        participation of minorities in the teaching profession.
            ``(11)(A) The limited English proficient population is the 
        fastest growing in our Nation, and the growth is occurring in 
        many parts of our Nation.
            ``(B) Studies have documented apparent discrepancies in the 
        levels of referral and placement of limited English proficient 
        children in special education.
            ``(C) This poses a special challenge for special education 
        in the referral of, assessment of, and services for, our 
        Nation's students from non-English language backgrounds.
            ``(12)(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) African-American children are identified as having 
        mental retardation and emotional disturbance at rates greater 
        than their white counterparts.
            ``(D) In the 1998-1999 school year, African-American 
        children represented just 14.8 percent of the population aged 6 
        through 21, but comprised 20.2 percent of all children with 
        disabilities.
            ``(E) Studies have found that schools with predominately 
        Caucasian students and teachers have placed disproportionately 
        high numbers of their minority students into special education.
            ``(13)(A) As the number of minority students in special 
        education increases, the number of minority teachers and 
        related services personnel produced in colleges and 
        universities continues to decrease.
            ``(B) The opportunity for minority individuals, 
        organizations, and Historically Black Colleges and Universities 
        to participate fully in awards for grants and contracts, boards 
        of organizations receiving funds under this Act, and peer 
        review panels, and in the training of professionals in the area 
        of special education is essential if we are to obtain greater 
        success in the education of minority children with 
        disabilities.
            ``(14) As the graduation rates for children with 
        disabilities continue to climb, providing effective transition 
        services to promote successful post-school employment or 
        education is an important measure of accountability for 
        children with disabilities.
    ``(d) Purposes.--The purposes of this title are--
            ``(1)(A) 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, 
        further education, and independent living;
            ``(B) to ensure that the rights of children with 
        disabilities and parents of such children are protected; and
            ``(C) to assist States, localities, educational service 
        agencies, and Federal agencies to provide for the education of 
        all children with disabilities;
            ``(2) to assist States in the implementation of a 
        Statewide, coordinated, multidisciplinary, interagency system 
        of early intervention services for infants and toddlers with 
        disabilities and their families;
            ``(3) to ensure that educators and parents have the 
        necessary tools to improve educational results for children 
        with disabilities by supporting systemic-change activities; 
        coordinated research and personnel preparation; coordinated 
        technical assistance, dissemination, and support; and 
        technology development and media services; and
            ``(4) to assess, and ensure the effectiveness of, efforts 
        to educate children with disabilities.

``SEC. 602. DEFINITIONS.

    ``Except as otherwise provided, as used in this Act:
            ``(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. 
        The term does not include a medical device that is surgically 
        implanted, or the repalcement of such device.
            ``(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 (hereinafter referred to as 
                        `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 through 9.--The term `child with 
                a disability' for a child aged 3 through 9 (or any 
                subset of that age range, including ages 3 through 5), 
                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 1 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) Core academic subject.--The term `core academic 
        subject' has the meaning given the term in section 9101(11) of 
        the Elementary and Secondary Education Act of 1965.
            ``(5) 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 schools and secondary schools 
                        of the State; and
                    ``(B) includes any other public institution or 
                agency having administrative control and direction over 
                a public elementary school or secondary school.
            ``(6) Elementary school.--The term `elementary school' 
        means a nonprofit institutional day or residential school that 
        provides elementary education, as determined under State law.
            ``(7) 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.
            ``(8) Excess costs.--The term `excess costs' means those 
        costs that are in excess of the average annual per-student 
        expenditure in a local educational agency during the preceding 
        school year for an elementary school 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; 
                        and
                            ``(iii) under parts A and B of title III of 
                        that Act; and
                    ``(B) any State or local funds expended for 
                programs that would qualify for assistance under any of 
                those parts.
            ``(9) 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 
                school, or secondary school education in the State 
                involved; and
                    ``(D) are provided in conformity with the 
                individualized education program required under section 
                614(d).
            ``(10) Highly qualified.--The term `highly qualified' means 
        the following:
                    ``(A) All special education teachers.--When used 
                with respect to any public elementary school or 
                secondary school special education teacher teaching in 
                a State, means that the teacher holds at least a 
                bachelor's degree and that--
                            ``(i) the teacher has obtained full State 
                        certification as a special education teacher 
                        through a State-approved special education 
                        teacher preparation program (including 
                        certification obtained through alternative 
                        routes to certification) or other comparably 
                        rigorous methods, or passed the State teacher 
                        special education licensing examination, and 
                        holds a license to teach in the State as a 
                        special education teacher, except that when 
                        used with respect to any teacher teaching in a 
                        public charter school, the term means that the 
                        teacher meets the requirements set forth in the 
                        State's public charter school law;
                            ``(ii) the teacher has not had 
                        certification or licensure requirements waived 
                        on an emergency, temporary, or provisional 
                        basis; and
                            ``(iii) the teacher demonstrates knowledge 
                        of special education and the teaching skills 
                        necessary to teach children with disabilities.
                    ``(B) New elementary school special education 
                teachers.--When used with respect to a special 
                education elementary school teacher who is new to the 
                profession, means that the teacher demonstrated, by 
                passing a rigorous State test, subject knowledge and 
                teaching skills in reading, writing, mathematics, and 
                other areas of the basic elementary school curriculum 
                (which may consist of passing a State-required 
                certification or licensing test or tests in reading, 
                writing, mathematics, and other areas of the basic 
                elementary school curriculum).
                    ``(C) New middle school and secondary school 
                special education teachers.--When used with respect to 
                a special education middle school or secondary school 
                teacher who is new to the profession, means that the 
                teacher has demonstrated a high level of competency in 
                each of the academic subjects in which the teacher 
                teaches by--
                            ``(i) passing a rigorous State academic 
                        subject test in each of the academic subjects 
                        in which the teacher teaches (which may consist 
                        of a passing level of performance on a State-
                        required certification or licensing test or 
                        tests in each of the academic subjects in which 
                        the teacher teaches); or
                            ``(ii) successful completion, in each of 
                        the academic subjects in which the teacher 
                        teaches, of an academic major, graduate degree, 
                        coursework equivalent to an undergraduate 
                        academic major, or advanced certification or 
                        credentialing.
                    ``(D) Veteran special education teachers.--When 
                used with respect to an elementary school, middle 
                school, or secondary school special education teacher 
                who is not new to the profession, means that the 
                teacher has--
                            ``(i) met the applicable standard in 
                        subparagraph (B) or (C), which includes an 
                        option for a test; or
                            ``(ii) has demonstrated competence in all 
                        the academic subjects in which the teacher 
                        teaches based on a high objective uniform State 
                        standard of evaluation for special education 
                        teachers that--
                                    ``(I) is set by the State for both 
                                grade-appropriate academic subject 
                                matter knowledge and special education 
                                teaching skills;
                                    ``(II) is aligned with challenging 
                                State academic content and student 
                                academic achievement standards and 
                                developed in consultation with special 
                                education teachers, core content 
                                specialists, teachers, principals, and 
                                school administrators;
                                    ``(III) provides objective, 
                                coherent information about the 
                                teachers' attainment of knowledge of 
                                core content knowledge in the academic 
                                subjects in which a teacher teaches;
                                    ``(IV) is applied uniformly to all 
                                special education teachers who teach in 
                                the same academic subject and the same 
                                grade level throughout the State;
                                    ``(V) takes into consideration, but 
                                is not based primarily on, the time the 
                                teacher has been teaching in the 
                                academic subject;
                                    ``(VI) is made available to the 
                                public on request; and
                                    ``(VII) may involve multiple 
                                objective measures of teacher 
                                competency.
                    ``(E) Teachers providing consultative services.--
                            ``(i) In general.--Notwithstanding 
                        subparagraphs (B) through (D), when used with 
                        respect to a special education teacher who 
                        provides only consultative services to a highly 
                        qualified regular education teacher (as the 
                        term highly qualified is defined in section 
                        9101(23) of the Elementary and Secondary 
                        Education Act of 1965), means that the teacher 
                        meets the requirements of subparagraph (A).
                            ``(ii) Consultative services.--As used in 
                        clause (i), the term `consultative services' 
                        means services that adjust the learning 
                        environment, modify instructional methods, 
                        adapt curricula, use positive behavior supports 
                        and interventions, and select and implement 
                        appropriate accommodations to meet the needs of 
                        individual children.
                    ``(F) Exception.--Notwithstanding subparagraphs (B) 
                through (D), when used with respect to a special 
                education teacher who teaches more than 1 subject, 
                primarily to middle school and secondary school-aged 
                children with significant cognitive disabilities, means 
                that the teacher has demonstrated subject knowledge and 
                teaching skills in reading, mathematics, and other 
                areas of the basic elementary school curriculum by--
                            ``(i) passing a rigorous State test (which 
                        may consist of passing a State-required 
                        certification or licensing test or tests in 
                        those areas); or
                            ``(ii) demonstrating competency in all the 
                        academic subjects in which the teacher teaches, 
                        based on a high objective uniform State 
                        standard as described in subparagraph (D)(ii).
            ``(11) Indian.--The term `Indian' means an individual who 
        is a member of an Indian tribe.
            ``(12) Indian tribe.--The term `Indian tribe' means any 
        Federal or State Indian tribe, band, rancheria, pueblo, colony, 
        or community, including any Alaska Native village or regional 
        village corporation (as defined in or established under the 
        Alaska Native Claims Settlement Act).
            ``(13) 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).
            ``(14) Individualized family service plan.--The term 
        `individualized family service plan' has the meaning given such 
        term in section 636.
            ``(15) Infant or toddler with a disability.--The term 
        `infant or toddler with a disability' has the meaning given 
        such term in section 632.
            ``(16) Institution of higher education.--The term 
        `institution of higher education'--
                    ``(A) has the meaning given such term in section 
                101 (a) and (b) 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 College or University Assistance 
                Act of 1978.
            ``(17) Limited english proficient.--The term `limited 
        English proficient' has the meaning given the term in section 
        9101(25) of the Elementary and Secondary Education Act of 1965.
            ``(18) Local educational agency.--
                    ``(A) The term `local educational agency' means 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 schools or 
                secondary schools in a city, county, township, school 
                district, or other political subdivision of a State, or 
                for such combination of school districts or counties as 
                are recognized in a State as an administrative agency 
                for its public elementary schools or secondary schools.
                    ``(B) The term includes--
                            ``(i) an educational service agency, as 
                        defined in paragraph (5); and
                            ``(ii) any other public institution or 
                        agency having administrative control and 
                        direction of a public elementary school or 
                        secondary school.
                    ``(C) The term includes an elementary school or 
                secondary school funded by the Bureau of Indian 
                Affairs, but only to the extent that such inclusion 
                makes the school eligible for programs for which 
                specific eligibility is not provided to the school in 
                another provision of law and the school does not have a 
                student population that is smaller than the student 
                population of the local educational agency receiving 
                assistance under this Act with the smallest student 
                population, except that the school shall not be subject 
                to the jurisdiction of any State educational agency 
                other than the Bureau of Indian Affairs.
            ``(19) Native language.--The term `native language', when 
        used with respect 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.
            ``(20) Nonprofit.--The term `nonprofit', as applied to a 
        school, agency, organization, or institution, means a school, 
        agency, organization, or institution owned and operated by 1 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.
            ``(21) Outlying area.--The term `outlying area' means the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
            ``(22) Parent.--
                    ``(A) In general.--The term `parent'--
                            ``(i) means--
                                    ``(I) a natural or adoptive parent 
                                of a child;
                                    ``(II) a guardian (but not the 
                                State if the child is a ward of the 
                                State);
                                    ``(III) an individual acting in the 
                                place of a natural or adoptive parent, 
                                including a grandparent, stepparent, or 
                                other relative with whom the child 
                                lives or an individual who is legally 
                                responsible for the child's welfare; or
                                    ``(IV) except as used in sections 
                                615(b)(2) and 639(a)(5), an individual 
                                assigned under either of those sections 
                                to be a surrogate parent; and
                            ``(ii) in the case of a homeless child who 
                        is not in the physical custody of a parent or 
                        guardian, includes a related or unrelated adult 
                        with whom the child is living or other adult 
                        jointly designated by the child and the local 
                        educational agency liaison for homeless 
                        children and youths (designated pursuant to 
                        section 722(g)(1)(J)(ii) of the McKinney-Vento 
                        Homeless Assistance Act), in addition to other 
                        individuals permitted by law.
                    ``(B) Foster parent.--Unless State law prohibits a 
                foster parent from acting as a parent, the term 
                `parent' includes a foster parent if--
                            ``(i) the natural or adoptive parents' 
                        authority to make educational decisions on the 
                        child's behalf has been extinguished under 
                        State law; and
                            ``(ii) the foster parent--
                                    ``(I) has an ongoing, long-term 
                                parental relationship with the child;
                                    ``(II) is willing to make the 
                                educational decisions required of 
                                parents under this Act; and
                                    ``(III) has no interest that would 
                                conflict with the interests of the 
                                child.
            ``(23) Parent organization.--The term `parent organization' 
        has the meaning given such term in section 671(g).
            ``(24) Parent training and information center.--The term 
        `parent training and information center' means a center 
        assisted under section 671 or 672.
            ``(25) Related services.--The term `related services' means 
        transportation, and such developmental, corrective, and other 
        supportive services (including speech-language pathology and 
        audiology services, interpreting services, psychological 
        services, physical and occupational therapy, recreation, 
        including therapeutic recreation, social work services, school 
        health services, counseling services, including rehabilitation 
        counseling, orientation and mobility services, travel training 
        instruction, 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. The term does not include a medical device that is 
        surgically implanted, or the replacement of such device.
            ``(26) Secondary school.--The term `secondary school' means 
        a nonprofit institutional day or residential school that 
        provides secondary education, as determined under State law, 
        except that it does not include any education beyond grade 12.
            ``(27) Secretary.--The term `Secretary' means the Secretary 
        of Education.
            ``(28) 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.
            ``(29) Specific learning disability.--
                    ``(A) In general.--The term `specific learning 
                disability' means a disorder in 1 or more of the basic 
                psychological processes involved in understanding or in 
                using language, spoken or written, which disorder may 
                manifest itself in the 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.
            ``(30) State.--The term `State' means each of the 50 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, and each of the outlying areas.
            ``(31) 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 schools and secondary schools, 
        or, if there is no such officer or agency, an officer or agency 
        designated by the Governor or by State law.
            ``(32) 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)(5).
            ``(33) Transition services.--The term `transition services' 
        means a coordinated set of activities for a child with a 
        disability (as defined in paragraph (3)(A)) that--
                    ``(A) is designed to be within a results-oriented 
                process, that is focused on improving the academic and 
                functional achievement of the child with a disability 
                to facilitate the child's 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) is based on the individual child's needs, 
                taking into account the child's strengths, preferences, 
                and interests; and
                    ``(C) includes 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.
            ``(34) Child with a disability in a military family.--The 
        term `child with a disability in a military family' means a 
        child with a disability who has a parent who is a member of the 
        Armed Forces, including a member of the National Guard or 
        Reserves.
            ``(35) Homeless children.--The term `homeless children' has 
        the meaning given the term `homeless children and youths' in 
        section 725 of the McKinney-Vento Homeless Assistance Act.
            ``(36) Ward of the state.--The term `ward of the State' 
        means a child who, as defined by the State where the child 
        resides, is a foster child, a ward of the State or is in the 
        custody of a public child welfare agency.

``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 Act 
and other programs and activities concerning the education 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 Act.

``SEC. 604. ABROGATION OF STATE SOVEREIGN IMMUNITY.

    ``(a) In General.--A State shall not be immune under the 11th 
amendment to the Constitution of the United States from suit in Federal 
court for a violation of this Act.
    ``(b) Remedies.--In a suit against a State for a violation of this 
Act, remedies (including remedies both at law and in equity) are 
available for such a violation to the same extent as those remedies are 
available for such a violation in the suit against any public entity 
other than a State.
    ``(c) Effective Date.--Subsections (a) and (b) apply with respect 
to violations that occur in whole or part after the date of enactment 
of the Education of the Handicapped Act Amendments of 1990.

``SEC. 605. ACQUISITION OF EQUIPMENT; CONSTRUCTION OR ALTERATION OF 
              FACILITIES.

    ``(a) In General.--If the Secretary determines that a program 
authorized under this Act will be improved by permitting program funds 
to be used to acquire appropriate equipment, or to construct new 
facilities or alter existing facilities, the Secretary is authorized to 
allow the use of those funds for those purposes.
    ``(b) Compliance With Certain Regulations.--Any construction of new 
facilities or alteration of existing facilities under subsection (a) 
shall comply with the requirements of--
            ``(1) appendix A of part 36 of title 28, Code of Federal 
        Regulations (commonly known as the `Americans with Disabilities 
        Accessibility Guidelines for Buildings and Facilities'); or
            ``(2) appendix A of subpart 101-19.6 of title 41, Code of 
        Federal Regulations (commonly known as the `Uniform Federal 
        Accessibility Standards').

``SEC. 606. EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.

    ``The Secretary shall ensure that each recipient of assistance 
under this Act makes positive efforts to employ and advance in 
employment qualified individuals with disabilities in programs assisted 
under this Act.

``SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

    ``(a) In General.--In carrying out the provisions of this Act, 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.
    ``(b) Protections Provided to Children.--The Secretary may not 
implement, or publish in final form, any regulation prescribed pursuant 
to this Act that--
            ``(1) violates or contradicts any provision of this Act; 
        and
            ``(2) procedurally or substantively lessens the protections 
        provided to children with disabilities under this Act, as 
        embodied in regulations in effect on July 20, 1983 
        (particularly as such protections related to parental consent 
        to initial evaluation or initial placement in special 
        education, least restrictive environment, related services, 
        timelines, 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) Public Comment Period.--The Secretary shall provide a public 
comment period of not more than 90 days on any regulation proposed 
under part B or part C of this Act on which an opportunity for public 
comment is otherwise required by law.
    ``(d) Policy Letters and Statements.--The Secretary may not issue 
policy letters or other statements (including letters or statements 
regarding issues of national significance) that--
            ``(1) violate or contradict any provision of this Act; or
            ``(2) establish a rule that is required for compliance 
        with, and eligibility under, this Act without following the 
        requirements of section 553 of title 5, United States Code.
    ``(e) Explanation and Assurances.--Any written response by the 
Secretary under subsection (d) regarding a policy, question, or 
interpretation under part B of this Act shall include an explanation in 
the written response that--
            ``(1) such response is provided as informal guidance and is 
        not legally binding;
            ``(2) when required, such response is issued in compliance 
        with the requirements of section 553 of title 5, United States 
        Code; and
            ``(3) such response represents the interpretation by the 
        Department of Education of the applicable statutory or 
        regulatory requirements in the context of the specific facts 
        presented.
    ``(f) Correspondence From Department of Education Describing 
Interpretations of This Act.--
            ``(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--
                    ``(A) identify the topic addressed by the 
                correspondence and shall include such other summary 
                information as the Secretary determines to be 
                appropriate; and
                    ``(B) ensure that all such correspondence is 
                issued, where applicable, in compliance with the 
                requirements of section 553 of title 5, United States 
                Code.

``SEC. 608. STATE ADMINISTRATION.

    ``(a) Rulemaking.--Each State that receives funds under this Act 
shall--
            ``(1) ensure that any State rules, regulations, and 
        policies relating to this Act conform to the purposes of this 
        Act; and
            ``(2) identify in writing to its local educational agencies 
        and the Secretary any such rule, regulation, or policy as a 
        State-imposed requirement that is not required by this Act and 
        Federal regulations.
    ``(b) Support and Facilitation.--State rules, regulations, and 
policies under this Act shall support and facilitate local educational 
agency and school-level systemic reform designed to enable children 
with disabilities to meet the challenging State student academic 
achievement standards.

``SEC. 609. PAPERWORK REDUCTION.

    ``(a) Report to Congress.--The Comptroller General shall conduct a 
review of Federal, State, and local requirements relating to the 
education of children with disabilities to determine which requirements 
result in excessive paperwork completion burdens for teachers, related 
services providers, and school administrators, and shall report to 
Congress not later than 18 months after the date of enactment of the 
Individuals with Disabilities Education Improvement Act of 2003 
regarding such review along with strategic proposals for reducing the 
paperwork burdens on teachers.
    ``(b) Paperwork Reduction Demonstration.--
            ``(1) Pilot program.--
                    ``(A) Purpose.--The purpose of this subsection is 
                to provide an opportunity for States to identify ways 
                to reduce paperwork burdens and other administrative 
                duties that are directly associated with the 
                requirements of this Act, in order to increase the time 
                and resources available for instruction and other 
                activities aimed at improving educational and 
                functional results for children with disabilities.
                    ``(B) Authorization.--
                            ``(i) In general.--In order to carry out 
                        the purpose of this subsection, the Secretary 
                        is authorized to grant waivers of statutory 
                        requirements of, or regulatory requirements 
                        relating to, this part for a period of time not 
                        to exceed 4 years with respect to not more than 
                        15 States based on proposals submitted by 
                        States to reduce excessive paperwork and 
                        noninstructional time burdens that do not 
                        assist in improving educational and functional 
                        results for children with disabilities.
                            ``(ii) Exception.--The Secretary shall not 
                        waive any statutory requirements of, or 
                        regulatory requirements relating to, applicable 
                        civil rights requirements.
                            ``(iii) Rule of construction.--Nothing in 
                        this subsection shall be construed to--
                                    ``(I) affect the right of a child 
                                with a disability to receive a free 
                                appropriate public education under this 
                                part; and
                                    ``(II) permit a State or local 
                                educational agency to waive procedural 
                                safeguards under section 615.
                    ``(C) Proposal.--
                            ``(i) In general.--A State desiring to 
                        participate in the program under this 
                        subsection shall submit a proposal to the 
                        Secretary at such time and in such manner as 
                        the Secretary may reasonably require.
                            ``(ii) Content.--The proposal shall 
                        include--
                                    ``(I) a list of any statutory 
                                requirements of, or regulatory 
                                requirements relating to, this part 
                                that the State desires the Secretary to 
                                waive or change, in whole or in part; 
                                and
                                    ``(II) a list of any State 
                                requirements that the State proposes to 
                                waive or change, in whole or in part, 
                                to carry out a waiver granted to the 
                                State by the Secretary.
                    ``(D) Termination of waiver.--The Secretary shall 
                terminate a State's waiver under this subsection if the 
                Secretary determines that the State--
                            ``(i) has failed to make satisfactory 
                        progress in meeting the indicators described in 
                        section 616; or
                            ``(ii) has failed to appropriately 
                        implement its waiver.
            ``(2) Report.--Beginning 2 years after the date of 
        enactment of the Individuals with Disabilities Education 
        Improvement Act of 2003, the Secretary shall include in the 
        annual report to Congress submitted pursuant to section 426 of 
        the Department of Education Organization Act information 
        related to the effectiveness of waivers granted under paragraph 
        (1), including any specific recommendations for broader 
        implementation of such waivers, in--
                    ``(A) reducing--
                            ``(i) the paperwork burden on teachers, 
                        principals, administrators, and related service 
                        providers; and
                            ``(ii) noninstructional time spent by 
                        teachers in complying with this part;
                    ``(B) enhancing longer-term educational planning;
                    ``(C) improving positive outcomes for children with 
                disabilities;
                    ``(D) promoting collaboration between IEP Team 
                members; and
                    ``(E) ensuring satisfaction of family members.

``SEC. 610. FREELY ASSOCIATED STATES.

    ``The Republic of the Marshall Islands, the Federated States of 
Micronesia, and the Republic of Palau shall continue to be eligible for 
competitive grants administered by the Secretary under this Act to the 
extent that such grants continue to be available to States and local 
educational agencies under this Act.

  ``PART B--ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES

``SEC. 611. AUTHORIZATION; ALLOTMENT; USE OF FUNDS; AUTHORIZATION OF 
              APPROPRIATIONS.

    ``(a) Grants to States.--
            ``(1) Purpose of grants.--The Secretary shall make grants 
        to States and the outlying areas, and provide funds to the 
        Secretary of the Interior, to assist them to provide special 
        education and related services to children with disabilities in 
        accordance with this part.
            ``(2) Maximum amount.--The maximum amount available for 
        awarding grants under this section for any fiscal year is--
                    ``(A) the total number of children with 
                disabilities in the 2002-2003 school year in the States 
                who received special education and related services and 
                who were--
                            ``(i) aged 3 through 5, if the State was 
                        eligible for a grant under section 619; and
                            ``(ii) aged 6 through 21; multiplied by
                    ``(B) 40 percent of the average per-pupil 
                expenditure in public elementary schools and secondary 
                schools in the United States; adjusted by;
                    ``(C) the rate of change in the sum of--
                            ``(i) 85 percent of the change in the 
                        nationwide total of the population described in 
                        subsection (d)(3)(A)(i)(II); and
                            ``(ii) 15 percent of the change in the 
                        nationwide total of the population described in 
                        subsection (d)(3)(A)(i)(III).
    ``(b) Outlying Areas and Freely Associated States.--
            ``(1) Funds reserved.--From the amount appropriated for any 
        fiscal year under subsection (i), the Secretary shall reserve 
        not more than 1 percent, which shall be used--
                    ``(A) to provide assistance to the outlying areas 
                in accordance with their respective populations of 
                individuals aged 3 through 21; and
                    ``(B) to provide each freely associated State a 
                grant in the amount that such freely associated State 
                received for fiscal year 2003 under this part, but only 
                if the freely associated State meets the applicable 
                requirements of this part, as well as the requirements 
                of section 611(b)(2)(C) as such section was in effect 
                on the day before the date of enactment of the 
                Individuals with Disabilities Education Improvement Act 
                of 2004.
            ``(2) Special rule.--The provisions of Public Law 95-134, 
        permitting the consolidation of grants by the outlying areas, 
        shall not apply to funds provided to the outlying areas or the 
        freely associated States under this section.
            ``(3) Definition.--As used in this subsection, the term 
        `freely associated States' means the Republic of the Marshall 
        Islands, the Federated States of Micronesia, and the Republic 
        of Palau.
    ``(c) Secretary of the Interior.--From the amount appropriated for 
any fiscal year under subsection (i), the Secretary shall reserve 1.226 
percent to provide assistance to the Secretary of the Interior in 
accordance with subsection (i).
    ``(d) Allocations to States.--
            ``(1) In general.--After reserving funds for studies and 
        evaluations under section 665, and for payments to the outlying 
        areas, the freely associated States, and the Secretary of the 
        Interior under subsections (b) and (c) for a fiscal year, the 
        Secretary shall allocate the remaining amount among the States 
        in accordance with this subsection.
            ``(2) Special rule for use of fiscal year 1999 amount.--If 
        a State received any funds under this section for fiscal year 
        1999 on the basis of children aged 3 through 5, but does not 
        make a free appropriate public education available to all 
        children with disabilities aged 3 through 5 in the State in any 
        subsequent fiscal year, the Secretary shall compute the State's 
        amount for fiscal year 1999, solely for the purpose of 
        calculating the State's allocation in that subsequent year 
        under paragraph (3) or (4), by subtracting the amount allocated 
        to the State for fiscal year 1999 on the basis of those 
        children.
            ``(3) Increase in funds.--If the amount available for 
        allocations to States under paragraph (1) for a fiscal year is 
        equal to or greater than the amount allocated to the States 
        under this paragraph for the preceding fiscal year, those 
        allocations shall be calculated as follows:
                    ``(A) Allocation of increase.--
                            ``(i) In general.--Except as provided in 
                        subparagraph (B), the Secretary shall allocate 
                        for the fiscal year--
                                    ``(I) to each State the amount the 
                                State received under this section for 
                                fiscal year 1999;
                                    ``(II) 85 percent of any remaining 
                                funds to States on the basis of the 
                                States' relative populations of 
                                children aged 3 through 21 who are of 
                                the same age as children with 
                                disabilities for whom the State ensures 
                                the availability of a free appropriate 
                                public education under this part; and
                                    ``(III) 15 percent of those 
                                remaining funds to States on the basis 
                                of the States' relative populations of 
                                children described in subclause (II) 
                                who are living in poverty.
                            ``(ii) Data.--For the purpose of making 
                        grants under this paragraph, the Secretary 
                        shall use the most recent population data, 
                        including data on children living in poverty, 
                        that are available and satisfactory to the 
                        Secretary.
                    ``(B) Limitations.--Notwithstanding subparagraph 
                (A), allocations under this paragraph shall be subject 
                to the following:
                            ``(i) Preceding year allocation.--No 
                        State's allocation shall be less than its 
                        allocation under this section for the preceding 
                        fiscal year.
                            ``(ii) Minimum.--No State's allocation 
                        shall be less than the greatest of--
                                    ``(I) the sum of--
                                            ``(aa) the amount the State 
                                        received under this section for 
                                        fiscal year 1999; and
                                            ``(bb) \1/3\ of 1 percent 
                                        of the amount by which the 
                                        amount appropriated under 
                                        subsection (i) for the fiscal 
                                        year exceeds the amount 
                                        appropriated for this section 
                                        for fiscal year 1999;
                                    ``(II) the sum of--
                                            ``(aa) the amount the State 
                                        received under this section for 
                                        the preceding fiscal year; and
                                            ``(bb) that amount 
                                        multiplied by the percentage by 
                                        which the increase in the funds 
                                        appropriated for this section 
                                        from the preceding fiscal year 
                                        exceeds 1.5 percent; or
                                    ``(III) the sum of--
                                            ``(aa) the amount the State 
                                        received under this section for 
                                        the preceding fiscal year; and
                                            ``(bb) that amount 
                                        multiplied by 90 percent of the 
                                        percentage increase in the 
                                        amount appropriated for this 
                                        section from the preceding 
                                        fiscal year.
                            ``(iii) Maximum.--Notwithstanding clause 
                        (ii), no State's allocation under this 
                        paragraph shall exceed the sum of--
                                    ``(I) the amount the State received 
                                under this section for the preceding 
                                fiscal year; and
                                    ``(II) that amount multiplied by 
                                the sum of 1.5 percent and the 
                                percentage increase in the amount 
                                appropriated under this section from 
                                the preceding fiscal year.
                    ``(C) Ratable reduction.--If the amount available 
                for allocations under this paragraph is insufficient to 
                pay those allocations in full, those allocations shall 
                be ratably reduced, subject to subparagraph (B)(i).
            ``(4) Decrease in funds.--If the amount available for 
        allocations to States under paragraph (1) for a fiscal year is 
        less than the amount allocated to the States under this section 
        for the preceding fiscal year, those allocations shall be 
        calculated as follows:
                    ``(A) Amounts greater than fiscal year 1999 
                allocations.--If the amount available for allocations 
                is greater than the amount allocated to the States for 
                fiscal year 1999, each State shall be allocated the sum 
                of--
                            ``(i) the amount the State received under 
                        this section for fiscal year 1999; and
                            ``(ii) an amount that bears the same 
                        relation to any remaining funds as the increase 
                        the State received under this section for the 
                        preceding fiscal year over fiscal year 1999 
                        bears to the total of all such increases for 
                        all States.
                    ``(B) Amounts equal to or less than fiscal year 
                1999 allocations.--
                            ``(i) In general.--If the amount available 
                        for allocations under this paragraph is equal 
                        to or less than the amount allocated to the 
                        States for fiscal year 1999, each State shall 
                        be allocated the amount the State received for 
                        fiscal year 1999.
                            ``(ii) Ratable reduction.--If the amount 
                        available for allocations under this paragraph 
                        is insufficient to make the allocations 
                        described in clause (i), those allocations 
                        shall be ratably reduced.
    ``(e) State-Level Activities.--
            ``(1) State administration.--
                    ``(A) In general.--For the purpose of administering 
                this part, including paragraph (3), section 619, and 
                the coordination of activities under this part with, 
                and providing technical assistance to, other programs 
                that provide services to children with disabilities--
                            ``(i) each State may reserve not more than 
                        the maximum amount the State was eligible to 
                        reserve for State administration for fiscal 
                        year 2003 or $800,000 (adjusted by the 
                        cumulative rate of inflation since fiscal year 
                        2003 as measured by the percentage increase, if 
                        any, in the Consumer Price Index For All Urban 
                        Consumers, published by the Bureau of Labor 
                        Statistics of the Department of Labor), 
                        whichever is greater; and
                            ``(ii) each outlying area may reserve not 
                        more than 5 percent of the amount the outlying 
                        area receives under subsection (b) for any 
                        fiscal year or $35,000, whichever is greater.
                    ``(B) Part c.--Funds reserved under subparagraph 
                (A) may be used for the administration of part C, if 
                the State educational agency is the lead agency for the 
                State under that part.
                    ``(C) Certification.--Prior to expenditure of funds 
                under this paragraph, the State shall certify to the 
                Secretary that the arrangements to establish 
                responsibility for services pursuant to section 
                612(a)(12)(A) are current as of the date of submission 
                of the certification.
            ``(2) Other state-level activities.--
                    ``(A) State-level activities.--
                            ``(i) In general.--For the purpose of 
                        carrying out State-level activities, each State 
                        may reserve for each of the fiscal years 2004 
                        and 2005, not more than 10 percent of the 
                        amount that remains after subtracting the 
                        amount reserved under paragraph (1) from the 
                        amount of the State's allocation under 
                        subsection (d) for fiscal years 2004 and 2005, 
                        respectively. For fiscal years 2006, 2007, 
                        2008, and 2009, the State may reserve the 
                        maximum amount the State was eligible to 
                        reserve under the preceding sentence for fiscal 
                        year 2005 (adjusted by the cumulative rate of 
                        inflation since fiscal year 2005 as measured by 
                        the percentage increase, if any, in the 
                        Consumer Price Index for All Urban Consumers, 
                        published by the Bureau of Labor Statistics of 
                        the Department of Labor).
                            ``(ii) Small state adjustment.--
                        Notwithstanding clause (i), in the case of a 
                        State for which the maximum amount reserved for 
                        State administration under paragraph (1) is not 
                        greater than $800,000 (as adjusted pursuant to 
                        paragraph (1)(A)(i)), the State may reserve for 
                        the purpose of carrying out State-level 
                        activities for each of the fiscal years 2004 
                        and 2005, not more than 12 percent of the 
                        amount that remains after subtracting the 
                        amount reserved under paragraph (1) from the 
                        amount of the State's allocation under 
                        subsection (d) for fiscal years 2004 and 2005, 
                        respectively. For each of the fiscal years 
                        2006, 2007, 2008, and 2009, each such State may 
                        reserve for such purpose the maximum amount the 
                        State was eligible to reserve under the 
                        preceding sentence for fiscal year 2005 
                        (adjusted by the cumulative rate of inflation 
                        since fiscal year 2005 as measured by the 
                        percentage increase, if any, in the Consumer 
                        Price Index For All Urban Consumers, published 
                        by the Bureau of Labor Statistics of the 
                        Department of Labor).
                    ``(B) Required activities.--Funds reserved under 
                subparagraph (A) shall be used to carry out the 
                following activities:
                            ``(i) For monitoring, enforcement and 
                        complaint investigation.
                            ``(ii) To establish and implement the 
                        mediation, processes required by section 
                        615(e)(1), including providing for the costs of 
                        mediators and support personnel;
                            ``(iii) To support the State protection and 
                        advocacy system to advise and assist parents in 
                        the areas of--
                                    ``(I) dispute resolution and due 
                                process;
                                    ``(II) voluntary mediation; and
                                    ``(III) the opportunity to resolve 
                                complaints.
                    ``(C) Authorized activities.--Funds reserved under 
                subparagraph (A) may be used to carry out the following 
                activities:
                            ``(i) For support and direct services, 
                        including technical assistance, personnel 
                        preparation, and professional development and 
                        training.
                            ``(ii) To support paperwork reduction 
                        activities, including expanding the use of 
                        technology in the IEP process.
                            ``(iii) To assist local educational 
                        agencies in providing positive behavioral 
                        interventions and supports and mental health 
                        services for children with disabilities.
                            ``(iv) To improve the use of technology in 
                        the classroom by children with disabilities to 
                        enhance learning.
                            ``(v) To support the development and use of 
                        technology, including universally designed 
                        technologies and assistive technology devices, 
                        to maximize accessibility to the general 
                        curriculum for children with disabilities.
                            ``(vi) Development and implementation of 
                        transition programs, including coordination of 
                        services with agencies involved in supporting 
                        the transition of students with disabilities to 
                        post-secondary activities.
                            ``(vii) To assist local educational 
                        agencies in meeting personnel shortages.
                            ``(viii) To support capacity building 
                        activities and improve the delivery of services 
                        by local educational agencies to improve 
                        results for children with disabilities.
                            ``(ix) Alternative programming for children 
                        who have been expelled from school, and 
                        services for children in correctional 
                        facilities, children enrolled in State-operated 
                        or State-supported schools, and children in 
                        charter schools.
                            ``(x) To support the development and 
                        provision of appropriate accommodations for 
                        children with disabilities, or the development 
                        and provision of alternate assessments that are 
                        valid and reliable for assessing the 
                        performance of children with disabilities, in 
                        accordance with sections 1111(b) and 6111 of 
                        the Elementary and Secondary Education Act of 
                        1965.
            ``(3) Local educational agency risk pool.--
                    ``(A) In general.--For the purpose of assisting 
                local educational agencies (and charter schools that 
                are local educational agencies) in addressing the needs 
                of high-need children and the unanticipated enrollment 
                of other children eligible for services under this 
                part, each State shall reserve for each of the fiscal 
                years 2004 through 2009, 2 percent of the amount that 
                remains after subtracting the amount reserved under 
                paragraph (1) from the amount of the State's allocation 
                under subsection (d) for each of the fiscal years 2004 
                through 2009, respectively, to--
                            ``(i) establish a high-cost fund; and
                            ``(ii) make disbursements from the high-
                        cost fund to local educational agencies in 
                        accordance with this paragraph.
                    ``(B) Required disbursements from the fund.--
                            ``(i) In general.--Each State educational 
                        agency shall make disbursements from the fund 
                        established under subparagraph (A) to local 
                        educational agencies to pay the percentage, 
                        described in subparagraph (D), of the costs of 
                        providing a free appropriate public education 
                        to high-need children.
                            ``(ii) Special rule.--If funds reserved for 
                        a fiscal year under subparagraph (A) are 
                        insufficient to pay the percentage described in 
                        subparagraph (D) to assist all the local 
                        educational agencies having applications 
                        approved under subparagraph (C), then the State 
                        educational agency shall ratably reduce the 
                        amount paid to each local educational agency 
                        that receives a disbursement for that fiscal 
                        year.
                    ``(C) Application.--A local educational agency that 
                desires a disbursement under this subsection shall 
                submit an application to the State educational agency 
                at such time, in such manner, and containing such 
                information as the State educational agency may 
                require. Such application shall include assurances that 
                funds provided under this paragraph shall not be used 
                to pay costs that otherwise would be reimbursable as 
                medical assistance for a child with a disability under 
                the State medicaid program under title XIX of the 
                Social Security Act.
                    ``(D) Disbursements.--
                            ``(i) In general.--A State educational 
                        agency shall make a disbursement to a local 
                        educational agency that submits an application 
                        under subparagraph (C) in an amount that is 
                        equal to 75 percent of the costs that are in 
                        excess of 4 times the average per-pupil 
                        expenditure in the United States or in the 
                        State where the child resides (whichever 
                        average per-pupil expenditure is lower) 
                        associated with educating each high need child 
                        served by such local educational agency in a 
                        fiscal year for whom such agency desires a 
                        disbursement.
                            ``(ii) Appropriate costs.--The costs 
                        associated with educating a high need child 
                        under clause (i) are only those costs 
                        associated with providing direct special 
                        education and related services to such child 
                        that are identified in such child's 
                        appropriately developed IEP.
                    ``(E) Legal fees.--The disbursements under 
                subparagraph (D) shall not support legal fees, court 
                costs, or other costs associated with a cause of action 
                brought on behalf of such child to ensure a free 
                appropriate public education for such child.
                    ``(F) Permissible disbursements from remaining 
                funds.--A State educational agency may make 
                disbursements to local educational agencies from any 
                funds that are remaining in the high cost fund after 
                making the required disbursements under subparagraph 
                (D) for a fiscal year for the following purposes:
                            ``(i) To pay the costs associated with 
                        serving children with disabilities who moved 
                        into the areas served by such local agencies 
                        after the budget for the following school year 
                        had been finalized to assist the local 
                        educational agencies in providing a free 
                        appropriate public education for such children 
                        in such year.
                            ``(ii) To compensate local educational 
                        agencies for extraordinary costs, as determined 
                        by the State, of any children eligible for 
                        services under this part due to--
                                    ``(I) unexpected enrollment or 
                                placement of children eligible for 
                                services under this part; or
                                    ``(II) a significant underestimate 
                                of the average cost of providing 
                                services to children eligible for 
                                services under this part.
                    ``(G) Remaining funds.--Funds reserved under 
                subparagraph (A) in any fiscal year but not expended in 
                that fiscal year pursuant to subparagraph (D) or 
                subparagraph (F) shall--
                            ``(i) be allocated to local educational 
                        agencies pursuant to subparagraphs (D) or (F) 
                        for the next fiscal year; or
                            ``(ii) be allocated to local educational 
                        agencies in the same manner as funds are 
                        allocated to local educational agencies under 
                        subsection (f).
                    ``(H) Assurance of a free appropriate public 
                education.--Nothing in this section shall be 
                construed--
                            ``(i) to limit or condition the right of a 
                        child with a disability who is assisted under 
                        this part to receive a free appropriate public 
                        education pursuant to section 612(a)(1) in a 
                        least restrictive environment pursuant to 
                        section 612(a)(5); or
                            ``(ii) to authorize a State educational 
                        agency or local educational agency to indicate 
                        a limit on what is expected to be spent on the 
                        education of a child with a disability.
                    ``(I) Medicaid services not affected.--
                Disbursements provided under this subsection shall not 
                be used to pay costs that otherwise would be 
                reimbursable as medical assistance for a child with a 
                disability under the State medicaid program under title 
                XIX of the Social Security Act.
                    ``(J) Definitions.--In this paragraph:
                            ``(i) Average per-pupil expenditure.--The 
                        term `average per-pupil expenditure' has the 
                        meaning given the term in section 9101 of the 
                        Elementary and Secondary Education Act of 1965.
                            ``(ii) High-need child.--The term `high-
                        need', when used with respect to a child with a 
                        disability, means a child with a disability for 
                        whom a free appropriate public education in a 
                        fiscal year costs more than 4 times the average 
                        per-pupil expenditure for such fiscal year.
                    ``(K) Special rule for risk pool and high-need 
                assistance programs in effect as of january 1, 2003.--
                Notwithstanding the provisions of subparagraphs (A) 
                through (J), a State may use funds reserved pursuant to 
                this paragraph for administering and implementing a 
                placement-neutral cost-sharing and reimbursement 
                program of high-need, low-incidence, emergency, 
                catastrophic, or extraordinary aid to local educational 
                agencies that provides services to students eligible 
                under this part based on eligibility criteria for such 
                programs that were operative on January 1, 2003.
            ``(4) Inapplicability of certain prohibitions.--A State may 
        use funds the State reserves under paragraphs (1), (2), and (3) 
        without regard to--
                    ``(A) the prohibition on commingling of funds in 
                section 612(a)(17)(B); and
                    ``(B) the prohibition on supplanting other funds in 
                section 612(a)(17)(C).
            ``(5) Report on use of funds.--As part of the information 
        required to be submitted to the Secretary under section 612, 
        each State shall annually describe how amounts under this 
        section--
                    ``(A) will be used to meet the requirements of this 
                Act; and
                    ``(B) will be allocated among the activities 
                described in this section to meet State priorities 
                based on input from local educational agencies.
            ``(6) Flexibility in using funds for part c.--Any State 
        eligible to receive a grant under section 619 may use funds 
        made available under paragraph (1)(A), subsection (f)(3), or 
        section 619(f)(5) to develop and implement a State policy 
        jointly with the lead agency under part C and the State 
        educational agency to provide early intervention services 
        (which shall include an educational component that promotes 
        school readiness and incorporates pre-literacy, language, and 
        numeracy skills) in accordance with part C to children with 
        disabilities who are eligible for services under section 619 
        and who previously received services under part C until such 
        children enter, or are eligible under State law to enter, 
        kindergarten.
    ``(f) Subgrants to Local Educational Agencies.--
            ``(1) Subgrants required.--Each State that receives a grant 
        under this section for any fiscal year shall distribute any 
        funds the State does not reserve under subsection (e) to local 
        educational agencies (including public charter schools that 
        operate as local educational agencies) in the State that have 
        established their eligibility under section 613 for use in 
        accordance with this part.
            ``(2) Procedure for allocations to local educational 
        agencies.--
                    ``(A) Procedure.--For each fiscal year for which 
                funds are allocated to States under subsection (d), 
                each State shall allocate funds under paragraph (1) as 
                follows:
                            ``(i) Base payments.--The State shall first 
                        award each local educational agency described 
                        in paragraph (1) the amount the local 
                        educational agency would have received under 
                        this section for fiscal year 1999, if the State 
                        had distributed 75 percent of its grant for 
                        that year under section 611(d) as section 
                        611(d) was then in effect.
                            ``(ii) Allocation of remaining funds.--
                        After making allocations under clause (i), the 
                        State shall--
                                    ``(I) allocate 85 percent of any 
                                remaining funds to those local 
                                educational agencies on the basis of 
                                the relative numbers of children 
                                enrolled in public and private 
                                elementary schools and secondary 
                                schools within the local educational 
                                agency's jurisdiction; and
                                    ``(II) allocate 15 percent of those 
                                remaining funds to those local 
                                educational agencies in accordance with 
                                their relative numbers of children 
                                living in poverty, as determined by the 
                                State educational agency.
            ``(3) Reallocation of funds.--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 local 
        educational agency with State and local funds, the State 
        educational agency may reallocate any portion of the funds 
        under this part that are not needed by that local educational 
        agency to provide a free appropriate public education 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 served by 
        those other local educational agencies.
    ``(g) Definitions.--For the purpose of this section--
            ``(1) the term `average per-pupil expenditure in public 
        elementary schools and secondary schools in the United States' 
        means--
                    ``(A) without regard to the source of funds--
                            ``(i) the aggregate current expenditures, 
                        during the second fiscal year preceding the 
                        fiscal year for which the determination is made 
                        (or, if satisfactory data for that year are not 
                        available, during the most recent preceding 
                        fiscal year for which satisfactory data are 
                        available) of all local educational agencies in 
                        the 50 States and the District of Columbia; 
                        plus
                            ``(ii) any direct expenditures by the State 
                        for the operation of those local educational 
                        agencies; divided by
                    ``(B) the aggregate number of children in average 
                daily attendance to whom those local educational 
                agencies provided free public education during that 
                preceding year; and
            ``(2) the term `State' means each of the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto Rico.
    ``(h) 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 
                through 21 who are enrolled in elementary schools 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 (c) for 
                that fiscal year.
                    ``(B) Calculation of number of children.--In the 
                case of Indian students aged 3 through 5 who are 
                enrolled in programs affiliated with the 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 had 
                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 through 21 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.
            ``(3) Applicability.--Section 616(a) shall apply to the 
        information described in this paragraph.
            ``(4) Payments for education and services for indian 
        children with disabilities aged 3 through 5.--
                    ``(A) In general.--With funds appropriated under 
                subsection (i), 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 through 
                5 on reservations served by elementary schools 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 (c).
                    ``(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 through 5 
                residing on reservations as reported annually, divided 
                by the total of those 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 through 5, 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 year 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.
            ``(5) 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 the plan, the Secretary 
        of the Interior shall consult with all interested and involved 
        parties. The plan shall be based on 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. The plan shall 
        also be distributed upon request to States, State and local 
        educational agencies, and other agencies providing services to 
        infants, toddlers, and children with disabilities, to tribes, 
        and to other interested parties.
            ``(6) Establishment of advisory board.--To meet the 
        requirements of section 612(a)(20), the Secretary of the 
        Interior shall establish, under the 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 under section 641 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 
                the BIA and with other local, State, and Federal 
                agencies in the provision of education for infants, 
                toddlers, and children 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, and children with disabilities; and
                    ``(E) provide assistance in the preparation of 
                information required under paragraph (2)(D).
            ``(7) Annual reports.--
                    ``(A) In general.--The advisory board established 
                under paragraph (6) shall prepare and submit to the 
                Secretary of the Interior and to 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).
    ``(i) Authorization of Appropriations.--For the purpose of carrying 
out this part, other than section 619, there are authorized to be 
appropriated--
            ``(1) $12,358,376,571 for fiscal year 2005;
            ``(2) $14,648,647,143 for fiscal year 2006;
            ``(3) $16,938,917,714 for fiscal year 2007;
            ``(4) $19,229,188,286 for fiscal year 2008;
            ``(5) $21,519,458,857 for fiscal year 2009;
            ``(6) $23,809,729,429 for fiscal year 2010;
            ``(7) $26,100,000,000 for fiscal year 2011; and
            ``(8) such sums as may be necessary for fiscal year 2012 
        and each succeeding fiscal year.

