[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1350 Enrolled Bill (ENR)]
H.R.1350
One Hundred Eighth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twentieth day of January, two thousand and four
An Act
To reauthorize the Individuals with Disabilities Education Act, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``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--National Center for Special Education Research.
Title III--Miscellaneous Provisions.
TITLE I--AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT
SEC. 101. AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION
ACT.
Parts A through D of the Individuals with Disabilities Education
Act (20 U.S.C. 1400 et seq.) are amended to read as follows:
``PART A--GENERAL PROVISIONS
``SEC. 601. SHORT TITLE; TABLE OF CONTENTS; FINDINGS; PURPOSES.
``(a) Short Title.--This title may be cited as the `Individuals
with Disabilities Education Act'.
``(b) Table of Contents.--The table of contents for this title is
as follows:
``Part A--General Provisions
``Sec. 601. Short title; table of contents; findings; purposes.
``Sec. 602. Definitions.
``Sec. 603. Office of Special Education Programs.
``Sec. 604. Abrogation of State sovereign immunity.
``Sec. 605. 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 DEVELOPMENT GRANTS
``Sec. 651. Purpose; definition of personnel; program authority.
``Sec. 652. Eligibility and collaborative process.
``Sec. 653. Applications.
``Sec. 654. Use of funds.
``Sec. 655. Authorization of appropriations.
``SUBPART 2--PERSONNEL PREPARATION, TECHNICAL ASSISTANCE, MODEL
DEMONSTRATION PROJECTS, AND DISSEMINATION OF INFORMATION
``Sec. 661. Purpose; definition of eligible entity.
``Sec. 662. Personnel development to improve services and results
for children with disabilities.
``Sec. 663. Technical assistance, demonstration projects,
dissemination of information, and implementation of
scientifically based research.
``Sec. 664. Studies and evaluations.
``Sec. 665. Interim alternative educational settings, behavioral
supports, and systemic school interventions.
``Sec. 667. Authorization of appropriations.
``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. Authorization of appropriations.
``SUBPART 4--GENERAL PROVISIONS
``Sec. 681. Comprehensive plan for subparts 2 and 3.
``Sec. 682. Administrative provisions.
``(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 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 title 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 title 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) Almost 30 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 title 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 such children 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 early intervening
services to reduce the need to label children as disabled in
order to address the learning and behavioral needs of such
children;
``(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 diverse society.
``(B) America's ethnic profile is rapidly changing. In 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 in order to
provide appropriate role models with sufficient knowledge to
address the special education needs of these students.
``(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) Such discrepancies pose a special challenge for special
education in the referral of, assessment of, and provision of
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 White
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 full participation by minority
individuals, minority organizations, and Historically Black
Colleges and Universities in awards for grants and contracts,
boards of organizations receiving assistance under this title, peer
review panels, and training of professionals in the area of special
education is essential 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 further education,
employment, 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,
comprehensive, 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 system improvement 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, in this title:
``(1) Assistive technology device.--
``(A) In general.--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.
``(B) Exception.--The term does not include a medical
device that is surgically implanted, or the replacement 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 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 (referred to in this title 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 subjects.--The term `core academic
subjects' has the meaning given the term in section 9101 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, including a
public elementary charter 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;
``(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.--
``(A) In general.--For any special education teacher, the
term `highly qualified' has the meaning given the term in
section 9101 of the Elementary and Secondary Education Act of
1965, except that such term also--
``(i) includes the requirements described in
subparagraph (B); and
``(ii) includes the option for teachers to meet the
requirements of section 9101 of such Act by meeting the
requirements of subparagraph (C) or (D).
``(B) Requirements for special education teachers.--When
used with respect to any public elementary school or secondary
school special education teacher teaching in a State, such term
means that--
``(i) the teacher has obtained full State certification
as a special education teacher (including certification
obtained through alternative routes to certification), or
passed the State special education teacher 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 special education
certification or licensure requirements waived on an
emergency, temporary, or provisional basis; and
``(iii) the teacher holds at least a bachelor's degree.
``(C) Special education teachers teaching to alternate
achievement standards.--When used with respect to a special
education teacher who teaches core academic subjects
exclusively to children who are assessed against alternate
achievement standards established under the regulations
promulgated under section 1111(b)(1) of the Elementary and
Secondary Education Act of 1965, such term means the teacher,
whether new or not new to the profession, may either--
``(i) meet the applicable requirements of section 9101
of such Act for any elementary, middle, or secondary school
teacher who is new or not new to the profession; or
``(ii) meet the requirements of subparagraph (B) or (C)
of section 9101(23) of such Act as applied to an elementary
school teacher, or, in the case of instruction above the
elementary level, has subject matter knowledge appropriate
to the level of instruction being provided, as determined
by the State, needed to effectively teach to those
standards.
``(D) Special education teachers teaching multiple
subjects.--When used with respect to a special education
teacher who teaches 2 or more core academic subjects
exclusively to children with disabilities, such term means that
the teacher may either--
``(i) meet the applicable requirements of section 9101
of the Elementary and Secondary Education Act of 1965 for
any elementary, middle, or secondary school teacher who is
new or not new to the profession;
``(ii) in the case of a teacher who is not new to the
profession, demonstrate competence in all the core academic
subjects in which the teacher teaches in the same manner as
is required for an elementary, middle, or secondary school
teacher who is not new to the profession under section
9101(23)(C)(ii) of such Act, which may include a single,
high objective uniform State standard of evaluation
covering multiple subjects; or
``(iii) in the case of a new special education teacher
who teaches multiple subjects and who is highly qualified
in mathematics, language arts, or science, demonstrate
competence in the other core academic subjects in which the
teacher teaches in the same manner as is required for an
elementary, middle, or secondary school teacher under
section 9101(23)(C)(ii) of such Act, which may include a
single, high objective uniform State standard of evaluation
covering multiple subjects, not later than 2 years after
the date of employment.
``(E) Rule of construction.--Notwithstanding any other
individual right of action that a parent or student may
maintain under this part, nothing in this section or part shall
be construed to create a right of action on behalf of an
individual student or class of students for the failure of a
particular State educational agency or local educational agency
employee to be highly qualified.
``(F) Definition for purposes of the esea.--A teacher who
is highly qualified under this paragraph shall be considered
highly qualified for purposes of the Elementary and Secondary
Education Act of 1965.
``(11) 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 (42 U.S.C.
11434a).
``(12) Indian.--The term `Indian' means an individual who is a
member of an Indian tribe.
``(13) 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 (43 U.S.C. 1601 et seq.)).
``(14) Individualized education program; IEP.--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).
``(15) Individualized family service plan.--The term
`individualized family service plan' has the meaning given the term
in section 636.
``(16) Infant or toddler with a disability.--The term `infant
or toddler with a disability' has the meaning given the term in
section 632.
``(17) Institution of higher education.--The term `institution
of higher education'--
``(A) has the meaning given the term in section 101 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.
``(18) Limited english proficient.--The term `limited English
proficient' has the meaning given the term in section 9101 of the
Elementary and Secondary Education Act of 1965.
``(19) Local educational agency.--
``(A) In general.--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) Educational service agencies and other public
institutions or agencies.--The term includes--
``(i) an educational service agency; and
``(ii) any other public institution or agency having
administrative control and direction of a public elementary
school or secondary school.
``(C) BIA funded schools.--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 title 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.
``(20) Native language.--The term `native language', when used
with respect to an individual who is limited English proficient,
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.
``(21) 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.
``(22) Outlying area.--The term `outlying area' means the
United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
``(23) Parent.--The term `parent' means--
``(A) a natural, adoptive, or foster parent of a child
(unless a foster parent is prohibited by State law from serving
as a parent);
``(B) a guardian (but not the State if the child is a ward
of the State);
``(C) 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
``(D) 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.
``(24) Parent organization.--The term `parent organization' has
the meaning given the term in section 671(g).
``(25) Parent training and information center.--The term
`parent training and information center' means a center assisted
under section 671 or 672.
``(26) Related services.--
``(A) In general.--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
nurse services designed to enable a child with a disability to
receive a free appropriate public education as described in the
individualized education program of the child, counseling
services, including rehabilitation counseling, orientation and
mobility services, and medical services, except that such
medical services shall be for diagnostic and evaluation
purposes only) as may be required to assist a child with a
disability to benefit from special education, and includes the
early identification and assessment of disabling conditions in
children.
``(B) Exception.--The term does not include a medical
device that is surgically implanted, or the replacement of such
device.
``(27) Secondary school.--The term `secondary school' means a
nonprofit institutional day or residential school, including a
public secondary charter school, that provides secondary education,
as determined under State law, except that it does not include any
education beyond grade 12.
``(28) Secretary.--The term `Secretary' means the Secretary of
Education.
``(29) 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.
``(30) 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.
``(31) 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.
``(32) 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.
``(33) 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).
``(34) Transition services.--The term `transition services'
means a coordinated set of activities for a child with a disability
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 education,
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.
``(35) Universal design.--The term `universal design' has the
meaning given the term in section 3 of the Assistive Technology Act
of 1998 (29 U.S.C. 3002).
``(36) Ward of the state.--
``(A) In general.--The term `ward of the State' means a
child who, as determined by the State where the child resides,
is a foster child, is a ward of the State, or is in the custody
of a public child welfare agency.
``(B) Exception.--The term does not include a foster child
who has a foster parent who meets the definition of a parent in
paragraph (23).
``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 the Department for administering and carrying out this title
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 title.
``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 title.
``(b) Remedies.--In a suit against a State for a violation of this
title, remedies (including remedies both at law and in equity) are
available for such a violation to the same extent as 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 title 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 title makes positive efforts to employ and advance in
employment qualified individuals with disabilities in programs assisted
under this title.
``SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.
``(a) In General.--In carrying out the provisions of this title,
the Secretary shall issue regulations under this title only to the
extent that such regulations are necessary to ensure that there is
compliance with the specific requirements of this title.
``(b) Protections Provided to Children.--The Secretary may not
implement, or publish in final form, any regulation prescribed pursuant
to this title that--
``(1) violates or contradicts any provision of this title; or
``(2) procedurally or substantively lessens the protections
provided to children with disabilities under this title, 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 Congress in
legislation.
``(c) Public Comment Period.--The Secretary shall provide a public
comment period of not less than 75 days on any regulation proposed
under part B or part C 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 title; or
``(2) establish a rule that is required for compliance with,
and eligibility under, this title 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 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 Title.--
``(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 title or the regulations implemented pursuant to this title.
``(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 title
shall--
``(1) ensure that any State rules, regulations, and policies
relating to this title conform to the purposes of this title;
``(2) identify in writing to local educational agencies located
in the State and the Secretary any such rule, regulation, or policy
as a State-imposed requirement that is not required by this title
and Federal regulations; and
``(3) minimize the number of rules, regulations, and policies
to which the local educational agencies and schools located in the
State are subject under this title.
``(b) Support and Facilitation.--State rules, regulations, and
policies under this title shall support and facilitate local
educational agency and school-level system improvement designed to
enable children with disabilities to meet the challenging State student
academic achievement standards.
``SEC. 609. PAPERWORK REDUCTION.
``(a) Pilot Program.--
``(1) Purpose.--The purpose of this section 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 title, 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.
``(2) Authorization.--
``(A) In general.--In order to carry out the purpose of
this section, the Secretary is authorized to grant waivers of
statutory requirements of, or regulatory requirements relating
to, part B 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.
``(B) Exception.--The Secretary shall not waive under this
section any statutory requirements of, or regulatory
requirements relating to, applicable civil rights requirements.
``(C) Rule of construction.--Nothing in this section shall
be construed to--
``(i) affect the right of a child with a disability to
receive a free appropriate public education under part B;
and
``(ii) permit a State or local educational agency to
waive procedural safeguards under section 615.
``(3) Proposal.--
``(A) In general.--A State desiring to participate in the
program under this section shall submit a proposal to the
Secretary at such time and in such manner as the Secretary may
reasonably require.
``(B) Content.--The proposal shall include--
``(i) a list of any statutory requirements of, or
regulatory requirements relating to, part B that the State
desires the Secretary to waive, 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.
``(4) Termination of waiver.--The Secretary shall terminate a
State's waiver under this section if the Secretary determines that
the State--
``(A) needs assistance under section 616(d)(2)(A)(ii) and
that the waiver has contributed to or caused such need for
assistance;
``(B) needs intervention under section 616(d)(2)(A)(iii) or
needs substantial intervention under section 616(d)(2)(A)(iv);
or
``(C) failed to appropriately implement its waiver.
``(b) Report.--Beginning 2 years after the date of enactment of the
Individuals with Disabilities Education Improvement Act of 2004, 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
subsection (a), including any specific recommendations for broader
implementation of such waivers, in--
``(1) reducing--
``(A) the paperwork burden on teachers, principals,
administrators, and related service providers; and
``(B) noninstructional time spent by teachers in complying
with part B;
``(2) enhancing longer-term educational planning;
``(3) improving positive outcomes for children with
disabilities;
``(4) promoting collaboration between IEP Team members; and
``(5) 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 title to
the extent that such grants continue to be available to States and
local educational agencies under this title.
``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, outlying areas, and freely associated States, 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 of the grant a State
may receive under this section--
``(A) for fiscal years 2005 and 2006 is--
``(i) the number of children with disabilities in the
State who are receiving special education and related
services--
``(I) aged 3 through 5 if the State is eligible for
a grant under section 619; and
``(II) aged 6 through 21; multiplied by
``(ii) 40 percent of the average per-pupil expenditure
in public elementary schools and secondary schools in the
United States; and
``(B) for fiscal year 2007 and subsequent fiscal years is--
``(i) the number of children with disabilities in the
2004-2005 school year in the State who received special
education and related services--
``(I) aged 3 through 5 if the State is eligible for
a grant under section 619; and
``(II) aged 6 through 21; multiplied by
``(ii) 40 percent of the average per-pupil expenditure
in public elementary schools and secondary schools in the
United States; adjusted by
``(iii) the rate of annual change in the sum of--
``(I) 85 percent of such State's population
described in subsection (d)(3)(A)(i)(II); and
``(II) 15 percent of such State's population
described in subsection (d)(3)(A)(i)(III).
``(b) Outlying Areas and Freely Associated States; Secretary of the
Interior.--
``(1) Outlying areas and freely associated states.--
``(A) 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--
``(i) to provide assistance to the outlying areas in
accordance with their respective populations of individuals
aged 3 through 21; and
``(ii) 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.
``(B) 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.
``(C) Definition.--In this paragraph, the term `freely
associated States' means the Republic of the Marshall Islands,
the Federated States of Micronesia, and the Republic of Palau.
``(2) 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 (h).
``(c) Technical Assistance.--
``(1) In general.--The Secretary may reserve not more than \1/
2\ of 1 percent of the amounts appropriated under this part for
each fiscal year to provide technical assistance activities
authorized under section 616(i).
``(2) Maximum amount.--The maximum amount the Secretary may
reserve under paragraph (1) for any fiscal year is $25,000,000,
cumulatively adjusted by the rate of inflation as measured by 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.
``(d) Allocations to States.--
``(1) In general.--After reserving funds for technical
assistance, 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 for each fiscal year not
more than the maximum amount the State was eligible to
reserve for State administration under this section for
fiscal year 2004 or $800,000 (adjusted in accordance with
subparagraph (B)), whichever is greater; and
``(ii) each outlying area may reserve for each fiscal
year not more than 5 percent of the amount the outlying
area receives under subsection (b)(1) for the fiscal year
or $35,000, whichever is greater.
``(B) Cumulative annual adjustments.--For each fiscal year
beginning with fiscal year 2005, the Secretary shall
cumulatively adjust--
``(i) the maximum amount the State was eligible to
reserve for State administration under this part for fiscal
year 2004; and
``(ii) $800,000,
by the rate of inflation as measured by 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.
``(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.
``(D) 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 such part.
``(2) Other state-level activities.--
``(A) State-level activities.--
``(i) In general.--Except as provided in clause (iii),
for the purpose of carrying out State-level activities,
each State may reserve for each of the fiscal years 2005
and 2006 not more than 10 percent from the amount of the
State's allocation under subsection (d) for each of the
fiscal years 2005 and 2006, respectively. For fiscal year
2007 and each subsequent fiscal year, the State may reserve
the maximum amount the State was eligible to reserve under
the preceding sentence for fiscal year 2006 (cumulatively
adjusted by the rate of inflation as measured by 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).
