[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1350 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 1350
To reauthorize the Individuals with Disabilities Education Act, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 19, 2003
Mr. Castle (for himself, Mr. Boehner, Mr. Ballenger, Mr. McKeon, Mr.
Sam Johnson of Texas, Mr. Greenwood, Mr. DeMint, Mrs. Biggert, Mr.
Tiberi, Mr. Keller, Mr. Wilson of South Carolina, and Mr. Cole)
introduced the following bill; which was referred to the Committee on
Education and the Workforce
_______________________________________________________________________
A BILL
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 ``Improving Education Results for
Children With Disabilities Act of 2003''.
TITLE I--GENERAL PROVISIONS
SEC. 101. SECTIONS 601 THROUGH 603 OF THE INDIVIDUALS WITH DISABILITIES
EDUCATION ACT.
Sections 601 through 603 of the Individuals with Disabilities
Education Act (20 U.S.C. 1400-1402) are amended to read as follows:
``PART A--GENERAL PROVISIONS
``SEC. 601. SHORT TITLE; TABLE OF CONTENTS; FINDINGS; PURPOSES.
``(a) Short Title.--This Act may be cited as the `Individuals with
Disabilities Education Act'.
``(b) Table of Contents.--The table of contents for this Act is as
follows:
``Part A--General Provisions
``Sec. 601. Short title; table of contents; findings; purposes.
``Sec. 602. Definitions.
``Sec. 603. Office of Special Education Programs.
``Sec. 604. Abrogation of State sovereign immunity.
``Sec. 605. Acquisition of equipment; construction or alteration of
facilities.
``Sec. 606. Employment of individuals with disabilities.
``Sec. 607. Requirements for prescribing regulations.
``Sec. 608. State administration.
``Sec. 609. GAO review; report.
``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. Withholding and judicial review.
``Sec. 617. Administration.
``Sec. 618. Program information.
``Sec. 619. Preschool grants.
``Part C--Infants and Toddlers with Disabilities
``Sec. 631. Findings and policy.
``Sec. 632. Definitions.
``Sec. 633. General authority.
``Sec. 634. Eligibility.
``Sec. 635. Requirements for statewide system.
``Sec. 636. Individualized family service plan.
``Sec. 637. State application and assurances.
``Sec. 638. Uses of funds.
``Sec. 639. Procedural safeguards.
``Sec. 640. Payor of last resort.
``Sec. 641. State Interagency Coordinating Council.
``Sec. 642. Federal administration.
``Sec. 643. Allocation of funds.
``Sec. 644. Authorization of appropriations.
``Part D--National Activities to Improve Education of Children With
Disabilities
``Sec. 651.``subpart 1--state professional development grants
``Sec. 652. Purpose.
``Sec. 653. Eligibility and collaborative process.
``Sec. 654. Applications.
``Sec. 655. Use of funds.
``Sec. 656. State grant amounts.
`subpart 2--scientifically based research; technical assistance; model
demonstration projects; dissemination of information; and personnel
programs
``Sec. 661. Purpose.
``Sec. 662. Administrative provisions.
``Sec. 663. Research to improve results for children with disabilities.
``Sec. 664. Technical assistance, demonstration projects, dissemination
of information, and implementation of
scientifically based research.
``Sec. 665. Personnel development to improve services and results for
children with disabilities.
``Sec. 666. Studies and evaluations.
``subpart 3--supports to improve results for children with disabilities
``Sec. 671. Purposes.
``Sec. 672. Parent and community training and information centers.
``Sec. 673. Technical assistance for parent and community training and
information centers.
``Sec. 674. Technology development, demonstration, and utilization; and
media services.
``(c) Findings.--Congress finds the following:
``(1) Disability is a natural part of the human experience
and in no way diminishes the right of individuals to
participate in or contribute to society. Improving educational
results for children with disabilities is an essential element
of our national policy of ensuring equality of opportunity,
full participation, independent living, and economic self-
sufficiency for individuals with disabilities.
``(2) Before the date of the enactment of the Education for
All Handicapped Children Act of 1975 (Public Law 94-142) the
special educational needs of millions of children with
disabilities were not being fully met and there were many
children with disabilities participating in regular school
programs whose undiagnosed disabilities prevented them from
having a successful educational experience.