``SEC. 612. STATE ELIGIBILITY.

    ``(a) In General.--A State is eligible for assistance under this 
part for a fiscal year if the State submits a plan that provides 
assurances to the Secretary that the State has in effect policies and 
procedures to ensure that the State meets each of the following 
conditions:
            ``(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, including children with 
                disabilities who have been suspended or expelled from 
                school.
                    ``(B) Limitation.--The obligation to make a free 
                appropriate public education available to all children 
                with disabilities does not apply with respect to 
                children--
                            ``(i) aged 3 through 5 and 18 through 21 in 
                        a State to the extent that its application to 
                        those children would be inconsistent with State 
                        law or practice, or the order of any court, 
                        respecting the provision of public education to 
                        children in those age ranges; and
                            ``(ii) aged 18 through 21 to the extent 
                        that State law does not require that special 
                        education and related services under this part 
                        be provided to children with disabilities who, 
                        in the educational placement prior to their 
                        incarceration in an adult correctional 
                        facility--
                                    ``(I) were not actually identified 
                                as being a child with a disability 
                                under section 602(3); or
                                    ``(II) did not have an 
                                individualized education program under 
                                this part.
                    ``(C) State flexibility.--A State that provides 
                early intervention services in accordance with part C 
                to a child who is eligible for services under section 
                619, is not required to provide such child with a free 
                appropriate public education.
            ``(2) Full educational opportunity goal.--The State has 
        established a goal of providing full educational opportunity to 
        all children with disabilities and a detailed timetable for 
        accomplishing that goal.
            ``(3) Child find.--
                    ``(A) In general.--All children with disabilities 
                residing in the State, including children with 
                disabilities who are homeless children or are wards of 
                the State and children with disabilities attending 
                private schools, regardless of the severity of their 
                disabilities, and who are in need of special education 
                and related services, are identified, located, and 
                evaluated and a practical method is developed and 
                implemented to determine which children with 
                disabilities are currently receiving needed special 
                education and related services.
                    ``(B) Construction.--Nothing in this Act requires 
                that children be classified by their disability so long 
                as each child who has a disability listed in section 
                602 and who, by reason of that disability, needs 
                special education and related services is regarded as a 
                child with a disability under this part.
            ``(4) 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).
            ``(5) Least restrictive environment.--
                    ``(A) In general.--To the maximum extent 
                appropriate, children with disabilities, including 
                children in public or private institutions or other 
                care facilities, are educated with children who are not 
                disabled, and 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 is such 
                that education in regular classes with the use of 
                supplementary aids and services cannot be achieved 
                satisfactorily.
                    ``(B) Additional requirement.--
                            ``(i) In general.--A State funding 
                        mechanism shall not result in placements that 
                        violate the requirements of subparagraph (A), 
                        and a State shall not use a funding mechanism 
                        by which the State distributes funds on the 
                        basis of the type of setting in which a child 
                        is served that will result in the failure to 
                        provide a child with a disability a free 
                        appropriate public education according to the 
                        unique needs of the child as described in the 
                        child's IEP.
                            ``(ii) Assurance.--If the State does not 
                        have policies and procedures to ensure 
                        compliance with clause (i), the State shall 
                        provide the Secretary an assurance that the 
                        State will revise the funding mechanism as soon 
                        as feasible to ensure that such mechanism does 
                        not result in such placements.
            ``(6) 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 ensure 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.
            ``(7) Evaluation.--Children with disabilities are evaluated 
        in accordance with subsections (a) and (b) of section 614.
            ``(8) Confidentiality.--Agencies in the State comply with 
        section 617(c) (relating to the confidentiality of records and 
        information).
            ``(9) 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 and effective 
        transition to those preschool programs in a manner consistent 
        with section 637(a)(8). By the third birthday of such a child, 
        an individualized education program or, if consistent with 
        sections 614(d)(2)(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 arranged by the designated lead 
        agency under section 635(a)(10).
            ``(10) Children in private schools.--
                    ``(A) Children enrolled in private schools by their 
                parents.--
                            ``(i) In general.--To the extent consistent 
                        with the number and location of children with 
                        disabilities in the State who are enrolled by 
                        their parents in private elementary schools and 
                        secondary schools in the school district served 
                        by a local educational agency, provision is 
                        made for the participation of those children in 
                        the program assisted or carried out under this 
                        part by providing for such children special 
                        education and related services in accordance 
                        with the following requirements, unless the 
                        Secretary has arranged for services to those 
                        children under subsection (f):
                                    ``(I) Amounts to be expended for 
                                the provision of those services 
                                (including direct services to 
                                parentally placed children) by the 
                                local educational agency shall be equal 
                                to a proportionate amount of Federal 
                                funds made available under this part.
                                    ``(II) Such services may be 
                                provided to children with disabilities 
                                on the premises of private, including 
                                religious, schools, to the extent 
                                consistent with law.
                                    ``(III) Each local educational 
                                agency shall maintain in its records 
                                and provide to the State educational 
                                agency the number of children evaluated 
                                under this paragraph, the number of 
                                children determined to be children with 
                                disabilities, and the number of 
                                children served under this subsection.
                            ``(ii) Child-find requirement.--
                                    ``(I) In general.--The requirements 
                                of paragraph (3) of this subsection 
                                (relating to child find) shall apply 
                                with respect to children with 
                                disabilities in the State who are 
                                enrolled in private, including 
                                religious, elementary schools and 
                                secondary schools. Such child find 
                                process shall be conducted in a 
                                comparable time period as for other 
                                students attending public schools in 
                                the local educational agency.
                                    ``(II) Equitable participation.--
                                The child find process shall be 
                                designed to ensure the equitable 
                                participation of parentally placed 
                                private school children and an accurate 
                                count of such children.
                                    ``(III) Activities.--In carrying 
                                out this clause, the local educational 
                                agency, or where applicable, the State 
                                educational agency, shall undertake 
                                activities similar to those activities 
                                undertaken for its public school 
                                children.
                                    ``(IV) Cost.--The cost of carrying 
                                out this clause, including individual 
                                evaluations, may not be considered in 
                                determining whether a local education 
                                agency has met its obligations under 
                                clause (i).
                            ``(iii) Consultation.--To ensure timely and 
                        meaningful consultation, a local educational 
                        agency, or where appropriate, a State 
                        educational agency, shall consult with 
                        representatives of children with disabilities 
                        who are parentally placed in private schools, 
                        during the design and development of special 
                        education and related services for these 
                        children, including consultation regarding--
                                    ``(I) the child find process and 
                                how parentally placed private school 
                                children suspected of having a 
                                disability can participate equitably, 
                                including how parents, teachers, and 
                                private school officials will be 
                                informed of the process;
                                    ``(II) the determination of the 
                                proportionate share of Federal funds 
                                available to serve parentally placed 
                                private school children with 
                                disabilities under this paragraph, 
                                including the determination of how the 
                                proportionate share of those funds were 
                                calculated;
                                    ``(III) the consultation process 
                                among the school district, private 
                                school officials, and parents of 
                                parentally placed private school 
                                children with disabilities, including 
                                how such process will operate 
                                throughout the school year to ensure 
                                that parentally placed children with 
                                disabilities identified through the 
                                child find process can meaningfully 
                                participate in special education and 
                                related services;
                                    ``(IV) how, where, and by whom 
                                special education and related services 
                                will be provided for parentally placed 
                                private school children, including a 
                                discussion of alternate service 
                                delivery mechanisms, how such services 
                                will be apportioned if funds are 
                                insufficient to serve all children, and 
                                how and when these decisions will be 
                                made; and
                                    ``(V) how, if the local educational 
                                agency disagrees with the views of the 
                                private school officials on the 
                                provision of services through a 
                                contract, the local educational agency 
                                shall provide to the private school 
                                officials a written explanation of the 
                                reasons why the local educational 
                                agency chose not to provide services 
                                through a contract.
                            ``(iv) Written affirmation.--When timely 
                        and meaningful consultation as required by this 
                        section has occurred, the local educational 
                        agency shall obtain a written affirmation 
                        signed by the representatives of participating 
                        private schools, and if such officials do not 
                        provide such affirmation within a reasonable 
                        period of time, the local educational agency 
                        shall forward the documentation of the 
                        consultation process to the State educational 
                        agency.
                            ``(v) Compliance.--
                                    ``(I) In general.--A private school 
                                official shall have the right to 
                                complain to the State educational 
                                agency that the local educational 
                                agency did not engage in consultation 
                                that was meaningful and timely, or did 
                                not give due consideration to the views 
                                of the private school official.
                                    ``(II) Procedure.--If the private 
                                school official wishes to complain, the 
                                official shall provide the basis of the 
                                noncompliance with this section by the 
                                local educational agency to the State 
                                educational agency, and the local 
                                educational agency shall forward the 
                                appropriate documentation to the State 
                                educational agency. If the private 
                                school official is dissatisfied with 
                                the decision of the State educational 
                                agency, such official may complain to 
                                the Secretary by providing the basis of 
                                the noncompliance with this section by 
                                the local educational agency to the 
                                Secretary, and the State educational 
                                agency shall forward the appropriate 
                                documentation to the Secretary.
                            ``(vi) Provision of equitable services.--
                                    ``(I) Direct services.--To the 
                                extent practicable, the local 
                                educational agency shall provide direct 
                                services to children with disabilities 
                                parentally placed in private schools.
                                    ``(II) Directly or through 
                                contracts.--A public agency may provide 
                                special education and related services 
                                directly or through contracts with 
                                public and private agencies, 
                                organizations, and institutions.
                                    ``(III) Secular, neutral, 
                                nonideological.--Special education and 
                                related services provided to children 
                                with disabilities attending private 
                                schools, including materials and 
                                equipment, shall be secular, neutral, 
                                and nonideological.
                            ``(vii) Public control of funds.--The 
                        control of funds used to provide special 
                        education and related services under this 
                        section, and title to materials, equipment, and 
                        property purchased with those funds, shall be 
                        in a public agency for the uses and purposes 
                        provided in this Act, and a public agency shall 
                        administer the funds and property.
                    ``(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 such children are placed in, or referred to, 
                        such schools or facilities by the State or 
                        appropriate local educational agency as the 
                        means of carrying out the requirements of this 
                        part or any other applicable law requiring the 
                        provision of special education and related 
                        services to all children with disabilities 
                        within such State.
                            ``(ii) Standards.--In all cases described 
                        in clause (i), the State educational agency 
                        shall determine whether such schools and 
                        facilities meet standards that apply to State 
                        and local educational agencies and that 
                        children so served have all the rights the 
                        children would have if served by such agencies.
                    ``(C) Payment for education of children enrolled in 
                private schools without consent of or referral by the 
                public agency.--
                            ``(i) In general.--Subject to subparagraph 
                        (A), this part does not require a local 
                        educational agency to pay for the cost of 
                        education, including special education and 
                        related services, of a child with a disability 
                        at a private school or facility if that agency 
                        made a free appropriate public education 
                        available to the child and the parents elected 
                        to place the child in such private school or 
                        facility.
                            ``(ii) Reimbursement for private school 
                        placement.--If the parents of a child with a 
                        disability, who previously received special 
                        education and related services under the 
                        authority of a public agency, enroll the child 
                        in a private elementary school or secondary 
                        school without the consent of or referral by 
                        the public agency, a court or a hearing officer 
                        may require the agency to reimburse the parents 
                        for the cost of that enrollment if the court or 
                        hearing officer finds that the agency had not 
                        made a free appropriate public education 
                        available to the child in a timely manner prior 
                        to that enrollment.
                            ``(iii) Limitation on reimbursement.--The 
                        cost of reimbursement described in clause (ii) 
                        may be reduced or denied--
                                    ``(I) if--
                                            ``(aa) at the most recent 
                                        IEP meeting that the parents 
                                        attended prior to removal of 
                                        the child from the public 
                                        school, the parents did not 
                                        inform the IEP Team that they 
                                        were rejecting the placement 
                                        proposed by the public agency 
                                        to provide a free appropriate 
                                        public education to their 
                                        child, including stating their 
                                        concerns and their intent to 
                                        enroll their child in a private 
                                        school at public expense; or
                                            ``(bb) 10 business days 
                                        (including any holidays that 
                                        occur on a business day) prior 
                                        to the removal of the child 
                                        from the public school, the 
                                        parents did not give written 
                                        notice to the public agency of 
                                        the information described in 
                                        division (aa);
                                    ``(II) if, prior to the parents' 
                                removal of the child from the public 
                                school, the public agency informed the 
                                parents, through the notice 
                                requirements described in section 
                                615(b)(3), of its intent to evaluate 
                                the child (including a statement of the 
                                purpose of the evaluation that was 
                                appropriate and reasonable), but the 
                                parents did not make the child 
                                available for such evaluation; or
                                    ``(III) upon a judicial finding of 
                                unreasonableness with respect to 
                                actions taken by the parents.
                            ``(iv) Exception.--Notwithstanding the 
                        notice requirement in clause (iii)(I), the cost 
                        of reimbursement--
                                    ``(I) shall not be reduced or 
                                denied for failure to provide such 
                                notice if--
                                            ``(aa) the school prevented 
                                        the parent from providing such 
                                        notice; or
                                            ``(bb) the parents had not 
                                        received notice, pursuant to 
                                        section 615, of the notice 
                                        requirement in clause (iii)(I); 
                                        and
                                    ``(II) may, in the discretion of a 
                                court or a hearing officer, not be 
                                reduced or denied for failure to 
                                provide such notice if--
                                            ``(aa) the parent is 
                                        illiterate and cannot write in 
                                        English; or
                                            ``(bb) compliance with 
                                        clause (iii)(I) would likely 
                                        have resulted in physical or 
                                        serious emotional harm to the 
                                        child.
            ``(11) 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.
                    ``(C) Exception.--Notwithstanding subparagraphs (A) 
                and (B), the Governor (or another individual pursuant 
                to State law), consistent with State law, may assign to 
                any public agency in the State the responsibility of 
                ensuring that the requirements of this part are met 
                with respect to children with disabilities who are 
                convicted as adults under State law and incarcerated in 
                adult prisons.
            ``(12) Obligations related to and methods of ensuring 
        services.--
                    ``(A) Establishing responsibility for services.--
                The Chief Executive Officer of a State 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 State educational agency, 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 educational 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 educational 
                        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 
                        pursuant to subparagraph (A), to provide or pay 
                        for any services that are also considered 
                        special education or related services (such as, 
                        but not limited to, services described in 
                        section 602(1) relating to assistive technology 
                        devices, 602(2) relating to assistive 
                        technology services, 602(25) relating to 
                        related services, 602(32) relating to 
                        supplementary aids and services, and 602(33) 
                        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 pursuant to subparagraph (A) or an 
                        agreement pursuant to subparagraph (C).
                            ``(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 responsible for 
                        developing the child's IEP) shall provide or 
                        pay for such services to the child. Such local 
                        educational agency or State agency is 
                        authorized to 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 
                        educational agency or State agency pursuant to 
                        the terms of the interagency agreement or other 
                        mechanism 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 written methods 
                        as determined by the Chief Executive Officer of 
                        the State or designee of the officer and 
                        approved by the Secretary.
            ``(13) 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.
            ``(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, 
                including that those personnel have the content 
                knowledge and skills to serve children with 
                disabilities.
                    ``(B) Related services personnel and 
                paraprofessionals.--The standards under subparagraph 
                (A) include standards for related services personnel 
                and paraprofessionals that--
                            ``(i) are 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) ensure that related services 
                        personnel who deliver services in their 
                        discipline or profession meet the requirements 
                        of clause (i) and have not had certification or 
                        licensure requirements waived on an emergency, 
                        temporary, or provisional basis; and
                            ``(iii) allow paraprofessionals and 
                        assistants who are appropriately trained and 
                        supervised, in accordance with State law, 
                        regulation, or written policy, in meeting the 
                        requirements of this part to be used to assist 
                        in the provision of special education and 
                        related services under this part to children 
                        with disabilities.
                    ``(C) Standards for special education teachers.--
                            ``(i) In general.--The standards described 
                        in subparagraph (A) shall ensure that each 
                        person employed as a special education teacher 
                        in the State who teaches in an elementary, 
                        middle, or secondary school is highly qualified 
                        not later than the end of the 2006-2007 school 
                        year.
                            ``(ii) Compliance.--Notwithstanding 
                        paragraphs (2) and (3) of section 1119(a) of 
                        the Elementary and Secondary Education Act of 
                        1965, for purposes of determining compliance 
                        with such paragraphs--
                                    ``(I) the Secretary, the State 
                                educational agency, and local 
                                educational agencies shall apply the 
                                definition of highly qualified in 
                                section 602(10) to special education 
                                teachers; and
                                    ``(II) the State shall ensure that 
                                all special education teachers teaching 
                                in core academic subjects within the 
                                State are highly qualified (as defined 
                                in section 602(10)) not later than the 
                                end of the 2006-2007 school year.
                            ``(iii) Parents' right to know.--In 
                        carrying out section 1111(h)(6) of the 
                        Elementary and Secondary Education Act of 1965 
                        with respect to special education teachers, a 
                        local educational agency shall--
                                    ``(I) include in a response to a 
                                request under such section any 
                                additional information needed to 
                                demonstrate that the teacher meets the 
                                applicable requirements of section 
                                602(10) relating to certification or 
                                licensure as a special education 
                                teacher; and
                                    ``(II) apply the definition of 
                                highly qualified in section 602(10) in 
                                carrying out section 1111(h)(6)(B)(ii).
                    ``(D) Policy.--In implementing this section, a 
                State shall adopt a policy that includes a requirement 
                that local educational agencies in the State take 
                measurable steps to recruit, hire, train, and retain 
                highly qualified personnel to provide special education 
                and related services under this part to children with 
                disabilities.
                    ``(E) Rule of construction.--Notwithstanding any 
                other individual right of action that a parent or 
                student may maintain under this part, nothing in this 
                subsection shall be construed to create a right of 
                action on behalf of an individual student for the 
                failure of a particular State educational agency or 
                local educational agency staff person to be highly 
                qualified, or to prevent a parent from filing a 
                complaint about staff qualifications with the State 
                educational agency as provided for under this part.
            ``(15) Performance goals and indicators.--The State--
                    ``(A) has established goals for the performance of 
                children with disabilities in the State that--
                            ``(i) promote the purposes of this Act, as 
                        stated in section 601(d);
                            ``(ii) are the same as the State's 
                        definition of adequate yearly progress, 
                        including the State's objectives for progress 
                        by children with disabilities, under section 
                        1111(b)(2)(C) of the Elementary and Secondary 
                        Education Act of 1965;
                            ``(iii) address graduation rates and drop 
                        out rates, as well as such other factors as the 
                        State may determine; and
                            ``(iv) are consistent, to the extent 
                        appropriate, with any other goals and standards 
                        for children established by the State;
                    ``(B) has established performance indicators the 
                State will use to assess progress toward achieving the 
                goals described in subparagraph (A), including 
                measurable annual objectives for progress by children 
                with disabilities under section 
                1111(b)(2)(C)(v)(II)(cc) of the Elementary and 
                Secondary Education Act of 1965; and
                    ``(C) will annually 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).
            ``(16) Participation in assessments.--
                    ``(A) In general.-- All children with disabilities 
                are included in all general State and districtwide 
                assessment programs and accountability systems, 
                including assessments and accountability systems 
                described under section 1111 of the Elementary and 
                Secondary Education Act of 1965, with appropriate 
                accommodations, alternate assessments where necessary, 
                and as indicated in their respective individualized 
                education programs.
                    ``(B) Accommodation guidelines.--The State (or, in 
                the case of a districtwide assessment, the local 
                educational agency) has developed guidelines for the 
                provision of appropriate accommodations.
                    ``(C) Alternate assessments.--
                            ``(i) In general.--The State (or, in the 
                        case of a districtwide assessment, the local 
                        educational agency) has developed and 
                        implemented guidelines for the participation of 
                        children with disabilities in alternate 
                        assessments for those children who cannot 
                        participate in regular assessments under 
                        subparagraph (B) as indicated in their 
                        respective individualized education programs.
                            ``(ii) Requirements for alternate 
                        assessments.--The guidelines under clause (i) 
                        shall provide for alternate assessments that--
                                    ``(I) are aligned with the State's 
                                challenging academic content and 
                                academic achievement standards; and
                                    ``(II) if the State has adopted 
                                alternate academic achievement 
                                standards permitted under section 
                                1111(b)(1) of the Elementary and 
                                Secondary Education Act of 1965, 
                                measure the achievement of children 
                                with disabilities against those 
                                standards.
                            ``(iii) Conduct of alternative 
                        assessments.--The State conducts the alternate 
                        assessments described in this subparagraph.
                    ``(D) Reports.--The State educational agency (or, 
                in the case of a districtwide assessment, the local 
                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, and the number of those children 
                        who were provided accommodations in order to 
                        participate in those assessments.
                            ``(ii) The number of children with 
                        disabilities participating in alternate 
                        assessments described in subparagraph 
                        (C)(ii)(I).
                            ``(iii) The number of children with 
                        disabilities participating in alternate 
                        assessments described in subparagraph 
                        (C)(ii)(II).
                            ``(iv) The performance of children with 
                        disabilities on regular assessments and on 
                        alternate assessments (if the number of 
                        children with disabilities participating in 
                        those assessments is sufficient to yield 
                        statistically reliable information and 
                        reporting that information will not reveal 
                        personally identifiable information about an 
                        individual student), compared with the 
                        achievement of all children, including children 
                        with disabilities, on those assessments.
                    ``(E) Universal design.--The State educational 
                agency (or, in the case of a districtwide assessment, 
                the local educational agency) shall, to the extent 
                feasible, use universal design principles in developing 
                and administering any assessments under this paragraph.
            ``(17) Supplementation of state, local, and other federal 
        funds.--
                    ``(A) Expenditures.--Funds paid to a State under 
                this part will be expended in accordance with all the 
                provisions of this part.
                    ``(B) Prohibition against commingling.--Funds paid 
                to a State under this part will not be commingled with 
                State funds.
                    ``(C) Prohibition against supplantation and 
                conditions for waiver by secretary.--Except as provided 
                in section 613, funds paid to a State under this part 
                will be used to supplement the level of Federal, State, 
                and local funds (including funds that are not under the 
                direct control of State or local educational agencies) 
                expended for special education and related services 
                provided to children with disabilities under this part 
                and in no case to supplant such Federal, State, and 
                local funds, except that, where the State provides 
                clear and convincing evidence that all children with 
                disabilities have available to them a free appropriate 
                public education, the Secretary may waive, in whole or 
                in part, the requirements of this subparagraph if the 
                Secretary concurs with the evidence provided by the 
                State.
            ``(18) Maintenance of state financial support.--
                    ``(A) In general.--The State does not reduce the 
                amount of State financial support for special education 
                and related services for children with disabilities, or 
                otherwise made available because of the excess costs of 
                educating those children, below the amount of that 
                support for the preceding fiscal year.
                    ``(B) Reduction of funds for failure to maintain 
                support.--The Secretary shall reduce the allocation of 
                funds under section 611 for any fiscal year following 
                the fiscal year in which the State fails to comply with 
                the requirement of subparagraph (A) by the same amount 
                by which the State fails to meet the requirement.
                    ``(C) Waivers for exceptional or uncontrollable 
                circumstances.--The Secretary may waive the requirement 
                of subparagraph (A) for a State, for 1 fiscal year at a 
                time, if the Secretary determines that--
                            ``(i) granting a waiver would be equitable 
                        due to exceptional or uncontrollable 
                        circumstances such as a natural disaster or a 
                        precipitous and unforeseen decline in the 
                        financial resources of the State; or
                            ``(ii) the State meets the standard in 
                        paragraph (17)(C) for a waiver of the 
                        requirement to supplement, and not to supplant, 
                        funds received under this part.
                    ``(D) Subsequent years.--If, for any year, a State 
                fails to meet the requirement of subparagraph (A), 
                including any year for which the State is granted a 
                waiver under subparagraph (C), the financial support 
                required of the State in future years under 
                subparagraph (A) shall be the amount that would have 
                been required in the absence of that failure and not 
                the reduced level of the State's support.
            ``(19) 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.
            ``(20) 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 
                        ages birth through 26, including not less than 
                        1 foster parent of a child with disabilities 
                        who is a ward of the State, not less than 1 
                        grandparent or other relative who is acting in 
                        the place of a natural or adoptive parent, and 
                        not less than 1 representative of children with 
                        disabilities in military families;
                            ``(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, 
                        including officials who carry out activities 
                        under subtitle B of title VII of the McKinney-
                        Vento Homeless Assistance Act;
                            ``(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) representatives of private schools 
                        and public charter schools;
                            ``(ix) at least 1 representative of a 
                        vocational, community, or business organization 
                        concerned with the provision of transition 
                        services to children with disabilities; and
                            ``(x) representatives from the State 
                        juvenile and adult corrections agencies.
                            ``(xi) representatives from the State child 
                        welfare agency; and
                            ``(xii) a representative of wards of the 
                        State who are in foster care, such as an 
                        attorney for children in foster care, a 
                        guardian ad litem, a court appointed special 
                        advocate, or a judge.
                    ``(C) Special rule.--A majority of the members of 
                the panel shall be individuals with disabilities ages 
                birth through 26 or parents of such individuals.
                    ``(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 the 
                        education of children with disabilities;
                            ``(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.
            ``(21) Suspension and expulsion rates.--
                    ``(A) In general.--The State educational agency 
                examines data to determine if significant discrepancies 
                are occurring in the rate of long-term suspensions and 
                expulsions of children with disabilities--
                            ``(i) among local educational agencies in 
                        the State; or
                            ``(ii) compared to such rates for 
                        nondisabled children within such agencies.
                    ``(B) Review and revision of policies.--If such 
                discrepancies are occurring, the State educational 
                agency reviews and, if appropriate, revises (or 
                requires the affected State or local educational agency 
                to revise) its policies, procedures, and practices 
                relating to the development and implementation of IEPs, 
                the use of behavioral interventions, and procedural 
                safeguards, to ensure that such policies, procedures, 
                and practices comply with this Act.
            ``(22) Access to instructional materials.--
                    ``(A) In general.--The State adopts the national 
                Instructional Materials Accessibility Standard 
                described in section 675(a) for the purposes of 
                providing instructional materials to blind persons or 
                other persons with print disabilities in a timely 
                manner after the publication of the standard in the 
                Federal Register.
                    ``(B) Preparation and delivery of files.--Not later 
                than 2 years after the date of enactment of the 
                Individuals with Disabilities Education Improvement Act 
                of 2004, a State educational agency, as part of any 
                print instructional materials adoption process, 
                procurement contract, or other practice or instrument 
                used for purchase of print instructional materials, 
                enters into a written contract with the publisher of 
                the print instructional materials to--
                            ``(i) prepare, and on or before delivery of 
                        the print instructional materials, provide to 
                        the National Instructional Materials Access 
                        Center, established pursuant to section 675(b), 
                        electronic files containing the contents of the 
                        print instructional materials using the 
                        Instructional Materials Accessibility Standard; 
                        or
                            ``(ii) purchase instructional materials 
                        from a publisher that are produced in or may be 
                        rendered in the specialized formats described 
                        in section 675(a)(4)(C).
                    ``(C) Assistive technology.--In carrying out 
                subparagraph (B), the State educational agency, to the 
                maximum extent possible, shall work collaboratively 
                with the State agency responsible for assistive 
                technology programs.
    ``(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 effective date of the Individuals with Disabilities 
        Education Improvement Act of 2004, 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 determines 
        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.--If, after 
        the effective date of the Individuals with Disabilities 
        Education Improvement Act of 2004, the provisions of this Act 
        are amended (or the regulations developed to carry out this Act 
        are amended), there is a new interpretation of this Act by a 
        Federal court or a State's highest court, or there is an 
        official finding of noncompliance with Federal law or 
        regulations, then the Secretary may require a State to modify 
        its application only to the extent necessary to ensure the 
        State's compliance with this part.
    ``(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 in 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 was prohibited by law from providing for the 
        equitable participation in special programs of children with 
        disabilities enrolled in private elementary schools and 
        secondary schools as required by subsection (a)(10)(A), or if 
        the Secretary determines that a State educational agency, local 
        educational agency, or other entity has substantially failed or 
        is unwilling to provide for such equitable participation, then 
        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 
                may 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 will 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)(10)(A).
            ``(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 ELIGIBILITY.