``(ii) Small state adjustment.--Notwithstanding clause
(i) and except as provided in clause (iii), in the case of
a State for which the maximum amount reserved for State
administration is not greater than $850,000, the State may
reserve for the purpose of carrying out State-level
activities for each of the fiscal years 2005 and 2006, not
more than 10.5 percent from the amount of the State's
allocation under subsection (d) for each of the fiscal
years 2005 and 2006, respectively. For fiscal year 2007 and
each subsequent fiscal year, such State may reserve the
maximum amount the State was eligible to reserve under the
preceding sentence for fiscal year 2006 (cumulatively
adjusted by the rate of inflation as measured by 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).
``(iii) Exception.--If a State does not reserve funds
under paragraph (3) for a fiscal year, then--
``(I) in the case of a State that is not described
in clause (ii), for fiscal year 2005 or 2006, clause
(i) shall be applied by substituting `9.0 percent' for
`10 percent'; and
``(II) in the case of a State that is described in
clause (ii), for fiscal year 2005 or 2006, clause (ii)
shall be applied by substituting `9.5 percent' for
`10.5 percent'.
``(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 process
required by section 615(e), including providing for the
cost of mediators and support personnel.
``(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 appropriate 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 use of technology, including
technology with universal design principles and assistive
technology devices, to maximize accessibility to the
general education curriculum for children with
disabilities.
``(vi) Development and implementation of transition
programs, including coordination of services with agencies
involved in supporting the transition of children with
disabilities to postsecondary 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 with
disabilities who have been expelled from school, and
services for children with disabilities in correctional
facilities, children enrolled in State-operated or State-
supported schools, and children with disabilities 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.
``(xi) To provide technical assistance to schools and
local educational agencies, and direct services, including
supplemental educational services as defined in 1116(e) of
the Elementary and Secondary Education Act of 1965 to
children with disabilities, in schools or local educational
agencies identified for improvement under section 1116 of
the Elementary and Secondary Education Act of 1965 on the
sole basis of the assessment results of the disaggregated
subgroup of children with disabilities, including providing
professional development to special and regular education
teachers, who teach children with disabilities, based on
scientifically based research to improve educational
instruction, in order to improve academic achievement to
meet or exceed the objectives established by the State
under section 1111(b)(2)(G) the Elementary and Secondary
Education Act of 1965.
``(3) Local educational agency risk pool.--
``(A) In general.--
``(i) Reservation of funds.--For the purpose of
assisting local educational agencies (including a charter
school that is a local educational agency or a consortium
of local educational agencies) in addressing the needs of
high need children with disabilities, each State shall have
the option to reserve for each fiscal year 10 percent of
the amount of funds the State reserves for State-level
activities under paragraph (2)(A)--
``(I) to establish and make disbursements from the
high cost fund to local educational agencies in
accordance with this paragraph during the first and
succeeding fiscal years of the high cost fund; and
``(II) to support innovative and effective ways of
cost sharing by the State, by a local educational
agency, or among a consortium of local educational
agencies, as determined by the State in coordination
with representatives from local educational agencies,
subject to subparagraph (B)(ii).
``(ii) Definition of local educational agency.--In this
paragraph the term `local educational agency' includes a
charter school that is a local educational agency, or a
consortium of local educational agencies.
``(B) Limitation on uses of funds.--
``(i) Establishment of high cost fund.--A State shall
not use any of the funds the State reserves pursuant to
subparagraph (A)(i), but may use the funds the State
reserves under paragraph (1), to establish and support the
high cost fund.
``(ii) Innovative and effective cost sharing.--A State
shall not use more than 5 percent of the funds the State
reserves pursuant to subparagraph (A)(i) for each fiscal
year to support innovative and effective ways of cost
sharing among consortia of local educational agencies.
``(C) State plan for high cost fund.--
``(i) Definition.--The State educational agency shall
establish the State's definition of a high need child with
a disability, which definition shall be developed in
consultation with local educational agencies.
``(ii) State plan.--The State educational agency shall
develop, not later than 90 days after the State reserves
funds under this paragraph, annually review, and amend as
necessary, a State plan for the high cost fund. Such State
plan shall--
``(I) establish, in coordination with
representatives from local educational agencies, a
definition of a high need child with a disability that,
at a minimum--
``(aa) addresses the financial impact a high
need child with a disability has on the budget of
the child's local educational agency; and
``(bb) ensures that the cost of the high need
child with a disability is greater than 3 times the
average per pupil expenditure (as defined in
section 9101 of the Elementary and Secondary
Education Act of 1965) in that State;
``(II) establish eligibility criteria for the
participation of a local educational agency that, at a
minimum, takes into account the number and percentage
of high need children with disabilities served by a
local educational agency;
``(III) develop a funding mechanism that provides
distributions each fiscal year to local educational
agencies that meet the criteria developed by the State
under subclause (II); and
``(IV) establish an annual schedule by which the
State educational agency shall make its distributions
from the high cost fund each fiscal year.
``(iii) Public availability.--The State shall make its
final State plan publicly available not less than 30 days
before the beginning of the school year, including
dissemination of such information on the State website.
``(D) Disbursements from the high cost fund.--
``(i) In general.--Each State educational agency shall
make all annual disbursements from the high cost fund
established under subparagraph (A)(i) in accordance with
the State plan published pursuant to subparagraph (C).
``(ii) Use of disbursements.--Each State educational
agency shall make annual disbursements to eligible local
educational agencies in accordance with its State plan
under subparagraph (C)(ii).
``(iii) Appropriate costs.--The costs associated with
educating a high need child with a disability under
subparagraph (C)(i) are only those costs associated with
providing direct special education and related services to
such child that are identified in such child's 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 a child
with a disability to ensure a free appropriate public education
for such child.
``(F) Assurance of a free appropriate public education.--
Nothing in this paragraph 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 the least restrictive environment pursuant to
section 612(a)(5); or
``(ii) to authorize a State educational agency or local
educational agency to establish a limit on what may be
spent on the education of a child with a disability.
``(G) Special rule for risk pool and high need assistance
programs in effect as of january 1, 2004.--Notwithstanding the
provisions of subparagraphs (A) through (F), a State may use
funds reserved pursuant to this paragraph for implementing a
placement neutral cost sharing and reimbursement program of
high need, low incidence, catastrophic, or extraordinary aid to
local educational agencies that provides services to high need
students based on eligibility criteria for such programs that
were created not later than January 1, 2004, and are currently
in operation, if such program serves children that meet the
requirement of the definition of a high need child with a
disability as described in subparagraph (C)(ii)(I).
``(H) Medicaid services not affected.--Disbursements
provided under this paragraph shall not be used to pay costs
that otherwise would be reimbursed as medical assistance for a
child with a disability under the State medicaid program under
title XIX of the Social Security Act.
``(I) Remaining funds.--Funds reserved under subparagraph
(A) in any fiscal year but not expended in that fiscal year
pursuant to subparagraph (D) shall be allocated to local
educational agencies for the succeeding fiscal year in the same
manner as funds are allocated to local educational agencies
under subsection (f) for the succeeding fiscal year.
``(4) Inapplicability of certain prohibitions.--A State may use
funds the State reserves under paragraphs (1) and (2) 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 title;
and
``(B) will be allocated among the activities described in
this section to meet State priorities based on input from local
educational agencies.
``(6) Special rule for increased funds.--A State may use funds
the State reserves under paragraph (1)(A) as a result of
inflationary increases under paragraph (1)(B) to carry out
activities authorized under clause (i), (iii), (vii), or (viii) of
paragraph (2)(C).
``(7) 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 preliteracy, 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, or elementary school as
appropriate.
``(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.--For each fiscal year for which funds are allocated to
States under subsection (d), each State shall allocate funds under
paragraph (1) as follows:
``(A) 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.
``(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.
``(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.--In this section:
``(1) Average per-pupil expenditure in public elementary
schools and secondary schools in the united states.--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 agencies; divided by
``(B) the aggregate number of children in average daily
attendance to whom those agencies provided free public
education during that preceding year.
``(2) State.--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 to 21, inclusive, 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 (b)(2) for that fiscal year.
Of the amount described in the preceding sentence--
``(i) 80 percent shall be allocated to such schools by
July 1 of that fiscal year; and
``(ii) 20 percent shall be allocated to such schools by
September 30 of that fiscal year.
``(B) Calculation of number of children.--In the case of
Indian students aged 3 to 5, inclusive, who are enrolled in
programs affiliated with the Bureau of Indian Affairs (referred
to in this subsection as the `BIA') schools and that are
required by the States in which such schools are located to
attain or maintain State accreditation, and which schools have
such accreditation prior to the date of enactment of the
Individuals with Disabilities Education Act Amendments of 1991,
the school shall be allowed to count those children for the
purpose of distribution of the funds provided under this
paragraph to the Secretary of the Interior. The Secretary of
the Interior shall be responsible for meeting all of the
requirements of this part for those children, in accordance
with paragraph (2).
``(C) Additional requirement.--With respect to all other
children aged 3 to 21, inclusive, on reservations, the State
educational agency shall be responsible for ensuring that all
of the requirements of this part are implemented.
``(2) Submission of information.--The Secretary of Education
may provide the Secretary of the Interior amounts under paragraph
(1) for a fiscal year only if the Secretary of the Interior submits
to the Secretary of Education information that--
``(A) demonstrates that the Department of the Interior
meets the appropriate requirements, as determined by the
Secretary of Education, of sections 612 (including monitoring
and evaluation activities) and 613;
``(B) includes a description of how the Secretary of the
Interior will coordinate the provision of services under this
part with local educational agencies, tribes and tribal
organizations, and other private and Federal service providers;
``(C) includes an assurance that there are public hearings,
adequate notice of such hearings, and an opportunity for
comment afforded to members of tribes, tribal governing bodies,
and affected local school boards before the adoption of the
policies, programs, and procedures related to the requirements
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 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.--The Secretary shall withhold payments
under this subsection with respect to the information described in
paragraph (2) in the same manner as the Secretary withholds
payments under section 616(e)(6).
``(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
tribes or tribal organizations 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 (b)(2).
``(B) Distribution of funds.--The Secretary of the Interior
shall distribute the total amount of the payment under
subparagraph (A) by allocating to each tribe, tribal
organization, or consortium an amount based on the number of
children with disabilities aged 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 tribe
or tribal organization 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 title. Such plan shall provide for
the coordination of services benefiting those 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 educational
agencies 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)(21), 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 of the Interior'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 early intervention services or
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; 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 title 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 for services under this title 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) through (c) 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)(9).
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 private school children) by the local
educational agency shall be equal to a proportionate
amount of Federal funds made available under this part.
``(II) In calculating the proportionate amount of
Federal funds, the local educational agency, after
timely and meaningful consultation with representatives
of private schools as described in clause (iii), shall
conduct a thorough and complete child find process to
determine the number of parentally placed children with
disabilities attending private schools located in the
local educational agency.
``(III) Such services to parentally placed private
school children with disabilities may be provided to
the children on the premises of private, including
religious, schools, to the extent consistent with law.
``(IV) State and local funds may supplement and in
no case shall supplant the proportionate amount of
Federal funds required to be expended under this
subparagraph.
``(V) Each local educational agency shall maintain
in its records and provide to the State educational
agency the number of children evaluated under this
subparagraph, the number of children determined to be
children with disabilities under this paragraph, and
the number of children served under this paragraph.
``(ii) Child find requirement.--
``(I) In general.--The requirements of paragraph
(3) (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.
``(II) Equitable participation.--The child find
process shall be designed to ensure the equitable
participation of parentally placed private school
children with disabilities 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 the agency's
public school children.
``(IV) Cost.--The cost of carrying out this clause,
including individual evaluations, may not be considered
in determining whether a local educational agency has
met its obligations under clause (i).
``(V) Completion period.--Such child find process
shall be completed in a time period comparable to that
for other students attending public schools in the
local educational agency.
``(iii) Consultation.--To ensure timely and meaningful
consultation, a local educational agency, or where
appropriate, a State educational agency, shall consult with
private school representatives and representatives of
parents of parentally placed private school children with
disabilities during the design and development of special
education and related services for the children, including
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
amount of Federal funds available to serve parentally
placed private school children with disabilities under
this subparagraph, including the determination of how
the amount was calculated;
``(III) the consultation process among the local
educational agency, private school officials, and
representatives of parents of parentally placed private
school children with disabilities, including how such
process will operate throughout the school year to
ensure that parentally placed private school 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 with disabilities,
including a discussion of types of services, including
direct services and 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 or the types of
services, whether provided directly or 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 directly or through a contract.
``(iv) Written affirmation.--When timely and meaningful
consultation as required by clause (iii) has occurred, the
local educational agency shall obtain a written affirmation
signed by the representatives of participating private
schools, and if such representatives 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 submit a complaint 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 submit a complaint, the official shall
provide the basis of the noncompliance with this
subparagraph 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 submit a
complaint to the Secretary by providing the basis of
the noncompliance with this subparagraph 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) Directly or through contracts.--The provision
of services pursuant to this subparagraph shall be
provided--
``(aa) by employees of a public agency; or
``(bb) through contract by the public agency
with an individual, association, agency,
organization, or other entity.
``(II) Secular, neutral, nonideological.--Special
education and related services provided to parentally
placed private school children with disabilities,
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 subparagraph, 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
title, 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 educational agencies 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 item (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;
``(bb) the parents had not received notice,
pursuant to section 615, of the notice requirement
in clause (iii)(I); or
``(cc) compliance with clause (iii)(I) would
likely result in physical harm to the child; 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 or cannot write
in English; or
``(bb) compliance with clause (iii)(I) would
likely result in 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;
``(ii) all educational programs for children with
disabilities in the State, including all such programs
administered by any other State agency 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; and
``(iii) in carrying out this part with respect to
homeless children, the requirements of subtitle B of title
VII of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11431 et seq.) are met.
``(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(26) relating to related services, 602(33)
relating to supplementary aids and services, and 602(34)
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 qualifications.--
``(A) In general.--The State educational agency has
established and maintains qualifications 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 qualifications under subparagraph (A) include
qualifications 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) Qualifications for special education teachers.--The
qualifications described in subparagraph (A) shall ensure that
each person employed as a special education teacher in the
State who teaches elementary school, middle school, or
secondary school is highly qualified by the deadline
established in section 1119(a)(2) of the Elementary and
Secondary Education Act of 1965.
``(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 paragraph 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 title, 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 dropout 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), which may include elements of the reports
required under section 1111(h) of the Elementary and Secondary
Education Act of 1965.
``(16) Participation in assessments.--
``(A) In general.--All children with disabilities are
included in all general State and districtwide assessment
programs, including assessments described under section 1111 of
the Elementary and Secondary Education Act of 1965, with
appropriate accommodations and 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 (A) with accommodations 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 standards and challenging student
academic achievement standards; and
``(II) if the State has adopted alternate academic
achievement standards permitted under the regulations
promulgated to carry out 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 alternate 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) Rule of construction.--In complying with paragraphs (17)
and (18), a State may not use funds paid to it under this part to
satisfy State-law mandated funding obligations to local educational
agencies, including funding based on student attendance or
enrollment, or inflation.
``(21) 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, be
representative of the State population, and be 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);
``(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 (42
U.S.C. 11431 et seq.);
``(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) not less than 1 representative of a vocational,
community, or business organization concerned with the
provision of transition services to children with
disabilities;
``(x) a representative from the State child welfare
agency responsible for foster care; and
``(xi) representatives from the State juvenile and
adult corrections agencies.
``(C) Special rule.--A majority of the members of the panel
shall be individuals with disabilities or parents of children
with disabilities (ages birth through 26).
``(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.
``(22) Suspension and expulsion rates.--
``(A) In general.--The State educational agency examines
data, including data disaggregated by race and ethnicity, 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 positive behavioral
interventions and supports, and procedural safeguards, to
ensure that such policies, procedures, and practices comply
with this title.
``(23) Access to instructional materials.--
``(A) In general.--The State adopts the National
Instructional Materials Accessibility Standard 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 National Instructional Materials
Accessibility Standard in the Federal Register.
``(B) Rights of state educational agency.--Nothing in this
paragraph shall be construed to require any State educational
agency to coordinate with the National Instructional Materials
Access Center. If a State educational agency chooses not to
coordinate with the National Instructional Materials Access
Center, such agency shall provide an assurance to the Secretary
that the agency will provide instructional materials to blind
persons or other persons with print disabilities in a timely
manner.
``(C) Preparation and delivery of files.--If a State
educational agency chooses to coordinate with the National
Instructional Materials Access Center, not later than 2 years
after the date of enactment of the Individuals with
Disabilities Education Improvement Act of 2004, the agency, as
part of any print instructional materials adoption process,
procurement contract, or other practice or instrument used for
purchase of print instructional materials, shall enter into a
written contract with the publisher of the print instructional
materials to--
``(i) require the publisher to prepare and, on or
before delivery of the print instructional materials,
provide to the National Instructional Materials Access
Center electronic files containing the contents of the
print instructional materials using the National
Instructional Materials Accessibility Standard; or
``(ii) purchase instructional materials from the
publisher that are produced in, or may be rendered in,
specialized formats.
