[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.