    ``(a) In General.--A local educational agency is eligible for 
assistance under this part for a fiscal year if such agency submits a 
plan that provides assurances to the State educational agency that the 
local educational agency meets each of the following conditions:
            ``(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 shall be expended in 
                accordance with the applicable provisions of this part 
                and--
                            ``(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; and
                            ``(iii) shall not be used, except as 
                        provided in subparagraphs (B) and (C), to 
                        reduce the level of expenditures for the 
                        education of children with disabilities made by 
                        the local educational agency from local funds 
                        below the level of those expenditures for the 
                        preceding fiscal year.
                    ``(B) Exception.--Notwithstanding the restriction 
                in subparagraph (A)(iii), a local educational agency 
                may reduce the level of expenditures where such 
                reduction is attributable to--
                            ``(i) the voluntary departure, by 
                        retirement or otherwise, or departure for just 
                        cause, 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.
                    ``(C) Treatment of federal funds in certain fiscal 
                years.--
                            ``(i) 8 percent rule.--Notwithstanding 
                        clauses (ii) and (iii) of subparagraph (A), a 
                        local educational agency may treat as local 
                        funds, for the purposes of such clauses, not 
                        more than 8 percent of the amount of funds the 
                        local educational agency receives under this 
                        part.
                            ``(ii) 40 percent rule.--Notwithstanding 
                        clauses (ii) and (iii) of subparagraph (A), for 
                        any fiscal year for which States are allocated 
                        the maximum amount of grants pursuant to 
                        section 611(a)(2), a local educational agency 
                        may treat as local funds, for the purposes of 
                        such clauses, not more than 40 percent of the 
                        amount of funds the local educational agency 
                        receives under this part, subject to clause 
                        (iv).
                            ``(iii) Early intervening services.--
                                    ``(I) 8 percent rule.--If a local 
                                educational agency exercises authority 
                                pursuant to clause (i), the 8 percent 
                                funds shall be counted toward the 
                                percentage and amount of funds that may 
                                be used to provide early intervening 
                                educational services pursuant to 
                                subsection (f).
                                    ``(II) 40 percent rule.--If a local 
                                educational agency exercises authority 
                                pursuant to clause (ii), the local 
                                educational agency shall use an amount 
                                of the 40 percent funds from clause 
                                (ii) that represents 15 percent of the 
                                total amount of funds the local 
                                educational agency receives under this 
                                part, to provide early intervening 
                                educational services pursuant to 
                                subsection (f).
                            ``(iv) Special rule.--Funds treated as 
                        local funds pursuant to clause (i) or (ii) may 
                        be considered non-Federal or local funds for 
                        the purposes of--
                                    ``(I) clauses (ii) and (iii) of 
                                subparagraph (A); and
                                    ``(II) the provision of the local 
                                share of costs for title XIX of the 
                                Social Security Act.
                            ``(v) Report.--For each fiscal year in 
                        which a local educational agency exercises its 
                        authority pursuant to this subparagraph and 
                        treats Federal funds as local funds, the local 
                        educational agency shall report to the State 
                        educational agency the amount of funds so 
                        treated and the activities that were funded 
                        with such funds.
                    ``(D) Schoolwide programs under title i of the 
                esea.--Notwithstanding subparagraph (A) or any other 
                provision of this part, a local educational agency may 
                use funds received under this part for any fiscal year 
                to carry out a schoolwide program under section 1114 of 
                the Elementary and Secondary Education Act of 1965, 
                except that the amount so used in any such program 
                shall not exceed--
                            ``(i) the number of children with 
                        disabilities participating in the schoolwide 
                        program; multiplied by
                            ``(ii)(I) the amount received by the local 
                        educational agency under this part for that 
                        fiscal year; divided by
                            ``(II) the number of children with 
                        disabilities in the jurisdiction of that 
                        agency.
            ``(3) Personnel development.--The local educational agency 
        shall ensure that all personnel necessary to carry out this 
        part are appropriately and adequately prepared, consistent with 
        the requirements of section 612(a)(14) of this Act and section 
        2122 of the Elementary and Secondary Education Act of 1965.
            ``(4) Permissive use of funds.--
                    ``(A) Uses.--Notwithstanding paragraph (2)(A) or 
                section 612(a)(17)(B) (relating to commingled funds), 
                funds provided to the local educational agency under 
                this part may be used for the following activities:
                            ``(i) Services and aids that also benefit 
                        nondisabled children.--For the costs of special 
                        education and related services, and 
                        supplementary aids and services, provided in a 
                        regular class or other education-related 
                        setting to a child with a disability in 
                        accordance with the individualized education 
                        program of the child, even if 1 or more 
                        nondisabled children benefit from such 
                        services.
                            ``(ii) Early intervening services.--To 
                        develop and implement coordinated, early 
                        intervening educational services in accordance 
                        with subsection (f).
                    ``(B) Administrative case management.--A local 
                educational agency may use funds received under this 
                part to purchase appropriate technology for 
                recordkeeping, data collection, and related case 
                management activities of teachers and related services 
                personnel providing services described in the 
                individualized education program of children with 
                disabilities, that is needed for the implementation of 
                such case management activities.
            ``(5) Treatment of charter schools and their students.--In 
        carrying out this part with respect to charter schools that are 
        public schools of the local educational agency, the local 
        educational agency--
                    ``(A) serves children with disabilities attending 
                those charter schools in the same manner as the local 
                educational agency serves children with disabilities in 
                its other schools, including providing supplementary 
                and related services on site at the charter school to 
                the same extent to which the local educational agency 
                has a policy or practice of providing such services on 
                the site to its other public schools; and
                    ``(B) provides funds under this part to those 
                charter schools on the same basis, including 
                proportional distribution based on relative enrollment 
                of children with disabilities, and at the same time, as 
                the local educational agency distributes State, local, 
                or a combination of State and local, funds to those 
                charter schools under the State's charter school law.
            ``(6) Purchase of instructional materials.--Not later than 
        2 years after the date of enactment of the Individuals with 
        Disabilities Education Improvement Act of 2004, a local 
        educational agency, when purchasing print instructional 
        materials, acquires these instructional materials in the same 
        manner as a State educational agency described in section 
        612(a)(22).
            ``(7) 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 (15) and (16) of section 612(a), 
        information relating to the performance of children with 
        disabilities participating in programs carried out under this 
        part.
            ``(8) 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.
            ``(9) Records regarding migratory children with 
        disabilities.--The local educational agency shall cooperate in 
        the Secretary's efforts under section 1308 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 6398) to ensure 
        the linkage of records pertaining to migratory children with a 
        disability for the purpose of electronically exchanging, among 
        the States, health and educational information regarding such 
        children.
    ``(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 
        effective date of the Individuals with Disabilities Education 
        Improvement Act of 2004, 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 local educational agency submits to the 
        State educational agency such modifications as the local 
        educational agency determines necessary.
            ``(3) Modifications required by state educational agency.--
        If, after the effective date of the Individuals with 
        Disabilities Education Improvement Act of 2004, the provisions 
        of this Act are amended (or the regulations developed to carry 
        out this Act are amended), there is a new interpretation of 
        this Act by Federal or State courts, or there is an official 
        finding of noncompliance with Federal or State law or 
        regulations, then the State educational agency may require a 
        local educational agency to modify its application only to the 
        extent necessary to ensure the local educational agency's 
        compliance with this part or State law.
    ``(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, then the State educational agency shall notify the 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 agency or local 
        educational agency in receipt of a 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) Joint establishment.--
                    ``(A) 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 will be ineligible under 
                this section because the local educational agency will 
                not be able to establish and maintain programs of 
                sufficient size and scope to effectively meet the needs 
                of children with disabilities.
                    ``(B) Charter school exception.--A State 
                educational agency may not require a charter school 
                that is a local educational agency to jointly establish 
                its eligibility under subparagraph (A) unless the 
                charter school is explicitly permitted to do so under 
                the State's charter school law.
            ``(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(f) 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)(5).
    ``(f) Early Intervening Services.--
            ``(1) In general.--A local educational agency may not use 
        more than 15 percent of the amount such agency receives under 
        this part for any fiscal year, less any amount treated as local 
        funds pursuant to subsection (a)(2)(C), if any, in combination 
        with other amounts (which may include amounts other than 
        education funds), to develop and implement coordinated, early 
        intervening services, which may include interagency financing 
        structures, for students in kindergarten through grade 12 (with 
        a particular emphasis on students in kindergarten through grade 
        3) who do not meet the definition of a child with a disability 
        under section 602(3) but who need additional academic and 
        behavioral support to succeed in a general education 
        environment.
            ``(2) Activities.--In implementing coordinated, early 
        intervening services under this subsection, a local educational 
        agency may carry out activities that include--
                    ``(A) professional development (which may be 
                provided by entities other than local educational 
                agencies) for teachers and other school staff to enable 
                such personnel to deliver scientifically based academic 
                and behavioral interventions, including scientifically 
                based literacy instruction, and, where appropriate, 
                instruction on the use of adaptive and instructional 
                software;
                    ``(B) providing educational and behavioral 
                evaluations, services, and supports, including 
                scientifically based literacy instruction; and
                    ``(C) developing and implementing interagency 
                financing structures for the provision of such services 
                and supports.
            ``(3) Construction.--Nothing in this subsection shall be 
        construed to either limit or create a right to a free 
        appropriate public education under this part.
            ``(4) Reporting.--Each local educational agency that 
        develops and maintains coordinated, early intervening services 
        with funds made available for this subsection, shall annually 
        report to the State educational agency on--
                    ``(A) the number of children served under this 
                subsection; and
                    ``(B) the number of children served under this 
                subsection who are subsequently referred to special 
                education.
            ``(5) Coordination with certain projects under elementary 
        and secondary education act of 1965.--Funds made available to 
        carry out this subsection may be used to carry out coordinated, 
        early intervening services aligned with activities funded by, 
        and carried out under, the Elementary and Secondary Education 
        Act of 1965 if such funds are used to supplement, and not 
        supplant, funds made available under the Elementary and 
        Secondary Education Act of 1965 for the activities and services 
        assisted under this subsection.
            ``(6) Report to congress.--Not later than 1 year after the 
        date of enactment of the Individuals with Disabilities 
        Education Improvement Act of 2004, the Comptroller General 
        shall conduct a study on the types of services provided to 
        children served under this subsection, and shall submit a 
        report to Congress regarding the study.
    ``(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 
        educational agency, or for whom that State agency is 
        responsible, if the State educational agency determines that 
        the local educational 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 1 or more local educational agencies in order to 
                establish and maintain such programs; or
                    ``(D) has 1 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(f) 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.
    ``(i) Disciplinary Information.--The State may require that a local 
educational agency include in the records of a child with a disability 
a statement of any current or previous disciplinary action that has 
been taken against the child and transmit such statement to the same 
extent that such disciplinary information is included in, and 
transmitted with, the student records of nondisabled children. The 
statement may include a description of any behavior engaged in by the 
child that required disciplinary action, a description of the 
disciplinary action taken, and any other information that is relevant 
to the safety of the child and other individuals involved with the 
child. If the State adopts such a policy, and the child transfers from 
1 school to another, the transmission of any of the child's records 
shall include both the child's current individualized education program 
and any such statement of current or previous disciplinary action that 
has been taken against the child.
    ``(j) State Agency Flexibility.--
            ``(1) Treatment of federal funds in certain fiscal years.--
        If a State educational agency pays or reimburses local 
        educational agencies within the State for not less than 80 
        percent of the non-Federal share of the costs of special 
        education and related services, or the State is the sole 
        provider of free appropriate public education or direct 
        services pursuant to section 612(b), then the State educational 
        agency, notwithstanding sections 612(a) (17) and (18) and 
        612(b), may treat funds allocated pursuant to section 611 as 
        general funds available to support the educational purposes 
        described in paragraph (2) (A) and (B).
            ``(2) Conditions.--A State educational agency may use funds 
        in accordance with paragraph (1) subject to the following 
        conditions:
                    ``(A) 8 percent rule.--A State educational agency 
                may treat not more than 8 percent of the funds the 
                State educational agency receives under this part as 
                general funds to support any educational purpose 
                described in the Elementary and Secondary Education Act 
                of 1965, needs-based student or teacher higher 
                education programs, or the non-Federal share of costs 
                of title XIX of the Social Security Act.
                    ``(B) 40 percent rule.--For any fiscal year for 
                which States are allocated the maximum amount of grants 
                pursuant to section 611(a)(2), a State educational 
                agency may treat not more than 40 percent of the amount 
                of funds the State educational agency receives under 
                this part as general funds to support any educational 
                purpose described in the Elementary and Secondary 
                Education Act of 1965, needs-based student or teacher 
                higher education programs, or the non-Federal share of 
                costs of title XIX of the Social Security Act, subject 
                to subparagraph (C).
                    ``(C) Requirement.--A State educational agency may 
                exercise its authority pursuant to subparagraph (B) 
                only if the State educational agency uses an amount of 
                the 40 percent funds from subparagraph (B) that 
                represents 15 percent of the total amount of funds the 
                State educational agency receives under this part, to 
                provide, or to pay or reimburse local educational 
                agencies for providing, early intervening services 
                pursuant to subsection (f).
            ``(2) Prohibition.--Notwithstanding subsection (a), if the 
        Secretary determines that a State educational agency is unable 
        to establish, maintain, or oversee programs of free appropriate 
        public education that meet the requirements of this part, then 
        the Secretary shall prohibit the State educational agency from 
        treating funds allocated under this part as general funds 
        pursuant to paragraph (1).
            ``(3) Report.--For each fiscal year for which a State 
        educational agency exercises its authority pursuant to 
        paragraph (1) and treats Federal funds as general funds, the 
        State educational agency shall report to the Secretary the 
        amount of funds so treated and the activities that were funded 
        with such funds.

``SEC. 614. EVALUATIONS, ELIGIBILITY DETERMINATIONS, 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 a full and individual 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) Request for initial evaluation.--Consistent 
                with subparagraph (D), either a parent of a child, or a 
                State educational agency, other State agency, or local 
                educational agency may initiate a request for an 
                initial evaluation to determine if the child is a child 
                with a disability.
                    ``(C) 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)) within 60 days of receiving parental 
                        consent for the evaluation, or, if the State 
                        has established a timeframe within which the 
                        evaluation must be conducted, within such 
                        timeframe; and
                            ``(ii) to determine the educational needs 
                        of such child.
                    ``(D) 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 
                        (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, except to the 
                        extent inconsistent with State law relating to 
                        parental consent.
                            ``(iii) Refusal or failure to consent.--If 
                        the parent of a child does not provide informed 
                        consent to the receipt of special education and 
                        related services, or the parent fails to 
                        respond to a request to provide the consent, 
                        the local educational agency shall not be 
                        considered to be in violation of the 
                        requirement to make available a free 
                        appropriate public education to the child for 
                        the failure to provide the special education 
                        and related services for which the local 
                        educational agency requests such informed 
                        consent.
                            ``(iv) Exception for wards of the state.--
                        The agency shall not be required to obtain an 
                        informed consent from the parents of a child 
                        for an initial evaluation to determine whether 
                        the child is a child with a disability if such 
                        child is a ward of the State and is not 
                        residing with the child's parent and consent 
                        has been given by an individual who has 
                        appropriate knowledge of the child's 
                        educational needs, including the judge 
                        appointed to the child's case or the child's 
                        attorney, guardian ad litem, or court appointed 
                        special advocate.
            ``(2) Reevaluations.--
                    ``(A) In general.--A local educational agency shall 
                ensure that a reevaluation of each child with a 
                disability is conducted in accordance with subsections 
                (b) and (c)--
                            ``(i) if the local educational agency 
                        determines that the educational or related 
                        services needs, including improved academic 
                        achievement and functional performance, of the 
                        child warrant a reevaluation; or
                            ``(ii) if the child's parents or teacher 
                        requests a reevaluation.
                    ``(B) Limitation.--A reevaluation conducted under 
                subparagraph (A) shall occur--
                            ``(i) not more than once a year, unless the 
                        parent and the local educational agency agree 
                        otherwise; and
                            ``(ii) at least once every 3 years, unless 
                        the parent and the local educational agency 
                        agree that a reevaluation is unnecessary.
    ``(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, 
                developmental, and academic information, including 
                information provided by the parent, that may assist in 
                determining--
                            ``(i) whether the child is a child with a 
                        disability; and
                            ``(ii) 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, measure, or 
                assessment 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;
                            ``(ii) are provided and administered in the 
                        language and form most likely to yield accurate 
                        information on what the child knows and can do 
                        academically, developmentally, and 
                        functionally, unless it is not feasible to so 
                        provide or administer;''.
                            ``(iii) are used for purposes for which the 
                        assessments or measures are valid and reliable;
                            ``(iv) are administered by trained and 
                        knowledgeable personnel; and
                            ``(v) are administered in accordance with 
                        any instructions provided by the producer of 
                        such tests;
                    ``(B) the child is assessed in all areas of 
                suspected disability; and
                    ``(C) assessment tools and strategies that provide 
                relevant information that directly assists persons in 
                determining the educational needs of the child are 
                provided.
                    ``(D) assessments of children with disabilities, 
                including homeless children with disabilities, children 
                with disabilities who are wards of the State, and 
                children with disabilities in military families, who 
                transfer from 1 school district to another school 
                district in the same academic year, are--
                            ``(i) coordinated with such children's 
                        prior and subsequent schools as necessary to 
                        ensure timely completion of full evaluations; 
                        and
                            ``(ii) completed within time limits--
                                    ``(I) established for all students 
                                by Federal law or State plans; and
                                    ``(II) that computes the 
                                commencement of time from the date on 
                                which such children are first referred 
                                for assessments in any local 
                                educational agency.
            ``(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) 
                shall 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 shall 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 
        if the determinant factor for such determination is--
                    ``(A) lack of scientifically based instruction in 
                reading;
                    ``(B) lack of instruction in mathematics; or
                    ``(C) limited English proficiency.
            ``(6) Specific learning disabilities.--
                    ``(A) In general.--Notwithstanding section 607(b), 
                when determining whether a child has a specific 
                learning disability as defined in section 602(29), a 
                local educational agency shall not be required to take 
                into consideration whether a child has a severe 
                discrepancy between achievement and intellectual 
                ability in oral expression, listening comprehension, 
                written expression, basic reading skill, reading 
                comprehension, mathematical calculation, or 
                mathematical reasoning.
                    ``(B) Additional authority.--In determining whether 
                a child has a specific learning disability, a local 
                educational agency may use a process that determines if 
                the child responds to scientific, research-based 
                intervention as a part of the evaluation procedures 
                described in paragraphs (2) and (3).
    ``(c) Additional Requirements for Evaluation and Reevaluations.--
            ``(1) Review of existing evaluation data.--As part of an 
        initial evaluation (if appropriate) and as part of any 
        reevaluation under this section, the IEP Team described in 
        subsection (d)(1)(B) and other qualified professionals, as 
        appropriate, shall--
                    ``(A) review existing evaluation data on the child, 
                including evaluations and information provided by the 
                parents of the child, current classroom-based 
                assessments, and observations, and teacher and related 
                services providers observations; 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 has a particular 
                        category of disability, as described in section 
                        602(3), or, in case of a reevaluation of a 
                        child, whether the child continues to have such 
                        a disability;
                            ``(ii) the present levels of performance 
                        and educational needs of the child;
                            ``(iii) whether the child needs special 
                        education and related services, or in the case 
                        of a reevaluation of a child, whether the child 
                        continues to need special education and related 
                        services; and
                            ``(iv) whether any additions or 
                        modifications to the special education and 
                        related services are needed to enable the child 
                        to meet the measurable annual goals set out in 
                        the individualized education program of the 
                        child and to participate, as appropriate, in 
                        the general curriculum.
            ``(2) Source of data.--The local educational agency shall 
        administer such tests and other evaluation materials and 
        procedures as may be needed to produce the data identified by 
        the IEP Team under paragraph (1)(B).
            ``(3) Parental consent.--Each local educational agency 
        shall obtain informed parental consent, in accordance with 
        subsection (a)(1)(D), prior to conducting any reevaluation of a 
        child with a disability, except that such informed parental 
        consent need not be obtained if the local educational agency 
        can demonstrate that the local educational agency had taken 
        reasonable measures to obtain such consent and the child's 
        parent has failed to respond.
            ``(4) Requirements if additional data are not needed.--If 
        the IEP Team and other qualified professionals, as appropriate, 
        determine that no additional data are needed to determine 
        whether the child is or 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 the determination; and
                            ``(ii) the right of such parents to request 
                        an assessment to determine whether the child is 
                        or continues to be a child with a disability; 
                        and
                    ``(B) shall not be required to conduct such an 
                assessment unless requested by the child's parents.
            ``(5) Evaluations before change in eligibility.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a local educational agency shall 
                evaluate a child with a disability in accordance with 
                this section before determining that the child is no 
                longer a child with a disability.
                    ``(B) Exception.--
                            ``(i) In general.--The evaluation described 
                        in subparagraph (A) shall not be required 
                        before the termination of a child's eligibility 
                        under this part due to graduation from 
                        secondary school with a regular diploma, or to 
                        exceeding the age eligibility for a free 
                        appropriate public education under State law.
                            ``(ii) Summary of performance.--For a child 
                        whose eligibility under this part terminates 
                        under circumstances described in clause (i), a 
                        local educational agency shall provide the 
                        child with a summary of the child's academic 
                        achievement and functional performance, which 
                        shall include recommendations on how to assist 
                        the child in meeting the child's postsecondary 
                        goals.
    ``(d) Individualized Education Programs.--
            ``(1) Definitions.--As used in this title:
                    ``(A) Individualized education program.--
                            ``(i) In general.--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 this section and that 
                        includes--
                                    ``(I) a statement of the child's 
                                present levels of academic achievement 
                                and functional performance, including--
                                            ``(aa) how the child's 
                                        disability affects the child's 
                                        involvement and progress in the 
                                        general curriculum; or
                                            ``(bb) for preschool 
                                        children, as appropriate, how 
                                        the disability affects the 
                                        child's participation in 
                                        appropriate activities;
                                    ``(II) a statement of measurable 
                                annual goals, including academic and 
                                functional goals, designed to--
                                            ``(aa) meet the child's 
                                        needs that result from the 
                                        child's disability to enable 
                                        the child to be involved in and 
                                        make progress in the general 
                                        curriculum; and
                                            ``(bb) meet each of the 
                                        child's other educational needs 
                                        that result from the child's 
                                        disability;
                                    ``(III) a description of how the 
                                child's progress toward meeting the 
                                annual goals described in subclause 
                                (II) will be measured and when periodic 
                                reports on the progress the child is 
                                making toward meeting the annual goals 
                                (such as through the use of quarterly 
                                or other periodic reports, concurrent 
                                with the issuance of report cards) will 
                                be provided;
                                    ``(IV) 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 a statement of the 
                                program modifications or supports for 
                                school personnel that will be provided 
                                for the child--
                                            ``(aa) to advance 
                                        appropriately toward attaining 
                                        the annual goals;
                                            ``(bb) to be involved in 
                                        and make progress in the 
                                        general curriculum in 
                                        accordance with subclause (I) 
                                        and to participate in 
                                        extracurricular and other 
                                        nonacademic activities; and
                                            ``(cc) to be educated and 
                                        participate with other children 
                                        with disabilities and 
                                        nondisabled children in the 
                                        activities described in this 
                                        paragraph;
                                    ``(V) an explanation of the extent, 
                                if any, to which the child will not 
                                participate with nondisabled children 
                                in the regular class and in the 
                                activities described in subclause 
                                (IV)(cc);
                                    ``(VI)(aa) a statement of any 
                                individual appropriate accommodations 
                                that are necessary to measure the 
                                academic achievement and functional 
                                performance of the child on State and 
                                districtwide assessments consistent 
                                with section 612(a)(16)(A); and
                                    ``(bb) if the IEP Team determines 
                                that the child shall take an alternate 
                                assessment on a particular State or 
                                districtwide assessment of student 
                                achievement, a statement of why--
                                            ``(AA) the child cannot 
                                        participate in the regular 
                                        assessment; and
                                            ``(BB) the particular 
                                        alternate assessment selected 
                                        is appropriate for the child;
                                    ``(VII) the projected date for the 
                                beginning of the services and 
                                modifications described in subclause 
                                (IV), and the anticipated frequency, 
                                location, and duration of those 
                                services and modifications; and
                                    ``(VIII) beginning not later than 
                                the first IEP to be in effect when the 
                                child is 14, and updated annually 
                                thereafter--
                                            ``(aa) appropriate 
                                        measurable postsecondary goals 
                                        based upon age appropriate 
                                        transition assessments related 
                                        to training, education, 
                                        employment, and, where 
                                        appropriate, independent living 
                                        skills;
                                            ``(bb) the transition 
                                        services (including courses of 
                                        study) needed by the child to 
                                        reach those goals, including 
                                        services to be provided by 
                                        other agencies when needed; and
                                            ``(cc) beginning at least 1 
                                        year before the child reaches 
                                        the age of majority under State 
                                        law, a statement that the child 
                                        has been informed of the 
                                        child's rights under this 
                                        title, if any, that will 
                                        transfer to the child on 
                                        reaching the age of majority 
                                        under section 615(m).
                            ``(ii) Rule of construction.--Nothing in 
                        this section shall be construed to require--
                                    ``(I) that additional information 
                                be included in a child's IEP beyond 
                                what is explicitly required in this 
                                section; and
                                    ``(II) the IEP Team to include 
                                information under 1 component of a 
                                child's IEP that is already contained 
                                under another component of such IEP.
                    ``(B) Individualized education program team.--The 
                term `individualized education program team' or `IEP 
                Team' means a group of individuals composed of--
                            ``(i) the parents of a child with a 
                        disability;
                            ``(ii) at least 1 regular education teacher 
                        of such child (if the child is, or may be, 
                        participating in the regular education 
                        environment);
                            ``(iii) at least 1 special education 
                        teacher, or where appropriate, at least 1 
                        special education provider of such child;
                            ``(iv) 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;
                            ``(v) an individual who can interpret the 
                        instructional implications of evaluation 
                        results, who may be a member of the team 
                        described in clauses (ii) through (vi);
                            ``(vi) at the discretion of the parent or 
                        the agency, other individuals who have 
                        knowledge or special expertise regarding the 
                        child, including related services personnel as 
                        appropriate; and
                            ``(vii) whenever appropriate, the child 
                        with a disability.
                            ``(viii) if the child is a ward of the 
                        State, another individual with appropriate 
                        knowledge of the child's educational needs, 
                        such as a foster parent, a relative with whom 
                        the child lives who acts as a parent to the 
                        child, an attorney for the child, a guardian ad 
                        litem, a court appointed special advocate, a 
                        judge, or an education surrogate.
                    ``(C) IEP team attendance.--
                            ``(i) Attendance not necessary.--A member 
                        of the IEP Team shall not be required to attend 
                        an IEP meeting, in whole or in part, if that 
                        member, the parent of a child with a 
                        disability, and the local educational agency 
                        agree that the attendance of such member is not 
                        necessary because no modification to the 
                        member's area of the curriculum or related 
                        services is being modified or discussed in the 
                        meeting.
                            ``(ii) Excusal.--A member of the IEP Team 
                        may be excused from attending an IEP meeting, 
                        in whole or in part, when the meeting involves 
                        a modification to or discussion of the member's 
                        area of the curriculum or related services, 
                        if--
                                    ``(I) that member, the parent, and 
                                the local educational agency consent to 
                                the excusal; and
                                    ``(II) the member submits input 
                                into the development of the IEP prior 
                                to the meeting.
                            ``(iii) Written agreement and consent 
                        required.--A parent's agreement under clause 
                        (i) and consent under clause (ii) shall be in 
                        writing.
            ``(2) Requirement that program be in effect.--
                    ``(A) In general.--At the beginning of each school 
                year, each local educational agency, State educational 
                agency, or other State 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 paragraph (1)(A).
                    ``(B) Program for child aged 3 through 5.--In the 
                case of a child with a disability aged 3 through 5 (or, 
                at the discretion of the State educational agency, a 2-
                year-old child with a disability who will turn age 3 
                during the school year), 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.
                    ``(C) Program for children who transfer school 
                districts.--
                            ``(i) In general.--In the case of a child 
                        with a disability, including a homeless child 
                        with a disability, a child with a disability 
                        who is a ward of the State, or a child with a 
                        disability in a military family, who transfers 
                        school districts within the same academic year, 
                        who enrolls in a new school and who had an IEP 
                        that was in effect in the same or another 
                        State, the local educational agency, State 
                        educational agency, or other State agency, as 
                        the case may be, shall immediately provide such 
                        child with a free appropriate public education, 
                        including comparable services identified in the 
                        previously held IEP and in consultation with 
                        the parents until such time as the local 
                        educational agency, State educational agency, 
                        or other State agency, as the case may be, 
                        adopts the previously held IEP or develops, 
                        adopts, and implements a new IEP that is 
                        consistent with Federal and State law.
                            ``(ii) Transmittal of records.--To 
                        facilitate the transition for a child described 
                        in clause (i), the new school in which the 
                        child enrolls shall immediately request the 
                        child's records from the previous schools in 
                        which the child was enrolled and the previous 
                        schools in which the child was enrolled shall 
                        immediately transmit to the new school, upon 
                        such request, the IEP and supporting documents 
                        and any other records relating to the provision 
                        of special education or related services to the 
                        child.
            ``(3) Development of iep.--
                    ``(A) In general.--In developing each child's IEP, 
                the IEP Team, subject to subparagraph (C), shall 
                consider--
                            ``(i) the strengths of the child;
                            ``(ii) the concerns of the parents for 
                        enhancing the education of their child;
                            ``(iii) the results of the initial 
                        evaluation or most recent evaluation of the 
                        child; and
                            ``(iv) the academic, developmental, and 
                        functional needs of the child.
                    ``(B) Consideration of special factors.--The IEP 
                Team shall--
                            ``(i) in the case of a child whose behavior 
                        impedes the child's learning or that of others, 
                        provide for positive behavioral interventions 
                        and supports, and other strategies to address 
                        that behavior;
                            ``(ii) 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;
                            ``(iii) in the case of a child who is blind 
                        or visually impaired--
                                    ``(I) provide for instruction in 
                                Braille and the use of Braille unless 
                                the IEP Team determines, 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), that instruction in 
                                Braille or the use of Braille is not 
                                appropriate for the child; and
                                    ``(II) consider, when appropriate, 
                                instructional services related to 
                                functional performance skills, 
                                orientation and mobility, and skills in 
                                the use of assistive technology 
                                devices, including low vision devices;
                            ``(iv) consider the communication needs of 
                        the child, and in the case of a child who is 
                        deaf or hard of hearing, consider the child's 
                        language and communication needs, opportunities 
                        for direct communications with peers and 
                        professional personnel in the child's language 
                        and communication mode, academic level, and 
                        full range of needs, including opportunities 
                        for direct instruction in the child's language 
                        and communication mode; and
                            ``(v) consider whether the child requires 
                        assistive technology devices and services.
                    ``(C) Requirement with respect to regular education 
                teacher.--A 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 positive behavioral interventions and 
                supports, and other strategies, and the determination 
                of supplementary aids and services, program 
                modifications, and support for school personnel 
                consistent with paragraph (1)(A)(i)(IV).
                    ``(D) Agreement.--In making changes to a child's 
                IEP after the annual IEP meeting for a school year, the 
                parent of a child with a disability and the local 
                educational agency may agree not to convene an IEP 
                meeting for the purposes of making such changes, and 
                instead may develop a written document to amend or 
                modify the child's current IEP.
                    ``(E) Consolidation of iep team meetings.--To the 
                extent possible, the local educational agency shall 
                encourage the consolidation of reevaluations of a child 
                with IEP Team meetings for the child.
            ``(4) Review and revision of iep.--
                    ``(A) In general.--The local educational agency 
                shall ensure that, subject to subparagraph (B), the IEP 
                Team--
                            ``(i) reviews the child's IEP periodically, 
                        but not less than annually, to determine 
                        whether the annual goals for the child are 
                        being achieved; and
                            ``(ii) revise the IEP as appropriate to 
                        address--
                                    ``(I) any lack of expected progress 
                                toward the annual goals 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 subsection (c)(1)(B);
                                    ``(IV) the child's anticipated 
                                needs; or
                                    ``(V) other matters.
                    ``(B) Requirement with respect to regular education 
                teacher.--A regular education teacher of the child, as 
                a member of the IEP Team, shall, consistent with 
                paragraph (1)(C), participate in the review and 
                revision of the IEP of the child.
            ``(5) Three-year iep.--
                    ``(A) Development of 3-year iep.--The local 
                educational agency may offer a child with a disability 
                who has reached the age of 18, the option of developing 
                a comprehensive 3-year IEP. With the consent of the 
                parent, when appropriate, the IEP Team shall develop an 
                IEP, as described in paragraphs (1) and (3), that is 
                designed to serve the child for the final 3-year 
                transition period, which includes a statement of--
                            ``(i) measurable goals that will enable the 
                        child to be involved in and make progress in 
                        the general education curriculum and that will 
                        meet the child's transitional and postsecondary 
                        needs that result from the child's disability; 
                        and
                            ``(ii) measurable annual goals for 
                        measuring progress toward meeting the 
                        postsecondary goals described in clause (i).
                    ``(B) Review and revision of 3-year iep.--
                            ``(i) Requirement.--Each year the local 
                        educational agency shall ensure that the IEP 
                        Team--
                                    ``(I) provides an annual review of 
                                the child's IEP to determine the 
                                child's current levels of progress and 
                                determine whether the annual goals for 
                                the child are being achieved; and
                                    ``(II) revises the IEP, as 
                                appropriate, to enable the child to 
                                continue to meet the measurable 
                                transition goals set out in the IEP.
                            ``(ii) Comprehensive review.--If the review 
                        under clause (i) determines that the child is 
                        not making sufficient progress toward the goals 
                        described in subparagraph (A), the local 
                        educational agency shall ensure that the IEP 
                        Team provides a review, within 30 calendar 
                        days, of the IEP under paragraph (4).
                            ``(iii) Preference.--At the request of the 
                        child, or when appropriate, the parent, the IEP 
                        Team shall conduct a review of the child's 3-
                        year IEP under paragraph (4) rather than an 
                        annual review under subparagraph (B)(i).
            ``(6) 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 paragraph (1)(A)(i)(VIII), 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.
            ``(7) Children with disabilities in adult prisons.--
                    ``(A) In general.--The following requirements shall 
                not apply to children with disabilities who are 
                convicted as adults under State law and incarcerated in 
                adult prisons:
                            ``(i) The requirements contained in section 
                        612(a)(16) and paragraph (1)(A)(i)(V) (relating 
                        to participation of children with disabilities 
                        in general assessments).
                            ``(ii) The requirements of items (aa) and 
                        (bb) of paragraph (1)(A)(i)(VIII) (relating to 
                        transition planning and transition services), 
                        do not apply with respect to such children 
                        whose eligibility under this part will end, 
                        because of their age, before they will be 
                        released from prison.
                    ``(B) Additional requirement.--If a child with a 
                disability is convicted as an adult under State law and 
                incarcerated in an adult prison, the child's IEP Team 
                may modify the child's IEP or placement notwithstanding 
                the requirements of sections 612(a)(5)(A) and 
                614(d)(1)(A) if the State has demonstrated a bona fide 
                security or compelling penological interest that cannot 
                otherwise be accommodated.
    ``(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. Decisions regarding the 
educational placement of a child with a disability who is a homeless 
child shall comply with the requirements described under section 
722(g)(3) of the McKinney-Vento Homeless Assistance Act.
    ``(f) Alternative Means of Meeting Participation.--When conducting 
IEP Team meetings and placement meetings pursuant to this section, the 
parent of a child with a disability and a local educational agency may 
agree to use alternative means of meeting participation, such as video 
conferences and conference calls.