``(D) Assistive technology.--In carrying out this
paragraph, the State educational agency, to the maximum extent
possible, shall work collaboratively with the State agency
responsible for assistive technology programs.
``(E) Definitions.--In this paragraph:
``(i) National instructional materials access center.--
The term `National Instructional Materials Access Center'
means the center established pursuant to section 674(e).
``(ii) National instructional materials accessibility
standard.--The term `National Instructional Materials
Accessibility Standard' has the meaning given the term in
section 674(e)(3)(A).
``(iii) Specialized formats.--The term `specialized
formats' has the meaning given the term in section
674(e)(3)(D).
``(24) Overidentification and disproportionality.--The State
has in effect, consistent with the purposes of this title and with
section 618(d), policies and procedures designed to prevent the
inappropriate overidentification or disproportionate representation
by race and ethnicity of children as children with disabilities,
including children with disabilities with a particular impairment
described in section 602.
``(25) Prohibition on mandatory medication.--
``(A) In general.--The State educational agency shall
prohibit State and local educational agency personnel from
requiring a child to obtain a prescription for a substance
covered by the Controlled Substances Act (21 U.S.C. 801 et
seq.) as a condition of attending school, receiving an
evaluation under subsection (a) or (c) of section 614, or
receiving services under this title.
``(B) Rule of construction.--Nothing in subparagraph (A)
shall be construed to create a Federal prohibition against
teachers and other school personnel consulting or sharing
classroom-based observations with parents or guardians
regarding a student's academic and functional performance, or
behavior in the classroom or school, or regarding the need for
evaluation for special education or related services under
paragraph (3).
``(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 title are amended
(or the regulations developed to carry out this title are amended),
there is a new interpretation of this title 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 that 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 not less
than 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) Adjustment to local fiscal effort in certain fiscal
years.--
``(i) Amounts in excess.--Notwithstanding clauses (ii)
and (iii) of subparagraph (A), for any fiscal year for
which the allocation received by a local educational agency
under section 611(f) exceeds the amount the local
educational agency received for the previous fiscal year,
the local educational agency may reduce the level of
expenditures otherwise required by subparagraph (A)(iii) by
not more than 50 percent of the amount of such excess.
``(ii) Use of amounts to carry out activities under
esea.--If a local educational agency exercises the
authority under clause (i), the agency shall use an amount
of local funds equal to the reduction in expenditures under
clause (i) to carry out activities authorized under the
Elementary and Secondary Education Act of 1965.
``(iii) State prohibition.--Notwithstanding clause (i),
if a State educational agency determines that a local
educational agency is unable to establish and maintain
programs of free appropriate public education that meet the
requirements of subsection (a) or the State educational
agency has taken action against the local educational
agency under section 616, the State educational agency
shall prohibit the local educational agency from reducing
the level of expenditures under clause (i) for that fiscal
year.
``(iv) Special rule.--The amount of funds expended by a
local educational agency under subsection (f) shall count
toward the maximum amount of expenditures such local
educational agency may reduce under clause (i).
``(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, subject to the
requirements of section 612(a)(14) 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).
``(iii) High cost education and related services.--To
establish and implement cost or risk sharing funds,
consortia, or cooperatives for the local educational agency
itself, or for local educational agencies working in a
consortium of which the local educational agency is a part,
to pay for high cost special education and related
services.
``(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--
``(i) on the same basis as the local educational agency
provides funds to the local educational agency's other
public schools, including proportional distribution based
on relative enrollment of children with disabilities; and
``(ii) at the same time as the agency distributes other
Federal funds to the agency's other public schools,
consistent with the State's charter school law.
``(6) Purchase of instructional materials.--
``(A) In general.--Not later than 2 years after the date of
enactment of the Individuals with Disabilities Education
Improvement Act of 2004, a local educational agency that
chooses to coordinate with the National Instructional Materials
Access Center, when purchasing print instructional materials,
shall acquire the print instructional materials in the same
manner and subject to the same conditions as a State
educational agency acquires print instructional materials under
section 612(a)(23).
``(B) Rights of local educational agency.--Nothing in this
paragraph shall be construed to require a local educational
agency to coordinate with the National Instructional Materials
Access Center. If a local educational agency chooses not to
coordinate with the National Instructional Materials Access
Center, the local educational agency shall provide an assurance
to the State educational agency that the local educational
agency will provide instructional materials to blind persons or
other persons with print disabilities in a timely manner.
``(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 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 title are
amended (or the regulations developed to carry out this title are
amended), there is a new interpretation of this title 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 reduced by the agency 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 have not been
identified as needing special education or related services 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 instruction and behavioral
interventions, including scientifically based literacy
instruction, and, where appropriate, instruction on the use of
adaptive and instructional software; and
``(B) providing educational and behavioral evaluations,
services, and supports, including scientifically based literacy
instruction.
``(3) Construction.--Nothing in this subsection shall be
construed to 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 under this
subsection shall annually report to the State educational agency
on--
``(A) the number of students served under this subsection;
and
``(B) the number of students served under this subsection
who subsequently receive special education and related services
under this title during the preceding 2-year period.
``(5) Coordination with 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.
``(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 local educational agency or State
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 educational
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) Adjustment to state fiscal effort in certain fiscal
years.--For any fiscal year for which the allotment received by a
State under section 611 exceeds the amount the State received for
the previous fiscal year and if the State in school year 2003-2004
or any subsequent school year pays or reimburses all local
educational agencies within the State from State revenue 100
percent of the non-Federal share of the costs of special education
and related services, the State educational agency, notwithstanding
paragraphs (17) and (18) of section 612(a) and section 612(b), may
reduce the level of expenditures from State sources for the
education of children with disabilities by not more than 50 percent
of the amount of such excess.
``(2) Prohibition.--Notwithstanding paragraph (1), 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, or that the
State needs assistance, intervention, or substantial intervention
under section 616(d)(2)(A), the Secretary shall prohibit the State
educational agency from exercising the authority in paragraph (1).
``(3) Education activities.--If a State educational agency
exercises the authority under paragraph (1), the agency shall use
funds from State sources, in an amount equal to the amount of the
reduction under paragraph (1), to support activities authorized
under the Elementary and Secondary Education Act of 1965 or to
support need based student or teacher higher education programs.
``(4) Report.--For each fiscal year for which a State
educational agency exercises the authority under paragraph (1), the
State educational agency shall report to the Secretary the amount
of expenditures reduced pursuant to such paragraph and the
activities that were funded pursuant to paragraph (3).
``(5) Limitation.--Notwithstanding paragraph (1), a State
educational agency may not reduce the level of expenditures
described in paragraph (1) if any local educational agency in the
State would, as a result of such reduction, receive less than 100
percent of the amount necessary to ensure that all children with
disabilities served by the local educational agency receive a free
appropriate public education from the combination of Federal funds
received under this title and State funds received from the State
educational agency.
``SEC. 614. EVALUATIONS, ELIGIBILITY DETERMINATIONS, INDIVIDUALIZED
EDUCATION PROGRAMS, AND EDUCATIONAL PLACEMENTS.
``(a) Evaluations, Parental Consent, 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.--
``(i) In general.--Such initial evaluation shall
consist of procedures--
``(I) to determine whether a child is a child with
a disability (as defined in section 602) within 60 days
of receiving parental consent for the evaluation, or,
if the State establishes a timeframe within which the
evaluation must be conducted, within such timeframe;
and
``(II) to determine the educational needs of such
child.
``(ii) Exception.--The relevant timeframe in clause
(i)(I) shall not apply to a local educational agency if--
``(I) a child enrolls in a school served by the
local educational agency after the relevant timeframe
in clause (i)(I) has begun and prior to a determination
by the child's previous local educational agency as to
whether the child is a child with a disability (as
defined in section 602), but only if the subsequent
local educational agency is making sufficient progress
to ensure a prompt completion of the evaluation, and
the parent and subsequent local educational agency
agree to a specific time when the evaluation will be
completed; or
``(II) the parent of a child repeatedly fails or
refuses to produce the child for the evaluation.
``(D) Parental consent.--
``(i) In general.--
``(I) Consent for initial evaluation.--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 shall obtain informed consent
from the parent of such child before conducting the
evaluation. Parental consent for evaluation shall not
be construed as consent for placement for receipt of
special education and related services.
``(II) Consent for services.--An agency that is
responsible for making a free appropriate public
education available to a child with a disability under
this part shall seek to obtain informed consent from
the parent of such child before providing special
education and related services to the child.
``(ii) Absence of consent.--
``(I) For initial evaluation.--If the parent of
such child does not provide consent for an initial
evaluation under clause (i)(I), or the parent fails to
respond to a request to provide the consent, the local
educational agency may pursue the initial evaluation of
the child by utilizing the procedures described in
section 615, except to the extent inconsistent with
State law relating to such parental consent.
``(II) For services.--If the parent of such child
refuses to consent to services under clause (i)(II),
the local educational agency shall not provide special
education and related services to the child by
utilizing the procedures described in section 615.
``(III) Effect on agency obligations.--If the
parent of such child refuses to consent to the receipt
of special education and related services, or the
parent fails to respond to a request to provide such
consent--
``(aa) 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
such child with the special education and related
services for which the local educational agency
requests such consent; and
``(bb) the local educational agency shall not
be required to convene an IEP meeting or develop an
IEP under this section for the child for the
special education and related services for which
the local educational agency requests such consent.
``(iii) Consent for wards of the state.--
``(I) In general.--If the child is a ward of the
State and is not residing with the child's parent, the
agency shall make reasonable efforts to obtain the
informed consent from the parent (as defined in section
602) of the child for an initial evaluation to
determine whether the child is a child with a
disability.
``(II) Exception.--The agency shall not be required
to obtain informed consent from the parent of a child
for an initial evaluation to determine whether the
child is a child with a disability if--
``(aa) despite reasonable efforts to do so, the
agency cannot discover the whereabouts of the
parent of the child;
``(bb) the rights of the parents of the child
have been terminated in accordance with State law;
or
``(cc) the rights of the parent to make
educational decisions have been subrogated by a
judge in accordance with State law and consent for
an initial evaluation has been given by an
individual appointed by the judge to represent the
child.
``(E) Rule of construction.--The screening of a student by
a teacher or specialist to determine appropriate instructional
strategies for curriculum implementation shall not be
considered to be an evaluation for eligibility for special
education and related services.
``(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 frequently 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 education curriculum, or, for preschool children,
to participate in appropriate activities;
``(B) not use any single 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) assessments 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 assessments;
``(B) the child is assessed in all areas of suspected
disability;
``(C) assessment tools and strategies that provide relevant
information that directly assists persons in determining the
educational needs of the child are provided; and
``(D) assessments of children with disabilities who
transfer from 1 school district to another school district in
the same academic year are coordinated with such children's
prior and subsequent schools, as necessary and as expeditiously
as possible, to ensure prompt completion of full evaluations.
``(4) Determination of eligibility and educational need.--Upon
completion of the administration of assessments and other
evaluation measures--
``(A) the determination of whether the child is a child
with a disability as defined in section 602(3) and the
educational needs of the child 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 appropriate instruction in reading, including
in the essential components of reading instruction (as defined
in section 1208(3) of the Elementary and Secondary Education
Act of 1965);
``(B) lack of instruction in math; 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, 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 and other qualified professionals,
as appropriate, shall--
``(A) review existing evaluation data on the child,
including--
``(i) evaluations and information provided by the
parents of the child;
``(ii) current classroom-based, local, or State
assessments, and classroom-based observations; and
``(iii) observations by teachers and related services
providers; 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 is a child with a disability as
defined in section 602(3), and the educational needs of the
child, or, in case of a reevaluation of a child, whether
the child continues to have such a disability and such
educational needs;
``(ii) the present levels of academic achievement and
related developmental 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 education
curriculum.
``(2) Source of data.--The local educational agency shall
administer such assessments and other evaluation measures 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 it
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 continues to be a child with a disability and to
determine the child's educational needs, 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 continues to be a
child with a disability and to determine the child's
educational needs; and
``(B) shall not be required to conduct such an assessment
unless requested to 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
due 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.--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
education curriculum;
``(bb) for preschool children, as appropriate,
how the disability affects the child's
participation in appropriate activities; and
``(cc) for children with disabilities who take
alternate assessments aligned to alternate
achievement standards, a description of benchmarks
or short-term objectives;
``(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
education 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,
based on peer-reviewed research to the extent
practicable, 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 education 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
subparagraph;
``(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 16, 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 to assist the child in
reaching those goals; and
``(cc) beginning not later than 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) not less than 1 regular education teacher of
such child (if the child is, or may be, participating in
the regular education environment);
``(iii) not less than 1 special education teacher, or
where appropriate, not less than 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 education
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.
``(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 the parent of a child with a
disability and the local educational agency agree that the
attendance of such member is not necessary because the
member's area of the curriculum or related services is not
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) the parent and the local educational agency
consent to the excusal; and
``(II) the member submits, in writing to the parent
and the IEP Team, 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.
``(D) IEP team transition.--In the case of a child who was
previously served under part C, an invitation to the initial
IEP meeting shall, at the request of the parent, be sent to the
part C service coordinator or other representatives of the part
C system to assist with the smooth transition of services.
``(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 the agency's 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), the IEP
Team shall consider the individualized family service plan that
contains the material described in section 636, and that is
developed in accordance with this section, and the
individualized family service plan 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.--
``(I) Transfer within the same state.--In the case
of a child with a disability 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 State, the local educational agency shall
provide such child with a free appropriate public
education, including services comparable to those
described in the previously held IEP, in consultation
with the parents until such time as the local
educational agency adopts the previously held IEP or
develops, adopts, and implements a new IEP that is
consistent with Federal and State law.
``(II) Transfer outside state.--In the case of a
child with a disability 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
another State, the local educational agency shall
provide such child with a free appropriate public
education, including services comparable to those
described in the previously held IEP, in consultation
with the parents until such time as the local
educational agency conducts an evaluation pursuant to
subsection (a)(1), if determined to be necessary by
such agency, and develops a new IEP, if appropriate,
that is consistent with Federal and State law.
``(ii) Transmittal of records.--To facilitate the
transition for a child described in clause (i)--
``(I) the new school in which the child enrolls
shall take reasonable steps to promptly obtain the
child's records, including the IEP and supporting
documents and any other records relating to the
provision of special education or related services to
the child, from the previous school in which the child
was enrolled, pursuant to section 99.31(a)(2) of title
34, Code of Federal Regulations; and
``(II) the previous school in which the child was
enrolled shall take reasonable steps to promptly
respond to such request from the new school.
``(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, consider the use of
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, 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;
``(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 needs 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 reevaluation meetings for the child and other
IEP Team meetings for the child.
``(F) Amendments.--Changes to the IEP may be made either by
the entire IEP Team or, as provided in subparagraph (D), by
amending the IEP rather than by redrafting the entire IEP. Upon
request, a parent shall be provided with a revised copy of the
IEP with the amendments incorporated.
``(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 frequently than annually, to determine whether the
annual goals for the child are being achieved; and
``(ii) revises the IEP as appropriate to address--
``(I) any lack of expected progress toward the
annual goals and in the general education 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) Multi-year iep demonstration.--
``(A) Pilot program.--
``(i) Purpose.--The purpose of this paragraph is to
provide an opportunity for States to allow parents and
local educational agencies the opportunity for long-term
planning by offering the option of developing a
comprehensive multi-year IEP, not to exceed 3 years, that
is designed to coincide with the natural transition points
for the child.
``(ii) Authorization.--In order to carry out the
purpose of this paragraph, the Secretary is authorized to
approve not more than 15 proposals from States to carry out
the activity described in clause (i).
``(iii) Proposal.--
``(I) In general.--A State desiring to participate
in the program under this paragraph 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--
``(aa) assurances that the development of a
multi-year IEP under this paragraph is optional for
parents;
``(bb) assurances that the parent is required
to provide informed consent before a comprehensive
multi-year IEP is developed;
``(cc) a list of required elements for each
multi-year IEP, including--
``(AA) measurable goals pursuant to
paragraph (1)(A)(i)(II), coinciding with
natural transition points for the child, that
will enable the child to be involved in and
make progress in the general education
curriculum and that will meet the child's other
needs that result from the child's disability;
and
``(BB) measurable annual goals for
determining progress toward meeting the goals
described in subitem (AA); and
``(dd) a description of the process for the
review and revision of each multi-year IEP,
including--
``(AA) a review by the IEP Team of the
child's multi-year IEP at each of the child's
natural transition points;
``(BB) in years other than a child's
natural transition points, an annual review of
the child's IEP to determine the child's
current levels of progress and whether the
annual goals for the child are being achieved,
and a requirement to amend the IEP, as
appropriate, to enable the child to continue to
meet the measurable goals set out in the IEP;
``(CC) if the IEP Team determines on the
basis of a review that the child is not making
sufficient progress toward the goals described
in the multi-year IEP, a requirement that the
local educational agency shall ensure that the
IEP Team carries out a more thorough review of
the IEP in accordance with paragraph (4) within
30 calendar days; and
``(DD) at the request of the parent, a
requirement that the IEP Team shall conduct a
review of the child's multi-year IEP rather
than or subsequent to an annual review.