``(3) Since the enactment and implementation of the
Education for All Handicapped Children Act of 1975, this Act
has been successful in ensuring children with disabilities and
the families of such children access to a free appropriate
public education and in improving educational results for
children with disabilities.
``(4) Over 25 years of research and experience has
demonstrated that the education of children with disabilities
can be made more effective by--
``(A) having high expectations for such children
and ensuring their access to the general education
curriculum in the regular classroom to the maximum
extent possible in order--
``(i) to meet developmental goals and, to
the maximum extent possible, the challenging
expectations that have been established for all
children; and
``(ii) to be prepared to lead productive
and independent adult lives, to the maximum
extent possible;
``(B) strengthening the role and responsibility of
parents and ensuring that families of such children
have meaningful opportunities to participate in the
education of their children at school and at home;
``(C) coordinating this Act with other local,
State, and Federal school improvement efforts,
including efforts under the Elementary and Secondary
Education Act of 1965, in order to ensure that children
with disabilities benefit from such efforts and that
special education can become a service for such
children rather than a place where they are sent;
``(D) supporting high-quality, intensive
professional development for personnel who work with
children with disabilities;
``(E) providing incentives for scientifically based
reading programs and pre-referral intervention services
to reduce the need to label children as disabled in
order to address their learning needs;
``(F) focusing resources on teaching and learning
while reducing paperwork and requirements that do not
assist in improving educational results; and
``(G) supporting the development and use of
technology, including assistive technology devices and
services, to maximize accessibility for children with
disabilities.
``(5) 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.
``(6)(A) A more equitable allocation of resources is
essential for the Federal Government to meet its responsibility
to provide an equal educational opportunity for all
individuals.
``(B) America's ethnic profile is rapidly changing. In the
year 2000, nearly one of every three persons in America 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.
``(7)(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 overidentified as
having mental retardation and emotional disturbance at rates
greater than their white counterparts.
``(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 systemic-change activities;
coordinated research and personnel preparation; coordinated
technical assistance, dissemination, and support; and
technology development and media services; and
``(4) to assess, and ensure the effectiveness of, efforts
to educate children with disabilities.
``SEC. 602. DEFINITIONS.
``Except as otherwise provided, as used in this Act:
``(1) Assistive technology device.--The term `assistive
technology device' means any item, piece of equipment, or
product system, whether acquired commercially off the shelf,
modified, or customized, that is used to increase, maintain, or
improve functional capabilities of a child with a disability.
``(2) Assistive technology service.--The term `assistive
technology service' means any service that directly assists a
child with a disability in the selection, acquisition, or use
of an assistive technology device. Such term includes--
``(A) the evaluation of the needs of such child,
including a functional evaluation of the child in the
child's customary environment;
``(B) purchasing, leasing, or otherwise providing
for the acquisition of assistive technology devices by
such child;
``(C) selecting, designing, fitting, customizing,
adapting, applying, maintaining, repairing, or
replacing of assistive technology devices;
``(D) coordinating and using other therapies,
interventions, or services with assistive technology
devices, such as those associated with existing
education and rehabilitation plans and programs;
``(E) training or technical assistance for such
child, or, where appropriate, the family of such child;
and
``(F) training or technical assistance for
professionals (including individuals providing
education and rehabilitation services), employers, or
other individuals who provide services to, employ, or
are otherwise substantially involved in the major life
functions of such child.
``(3) Child with a disability.--
``(A) In general.--The term `child with a
disability' means a child--
``(i) with mental retardation, hearing
impairments (including deafness), speech or
language impairments, visual impairments
(including blindness), serious emotional
disturbance (hereinafter referred to as
`emotional disturbance'), orthopedic
impairments, autism, traumatic brain injury,
other health impairments, or specific learning
disabilities; and
``(ii) who, by reason thereof, needs
special education and related services.
``(B) Child aged 3 through 9.--The term `child with
a disability' for a child aged 3 through 9 or any
subset of that age range, including ages 3 through 5,
may, at the discretion of the State and the local
educational agency, include a child--
``(i) experiencing developmental delays, as
defined by the State and as measured by
appropriate diagnostic instruments and
procedures, in one or more of the following
areas: physical development, cognitive
development, communication development, social
or emotional development, or adaptive
development; and
``(ii) who, by reason thereof, needs
special education and related services.