``SEC. 615. PROCEDURAL SAFEGUARDS.

    ``(a) Establishment of Procedures.--Any State educational agency, 
State agency, or local educational agency that receives assistance 
under this part shall establish and maintain procedures in accordance 
with this section to ensure that children with disabilities, including 
children with disabilities who are wards of the State, 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, the child 
        is a ward of the State, or the child is a homeless child who is 
        not in the physical custody of a parent or guardian 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 in 
        accordance with subsection (o);
            ``(3) written prior notice to the parents of the child, in 
        accordance with subsection (c)(1), whenever the local 
        educational agency--
                    ``(A) proposes to initiate or change; or
                    ``(B) refuses to initiate or change,
        the identification, evaluation, or educational placement of the 
        child, or the provision of a free appropriate public education 
        to the child;
            ``(4) procedures designed to ensure 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 for either party 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)(A) procedures that require either party, or the 
        attorney representing a party, to provide due process complaint 
        notice in accordance with subsection (c)(2) (which shall remain 
        confidential)--
                    ``(i) to the other party, in the complaint filed 
                under paragraph (6), and forward a copy of such notice 
                to the State educational agency; and
                    ``(ii) that shall include--
                            ``(I) the name of the child, the address of 
                        the residence of the child (or available 
                        contact information in the case of a homeless 
                        child), and the name of the school the child is 
                        attending;
                            ``(II) in the case of a homeless child or 
                        youth (within the meaning of section 725(2) of 
                        the McKinney-Vento Homeless Assistance Act (42 
                        U.S.C. 11434a(2)), available contact 
                        information for the child and the name of the 
                        school the child is attending;
                            ``(III) 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
                            ``(IV) a proposed resolution of the problem 
                        to the extent known and available to the party 
                        at the time; and
            ``(B) a requirement that a party may not have a due process 
        hearing until the party, or the attorney representing the 
        party, files a notice that meets the requirements of 
        subparagraph (A)(ii);
            ``(8) a requirement that the local educational agency shall 
        send a prior written notice pursuant to subsection (c)(1) in 
        response to a parent's due process complaint notice under 
        paragraph (7) if the local educational agency has not sent such 
        a prior written notice to the parent regarding the subject 
        matter contained in the parent's due process complaint notice; 
        and
            ``(9) procedures that require the State educational agency 
        to develop a model form to assist parents in filing a complaint 
        and due process complaint notice in accordance with paragraphs 
        (6) and (7), respectively.
            ``(10) procedures to protect the rights of the child 
        whenever the child is a ward of the State, including procedures 
        that preserve the rights of the natural or adoptive parent to 
        make the decisions required of parents under this Act (unless 
        such rights have been extinguished under State law) but that 
        permit a child who is represented in juvenile court by an 
        attorney, guardian ad litem, or another individual, to have 
        such attorney, guardian ad litem, or other individual present 
        in any meetings, mediation proceedings, or hearings provided 
        under this Act.
    ``(c) Notification Requirements.--
            ``(1) Content of prior written notice.--The prior written 
        notice of the local educational agency required by subsection 
        (b)(3) shall include--
                    ``(A) a description of the action proposed or 
                refused by the agency;
                    ``(B) an explanation of why the agency proposes or 
                refuses to take the action;
                    ``(C) a description of any other options that the 
                agency considered and the reasons why those options 
                were rejected;
                    ``(D) a description of each evaluation procedure, 
                test, record, or report the agency used as a basis for 
                the proposed or refused action;
                    ``(E) a description of any other factors that are 
                relevant to the agency's proposal or refusal;
                    ``(F) a statement that the parents of a child with 
                a disability have protection under the procedural 
                safeguards of this part 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; and
                    ``(G) sources for parents to contact to obtain 
                assistance in understanding the provisions of this 
                part.
            ``(2) Due process complaint notice.--
                    ``(A) In general.--The due process complaint notice 
                required under subsection (b)(7)(A) shall be deemed to 
                be sufficient unless the party receiving the notice 
                notifies the hearing officer and the other party in 
                writing that the receiving party believes the notice 
                has not met the requirements of that subsection.
                    ``(B) Timing.--The party sending a hearing officer 
                notification under subparagraph (A) shall send the 
                notification within 20 days of receiving the complaint.
                    ``(C) Determination.--Within 5 days of receipt of 
                the notification provided under subparagraph (B), the 
                hearing officer shall make a determination on the face 
                of the notice of whether the notification meets the 
                requirements of subsection (b)(7)(A), and shall 
                immediately notify both parties in writing of such 
                determination.
                    ``(D) Parent's amended notice of complaint.--
                            ``(i) In general.--A parent may amend the 
                        parent's due process complaint notice only if--
                                    ``(I) the public agency consents in 
                                writing to such amendment and is given 
                                the opportunity to resolve the 
                                complaint through a meeting held 
                                pursuant to subsection (f)(1)(B); or
                                    ``(II) the hearing officer grants 
                                permission, but may do so only before a 
                                due process hearing occurs.
                            ``(ii) Applicable timeline.--The applicable 
                        timeline for a due process hearing under this 
                        part shall recommence at the time the party 
                        files an amended notice.
    ``(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 only 1 time a year, except that a copy 
        also shall be given to the parents--
                    ``(A) upon initial referral or parental request for 
                evaluation;
                    ``(B) upon registration of a complaint under 
                subsection (b)(6); and
                    ``(C) upon request by a parent.
            ``(2) Contents.--The procedural safeguards notice shall 
        include a full explanation of the procedural safeguards, 
        written in the native language of the parents, unless it 
        clearly is 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) the opportunity to present and resolve 
                complaints, including--
                            ``(i) the time period in which to make a 
                        complaint;
                            ``(ii) the opportunity for the agency to 
                        resolve the complaint; and
                            ``(iii) the availability of mediation;
                    ``(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) due process hearings, including requirements 
                for disclosure of evaluation results and 
                recommendations;
                    ``(J) State-level appeals (if applicable in that 
                State);
                    ``(K) civil actions, including the time period in 
                which to file such actions; and
                    ``(L) 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 any matter, including 
        matters arising prior to the filing of a complaint pursuant to 
        subsection (b)(6), 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 
                        parties;
                            ``(ii) is not used to deny or delay a 
                        parent's right to a due process hearing under 
                        subsection (f), or to deny any other rights 
                        afforded under this part; and
                            ``(iii) is conducted by a qualified and 
                        impartial mediator who is trained in effective 
                        mediation techniques.
                    ``(B) Opportunity to meet with a disinterested 
                party.--A local educational agency or a State agency 
                may establish procedures to offer to parents and 
                schools who choose not to use the mediation process, an 
                opportunity to meet, at a time and location convenient 
                to the parents, with a disinterested party who is under 
                contract with--
                            ``(i) a parent training and information 
                        center or community parent resource center in 
                        the State established under section 671 or 672; 
                        or
                            ``(ii) an appropriate alternative dispute 
                        resolution entity,
                to encourage the use, and explain the benefits, of the 
                mediation process to the parents.
                    ``(C) List of qualified mediators.--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.
                    ``(D) Costs.--The State shall bear the cost of the 
                mediation process, including the costs of meetings 
                described in subparagraph (B).
                    ``(E) Scheduling and location.--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.
                    ``(F) Written mediation agreement.--An agreement 
                reached by the parties to the dispute in the mediation 
                process shall be set forth in a written mediation 
                agreement that is enforceable in any State court of 
                competent jurisdiction or in a district court of the 
                United States.
                    ``(G) Mediation discussions.--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.
    ``(f) Impartial Due Process Hearing.--
            ``(1) In general.--
                    ``(A) Hearing.--Whenever a complaint has been 
                received under subsection (b)(6) or (k), the parents or 
                the local educational agency 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.
                    ``(B) Opportunity to resolve complaint.--
                            ``(i) Preliminary meeting.--Prior to the 
                        opportunity for an impartial due process 
                        hearing under subparagraph (A), the local 
                        educational agency shall convene a meeting with 
                        the parents and the IEP Team--
                                    ``(I) within 15 days of receiving 
                                notice of the parents' complaint;
                                    ``(II) which shall include a 
                                representative of the public agency who 
                                has decisionmaking authority on behalf 
                                of such agency;
                                    ``(III) which may not include an 
                                attorney of the local educational 
                                agency unless the parent is accompanied 
                                by an attorney; and
                                    ``(IV) where the parents of the 
                                child discuss their complaint, and the 
                                specific issues that form the basis of 
                                the complaint, and the local 
                                educational agency is provided the 
                                opportunity to resolve the complaint,
                        unless the parents and the local educational 
                        agency agree in writing to waive such meeting, 
                        or agree to use the mediation process described 
                        in subsection (e).
                            ``(ii) Hearing.--If the local educational 
                        agency has not resolved the complaint to the 
                        satisfaction of the parents within 15 days of 
                        the receipt of the complaint, the due process 
                        hearing may occur, and all of the applicable 
                        timelines for a due process hearing under this 
                        part shall commence.
                            ``(iii) Written settlement agreement.--In 
                        the case that an agreement is reached to 
                        resolve the complaint at such meeting, the 
                        agreement shall be set forth in a written 
                        settlement agreement that is--
                                    ``(I) signed by both the parent and 
                                a representative of the public agency 
                                who has decisionmaking authority on 
                                behalf of such agency; and
                                    ``(II) enforceable in any State 
                                court of competent jurisdiction or in a 
                                district court of the United States.
            ``(2) Disclosure of evaluations and recommendations.--
                    ``(A) In general.--Not less than 5 business days 
                prior to a hearing conducted pursuant to paragraph (1), 
                each party shall disclose to all other parties all 
                evaluations completed by that date, and recommendations 
                based on the offering party's evaluations, that the 
                party intends to use at the hearing.
                    ``(B) Failure to disclose.--A hearing officer may 
                bar any party that fails to comply with subparagraph 
                (A) from introducing the relevant evaluation or 
                recommendation at the hearing without the consent of 
                the other party.
            ``(3) Limitations on hearing.--
                    ``(A) Person conducting hearing.--A hearing officer 
                conducting a hearing pursuant to paragraph (1)(A) 
                shall, at a minimum--
                            ``(i) not be--
                                    ``(I) an employee of the State 
                                educational agency or the local 
                                educational agency involved in the 
                                education or care of the child; or
                                    ``(II) a person having a personal 
                                or professional interest that conflicts 
                                with the person's objectivity in the 
                                hearing;
                            ``(ii) possess a fundamental understanding 
                        of this Act, Federal and State regulations 
                        pertaining to this Act, and interpretations of 
                        this Act by State and Federal courts;
                            ``(iii) possess the knowledge and ability 
                        to conduct hearings in accordance with 
                        appropriate, standard legal practice; and
                            ``(iv) possess the knowledge and ability to 
                        render and write decisions in accordance with 
                        appropriate, standard legal practice.
                    ``(B) Subject matter of hearing.--The party 
                requesting the due process hearing shall not be allowed 
                to raise issues at the due process hearing that were 
                not raised in the notice filed under subsection (b)(7), 
                unless the other party agrees otherwise.
                    ``(C) Rule of construction.--Nothing in this 
                section shall be construed to preclude a parent from 
                filing a separate due process complaint on an issue 
                separate from a due process complaint already filed.
                    ``(D) Timeline for requesting hearing.--A parent or 
                public agency shall request an impartial due process 
                hearing within 2 years of the date the parent or public 
                agency knew or should have known about the alleged 
                action that forms the basis of the complaint, or, if 
                the State has an explicit time limitation for 
                requesting such a hearing under this part, in such time 
                as the State law allows.
                    ``(E) Exception to the timeline.--The timeline 
                described in subparagraph (D) shall not apply if the 
                parent was prevented from requesting the hearing due 
                to--
                            ``(i) failure of the local educational 
                        agency to provide prior written or procedural 
                        safeguards notices;
                            ``(ii) false representations that the local 
                        educational agency was attempting to resolve 
                        the problem forming the basis of the complaint; 
                        or
                            ``(iii) the local educational agency's 
                        withholding of information from parents.
                    ``(F) Decision of hearing officer.--
                            ``(i) In general.--Subject to clause (ii), 
                        a decision made by a hearing officer shall be 
                        made on substantive grounds based on a 
                        determination of whether the child received a 
                        free appropriate public education.
                            ``(ii) Procedural issues.--In matters 
                        alleging a procedural violation, a hearing 
                        officer may find that a child did not receive a 
                        free appropriate public education only if the 
                        procedural inadequacies--
                                    ``(I) compromised the child's right 
                                to an appropriate public education;
                                    ``(II) seriously hampered the 
                                parents' opportunity to participate in 
                                the process; or
                                    ``(III) caused a deprivation of 
                                educational benefits.
                            ``(iii) Rule of construction.--Nothing in 
                        this paragraph shall be construed to preclude a 
                        hearing officer from ordering a local 
                        educational agency to comply with procedural 
                        requirements under this section.
                    ``(G) Rule of construction.--Nothing in this 
                section shall be construed to affect the right of a 
                parent to file a complaint with the State educational 
                agency.
    ``(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 State 
educational 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 (k), 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 a written, or, at the option of the 
        parents, electronic findings of fact and decisions, which 
        findings and decisions--
                    ``(A) shall be made available to the public 
                consistent with the requirements of section 617(b) 
                (relating to the confidentiality of data, information, 
                and records); and
                    ``(B) shall be transmitted to the advisory panel 
                established pursuant to section 612(a)(20).
    ``(i) Administrative Procedures.--
            ``(1) In general.--
                    ``(A) Decision made in hearing.--A decision made in 
                a hearing conducted pursuant to subsection (f) or (k) 
                shall be final, except that any party involved in such 
                hearing may appeal such decision under the provisions 
                of subsection (g) and paragraph (2).
                    ``(B) Decision made at appeal.--A decision made 
                under subsection (g) shall be final, except that any 
                party may bring an action under paragraph (2).
            ``(2) Right to bring civil action.--
                    ``(A) In general.--Any party aggrieved by the 
                findings and decision made under subsection (f) or (k) 
                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) Limitation.--The party bringing the action 
                shall have 90 days from the date of the decision of the 
                hearing officer to bring such an action, or, if the 
                State has an explicit time limitation for bringing such 
                action under this part, in such time as the State law 
                allows.
                    ``(C) Additional requirements.--In any action 
                brought under this paragraph, the court--
                            ``(i) shall receive the records of the 
                        administrative proceedings;
                            ``(ii) shall 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.--
                            ``(i) In general.--In any action or 
                        proceeding brought under this section, the 
                        court, in its discretion, may award reasonable 
                        attorneys' fees as part of the costs--
                                    ``(I) to a prevailing party who is 
                                the parent of a child with a 
                                disability;
                                    ``(II) to a prevailing party who is 
                                a State educational agency or local 
                                educational agency against the attorney 
                                of a parent who files a complaint or 
                                subsequent cause of action that is 
                                frivolous, unreasonable, or without 
                                foundation, or against the attorney of 
                                a parent who continued to litigate 
                                after the litigation clearly became 
                                frivolous, unreasonable, or without 
                                foundation; or
                                    ``(III) to a State educational 
                                agency or local educational agency 
                                against the attorney of a parent, or 
                                against the parent, if the parent's 
                                complaint or subsequent cause of action 
                                was presented for any improper purpose, 
                                such as to harass or to cause 
                                unnecessary delay or needless increase 
                                in the cost of litigation.
                            ``(ii) Rule of construction.--Nothing in 
                        this subparagraph shall be construed to affect 
                        section 432 of the District of Columbia 
                        Appropriations Act, 2004.
                    ``(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) In general.--Attorneys' fees may not 
                        be awarded and related costs may not be 
                        reimbursed in any action or proceeding under 
                        this section 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 10 
                                days before the proceeding begins;
                                    ``(II) the offer is not accepted 
                                within 10 days; and
                                    ``(III) the court or administrative 
                                hearing officer finds that the relief 
                                finally obtained by the parents is not 
                                more favorable to the parents than the 
                                offer of settlement.
                            ``(ii) IEP team meetings.--Attorneys' fees 
                        may not be awarded relating to any meeting of 
                        the IEP Team unless such meeting is convened as 
                        a result of an administrative proceeding or 
                        judicial action, or, at the discretion of the 
                        State, for a mediation described in subsection 
                        (e).
                            ``(iii) Opportunity to resolve 
                        complaints.--A meeting conducted pursuant to 
                        subsection (f)(1)(B)(i) shall not be 
                        considered--
                                    ``(I) a meeting convened as a 
                                result of an administrative hearing or 
                                judicial action; or
                                    ``(II) an administrative hearing or 
                                judicial action for purposes of this 
                                paragraph.
                    ``(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, or the parent's attorney, 
                        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, reputation, and 
                        experience;
                            ``(iii) the time spent and legal services 
                        furnished were excessive considering the nature 
                        of the action or proceeding; or
                            ``(iv) the attorney representing the parent 
                        did not provide to the local educational agency 
                        the appropriate information in the notice of 
                        the complaint described in subsection 
                        (b)(7)(A),
                the court shall reduce, accordingly, the amount of the 
                attorneys' fees awarded under this section.
                    ``(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.
            ``(4) Parents representing their children in court.--
        Subject to subsection (m), and notwithstanding any other 
        provision of Federal law regarding attorney representation 
        (including the Federal Rules of Civil Procedure), a parent of a 
        child with a disability may represent the child in any action 
        under this part in Federal or State court, without the 
        assistance of an attorney.
    ``(j) Maintenance of Current Educational Placement.--Except as 
provided in subsection (k)(4), 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.--
                    ``(A) In general.--School personnel under this 
                section may order a change in the placement of a child 
                with a disability who violates a code of student 
                conduct to an appropriate interim alternative 
                educational setting, another setting, or suspension, 
                for not more than 10 school days (to the extent such 
                alternatives are applied to children without 
                disabilities).
                    ``(B) Additional authority.--If school personnel 
                seek to order a change in placement that would exceed 
                10 school days and the behavior that gave rise to the 
                violation of the school code is determined not to be a 
                manifestation of the child's disability pursuant to 
                subparagraph (C), the relevant disciplinary procedures 
                applicable to children without disabilities may be 
                applied to the child in the same manner in which the 
                procedures would be applied to children without 
                disabilities, except as provided in section 612(a)(1).
                    ``(C) Manifestation determination.--
                            ``(i) In general.--Except as provided in 
                        subparagraphs (A) and (D), within 10 school 
                        days of any decision to change the placement of 
                        a child with a disability because of a 
                        violation of a code of student conduct, the IEP 
                        Team shall review all relevant information in 
                        the student's file, any information provided by 
                        the parents, and teacher observations, to 
                        determine--
                                    ``(I) if the conduct in question 
                                was the result of the child's 
                                disability; or
                                    ``(II) if the conduct in question 
                                resulted from the failure to implement 
                                the IEP or to implement behavioral 
                                interventions as required by section 
                                614(d)(3)(B)(i).
                            ``(ii) Manifestation.--If the IEP Team 
                        determines that either subclause (I) or (II) of 
                        clause (i) is applicable for the child, the 
                        conduct shall be determined to be a 
                        manifestation of the child's disability.
                    ``(D) Special circumstances.--In cases where a 
                child--
                            ``(i) carries or possesses a weapon to or 
                        at school, on school premises, or to or at a 
                        school function under the jurisdiction of a 
                        State or local educational agency; or
                            ``(ii) knowingly possesses or uses illegal 
                        drugs, or sells or solicits the sale of a 
                        controlled substance, while at school or a 
                        school function under the jurisdiction of a 
                        State or local educational agency; or
                            ``(iii) has committed serious bodily injury 
                        upon another person while at school or at a 
                        school function under the jurisdiction of a 
                        State or local educational agency,
                school personnel may remove a student to an interim 
                alternative educational setting for not more than 45 
                school days, without regard to whether the behavior is 
                determined to be a manifestation of the child's 
                disability.
                    ``(E) Notification.--Not later than the date on 
                which the decision to take disciplinary action is made, 
                the local educational agency shall notify the parents 
                of that decision, and of all procedural safeguards 
                accorded under this section.
                    ``(F) Services.--A child with a disability who is 
                removed from the child's current placement under 
                subparagraph (B) or (D) shall--
                            ``(i) continue to receive educational 
                        services pursuant to section 612(a)(1), so as 
                        to enable the child to continue to participate 
                        in the general education curriculum, although 
                        in another setting, and to progress toward 
                        meeting the goals set out in the child's IEP; 
                        and
                            ``(ii) receive behavioral intervention 
                        services as described in section 
                        614(d)(3)(B)(i), and a functional behavioral 
                        assessment (but only if the local educational 
                        agency did not conduct such an assessment 
                        before the violation occurred), designed to 
                        address the behavior violation so that the 
                        violation does not recur.
            ``(2) Determination of setting.--The alternative 
        educational setting shall be determined by the IEP Team.
            ``(3) Appeal.--
                    ``(A) In general.--The parent of a child with a 
                disability who disagrees with any decision regarding 
                disciplinary action, placement, or the manifestation 
                determination under this subsection, or a local 
                educational agency that believes that maintaining the 
                current placement of the child is substantially likely 
                to result in injury to the child or to others, may 
                request a hearing.
                    ``(B) Authority of hearing officer.--
                            ``(i) In general.--If a parent of a child 
                        with a disability disagrees with a decision as 
                        described in subparagraph (A), the hearing 
                        officer may determine whether the decision 
                        regarding such action was appropriate.
                            ``(ii) Change of placement order.--A 
                        hearing officer under this section may order a 
                        change in placement of a child with a 
                        disability to an appropriate interim 
                        alternative educational setting for not more 
                        than 45 school days if the hearing officer 
                        determines that maintaining the current 
                        placement of such child is substantially likely 
                        to result in injury to the child or to others.
            ``(4) Placement during appeals.--When a parent requests a 
        hearing regarding a disciplinary procedure described in 
        paragraph (1)(B) or challenges the interim alternative 
        educational setting or manifestation determination--
                    ``(A) the child shall remain in the interim 
                alternative educational setting pending the decision of 
                the hearing officer or until the expiration of the time 
                period provided for in paragraph (1)(B), whichever 
                occurs first, unless the parent and the State or local 
                educational agency agree otherwise; and
                    ``(B) the State or local educational agency shall 
                arrange for an expedited hearing, which shall occur 
                within 20 school days of the date the hearing is 
                requested.
            ``(5) Protections for children not yet eligible for special 
        education and related services.--
                    ``(A) 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 violates a code of student conduct, may 
                assert any of the protections provided for in this part 
                if the local educational agency had knowledge (as 
                determined in accordance with this paragraph) that the 
                child was a child with a disability before the behavior 
                that precipitated the disciplinary action occurred.
                    ``(B) Basis of knowledge.--A local educational 
                agency shall be deemed to have knowledge that a child 
                is a child with a disability if, before the behavior 
                that precipitated the disciplinary action occurred--
                            ``(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 clause) to personnel of the appropriate 
                        educational agency that the child is in need of 
                        special education and related services;
                            ``(ii) the parent of the child has 
                        requested an evaluation of the child pursuant 
                        to section 614;
                            ``(iii) the teacher of the child, or other 
                        personnel of the local educational agency, has 
                        expressed concern about a pattern of behavior 
                        demonstrated by the child, to the director of 
                        special education of such agency or to other 
                        administrative personnel of the agency; or
                            ``(iv) the child has engaged in a pattern 
                        of behavior that should have alerted personnel 
                        of the local educational agency that the child 
                        may be in need of special education and related 
                        services.
                    ``(C) Exception.--A local educational agency shall 
                not be deemed to have knowledge that the child has a 
                disability if the parent of the child has not agreed to 
                allow an evaluation of the child pursuant to section 
                614.
                    ``(D) 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 
                        subparagraph (B) or (C)) prior to taking 
                        disciplinary measures against the child, the 
                        child may be subjected to disciplinary measures 
                        applied to children without disabilities who 
                        engaged in comparable behaviors consistent with 
                        clause (ii).
                            ``(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 this part, except that, 
                        pending the results of the evaluation, the 
                        child shall remain in the educational placement 
                        determined by school authorities.
            ``(6) Referral to and action by law enforcement and 
        judicial authorities.--
                    ``(A) Construction.--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.
                    ``(B) Transmittal of records.--An agency reporting 
                a crime committed by a child with a disability shall 
                ensure that copies of the special education and 
                disciplinary records of the child are transmitted for 
                consideration by the appropriate authorities to whom 
                the agency reports the crime.
            ``(7) Definitions.--For purposes of this subsection, the 
        following definitions apply:
                    ``(A) Controlled substance.--The term `controlled 
                substance' means a drug or other substance identified 
                under schedule I, II, III, IV, or V in section 202(c) 
                of the Controlled Substances Act (21 U.S.C. 812(c)).
                    ``(B) Illegal drug.--The term `illegal drug' means 
                a controlled substance but does not include a 
                controlled substance that is legally possessed or used 
                under the supervision of a licensed health-care 
                professional or that is legally possessed or used under 
                any other authority under that Act or under any other 
                provision of Federal law.
                    ``(C) Weapon.--The term `weapon' has the meaning 
                given the term `dangerous weapon' under section 
                930(g)(2) of title 18, United States Code.
                    ``(D) Serious bodily injury.--The term `serious 
                bodily injury' has the meaning given the term `serious 
                bodily injury' under paragraph (3) of subsection (h) of 
                section 1365 of title 18, United States Code.
    ``(l) Rule of Construction.--Nothing in this title shall be 
construed to restrict or limit the rights, procedures, and remedies 
available under the Constitution, the Americans with Disabilities Act 
of 1990, title V of the Rehabilitation Act of 1973, or other Federal 
laws protecting the rights of children with disabilities, or under 
subtitle B of title VII of the McKinney-Vento Homeless Assistance Act 
or parts B and E of title IV of the Social Security Act, 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, 
        who has not been determined to be incompetent, but who 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 if the parent is not available, another appropriate 
        individual, to represent the educational interests of the child 
        throughout the period of eligibility of the child under this 
        part.
    ``(n) E-Mail.--A parent of a child with a disability may elect to 
receive notices required under this section by e-mail communication, if 
the public agency makes such option available.
    ``(o) Surrogate Parent.--
            ``(1) Assignment.--The assignment of a surrogate under 
        subsection (b)(2) shall take place not more than 30 days after 
        either of the following takes place:
                    ``(A) The child is referred to the local 
                educational agency for an initial evaluation to 
                determine if the child is a child with a disability.
                    ``(B) There is a determination made by the agency 
                that the child needs a surrogate parent because the 
                child's parent cannot be identified, the child becomes 
                a ward of the State, or, despite reasonable efforts to 
                do so, the agency cannot discover the whereabouts of 
                the parent of the child.
            ``(2) Requirements of surrogate.--An individual may not be 
        assigned to act as a surrogate for the parents under subsection 
        (b)(2) unless the individual--
                    ``(A) signs a written form agreeing to make the 
                educational decisions required of parents under this 
                Act;
                    ``(B)(i) has the knowledge and skills necessary to 
                ensure adequate representation of the child; or
                    ``(ii) agrees to be trained as an educational 
                surrogate; and
                    ``(C) has no interests that would conflict with the 
                interests of the child.
            ``(3) Foster parent as surrogate.--A foster parent of a 
        child may be assigned to act as a surrogate for the parents of 
        such child under subsection (b)(2) if the foster parent--
                    ``(A) has an ongoing, long-term parental 
                relationship with the child;
                    ``(B) agrees to make the educational decisions 
                required of parents under this Act;
                    ``(C) agrees to be trained as an educational 
                surrogate; and
                    ``(D) has no interest that would conflict with the 
                interests of the child.

``SEC. 616. MONITORING, TECHNICAL ASSISTANCE, AND ENFORCEMENT.

    ``(a) Federal and State Monitoring.--
            ``(1) In general.--The Secretary shall--
                    ``(A) monitor implementation of this Act through--
                            ``(i) oversight of the States' exercise of 
                        general supervision, as required in section 
                        612(a)(11); and
                            ``(ii) the system of indicators, described 
                        in subsection (b)(2); and
                    ``(B) enforce this Act in accordance with 
                subsection (c); and
                    ``(C) require States to monitor implementation of 
                this Act by local educational agencies and enforce this 
                Act in accordance with paragraph (3) of this subsection 
                and subsection (c).
            ``(2) Focused monitoring.--The primary focus of Federal and 
        State monitoring activities described in paragraph (1) shall be 
        on improving educational results and functional outcomes for 
        all children with disabilities, while ensuring compliance with 
        program requirements, with a particular emphasis on those 
        requirements that are most closely related to improving 
        educational results for children with disabilities.
            ``(3) Monitoring priorities.--The Secretary shall monitor, 
        and shall require States to monitor, the following priority 
        areas:
                    ``(A) Provision of a free appropriate public 
                education in the least restrictive environment.
                    ``(B) Provision of transition services, as defined 
                in section 602(33).
                    ``(C) State exercise of general supervisory 
                authority, including the effective use of complaint 
                resolution and mediation.
                    ``(D) Overrepresentation of racial and ethnic 
                groups in special education and related services, to 
                the extent the overrepresentation is the result of 
                inappropriate policies, procedures, and practices.
            ``(4) Permissive areas of review.--The Secretary may 
        examine other relevant information and data, including data 
        provided by States under section 618, and data from the State's 
        compliance plan under subsection (b)(2)(C).
    ``(b) Indicators.--
            ``(1) System.--The Secretary shall implement and administer 
        a system of required indicators as described in paragraph (2) 
        that measures the progress of States in improving their 
        performance under this Act.
            ``(2) Indicators.--
                    ``(A) In general.--Using the performance indicators 
                established by States under section 612(a)(15), the 
                Secretary shall review--
                            ``(i) the performance of children with 
                        disabilities in the State on assessments, 
                        including alternate assessments, dropout rates, 
                        and graduation rates, which for purposes of 
                        this paragraph means the number and percentage 
                        of students with disabilities who graduate with 
                        a regular diploma within the number of years 
                        specified in a student's IEP; and
                            ``(ii) the performance of children with 
                        disabilities in the State on assessments, 
                        including alternate assessments, dropout rates, 
                        and graduation rates, as compared to the 
                        performance and rates for all children.
                    ``(B) Secretary's assessment.--Based on that review 
                and a review of the State's compliance plan under 
                subparagraph (C), the Secretary shall assess the 
                State's progress in improving educational results for 
                children with disabilities.
                    ``(C) State compliance plan.--Not later than 1 year 
                after the date of the enactment of the Individuals with 
                Disabilities Education Improvement Act of 2004, each 
                State shall have in place a compliance plan developed 
                in collaboration with the Secretary. Each State's 
                compliance plan shall--
                            ``(i) include benchmarks to measure 
                        continuous progress on the priority areas 
                        described in subsection (a)(3);
                            ``(ii) describe strategies the State will 
                        use to achieve the benchmarks; and
                            ``(iii) be approved by the Secretary.
                    ``(D) Public reporting and privacy.--
                            ``(i) In general.--After the Secretary 
                        approves a State's compliance plan under 
                        subparagraph (C), the State shall use the 
                        benchmarks in the plan and the indicators 
                        described in this subsection to analyze the 
                        progress of each local educational agency in 
                        the State on those benchmarks and indicators.
                            ``(ii) Report.--The State shall report 
                        annually to the public on each local 
                        educational agency's progress under clause (i), 
                        except where doing so would result in the 
                        disclosure of personally identifiable 
                        information about individual children or where 
                        the available data is insufficient to yield 
                        statistically reliable information.
            ``(3) Data collection and analysis.--The Secretary shall--
                    ``(A) review the data collection and analysis 
                capacity of States to ensure that data and information 
                determined necessary for implementation of this 
                subsection is collected, analyzed, and accurately 
                reported to the Secretary; and
                    ``(B) provide technical assistance to improve the 
                capacity of States to meet these data collection 
                requirements.
    ``(c) Compliance and Enforcement.--
            ``(1) In general.--The Secretary shall examine relevant 
        State information and data annually, to determine whether the 
        State is making satisfactory progress toward improving 
        educational results for children with disabilities using the 
        indicators described in subsection (b)(2)(A) and the benchmarks 
        established in the State compliance plan under subsection 
        (b)(2)(C), and is in compliance with the provisions of this 
        Act.
            ``(2) Lack of satisfactory progress by a state.--
                    ``(A) In general.--If after examining data, as 
                provided in subsection (b)(2) (A) and (C), the 
                Secretary determines that a State failed to make 
                satisfactory progress in meeting the indicators 
                described in subsection (b)(2)(A) or has failed to meet 
                the benchmarks described in subsection (b)(2)(C) for 2 
                consecutive years after the State has developed its 
                compliance plan, the Secretary shall notify the State 
                that the State has failed to make satisfactory 
                progress, and shall take 1 or more of the following 
                actions:
                            ``(i) Direct the use of State level funds 
                        for technical assistance, services, or other 
                        expenditures to ensure that the State resolves 
                        the area or areas of unsatisfactory progress.
                            ``(ii) Withhold not less than 20, but not 
                        more than 50, percent of the State's funds for 
                        State administration and activities for the 
                        fiscal year under section 611(e), after 
                        providing the State the opportunity to show 
                        cause why the withholding should not occur, 
                        until the Secretary determines that sufficient 
                        progress has been made in improving educational 
                        results for children with disabilities.
                    ``(B) Additional secretarial action.--If, at the 
                end of the 5th year after the Secretary has approved 
                the compliance plan that the State has developed under 
                subsection (b)(2)(C), the Secretary determines that a 
                State failed to meet the benchmarks in the State 
                compliance plan and make satisfactory progress in 
                improving educational results for children with 
                disabilities pursuant to the indicators described in 
                subsection (b)(2)(A), the Secretary shall take 1 or 
                more of the following actions:
                            ``(i) Seek to recover funds under section 
                        452 of the General Education Provisions Act.
                            ``(ii) After providing reasonable notice 
                        and an opportunity for a hearing to the State 
                        educational agency involved, withhold, in whole 
                        or in part, any further payments to the State 
                        under this part pursuant to subsection (c)(5).
                            ``(iii) After providing reasonable notice 
                        and an opportunity for a hearing to the State 
                        educational agency involved, refer the matter 
                        for appropriate enforcement action, which may 
                        include referral to the Department of Justice.
                            ``(iv) Pending the outcome of any hearing 
                        to withhold payments under clause (ii), the 
                        Secretary may suspend payments to a recipient, 
                        suspend the authority of the recipient to 
                        obligate Federal funds, or both, after such 
                        recipient has been given reasonable notice and 
                        an opportunity to show cause why future 
                        payments or authority to obligate Federal funds 
                        should not be suspended.
                    ``(C) Substantial noncompliance.--Notwithstanding 
                subparagraph (B), at any time that the Secretary 
                determines that a State is not in substantial 
                compliance with any provision of this part or that 
                there is a substantial failure to comply with any 
                condition of a local agency's or State agency's 
                eligibility under this part, the Secretary shall take 1 
                or more of the following actions:
                            ``(i) Request that the State prepare a 
                        corrective action plan or improvement plan if 
                        the Secretary determines that the State should 
                        be able to correct the problem within 1 year.
                            ``(ii) Identify the State as a high-risk 
                        grantee and impose special conditions on the 
                        State's grant under this part.
                            ``(iii) Require the State to enter into a 
                        compliance agreement under section 457 of the 
                        General Education Provisions Act, if the 
                        Secretary has reason to believe that the State 
                        cannot correct the problem within 1 year.
                            ``(iv) Recovery of funds under section 452 
                        of the General Education Provisions Act.
                            ``(v) After providing reasonable notice and 
                        an opportunity for a hearing to the State 
                        educational agency involved, withhold, in whole 
                        or in part, any further payments to the State 
                        under this part.
                            ``(vi) After providing reasonable notice 
                        and an opportunity for a hearing to the State 
                        educational agency involved, refer the matter 
                        for appropriate enforcement action, which may 
                        include referral to the Department of Justice.
                            ``(vii) Pending the outcome of any hearing 
                        to withhold payments under clause (v), the 
                        Secretary may suspend payments to a recipient, 
                        suspend the authority of the recipient to 
                        obligate Federal funds, or both, after such 
                        recipient has been given reasonable notice and 
                        an opportunity to show cause why future 
                        payments or authority to obligate Federal funds 
                        should not be suspended.
            ``(3) Egregious noncompliance.--At any time that the 
        Secretary determines that a State is in egregious noncompliance 
        or is willfully disregarding the provisions of this Act, the 
        Secretary shall take such additional enforcement actions as the 
        Secretary determines to be appropriate from among those actions 
        specified in paragraph (2)(C), and, additionally, may impose 1 
        or more of the following sanctions upon that State:
                    ``(A) Institute a cease and desist action under 
                section 456 of the General Education Provisions Act.
                    ``(B) Refer the case to the Office of the Inspector 
                General.
            ``(4) Report to congress.--The Secretary shall report to 
        Congress within 30 days of taking enforcement action pursuant 
        to paragraph (2) (B) or (C), or (3), on the specific action 
        taken and the reasons why enforcement action was taken.
            ``(5) Nature of withholding.--If the Secretary withholds 
        further payments under paragraphs (2)(B)(ii) and (2)(C)(v), 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 
        make satisfactory progress as specified in paragraph (2)(B), or 
        to comply with the provisions of this part, as specified in 
        paragraph (2)(C), payments to the State under this part shall 
        be withheld in whole or in 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 
        (2)(B) or (2)(C) 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.
            ``(6) Judicial review.--
                    ``(A) 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.
                    ``(B) 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.
                    ``(C) 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.
    ``(d) Divided State Agency Responsibility.--For purposes of this 
section, where responsibility for ensuring that the requirements of 
this part are met with respect to children with disabilities who are 
convicted as adults under State law and incarcerated in adult prisons 
is assigned to a public agency other than the State educational agency 
pursuant to section 612(a)(11)(C), the Secretary, in instances where 
the Secretary finds that the failure to comply substantially with the 
provisions of this part are related to a failure by the public agency, 
shall take appropriate corrective action to ensure compliance with this 
part, except that--
            ``(1) any reduction or withholding of payments to the State 
        shall be proportionate to the total funds allotted under 
        section 611 to the State as the number of eligible children 
        with disabilities in adult prisons under the supervision of the 
        other public agency is proportionate to the number of eligible 
        individuals with disabilities in the State under the 
        supervision of the State educational agency; and
            ``(2) any withholding of funds under paragraph (1) shall be 
        limited to the specific agency responsible for the failure to 
        comply with this part.
    ``(e) State and Local Monitoring.--
            ``(1) In general.--The State educational agency shall 
        monitor and enforce implementation of this Act, implement a 
        system of monitoring the benchmarks in the State's compliance 
        plan under subsection (b)(2)(C), and require local educational 
        agencies to monitor and enforce implementation of this Act.
            ``(2) Additional enforcement options.--If a State 
        educational agency determines that a local educational agency 
        is not meeting the requirements of this part, including the 
        benchmarks in the State's compliance plan, the State 
        educational agency shall prohibit the local educational agency 
        from treating funds received under this part as local funds 
        under section 613(a)(2)(C) for any fiscal year.