``(B) Report.--Beginning 2 years after the date of
enactment of the Individuals with Disabilities Education
Improvement Act of 2004, the Secretary shall submit an annual
report to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate regarding the
effectiveness of the program under this paragraph and any
specific recommendations for broader implementation of such
program, including--
``(i) 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;
``(ii) enhancing longer-term educational planning;
``(iii) improving positive outcomes for children with
disabilities;
``(iv) promoting collaboration between IEP Team
members; and
``(v) ensuring satisfaction of family members.
``(C) Definition.--In this paragraph, the term `natural
transition points' means those periods that are close in time
to the transition of a child with a disability from preschool
to elementary grades, from elementary grades to middle or
junior high school grades, from middle or junior high school
grades to secondary school grades, and from secondary school
grades to post-secondary activities, but in no case a period
longer than 3 years.
``(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 the IEP.
``(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)(VI) (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 such children's age, before such children 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 paragraph (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.
``(f) Alternative Means of Meeting Participation.--When conducting
IEP team meetings and placement meetings pursuant to this section,
section 615(e), and section 615(f)(1)(B), and carrying out
administrative matters under section 615 (such as scheduling, exchange
of witness lists, and status conferences), 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 and their
parents are guaranteed procedural safeguards with respect to the
provision of a free appropriate public education by such agencies.
``(b) Types of Procedures.--The procedures required by this section
shall include the following:
``(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)(A) Procedures to protect the rights of the child whenever
the parents of the child are not known, the agency cannot, after
reasonable efforts, locate the parents, or the child is a ward of
the State, including the assignment of an individual to act as a
surrogate for the parents, which surrogate 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. In the case of--
``(i) a child who is a ward of the State, such surrogate
may alternatively be appointed by the judge overseeing the
child's care provided that the surrogate meets the requirements
of this paragraph; and
``(ii) an unaccompanied homeless youth as defined in
section 725(6) of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11434a(6)), the local educational agency shall
appoint a surrogate in accordance with this paragraph.
``(B) The State shall make reasonable efforts to ensure the
assignment of a surrogate not more than 30 days after there is a
determination by the agency that the child needs a surrogate.
``(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 any party to present a complaint--
``(A) 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; and
``(B) which sets forth an alleged violation that occurred
not more than 2 years before 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 presenting such a complaint under
this part, in such time as the State law allows, except that
the exceptions to the timeline described in subsection
(f)(3)(D) shall apply to the timeline described in this
subparagraph.
``(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.
``(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) 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.
``(c) Notification Requirements.--
``(1) Content of prior written notice.--The notice 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 and a description of each evaluation
procedure, assessment, record, or report the agency used as a
basis for the proposed or refused action;
``(C) 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;
``(D) sources for parents to contact to obtain assistance
in understanding the provisions of this part;
``(E) a description of other options considered by the IEP
Team and the reason why those options were rejected; and
``(F) a description of the factors that are relevant to the
agency's proposal or refusal.
``(2) Due process complaint notice.--
``(A) Complaint.--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 subsection
(b)(7)(A).
``(B) Response to complaint.--
``(i) Local educational agency response.--
``(I) In general.--If the local educational agency
has not sent a prior written notice to the parent
regarding the subject matter contained in the parent's
due process complaint notice, such local educational
agency shall, within 10 days of receiving the
complaint, send to the parent a response that shall
include--
``(aa) an explanation of why the agency
proposed or refused to take the action raised in
the complaint;
``(bb) a description of other options that the
IEP Team considered and the reasons why those
options were rejected;
``(cc) a description of each evaluation
procedure, assessment, record, or report the agency
used as the basis for the proposed or refused
action; and
``(dd) a description of the factors that are
relevant to the agency's proposal or refusal.
``(II) Sufficiency.--A response filed by a local
educational agency pursuant to subclause (I) shall not
be construed to preclude such local educational agency
from asserting that the parent's due process complaint
notice was insufficient where appropriate.
``(ii) Other party response.--Except as provided in
clause (i), the non-complaining party shall, within 10 days
of receiving the complaint, send to the complaint a
response that specifically addresses the issues raised in
the complaint.
``(C) Timing.--The party providing a hearing officer
notification under subparagraph (A) shall provide the
notification within 15 days of receiving the complaint.
``(D) Determination.--Within 5 days of receipt of the
notification provided under subparagraph (C), 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 the parties in writing
of such determination.
``(E) Amended complaint notice.--
``(i) In general.--A party may amend its due process
complaint notice only if--
``(I) the other party 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,
except that the hearing officer may only grant such
permission at any time not later than 5 days 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, including
the timeline under subsection (f)(1)(B).
``(d) Procedural Safeguards Notice.--
``(1) In general.--
``(A) Copy to parents.--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--
``(i) upon initial referral or parental request for
evaluation;
``(ii) upon the first occurrence of the filing of a
complaint under subsection (b)(6); and
``(iii) upon request by a parent.
``(B) Internet website.--A local educational agency may
place a current copy of the procedural safeguards notice on its
Internet website if such website exists.
``(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) attorneys' 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 that 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 agreement.--In the case that a resolution is
reached to resolve the complaint through the mediation process,
the parties shall execute a legally binding agreement that sets
forth such resolution and that--
``(i) states that all discussions that occurred during
the mediation process shall be confidential and may not be
used as evidence in any subsequent due process hearing or
civil proceeding;
``(ii) is signed by both the parent and a
representative of the agency who has the authority to bind
such agency; and
``(iii) 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 hearing or civil
proceeding.
``(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) Resolution session.--
``(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 relevant member or members of the
IEP Team who have specific knowledge of the facts
identified in the complaint--
``(I) within 15 days of receiving notice of the
parents' complaint;
``(II) which shall include a representative of the
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 facts 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 30 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
a resolution is reached to resolve the complaint at a
meeting described in clause (i), the parties shall execute
a legally binding agreement that is--
``(I) signed by both the parent and a
representative of the agency who has the authority to
bind such agency; and
``(II) enforceable in any State court of competent
jurisdiction or in a district court of the United
States.
``(iv) Review period.--If the parties execute an
agreement pursuant to clause (iii), a party may void such
agreement within 3 business days of the agreement's
execution.
``(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 knowledge of, and the ability to
understand, the provisions of this title, Federal and State
regulations pertaining to this title, and legal
interpretations of this title by Federal and State 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) Timeline for requesting hearing.--A parent or agency
shall request an impartial due process hearing within 2 years
of the date the parent or 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.
``(D) Exceptions to the timeline.--The timeline described
in subparagraph (C) shall not apply to a parent if the parent
was prevented from requesting the hearing due to--
``(i) specific misrepresentations by the local
educational agency that it had resolved the problem forming
the basis of the complaint; or
``(ii) the local educational agency's withholding of
information from the parent that was required under this
part to be provided to the parent.
``(E) 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) impeded the child's right to a free
appropriate public education;
``(II) significantly impeded the parents'
opportunity to participate in the decisionmaking
process regarding the provision of a free appropriate
public education to the parents' child; or
``(III) caused a deprivation of educational
benefits.
``(iii) Rule of construction.--Nothing in this
subparagraph shall be construed to preclude a hearing
officer from ordering a local educational agency to comply
with procedural requirements under this section.
``(F) Rule of construction.--Nothing in this paragraph
shall be construed to affect the right of a parent to file a
complaint with the State educational agency.
``(g) Appeal.--
``(1) In general.--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.
``(2) Impartial review and independent decision.--The State
educational agency shall conduct an impartial review of the
findings and decision appealed under paragraph (1). 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 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)(21).
``(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 made 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 prevailing 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, to cause
unnecessary delay, or to needlessly increase the cost
of litigation.
``(ii) Rule of construction.--Nothing in this
subparagraph shall be construed to affect section 327 of
the District of Columbia Appropriations Act, 2005.
``(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.
``(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 the 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) Case-by-case determination.--School personnel may
consider any unique circumstances on a case-by-case basis when
determining whether to order a change in placement for a child
with a disability who violates a code of student conduct.
``(B) Authority.--School personnel under this subsection
may remove a child with a disability who violates a code of
student conduct from their current placement 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).
``(C) 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 (E), the relevant
disciplinary procedures applicable to children without
disabilities may be applied to the child in the same manner and
for the same duration in which the procedures would be applied
to children without disabilities, except as provided in section
612(a)(1) although it may be provided in an interim alternative
educational setting.
``(D) Services.--A child with a disability who is removed
from the child's current placement under subparagraph (G)
(irrespective of whether the behavior is determined to be a
manifestation of the child's disability) or subparagraph (C)
shall--
``(i) continue to receive educational services, as
provided in 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, as appropriate, a functional behavioral
assessment, behavioral intervention services and
modifications, that are designed to address the behavior
violation so that it does not recur.
``(E) Manifestation determination.--
``(i) In general.--Except as provided in subparagraph
(B), 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 local
educational agency, the parent, and relevant members of the
IEP Team (as determined by the parent and the local
educational agency) shall review all relevant information
in the student's file, including the child's IEP, any
teacher observations, and any relevant information provided
by the parents to determine--
``(I) if the conduct in question was caused by, or
had a direct and substantial relationship to, the
child's disability; or
``(II) if the conduct in question was the direct
result of the local educational agency's failure to
implement the IEP.
``(ii) Manifestation.--If the local educational agency,
the parent, and relevant members of the IEP Team determine
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.
``(F) Determination that behavior was a manifestation.--If
the local educational agency, the parent, and relevant members
of the IEP Team make the determination that the conduct was a
manifestation of the child's disability, the IEP Team shall--
``(i) conduct a functional behavioral assessment, and
implement a behavioral intervention plan for such child,
provided that the local educational agency had not
conducted such assessment prior to such determination
before the behavior that resulted in a change in placement
described in subparagraph (C) or (G);
``(ii) in the situation where a behavioral intervention
plan has been developed, review the behavioral intervention
plan if the child already has such a behavioral
intervention plan, and modify it, as necessary, to address
the behavior; and
``(iii) except as provided in subparagraph (G), return
the child to the placement from which the child was
removed, unless the parent and the local educational agency
agree to a change of placement as part of the modification
of the behavioral intervention plan.
``(G) Special circumstances.--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,
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;
``(ii) knowingly possesses or uses illegal drugs, or
sells or solicits the sale of a controlled substance, while
at school, on school premises, or at a school function
under the jurisdiction of a State or local educational
agency; or
``(iii) has inflicted serious bodily injury upon
another person while at school, on school premises, or at a
school function under the jurisdiction of a State or local
educational agency.
``(H) 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.
``(2) Determination of setting.--The interim alternative
educational setting in subparagraphs (C) and (G) of paragraph (1)
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 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.--A hearing officer shall hear, and
make a determination regarding, an appeal requested under
subparagraph (A).
``(ii) Change of placement order.--In making the
determination under clause (i), the hearing officer may
order a change in placement of a child with a disability.
In such situations, the hearing officer may--
``(I) return a child with a disability to the
placement from which the child was removed; or
``(II) 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 an appeal under paragraph
(3) has been requested by either the parent or the local
educational agency--
``(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)(C), 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 and shall result in a
determination within 10 school days after the hearing.
``(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 to supervisory or administrative personnel of the
appropriate educational agency, or a teacher of the child,
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(a)(1)(B);
or
``(iii) the teacher of the child, or other personnel of
the local educational agency, has expressed specific
concerns about a pattern of behavior demonstrated by the
child, directly to the director of special education of
such agency or to other supervisory personnel of the
agency.
``(C) Exception.--A local educational agency shall not be
deemed to have knowledge that the child is a child with a
disability if the parent of the child has not allowed an
evaluation of the child pursuant to section 614 or has refused
services under this part or the child has been evaluated and it
was determined that the child was not a child with a disability
under this part.
``(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 this
subsection, 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) Rule of 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.--In this subsection:
``(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, 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 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) Electronic mail.--A parent of a child with a disability may
elect to receive notices required under this section by an electronic
mail (e-mail) communication, if the agency makes such option available.
``(o) Separate Complaint.--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.
``SEC. 616. MONITORING, TECHNICAL ASSISTANCE, AND ENFORCEMENT.
``(a) Federal and State Monitoring.--
``(1) In general.--The Secretary shall--
``(A) monitor implementation of this part through--
``(i) oversight of the exercise of general supervision
by the States, as required in section 612(a)(11); and
``(ii) the State performance plans, described in
subsection (b);
``(B) enforce this part in accordance with subsection (e);
and
``(C) require States to--
``(i) monitor implementation of this part by local
educational agencies; and
``(ii) enforce this part in accordance with paragraph
(3) and subsection (e).
``(2) Focused monitoring.--The primary focus of Federal and
State monitoring activities described in paragraph (1) shall be
on--
``(A) improving educational results and functional outcomes
for all children with disabilities; and
``(B) ensuring that States meet the program requirements
under this part, 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 the
States, and shall require each State to monitor the local
educational agencies located in the State (except the State
exercise of general supervisory responsibility), using quantifiable
indicators in each of the following priority areas, and using such
qualitative indicators as are needed to adequately measure
performance in the following priority areas:
``(A) Provision of a free appropriate public education in
the least restrictive environment.
``(B) State exercise of general supervisory authority,
including child find, effective monitoring, the use of
resolution sessions, mediation, voluntary binding arbitration,
and a system of transition services as defined in sections
602(34) and 637(a)(9).
``(C) Disproportionate representation of racial and ethnic
groups in special education and related services, to the extent
the representation is the result of inappropriate
identification.
``(4) Permissive areas of review.--The Secretary shall consider
other relevant information and data, including data provided by
States under section 618.
``(b) State Performance Plans.--
``(1) Plan.--
``(A) In general.--Not later than 1 year after the date of
enactment of the Individuals with Disabilities Education
Improvement Act of 2004, each State shall have in place a
performance plan that evaluates that State's efforts to
implement the requirements and purposes of this part and
describes how the State will improve such implementation.
``(B) Submission for approval.--Each State shall submit the
State's performance plan to the Secretary for approval in
accordance with the approval process described in subsection
(c).
``(C) Review.--Each State shall review its State
performance plan at least once every 6 years and submit any
amendments to the Secretary.
``(2) Targets.--
``(A) In general.--As a part of the State performance plan
described under paragraph (1), each State shall establish
measurable and rigorous targets for the indicators established
under the priority areas described in subsection (a)(3).
``(B) Data collection.--
``(i) In general.--Each State shall collect valid and
reliable information as needed to report annually to the
Secretary on the priority areas described in subsection
(a)(3).
``(ii) Rule of construction.--Nothing in this title
shall be construed to authorize the development of a
nationwide database of personally identifiable information
on individuals involved in studies or other collections of
data under this part.
``(C) Public reporting and privacy.--
``(i) In general.--The State shall use the targets
established in the plan and priority areas described in
subsection (a)(3) to analyze the performance of each local
educational agency in the State in implementing this part.
``(ii) Report.--
``(I) Public report.--The State shall report
annually to the public on the performance of each local
educational agency located in the State on the targets
in the State's performance plan. The State shall make
the State's performance plan available through public
means, including by posting on the website of the State
educational agency, distribution to the media, and
distribution through public agencies.
``(II) State performance report.--The State shall
report annually to the Secretary on the performance of
the State under the State's performance plan.
``(iii) Privacy.--The State shall not report to the
public or the Secretary any information on performance that
would result in the disclosure of personally identifiable
information about individual children or where the
available data is insufficient to yield statistically
reliable information.
``(c) Approval Process.--
``(1) Deemed approval.--The Secretary shall review (including
the specific provisions described in subsection (b)) each
performance plan submitted by a State pursuant to subsection
(b)(1)(B) and the plan shall be deemed to be approved by the
Secretary unless the Secretary makes a written determination, prior
to the expiration of the 120-day period beginning on the date on
which the Secretary received the plan, that the plan does not meet
the requirements of this section, including the specific provisions
described in subsection (b).
``(2) Disapproval.--The Secretary shall not finally disapprove
a performance plan, except after giving the State notice and an
opportunity for a hearing.