``SEC. 617. ADMINISTRATION.

    ``(a) Responsibilities of Secretary.--The Secretary shall--
            ``(1) cooperate with, and (directly or by grant or 
        contract) furnish technical assistance necessary to, a 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) Confidentiality.--The Secretary shall take appropriate 
action, in accordance with 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 this part.
    ``(c) Personnel.--The Secretary is authorized to hire qualified 
personnel necessary to carry out the Secretary's duties under 
subsection (a) and under sections 618, 661, and 664, 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 not more than 20 such 
personnel shall be employed at any 1 time.
    ``(d) Model Forms.--Not later than the date that the Secretary 
publishes final regulations under this Act, to implement amendments 
made by the Individuals with Disabilities Education Improvement Act of 
2004, the Secretary shall publish and disseminate widely to States, 
local educational agencies, and parent and community training and 
information centers--
            ``(1) a model IEP form;
            ``(2) a model individualized family service plan (IFSP) 
        form;
            ``(3) a model form of the notice of procedural safeguards 
        described in section 615(d); and
            ``(4) a model form of the prior written notice described in 
        section 615 (b)(3) and (c)(1) that is consistent with the 
        requirements of this part and is sufficient to meet such 
        requirements.

``SEC. 618. PROGRAM INFORMATION.

    ``(a) In General.--Each State that receives assistance under this 
part, and the Secretary of the Interior, shall provide data each year 
to the Secretary of Education and the public on--
            ``(1)(A) the number and percentage of children with 
        disabilities, by race, ethnicity, limited English proficiency 
        status, gender, and disability category, who are receiving a 
        free appropriate public education;
            ``(B) the number and percentage of children with 
        disabilities, by race, gender, and ethnicity, who are receiving 
        early intervention services;
            ``(C) the number and percentage of children with 
        disabilities, by race, ethnicity, limited English proficiency 
        status, gender, and disability category, who are participating 
        in regular education;
            ``(D) the number and percentage of children with 
        disabilities, by race, ethnicity, limited English proficiency 
        status, gender, and disability category, who are in separate 
        classes, separate schools or facilities, or public or private 
        residential facilities;
            ``(E) the number and percentage of children with 
        disabilities, by race, ethnicity, limited English proficiency 
        status, gender, and disability category, who, for each year of 
        age from age 14 through 21, stopped receiving special education 
        and related services because of program completion (including 
        graduation with a regular secondary school diploma), or other 
        reasons, and the reasons why those children stopped receiving 
        special education and related services;
            ``(F) the number and percentage of children with 
        disabilities, by race, gender, and ethnicity, who, from birth 
        through age 2, stopped receiving early intervention services 
        because of program completion or for other reasons;
            ``(G)(i) the number and percentage of children with 
        disabilities, by race, ethnicity, limited English proficiency 
        status, gender, and disability category, who are removed to an 
        interim alternative educational setting under section 
        615(k)(1);
            ``(ii) the acts or items precipitating those removals; and
            ``(iii) the number of children with disabilities who are 
        subject to long-term suspensions or expulsions;
            ``(H) the incidence and duration of disciplinary actions by 
        race, ethnicity, limited English proficiency status, gender, 
        and disability category, of children with disabilities, 
        including suspensions of 1 day or more;
            ``(I) the number and percentage of children with 
        disabilities who are removed to alternative educational 
        settings or expelled as compared to children without 
        disabilities who are removed to alternative educational 
        settings or expelled;
            ``(J) the number of due process complaints filed under 
        section 615 and the number of hearings conducted;
            ``(K) the number of hearings requested under section 615(k) 
        and the number of changes in placements ordered as a result of 
        those hearings;
            ``(L) the number of hearings requested under section 
        615(k)(3)(B)(ii) and the number of changes in placements 
        ordered as a result of those hearings; and
            ``(M) the number of mediations held and the number of 
        settlement agreements reached through such mediations;
            ``(2) the number and percentage of infants and toddlers, by 
        race, and ethnicity, who are at risk of having substantial 
        developmental delays (as defined in section 632), and who are 
        receiving early intervention services under part C; and
            ``(3) any other information that may be required by the 
        Secretary.
    ``(b) Data Reporting.--The data described in subsection (a) shall 
be reported by each State at the school district and State level in a 
manner that does not result in the disclosure of data identifiable to 
individual children.
    ``(c) Technical Assistance.--The Secretary may provide technical 
assistance to States to ensure compliance with the data collection and 
reporting requirements under this Act.
    ``(d) 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);
                    ``(B) the placement in particular educational 
                settings of such children; and
                    ``(C) the incidence, duration, and type of 
                disciplinary actions, including suspensions and 
                expulsions.
            ``(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 through 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 through 5, residing 
        in the State.
    ``(c) Allocations to States.--
            ``(1) In general.--The Secretary shall allocate the amount 
        made available to carry out this section for a fiscal year 
        among the States in accordance with paragraph (2) or (3), as 
        the case may be.
            ``(2) Increase in funds.--If the amount available for 
        allocations to States under paragraph (1) is equal to or 
        greater than the amount allocated to the States under this 
        section for the preceding fiscal year, those allocations shall 
        be calculated as follows:
                    ``(A) Allocation.--
                            ``(i) In general.--Except as provided in 
                        subparagraph (B), the Secretary shall--
                                    ``(I) allocate to each State the 
                                amount the State received under this 
                                section for fiscal year 1997;
                                    ``(II) allocate 85 percent of any 
                                remaining funds to States on the basis 
                                of the States' relative populations of 
                                children aged 3 through 5; and
                                    ``(III) allocate 15 percent of 
                                those remaining funds to States on the 
                                basis of the States' relative 
                                populations of all children aged 3 
                                through 5 who are living in poverty.
                            ``(ii) Data.--For the purpose of making 
                        grants under this paragraph, the Secretary 
                        shall use the most recent population data, 
                        including data on children living in poverty, 
                        that are available and satisfactory to the 
                        Secretary.
                    ``(B) Limitations.--Notwithstanding subparagraph 
                (A), allocations under this paragraph shall be subject 
                to the following:
                            ``(i) Preceding years.--No State's 
                        allocation shall be less than its allocation 
                        under this section for the preceding fiscal 
                        year.
                            ``(ii) Minimum.--No State's allocation 
                        shall be less than the greatest of--
                                    ``(I) the sum of--
                                            ``(aa) the amount the State 
                                        received under this section for 
                                        fiscal year 1997; and
                                            ``(bb) \1/3\ of 1 percent 
                                        of the amount by which the 
                                        amount appropriated under 
                                        subsection (j) for the fiscal 
                                        year exceeds the amount 
                                        appropriated for this section 
                                        for fiscal year 1997;
                                    ``(II) the sum of--
                                            ``(aa) the amount the State 
                                        received under this section for 
                                        the preceding fiscal year; and
                                            ``(bb) that amount 
                                        multiplied by the percentage by 
                                        which the increase in the funds 
                                        appropriated under this section 
                                        from the preceding fiscal year 
                                        exceeds 1.5 percent; or
                                    ``(III) the sum of--
                                            ``(aa) the amount the State 
                                        received under this section for 
                                        the preceding fiscal year; and
                                            ``(bb) that amount 
                                        multiplied by 90 percent of the 
                                        percentage increase in the 
                                        amount appropriated under this 
                                        section from the preceding 
                                        fiscal year.
                            ``(iii) Maximum.--Notwithstanding clause 
                        (ii), no State's allocation under this 
                        paragraph shall exceed the sum of--
                                    ``(I) the amount the State received 
                                under this section for the preceding 
                                fiscal year; and
                                    ``(II) that amount multiplied by 
                                the sum of 1.5 percent and the 
                                percentage increase in the amount 
                                appropriated under this section from 
                                the preceding fiscal year.
                    ``(C) Ratable reductions.--If the amount available 
                for allocations under this paragraph is insufficient to 
                pay those allocations in full, those allocations shall 
                be ratably reduced, subject to subparagraph (B)(i).
            ``(3) Decrease in funds.--If the amount available for 
        allocations to States under paragraph (1) is less than the 
        amount allocated to the States under this section for the 
        preceding fiscal year, those allocations shall be calculated as 
        follows:
                    ``(A) Allocations.--If the amount available for 
                allocations is greater than the amount allocated to the 
                States for fiscal year 1997, each State shall be 
                allocated the sum of--
                            ``(i) the amount the State received under 
                        this section for fiscal year 1997; and
                            ``(ii) an amount that bears the same 
                        relation to any remaining funds as the increase 
                        the State received under this section for the 
                        preceding fiscal year over fiscal year 1997 
                        bears to the total of all such increases for 
                        all States.
                    ``(B) If the amount available for allocations under 
                this paragraph is equal to or less than the amount 
                allocated under this section to the States for fiscal 
                year 1997, each State shall be allocated the amount the 
                State received for that year, ratably reduced, if 
                necessary.
    ``(d) Reservation for State Activities.--
            ``(1) In general.--Each State may reserve not more than the 
        amount described in paragraph (2) for administration and other 
        State-level activities in accordance with subsections (e) and 
        (f).
            ``(2) Amount described.--For each fiscal year, the 
        Secretary shall determine and report to the State educational 
        agency an amount that is 25 percent of the amount the State 
        received under this section for fiscal year 1997, cumulatively 
        adjusted by the Secretary for each succeeding fiscal year by 
        the lesser of--
                    ``(A) the percentage increase, if any, from the 
                preceding fiscal year in the State's allocation under 
                this section; or
                    ``(B) the percentage increase, if any, from the 
                preceding fiscal year in the Consumer Price Index For 
                All Urban Consumers published by the Bureau of Labor 
                Statistics of the Department of Labor.
    ``(e) State Administration.--
            ``(1) In general.--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) a 
        State may use not more than 20 percent of the maximum amount 
        the State may reserve under subsection (d) for any fiscal year.
            ``(2) Administration of part c.--Funds described in 
        paragraph (1) may also be used for the administration of part C 
        of this Act, if the State educational agency is the lead agency 
        for the State under that part.
    ``(f) Other State-Level Activities.--Each State shall use any funds 
the State reserves under subsection (d) and does not use for 
administration under subsection (e)--
            ``(1) for support services (including establishing and 
        implementing the mediation process required by section 615(e)), 
        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 through 5;
            ``(2) for direct services for children eligible for 
        services under this section;
            ``(3) for activities at the State and local levels to meet 
        the performance goals established by the State under section 
        612(a)(15);
            ``(4) 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 more than 1 
        percent of the amount received by the State under this section 
        for a fiscal year; or
            ``(5) to provide early intervention services (which shall 
        include an educational component that promotes school readiness 
        and incorporates pre-literacy, language, and numeracy skills) 
        in accordance with part C to children with disabilities who are 
        eligible for services under this section and who previously 
        received services under part C until such children enter, or 
        are eligible under State law to enter, kindergarten.
    ``(g) Subgrants to Local Educational Agencies.--
            ``(1) Subgrants required.--Each State that receives a grant 
        under this section for any fiscal year shall distribute all of 
        the grant funds that the State does not reserve under 
        subsection (d) to local educational agencies in the State that 
        have established their eligibility under section 613, as 
        follows:
                    ``(A) Base payments.--The State shall first award 
                each local educational agency described in paragraph 
                (1) the amount that agency would have received under 
                this section for fiscal year 1997 if the State had 
                distributed 75 percent of its grant for that year under 
                section 619(c)(3), as such section was then in effect.
                    ``(B) Allocation of remaining funds.--After making 
                allocations under subparagraph (A), the State shall--
                            ``(i) allocate 85 percent of any remaining 
                        funds to those local educational agencies on 
                        the basis of the relative numbers of children 
                        enrolled in public and private elementary 
                        schools and secondary schools within the local 
                        educational agency's jurisdiction; and
                            ``(ii) allocate 15 percent of those 
                        remaining funds to those local educational 
                        agencies in accordance with their relative 
                        numbers of children living in poverty, as 
                        determined by the State educational agency.
            ``(2) Reallocation of funds.--If a State educational agency 
        determines that a local educational agency is adequately 
        providing a free appropriate public education to all children 
        with disabilities aged 3 through 5 residing in the area served 
        by that agency with State and local funds, the State 
        educational agency may reallocate any portion of the funds 
        under this section that are not needed by that local 
        educational agency to provide a free appropriate public 
        education to other local educational agencies in the State that 
        are not adequately providing special education and related 
        services to all children with disabilities aged 3 through 5 
        residing in the areas the other local educational agencies 
        serve.
    ``(h) 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.
    ``(i) Definition.--For the purpose of this section, the term 
`State' means each of the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico.
    ``(j) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated such sums as 
may be necessary.

            ``PART C--INFANTS AND TODDLERS WITH DISABILITIES

``SEC. 631. FINDINGS AND POLICY.

    ``(a) Findings.--Congress finds that there is an urgent and 
substantial need--
            ``(1) to enhance the development of infants and toddlers 
        with disabilities, to minimize their potential for 
        developmental delay, and to recognize the significant brain 
        development which occurs during a child's first 3 years of 
        life;
            ``(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 maximize the potential for individuals with 
        disabilities to live independently 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 all children, particularly minority, low-income, inner city, 
        and rural children, and infants and toddlers in foster care.
    ``(b) Policy.--It is the policy of the United States to provide 
financial assistance to States--
            ``(1) to develop and implement a statewide, comprehensive, 
        coordinated, multidisciplinary, interagency system that 
        provides 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);
            ``(3) to enhance State capacity to provide high quality 
        early intervention services and expand and improve existing 
        early intervention services being provided to infants and 
        toddlers with disabilities and their families; and
            ``(4) to encourage States to expand opportunities for 
        children under 3 years of age who would be at risk of having 
        substantial developmental delay if they did not receive early 
        intervention services.

``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 that--
                    ``(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 1 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 the 
                services 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, and sign language and cued 
                        language 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) teachers of the deaf;
                            ``(iv) occupational therapists;
                            ``(v) physical therapists;
                            ``(vi) psychologists;
                            ``(vii) social workers;
                            ``(viii) nurses;
                            ``(ix) nutritionists;
                            ``(x) family therapists;
                            ``(xi) orientation and mobility 
                        specialists;
                            ``(xii) vision specialists, including 
                        opthamologists and optometrists; and
                            ``(xiii) 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 1 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--
                            ``(i) at-risk infants and toddlers; and
                            ``(ii) children with disabilities who are 
                        eligible for services under section 619 and who 
                        previously received services under this part 
                        until such children enter, or are eligible 
                        under State law to enter, kindergarten.

``SEC. 633. GENERAL AUTHORITY.

    ``The Secretary shall, in accordance with this part, make grants to 
States (from their allotments 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, infants or toddlers with disabilities who are 
        homeless children, infants or toddlers with disabilities who 
        are wards of the State, and infants or toddlers with 
        disabilities who have a parent who is a member of the Armed 
        Forces, including a member of the National Guard or Reserves; 
        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--
                    ``(A) will be used by the State in carrying out 
                programs under this part; and
                    ``(B) covers, at a minimum, all infants and 
                toddlers with--
                            ``(i) a developmental delay of 35 percent 
                        or more in 1 of the developmental areas 
                        described in section 632(5)(A)(i); or
                            ``(ii) a developmental delay of 25 percent 
                        or more in 2 or more of the developmental areas 
                        described in section 632(5)(A)(i).
            ``(2) A State policy that is in effect and that ensures 
        that appropriate early intervention services are available to 
        all infants and toddlers with disabilities and their families, 
        including Indian infants and toddlers and their families 
        residing on a reservation geographically located in the State.
            ``(3) 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.
            ``(4) 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.
            ``(5) 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.
            ``(6) 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 (10) to all primary 
        referral sources, especially hospitals, physicians, homeless 
        family shelters, medicaid and State child health insurance 
        program enrollment offices, health and mental health clinics, 
        public schools in low-income areas serving low-income children, 
        staff in State and local child welfare agencies, judges, and 
        base commanders or their designees, 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.
            ``(7) A central directory that includes information on 
        early intervention services, resources, and experts available 
        in the State and research and demonstration projects being 
        conducted in the State.
            ``(8) A comprehensive system of personnel development, 
        including the training of paraprofessionals and the training of 
        primary referral sources with respect to the basic components 
        of early intervention services available in the State, which 
        comprehensive system 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.
            ``(9) 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 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, 
        except that nothing in this part (including this paragraph) 
        shall be construed to prohibit the use of paraprofessionals and 
        assistants who are appropriately trained and supervised in 
        accordance with State law, regulation, or written policy, to 
        assist in the provision of early intervention services under 
        this part to infants and toddlers with disabilities.
            ``(10) 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)(2) to the appropriate 
                agencies;
                    ``(D) the development of procedures to ensure that 
                services are provided to infants and toddlers with 
                disabilities 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.
            ``(11) 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.
            ``(12) A procedure for securing timely reimbursements of 
        funds used under this part in accordance with section 640(a).
            ``(13) Procedural safeguards with respect to programs under 
        this part, as required by section 639.
            ``(14) A system for compiling data requested by the 
        Secretary under section 618 that relates to this part.
            ``(15) A State interagency coordinating council that meets 
        the requirements of section 641.
            ``(16) Policies and procedures to ensure that, consistent 
        with section 636(d)(5) to the maximum extent appropriate, early 
        intervention services are provided in natural environments 
        unless a specific outcome cannot be met satisfactorily for the 
        infant or toddler in a natural environment.
            ``(17) A procedure to ensure that early intervention 
        services and evaluations are available to infants or toddlers 
        with disabilities who are--
                    ``(A) homeless children; and
                    ``(B) wards of the State or in foster care, or 
                both.
    ``(b) Flexibility To Serve Children 3 Years of Age to Under 6 Years 
of Age.--
            ``(1) In general.--A statewide system described in section 
        633 may include a State policy, developed and implemented 
        jointly by the lead agency and the State educational agency, 
        under which parents of children with disabilities who are 
        eligible for services under section 619 and previously received 
        services under this part, may choose the continuation of early 
        intervention services (which shall include an educational 
        component that promotes school readiness and incorporates 
        preliteracy, language, and numeracy skills) for such children 
        under this part until such children enter, or are eligible 
        under State law to enter, kindergarten.
            ``(2) Requirements.--If a statewide system includes a State 
        policy described in paragraph (1), the statewide system shall 
        ensure--
                    ``(A) that parents of infants or toddlers with 
                disabilities (as defined in section 632(5)(A)) provide 
                informed written consent to the State, before such 
                infants and toddlers reach 3 years of age, as to 
                whether such parents intend to choose the continuation 
                of early intervention services pursuant to this 
                subsection for such infants or toddlers;
                    ``(B) that the State policy will not affect the 
                right of any child served pursuant to this subsection 
                to instead receive a free appropriate public education 
                under part B;
                    ``(C) that parents of children served pursuant to 
                this subsection are provided with annual notice--
                            ``(i) of such parents' right to elect 
                        services pursuant to this subsection or under 
                        part B; and
                            ``(ii) fully explaining the differences 
                        between receiving services pursuant to this 
                        subsection and receiving services under part B, 
                        including--
                                    ``(I) the types of services 
                                available under both provisions;
                                    ``(II) applicable procedural 
                                safeguards under both provisions, 
                                including due-process protections and 
                                mediation or other dispute resolution 
                                options; and
                                    ``(III) the possible costs, if any 
                                (including any fees to be charged to 
                                families as described in section 
                                632(4)(B)) to parents under both 
                                provisions;
                    ``(D) that the conference under section 
                637(a)(9)(A)(ii)(II), the review under section 
                637(a)(9)(B), and the establishment of a transition 
                plan under section 637(a)(9)(C) occur not less than 90 
                days (and at the discretion of the parties to the 
                conference, not more than 9 months) before each of the 
                following:
                            ``(i) the time the child will first be 
                        eligible for services under part B, including 
                        under section 619; and
                            ``(ii) if the child is receiving services 
                        in accordance with this subsection, the time 
                        the child will no longer receive those 
                        services;
                    ``(E) the continuance of all early intervention 
                services outlined in the child's individualized family 
                service plan under section 636 while any eligibility 
                determination is being made for services under this 
                subsection;
                    ``(F) that services provided pursuant to this 
                subsection include an educational component that 
                promotes school readiness and incorporates preliteracy, 
                language, and numeracy skills and are provided in 
                accordance with an individualized family service plan 
                under section 636; and
                    ``(G) the referral for evaluation for early 
                intervention services of a child below the age of 3 who 
                experiences a substantiated case of exposure to 
                violence or trauma.
            ``(3) Reporting requirement.--If a statewide system 
        includes a State policy described in paragraph (1), the State 
        shall submit to the Secretary, in the State's report under 
        section 637(b)(4)(A), a report on--
                    ``(A) the percentage of children with disabilities 
                who are eligible for services under section 619 but 
                whose parents choose for such children to continue to 
                receive early intervention services under this part; 
                and
                    ``(B) the number of children who are eligible for 
                services under section 619 who instead continue to 
                receive early intervention services under this part.
            ``(4) Rule of construction.--Nothing in this subsection 
        shall be construed to require a provider of services under this 
        part to provide a child served under this part with a free 
        appropriate public education.
            ``(5) Available funds.--If a statewide system includes a 
        State policy described in paragraph (1), the policy shall 
        describe the funds (including an identification as Federal, 
        State, or local funds) that will be used to ensure that the 
        option described in paragraph (1) is available to eligible 
        children and families who provide the consent described in 
        paragraph (2)(A), including fees to be charged to families as 
        described in section 632(4)(B).
    ``(c) Construction.--Nothing in subsection (a)(5) shall be 
construed to alter the responsibility of a State under title XIX of the 
Social Security Act with respect to early and periodic screening, 
diagnostic, and treatment services (as defined in section 1905(r) of 
such Act).

``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), including a description of the 
        appropriate transition services for the child.
    ``(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 the 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 measurable outcomes expected to be 
        achieved for the infant or toddler and the family, including, 
        as appropriate, preliteracy and language skills, 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 will appropriately be provided, 
        including a justification of the extent, if any, to which the 
        services will not be provided in a natural environment;
            ``(6) the projected dates for initiation of services and 
        the anticipated length, duration, and frequency of the 
        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, including 
        transition services; 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 the parents shall be obtained prior to the 
provision of early intervention services described in such plan. If the 
parents do not provide consent with respect to a particular early 
intervention service, then only the early intervention services to 
which 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. The 
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 certification to the Secretary that the 
        arrangements to establish financial responsibility for services 
        provided under this part pursuant to section 640(b) are current 
        as of the date of submission of the certification;
            ``(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) if the State provides services to at-risk infants and 
        toddlers through the system, a description of such services;
            ``(5) a description of the uses for which funds will be 
        expended in accordance with this part;
            ``(6) a description of the State policies and procedures 
        that require the referral for evaluation for early intervention 
        services of a child under the age of 3 who--
                    ``(A) is involved in a substantiated case of child 
                abuse or neglect; or
                    ``(B) is identified as affected by illegal 
                substance abuse, or withdrawal symptoms resulting from 
                prenatal drug exposure;
            ``(7) a description of the procedure used to ensure that 
        resources are made available under this part for all geographic 
        areas within the State;
            ``(8) 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;
            ``(9) 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 
                (and children receiving those services under section 
                635(b)) to preschool, other appropriate services, or 
                exiting the program, including a description of how--
                            ``(i) the families of such toddlers and 
                        children will be included in the transition 
                        plans required by subparagraph (C); and
                            ``(ii) the lead agency designated or 
                        established under section 635(a)(10) 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 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, not 
                                more than 9 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 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, including, as 
                appropriate, steps to exit from the program; and
            ``(10) such other information and assurances as the 
        Secretary may reasonably require.
            ``(11) a description of policies and procedures to ensure 
        that infants or toddlers with disabilities who are homeless 
        children and their families and infants or toddlers with 
        disabilities who are wards of the State have access to 
        multidisciplinary evaluations and early intervention services.
    ``(b) Assurances.--The application described in subsection (a)--
            ``(1) shall provide satisfactory assurance that Federal 
        funds made available under section 643 to the State will be 
        expended in accordance with this part;
            ``(2) shall contain an assurance that the State will comply 
        with the requirements of section 640;
            ``(3) shall provide satisfactory assurance that the control 
        of funds provided under section 643, and title to property 
        derived from those funds, will be in a public agency for the 
        uses and purposes provided in this part and that a public 
        agency will administer such funds and property;
            ``(4) shall provide for--
                    ``(A) making 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) keeping such reports and affording such 
                access to the reports as the Secretary may find 
                necessary to ensure the correctness and verification of 
                the reports and proper disbursement of Federal funds 
                under this part;
            ``(5) provide satisfactory assurance that Federal funds 
        made available under section 643 to the State--
                    ``(A) will not be commingled with State funds; and
                    ``(B) will be used so as to supplement the level of 
                State and local funds expended for infants and toddlers 
                with disabilities and their families and in no case to 
                supplant those State and local funds;
            ``(6) shall provide satisfactory assurance that such fiscal 
        control and fund accounting procedures will be adopted as may 
        be necessary to ensure proper disbursement of, and accounting 
        for, Federal funds paid under section 643 to the State;
            ``(7) shall provide satisfactory assurance that policies 
        and procedures have been adopted to ensure meaningful 
        involvement of underserved groups, including minority, low-
        income, homeless, and rural families and children with 
        disabilities who are wards of the State, in the planning and 
        implementation of all the requirements of this part; and
            ``(8) shall contain 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 C, as in effect before the date of enactment 
of the Individuals with Disabilities Education Improvement Act of 2004, 
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.
    ``(f) Modifications Required by the Secretary.--The Secretary may 
require a State to modify its application under this section, but only 
to the extent necessary to ensure the State's compliance with this 
part, if--
            ``(1) an amendment is made to this Act, or a Federal 
        regulation issued under this Act;
            ``(2) a new interpretation of this Act is made by a Federal 
        court or the State's highest court; or
            ``(3) an official finding of noncompliance with Federal law 
        or regulations is made with respect to the State.

``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;
            ``(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;
            ``(4) with the written consent of the parents, to continue 
        to provide early intervention services under this part to 
        children with disabilities from their 3rd birthday to the 
        beginning of the following school year, in lieu of a free 
        appropriate public education provided in accordance with part 
        B; and
            ``(5) in any State that does not provide services for at-
        risk infants and toddlers under section 637(a)(4), to 
        strengthen the statewide system by initiating, expanding, or 
        improving collaborative efforts related to at-risk infants and 
        toddlers, including establishing linkages with appropriate 
        public or private community-based organizations, services, and 
        personnel for the purposes of--
                    ``(A) identifying and evaluating at-risk infants 
                and toddlers;
                    ``(B) making referrals of the infants and toddlers 
                identified and evaluated under subparagraph (A); and
                    ``(C) conducting periodic follow-up on each such 
                referral to determine if the status of the infant or 
                toddler involved has changed with respect to the 
                eligibility of the infant or toddler for services under 
                this part.

``SEC. 639. PROCEDURAL SAFEGUARDS.

    ``(a) Minimum Procedures.--The procedural safeguards required to be 
included in a statewide system under section 635(a)(13) 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 infant or toddler are not 
        known or cannot be found or the infant or toddler is a ward of 
        the State, including the assignment of an individual (who shall 
        not be an employee of the State lead agency, or other State 
        agency, and who shall not be 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, or placement of the 
        infant or toddler with a disability, or the provision of 
        appropriate early intervention services to the infant or 
        toddler.
            ``(7) Procedures designed to ensure 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, except that--
                    ``(A) any reference in the 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)(10);
                    ``(B) any reference in the 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 the 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 that would have 
been paid for from another public or private source, including any 
medical program administered by the Secretary of Defense, 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 that has ultimate responsibility 
for the payment.
    ``(b) Obligations Related to and Methods of Ensuring Services.--
            ``(1) Establishing financial responsibility for services.--
                    ``(A) In general.--The Chief Executive Officer of a 
                State or designee of the officer shall ensure that an 
                interagency agreement or other mechanism for 
                interagency coordination is in effect between each 
                public agency and the State educational agency, in 
                order to ensure--
                            ``(i) the provision of, and financial 
                        responsibility for, services provided under 
                        this part; and
                            ``(ii) such services are consistent with 
                        the requirements of section 635 and the State's 
                        application pursuant to section 637, including 
                        the provision of such services during the 
                        pendency of any dispute.
                    ``(B) Consistency between agreements or mechanisms 
                under parts b and d.--The Chief Executive Officer of a 
                State or designee of the officer shall ensure that the 
                terms and conditions of such agreement or mechanism are 
                consistent with the terms and conditions of the State's 
                agreement or mechanism under section 612(a)(12).
            ``(2) Reimbursement for services by public agency.--
                    ``(A) In general.--If a public agency other than an 
                educational agency fails to provide or pay for the 
                services pursuant to an agreement required under 
                paragraph (1) the local educational agency or State 
                agency (as determined by the Chief Executive Officer or 
                designee) shall provide or pay for the provision of 
                such services to the child.
                    ``(B) Reimbursement.--Such local educational agency 
                or State agency is authorized to 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 educational agency or State 
                agency pursuant to the terms of the interagency 
                agreement or other mechanism required under paragraph 
                (1).
            ``(3) Special rule.--The requirements of paragraph (1) may 
        be met through--
                    ``(A) State statute or regulation;
                    ``(B) signed agreements between respective agency 
                officials that clearly identify the responsibilities of 
                each agency relating to the provision of services; or
                    ``(C) other appropriate written methods as 
                determined by the Chief Executive Officer of the State 
                or designee of the officer and approved by the 
                Secretary through the review and approval of the 
                State's application pursuant to section 637.
    ``(c) 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(a)(10) 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 1 such member shall be a parent of an infant or 
                toddler with a disability or a child with a disability 
                aged 6 or younger, not less than one other member shall 
                be a foster parent of a child with a disability, not 
                less than one other member shall be a grandparent or 
                other relative acting in the place of a natural or 
                adoptive parent of a child with a disability, and not 
                less than 1 other member shall be a representative of 
                children with disabilities in military families.
                    ``(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 1 member shall 
                be from the State legislature.
                    ``(D) Personnel preparation.--At least 1 member 
                shall be involved in personnel preparation.
                    ``(E) Agency for early intervention services.--At 
                least 1 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 1 
                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) State medicaid agency.--At least 1 member 
                shall be from the agency responsible for the State 
                medicaid program.
                    ``(H) Head start agency.--At least 1 representative 
                from a Head Start agency or program in the State.
                    ``(I) Child care agency.--At least 1 representative 
                from a State agency responsible for child care.
                    ``(J) Agency for health insurance.--At least 1 
                member shall be from the agency responsible for the 
                State regulation of health insurance.
                    ``(K) Office of the coordinator of education of 
                homeless children and youth.--Not less than 1 
                representative designated by the Office of Coordinator 
                for Education of Homeless Children and Youths.
                    ``(L) State child welfare agency.--Not less than 1 
                representative from the State child welfare agency 
                responsible for foster care.
                    ``(M) Representative of foster children.--Not less 
                than 1 individual who represents the interests of 
                children in foster care and understands such children's 
                education needs, such as an attorney for children in 
                foster care, a guardian ad litem, a court appointed 
                special advocate, a judge, or an education surrogate 
                for children in foster 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 
        BIA-funded school, from the Indian Health Service or the tribe 
        or tribal council.
    ``(c) Meetings.--The council shall meet at least quarterly and in 
such places as the council determines 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 the 
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(a)(10) in the 
                performance of the responsibilities set forth 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 
        from birth through age 5. The council may advise appropriate 
        agencies in the State with respect to the integration of 
        services for infants and toddlers with disabilities and at-risk 
        infants and toddlers and their families, regardless of whether 
        at-risk infants and toddlers are eligible for early 
        intervention services in the State.
    ``(f) Conflict of Interest.--No member of the council shall cast a 
vote on any matter that is likely to provide a 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, and 618 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)(10);
            ``(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 Outlying Areas.--
            ``(1) In general.--From the sums appropriated to carry out 
        this part for any fiscal year, the Secretary may reserve not 
        more than 1 percent for payments to Guam, American Samoa, the 
        United States 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 outlying 
        areas, 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 schools 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 
        subsection, the tribe, tribal organization, or consortium shall 
        submit such information to the Secretary of the Interior as is 
        needed to determine the amounts to be distributed under 
        paragraph (2).
            ``(4) Use of funds.--The funds received by a tribe, tribal 
        organization, or consortium 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 consortium 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 consortium 
        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(h)(3)(E). 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) and 
        (3), from the funds remaining for each fiscal year after the 
        reservation and payments under subsections (a), (b), and (e), 
        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 paragraph 
        (3), no State shall receive an amount under this section for 
        any fiscal year that is less than the greater of--
                    ``(A) \1/2\ of 1 percent of the remaining amount 
                described in paragraph (1); or
                    ``(B) $500,000.
            ``(3) 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 allotments to such 
                States for such year.
                    ``(B) Additional funds.--If additional funds become 
                available for making payments under this subsection for 
                a fiscal year, allotments that were reduced under 
                subparagraph (A) shall be increased on the same basis 
                the allotments were reduced.
            ``(4) 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.
    ``(e) Reservation for State Bonus Grants.--The Secretary shall 
reserve 10 percent of the amount by which the amount appropriated under 
section 644 for any fiscal year exceeds $434,159,000 to make allotments 
to States that are carrying out the policy described in section 635(b), 
in accordance with the formula described in subsection (c)(1) without 
regard to subsections (c) (2) and (3).

``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 2004 through 2009.

  ``PART D--NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF CHILDREN WITH 
                              DISABILITIES

``SEC. 650. FINDINGS.

    ``Congress finds the following:
            ``(1) The Federal Government has an ongoing obligation to 
        support activities that contribute to positive results for 
        children with disabilities, enabling them to lead productive 
        and independent adult lives.
            ``(2) Systemic change benefiting all students, including 
        children with disabilities, requires the involvement of States, 
        local educational agencies, parents, individuals with 
        disabilities and their families, teachers and other service 
        providers, and other interested individuals and organizations 
        to develop and implement comprehensive strategies that improve 
        educational results for children with disabilities.
            ``(3) State educational agencies, in partnership with local 
        educational agencies, parents of children with disabilities, 
        and other individuals and organizations, are in the best 
        position to improve education for children with disabilities 
        and to address their special needs.
            ``(4) An effective educational system serving students with 
        disabilities should--
                    ``(A) maintain high academic achievement standards 
                and clear performance goals for children with 
                disabilities, consistent with the standards and 
                expectations for all students in the educational 
                system, and provide for appropriate and effective 
                strategies and methods to ensure that all children with 
                disabilities have the opportunity to achieve those 
                standards and goals;
                    ``(B) clearly define, in objective, measurable 
                terms, the school and post-school results that children 
                with disabilities are expected to achieve; and
                    ``(C) promote transition services and coordinate 
                State and local education, social, health, mental 
                health, and other services, in addressing the full 
                range of student needs, particularly the needs of 
                children with disabilities who need significant levels 
                of support to participate and learn in school and the 
                community.
            ``(5) The availability of an adequate number of qualified 
        personnel is critical to serve effectively children with 
        disabilities, to assume leadership positions in administration 
        and direct services, to provide teacher training, and to 
        conduct high quality research to improve special education.
            ``(6) High quality, comprehensive professional development 
        programs are essential to ensure that the persons responsible 
        for the education or transition of children with disabilities 
        possess the skills and knowledge necessary to address the 
        educational and related needs of those children.
            ``(7) Models of professional development should be 
        scientifically based and reflect successful practices, 
        including strategies for recruiting, preparing, and retaining 
        personnel.
            ``(8) Continued support is essential for the development 
        and maintenance of a coordinated and high quality program of 
        research to inform successful teaching practices and model 
        curricula for educating children with disabilities.
            ``(9) A comprehensive research agenda should be established 
        and pursued to promote the highest quality and rigor in special 
        education research, and to address the full range of issues 
        facing children with disabilities, parents of children with 
        disabilities, school personnel, and others.
            ``(10) Training, technical assistance, support, and 
        dissemination activities are necessary to ensure that parts B 
        and C are fully implemented and achieve high quality early 
        intervention, educational, and transitional results for 
        children with disabilities and their families.
            ``(11) Parents, teachers, administrators, and related 
        services personnel need technical assistance and information in 
        a timely, coordinated, and accessible manner in order to 
        improve early intervention, educational, and transitional 
        services and results at the State and local levels for children 
        with disabilities and their families.
            ``(12) Parent training and information activities assist 
        parents of a child with a disability in dealing with the 
        multiple pressures of parenting such a child and are of 
        particular importance in--
                    ``(A) playing a vital role in creating and 
                preserving constructive relationships between parents 
                of children with disabilities and schools by 
                facilitating open communication between the parents and 
                schools; encouraging dispute resolution at the earliest 
                possible point in time; and discouraging the escalation 
                of an adversarial process between the parents and 
                schools;
                    ``(B) ensuring the involvement of parents in 
                planning and decisionmaking with respect to early 
                intervention, educational, and transitional services;
                    ``(C) achieving high quality early intervention, 
                educational, and transitional results for children with 
                disabilities;
                    ``(D) providing such parents information on their 
                rights, protections, and responsibilities under this 
                Act to ensure improved early intervention, educational, 
                and transitional results for children with 
                disabilities;
                    ``(E) assisting such parents in the development of 
                skills to participate effectively in the education and 
                development of their children and in the transitions 
                described in section 673(b)(6);
                    ``(F) supporting the roles of such parents as 
                participants within partnerships seeking to improve 
                early intervention, educational, and transitional 
                services and results for children with disabilities and 
                their families; and
                    ``(G) supporting such parents who may have limited 
                access to services and supports, due to economic, 
                cultural, or linguistic barriers.
            ``(13) Support is needed to improve technological resources 
        and integrate technology, including universally designed 
        technologies, into the lives of children with disabilities, 
        parents of children with disabilities, school personnel, and 
        others through curricula, services, and assistive technologies.

 ``Subpart 1--State Personnel Preparation and Professional Development 
                                 Grants

``SEC. 651. PURPOSE; DEFINITION; PROGRAM AUTHORITY.

    ``(a) Purpose.--The purpose of this subpart is to assist State 
educational agencies in reforming and improving their systems for 
personnel preparation and professional development in early 
intervention, educational, and transition services in order to improve 
results for children with disabilities.
    ``(b) Definition.--In this subpart, the term `personnel' means 
special education teachers, regular education teachers, principals, 
administrators, related services personnel, paraprofessionals, and 
early intervention personnel serving infants, toddlers, preschoolers, 
or children with disabilities, except where a particular category of 
personnel, such as related services personnel, is identified.
    ``(c) Competitive Grants.--
            ``(1) In general.--Except as provided in subsection (d), 
        for any fiscal year for which the amount appropriated under 
        section 655, that remains after the Secretary reserves funds 
        under subsection (e) for the fiscal year, is less than 
        $100,000,000, the Secretary shall award grants, on a 
        competitive basis, to State educational agencies to carry out 
        the activities described in the State plan submitted under 
        section 653.
            ``(2) Priority.--In awarding grants under paragraph (1), 
        the Secretary may give priority to State educational agencies 
        that--
                    ``(A) are in States with the greatest personnel 
                shortages; or
                    ``(B) demonstrate the greatest difficulty meeting 
                the requirements of section 612(a)(14).
            ``(3) Minimum.--The Secretary shall make a grant to each 
        State educational agency selected under paragraph (1) in an 
        amount for each fiscal year that is--
                    ``(A) not less than $500,000, nor more than 
                $4,000,000, in the case of the 50 States, the District 
                of Columbia, and the Commonwealth of Puerto Rico; and
                    ``(B) not less than $80,000 in the case of an 
                outlying area.
            ``(4) Increases.--The Secretary may increase the amounts 
        under in paragraph (3) to account for inflation.
            ``(5) Factors.--The Secretary shall set the amount of each 
        grant under paragraph (1) after considering--
                    ``(A) the amount of funds available for making the 
                grants;
                    ``(B) the relative population of the State or 
                outlying area;
                    ``(C) the types of activities proposed by the State 
                or outlying area;
                    ``(D) the alignment of proposed activities with 
                section 612(a)(14);
                    ``(E) the alignment of proposed activities with the 
                State plans and applications submitted under sections 
                1111 and 2112, respectively, of the Elementary and 
                Secondary Education Act of 1965; and
                    ``(F) the use, as appropriate, of scientifically 
                based activities.
    ``(d) Formula Grants.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), for the first fiscal year for which the amount 
        appropriated under section 655, that remains after the 
        Secretary reserves funds under subsection (e) for the fiscal 
        year, is equal to or greater than $100,000,000, and for each 
        fiscal year thereafter, the Secretary shall allot to each State 
        educational agency, whose application meets the requirements of 
        this subpart, an amount that bears the same relation to the 
        amount appropriated as the amount the State received under 
        section 611(d) for that fiscal year bears to the amount of 
        funds received by all States (whose applications meet the 
        requirements of this subpart) under section 611(d) for that 
        fiscal year.
            ``(2) Minimum allotments for states that received 
        competitive grants.--
                    ``(A) In general.--The amount allotted under this 
                subsection to any State that received a competitive 
                multi-year grant under subsection (c) for which the 
                grant period has not expired shall be at least the 
                amount specified for that fiscal year in the State's 
                grant award document under that subsection.
                    ``(B) Special rule.--Each such State shall use the 
                minimum amount described in subparagraph (A) for the 
                activities described in its competitive grant award 
                document for that year, unless the Secretary approves a 
                request from the State to spend the funds on other 
                activities.
            ``(3) Minimum allotment.--The amount of any State 
        educational agency's allotment under this subsection for any 
        fiscal year shall not be less than--
                    ``(A) the greater of $500,000 or \1/2\ of 1 percent 
                of the total amount available under this subsection for 
                that year, in the case of each of the 50 States, the 
                District of Columbia, and the Commonwealth of Puerto 
                Rico; and
                    ``(B) $80,000, in the case of an outlying area.
    ``(e) Continuation Awards.--
            ``(1) In general.--Notwithstanding any other provision of 
        this subpart, from funds appropriated under section 655 for 
        each fiscal year, the Secretary shall reserve the amount that 
        is necessary to make a continuation award to any State (at the 
        request of the State) that received a multi-year award under 
        this part (as this part was in effect on the day before the 
        date of enactment of the Individuals with Disabilities 
        Education Improvement Act of 2004), to enable the State to 
        carry out activities in accordance with the terms of the multi-
        year award.
            ``(2) Prohibition.--A State that receives a continuation 
        award under paragraph (1) for any fiscal year may not receive 
        any other award under this subpart for that fiscal year.

``SEC. 652. ELIGIBILITY AND COLLABORATIVE PROCESS.

    ``(a) Eligible Applicants.--A State educational agency may apply 
for a grant under this subpart for a grant period of not less than 1 
year and not more than 5 years.
    ``(b) Partners.--
            ``(1) In general.--In order to be considered for a grant 
        under this subpart, a State educational agency shall establish 
        a partnership with local educational agencies and other State 
        agencies involved in, or concerned with, the education of 
        children with disabilities, including institutions of higher 
        education and the State agencies responsible for administering 
        part C, child care, and vocational rehabilitation programs.
            ``(2) Other partners.--In order to be considered for a 
        grant under this subpart, a State educational agency shall work 
        in partnership with other persons and organizations involved 
        in, and concerned with, the education of children with 
        disabilities, which may include--
                    ``(A) the Governor;
                    ``(B) parents of children with disabilities ages 
                birth through 26;
                    ``(C) parents of nondisabled children ages birth 
                through 26;
                    ``(D) individuals with disabilities;
                    ``(E) parent training and information centers or 
                community parent resource centers funded under sections 
                671 and 672, respectively;
                    ``(F) community based and other nonprofit 
                organizations involved in the education and employment 
                of individuals with disabilities;
                    ``(G) personnel as defined in section 651(b);
                    ``(H) the State advisory panel established under 
                part B;
                    ``(I) the State interagency coordinating council 
                established under part C;
                    ``(J) individuals knowledgeable about vocational 
                education;
                    ``(K) the State agency for higher education;
                    ``(L) public agencies with jurisdiction in the 
                areas of health, mental health, social services, and 
                juvenile justice;
                    ``(M) other providers of professional development 
                that work with infants, toddlers, preschoolers, and 
                children with disabilities; and
                    ``(N) other individuals.
            ``(3) Required partner.--If State law assigns 
        responsibility for teacher preparation and certification to an 
        individual, entity, or agency other than the State educational 
        agency, the State educational agency shall--
                    ``(A) include that individual, entity, or agency as 
                a partner in the partnership under this subsection; and
                    ``(B) ensure that any activities the State will 
                carry out under this subpart that are within that 
                partner's jurisdiction (which may include activities 
                described in section 654(b)) are carried out by that 
                partner.

``SEC. 653. APPLICATIONS.

    ``(a) In General.--
            ``(1) Submission.--A State educational agency that desires 
        to receive a grant under this subpart shall submit to the 
        Secretary an application at such time, in such manner, and 
        including such information as the Secretary may require.
            ``(2) State plan.--The application shall include a plan 
        that identifies and addresses the State and local needs for the 
        personnel preparation and professional development of 
        personnel, as well as individuals who provide direct 
        supplementary aids and services to children with disabilities, 
        and that--
                    ``(A) is designed to enable the State to meet the 
                requirements of section 612(a)(14) and section 635(a) 
                (8) and (9);
                    ``(B) is based on an assessment of State and local 
                needs that identifies critical aspects and areas in 
                need of improvement related to the preparation, ongoing 
                training, and professional development of personnel 
                that serve infants, toddlers, preschoolers, and 
                children with disabilities within the State, 
                including--
                            ``(i) current and anticipated personnel 
                        vacancies and shortages; and
                            ``(ii) the number of preservice programs; 
                        and
                    ``(C) is integrated and aligned, to the maximum 
                extent possible, with State plans and activities under 
                the Elementary and Secondary Education Act of 1965, the 
                Rehabilitation Act of 1973, and the Higher Education 
                Act of 1965.
            ``(3) Requirement.--The State application shall contain an 
        assurance that the State educational agency will carry out each 
        of the strategies described in subsection (b)(4).
    ``(b) Elements of State Personnel Preparation and Professional 
Development Plan.--Each professional development plan under subsection 
(a)(2) shall--
            ``(1) describe a partnership agreement that is in effect 
        for the period of the grant, which agreement shall specify--
                    ``(A) the nature and extent of the partnership 
                described in section 652(b) and the respective roles of 
                each member of the partnership, including the partner 
                described in section 652(b)(3) if applicable; and
                    ``(B) how the State will work with other persons 
                and organizations involved in, and concerned with, the 
                education of children with disabilities, including the 
                respective roles of each of the persons and 
                organizations;
            ``(2) describe how the strategies and activities described 
        in paragraph (4) will be coordinated with other public 
        resources (including part B and part C funds retained for use 
        at the State level for personnel and professional development 
        purposes) and private resources;
            ``(3) describe how the State will align its professional 
        development plan under this subpart with the plan and 
        application submitted under sections 1111 and 2112, 
        respectively, of the Elementary and Secondary Education Act of 
        1965;
            ``(4) describe what strategies the State will use to 
        address the professional development and personnel needs 
        identified under subsection (a)(2) and how those strategies 
        will be implemented, including--
                    ``(A) a description of the preservice and inservice 
                programs and activities to be supported under this 
                subpart that will provide personnel with the knowledge 
                and skills to meet the needs of, and improve the 
                performance and achievement of, infants, toddlers, 
                preschoolers, and children with disabilities; and
                    ``(B) how such strategies shall be integrated, to 
                the maximum extent possible, with other activities 
                supported by grants funded under this part, including 
                those under section 664;
            ``(5) provide an assurance that the State will provide 
        technical assistance to local educational agencies to improve 
        the quality of professional development available to meet the 
        needs of personnel who serve children with disabilities;
            ``(6) provide an assurance that the State will provide 
        technical assistance to entities that provide services to 
        infants and toddlers with disabilities to improve the quality 
        of professional development available to meet the needs of 
        personnel serving such children;
            ``(7) describe how the State will recruit and retain highly 
        qualified teachers and other qualified personnel in geographic 
        areas of greatest need;
            ``(8) describe the steps the State will take to ensure that 
        poor and minority children are not taught at higher rates by 
        teachers who are not highly qualified; and
            ``(9) describe how the State will assess, on a regular 
        basis, the extent to which the strategies implemented under 
        this subpart have been effective in meeting the performance 
        goals described in section 612(a)(15).
    ``(c) Peer Review.--
            ``(1) In general.--The Secretary shall use a panel of 
        experts who are competent, by virtue of their training, 
        expertise, or experience, to evaluate applications for grants 
        under section 651(c)(1).
            ``(2) Composition of panel.--A majority of a panel 
        described in paragraph (1) shall be composed of individuals who 
        are not employees of the Federal Government.
            ``(3) Payment of fees and expenses of certain members.--The 
        Secretary may use available funds appropriated to carry out 
        this subpart to pay the expenses and fees of panel members who 
        are not employees of the Federal Government.
    ``(d) Reporting Procedures.--Each State educational agency that 
receives a grant under this subpart shall submit annual performance 
reports to the Secretary. The reports shall describe the progress of 
the State in implementing its plan and analyze the effectiveness of the 
State's activities under this subpart.

``SEC. 654. USE OF FUNDS.

    ``(a) Professional Development Activities.--A State educational 
agency that receives a grant under this subpart shall use the grant 
funds to support activities in accordance with the State's plan 
described in section 653, including 1 or more of the following:
            ``(1) Carrying out programs that provide support to both 
        special education and regular education teachers of children 
        with disabilities and principals, such as programs that--
                    ``(A) provide teacher mentoring, team teaching, 
                reduced class schedules and case loads, and intensive 
                professional development;
                    ``(B) use standards or assessments for guiding 
                beginning teachers that are consistent with challenging 
                State student academic achievement and functional 
                standards and with the requirements for professional 
                development as defined in section 9101(34) of the 
                Elementary and Secondary Education Act of 1965; and
                    ``(C) encourage collaborative and consultative 
                models of providing early intervention, special 
                education, and related services.
            ``(2) Encouraging and supporting the training of special 
        education and regular education teachers and administrators to 
        effectively use and integrate technology--
                    ``(A) into curricula and instruction, including 
                training to improve the ability to collect, manage, and 
                analyze data to improve teaching, decisionmaking, 
                school improvement efforts, and accountability;
                    ``(B) to enhance learning by children with 
                disabilities; and
                    ``(C) to effectively communicate with parents.
            ``(3) Providing professional development activities that--
                    ``(A) improve the knowledge of special education 
                and regular education teachers concerning--
                            ``(i) the academic and developmental or 
                        functional needs of students with disabilities; 
                        or
                            ``(ii) effective instructional strategies, 
                        methods, and skills, and the use of State 
                        academic content standards and student academic 
                        achievement and functional standards, and State 
                        assessments, to improve teaching practices and 
                        student academic achievement;
                    ``(B) improve the knowledge of special education 
                and regular education teachers and principals and, in 
                appropriate cases, paraprofessionals, concerning 
                effective instructional practices and that--
                            ``(i) provide training in how to teach and 
                        address the needs of children with different 
                        learning styles and children with limited 
                        English proficiency;
                            ``(ii) involve collaborative groups of 
                        teachers, administrators, and, in appropriate 
                        cases, related services personnel;
                            ``(iii) provide training in methods of--
                                    ``(I) positive behavioral 
                                interventions and supports to improve 
                                student behavior in the classroom;
                                    ``(II) scientifically based reading 
                                instruction, including early literacy 
                                instruction;
                                    ``(III) early and appropriate 
                                interventions to identify and help 
                                children with disabilities;
                                    ``(IV) effective instruction for 
                                children with low incidence 
                                disabilities;
                                    ``(V) successful transitioning to 
                                postsecondary opportunities; and
                                    ``(VI) using classroom-based 
                                techniques to assist children prior to 
                                referral for special education;
                            ``(iv) provide training to enable personnel 
                        to work with and involve parents in their 
                        child's education, including parents of low 
                        income and limited English proficient children 
                        with disabilities;
                            ``(v) provide training for special 
                        education personnel and regular education 
                        personnel in planning, developing, and 
                        implementing effective and appropriate IEPs; 
                        and
                            ``(vi) provide training to meet the needs 
                        of students with significant health, mobility, 
                        or behavioral needs prior to serving such 
                        students;
                    ``(C) train administrators, principals, and other 
                relevant school personnel in conducting effective IEP 
                meetings; and
                    ``(D) Train early intervention, preschool, and 
                related services providers, and other relevant school 
                personnel, in conducting effective individualized 
                family service plan (IFSP) meetings.
            ``(4) Developing and implementing initiatives to promote 
        the recruitment and retention of highly qualified special 
        education teachers, particularly initiatives that have been 
        proven effective in recruitment and retaining highly qualified 
        teachers, including programs that provide--
                    ``(A) teacher mentoring from exemplary special 
                education teachers, principals, or superintendents;
                    ``(B) induction and support for special education 
                teachers during their first 3 years of employment as 
                teachers; or
                    ``(C) incentives, including financial incentives, 
                to retain special education teachers who have a record 
                of success in helping students with disabilities.
            ``(5) Carrying out programs and activities that are 
        designed to improve the quality of personnel who serve children 
        with disabilities, such as--
                    ``(A) innovative professional development programs 
                (which may be provided through partnerships that 
                include institutions of higher education), including 
                programs that train teachers and principals to 
                integrate technology into curricula and instruction to 
                improve teaching, learning, and technology literacy, 
                which professional development shall be consistent with 
                the definition of professional development in section 
                9101(34) of the Elementary and Secondary Education Act 
                of 1965; and
                    ``(B) the development and use of proven, cost 
                effective strategies for the implementation of 
                professional development activities, such as through 
                the use of technology and distance learning.
            ``(6) Carrying out programs and activities that are 
        designed to improve the quality of early intervention 
        personnel, including paraprofessionals and primary referral 
        sources, such as--
                    ``(A) professional development programs to improve 
                the delivery of early intervention services;
                    ``(B) initiatives to promote the recruitment and 
                retention of early intervention personnel; and
                    ``(C) interagency activities to ensure that 
                personnel are adequately prepared and trained.
    ``(b) Other Activities.--A State educational agency that receives a 
grant under this subpart shall use the grant funds to support 
activities in accordance with the State's plan described in section 
653, including 1 or more of the following:
            ``(1) Reforming special education and regular education 
        teacher certification (including recertification) or licensing 
        requirements to ensure that--
                    ``(A) special education and regular education 
                teachers have--
                            ``(i) the training and information 
                        necessary to address the full range of needs of 
                        children with disabilities across disability 
                        categories; and
                            ``(ii) the necessary subject matter 
                        knowledge and teaching skills in the academic 
                        subjects that they teach;
                    ``(B) special education and regular education 
                teacher certification (including recertification) or 
                licensing requirements are aligned with challenging 
                State academic content standards; and
                    ``(C) special education and regular education 
                teachers have the subject matter knowledge and teaching 
                skills, including technology literacy, necessary to 
                help students with disabilities meet challenging State 
                student academic achievement and functional standards.
            ``(2) Programs that establish, expand, or improve 
        alternative routes for State certification of special education 
        teachers for highly qualified individuals with a baccalaureate 
        or master's degree, including mid-career professionals from 
        other occupations, paraprofessionals, and recent college or 
        university graduates with records of academic distinction who 
        demonstrate the potential to become highly effective special 
        education teachers.
            ``(3) Teacher advancement initiatives for special education 
        teachers that promote professional growth and emphasize 
        multiple career paths (such as paths to becoming a career 
        teacher, mentor teacher, or exemplary teacher) and pay 
        differentiation.
            ``(4) Developing and implementing mechanisms to assist 
        local educational agencies and schools in effectively 
        recruiting and retaining highly qualified special education 
        teachers.
            ``(5) Reforming tenure systems, implementing teacher 
        testing for subject matter knowledge, and implementing teacher 
        testing for State certification or licensing, consistent with 
        title II of the Higher Education Act of 1965.
            ``(6) Funding projects to promote reciprocity of teacher 
        certification or licensing between or among States for special 
        education teachers, except that no reciprocity agreement 
        developed under this paragraph or developed using funds 
        provided under this subpart may lead to the weakening of any 
        State teaching certification or licensing requirement.
            ``(7) Developing or assisting local educational agencies to 
        serve children with disabilities through the development and 
        use of proven, innovative strategies to deliver intensive 
        professional development programs that are both cost effective 
        and easily accessible, such as strategies that involve delivery 
        through the use of technology, peer networks, and distance 
        learning.
            ``(8) Developing, or assisting local educational agencies 
        in developing, merit based performance systems, and strategies 
        that provide differential and bonus pay for special education 
        teachers.
            ``(9) Supporting activities that ensure that teachers are 
        able to use challenging State academic content standards and 
        student academic and functional achievement standards, and 
        State assessments for all children with disabilities, to 
        improve instructional practices and improve the academic 
        achievement of children with disabilities.
            ``(10) When applicable, coordinating with, and expanding 
        centers established under, section 2113(c)(18) of the 
        Elementary and Secondary Education Act of 1965 to benefit 
        special education teachers.
    ``(c) Contracts and Subgrants.--Each such State educational 
agency--
            ``(1) shall award contracts or subgrants to local 
        educational agencies, institutions of higher education, parent 
        training and information centers, or community parent resource 
        centers, as appropriate, to carry out its State plan under this 
        subpart; and
            ``(2) may award contracts and subgrants to other public and 
        private entities, including the lead agency under part C, to 
        carry out such plan.
    ``(d) Use of Funds for Professional Development.--A State 
educational agency that receives a grant under this subpart shall use--
            ``(1) not less than 75 percent of the funds the State 
        educational agency receives under the grant for any fiscal year 
        for activities under subsection (a); and
            ``(2) not more than 25 percent of the funds the State 
        educational agency receives under the grant for any fiscal year 
        for activities under subsection (b).
    ``(e) Grants to Outlying Areas.--Public Law 95-134, permitting the 
consolidation of grants to the outlying areas, shall not apply to funds 
received under this subpart.

``SEC. 655. 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 2004 through 
2009.

``Subpart 2--Scientifically Based Research, Technical Assistance, Model 
        Demonstration Projects, and Dissemination of Information

``SEC. 660. PURPOSE.

    ``The purpose of this subpart is--
            ``(1) to provide Federal funding for scientifically based 
        research, technical assistance, model demonstration projects, 
        and information dissemination to improve early intervention, 
        educational, and transitional results for children with 
        disabilities; and
            ``(2) to assist State educational agencies and local 
        educational agencies in improving their education systems.

``SEC. 661. ADMINISTRATIVE PROVISIONS.

    ``(a) Comprehensive Plan.--
            ``(1) In general.--After receiving input from interested 
        individuals with relevant expertise, the Secretary shall 
        develop and implement a comprehensive plan for activities 
        carried out under this subpart (other than activities assisted 
        under section 665 and subpart 3) in order to enhance the 
        provision of early intervention, educational, related and 
        transitional services to children with disabilities under parts 
        B and C. The plan shall be coordinated with the plan developed 
        pursuant to section 177(c) of the Education Sciences Reform Act 
        of 2002 and shall include mechanisms to address early 
        intervention, educational, related service and transitional 
        needs identified by State educational agencies in applications 
        submitted for State Personnel and Professional Development 
        grants under subpart 1 and for grants under this subpart.
            ``(2) Public comment.--The Secretary shall provide a public 
        comment period of at least 60 days on the plan.
            ``(3) Distribution of funds.--In implementing the plan, the 
        Secretary shall, to the extent appropriate, ensure that funds 
        are awarded to recipients under this subpart, subpart 3, and 
        subpart 4 to carry out activities that benefit, directly or 
        indirectly, children with the full range of disabilities and of 
        all ages.
            ``(4) Reports to congress.--The Secretary shall annually 
        report to Congress on the Secretary's activities under this 
        subpart, subpart 3, and subpart 4, including an initial report 
        not later than 12 months after the date of enactment of the 
        Individuals with Disabilities Education Improvement Act of 
        2004.
    ``(b) Eligible Applicants.--
            ``(1) In general.--Except as otherwise provided in this 
        subpart, the following entities are eligible to apply for a 
        grant, contract, or cooperative agreement under this subpart:
                    ``(A) A State educational agency.
                    ``(B) A local educational agency.
                    ``(C) A public charter school that is a local 
                educational agency under State law.
                    ``(D) An institution of higher education.
                    ``(E) Any other public agency.
                    ``(F) A private nonprofit organization.
                    ``(G) An outlying area.
                    ``(H) An Indian tribe or a tribal organization (as 
                defined under section 4 of the Indian Self-
                Determination and Education Assistance Act).
                    ``(I) A for-profit organization.
            ``(2) Special rule.--The Secretary may limit the entities 
        eligible for an award of a grant, contract, or cooperative 
        agreement to 1 or more categories of eligible entities 
        described in paragraph (1).
    ``(c) Special Populations.--
            ``(1) Application requirement.--In making an award of a 
        grant, contract, or cooperative agreement under this subpart, 
        subpart 3, and subpart 4, the Secretary shall, as appropriate, 
        require an applicant to meet the criteria set forth by the 
        Secretary under this subpart and demonstrate how the applicant 
        will address the needs of children with disabilities from 
        minority backgrounds.
            ``(2) Outreach and technical assistance.--Notwithstanding 
        any other provision of this Act, the Secretary shall reserve at 
        least 1 percent of the total amount of funds made available to 
        carry out this subpart, subpart 3, or subpart 4 for 1 or both 
        of the following activities:
                    ``(A) To provide outreach and technical assistance 
                to Historically Black Colleges and Universities, and to 
                institutions of higher education with minority 
                enrollments of at least 25 percent, to promote the 
                participation of such colleges, universities, and 
                institutions in activities under this subpart.
                    ``(B) To enable Historically Black Colleges and 
                Universities, and the institutions described in 
                subparagraph (A), to assist other colleges, 
                universities, institutions, and agencies in improving 
                educational and transitional results for children with 
                disabilities.
    ``(d) Priorities.--The Secretary, in making an award of a grant, 
contract, or cooperative agreement under this subpart, subpart 3, or 
subpart 4, may, without regard to the rulemaking procedures under 
section 553(a) of title 5, United States Code, limit competitions to, 
or otherwise give priority to--
            ``(1) projects that address 1 or more--
                    ``(A) age ranges;
                    ``(B) disabilities;
                    ``(C) school grades;
                    ``(D) types of educational placements or early 
                intervention environments;
                    ``(E) types of services;
                    ``(F) content areas, such as reading; or
                    ``(G) effective strategies for helping children 
                with disabilities learn appropriate behavior in the 
                school and other community based educational settings;
            ``(2) projects that address the needs of children based on 
        the severity or incidence of their disability;
            ``(3) projects that address the needs of--
                    ``(A) low achieving students;
                    ``(B) underserved populations;
                    ``(C) children from low income families;
                    ``(D) limited English proficient children;
                    ``(E) unserved and underserved areas;
                    ``(F) rural or urban areas;
                    ``(G) children whose behavior interferes with their 
                learning and socialization;
                    ``(H) children with reading difficulties;
                    ``(I) children in charter schools; or
                    ``(J) children who are gifted and talented;
                    ``(K) children with disabilities served by local 
                educational agencies that receive payments under title 
                VIII of the Elementary and Secondary Education Act of 
                1965;
                    ``(L) children with disabilities who are homeless 
                children or children with disabilities who are wards of 
                the State;
            ``(4) projects to reduce inappropriate identification of 
        children as children with disabilities, particularly among 
        minority children;
            ``(5) projects that are carried out in particular areas of 
        the country, to ensure broad geographic coverage;
            ``(6) projects that promote the development and use of 
        universally designed technologies, assistive technology 
        devices, and assistive technology services to maximize children 
        with disabilities' access to and participation in the general 
        education curriculum;
            ``(7) any activity that is authorized in this subpart or 
        subpart 3; and
            ``(8) projects that provide training in educational 
        advocacy to individuals with responsibility for the needs of 
        wards of the State, including foster parents, grandparents and 
        other relatives acting in the place of a natural or adoptive 
        parent, attorneys for children in foster care, guardians ad 
        litem, court appointed special advocates, judges, education 
        surrogates, and children's caseworkers.
    ``(e) Applicant and Recipient Responsibilities.--
            ``(1) Development and assessment of projects.--The 
        Secretary shall require that an applicant for, and a recipient 
        of, a grant, contract, or cooperative agreement for a project 
        under this subpart, subpart 3, or subpart 4--
                    ``(A) involve individuals with disabilities or 
                parents of individuals with disabilities ages birth 
                through 26 in planning, implementing, and evaluating 
                the project; and
                    ``(B) where appropriate, determine whether the 
                project has any potential for replication and adoption 
                by other entities.
            ``(2) Additional responsibilities.--The Secretary may 
        require a recipient of a grant, contract, or cooperative 
        agreement under this subpart, subpart 3, or subpart 4 to--
                    ``(A) share in the cost of the project;
                    ``(B) prepare any findings and products from the 
                project in formats that are useful for specific 
                audiences, including parents, administrators, teachers, 
                early intervention personnel, related services 
                personnel, and individuals with disabilities;
                    ``(C) disseminate such findings and products; and
                    ``(D) collaborate with other such recipients in 
                carrying out subparagraphs (B) and (C).
    ``(f) Application Management.--
            ``(1) Standing panel.--
                    ``(A) In general.--The Secretary shall establish 
                and use a standing panel of experts who are competent, 
                by virtue of their training, expertise, or experience, 
                to evaluate applications under this subpart (other than 
                applications for assistance under section 665), subpart 
                3, and subpart 4 that, individually, request more than 
                $75,000 per year in Federal financial assistance.
                    ``(B) Membership.--The standing panel shall 
                include, at a minimum--
                            ``(i) individuals who are representatives 
                        of institutions of higher education that plan, 
                        develop, and carry out high quality programs of 
                        personnel preparation;
                            ``(ii) individuals who design and carry out 
                        scientifically based research targeted to the 
                        improvement of special education programs and 
                        services;
                            ``(iii) individuals who have recognized 
                        experience and knowledge necessary to integrate 
                        and apply scientifically based research 
                        findings to improve educational and 
                        transitional results for children with 
                        disabilities;
                            ``(iv) individuals who administer programs 
                        at the State or local level in which children 
                        with disabilities participate;
                            ``(v) individuals who prepare parents of 
                        children with disabilities to participate in 
                        making decisions about the education of their 
                        children;
                            ``(vi) individuals who establish policies 
                        that affect the delivery of services to 
                        children with disabilities;
                            ``(vii) parents of children with 
                        disabilities ages birth through 26 who are 
                        benefiting, or have benefited, from coordinated 
                        research, personnel preparation, and technical 
                        assistance; and
                            ``(viii) individuals with disabilities.
                    ``(C) Term.--Unless approved by the Secretary due 
                to extenuating circumstances related to shortages of 
                experts in a particular area of expertise or for a 
                specific competition, no individual shall serve on the 
                standing panel for more than 3 consecutive years.
            ``(2) Peer review panels for particular competitions.--
                    ``(A) Composition.--The Secretary shall ensure that 
                each sub panel selected from the standing panel that 
                reviews applications under this subpart (other than 
                section 665), subpart 3, and subpart 4 includes--
                            ``(i) individuals with knowledge and 
                        expertise on the issues addressed by the 
                        activities authorized by the relevant subpart; 
                        and
                            ``(ii) to the extent practicable, parents 
                        of children with disabilities ages birth 
                        through 26, individuals with disabilities, and 
                        persons from diverse backgrounds.
                    ``(B) Federal employment limitation.--A majority of 
                the individuals on each sub panel that reviews an 
                application under this subpart (other than an 
                application under section 665), subpart 3, and subpart 
                4 shall be individuals who are not employees of the 
                Federal Government.
            ``(3) Use of discretionary funds for administrative 
        purposes.--
                    ``(A) Expenses and fees of non-federal panel 
                members.--The Secretary may use funds made available 
                under this subpart, subpart 3, and subpart 4 to pay the 
                expenses and fees of the panel members who are not 
                officers or employees of the Federal Government.
                    ``(B) Administrative support.--The Secretary may 
                use not more than 1 percent of the funds made available 
                to carry out this subpart, subpart 3, or subpart 4 to 
                pay non-Federal entities for administrative support 
                related to management of applications submitted under 
                this subpart.
            ``(4) Availability of certain products.--The Secretary 
        shall ensure that recipients of grants, cooperative agreements, 
        or contracts under this subpart, subpart 3, and subpart 4 make 
        available in formats that are accessible to individuals with 
        disabilities any products developed under such grants, 
        cooperative agreements, or contracts that the recipient is 
        making available to the public.
    ``(g) Program Evaluation.--The Secretary may use funds made 
available to carry out this subpart, subpart 3, and subpart 4 to 
evaluate activities carried out under this subpart.
    ``(h) Minimum Funding Required.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall ensure that, for each fiscal year, at least the following 
        amounts are provided under this subpart and subpart 3 to 
        address the following needs:
                    ``(A) $12,832,000 to address the educational, 
                related services, transitional, and early intervention 
                needs of children with deaf-blindness.
                    ``(B) $4,000,000 to address the postsecondary, 
                vocational, technical, continuing, and adult education 
                needs of individuals with deafness.
                    ``(C) $4,000,000 to address the educational, 
                related services, and transitional needs of children 
                with an emotional disturbance and those who are at risk 
                of developing an emotional disturbance.
            ``(2) Ratable reduction.--If the total amount appropriated 
        to carry out this subpart, subpart 3, and part E of the 
        Education Sciences Reform Act of 2002 for any fiscal year is 
        less than $130,000,000, the amounts listed in paragraph (1) 
        shall be ratably reduced.
    ``(i) Eligibility for Financial Assistance.--No State or local 
educational agency, or other public institution or agency, may receive 
a grant or enter into a contract or cooperative agreement under this 
subpart that relates exclusively to programs, projects, and activities 
pertaining to children aged 3 through 5, inclusive, unless the State is 
eligible to receive a grant under section 619(b).

``SEC. 662. RESEARCH COORDINATION TO IMPROVE RESULTS FOR CHILDREN WITH 
              DISABILITIES.

    ``The Secretary shall coordinate research carried out under this 
subpart with research carried out under part E of the Education 
Sciences Reform Act of 2002.

``SEC. 663. TECHNICAL ASSISTANCE, DEMONSTRATION PROJECTS, DISSEMINATION 
              OF INFORMATION, AND IMPLEMENTATION OF SCIENTIFICALLY 
              BASED RESEARCH.

    ``(a) In General.--From amounts made available under section 675, 
the Secretary, on a competitive basis, shall award grants to, or enter 
into contracts or cooperative agreements with, eligible entities to 
provide technical assistance, carry out model demonstration projects, 
disseminate useful information, and implement activities that are 
supported by scientifically based research.
    ``(b) Required Activities.--The Secretary shall support activities 
to improve services provided under this Act, including the practices of 
professionals and others involved in providing such services to 
children with disabilities, that promote academic achievement and 
functional performance to improve educational results and functional 
outcomes for children with disabilities through--
            ``(1) implementing effective strategies that are conducive 
        to learning and for addressing inappropriate behavior of 
        students with disabilities in schools, including strategies to 
        prevent children with emotional and behavioral problems from 
        developing emotional disturbances that require the provision of 
        special education and related services;
            ``(2) improving the alignment, compatibility, and 
        development of valid and reliable assessment methods, including 
        alternate assessment methods and evaluation methods, for 
        assessing adequately yearly progress as described in section 
        1111(b)(2) of the Elementary and Secondary Education Act of 
        1965;
            ``(3) providing information to both regular education 
        teachers and special education teachers to address the 
        different learning styles and disabilities of students;
            ``(4) disseminating information on innovative, effective, 
        and efficient curricula, materials (including those that are 
        universally designed), instructional approaches, and strategies 
        that--
                    ``(A) support effective transitions between 
                educational settings or from school to post-school 
                settings;
                    ``(B) support effective inclusion of students with 
                disabilities in general education settings, especially 
                students with low-incidence disabilities; and
                    ``(C) improve educational and transitional results 
                at all levels of the educational system in which the 
                activities are carried out and, in particular, that 
                improve the progress of children with disabilities, as 
                measured by assessments within the general education 
                curriculum involved; and
            ``(5) demonstrating and applying scientifically-based 
        findings to facilitate systematic changes related to the 
        provision of services to children with disabilities.
    ``(c) Authorized Activities.--Activities that may be carried out 
under this section include activities to improve services provided 
under this Act, including the practices of professionals and others 
involved in providing such services to children with disabilities, that 
promote increased academic achievement and enhanced functional outcomes 
for children with disabilities through--
            ``(1) supporting and promoting the coordination of early 
        intervention, education, and transitional services for children 
        with disabilities with services provided by health, 
        rehabilitation, and social service agencies;
            ``(2) promoting improved alignment and compatibility of 
        general and special education reforms concerned with curriculum 
        and instructional reform, and evaluating of such reforms;
            ``(3) enabling professionals, parents of children with 
        disabilities, and other persons, to learn about, and implement, 
        the findings of scientifically based research and effective 
        practices relating to the provision of services to children 
        with disabilities;
            ``(4) disseminating information relating to successful 
        approaches to overcoming systemic barriers to the effective and 
        efficient delivery of early intervention, educational, and 
        transitional services, to personnel who provide services to 
        children with disabilities;
            ``(5) assisting States and local educational agencies with 
        the process of planning systemic changes that will promote 
        improved early intervention, educational, and transitional 
        results for children with disabilities;
            ``(6) promoting change through a multi-State or regional 
        framework that benefits States, local educational agencies, and 
        other participants in partnerships that are in the process of 
        achieving systemic change;
            ``(7) focusing on the needs and issues that are specific to 
        a population of children with disabilities, such as providing 
        single-State and multi-State technical assistance and in-
        service training--
                    ``(A) to schools and agencies serving deaf-blind 
                children and their families;
                    ``(B) to programs and agencies serving other groups 
                of children with low-incidence disabilities and their 
                families;
                    ``(C) to address the postsecondary education needs 
                of individuals who are deaf or hard-of-hearing; and
                    ``(D) to schools and personnel providing special 
                education and related services for children with autism 
                spectrum disorders;
            ``(8) demonstrating models of personnel preparation to 
        ensure appropriate placements and services for all students 
        with disabilities and to reduce disproportionality in 
        eligibility, placement, and disciplinary actions for minority 
        and limited English proficient children: and
            ``(9) disseminating information on how to reduce racial and 
        ethnic disproportionalities.
    ``(d) Balance Among Disabilities and Age Ranges.--In carrying out 
this section, the Secretary shall ensure that there is an appropriate 
balance across all age ranges and disabilities.
    ``(e) Linking States to Information Sources.--In carrying out this 
section, the Secretary may support projects that link States to 
technical assistance resources, including special education and general 
education resources, and may make research and related products 
available through libraries, electronic networks, parent training 
projects, and other information sources.
    ``(f) Applications.--
            ``(1) In general.--An eligible entity that desires to 
        receive a grant, or to enter into a contract or cooperative 
        agreement, under this section shall submit an application to 
        the Secretary at such time, in such manner, and containing such 
        information as the Secretary may require.
            ``(2) Contents.--The Secretary may, as appropriate, require 
        eligible entities to demonstrate that the projects described in 
        their applications are supported by scientifically based 
        research that has been carried out in conjunction with the 
        standards for the conduct and evaluation of all research and 
        development established by the National Center for Education 
        Research under sections 133 and 134 of the Education Sciences 
        Reform Act of 2002.
            ``(3) Priority.--As appropriate, the Secretary shall give 
        priority to applications that propose to serve teachers and 
        school personnel directly in the school environment or that 
        strengthen State and local agency capacity to improve 
        instructional practices of personnel to improve educational 
        results for children with disabilities in the school 
        environment.