``(3) Notification.--If the Secretary finds that the plan does
not meet the requirements, in whole or in part, of this section,
the Secretary shall--
``(A) give the State notice and an opportunity for a
hearing; and
``(B) notify the State of the finding, and in such
notification shall--
``(i) cite the specific provisions in the plan that do
not meet the requirements; and
``(ii) request additional information, only as to the
provisions not meeting the requirements, needed for the
plan to meet the requirements of this section.
``(4) Response.--If the State responds to the Secretary's
notification described in paragraph (3)(B) during the 30-day period
beginning on the date on which the State received the notification,
and resubmits the plan with the requested information described in
paragraph (3)(B)(ii), the Secretary shall approve or disapprove
such plan prior to the later of--
``(A) the expiration of the 30-day period beginning on the
date on which the plan is resubmitted; or
``(B) the expiration of the 120-day period described in
paragraph (1).
``(5) Failure to respond.--If the State does not respond to the
Secretary's notification described in paragraph (3)(B) during the
30-day period beginning on the date on which the State received the
notification, such plan shall be deemed to be disapproved.
``(d) Secretary's Review and Determination.--
``(1) Review.--The Secretary shall annually review the State
performance report submitted pursuant to subsection
(b)(2)(C)(ii)(II) in accordance with this section.
``(2) Determination.--
``(A) In general.--Based on the information provided by the
State in the State performance report, information obtained
through monitoring visits, and any other public information
made available, the Secretary shall determine if the State--
``(i) meets the requirements and purposes of this part;
``(ii) needs assistance in implementing the
requirements of this part;
``(iii) needs intervention in implementing the
requirements of this part; or
``(iv) needs substantial intervention in implementing
the requirements of this part.
``(B) Notice and opportunity for a hearing.--For
determinations made under clause (iii) or (iv) of subparagraph
(A), the Secretary shall provide reasonable notice and an
opportunity for a hearing on such determination.
``(e) Enforcement.--
``(1) Needs assistance.--If the Secretary determines, for 2
consecutive years, that a State needs assistance under subsection
(d)(2)(A)(ii) in implementing the requirements of this part, the
Secretary shall take 1 or more of the following actions:
``(A) Advise the State of available sources of technical
assistance that may help the State address the areas in which
the State needs assistance, which may include assistance from
the Office of Special Education Programs, other offices of the
Department of Education, other Federal agencies, technical
assistance providers approved by the Secretary, and other
federally funded nonprofit agencies, and require the State to
work with appropriate entities. Such technical assistance may
include--
``(i) the provision of advice by experts to address the
areas in which the State needs assistance, including
explicit plans for addressing the area for concern within a
specified period of time;
``(ii) assistance in identifying and implementing
professional development, instructional strategies, and
methods of instruction that are based on scientifically
based research;
``(iii) designating and using distinguished
superintendents, principals, special education
administrators, special education teachers, and other
teachers to provide advice, technical assistance, and
support; and
``(iv) devising additional approaches to providing
technical assistance, such as collaborating with
institutions of higher education, educational service
agencies, national centers of technical assistance
supported under part D, and private providers of
scientifically based technical assistance.
``(B) Direct the use of State-level funds under section
611(e) on the area or areas in which the State needs
assistance.
``(C) Identify the State as a high-risk grantee and impose
special conditions on the State's grant under this part.
``(2) Needs intervention.--If the Secretary determines, for 3
or more consecutive years, that a State needs intervention under
subsection (d)(2)(A)(iii) in implementing the requirements of this
part, the following shall apply:
``(A) The Secretary may take any of the actions described
in paragraph (1).
``(B) The Secretary shall take 1 or more of the following
actions:
``(i) Require the State to 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) 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.
``(iii) For each year of the determination, withhold
not less than 20 percent and not more than 50 percent of
the State's funds under section 611(e), until the Secretary
determines the State has sufficiently addressed the areas
in which the State needs intervention.
``(iv) Seek to recover funds under section 452 of the
General Education Provisions Act.
``(v) Withhold, in whole or in part, any further
payments to the State under this part pursuant to paragraph
(5).
``(vi) Refer the matter for appropriate enforcement
action, which may include referral to the Department of
Justice.
``(3) Needs substantial intervention.--Notwithstanding
paragraph (1) or (2), at any time that the Secretary determines
that a State needs substantial intervention in implementing the
requirements of this part or that there is a substantial failure to
comply with any condition of a State educational agency's or local
educational agency's eligibility under this part, the Secretary
shall take 1 or more of the following actions:
``(A) Recover funds under section 452 of the General
Education Provisions Act.
``(B) Withhold, in whole or in part, any further payments
to the State under this part.
``(C) Refer the case to the Office of the Inspector General
at the Department of Education.
``(D) Refer the matter for appropriate enforcement action,
which may include referral to the Department of Justice.
``(4) Opportunity for hearing.--
``(A) Withholding funds.--Prior to withholding any funds
under this section, the Secretary shall provide reasonable
notice and an opportunity for a hearing to the State
educational agency involved.
``(B) Suspension.--Pending the outcome of any hearing to
withhold payments under subsection (b), the Secretary may
suspend payments to a recipient, suspend the authority of the
recipient to obligate funds under this part, or both, after
such recipient has been given reasonable notice and an
opportunity to show cause why future payments or authority to
obligate funds under this part should not be suspended.
``(5) Report to congress.--The Secretary shall report to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor, and
Pensions of the Senate within 30 days of taking enforcement action
pursuant to paragraph (1), (2), or (3), on the specific action
taken and the reasons why enforcement action was taken.
``(6) Nature of withholding.--
``(A) Limitation.--If the Secretary withholds further
payments pursuant to paragraph (2) or (3), the Secretary may
determine--
``(i) that such withholding will be limited to programs
or projects, or portions of programs or projects, that
affected the Secretary's determination under subsection
(d)(2); or
``(ii) that the State educational agency shall not make
further payments under this part to specified State
agencies or local educational agencies that caused or were
involved in the Secretary's determination under subsection
(d)(2).
``(B) Withholding until rectified.--Until the Secretary is
satisfied that the condition that caused the initial
withholding has been substantially rectified--
``(i) payments to the State under this part shall be
withheld in whole or in part; and
``(ii) payments by the State educational agency under
this part shall be limited to State agencies and local
educational agencies whose actions did not cause or were
not involved in the Secretary's determination under
subsection (d)(2), as the case may be.
``(7) Public attention.--Any State that has received notice
under subsection (d)(2) 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 State.
``(8) Judicial review.--
``(A) In general.--If any State is dissatisfied with the
Secretary's 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 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 be conclusive if supported by
substantial evidence.
``(f) State Enforcement.--If a State educational agency determines
that a local educational agency is not meeting the requirements of this
part, including the targets in the State's performance plan, the State
educational agency shall prohibit the local educational agency from
reducing the local educational agency's maintenance of effort under
section 613(a)(2)(C) for any fiscal year.
``(g) Rule of Construction.--Nothing in this section shall be
construed to restrict the Secretary from utilizing any authority under
the General Education Provisions Act to monitor and enforce the
requirements of this title.
``(h) 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.
``(i) Data Capacity and Technical Assistance Review.--The Secretary
shall--
``(1) review the data collection and analysis capacity of
States to ensure that data and information determined necessary for
implementation of this section is collected, analyzed, and
accurately reported to the Secretary; and
``(2) provide technical assistance (from funds reserved under
section 611(c)), where needed, to improve the capacity of States to
meet the data collection requirements.
``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) Prohibition Against Federal Mandates, Direction, or
Control.--Nothing in this title shall be construed to authorize an
officer or employee of the Federal Government to mandate, direct, or
control a State, local educational agency, or school's specific
instructional content, academic achievement standards and assessments,
curriculum, or program of instruction.
``(c) Confidentiality.--The Secretary shall take appropriate
action, in accordance with section 444 of the General Education
Provisions Act, to ensure the protection of the confidentiality of any
personally identifiable data, information, and records collected or
maintained by the Secretary and by State educational agencies and local
educational agencies pursuant to this part.
``(d) Personnel.--The Secretary is authorized to hire qualified
personnel necessary to carry out the Secretary's duties under
subsection (a), under section 618, and under subpart 4 of part D,
without regard to the provisions of title 5, United States Code,
relating to appointments in the competitive service and without regard
to chapter 51 and subchapter III of chapter 53 of such title relating
to classification and general schedule pay rates, except that no more
than 20 such personnel shall be employed at any time.
``(e) Model Forms.--Not later than the date that the Secretary
publishes final regulations under this title, 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
subsections (b)(3) and (c)(1) of section 615 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 the following:
``(1)(A) The number and percentage of children with
disabilities, by race, ethnicity, limited English proficiency
status, gender, and disability category, who are in each of the
following separate categories:
``(i) Receiving a free appropriate public education.
``(ii) Participating in regular education.
``(iii) In separate classes, separate schools or
facilities, or public or private residential facilities.
``(iv) 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.
``(v)(I) Removed to an interim alternative educational
setting under section 615(k)(1).
``(II) The acts or items precipitating those removals.
``(III) The number of children with disabilities who
are subject to long-term suspensions or expulsions.
``(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, gender, and ethnicity, who, from birth through age 2,
stopped receiving early intervention services because of program
completion or for other reasons.
``(D) 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.
``(E) 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.
``(F) The number of due process complaints filed under section
615 and the number of hearings conducted.
``(G) The number of hearings requested under section 615(k) and
the number of changes in placements ordered as a result of those
hearings.
``(H) 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.
``(3) Any other information that may be required by the
Secretary.
``(b) Data Reporting.--
``(1) Protection of identifiable data.--The data described in
subsection (a) shall be publicly reported by each State in a manner
that does not result in the disclosure of data identifiable to
individual children.
``(2) Sampling.--The Secretary may permit States and the
Secretary of the Interior to obtain the data described in
subsection (a) through sampling.
``(c) Technical Assistance.--The Secretary may provide technical
assistance to States to ensure compliance with the data collection and
reporting requirements under this title.
``(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 and ethnicity is occurring in the
State and the local educational agencies of 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--
``(A) 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
title;
``(B) require any local educational agency identified under
paragraph (1) to reserve the maximum amount of funds under
section 613(f) to provide comprehensive coordinated early
intervening services to serve children in the local educational
agency, particularly children in those groups that were
significantly overidentified under paragraph (1); and
``(C) require the local educational agency to publicly
report on the revision of policies, practices, and procedures
described under subparagraph (A).
``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) for a fiscal year 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) 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) 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) Ratable reductions.--If the amount available for
allocations is equal to or less than the amount allocated to
the States for fiscal year 1997, each State shall be allocated
the amount the State received for fiscal year 1997, 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.
``(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;
``(5) to provide early intervention services (which shall
include an educational component that promotes school readiness and
incorporates preliteracy, 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; or
``(6) at the State's discretion, to continue service
coordination or case management for families who receive services
under part C.
``(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 the
local educational 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 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) State Defined.--In 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.--There are authorized to be
appropriated to carry out this section 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 that 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 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.
``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, as identified by the
individualized family service plan team, 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) occupational therapists;
``(iv) physical therapists;
``(v) psychologists;
``(vi) social workers;
``(vii) nurses;
``(viii) registered dietitians;
``(ix) family therapists;
``(x) vision specialists, including ophthalmologists
and optometrists;
``(xi) orientation and mobility specialists; and
``(xii) 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
that 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 or
elementary school, as appropriate, provided that any
programs under this part serving such children shall
include--
``(I) an educational component that promotes school
readiness and incorporates pre-literacy, language, and
numeracy skills; and
``(II) a written notification to parents of their
rights and responsibilities in determining whether
their child will continue to receive services under
this part or participate in preschool programs under
section 619.
``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 provide assurances 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 and
toddlers with disabilities who are homeless children and their
families, and infants and toddlers with disabilities who are wards
of the State; and
``(2) has in effect a statewide system that meets the
requirements of section 635.
``SEC. 635. REQUIREMENTS FOR STATEWIDE SYSTEM.
``(a) In General.--A statewide system described in section 633
shall include, at a minimum, the following components:
``(1) A rigorous definition of the term `developmental delay'
that will be used by the State in carrying out programs under this
part in order to appropriately identify infants and toddlers with
disabilities that are in need of services under this part.
``(2) A State policy that is in effect and that ensures that
appropriate early intervention services based on scientifically
based research, to the extent practicable, are available to all
infants and toddlers with disabilities and their families,
including Indian infants and toddlers with disabilities and their
families residing on a reservation geographically located in the
State and infants and toddlers with disabilities who are homeless
children and their families.
``(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 assist appropriately 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 and that ensures rigorous standards for
appropriately identifying infants and toddlers with disabilities
for services under this part that will reduce the need for future
services.
``(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 and physicians, of information to be given to
parents, especially to inform parents with premature infants, or
infants with other physical risk factors associated with learning
or developmental complications, on the availability of early
intervention services under this part and of services under section
619, and procedures for assisting such sources in disseminating
such information to parents of infants and toddlers with
disabilities.
``(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 that--
``(A) shall include--
``(i) implementing innovative strategies and activities
for the recruitment and retention of early education
service providers;
``(ii) promoting the preparation of early intervention
providers who are fully and appropriately qualified to
provide early intervention services under this part; and
``(iii) training personnel to coordinate transition
services for infants and toddlers served under this part
from a program providing early intervention services under
this part and under part B (other than section 619), to a
preschool program receiving funds under section 619, or
another appropriate program; and
``(B) may include--
``(i) training personnel to work in rural and inner-
city areas; and
``(ii) training personnel in the emotional and social
development of young children.
``(9) Policies and procedures relating to the establishment and
maintenance of qualifications to ensure that personnel necessary to
carry out this part are appropriately and adequately prepared and
trained, including the establishment and maintenance of
qualifications that are consistent with any State-approved or
recognized certification, licensing, registration, or other
comparable requirements that 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)--
``(A) to the maximum extent appropriate, early intervention
services are provided in natural environments; and
``(B) the provision of early intervention services for any
infant or toddler with a disability occurs in a setting other
than a natural environment that is most appropriate, as
determined by the parent and the individualized family service
plan team, only when early intervention cannot be achieved
satisfactorily for the infant or toddler in a natural
environment.
``(b) Policy.--In implementing subsection (a)(9), a State may adopt
a policy that includes making ongoing good-faith efforts to recruit and
hire appropriately and adequately trained personnel to provide early
intervention services to infants and toddlers with disabilities,
including, in a geographic area of the State where there is a shortage
of such personnel, the most qualified individuals available who are
making satisfactory progress toward completing applicable course work
necessary to meet the standards described in subsection (a)(9).
``(c) Flexibility To Serve Children 3 Years of Age Until Entrance
Into Elementary School.--
``(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 that--
``(A) parents of children with disabilities served pursuant
to this subsection are provided annual notice that contains--
``(i) a description of the rights of such parents to
elect to receive services pursuant to this subsection or
under part B; and
``(ii) an explanation of the differences between
services provided pursuant to this subsection and services
provided under part B, including--
``(I) types of services and the locations at which
the services are provided;
``(II) applicable procedural safeguards; and
``(III) possible costs (including any fees to be
charged to families as described in section 632(4)(B)),
if any, to parents of infants or toddlers with
disabilities;
``(B) services provided pursuant to this subsection include
an educational component that promotes school readiness and
incorporates preliteracy, language, and numeracy skills;
``(C) 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;
``(D) all early intervention services outlined in the
child's individualized family service plan under section 636
are continued while any eligibility determination is being made
for services under this subsection;
``(E) the parents of infants or toddlers with disabilities
(as defined in section 632(5)(A)) provide informed written
consent to the State, before such infants or 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;
``(F) the requirements under section 637(a)(9) shall not
apply with respect to a child who is receiving services in
accordance with this subsection until not less than 90 days
(and at the discretion of the parties to the conference, not
more than 9 months) before the time the child will no longer
receive those services; and
``(G) there will be a referral for evaluation for early
intervention services of a child who experiences a
substantiated case of trauma due to exposure to family violence
(as defined in section 320 of the Family Violence Prevention
and Services Act).
``(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 the number and 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.
``(4) 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)(E), including fees
(if any) to be charged to families as described in section
632(4)(B).
``(5) Rules of construction.--
``(A) Services under part b.--If a statewide system
includes a State policy described in paragraph (1), a State
that provides services in accordance with this subsection to a
child with a disability who is eligible for services under
section 619 shall not be required to provide the child with a
free appropriate public education under part B for the period
of time in which the child is receiving services under this
part.
``(B) Services under this part.--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.
``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 infant or toddler.