``SEC. 664. PERSONNEL DEVELOPMENT TO IMPROVE SERVICES AND RESULTS FOR 
              CHILDREN WITH DISABILITIES.

    ``(a) In General.--The Secretary, on a competitive basis, shall 
award grants to, or enter into contracts or cooperative agreements 
with, eligible entities for 1 or more of the following:
            ``(1) To help address the needs identified in the State 
        plan described in section 653(a)(2) for highly qualified 
        personnel, as defined in section 651(b), to work with infants, 
        toddlers, or children with disabilities, consistent with the 
        standards described in section 612(a)(14).
            ``(2) To ensure that those personnel have the necessary 
        skills and knowledge, derived from practices that have been 
        determined, through scientifically based research, to be 
        successful in serving those children.
            ``(3) To encourage increased focus on academics and core 
        content areas in special education personnel preparation 
        programs.
            ``(4) To ensure that regular education teachers have the 
        necessary skills and knowledge to provide instruction to 
        students with disabilities in the regular education classroom.
            ``(5) To ensure that all special education teachers are 
        highly qualified.
            ``(6) To ensure that preservice and in-service personnel 
        preparation programs include training in--
                    ``(A) the use of new technologies;
                    ``(B) the area of early intervention, educational, 
                and transition services;
                    ``(C) effectively involving parents; and
                    ``(D) positive behavioral supports.
            ``(7) To provide high-quality professional development for 
        principals, superintendents, and other administrators, 
        including training in--
                    ``(A) instructional leadership;
                    ``(B) behavioral supports in the school and 
                classroom;
                    ``(C) paperwork reduction;
                    ``(D) promoting improved collaboration between 
                special education and general education teachers;
                    ``(E) assessment and accountability;
                    ``(F) ensuring effective learning environments; and
                    ``(G) fostering positive relationships with 
                parents.
    ``(b) Personnel Development; Authorized Activities.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall support activities to prepare personnel, 
        including activities for the preparation of personnel who will 
        serve children with high-incidence and low-incidence 
        disabilities, consistent with the objectives described in 
        subsection (a).
            ``(2) Authorized activities.--Activities that may be 
        carried out under this subsection include the following:
                    ``(A) Supporting collaborative personnel 
                preparation activities undertaken by institutions of 
                higher education, local educational agencies, and other 
                local entities--
                            ``(i) to improve and reform their existing 
                        programs, to support effective existing 
                        programs, to support the development of new 
                        programs, and to prepare teachers, principals, 
                        administrators, and related services 
                        personnel--
                                    ``(I) to meet the diverse needs of 
                                children with disabilities for early 
                                intervention, educational, and 
                                transitional services; and
                                    ``(II) to work collaboratively in 
                                regular classroom settings; and
                            ``(ii) to incorporate best practices and 
                        scientifically based research about preparing 
                        personnel--
                                    ``(I) so the personnel will have 
                                the knowledge and skills to improve 
                                educational results for children with 
                                disabilities; and
                                    ``(II) to implement effective 
                                teaching strategies and interventions 
                                to prevent the misidentification, 
                                overidentification, or 
                                underidentification of children as 
                                having a disability, especially 
                                minority and limited English proficient 
                                children.
                    ``(B) Developing, evaluating, and disseminating 
                innovative models for the recruitment, induction, 
                retention, and assessment of highly qualified teachers 
                to reduce teachers shortages.
                    ``(C) Providing continuous personnel preparation, 
                training, and professional development designed to 
                provide support and ensure retention of teachers and 
                personnel who teach and provide related services to 
                children with disabilities.
                    ``(D) Developing and improving programs for 
                paraprofessionals to become special education teachers, 
                related services personnel, and early intervention 
                personnel, including interdisciplinary training to 
                enable the paraprofessionals to improve early 
                intervention, educational, and transitional results for 
                children with disabilities.
                    ``(E) Demonstrating models for the preparation of, 
                and interdisciplinary training of, early intervention, 
                special education, and general education personnel, to 
                enable the personnel to acquire the collaboration 
                skills necessary to work within teams and to improve 
                results for children with disabilities, particularly 
                within the general education curriculum.
                    ``(F) Promoting effective parental involvement 
                practices to enable the personnel to work with parents 
                and involve parents in the education of such parents' 
                children.
                    ``(G) Promoting the transferability, across State 
                and local jurisdictions, of licensure and certification 
                of teachers, principals, and administrators working 
                with such children.
                    ``(H) Developing and disseminating models that 
                prepare teachers with strategies, including positive 
                behavioral interventions, for addressing the conduct of 
                children with disabilities that impedes their learning 
                and that of others in the classroom.
                    ``(I) Developing and improving programs to enhance 
                the ability of early childhood providers, general 
                education teachers, principals, school administrators, 
                related services personnel, and school board members to 
                improve results for children with disabilities.
                    ``(J) Supporting institutions of higher education 
                with minority enrollments of at least 25 percent for 
                the purpose of preparing personnel to work with 
                children with disabilities.
                    ``(K) Preparing personnel to work in high need 
                elementary schools and secondary schools, including 
                urban schools, rural schools, and schools operated by 
                an entity described in section 7113(d)(1)(A)(ii) of the 
                Elementary and Secondary Education Act of 1965, and 
                schools that serve high numbers or percentages of 
                limited English proficient children.
                    ``(L) Developing, evaluating, and disseminating 
                innovative models for the recruitment, induction, 
                retention, and assessment of new, highly qualified 
                teachers, especially from groups that are 
                underrepresented in the teaching profession, including 
                individuals with disabilities.
                    ``(M) Developing and improving programs to train 
                special education teachers to develop an expertise in 
                autism spectrum disorders.
    ``(c) Low Incidence Disabilities; Authorized Activities.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall support activities, consistent with the 
        objectives described in subsection (a), that benefit children 
        with low incidence disabilities.
            ``(2) Authorized activities.--Activities that may be 
        carried out under this subsection include activities such as 
        the following:
                    ``(A) Preparing persons who--
                            ``(i) have prior training in educational 
                        and other related service fields; and
                            ``(ii) are studying to obtain degrees, 
                        certificates, or licensure that will enable the 
                        persons to assist children with low incidence 
                        disabilities to achieve the objectives set out 
                        in their individualized education programs 
                        described in section 614(d), or to assist 
                        infants and toddlers with low incidence 
                        disabilities to achieve the outcomes described 
                        in their individualized family service plans 
                        described in section 636.
                    ``(B) Providing personnel from various disciplines 
                with interdisciplinary training that will contribute to 
                improvement in early intervention, educational, and 
                transitional results for children with low incidence 
                disabilities.
                    ``(C) Preparing personnel in the innovative uses 
                and application of technology, including universally 
                designed technologies, assistive technology devices, 
                and assistive technology services--
                            ``(i) to enhance learning by children with 
                        low incidence disabilities through early 
                        intervention, educational, and transitional 
                        services; and
                            ``(ii) to improve communication with 
                        parents.
                    ``(D) Preparing personnel who provide services to 
                visually impaired or blind children to teach and use 
                Braille in the provision of services to such children.
                    ``(E) Preparing personnel to be qualified 
                educational interpreters, to assist children with low 
                incidence disabilities, particularly deaf and hard of 
                hearing children in school and school related 
                activities, and deaf and hard of hearing infants and 
                toddlers and preschool children in early intervention 
                and preschool programs.
                    ``(F) Preparing personnel who provide services to 
                children with significant cognitive disabilities and 
                children with multiple disabilities.
            ``(3) Definition.--As used in this section, the term `low 
        incidence disability' means--
                    ``(A) a visual or hearing impairment, or 
                simultaneous visual and hearing impairments;
                    ``(B) a significant cognitive impairment; or
                    ``(C) any impairment for which a small number of 
                personnel with highly specialized skills and knowledge 
                are needed in order for children with that impairment 
                to receive early intervention services or a free 
                appropriate public education.
            ``(4) Selection of recipients.--In selecting recipients 
        under this subsection, the Secretary may give preference to 
        eligible entities submitting applications that include 1 or 
        more of the following:
                    ``(A) A proposal to prepare personnel in more than 
                1 low incidence disability, such as deafness and 
                blindness.
                    ``(B) A demonstration of an effective collaboration 
                with an eligible entity and a local educational agency 
                that promotes recruitment and subsequent retention of 
                highly qualified personnel to serve children with 
                disabilities.
            ``(5) Preparation in use of braille.--The Secretary shall 
        ensure that all recipients of assistance under this subsection 
        who will use that assistance to prepare personnel to provide 
        services to visually impaired or blind children that can 
        appropriately be provided in Braille will prepare those 
        individuals to provide those services in Braille.
    ``(d) Leadership Preparation; Authorized Activities.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall support leadership preparation activities that 
        are consistent with the objectives described in subsection (a).
            ``(2) Authorized activities.--Activities that may be 
        carried out under this subsection include activities such as 
        the following:
                    ``(A) Preparing personnel at the graduate, 
                doctoral, and postdoctoral levels of training to 
                administer, enhance, or provide services to improve 
                results for children with disabilities.
                    ``(B) Providing interdisciplinary training for 
                various types of leadership personnel, including 
                teacher preparation faculty, administrators, 
                researchers, supervisors, principals, related services 
                personnel, and other persons whose work affects early 
                intervention, educational, and transitional services 
                for children with disabilities.
    ``(e) Enhanced Support and Training for Beginning Special 
Educators; Authorized Activities.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall support personnel preparation activities that 
        are consistent with the objectives described in subsection (a).
            ``(2) Authorized activities.--Activities that may be 
        carried out under this subsection include--
                    ``(A) enhancing and restructuring an existing 
                program or developing a preservice teacher education 
                program, to prepare special education teachers, at 
                colleges or departments of education within the 
                institution of higher education, by incorporating an 
                additional 5th year clinical learning opportunity, 
                field experience, or supervised practicum into a 
                program of preparation and coursework for special 
                education teachers; or
                    ``(B) Creating or supporting professional 
                development schools that provide--
                            ``(i) high quality mentoring and induction 
                        opportunities with ongoing support for 
                        beginning special education teachers; or
                            ``(ii) inservice professional development 
                        to veteran special education teachers through 
                        the ongoing exchange of information and 
                        instructional strategies.
            ``(3) Eligible partnerships.--Eligible recipients of 
        assistance under this subsection are partnerships--
                    ``(A) that shall consist of--
                            ``(i) 1 or more institutions of higher 
                        education with special education personnel 
                        preparation programs; and
                            ``(ii) 1 or more local educational 
                        agencies; and
                            ``(iii) in the case of activities assisted 
                        under paragraph (2)(B), an elementary school or 
                        secondary school; and
                    ``(B) that may include other entities eligible for 
                assistance under this part, such as a State educational 
                agency.
            ``(4) Priority.--In awarding grants or entering into 
        contracts or cooperative agreements under this subsection, the 
        Secretary shall give priority to partnerships that include 
        local educational agencies that serve--
                    ``(A) high numbers or percentages of low-income 
                students; or
                    ``(B) schools that have failed to make adequate 
                yearly progress toward enabling children with 
                disabilities to meet academic achievement standards.
    ``(f) Training To Support General Educators; Authorized 
Activities.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall support personnel preparation activities that 
        are consistent with the objectives described in subsection (a).
            ``(2) Authorized activities.--Activities that may be 
        carried out under this subsection include--
                    ``(A) high quality professional development for 
                general educators that develops the knowledge and 
                skills, and enhances the ability, of general educators 
                to--
                            ``(i) use classroom-based techniques to 
                        identify students who may be eligible for 
                        special education services, and deliver 
                        instruction in a way that meets the 
                        individualized needs of children with 
                        disabilities through appropriate supports, 
                        accommodations, and curriculum modifications;
                            ``(ii) use classroom-based techniques, such 
                        as scientifically based reading instruction;
                            ``(iii) work collaboratively with special 
                        education teachers and related services 
                        personnel;
                            ``(iv) implement strategies, such as 
                        positive behavioral interventions--
                                    ``(I) to address the behavior of 
                                children with disabilities that impedes 
                                the learning of such children and 
                                others; or
                                    ``(II) to prevent children from 
                                being misidentified as children with 
                                disabilities;
                            ``(v) prepare children with disabilities to 
                        participate in statewide assessments (with or 
                        without accommodations) and alternate 
                        assessments, as appropriate;
                            ``(vi) develop effective practices for 
                        ensuring that all children with disabilities 
                        are a part of all accountability systems under 
                        the Elementary and Secondary Education Act of 
                        1965;
                            ``(vii) work with and involve parents of 
                        children with disabilities in their child's 
                        education;
                            ``(viii) understand how to effectively 
                        construct IEPs, participate in IEP meetings, 
                        and implement IEPs; and
                            ``(ix) in the case of principals and 
                        superintendents, be instructional leaders and 
                        promote improved collaboration between general 
                        educators, special education teachers, and 
                        related services personnel; and
                    ``(B) release and planning time for the activities 
                described in this subsection.
            ``(3) Eligible partnerships.--Eligible recipients of 
        assistance under this subsection are partnerships--
                    ``(A) that consist of--
                            ``(i) 1 or more institutions of higher 
                        education with special education personnel 
                        preparation programs; and
                            ``(ii) 1 or more local educational 
                        agencies; and
                    ``(B) that may include other entities eligible for 
                assistance under this part, such as a State educational 
                agency.
    ``(g) Applications.--
            ``(1) In general.--Any eligible entity that desires to 
        receive a grant, or enter into a contract or cooperative 
        agreement, under this section shall submit an application to 
        the Secretary at such time, in such manner, and containing such 
        information as the Secretary may require.
            ``(2) Identified state needs.--
                    ``(A) Requirement to address identified needs.--Any 
                application under subsection (b), (c), (d), (e), or (f) 
                shall include information demonstrating to the 
                satisfaction of the Secretary that the activities 
                described in the application will address needs 
                identified by the State or States the applicant 
                proposes to serve, consistent with the needs identified 
                in the State plan described in section 653(a)(2).
                    ``(B) Cooperation with state educational 
                agencies.--Any applicant that is not a local 
                educational agency or a State educational agency shall 
                include in the application information demonstrating to 
                the satisfaction of the Secretary that the applicant 
                and 1 or more State educational agencies or local 
                educational agencies have engaged in a cooperative 
                effort to carry out and monitor the project to be 
                assisted.
            ``(3) Acceptance by states of personnel preparation 
        requirements.--The Secretary may require applicants to provide 
        assurances from 1 or more States that such States intend to 
        accept successful completion of the proposed personnel 
        preparation program as meeting State personnel standards for 
        serving children with disabilities or serving infants and 
        toddlers with disabilities.
    ``(h) Selection of Recipients.--
            ``(1) Impact of project.--In selecting award recipients 
        under this section, the Secretary shall consider the impact of 
        the proposed project described in the application in meeting 
        the need for personnel identified by the States.
            ``(2) Requirement for applicants to meet state and 
        professional standards.--The Secretary shall make grants and 
        enter into contracts and cooperative agreements under this 
        section only to eligible applicants that meet State and 
        professionally recognized standards for the preparation of 
        special education and related services personnel, if the 
        purpose of the project is to assist personnel in obtaining 
        degrees.
            ``(3) Preferences.--In selecting recipients under this 
        section, the Secretary may give preference to institutions of 
        higher education that are--
                    ``(A) educating regular education personnel to meet 
                the needs of children with disabilities in integrated 
                settings;
                    ``(B) educating special education personnel to work 
                in collaboration with regular educators in integrated 
                settings; and
                    ``(C) successfully recruiting and preparing 
                individuals with disabilities and individuals from 
                groups that are underrepresented in the profession for 
                which the institution of higher education is preparing 
                individuals.
    ``(i) Service Obligation.--Each application for funds under 
subsections (b), (c), (d), and (e) shall include an assurance that the 
applicant will ensure that individuals who receive assistance under the 
proposed project will subsequently provide special education and 
related services to children with disabilities for a period of 1 year 
for every year for which assistance was received, or repay all or part 
of the cost of that assistance, in accordance with regulations issued 
by the Secretary.
    ``(j) Scholarships.--The Secretary may include funds for 
scholarships, with necessary stipends and allowances, in awards under 
subsections (b), (c), (d), and (e).
    ``(k) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 2004 through 2009.

``SEC. 665. STUDIES AND EVALUATIONS.

    ``(a) Studies and Evaluations.--
            ``(1) Delegation.--The Secretary shall delegate to the 
        Director of the Institute for Education Sciences responsibility 
        to carry out this section, other than subsections (d) and (f).
            ``(2) Assessment.--The Secretary shall, directly or through 
        grants, contracts, or cooperative agreements awarded on a 
        competitive basis, assess the progress in the implementation of 
        this Act, including the effectiveness of State and local 
        efforts to provide--
                    ``(A) a free appropriate public education to 
                children with disabilities; and
                    ``(B) early intervention services to infants and 
                toddlers with disabilities, and infants and toddlers 
                who would be at risk of having substantial 
                developmental delays if early intervention services 
                were not provided to them.
    ``(b) National Assessment.--
            ``(1) In general.--The Secretary shall carry out a national 
        assessment of activities carried out with Federal funds under 
        this Act in order--
                    ``(A) to determine the effectiveness of this Act in 
                achieving its purposes;
                    ``(B) to provide timely information to the 
                President, Congress, the States, local educational 
                agencies, and the public on how to implement this Act 
                more effectively; and
                    ``(C) to provide the President and Congress with 
                information that will be useful in developing 
                legislation to achieve the purposes of this Act more 
                effectively.
            ``(2) Consultation.--The Secretary shall plan, review, and 
        conduct the national assessment under this subsection in 
        consultation with researchers, State practitioners, local 
        practitioners, parents of children with disabilities, and other 
        appropriate individuals.
            ``(3) Scope of assessment.--The national assessment shall 
        assess the--
                    ``(A) implementation of programs assisted under 
                this Act and the impact of those programs on addressing 
                the developmental, educational, and transitional needs 
                of, and improving the academic achievement and 
                functional outcomes of, children with disabilities to 
                enable the children to reach challenging developmental 
                goals and challenging State academic content standards 
                based on State academic assessments, including 
                alternate assessments;
                    ``(B) types of programs and services that have 
                demonstrated the greatest likelihood of helping 
                students reach the challenging State academic content 
                standards and developmental goals;
                    ``(C) implementation of the personnel preparation 
                and professional development activities assisted under 
                this Act and the impact on instruction, student 
                academic achievement, and teacher qualifications to 
                enhance the ability of special education teachers and 
                regular education teachers to improve results for 
                children with disabilities; and
                    ``(D) effectiveness of schools, local educational 
                agencies, States, and other recipients of assistance 
                under this Act, in achieving the purposes of this Act 
                in--
                            ``(i) improving the academic achievement of 
                        children with disabilities and their 
                        performance on regular statewide assessments, 
                        and the performance of children with 
                        disabilities on alternate assessments;
                            ``(ii) improving the participation rate of 
                        children with disabilities in the general 
                        education curriculum;
                            ``(iii) improving the transitions of 
                        children with disabilities at natural 
                        transition points;
                            ``(iv) placing and serving children with 
                        disabilities, including minority children, in 
                        the least restrictive environment appropriate;
                            ``(v) preventing children with 
                        disabilities, especially children with 
                        emotional disturbances and specific learning 
                        disabilities, from dropping out of school;
                            ``(vi) addressing the reading and literacy 
                        needs of children with disabilities;
                            ``(vii) coordinating services provided 
                        under this Act with each other, with other 
                        educational and pupil services (including 
                        preschool services), and with health and social 
                        services funded from other sources;
                            ``(viii) improving the participation of 
                        parents of children with disabilities in the 
                        education of their children;
                            ``(ix) resolving disagreements between 
                        education personnel and parents through 
                        alternative dispute resolution activities 
                        including mediation; and
                            ``(x) reducing the misidentification of 
                        children, especially minority and limited 
                        English proficient children.
            ``(4) Interim and final reports.--The Secretary shall 
        submit to the President and Congress--
                    ``(A) an interim report that summarizes the 
                preliminary findings of the national assessment not 
                later than 3 years after the date of enactment of the 
                Individuals with Disabilities Education Improvement Act 
                of 2004; and
                    ``(B) a final report of the findings of the 
                assessment not later than 5 years after the date of 
                enactment of the Individuals with Disabilities 
                Education Improvement Act of 2004.
    ``(c) Study on Ensuring Accountability for Students Who Are Held to 
Alternative Achivement Standards.--The Secretary shall carry out a 
national study or studies to examine--
            ``(1) the criteria that States use to determine--
                    ``(A) eligibility for alternate assessments; and
                    ``(B) the number and type of children who take 
                those assessments and are held accountable to alternate 
                achievement standards;
            ``(2) the validity and reliability of alternate assessment 
        instruments and procedures;
            ``(3) the alignment of alternate assessments and 
        alternative achievement standards to State academic content 
        standards in reading, mathematics, and science; and
            ``(4) the use and effectiveness of alternate assessments in 
        appropriately measuring student progress and outcomes specific 
        to individualized instructional need.
    ``(d) Annual Report.--The Secretary shall provide an annual report 
to Congress that--
            ``(1) summarizes the research conducted under section 662;
            ``(2) analyzes and summarizes the data reported by the 
        States and the Secretary of the Interior under section 618;
            ``(3) summarizes the studies and evaluations conducted 
        under this section and the timeline for their completion;
            ``(4) describes the extent and progress of the national 
        assessment; and
            ``(5) describes the findings and determinations resulting 
        from reviews of State implementation of this Act.
    ``(e) Authorized Activities.--In carrying out this section, the 
Secretary may support objective studies, evaluations, and assessments, 
including studies that--
            ``(1) analyze measurable impact, outcomes, and results 
        achieved by State educational agencies and local educational 
        agencies through their activities to reform policies, 
        procedures, and practices designed to improve educational and 
        transitional services and results for children with 
        disabilities;
            ``(2) analyze State and local needs for professional 
        development, parent training, and other appropriate activities 
        that can reduce the need for disciplinary actions involving 
        children with disabilities;
            ``(3) assess educational and transitional services and 
        results for children with disabilities from minority 
        backgrounds, including--
                    ``(A) data on--
                            ``(i) the number of minority children who 
                        are referred for special education evaluation;
                            ``(ii) the number of minority children who 
                        are receiving special education and related 
                        services and their educational or other service 
                        placement;
                            ``(iii) the number of minority children who 
                        graduated from secondary programs with a 
                        regular diploma in the standard number of 
                        years; and
                            ``(iv) the number of minority children who 
                        drop out of the educational system; and
                    ``(B) the performance of children with disabilities 
                from minority backgrounds on State assessments and 
                other performance indicators established for all 
                students;
            ``(4) measure educational and transitional services and 
        results of children with disabilities served under this Act, 
        including longitudinal studies that--
                    ``(A) examine educational and transitional services 
                and results for children with disabilities who are 3 
                through 17 years of age and are receiving special 
                education and related services under this Act, using a 
                national, representative sample of distinct age cohorts 
                and disability categories; and
                    ``(B) examine educational results, transition 
                services, postsecondary placement, and employment 
                status of individuals with disabilities, 18 through 21 
                years of age, who are receiving or have received 
                special education and related services under this Act; 
                and
            ``(5) identify and report on the placement of children with 
        disabilities by disability category.
    ``(f) Study.--The Secretary shall study, and report to Congress 
regarding, the extent to which States adopt policies described in 
section 635(b)(1) and on the effects of those policies.
    ``(g) Reservation for Studies and Evaluations.--
            ``(1) In general.--Except as provided in paragraph (2) and 
        notwithstanding any other provision of this Act, the Secretary 
        may reserve not more than \1/2\ of 1 percent of the amount 
        appropriated under parts B and C for each fiscal year to carry 
        out this section, of which not more than $3,000,000 shall be 
        available to carry out subsection (c).
            ``(2) Maximum amount.--The maximum amount the Secretary may 
        reserve under paragraph (1) for any fiscal year is $40,000,000, 
        increased by the cumulative rate of inflation since fiscal year 
        2003.

``Subpart 3--Supports To Improve Results for Children With Disabilities

``SEC. 670. PURPOSES.

    ``The purposes of this subpart are to ensure that--
            ``(1) children with disabilities and their parents receive 
        training and information on their rights, responsibilities, and 
        protections under this Act, in order to develop the skills 
        necessary to cooperatively and effectively participate in 
        planning and decision making relating to early intervention, 
        educational, and transitional services;
            ``(2) parents, teachers, administrators, early intervention 
        personnel, related services personnel, and transition personnel 
        receive coordinated and accessible technical assistance and 
        information to assist them in improving early intervention, 
        educational, and transitional services and results for children 
        with disabilities and their families; and
            ``(3) appropriate technology and media are researched, 
        developed, and demonstrated, to improve and implement early 
        intervention, educational, and transitional services and 
        results for children with disabilities and their families.

``SEC. 671. PARENT TRAINING AND INFORMATION CENTERS.

    ``(a) Program Authorized.--The Secretary may award 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 section.
    ``(b) Required Activities.--Each parent training and information 
center that receives assistance under this section shall--
            ``(1) provide training and information that meets the needs 
        of parents of children with disabilities living in the area 
        served by the center, particularly underserved parents and 
        parents of children who may be inappropriately identified, to 
        enable their children with disabilities to--
                    ``(A) meet developmental and functional goals, and 
                challenging academic achievement goals that have been 
                established for all children; and
                    ``(B) be prepared to lead productive independent 
                adult lives, to the maximum extent possible;
            ``(2) serve the parents of infants, toddlers, and children 
        with the full range of disabilities described in section 
        602(3);
            ``(3) assist parents to--
                    ``(A) better understand the nature of their 
                children's disabilities and their educational, 
                developmental, and transitional needs;
                    ``(B) communicate effectively and work 
                collaboratively with personnel responsible for 
                providing special education, early intervention 
                services, transition services, and related services;
                    ``(C) participate in decisionmaking processes and 
                the development of individualized education programs 
                under part B and individualized family service plans 
                under part C;
                    ``(D) obtain appropriate information about the 
                range, type, and quality of options, programs, 
                services, technologies, and research based practices 
                and interventions, and resources available to assist 
                children with disabilities and their families in school 
                and at home;
                    ``(E) understand the provisions of this Act for the 
                education of, and the provision of early intervention 
                services to, children with disabilities; and
                    ``(F) participate in school reform activities;
            ``(4) in States where the State elects to contract with the 
        parent training and information center, contract with State 
        educational agencies to provide, consistent with subparagraphs 
        (B) and (D) of section 615(e)(2), individuals who meet with 
        parents to explain the mediation process to the parents;
            ``(5) assist parents in resolving disputes in the most 
        expeditious and effective way possible, including encouraging 
        the use, and explaining the benefits, of alternative methods of 
        dispute resolution, such as the mediation process described in 
        section 615(e);
            ``(6) assist parents and students with disabilities to 
        understand their rights and responsibilities under this Act, 
        including those under section 615(m) on the student's reaching 
        the age of majority;
            ``(7) assist parents to understand the availability of, and 
        how to effectively use, procedural safeguards under this Act;
            ``(8) assist parents in understanding, preparing for, and 
        participating in, the process described in section 
        615(f)(1)(B);
            ``(9) establish cooperative partnerships with community 
        parent resource centers funded under section 672;
            ``(10) network with appropriate clearinghouses, including 
        organizations conducting national dissemination activities 
        under section 663, and with other national, State, and local 
        organizations and agencies, such as protection and advocacy 
        agencies, that serve parents and families of children with the 
        full range of disabilities described in section 602(3); and
            ``(11) annually report to the Secretary on--
                    ``(A) the number and demographics of parents to 
                whom the center provided information and training in 
                the most recently concluded fiscal year;
                    ``(B) the effectiveness of strategies used to reach 
                and serve parents, including underserved parents of 
                children with disabilities; and
                    ``(C) the number of parents served who have 
                resolved disputes through alternative methods of 
                dispute resolution.
    ``(c) Optional Activities.--A parent training and information 
center that receives assistance under this section may provide 
information to teachers and other professionals to assist the teachers 
and professionals in improving results for children with disabilities.
    ``(d) Application Requirements.--Each application for assistance 
under this section shall identify with specificity the special efforts 
that the parent organization will undertake--
            ``(1) to ensure that the needs for training and information 
        of underserved parents of children with disabilities in the 
        area to be served are effectively met; and
            ``(2) to work with community based organizations.
    ``(e) Distribution of Funds.--
            ``(1) In general.--The Secretary shall--
                    ``(A) make at least 1 award to a parent 
                organization in each State for a parent training and 
                information center which is designated as the statewide 
                parent training and information center; or
                    ``(B) in the case of a large State, make awards to 
                multiple parent training and information centers, but 
                only if the centers demonstrate that coordinated 
                services and supports will occur among the multiple 
                centers.
            ``(2) 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.
    ``(f) Quarterly Review.--
            ``(1) Meetings.--The board of directors of each parent 
        organization that receives an award under this section shall 
        meet at least once in each calendar quarter to review the 
        activities for which the award was made.
            ``(2) Continuation award.--When an organization requests a 
        continuation award under this section, the board of directors 
        shall submit to the Secretary a written review of the parent 
        training and information program conducted by the organization 
        during the preceding fiscal year.
    ``(g) Definition of Parent Organization.--As used in this section, 
the term `parent organization' means a private nonprofit organization 
(other than an institution of higher education) that--
            ``(1) has a board of directors--
                    ``(A) the majority of whom are parents of children 
                with disabilities ages birth through 26;
                    ``(B) that includes--
                            ``(i) individuals working in the fields of 
                        special education, related services, and early 
                        intervention; and
                            ``(ii) individuals with disabilities;
                    ``(C) the parent and professional members of which 
                are broadly representative of the population to be 
                served; and
            ``(2) has as its mission serving families of children and 
        youth with disabilities who--
                    ``(A) are ages birth through 26; and
                    ``(B) have the full range of disabilities described 
                in section 602(3).

``SEC. 672. COMMUNITY PARENT RESOURCE CENTERS.

    ``(a) In General.--The Secretary may award grants to, and enter 
into contracts and cooperative agreements with, local parent 
organizations to support parent training and information centers that 
will help ensure that underserved parents of children with 
disabilities, including low income parents, parents of children with 
limited English proficiency, and parents with disabilities, have the 
training and information the parents need to enable the parents to 
participate effectively in helping their children with disabilities--
            ``(1) to meet developmental and functional goals, and 
        challenging academic achievement goals that have been 
        established for all children; and
            ``(2) to be prepared to lead productive independent adult 
        lives, to the maximum extent possible.
    ``(b) Required Activities.--Each community parent resource center 
assisted under this section shall--
            ``(1) provide training and information that meets the 
        training and information needs of parents of children with 
        disabilities proposed to be served by the grant, contract, or 
        cooperative agreement;
            ``(2) carry out the activities required of parent training 
        and information centers under paragraphs (2) through (9) of 
        section 671(b);
            ``(3) establish cooperative partnerships with the parent 
        training and information centers funded under section 671; and
            ``(4) be designed to meet the specific needs of families 
        who experience significant isolation from available sources of 
        information and support.
    ``(c) Definition.--As used in this section, the term `local parent 
organization' means a parent organization, as defined in section 
671(g), that--
            ``(1) has a board of directors the majority of whom are 
        parents of children with disabilities ages birth through 26 
        from the community to be served; and
            ``(2) has as its mission serving parents of children with 
        disabilities who--
                    ``(A) are ages birth through 26; and
                    ``(B) have the full range of disabilities described 
                in section 602(3).

``SEC. 673. TECHNICAL ASSISTANCE FOR PARENT TRAINING AND INFORMATION 
              CENTERS.

    ``(a) In General.--The Secretary may make an award to 1 parent 
organization (as defined in section 671(g)) that receives assistance 
under section 671 to enable the parent organization to provide 
technical assistance for developing, assisting, and coordinating parent 
training and information programs carried out by parent training and 
information centers receiving assistance under sections 671 and 672.
    ``(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 national coordination of parent training 
        efforts, which includes encouraging collaborative efforts among 
        award recipients under sections 671 and 672;
            ``(2) dissemination of information, scientifically based 
        research, and research based practices and interventions;
            ``(3) promotion of the use of technology, including 
        universally designed technologies, assistive technology 
        devices, and assistive technology services;
            ``(4) reaching underserved populations;
            ``(5) including children with disabilities in general 
        education programs;
            ``(6) facilitation of transitions from--
                    ``(A) early intervention services to preschool;
                    ``(B) preschool to elementary school;
                    ``(C) elementary school to secondary school; and
                    ``(D) secondary school to postsecondary 
                environments; and
            ``(7) promotion of alternative methods of dispute 
        resolution, including mediation.
    ``(c) Regional Parent Centers.--The recipient of the award 
described in section 673(a) shall establish no fewer than 4 regional 
centers from the parent training and information centers and community 
parent resource centers receiving assistance under sections 671 and 672 
for the purpose of carrying out the authorized activities described in 
subsection (b). These regional centers shall be selected on the basis 
of the center's--
            ``(1) willingness to be a regional parent center;
            ``(2) demonstrated expertise in the delivery of required 
        parent training and information center activities described in 
        section 671(b);
            ``(3) demonstrated capacity to deliver the authorized 
        activities described in subsection (b);
            ``(4) history of collaboration with other parent training 
        and information centers, community parent resource centers, 
        regional resource centers, clearinghouses, and other projects; 
        and
            ``(5) geographic location.
    ``(d) Collaboration With the Resource Centers.--The recipient of 
the award described in subsection (a), in conjunction with the regional 
parent centers described in subsection (c), shall develop collaborative 
agreements with the geographically appropriate Regional Resource Center 
to further parent and professional collaboration.

``SEC. 674. TECHNOLOGY DEVELOPMENT, DEMONSTRATION, AND UTILIZATION; AND 
              MEDIA SERVICES.

    ``(a) In General.--The Secretary, on a competitive basis, shall 
award grants to, and enter into contracts and cooperative agreements 
with, eligible entities to support activities described in subsections 
(b) and (c).
    ``(b) Technology Development, Demonstration, and Use.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall support activities to promote the development, 
        demonstration, and use of technology.
            ``(2) Authorized activities.--The following activities may 
        be carried out under this subsection:
                    ``(A) Conducting research on and promoting the 
                demonstration and use of innovative, emerging, and 
                universally designed technologies for children with 
                disabilities, by improving the transfer of technology 
                from research and development to practice.
                    ``(B) Supporting research, development, and 
                dissemination of technology with universal design 
                features, so that the technology is accessible to the 
                broadest range of individuals with disabilities without 
                further modification or adaptation.
                    ``(C) Demonstrating the use of systems to provide 
                parents and teachers with information and training 
                concerning early diagnosis of, intervention for, and 
                effective teaching strategies for, young children with 
                reading disabilities.
                    ``(D) Supporting the use of Internet-based 
                communications for students with cognitive disabilities 
                in order to maximize their academic and functional 
                skills.
    ``(c) Educational Media Services; Optional Activities.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall support--
                    ``(A) educational media activities that are 
                designed to be of educational value in the classroom 
                setting to children with disabilities;
                    ``(B) providing video description, open captioning, 
                or closed captioning, that is appropriate for use in 
                the classroom setting, of--
                            ``(i) television programs;
                            ``(ii) videos;
                            ``(iii) other materials, including programs 
                        and materials associated with new and emerging 
                        technologies, such as CDs, DVDs, video 
                        streaming, and other forms of multimedia; or
                            ``(iv) news (but only until September 30, 
                        2006);
                    ``(C) distributing materials described in 
                subparagraphs (A) and (B) through such mechanisms as a 
                loan service; and
                    ``(D) providing free educational materials, 
                including textbooks, in accessible media for visually 
                impaired and print disabled students in elementary 
                schools and secondary schools.
            ``(2) Limitation.--The video description, open captioning, 
        or closed captioning described in paragraph (1)(B) shall only 
        be provided when the description or captioning has not been 
        previously provided by the producer or distributor, or has not 
        been fully funded by other sources.
    ``(d) Applications.--Any eligible entity that wishes to receive a 
grant, or enter into a contract or cooperative agreement, under this 
section shall submit an application to the Secretary at such time, in 
such manner, and containing such information as the Secretary may 
require.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 2004 through 2009.

``SEC. 675. ACCESSIBILITY OF INSTRUCTIONAL MATERIALS.

    ``(a) Instructional Materials Accessibility Standard.--
            ``(1) Accessibility standard.--Not later than 180 days 
        after the date of enactment of the Individuals with 
        Disabilities Education Improvement Act of 2004, the Secretary 
        shall, by rulemaking, promulgate an Instructional Materials 
        Accessibility Standard which shall constitute the technical 
        standards to be used by publishers for the preparation of 
        electronic files for States under section 612(a)(22).
            ``(2) Relationship to other laws.--For purposes of this 
        section:
                    ``(A) Authorized entity.--Notwithstanding the 
                provisions of section 106 of title 17, United States 
                Code, it is not an infringement of copyright for an 
                authorized entity to reproduce or to distribute copies 
                of the electronic files described in section 
                612(a)(22)(B), containing the contents of the print 
                instructional materials using the Instructional 
                Materials Accessibility Standard, if such copies are 
                used solely for reproduction or distribution of the 
                contents of such print instructional materials in 
                specialized formats designed exclusively for use by the 
                blind or other persons with print disabilities.
                    ``(B) Publisher.--Notwithstanding the provisions of 
                section of 106 of title 17, United States Code, it is 
                not an infringement of copyright for a publisher to 
                create and distribute copies of the electronic files 
                described in section 612(a)(22)(B), containing the 
                contents of the print instructional materials using the 
                Instructional Material Accessibility Standard, if such 
                copies are used solely for reproduction or distribution 
                of the contents of such print instructional materials 
                in specialized formats designed exclusively for use by 
                the blind or other persons with print disabilities.
                    ``(C) Copies.--Copies of the electronic files 
                containing the contents of the print instructional 
                materials using the Instructional Materials 
                Accessibility Standard shall be made in compliance with 
                the provisions of section 121(b) of title 17, United 
                States Code, regarding the reproduction and 
                distribution of copyrighted print instructional 
                materials in specialized formats.
            ``(3) Definitions.--In this section:
                    ``(A) Instructional materials accessibility 
                standard.--The term `Instructional Materials 
                Accessibility Standard' means the technical standards 
                described in paragraph (2), to be used in the 
                preparation of electronic files suitable and used 
                solely for efficient conversion into specialized 
                formats.
                    ``(B) Blind or other persons with print 
                disabilities.--The term `blind or other persons with 
                print disabilities' means children served under this 
                Act and who may qualify in accordance with the Act 
                entitled ``An Act to provide books for the adult 
                blind'', approved March 3, 1931 (2 U.S.C. 135a; 46 
                Stat. 1487) to receive books and other publications 
                produced in specialized formats.
                    ``(C) Specialized formats.--The term `specialized 
                formats' has the meaning given the term in section 
                121(c)(3) of title 17, United States Code, and for the 
                purposes of this section, includes synthesized speech, 
                digital audio, and large print.
                    ``(D) Print instructional materials.--The term 
                `print instructional materials' means printed textbooks 
                and related printed core materials that are written and 
                published primarily for use in elementary school and 
                secondary school instruction and are required by a 
                State educational agency or local educational agency 
                for use by pupils in the classroom.
                    ``(E) Authorized entity.--The term `authorized 
                entity' has the meaning given the term in section 
                121(c)(1) of title 17, United States Code.
            ``(4) Applicability.--This section shall apply to print 
        instructional materials published and copyrighted after the 
        date on which the final rule establishing the Instructional 
        Materials Accessibility Standard is published in the Federal 
        Register.
    ``(b) National Instructional Materials Access Center.--
            ``(1) Establishment.--Not later than 2 years after the date 
        of enactment of the Individuals with Disabilities Education 
        Improvement Act of 2004, the Secretary shall establish a 
        center, to be known as the National Instructional Materials 
        Access Center, which shall coordinate the acquisition and 
        distribution of print instructional materials prepared in the 
        Instructional Materials Accessibility Standard described in 
        subsection (a)(2).
            ``(2) Responsibilities.--The duties of the National 
        Instructional Materials Access Center are the following:
                    ``(A) To receive and maintain a catalog of print 
                instructional materials made available under section 
                612(a)(22) and section 613(a)(6).
                    ``(B) To provide authorized entities with access to 
                such print instructional materials, free of charge, in 
                accordance with such terms and procedures as the 
                National Instructional Materials Access Center may 
                prescribe.
                    ``(C) To develop, adopt, and publish procedures to 
                protect against copyright infringement and otherwise to 
                administratively assure compliance with title 17, 
                United States Code, with respect to the print 
                instructional materials provided under section 
                612(a)(22) and section 613(a)(6).
            ``(3) Contract authorized.--To assist in carrying out 
        paragraph (1), the Secretary shall award, on a competitive 
        basis, a contract renewable on a biennial basis with a 
        nonprofit organization, or with a consortium of such 
        organizations, determined by the Secretary to be best qualified 
        to carry out the responsibilities described in paragraph (2). 
        The contractor shall report directly to the Assistant Secretary 
        for Special Education and Rehabilitative Services.
            ``(4) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection such 
        sums as may be necessary.

``SEC. 676. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out sections 
671, 672, 673, and 663 such sums as may be necessary for each of the 
fiscal years 2004 through 2009.

   ``Subpart 4--Interim Alternative Educational Settings, Behavioral 
                Supports, and Whole School Interventions

``SEC. 681. PURPOSE.

    ``The purpose of this subpart is to authorize resources to foster a 
safe learning environment that supports academic achievement for all 
students by improving the quality of interim alternative educational 
settings, providing more behavioral supports in schools, and supporting 
whole school interventions.

``SEC. 682. DEFINITION OF ELIGIBLE ENTITY.

    ``In this subpart, the term `eligible entity' means--
            ``(1) a local educational agency; or
            ``(2) a consortium consisting of a local educational agency 
        and 1 or more of the following entities:
                    ``(A) another local educational agency;
                    ``(B) a community-based organization with a 
                demonstrated record of effectiveness in helping 
                children with disabilities who have behavioral 
                challenges succeed;
                    ``(C) an institution of higher education;
                    ``(D) a mental health provider; or
                    ``(E) an educational service agency.

``SEC. 683. PROGRAM AUTHORIZED.

    ``The Secretary is authorized to award grants, on a competitive 
basis, to eligible entities to enable the eligible entities--
            ``(1) to establish or expand behavioral supports and whole 
        school behavioral interventions by providing for effective, 
        research-based practices, including--
                    ``(A) comprehensive, early screening efforts for 
                students at risk for emotional and behavioral 
                difficulties;
                    ``(B) training for school staff on early 
                identification, prereferral, and referral procedures;
                    ``(C) training for administrators, teachers, 
                related services personnel, behavioral specialists, and 
                other school staff in whole school positive behavioral 
                interventions and supports, behavioral intervention 
                planning, and classroom and student management 
                techniques;
                    ``(D) joint training for administrators, parents, 
                teachers, related services personnel, behavioral 
                specialists, and other school staff on effective 
                strategies for positive behavioral interventions and 
                behavior management strategies that focus on the 
                prevention of behavior problems;
                    ``(E) developing or implementing specific 
                curricula, programs, or interventions aimed at 
                addressing behavioral problems;
                    ``(F) stronger linkages between school-based 
                services and community-based resources, such as 
                community mental health and primary care providers; or
                    ``(G) using behavioral specialists, related 
                services personnel, and other staff necessary to 
                implement behavioral supports; or
            ``(2) to improve interim alternative educational settings 
        by--
                    ``(A) improving the training of administrators, 
                teachers, related services personnel, behavioral 
                specialists, and other school staff (including ongoing 
                mentoring of new teachers);
                    ``(B) attracting and retaining a high quality, 
                diverse staff;
                    ``(C) providing for on-site counseling services;
                    ``(D) using research-based interventions, 
                curriculum, and practices;
                    ``(E) allowing students to use instructional 
                technology that provides individualized instruction;
                    ``(F) ensuring that the services are fully 
                consistent with the goals of the individual student's 
                IEP;
                    ``(G) promoting effective case management and 
                collaboration among parents, teachers, physicians, 
                related services personnel, behavioral specialists, 
                principals, administrators, and other school staff;
                    ``(H) promoting interagency coordination and 
                coordinated service delivery among schools, juvenile 
                courts, child welfare agencies, community mental health 
                providers, primary care providers, public recreation 
                agencies, and community-based organizations; or
                    ``(I) providing for behavioral specialists to help 
                students transitioning from interim alternative 
                educational settings reintegrate into their regular 
                classrooms.

``SEC. 684. PROGRAM EVALUATIONS.

    ``(a) Report and Evaluation.--Each eligible entity receiving a 
grant under this subpart shall prepare and submit annually to the 
Secretary a report on the outcomes of the activities assisted under the 
grant.
    ``(b) Best Practices on Website.--The Secretary shall make 
available on the Department's website information for parents, 
teachers, and school administrators on best practices for interim 
alternative educational settings, behavior supports, and whole school 
intervention.

``SEC. 685. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this subpart 
$50,000,000 for fiscal year 2004 and such sums as may be necessary for 
each of the 5 succeeding fiscal years.''.

         TITLE II--AMENDMENTS TO THE REHABILITATION ACT OF 1973

SEC. 201. FINDINGS.

    Section 2(a) of the Rehabilitation Act of 1973 (29 U.S.C. 701(a)) 
is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(7) there is a substantial need to improve and expand 
        services for students with disabilities under this Act.''.

SEC. 202. DEFINITIONS.

    Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 705) is 
amended--
            (1) by redesignating paragraphs (35) through (39) as 
        paragraphs (36), (37), (38), (40), and (41), respectively;
            (2) in subparagraph (A)(ii) of paragraph (36) (as 
        redesignated in paragraph (1)), by striking ``paragraph 
        (36)(C)'' and inserting ``paragraph (37)(C)'';
            (3) by inserting after paragraph (34) the following:
            ``(35)(A) The term `student with a disability' means an 
        individual with a disability who--
                    ``(i) is not younger than 14 and not older than 21;
                    ``(ii) has been determined to be eligible under 
                section 102(a) for assistance under this title; and
                    ``(iii)(I) is eligible for, and is receiving, 
                special education under part B of the Individuals with 
                Disabilities Education Act (20 U.S.C. 1411 et seq.); or
                    ``(II) is an individual with a disability, for 
                purposes of section 504.
            ``(B) The term `students with disabilities' means more than 
        1 student with a disability.''; and
            (4) by inserting after paragraph (38) the following:
            ``(39) The term `transition services expansion year' 
        means--
                    ``(A) the first fiscal year for which the amount 
                appropriated under section 100(b) exceeds the amount 
                appropriated under section 100(b) for fiscal year 2004 
                by not less than $100,000,000; and
                    ``(B) each fiscal year subsequent to that first 
                fiscal year.''.

SEC. 203. STATE PLAN.

    (a) Assessment and Strategies.--Section 101(a)(15) of the 
Rehabilitation Act of 1973 (29 U.S.C. 721(a)(15)) is amended--
            (1) in subparagraph (A)(i)--
                    (A) in subclause (II), by striking ``and'' at the 
                end;
                    (B) in subclause (III), by adding ``and'' at the 
                end; and
                    (C) by adding at the end the following:
                                    ``(IV) in a transition services 
                                expansion year, students with 
                                disabilities, including their need for 
                                transition services;''; and
            (2) in subparagraph (D)--
                    (A) by redesignating clauses (iii), (iv), and (v) 
                as clauses (iv), (v), and (vi), respectively; and
                    (B) by inserting after clause (ii) the following:
                            ``(iii) in a transition services expansion 
                        year, the methods to be used to improve and 
                        expand vocational rehabilitation services for 
                        students with disabilities, including the 
                        coordination of services designed to facilitate 
                        the transition of such students from the 
                        receipt of educational services in school to 
                        the receipt of vocational rehabilitation 
                        services under this title or to postsecondary 
                        education or employment;''.
    (b) Services for Students With Disabilities.--Section 101(a) of the 
Rehabilitation Act of 1973 (29 U.S.C. 721(a)) is amended by adding at 
the end the following:
            ``(25) Services for students with disabilities.--The State 
        plan for a transition services expansion year shall provide an 
        assurance satisfactory to the Secretary that the State--
                    ``(A) has developed and implemented strategies to 
                address the needs identified in the assessment 
                described in paragraph (15), and achieve the goals and 
                priorities identified by the State, to improve and 
                expand vocational rehabilitation services for students 
                with disabilities on a statewide basis in accordance 
                with paragraph (15); and
                    ``(B) from funds reserved under section 110A, shall 
                carry out programs or activities designed to improve 
                and expand vocational rehabilitation services for 
                students with disabilities that--
                            ``(i) facilitate the transition of the 
                        students with disabilities from the receipt of 
                        educational services in school, to the receipt 
                        of vocational rehabilitation services under 
                        this title, including, at a minimum, those 
                        services specified in the interagency agreement 
                        required in paragraph (11)(D);
                            ``(ii) improve the achievement of post-
                        school goals of students with disabilities, 
                        including improving the achievement through 
                        participation (as appropriate when vocational 
                        goals are discussed) in meetings regarding 
                        individualized education programs developed 
                        under section 614 of the Individuals with 
                        Disabilities Education Act (20 U.S.C. 1414);
                            ``(iii) provide vocational guidance, career 
                        exploration services, and job search skills and 
                        strategies and technical assistance to students 
                        with disabilities;
                            ``(iv) support the provision of training 
                        and technical assistance to State and local 
                        educational agency and designated State agency 
                        personnel responsible for the planning and 
                        provision of services to students with 
                        disabilities; and
                            ``(v) support outreach activities to 
                        students with disabilities who are eligible 
                        for, and need, services under this title.''.

SEC. 204. SCOPE OF SERVICES.

    Section 103 of the Rehabilitation Act of 1973 (29 U.S.C. 723) is 
amended--
            (1) in subsection (a), by striking paragraph (15) and 
        inserting the following:
            ``(15) transition services for students with disabilities, 
        that facilitate the achievement of the employment outcome 
        identified in the individualized plan for employment, 
        including, in a transition services expansion year, services 
        described in clauses (i) through (iii) of section 
        101(a)(25)(B);''; and
            (2) in subsection (b), by striking paragraph (6) and 
        inserting the following:
            ``(6)(A)(i) Consultation and technical assistance services 
        to assist State and local educational agencies in planning for 
        the transition of students with disabilities from school to 
        post-school activities, including employment.
            ``(ii) In a transition services expansion year, training 
        and technical assistance described in section 
        101(a)(25)(B)(iv).
            ``(B) In a transition services expansion year, services for 
        groups of individuals with disabilities who meet the 
        requirements of clauses (i) and (iii) of section 7(35)(A), 
        including services described in clauses (i), (ii), (iii), and 
        (v) of section 101(a)(25)(B), to assist in the transition from 
        school to post-school activities.''.

SEC. 205. STANDARDS AND INDICATORS.

    Section 106(a) of the Rehabilitation Act of 1973 (29 U.S.C. 726(a)) 
is amended by striking paragraph (1)(C) and all that follows through 
paragraph (2) and inserting the following:
            ``(2) Measures.--The standards and indicators shall include 
        outcome and related measures of program performance that--
                    ``(A) facilitate the accomplishment of the purpose 
                and policy of this title;
                    ``(B) to the maximum extent practicable, are 
                consistent with the core indicators of performance, and 
                corresponding State adjusted levels of performance, 
                established under section 136(b) of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2871(b)); and
                    ``(C) include measures of the program's performance 
                with respect to the transition to post-school 
                vocational activities, and achievement of the post-
                school vocational goals, of students with disabilities 
                served under the program.''.

SEC. 206. RESERVATION FOR EXPANDED TRANSITION SERVICES.

    The Rehabilitation Act of 1973 is amended by inserting after 
section 110 (29 U.S.C. 730) the following:

``SEC. 110A. RESERVATION FOR EXPANDED TRANSITION SERVICES.

    ``(a) Reservation.--From the State allotment under section 110 in a 
transition services expansion year, each State shall reserve an amount 
calculated by the Commissioner under subsection (b) to carry out 
programs and activities under sections 101(a)(25)(B) and 103(b)(6).
    ``(b) Calculation.--The Commissioner shall calculate the amount to 
be reserved for such programs and activities for a fiscal year by each 
State by multiplying $50,000,000 by the percentage determined by 
dividing--
            ``(1) the amount allotted to that State under section 110 
        for the prior fiscal year; by
            ``(2) the total amount allotted to all States under section 
        110 for that prior fiscal year.''.

SEC. 207. CONFORMING AMENDMENT.

    Section 1(b) of the Rehabilitation Act of 1973 is amended by 
inserting after the item relating to section 110 the following:

``Sec. 110A. Reservation for expanded transition services.''.

       TITLE III--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

SEC. 301. NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH.

    (a) Amendment.--The Education Sciences Reform Act of 2002 (20 
U.S.C. 9501 et seq.) is amended--
            (1) by redesignating part E as part F; and
            (2) by inserting after part D the following:

        ``PART E--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

``SEC. 175. ESTABLISHMENT.

    ``(a) Establishment.--There is established in the Institute a 
National Center for Special Education Research.
    ``(b) Mission.--The mission of the National Center for Special 
Education Research (in this part referred to as the `Special Education 
Research Center') is--
            ``(1) to sponsor research to expand knowledge and 
        understanding of the needs of infants, toddlers, and children 
        with disabilities in order to improve the developmental, 
        educational, and transitional results of such individuals;
            ``(2) to sponsor research to improve services provided 
        under, and support the implementation of, the Individuals with 
        Disabilities Education Act; and
            ``(3) to evaluate the implementation and effectiveness of 
        the Individuals with Disabilities Education Act in coordination 
        with the National Center for Education Evaluation and Regional 
        Assistance.
    ``(c) Applicability of Education Sciences Reform Act of 2002.--
Parts A and F, and the standards for peer review of applications and 
for the conduct and evaluation of research under sections 133(a) and 
134, respectively, shall apply to the Secretary, the Director, and the 
Commissioner in carrying out this part.

``SEC. 176. COMMISSIONER FOR SPECIAL EDUCATION RESEARCH.

    ``The Special Education Research Center shall be headed by a 
Commissioner for Special Education Research (in this part referred to 
as `the Special Education Research Commissioner') who shall have 
substantial knowledge of the Special Education Research Center's 
activities, including a high level of expertise in the fields of 
research, research management, and the education of children with 
disabilities.

``SEC. 177. DUTIES.

    ``(a) General Duties.--The Special Education Research Center shall 
carry out research activities under this part consistent with the 
mission described in section 175(b), such as activities that--
            ``(1) improve services provided under the Individuals with 
        Disabilities Education Act in order to improve--
                    ``(A) academic achievement, functional outcomes, 
                and educational results for children with disabilities; 
                and
                    ``(B) developmental outcomes for infants and 
                toddlers;
            ``(2) identify scientifically based educational practices 
        that support learning and improve academic achievement, 
        functional outcomes, and educational results for all students 
        with disabilities;
            ``(3) examine the special needs of preschool aged children, 
        infants, and toddlers with disabilities, including factors that 
        may result in developmental delays;
            ``(4) identify scientifically based related services and 
        interventions that promote participation and progress in the 
        general education curriculum and general education settings;
            ``(5) improve the alignment, compatibility, and development 
        of valid and reliable assessments, including alternate 
        assessments, as required by section 1111(b) of the Elementary 
        and Secondary Education Act of 1965;
            ``(6) examine State content standards and alternate 
        assessments for students with significant cognitive impairment 
        in terms of academic achievement, individualized instructional 
        need, appropriate education settings, and improved post-school 
        results;
            ``(7) examine the educational, developmental, and 
        transitional needs of children with high incidence and low 
        incidence disabilities;
            ``(8) examine the extent to which overidentification and 
        underidentification of children with disabilities occurs, and 
        the causes thereof;
            ``(9) improve reading and literacy skills of children with 
        disabilities;
            ``(10) examine and improve secondary and postsecondary 
        education and transitional outcomes and results for children 
        with disabilities;
            ``(11) examine methods of early intervention for children 
        with disabilities, including children with multiple or complex 
        developmental delays;
            ``(12) examine and incorporate universal design concepts in 
        the development of standards, assessments, curricula, and 
        instructional methods as a method to improve educational and 
        transitional results for children with disabilities;
            ``(13) improve the preparation of personnel, including 
        early intervention personnel, who provide educational and 
        related services to children with disabilities to increase the 
        academic achievement and functional performance of students 
        with disabilities;
            ``(14) examine the excess costs of educating a child with a 
        disability and expenses associated with high cost special 
        education and related services;
            ``(15) help parents improve educational results for their 
        children, particularly related to transition issues; and
            ``(16) address the unique needs of children with 
        significant cognitive disabilities.
    ``(b) Standards.--The Commissioner of Special Education Research 
shall ensure that activities assisted under this section--
            ``(1) conform to high standards of quality, integrity, 
        accuracy, validity, and reliability;
            ``(2) are carried out in conjunction with the standards for 
        the conduct and evaluation of all research and development 
        established by the National Center for Education Research; and
            ``(3) are objective, secular, neutral, and nonideological, 
        and are free of partisan political influence, and racial, 
        cultural, gender, regional, or disability bias.
    ``(c) Plan.--The Commissioner of Special Education Research shall 
propose to the Director a research plan, developed in collaboration 
with the Assistant Secretary for Special Education and Rehabilitative 
Services, that--
            ``(1) is consistent with the priorities and mission of the 
        Institute and the mission of the Special Education Research 
        Center;
            ``(2) is carried out, updated, and modified, as 
        appropriate;
            ``(3) is consistent with the purpose of the Individuals 
        with Disabilities Education Act;
            ``(4) contains an appropriate balance across all age ranges 
        and types of children with disabilities;
            ``(5) provides for research that is objective and uses 
        measurable indicators to assess its progress and results;
            ``(6) is coordinated with the comprehensive plan developed 
        under section 661 of the Individuals with Disabilities 
        Education Act; and
            ``(7) provides that the research conducted under part D of 
        the Individuals with Disabilities Education Act is relevant to 
        special education practice and policy.
    ``(d) Grants, Contracts, and Cooperative Agreements.--In carrying 
out the duties under this section, the Director may award grants to, or 
enter into contracts or cooperative agreements with, eligible entities.
    ``(e) Applications.--An eligible entity that wishes to receive a 
grant, or enter into a contract or cooperative agreement, under this 
part shall submit an application to the Director at such time, in such 
manner, and containing such information as the Director may require.
    ``(f) Dissemination.--The Special Education Research Center shall--
            ``(1) synthesize and disseminate, through the National 
        Center for Education Evaluation and Regional Assistance, the 
        findings and results of special education research conducted or 
        supported by the Special Education Research Center; and
            ``(2) assist the Director in the preparation of a biennial 
        report, as described in section 119.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this part such sums as may be necessary for 
each of fiscal years 2004 through 2009.''.
    (b) Conforming Amendments.--
            (1) Education sciences reform act of 2002.--The Education 
        Sciences Reform Act of 2002 (20 U.S.C. 9501 et seq.) is 
        amended--
                    (A) in section 111(b)(1)(A) (20 U.S.C. 
                9511(b)(1)(A)), by inserting ``and special education'' 
                after ``early childhood education''.
                    (B) in section 111(c)(3) (20 U.S.C. 9511(c)(3))--
                            (i) in subparagraph (B), by striking 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (C), by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(D) the National Center for Special Education 
                Research (as described in part E).'';
                    (C) in section 115(a) (20 U.S.C. 9515(a)), by 
                striking ``including those'' and all that follows 
                through ``such as'' and inserting ``including those 
                associated with the goals and requirements of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6301 et seq.), the Individuals with Disabilities 
                Education Act (20 U.S.C. 1400 et seq.), and the Higher 
                Education Act of 1965 (20 U.S.C. 1001 et seq.), such 
                as''; and
                    (D) in section 116(c)(4)(A)(ii) (20 U.S.C. 
                9516(c)(4)(A)(ii) is amended by inserting ``special 
                education experts,'' after ``early childhood 
                experts,''.
            (2) Elementary and secondary education act of 1965.--
        Section 1117(a)(3) of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 6317(a)(3)) is amended by striking 
        ``part E'' and inserting ``part D''.
    (c) Transition Provisions.--
            (1) Orderly transition.--Notwithstanding any other 
        provision of law, the Secretary of Education shall take such 
        steps as are necessary to provide for the orderly transition 
        to, and implementation of, part E of the Education Science 
        Reform Act of 2002, as enacted by subsection (a), from research 
        activities carried out under section 672 of the Individuals 
        with Disabilities Education Act (as such section was in effect 
        on the day before the date of enactment of this Act).
            (2) Continuation of awards.--The Secretary of Education 
        shall continue research awards made under section 672 of the 
        Individuals with Disabilities Education Act (as such section 
        was in effect on the day before the date of enactment of this 
        Act) that are in effect on the day before the date of enactment 
        of this Act in accordance with the terms of those awards.
    (d) Effective Dates.--Notwithstanding any other provision of law--
            (1) the amendments made by subsections (a) and (b) of this 
        section shall take effect on October 1, 2004; and
            (2) section 672 of the Individuals with Disabilities 
        Education Act (as such section was in effect on the day before 
        the date of enactment of this Act) shall remain in effect 
        through September 30, 2004.

SEC. 302. NATIONAL BOARD FOR EDUCATION SCIENCES.

    Section 116(c)(9) of the Education Sciences Reform Act of 2002 (20 
U.S.C. 9516(c)(9)) is amended by striking the third sentence and 
inserting the following: ``Meetings of the Board are subject to section 
552b of title 5, United States Code (commonly referred to as the 
Government in the Sunshine Act).''.

SEC. 303. REGIONAL ADVISORY COMMITTEES.

    Section 206(d)(3) of the Education Sciences Reform Act of 2002 (20 
U.S.C. 9605(d)(3)) is amended by striking ``Academy'' and inserting 
``Institute''.

   TITLE IV--COMMISSION ON UNIVERSAL DESIGN AND THE ACCESSIBILITY OF 
                 CURRICULUM AND INSTRUCTIONAL MATERIALS

SEC. 401. COMMISSION ON UNIVERSAL DESIGN AND THE ACCESSIBILITY OF 
              CURRICULUM AND INSTRUCTIONAL MATERIALS.

    (a) Establishment and Purpose.--
            (1) Establishment.--There is established a Commission 
        (hereafter in this section referred to as the ``Commission'') 
        to study, evaluate, and make appropriate recommendations to the 
        Congress and to the Secretary on universal design and 
        accessibility of curriculum and instructional materials for use 
        by all children, with a particular focus on children with 
        disabilities, in elementary schools and secondary schools.
            (2) Purpose.--The purpose of the Commission is--
                    (A) to survey the issues related to improving 
                access to curriculum and instructional materials for 
                children with disabilities, with and without assistive 
                technologies;
                    (B) to study the benefits, current or potential 
                costs, and challenges of developing and implementing a 
                standard definition of the term universal design as a 
                means to achieve accessibility of curriculum and 
                instructional materials, and as the Commission 
                determines necessary, to recommend a definition for the 
                term universal design, or other terms, taking into 
                consideration educational objectives, investment of 
                resources, state of technology, and effect on 
                development of curriculum and instructional materials;
                    (C) to examine issues related to the need for and 
                current availability and accessibility of curriculum 
                and instructional materials for use in elementary 
                schools and secondary schools by children with 
                disabilities, gaps in or conflicts among relevant 
                technical standards, educational quality, availability 
                of instructional materials, technical standards, 
                intellectual property rights, and the economic and 
                technical feasibility of implementing any recommended 
                definitions; and
                    (D) to provide the Congress and the Secretary, not 
                later than 24 months after the date of enactment of 
                this Act, the report described in subsection (d).
    (b) Membership.--
            (1) Composition.--The Commission shall be composed of 21 
        members, of which--
                    (A) 3 members shall be appointed by the Majority 
                Leader of the Senate;
                    (B) 2 members shall be appointed by the Minority 
                Leader of the Senate;
                    (C) 3 members shall be appointed by the Speaker of 
                the House of Representatives;
                    (D) 2 members shall be appointed by the Minority 
                Leader of the House;
                    (E) 8 members shall be appointed by the Secretary 
                including representatives of States, local educational 
                agencies, publishers of instructional material, 
                individuals with disabilities, technical standard 
                setting bodies, and authorized entities as defined in 
                section 121(c)(1) of title 17, United States Code; and
                    (F) 3 members shall be appointed by the Registrar 
                of Copyrights.
            (2) Expertise of commissioners.--All members of the 
        Commission shall be individuals who have been appointed on the 
        basis of technical qualifications, professional expertise, and 
        demonstrated knowledge and shall include at least 4 
        representatives of each of the following:
                    (A) publishers of instructional materials, 
                including of textbooks, software, and other print, 
                electronic, or digital curricular materials;
                    (B) elementary and secondary education, including 
                teachers, special educators, and State and local 
                education officials or administrators;
                    (C) researchers in the fields of disabilities, 
                technology, and accessible media;
                    (D) experts in intellectual property rights; and
                    (E) advocates of children with disabilities, 
                including parents of blind, visually impaired, deaf, 
                hearing impaired, physically challenged, cognitively 
                impaired, or learning disabled, or representatives of 
                organizations that advocate for such children.
            (3) Date.--The appointment of the members of the Commission 
        shall be made not later than 60 days after the date of 
        enactment of this Act.
            (4) Period of appointment and vacancies.--Members shall be 
        appointed for the life of the Commission. Any vacancy in the 
        Commission shall not affect its powers, but shall be filled in 
        the same manner as the original appointment.
            (5) Initial meeting.--Not later than 45 days after the date 
        on which all members of the Commission have been appointed, the 
        Commission shall hold the Commission's first meeting.
            (6) Meetings.--The Commission shall meet at the call of the 
        Chairperson.
            (7) Quorum.--A majority of the members of the Commission 
        shall constitute a quorum, but a lesser number of members may 
        hold hearings.
            (8) Chairperson and vice chairperson.--The Commission shall 
        select a chairperson and vice chairperson from among the 
        members of the Commission.
    (c) Duties of the Commission.--The Commission shall study and make 
recommendations to Congress and the Secretary regarding--
            (1) the purposes of the Commission described in subsection 
        (a)(2);
            (2) priority topics for additional research;
            (3) the availability and accessibility of curricula and 
        instructional materials, including print, software, CD-ROM, 
        video, and Internet, for use in elementary schools and 
        secondary schools by children with disabilities, including--
                    (A) the numbers of affected children with 
                disabilities, by grade, age, and type of disability;
                    (B) the technical and other means by which such 
                materials are made accessible, such as assistive 
                technologies, electronic versions, large print, closed 
                captioning, video description, and Braille, and any 
                conflicts between relevant technical standards by which 
                instructional materials are made accessible;
                    (C) the steps taken by State and local educational 
                agencies to support accessibility, including through 
                State adoption and procurement policies, the 
                acquisition and integration of assistive technology, 
                and any State and local requirements or standards;
                    (D) timeliness of receipt of such materials by 
                children with disabilities; and
                    (E) continued barriers to access to such materials; 
                and
            (4) the potential and likely effects of providing 
        accessible or universally designed materials for all students 
        in elementary schools and secondary schools, with a particular 
        focus on children with disabilities, including--
                    (A) an analysis of the current and potential costs 
                to develop and provide accessible instructional 
                materials, with and without specialized formats, to 
                publishers, States, local educational agencies, 
                schools, and others, broken down by--
                            (i) type of disability, including physical, 
                        sensory, and cognitive disability;
                            (ii) type of instructional materials, 
                        including by grade and by basal and 
                        supplemental materials; and
                            (iii) type of media, including print, 
                        electronic, software, web-based, audio, and 
                        video; and
                    (B) an analysis of the effects of any recommended 
                definitions regarding--
                            (i) the availability and quality of 
                        instructional materials for nondisabled 
                        students, and innovation in the development and 
                        delivery of these materials;
                            (ii) State learning content standards that 
                        are media-, skill-, or pedagogically-based and 
                        may therefore be compromised;
                            (iii) prices of instructional materials and 
                        the impact of the definitions on State and 
                        local budgets; and
                            (iv) intellectual property rights in 
                        connection with the development, distribution, 
                        and use of curriculum and instructional 
                        materials.
    (d) Public Hearings.--As part of the study conducted under this 
subsection, the Commission shall hold public hearings, including 
through the use of the Internet or other technologies, for the purposes 
referred to in subsection (a).
    (e) Report.--
            (1) Interim report.--Not later than 12 months after the 
        establishment of the Commission, the Commission shall provide 
        to the Secretary and Congress an interim report on the 
        Commission's activities during the Commission's first year and 
        any preliminary findings.
            (2) Final report.--Not later than 24 months after the 
        establishment of the Commission, the Commission shall submit a 
        report to the Secretary and Congress that shall contain--
                    (A) recommendations determined necessary regarding 
                definitions of the terms described in subsection 
                (a)(2)(B);
                    (B) recommendations for additional research; and
                    (C) a detailed statement of the findings and 
                conclusions of the Commission resulting from the study 
                of the issues identified in subsection (a)(2)(C).
    (f) Powers of the Commission.--
            (1) Authority of commission.--The Commission may hold such 
        hearings, convene and act at such times and places, take such 
        testimony, and receive such evidence, as the Commission 
        considers necessary to carry out the responsibilities of the 
        Commission.
            (2) Use of mail.--The Commission may use the United States 
        mails in the same manner and under the same conditions as other 
        departments and agencies of the Federal Government.
            (3) Gifts.--The Commission may accept, use, and dispose of 
        gifts or donations of services or property.
            (4) Compensation.--Except as provided in paragraph (5), 
        each member of the Commission who is not an officer or employee 
        of the Federal Government shall serve without compensation. All 
        members of the Commission who are officers or employees of the 
        United States shall serve without compensation in addition to 
        that received for their services as officers or employees of 
        the United States.
            (5) Per diem.--The members of the Commission shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of business 
        in the performance of services for the Commission.
            (6) Employment and compensation of employees.--Except as 
        otherwise provided in this section and consistent with section 
        3161 of title 5, United States Code, the Chairperson may 
        appoint, fix the compensation of, and terminate an executive 
        director and such additional employees as may be necessary to 
        enable the Commission to perform the Commission's duties.
            (7) Detailing of federal employees.--Any Federal Government 
        employee may be detailed to the Commission without 
        reimbursement, and such detail shall be without interruption or 
        loss of civil service status or privilege.
            (8) Temporary and intermittent services.--The Chairperson 
        of the Commission may procure temporary and intermittent 
        services under section 3109(b) of title 5, United States Code, 
        at rates for individuals that do not exceed the daily 
        equivalent of the annual rate of basic pay prescribed for level 
        V of the Executive Schedule under section 5316 of such title.
    (g) Termination of the Commission.--The Commission shall terminate 
on the date that is 90 days after the date on which the Commission 
submits its final report under subsection (e)(2).
    (h) Authorization of Appropriations.--
            (1) Authorization.--There are authorized to be appropriated 
        $750,000 for fiscal year 2004, and such sums as necessary for 
        fiscal year 2005 to carry out the provisions of this section.
            (2) Availability.--Any sums appropriated under the 
        authorization contained in this subsection shall remain 
        available, without fiscal year limitation, until expended.

                         TITLE V--MISCELLANEOUS

SEC. 501. AMENDMENT TO CHILDREN'S HEALTH ACT OF 2000.

    Section 1004 of the Children's Health Act of 2000 (42 U.S.C. 285g 
note) is amended--
            (1) in subsection (b), by striking ``Agency'' and inserting 
        ``Agency, and the Department of Education''; and
            (2) in subsection (c)--
                    (A) in paragraph (2), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) be conducted in compliance with section 444 of the 
        General Education Provisions Act (20 U.S.C. 1232g), including 
        the requirement of prior parental consent for the disclosure of 
        any education records, except without the use of authority or 
        exceptions granted to authorized representatives of the 
        Secretary of Education for the evaluation of Federally-
        supported education programs or in connection with the 
        enforcement of the Federal legal requirements that relate to 
        such programs.''.

SEC. 502. GAO REVIEW OF CHILD MEDICATION USAGE.

    (a) Review.--The Comptroller General shall conduct a review of--
            (1) the extent to which personnel in schools actively 
        influence parents in pursuing a diagnosis of attention deficit 
        disorder and attention deficit hyperactivity disorder;
            (2) the policies and procedures among public schools in 
        allowing school personnel to distribute controlled substances; 
        and
            (3) the extent to which school personnel have required a 
        child to obtain a prescription for substances covered by 
        section 202(c) of the Controlled Substances Act (21 U.S.C. 
        812(c)) to treat attention deficit disorder, attention deficit 
        hyperactivity disorder, or other attention deficit-related 
        illnesses or disorders, in order to attend school or be 
        evaluated for services under the Individuals with Disabilities 
        Education Act.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General shall prepare and submit to Congress 
a report that contains the results of the review under subsection (a).

            Attest:

                                                             Secretary.
108th CONGRESS

  2d Session

                               H. R. 1350

_______________________________________________________________________

                               AMENDMENT