``(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 results or outcomes
expected to be achieved for the infant or toddler and the family,
including pre-literacy and language skills, as developmentally
appropriate for the child, and the criteria, procedures, and
timelines used to determine the degree to which progress toward
achieving the results or outcomes is being made and whether
modifications or revisions of the results or outcomes or services
are necessary;
``(4) a statement of specific early intervention services based
on peer-reviewed research, to the extent practicable, 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 statewide 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 early intervention services under this
part 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(c)) to preschool,
school, 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 not less than 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;
``(10) a description of State efforts to promote collaboration
among Early Head Start programs under section 645A of the Head
Start Act, early education and child care programs, and services
under part C; and
``(11) such other information and assurances as the Secretary
may reasonably require.
``(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 those 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 this part (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 title, or a Federal
regulation issued under this title;
``(2) a new interpretation of this title 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 until such children
enter, or are eligible under State law to enter, kindergarten, 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 a
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 designated lead
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 such dispute.
``(B) Consistency between agreements or mechanisms under
part b.--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), where appropriate.
``(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.--Not less than 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. Not less than 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.
``(B) Service providers.--Not less than 20 percent of the
members shall be public or private providers of early
intervention services.
``(C) State legislature.--Not less than 1 member shall be
from the State legislature.
``(D) Personnel preparation.--Not less than 1 member shall
be involved in personnel preparation.
``(E) Agency for early intervention services.--Not less
than 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.--Not less than 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.--Not less than 1 member shall
be from the agency responsible for the State medicaid program.
``(H) Head start agency.--Not less than 1 member shall be a
representative from a Head Start agency or program in the
State.
``(I) Child care agency.--Not less than 1 member shall be a
representative from a State agency responsible for child care.
``(J) Agency for health insurance.--Not less than 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 member shall be a
representative designated by the Office of Coordinator for
Education of Homeless Children and Youths.
``(L) State foster care representative.--Not less than 1
member shall be a representative from the State child welfare
agency responsible for foster care.
``(M) Mental health agency.--Not less than 1 member shall
be a representative from the State agency responsible for
children's mental health.
``(2) Other members.--The council may include other members
selected by the Governor, including a representative from the
Bureau of Indian Affairs (BIA), 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 a minimum, on a
quarterly basis, 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 for assistance
under this part.
``(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
Bureau of Indian Affairs, 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 payment 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
infants and toddlers contacted and receiving services for each
year, and the estimated number of infants and toddlers 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.--In 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 Incentive Grants.--
``(1) In general.--For any fiscal year for which the amount
appropriated pursuant to the authorization of appropriations under
section 644 exceeds $460,000,000, the Secretary shall reserve 15
percent of such appropriated amount to provide grants to States
that are carrying out the policy described in section 635(c) in
order to facilitate the implementation of such policy.
``(2) Amount of grant.--
``(A) In general.--Notwithstanding paragraphs (2) and (3)
of subsection (c), the Secretary shall provide a grant to each
State under paragraph (1) in an amount that bears the same
ratio to the amount reserved under such paragraph as the number
of infants and toddlers in the State bears to the number of
infants and toddlers in all States receiving grants under such
paragraph.
``(B) Maximum amount.--No State shall receive a grant under
paragraph (1) for any fiscal year in an amount that is greater
than 20 percent of the amount reserved under such paragraph for
the fiscal year.
``(3) Carryover of amounts.--
``(A) First succeeding fiscal year.--Pursuant to section
421(b) of the General Education Provisions Act, amounts under a
grant provided under paragraph (1) that are not obligated and
expended prior to the beginning of the first fiscal year
succeeding the fiscal year for which such amounts were
appropriated shall remain available for obligation and
expenditure during such first succeeding fiscal year.
``(B) Second succeeding fiscal year.--Amounts under a grant
provided under paragraph (1) that are not obligated and
expended prior to the beginning of the second fiscal year
succeeding the fiscal year for which such amounts were
appropriated shall be returned to the Secretary and used to
make grants to States under section 633 (from their allotments
under this section) during such second succeeding fiscal year.
``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 2005 through 2010.
``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 those children 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--
``(A) to serve effectively children with disabilities;
``(B) to assume leadership positions in administration and
direct services;
``(C) to provide teacher training; and
``(D) 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) 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.
``(10) 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.
``(11) 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 title 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.
``(12) 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 Development Grants
``SEC. 651. PURPOSE; DEFINITION OF PERSONNEL; 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 of Personnel.--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 amount.--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) Increase in amount.--The Secretary may increase the
amounts of grants under paragraph (4) to account for inflation.
``(5) Factors.--The Secretary shall determine the amount of a
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
research 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 remaining 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 educational agency that received a
competitive multi-year grant under subsection (c) for which the
grant period has not expired shall be not less than the amount
specified for that fiscal year in the State educational
agency's grant award document under that subsection.
``(B) Special rule.--Each such State educational agency
shall use the minimum amount described in subparagraph (A) for
the activities described in the State educational agency's
competitive grant award document for that year, unless the
Secretary approves a request from the State educational agency
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.
``(4) Direct benefit.--In using grant funds allotted under
paragraph (1), a State educational agency shall, through grants,
contracts, or cooperative agreements, undertake activities that
significantly and directly benefit the local educational agencies
in the State.
``(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 educational agency (at the
request of the State educational agency) 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 educational
agency to carry out activities in accordance with the terms of the
multi-year award.
``(2) Prohibition.--A State educational agency 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--
``(A) not less than 1 institution of higher education; and
``(B) the State agencies responsible for administering part
C, early education, 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 educational
agency 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 who 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 and inservice 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 Development Plan.--Each State
personnel 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 educational agency 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 activities supported 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 educational agency will align its
personnel 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 those strategies the State educational agency
will use to address the professional development and personnel
needs identified under subsection (a)(2) and how such strategies
will be implemented, including--
``(A) a description of the 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 will be integrated, to the
maximum extent possible, with other activities supported by
grants funded under section 662;
``(5) provide an assurance that the State educational agency
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 educational agency
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 educational agency will recruit
and retain highly qualified teachers and other qualified personnel
in geographic areas of greatest need;
``(8) describe the steps the State educational agency 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 educational agency 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--
``(1) describe the progress of the State educational agency in
implementing its plan;
``(2) analyze the effectiveness of the State educational
agency's activities under this subpart and of the State educational
agency's strategies for meeting its goals under section 612(a)(15);
and
``(3) identify changes in the strategies used by the State
educational agency and described in subsection (b)(4), if any, to
improve the State educational agency's performance.
``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 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 who are limited English proficient;
``(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 recruiting 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
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 early
intervention 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 the teachers
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) 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 achievement and functional 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.--A State educational agency that
receives a grant under this subpart--
``(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 the State 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 90 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 10 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 2005 through
2010.
``Subpart 2--Personnel Preparation, Technical Assistance, Model
Demonstration Projects, and Dissemination of Information
``SEC. 661. PURPOSE; DEFINITION OF ELIGIBLE ENTITY.
``(a) Purpose.--The purpose of this subpart is--
``(1) to provide Federal funding for personnel preparation,
technical assistance, model demonstration projects, information
dissemination, and studies and evaluations, in order 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 for
children with disabilities.
``(b) Definition of Eligible Entity.--
``(1) In general.--In this subpart, the term `eligible entity'
means--
``(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) a public agency not described in subparagraphs (A)
through (D);
``(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); or
``(I) a for-profit organization, if the Secretary finds it
appropriate in light of the purposes of a particular
competition for a grant, contract, or cooperative agreement
under this subpart.
``(2) Special rule.--The Secretary may limit which eligible
entities described in paragraph (1) are eligible for a grant,
contract, or cooperative agreement under this subpart to 1 or more
of the categories of eligible entities described in paragraph (1).
``SEC. 662. 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 to carry out 1 or more of the following
objectives:
``(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 or toddlers with
disabilities, or children with disabilities, consistent with the
qualifications 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; Enhanced Support for Beginning Special
Educators.--
``(1) In general.--In carrying out this section, the Secretary
shall support activities--
``(A) for personnel development, including activities for
the preparation of personnel who will serve children with high
incidence and low incidence disabilities, to prepare special
education and general education teachers, principals,
administrators, and related services personnel (and school
board members, when appropriate) to meet the diverse and
individualized instructional needs of children with
disabilities and improve early intervention, educational, and
transitional services and results for children with
disabilities, consistent with the objectives described in
subsection (a); and
``(B) for enhanced support for beginning special educators,
consistent with the objectives described in subsection (a).
``(2) Personnel development.--In carrying out paragraph (1)(A),
the Secretary shall support not less than 1 of the following
activities:
``(A) Assisting effective existing, improving existing, or
developing new, collaborative personnel preparation activities
undertaken by institutions of higher education, local
educational agencies, and other local entities that incorporate
best practices and scientifically based research, where
applicable, in providing special education and general
education teachers, principals, administrators, and related
services personnel with the knowledge and skills to effectively
support students with disabilities, including--
``(i) working collaboratively in regular classroom
settings;
``(ii) using appropriate supports, accommodations, and
curriculum modifications;
``(iii) implementing effective teaching strategies,
classroom-based techniques, and interventions to ensure
appropriate identification of students who may be eligible
for special education services, and to prevent the
misidentification, inappropriate overidentification, or
underidentification of children as having a disability,
especially minority and limited English proficient
children;
``(iv) effectively working with and involving parents
in the education of their children;
``(v) utilizing strategies, including positive
behavioral interventions, for addressing the conduct of
children with disabilities that impedes their learning and
that of others in the classroom;
``(vi) effectively constructing IEPs, participating in
IEP meetings, and implementing IEPs;
``(vii) preparing children with disabilities to
participate in statewide assessments (with or without
accommodations) and alternate assessments, as appropriate,
and to ensure that all children with disabilities are a
part of all accountability systems under the Elementary and
Secondary Education Act of 1965; and
``(viii) working 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.
``(B) Developing, evaluating, and disseminating innovative
models for the recruitment, induction, retention, and
assessment of new, highly qualified teachers to reduce teacher
shortages, especially from groups that are underrepresented in
the teaching profession, including individuals with
disabilities.
``(C) Providing continuous personnel preparation, training,
and professional development designed to provide support and
ensure retention of special education and general education
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) In the case of principals and superintendents,
providing activities to promote instructional leadership and
improved collaboration between general educators, special
education teachers, and related services personnel.
``(F) Supporting institutions of higher education with
minority enrollments of not less than 25 percent for the
purpose of preparing personnel to work with children with
disabilities.
``(G) Developing and improving programs to train special
education teachers to develop an expertise in autism spectrum
disorders.
``(H) Providing continuous personnel preparation, training,
and professional development designed to provide support and
improve the qualifications of personnel who provide related
services to children with disabilities, including to enable
such personnel to obtain advanced degrees.
``(3) Enhanced support for beginning special educators.--In
carrying out paragraph (1)(B), the Secretary shall support not less
than 1 of the following activities:
``(A) Enhancing and restructuring existing programs or
developing preservice teacher education programs to prepare
special education teachers, at colleges or departments of
education within institutions of higher education, by
incorporating an extended (such as an additional 5th year)
clinical learning opportunity, field experience, or supervised
practicum into such programs.
``(B) Creating or supporting teacher-faculty partnerships
(such as professional development schools) that--
``(i) consist of not less than--
``(I) 1 or more institutions of higher education
with special education personnel preparation programs;
``(II) 1 or more local educational agencies that
serve high numbers or percentages of low-income
students; or
``(III) 1 or more elementary schools or secondary
schools, particularly schools that have failed to make
adequate yearly progress on the basis, in whole and in
part, of the assessment results of the disaggregated
subgroup of students with disabilities;
``(ii) may include other entities eligible for
assistance under this part; and
``(iii) provide--
``(I) high-quality mentoring and induction
opportunities with ongoing support for beginning
special education teachers; or
``(II) inservice professional development to
beginning and veteran special education teachers
through the ongoing exchange of information and
instructional strategies with faculty.
``(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.
``(G) Preparing personnel who provide services to children
with low incidence disabilities and limited English proficient
children.
``(3) Definition.--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 eligible entities
for assistance 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 between
an eligible entity and a local educational agency that promotes
recruitment and subsequent retention of highly qualified
personnel to serve children with low incidence disabilities.
``(5) Preparation in use of braille.--The Secretary shall
ensure that all recipients of awards 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, related services faculty, administrators, researchers,
supervisors, principals, and other persons whose work affects
early intervention, educational, and transitional services for
children with disabilities, including children with
disabilities who are limited English proficient children.
``(e) Applications.--
``(1) In general.--An 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.
``(2) Identified state needs.--
``(A) Requirement to address identified needs.--An
application for assistance under subsection (b), (c), or (d)
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
eligible entity proposes to serve.
``(B) Cooperation with state educational agencies.--An
eligible entity that is not a local educational agency or a
State educational agency shall include in the eligible entity's
application information demonstrating to the satisfaction of
the Secretary that the eligible entity and 1 or more State
educational agencies or local educational agencies will
cooperate in carrying out and monitoring the proposed project.
``(3) Acceptance by states of personnel preparation
requirements.--The Secretary may require eligible entities to
provide in the eligible entities' applications 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 or other requirements in State law or
regulation for serving children with disabilities or serving
infants and toddlers with disabilities.
``(f) Selection of Recipients.--
``(1) Impact of project.--In selecting eligible entities for
assistance 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 eligible entities to meet state and
professional qualifications.--The Secretary shall make grants and
enter into contracts and cooperative agreements under this section
only to eligible entities that meet State and professionally
recognized qualifications 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 eligible entities for
assistance under this section, the Secretary may give preference to
eligible entities that are 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.
``(g) Scholarships.--The Secretary may include funds for
scholarships, with necessary stipends and allowances, in awards under
subsections (b), (c), and (d).
``(h) Service Obligation.--
``(1) In general.--Each application for assistance under
subsections (b), (c), and (d) shall include an assurance that the
eligible entity will ensure that individuals who receive a
scholarship under the proposed project agree to subsequently
provide special education and related services to children with
disabilities, or in the case of leadership personnel to
subsequently work in the appropriate field, for a period of 2 years
for every year for which the scholarship was received or repay all
or part of the amount of the scholarship, in accordance with
regulations issued by the Secretary.
``(2) Special rule.--Notwithstanding paragraph (1), the
Secretary may reduce or waive the service obligation requirement
under paragraph (1) if the Secretary determines that the service
obligation is acting as a deterrent to the recruitment of students
into special education or a related field.
``(3) Secretary's responsibility.--The Secretary--
``(A) shall ensure that individuals described in paragraph
(1) comply with the requirements of that paragraph; and
``(B) may use not more than 0.5 percent of the funds
appropriated under subsection (i) for each fiscal year, to
carry out subparagraph (A), in addition to any other funds that
are available for that purpose.
``(i) 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 2005 through 2010.
``SEC. 663. TECHNICAL ASSISTANCE, DEMONSTRATION PROJECTS, DISSEMINATION
OF INFORMATION, AND IMPLEMENTATION OF SCIENTIFICALLY
BASED RESEARCH.
``(a) In General.--The Secretary shall make competitive grants to,
or enter into contracts or cooperative agreements with, eligible
entities to provide technical assistance, support model demonstration
projects, disseminate useful information, and implement activities that
are supported by scientifically based research.
``(b) Required Activities.--Funds received under this section shall
be used to support activities to improve services provided under this
title, including the practices of professionals and others involved in
providing such services to children with disabilities, that promote
academic achievement and improve results for children with disabilities
through--
``(1) implementing effective strategies 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 assessments and alternate assessments for
assessing adequate yearly progress, as described under section
1111(b)(2)(B) of the Elementary and Secondary Education Act of
1965;
``(3) providing training for both regular education teachers
and special education teachers to address the needs of students
with different learning styles;
``(4) disseminating information about innovative, effective,
and efficient curricula designs, instructional approaches, and
strategies, and identifying positive academic and social learning
opportunities, that--
``(A) provide effective transitions between educational
settings or from school to post school settings; and
``(B) 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) applying scientifically based findings to facilitate
systemic changes, related to the provision of services to children
with disabilities, in policy, procedure, practice, and the training
and use of personnel.
``(c) Authorized Activities.--Activities that may be carried out
under this section include activities to improve services provided
under this title, including the practices of professionals and others
involved in providing such services to children with disabilities, that
promote academic achievement and improve results for children with
disabilities through--
``(1) applying and testing research findings in typical
settings where children with disabilities receive services to
determine the usefulness, effectiveness, and general applicability
of such research findings in such areas as improving instructional
methods, curricula, and tools, such as textbooks and media;
``(2) supporting and promoting the coordination of early
intervention and educational services for children with
disabilities with services provided by health, rehabilitation, and
social service agencies;
``(3) promoting improved alignment and compatibility of general
and special education reforms concerned with curricular and
instructional reform, and evaluation of such reforms;
``(4) enabling professionals, parents of children with
disabilities, and other persons to learn about, and implement, the
findings of scientifically based research, and successful practices
developed in model demonstration projects, relating to the
provision of services to children with disabilities;
``(5) conducting outreach, and 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;
``(6) 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;
``(7) promoting change through a multistate or regional
framework that benefits States, local educational agencies, and
other participants in partnerships that are in the process of
achieving systemic-change outcomes;
``(8) 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) addressing 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;
``(9) demonstrating models of personnel preparation to ensure
appropriate placements and services for all students and to reduce
disproportionality in eligibility, placement, and disciplinary
actions for minority and limited English proficient children; and
``(10) disseminating information on how to reduce inappropriate
racial and ethnic disproportionalities identified under section
618.
``(d) Balance Among Activities and Age Ranges.--In carrying out
this section, the Secretary shall ensure that there is an appropriate
balance across all age ranges of children with disabilities.
``(e) Linking States to Information Sources.--In carrying out this
section, the Secretary shall support projects that link States to
technical assistance resources, including special education and general
education resources, and shall make research and related products
available through libraries, electronic networks, parent training
projects, and other information sources, including through the
activities of the National Center for Education Evaluation and Regional
Assistance established under part D of the Education Sciences Reform
Act of 2002.
``(f) Applications.--
``(1) In general.--An 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.
``(2) Standards.--To the maximum extent feasible, each eligible
entity shall demonstrate that the project described in the eligible
entity's application is supported by scientifically valid research
that has been carried out in accordance with the standards for the
conduct and evaluation of all relevant research and development
established by the National Center for Education Research.
``(3) Priority.--As appropriate, the Secretary shall give
priority to applications that propose to serve teachers and school
personnel directly in the school environment.
``SEC. 664. STUDIES AND EVALUATIONS.
``(a) Studies and Evaluations.--
``(1) Delegation.--The Secretary shall delegate to the Director
of the Institute of 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 to eligible
entities on a competitive basis, assess the progress in the
implementation of this title, 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 the infants and
toddlers.
``(b) Assessment of National Activities.--
``(1) In general.--The Secretary shall carry out a national
assessment of activities carried out with Federal funds under this
title in order--
``(A) to determine the effectiveness of this title in
achieving the purposes of this title;
``(B) to provide timely information to the President,
Congress, the States, local educational agencies, and the
public on how to implement this title 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 title more effectively.
``(2) Scope of assessment.--The national assessment shall
assess activities supported under this title, including--
``(A) the implementation of programs assisted under this
title and the impact of such programs on addressing the
developmental needs of, and improving the academic achievement
of, children with disabilities to enable the children to reach
challenging developmental goals and challenging State academic
content standards based on State academic assessments;
``(B) the 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) the implementation of the professional development
activities assisted under this title 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) the effectiveness of schools, local educational
agencies, States, other recipients of assistance under this
title, and the Secretary in achieving the purposes of this
title by--
``(i) improving the academic achievement of children
with disabilities and their performance on regular
statewide assessments as compared to nondisabled children,
and the performance of children with disabilities on
alternate assessments;
``(ii) improving the participation 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) reducing the inappropriate overidentification
of children, especially minority and limited English
proficient children, as having a disability;
``(viii) improving the participation of parents of
children with disabilities in the education of their
children; and
``(ix) resolving disagreements between education
personnel and parents through alternate dispute resolution
activities, including mediation.
``(3) Interim and final reports.--The Secretary shall submit to
the President and Congress--
``(A) an interim report that summarizes the preliminary
findings of the 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 such Act.
``(c) Study on Ensuring Accountability for Students Who Are Held to
Alternative Achievement 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 alternative 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 part E of the
Education Sciences Reform Act of 2002;
``(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 assessment of
national activities; and
``(5) describes the findings and determinations resulting from
reviews of State implementation of this title.
``(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
for children with disabilities served under this title, 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 title, using a national, representative
sample of distinct age cohorts and disability categories; and
``(B) examine educational results, transition services,
postsecondary placement, and employment status for individuals
with disabilities, 18 through 21 years of age, who are
receiving or have received special education and related
services under this title; 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(c)(1) and on the effects of those policies.
``SEC. 665. INTERIM ALTERNATIVE EDUCATIONAL SETTINGS, BEHAVIORAL
SUPPORTS, AND SYSTEMIC SCHOOL INTERVENTIONS.
``(a) Program Authorized.--The Secretary may award grants, and
enter into contracts and cooperative agreements, to support safe
learning environments that support academic achievement for all
students by--
``(1) improving the quality of interim alternative educational
settings; and
``(2) providing increased behavioral supports and research-
based, systemic interventions in schools.
``(b) Authorized Activities.--In carrying out this section, the
Secretary may support activities to--
``(1) establish, expand, or increase the scope of behavioral
supports and systemic interventions by providing for effective,
research-based practices, including--
``(A) training for school staff on early identification,
prereferral, and referral procedures;
``(B) training for administrators, teachers, related
services personnel, behavioral specialists, and other school
staff in positive behavioral interventions and supports,
behavioral intervention planning, and classroom and student
management techniques;
``(C) 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;
``(D) developing or implementing specific curricula,
programs, or interventions aimed at addressing behavioral
problems;
``(E) stronger linkages between school-based services and
community-based resources, such as community mental health and
primary care providers; or
``(F) using behavioral specialists, related services
personnel, and other staff necessary to implement behavioral
supports; or
``(2) 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) in
behavioral supports and interventions;
``(B) attracting and retaining a high quality, diverse
staff;
``(C) providing for referral to counseling services;
``(D) utilizing 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.
``(c) Definition of Eligible Entity.--In this section, 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 community mental health provider.
``(E) An educational service agency.
``(d) Applications.--Any eligible entity that wishes to receive a
grant, or enter into a contract or cooperative agreement, under this
section shall--
``(1) submit an application to the Secretary at such time, in
such manner, and containing such information as the Secretary may
require; and
``(2) involve parents of participating students in the design
and implementation of the activities funded under this section.
``(e) Report and Evaluation.--Each eligible entity receiving a
grant under this section shall prepare and submit annually to the
Secretary a report on the outcomes of the activities assisted under the
grant.
``SEC. 667. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out this subpart (other than section 662) such sums as may be necessary
for each of the fiscal years 2005 through 2010.
``(b) Reservation.--From amounts appropriated under subsection (a)
for fiscal year 2005, the Secretary shall reserve $1,000,000 to carry
out the study authorized in section 664(c). From amounts appropriated
under subsection (a) for a succeeding fiscal year, the Secretary may
reserve an additional amount to carry out such study if the Secretary
determines the additional amount is necessary.
``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 designed to assist the children in meeting
developmental and functional goals and challenging academic
achievement goals, and in preparing to lead productive independent
adult lives;
``(2) children with disabilities and their parents receive
training and information on their rights, responsibilities, and
protections under this title, 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;
``(3) parents, teachers, administrators, early intervention
personnel, related services personnel, and transition personnel
receive coordinated and accessible technical assistance and
information to assist such personnel in improving early
intervention, educational, and transitional services and results
for children with disabilities and their families; and
``(4) 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.--
``(1) In general.--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.
``(2) Definition of parent organization.--In this section, the
term `parent organization' means a private nonprofit organization
(other than an institution of higher education) that--
``(A) has a board of directors--
``(i) the majority of whom are parents of children with
disabilities ages birth through 26;
``(ii) that includes--
``(I) individuals working in the fields of special
education, related services, and early intervention;
and
``(II) individuals with disabilities; and
``(iii) the parent and professional members of which
are broadly representative of the population to be served,
including low-income parents and parents of limited English
proficient children; and
``(B) has as its mission serving families of children with
disabilities who--
``(i) are ages birth through 26; and
``(ii) have the full range of disabilities described in
section 602(3).
``(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) ensure that the training and information provided meets
the needs of low-income parents and parents of limited English
proficient children;
``(4) 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--
``(i) options, programs, services, technologies,
practices and interventions based on scientifically based
research, to the extent practicable; and
``(ii) resources available to assist children with
disabilities and their families in school and at home;
``(E) understand the provisions of this title for the
education of, and the provision of early intervention services
to, children with disabilities;
``(F) participate in activities at the school level that
benefit their children; and
``(G) participate in school reform activities;
``(5) 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;
``(6) 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);
``(7) assist parents and students with disabilities to
understand their rights and responsibilities under this title,
including those under section 615(m) upon the student's reaching
the age of majority (as appropriate under State law);
``(8) assist parents to understand the availability of, and how
to effectively use, procedural safeguards under this title,
including the resolution session described in section 615(e);
``(9) assist parents in understanding, preparing for, and
participating in, the process described in section 615(f)(1)(B);
``(10) establish cooperative partnerships with community parent
resource centers funded under section 672;
``(11) network with appropriate clearinghouses, including
organizations conducting national dissemination activities under
section 663 and the Institute of Education Sciences, 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
``(12) 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, including
community based organizations that work with low-income parents and
parents of limited English proficient children.
``(e) Distribution of Funds.--
``(1) In general.--The Secretary shall--
``(A) make not less than 1 award to a parent organization
in each State for a parent training and information center that
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
not less than once in each calendar quarter to review the
activities for which the award was made.
``(2) Continuation award.--When a parent 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 parent
organization during the preceding fiscal year.
``SEC. 672. COMMUNITY PARENT RESOURCE CENTERS.
``(a) Program Authorized.--
``(1) In general.--The Secretary may award grants to, and enter
into contracts and cooperative agreements with, local parent
organizations to support community parent resource centers that
will help ensure that underserved parents of children with
disabilities, including low income parents, parents of limited
English proficient children, 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--
``(A) to meet developmental and functional goals, and
challenging academic achievement goals that have been
established for all children; and
``(B) to be prepared to lead productive independent adult
lives, to the maximum extent possible.
``(2) Definition of local parent organization.--In this
section, the term `local parent organization' means a parent
organization, as defined in section 671(a)(2), that--
``(A) 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
``(B) has as its mission serving parents of children with
disabilities who--
``(i) are ages birth through 26; and
``(ii) have the full range of disabilities described in
section 602(3).
``(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.
``SEC. 673. TECHNICAL ASSISTANCE FOR PARENT TRAINING AND INFORMATION
CENTERS.
``(a) Program Authorized.--
``(1) In general.--The Secretary may, directly or through
awards to eligible entities, provide technical assistance for
developing, assisting, and coordinating parent training and
information programs carried out by parent training and information
centers receiving assistance under section 671 and community parent
resource centers receiving assistance under section 672.
``(2) Definition of eligible entity.--In this section, the term
`eligible entity' has the meaning given the term in section 661(b).
``(b) Authorized Activities.--The Secretary may provide technical
assistance to a parent training and information center or a community
parent resource center under this section in areas such as--
``(1) effective coordination of parent training efforts;
``(2) dissemination of scientifically based research and
information;
``(3) promotion of the use of technology, including assistive
technology devices and assistive technology services;
``(4) reaching underserved populations, including parents of
low-income and limited English proficient children with
disabilities;
``(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) Collaboration With the Resource Centers.--Each eligible
entity receiving an award under subsection (a) shall develop
collaborative agreements with the geographically appropriate regional
resource center and, as appropriate, the regional educational
laboratory supported under section 174 of the Education Sciences Reform
Act of 2002, to further parent and professional collaboration.
``SEC. 674. TECHNOLOGY DEVELOPMENT, DEMONSTRATION, AND UTILIZATION;
MEDIA SERVICES; AND INSTRUCTIONAL MATERIALS.
``(a) Program Authorized.--
``(1) 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).
``(2) Definition of eligible entity.--In this section, the term
`eligible entity' has the meaning given the term in section 661(b).
``(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.--
``(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,
postsecondary schools, and graduate schools.
``(2) Limitation.--The video description, open captioning, or
closed captioning described in paragraph (1)(B) shall be provided
only 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.--
``(1) In general.--Any eligible entity that wishes to receive a
grant, or enter into a contract or cooperative agreement, under
subsection (b) or (c) shall submit an application to the Secretary
at such time, in such manner, and containing such information as
the Secretary may require.
``(2) Special rule.--For the purpose of an application for an
award to carry out activities described in subsection (c)(1)(D),
such eligible entity shall--
``(A) be a national, nonprofit entity with a proven track
record of meeting the needs of students with print disabilities
through services described in subsection (c)(1)(D);
``(B) have the capacity to produce, maintain, and
distribute in a timely fashion, up-to-date textbooks in digital
audio formats to qualified students; and
``(C) have a demonstrated ability to significantly leverage
Federal funds through other public and private contributions,
as well as through the expansive use of volunteers.
``(e) National Instructional Materials Access Center.--
``(1) In general.--The Secretary shall establish and support,
through the American Printing House for the Blind, a center to be
known as the `National Instructional Materials Access Center' not
later than 1 year after the date of enactment of the Individuals
with Disabilities Education Improvement Act of 2004.
``(2) Duties.--The duties of the National Instructional
Materials Access Center are the following:
``(A) To receive and maintain a catalog of print
instructional materials prepared in the National Instructional
Materials Accessibility Standard, as established by the
Secretary, made available to such center by the textbook
publishing industry, State educational agencies, and local
educational agencies.
``(B) To provide access to print instructional materials,
including textbooks, in accessible media, free of charge, to
blind or other persons with print disabilities in elementary
schools and secondary schools, 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, with respect to the print
instructional materials provided under sections 612(a)(23) and
613(a)(6).
``(3) Definitions.--In this subsection:
``(A) 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.
``(B) National instructional materials accessibility
standard.--The term `National Instructional Materials
Accessibility Standard' means the standard established by the
Secretary to be used in the preparation of electronic files
suitable and used solely for efficient conversion into
specialized formats.
``(C) 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 students in the classroom.
``(D) Specialized formats.--The term `specialized formats'
has the meaning given the term in section 121(d)(3) of title
17, United States Code.
``(4) Applicability.--This subsection shall apply to print
instructional materials published after the date on which the final
rule establishing the National Instructional Materials
Accessibility Standard was published in the Federal Register.
``(5) Liability of the secretary.--Nothing in this subsection
shall be construed to establish a private right of action against
the Secretary for failure to provide instructional materials
directly, or for failure by the National Instructional Materials
Access Center to perform the duties of such center, or to otherwise
authorize a private right of action related to the performance by
such center, including through the application of the rights of
children and parents established under this Act.
``(6) Inapplicability.--Subsections (a) through (d) shall not
apply to this subsection.
``SEC. 675. 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 2005 through
2010.
``Subpart 4--General Provisions
``SEC. 681. COMPREHENSIVE PLAN FOR SUBPARTS 2 AND 3.
``(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
subparts 2 and 3 in order to enhance the provision of early
intervention services, educational services, related services, and
transitional services to children with disabilities under parts B
and C. To the extent practicable, the plan shall be coordinated
with the plan developed pursuant to section 178(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 development grants under subpart 1
and for grants under subparts 2 and 3.
``(2) Public comment.--The Secretary shall provide a public
comment period of not less than 45 days on the plan.
``(3) Distribution of funds.--In implementing the plan, the
Secretary shall, to the extent appropriate, ensure that funds
awarded under subparts 2 and 3 are used 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 subparts 2 and 3,
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) Assistance Authorized.--The Secretary is authorized to award
grants to, or enter into contracts or cooperative agreements with,
eligible entities to enable the eligible entities to carry out the
purposes of such subparts in accordance with the comprehensive plan
described in subsection (a).
``(c) Special Populations.--
``(1) Application requirement.--In making an award of a grant,
contract, or cooperative agreement under subpart 2 or 3, the
Secretary shall, as appropriate, require an eligible entity to
demonstrate how the eligible entity will address the needs of
children with disabilities from minority backgrounds.
``(2) Required outreach and technical assistance.--
Notwithstanding any other provision of this title, the Secretary
shall reserve not less than 2 percent of the total amount of funds
appropriated to carry out subparts 2 and 3 for either or both of
the following activities:
``(A) Providing outreach and technical assistance to
historically Black colleges and universities, and to
institutions of higher education with minority enrollments of
not less than 25 percent, to promote the participation of such
colleges, universities, and institutions in activities under
this subpart.
``(B) Enabling 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, if the historically Black colleges
and universities and the institutions of higher education
described in subparagraph (A) meet the criteria established by
the Secretary under this subpart.
``(d) Priorities.--The Secretary, in making an award of a grant,
contract, or cooperative agreement under subpart 2 or 3, may, without
regard to the rulemaking procedures under section 553 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 public charter schools;
``(J) children who are gifted and talented; or
``(K) children with disabilities served by local
educational agencies that receive payments under title VIII of
the Elementary and Secondary Education Act of 1965;
``(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
technologies with universal design, assistive technology devices,
and assistive technology services to maximize children with
disabilities' access to and participation in the general education
curriculum; and
``(7) any activity that is authorized in subpart 2 or 3.
``(e) 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 subpart
2 or 3 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. 682. ADMINISTRATIVE PROVISIONS.
``(a) 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 subpart 2 or
3--
``(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
subpart 2 or 3 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).
``(b) Application Management.--
``(1) Standing panel.--
``(A) In general.--The Secretary shall establish and use a
standing panel of experts who are qualified, by virtue of their
training, expertise, or experience, to evaluate each
application under subpart 2 or 3 that requests 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) individuals who are 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.--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
subpanel selected from the standing panel that reviews an
application under subpart 2 or 3 includes--
``(i) individuals with knowledge and expertise on the
issues addressed by the activities described in the
application; 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 subpanel that reviews an application under
subpart 2 or 3 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 available under subpart 2 or 3 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 appropriated to carry out
subpart 2 or 3 to pay non-Federal entities for administrative
support related to management of applications submitted under
subpart 2 or 3, respectively.
``(c) Program Evaluation.--The Secretary may use funds made
available to carry out subpart 2 or 3 to evaluate activities carried
out under subpart 2 or 3, respectively.
``(d) Minimum Funding Required.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall ensure that, for each fiscal year, not less than the
following amounts are provided under subparts 2 and 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 sum of the amount appropriated
to carry out subparts 2 and 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 for
the fiscal year.''.
TITLE II--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH
SEC. 201. 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 (in this part referred
to as the `Special Education Research Center').
``(b) Mission.--The mission of 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 (20 U.S.C. 1400 et seq.); 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 or toddlers with
disabilities;
``(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 (20 U.S.C. 6311(b));
``(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 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;
``(16) address the unique needs of children with significant
cognitive disabilities; and
``(17) examine the special needs of limited English proficient
children with disabilities.
``(b) Standards.--The Special Education Research Commissioner 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 accordance 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 Special Education Research Commissioner 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 purposes 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; and
``(6) is coordinated with the comprehensive plan developed
under section 681 of the Individuals with Disabilities Education
Act.
``(d) Grants, Contracts, and Cooperative Agreements.--
``(1) In general.--In carrying out the duties under this
section, the Director may award grants to, or enter into contracts
or cooperative agreements with, eligible applicants.
``(2) Eligible applicants.--Activities carried out under this
subsection through contracts, grants, or cooperative agreements
shall be carried out only by recipients with the ability and
capacity to conduct scientifically valid research.
``(3) Applications.--An eligible applicant that wishes to
receive a grant, or enter into a contract or cooperative agreement,
under this section shall submit an application to the Director at
such time, in such manner, and containing such information as the
Director may require.
``(e) 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.
``(f) 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 2005 through 2010.''.
(b) Conforming Amendments.--
(1) Amendments to the table of contents.--The table of contents
in section 1 of the Act entitled ``An Act to provide for
improvement of Federal education research, statistics, evaluation,
information, and dissemination, and for other purposes'', approved
November 5, 2002 (116 Stat. 1940; Public Law 107-279), is amended--
(A) by redesignating the item relating to part E as the
item relating to part F; and
(B) by inserting after the item relating to section 174 the
following:
``Part E--National Center for Special Education Research
``Sec. 175. Establishment.
``Sec. 176. Commissioner for Special Education Research.
``Sec. 177. Duties.''.
(2) 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), by inserting ``special education experts,''
after ``early childhood experts,''.
(3) 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''.
SEC. 202. 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. 203. REGIONAL ADVISORY COMMITTEES.
Section 206(d)(3) of the Educational Technical Assistance Act of
2002 (20 U.S.C. 9605(d)(3)) is amended by striking ``Academy'' and
inserting ``Institute''.
TITLE III--MISCELLANEOUS PROVISIONS
SEC. 301. 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. 302. EFFECTIVE DATES.
(a) Parts A, B, and C, and subpart 1 of part D.--
(1) In general.--Except as provided in paragraph (2), parts A,
B, and C, and subpart 1 of part D, of the Individuals with
Disabilities Education Act, as amended by title I, shall take
effect on July 1, 2005.
(2) Highly qualified definition.--Subparagraph (A), and
subparagraphs (C) through (F), of section 602(10) of the
Individuals with Disabilities Education Act, as amended by title I,
shall take effect on the date of enactment of this Act for purposes
of the Elementary and Secondary Education Act of 1965.
(b) Subparts 2, 3, and 4 of part D.--Subparts 2, 3, and 4 of part D
of the Individuals with Disabilities Education Act, as amended by title
I, shall take effect on the date of enactment of this Act.
(c) Education Sciences Reform Act of 2002.--
(1) National center for special education research.--Sections
175, 176, and 177 (other than section 177(c)) of the Education
Sciences Reform Act of 2002, as enacted by section 201(a)(2) of
this Act, shall take effect on the date of enactment of this Act.
(2) Plan.--Section 177(c) of the Education Sciences Reform Act
of 2002, as enacted by section 201(a)(2) of this Act, shall take
effect on October 1, 2005.
SEC. 303. TRANSITION.
(a) Orderly Transition.--
(1) In general.--The Secretary of Education (in this section
referred to as ``the Secretary'') shall take such steps as are
necessary to provide for the orderly transition from the
Individuals with Disabilities Education Act, as such Act was in
effect on the day preceding the date of enactment of this Act, to
the Individuals with Disabilities Education Act and part E of the
Education Sciences Reform Act of 2002, as amended by this Act.
(2) Limitation.--The Secretary's authority in paragraph (1)
shall terminate 1 year after the date of enactment of this Act.
(b) Multi-year Awards.--Notwithstanding any other provision of law,
the Secretary may use funds appropriated under part D of the
Individuals with Disabilities Education Act to make continuation awards
for projects that were funded under section 618, and part D, of the
Individuals with Disabilities Education Act (as such section and part
were in effect on September 30, 2004), in accordance with the terms of
the original awards.
(c) Research.--Notwithstanding section 302(b) or any other
provision of law, the Secretary may award funds that are appropriated
under the Department of Education Appropriations Act, 2005 for special
education research under either of the headings ``Special Education''
or ``Institute of Education Sciences'' in accordance with sections 672
and 674 of the Individuals with Disabilities Education Act, as such
sections were in effect on October 1, 2004.
SEC. 304. REPEALER.
Section 644 of the Individuals with Disabilities Education Act, as
such section was in effect on the day before the enactment of this Act,
is repealed.
SEC. 305. IDEA TECHNICAL AMENDMENTS TO OTHER LAWS.
(a) Title 10.--Section 2164(f) of title 10, United States Code is
amended--
(1) in paragraph (1)(B)--
(A) by striking ``infants and toddlers'' each place the
term appears and inserting ``infants or toddlers'';
(B) by striking ``part H'' and inserting ``part C''; and
(C) by striking ``1471'' and inserting ``1431''; and
(2) in paragraph (3)--
(A) in subparagraph (A)--
(i) by striking ``602(a)(1)'' and inserting ``602'';
and
(ii) by striking ``1401(a)(1)'' and inserting ``1401'';
(B) by striking subparagraph (B);
(C) by redesignating subparagraph (C) as subparagraph (B);
and
(D) in subparagraph (B) (as so redesignated)--
(i) by striking ``and toddlers'' and inserting ``or
toddlers'';
(ii) by striking ``672(1)'' and inserting ``632''; and
(iii) by striking ``1472(1)'' and inserting ``1432''.
(b) Defense Dependents Education Act of 1978.--Section 1409(c)(2)
of the Defense Dependents Education Act of 1978 (20 U.S.C. 927(c)(2))
is amended--
(1) by striking ``677'' and inserting ``636''; and
(2) by striking ``part H'' and inserting ``part C''.
(c) Higher Education Act of 1965.--The Higher Education Act of 1965
(20 U.S.C. 1001 et seq.) is amended--
(1) in section 465(a)(2)(C) (20 U.S.C. 1087ee(a)(2)(C), by
striking ``Individuals With'' and inserting ``Individuals with''
and;
(2) in section 469(c) (20 U.S.C. 1087ii(c)), by striking
``602(a)(1) and 672(1)'' and inserting ``602 and 632''.
(d) Education of the Deaf Act.--The matter preceding subparagraph
(A) of section 104(b)(2) of the Education of the Deaf Act (20 U.S.C.
4304(b)(2)) is amended by striking ``618(a)(1)(A)'' and inserting
``618(a)(1)''.
(e) Goals 2000: Educate America Act.--Section 3(a)(9) of the Goals
2000: Educate America Act (20 U.S.C. 5802(a)(9)) is amended by striking
``602(a)(17)'' and inserting ``602''.
(f) School-to-Work Opportunities Act of 1994.--Section 4(15) of the
School-to-Work Opportunities Act of 1994 (20 U.S.C. 6103(15)) is
amended--
(1) by striking ``602(a)(17)'' and inserting ``602''; and
(2) by striking ``1401(17)'' and inserting ``1401''.
(g) Elementary and Secondary Education Act of 1965.--The Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) is
amended--
(1) in section 1111(b)(2)(I)(ii) (20 U.S.C. 6311(b)(2)(I)(ii)),
by striking ``612(a)(17)(A)'' and inserting ``612(a)(16)(A)'';
(2) in section 5208 (20 U.S.C. 7221g), by striking ``602(11)''
and inserting ``602''; and
(3) in section 5563(b)(8)(C) (20 U.S.C. 7273b(b)(8)(C)), by
striking ``682'' and inserting ``671''.
(h) Rehabilitation Act of 1973.--The Rehabilitation Act of 1973 (29
U.S.C. 701 et seq.) is amended--
(1) in section 101(a)(11)(D)(ii) (29 U.S.C. 721(a)(11)(D)(ii)),
by striking ``(as added by section 101 of Public Law 105-17)'';
(2) in section 105(b)(1)(A)(ii) (29 U.S.C. 725(b)(1)(A)(ii)),
by striking ``682(a) of the Individuals with Disabilities Education
Act (as added by section 101 of the Individuals with Disabilities
Education Act Amendments of 1997; Public Law 105-17)'' and
inserting ``671 of the Individuals with Disabilities Education
Act'';
(3) in section 105(c)(6) (29 U.S.C. 725(c)(6))--
(A) by striking ``612(a)(21)'' and inserting
``612(a)(20)'';
(B) by striking ``Individual with'' and inserting
``Individuals with''; and
(C) by striking ``(as amended by section 101 of the
Individuals with Disabilities Education Act Amendments of 1997;
Public Law 105-17)'';
(4) in section 302(f)(1)(D)(ii) (29 U.S.C. 772 (f)(1)(D)(ii)),
by striking ``(as amended by section 101 of the Individuals with
Disabilities Education Act Amendments of 1997 (Public Law 105-
17))'';
(5) in section 303(c)(6) (29 U.S.C. 773(c)(6))--
(A) by striking ``682(a)'' and inserting ``671''; and
(B) by striking ``(as added by section 101 of the
Individuals with Disabilities Education Act Amendments of 1997;
Public Law 105-17)''; and
(6) in section 303(c)(4)(A)(ii) (29 U.S.C. 773(c)(4)(A)(ii)),
by striking ``682(a) of the Individuals with Disabilities Education
Act (as added by section 101 of the Individuals with Disabilities
Education Act Amendments of 1997; Public Law 105-17)'' and
inserting ``671 of the Individuals with Disabilities Education
Act''.
(i) Public Health Service Act.--The Public Health Service Act (42
U.S.C. 201 et seq.) is amended--
(1) in section 399A(f) (42 U.S.C. 280d(f), by striking ``part
H'' and inserting ``part C'';
(2) in section 399(n)(3) (42 U.S.C. 280c-6(n)(3)), by striking
``part H'' and inserting ``part C'';
(3) in section 399A(b)(8) (42 U.S.C. 280d(b)(8)), by striking
``part H'' and inserting ``part C'';
(4) in section 562(d)(3)(B) (42 U.S.C. 290ff-1(d)(3)(B)), by
striking ``and H'' and inserting ``and C''; and
(5) in section 563(d)(2) (42 U.S.C. 290ff-2(d)(2)), by striking
``602(a)(19)'' and inserting ``602''.
(j) Social Security Act.--The Social Security Act (42 U.S.C. 301 et
seq.) is amended--
(1) in section 1903(c) (42 U.S.C. 1396b(c)), by striking ``part
H'' and inserting ``part C''; and
(2) in section 1915(c)(5)(C)(i) (42 U.S.C. 1396n(c)(5)(C)(i)),
by striking ``(as defined in section 602(16) and (17) of the
Education of the Handicapped Act (20 U.S.C. 1401(16), (17))'' and
inserting ``(as such terms are defined in section 602 of the
Individuals with Disabilities Education Act (20 U.S.C. 1401))''.
(k) Domestic Volunteer Service Act of 1973.--Section 211(a) of the
Domestic Volunteer Service Act of 1973 (42 U.S.C. 5011(a)) is amended--
(1) by striking ``part H'' and inserting ``part C''; and
(2) by striking ``1471'' and inserting ``1431''.
(l) Head Start Act.--The Head Start Act (42 U.S.C. 9831 et seq.) is
amended--
(1) in section 640(a)(5)(C)(iv) (42 U.S.C. 9835(a)(5)(C)(iv)),
by striking ``1445'' and inserting ``1444'';
(2) in section 640(d) (42 U.S.C. 9835(d))--
(A) by striking ``U.S.C'' and inserting ``U.S.C.''; and
(B) by striking ``1445'' and inserting ``1444'';
(3) in section 641(d)(3) (42 U.S.C. 9836(d)(3)), by striking
``U.S.C 1431-1445'' and inserting ``U.S.C. 1431-1444''; and
(4) in section 642(c) (42 U.S.C. 9837(c)), by striking ``1445''
and inserting ``1444''.
(m) National and Community Service Act of 1990.--Section 101(21)(B)
of the National and Community Service Act of 1990 (42 U.S.C.
12511(21)(B)) is amended--
(1) by striking ``602(a)(1)'' and inserting ``602''; and
(2) by striking ``1401(a)(1)'' and inserting ``1401''.
(n) Developmental Disabilities Assistance and Bill of Rights Act of
2000.--The Developmental Disabilities Assistance and Bill of Rights Act
of 2000 (42 U.S.C. 15001 et seq.) is amended--
(1) in section 125(c)(5)(G)(i) (42 U.S.C. 15025(c)(5)(G)(i)),
by striking ``subtitle C'' and inserting ``part C''; and
(2) in section 154(a)(3)(E)(ii)(VI) (42 U.S.C.
15064(a)(3)(E)(ii)(VI))--
(A) by striking ``682 or 683'' and inserting ``671 or
672''; and
(B) by striking ``(20 U.S.C. 1482, 1483)''.
(o) District of Columbia School Reform Act of 1995.--The District
of Columbia School Reform Act of 1995 (Public Law 104-134) is amended--
(1) in section 2002(32)--
(A) by striking ``602(a)(1)'' and inserting ``602''; and
(B) by striking ``1401(a)(1)'' and inserting ``1401'';
(2) in section 2202(19), by striking ``Individuals With'' and
inserting ``Individuals with''; and
(3) in section 2210--
(A) in the heading for subsection (c), by striking ``With
Disabilities'' and inserting ``with Disabilities''; and
(B) in subsection (c), by striking ``Individuals With'' and
inserting ``Individuals with''.
SEC. 306. COPYRIGHT.
Section 121 of title 17, United States Code, is amended--
(1) by redesignating subsection (c) as subsection (d);
(2) by inserting after subsection (b) the following:
``(c) Notwithstanding the provisions of section 106, it is not an
infringement of copyright for a publisher of print instructional
materials for use in elementary or secondary schools to create and
distribute to the National Instructional Materials Access Center copies
of the electronic files described in sections 612(a)(23)(C), 613(a)(6),
and section 674(e) of the Individuals with Disabilities Education Act
that contain the contents of print instructional materials using the
National Instructional Material Accessibility Standard (as defined in
section 674(e)(3) of that Act), if--
``(1) the inclusion of the contents of such print instructional
materials is required by any State educational agency or local
educational agency;
``(2) the publisher had the right to publish such print
instructional materials in print formats; and
``(3) such copies are used solely for reproduction or
distribution of the contents of such print instructional materials
in specialized formats.''; and
(3) in subsection (d), as redesignated by this section--
(A) in paragraph (2), by striking ``and'' after the
semicolon; and
(B) by striking paragraph (3) and inserting the following:
``(3) `print instructional materials' has the meaning given
under section 674(e)(3)(C) of the Individuals with Disabilities
Education Act; and
``(4) `specialized formats' means--
``(A) braille, audio, or digital text which is exclusively
for use by blind or other persons with disabilities; and
``(B) with respect to print instructional materials,
includes large print formats when such materials are
distributed exclusively for use by blind or other persons with
disabilities.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.