``(4) Educational service agency.--The term `educational
service agency'--
``(A) means a regional public multiservice agency--
``(i) authorized by State law to develop,
manage, and provide services or programs to
local educational agencies; and
``(ii) recognized as an administrative
agency for purposes of the provision of special
education and related services provided within
public elementary and secondary schools of the
State; and
``(B) includes any other public institution or
agency having administrative control and direction over
a public elementary or secondary school.
``(5) Elementary school.--The term `elementary school'
means a nonprofit institutional day or residential school that
provides elementary education, as determined under State law.
``(6) Equipment.--The term `equipment' includes--
``(A) machinery, utilities, and built-in equipment
and any necessary enclosures or structures to house
such machinery, utilities, or equipment; and
``(B) all other items necessary for the functioning
of a particular facility as a facility for the
provision of educational services, including items such
as instructional equipment and necessary furniture;
printed, published, and audio-visual instructional
materials; telecommunications, sensory, and other
technological aids and devices; and books, periodicals,
documents, and other related materials.
``(7) Excess costs.--The term `excess costs' means those
costs that are in excess of the average annual per-student
expenditure in a local educational agency during the preceding
school year for an elementary or secondary school student, as
may be appropriate, and which shall be computed after
deducting--
``(A) amounts received--
``(i) under part B of this title;
``(ii) under part A of title I of the
Elementary and Secondary Education Act of 1965;
and
``(iii) under title III of that Act; and
``(B) any State or local funds expended for
programs that would qualify for assistance under any of
the provisions of law described in subparagraph (A).
``(8) Free appropriate public education.--The term `free
appropriate public education' means special education and
related services that--
``(A) have been provided at public expense, under
public supervision and direction, and without charge;
``(B) meet the standards of the State educational
agency;
``(C) include an appropriate preschool, elementary,
or secondary school education in the State involved;
and
``(D) are provided in conformity with the
individualized education program required under section
614(d).
``(9) Highly qualified.--The term `highly qualified' has
the same meaning as that term in section 9101 of the Elementary
and Secondary Education Act of 1965.
``(10) Indian.--The term `Indian' means an individual who
is a member of an Indian tribe.
``(11) 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).
``(12) Individualized education program.--The term
`individualized education program' or `IEP' means a written
statement for each child with a disability that is developed,
reviewed, and revised in accordance with section 614(d).
``(13) Individualized family service plan.--The term
`individualized family service plan' has the meaning given such
term in section 636.
``(14) Infant or toddler with a disability.--The term
`infant or toddler with a disability' has the meaning given
such term in section 632.
``(15) Institution of higher education.--The term
`institution of higher education'--
``(A) has the meaning given that term in section
101(a) of the Higher Education Act of 1965; and
``(B) also includes any community college receiving
funding from the Secretary of the Interior under the
Tribally Controlled Community College Assistance Act of
1978.
``(16) Local educational agency.--
``(A) The term `local educational agency' means a
public board of education or other public authority
legally constituted within a State for either
administrative control or direction of, or to perform a
service function for, public elementary 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 or secondary schools.
``(B) The term includes--
``(i) an educational service agency, as
defined in paragraph (4); and
``(ii) any other public institution or
agency having administrative control and
direction of a public elementary or secondary
school.
``(C) The term includes an elementary or secondary
school funded by the Bureau of Indian Affairs, but only
to the extent that such inclusion makes the school
eligible for programs for which specific eligibility is
not provided to the school in another provision of law
and the school does not have a student population that
is smaller than the student population of the local
educational agency receiving assistance under this Act
with the smallest student population, except that the
school shall not be subject to the jurisdiction of any
State educational agency other than the Bureau of
Indian Affairs.
``(17) Native language.--The term `native language', when
used with reference to an individual of limited English
proficiency, means the language normally used by the
individual, or in the case of a child, the language normally
used by the parents of the child.
``(18) Nonprofit.--The term `nonprofit', as applied to a
school, agency, organization, or institution, means a school,
agency, organization, or institution owned and operated by one
or more nonprofit corporations or associations no part of the
net earnings of which inures, or may lawfully inure, to the
benefit of any private shareholder or individual.
``(19) Outlying area.--The term `outlying area' means the
United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
``(20) Parent.--The term `parent'--
``(A) includes a legal guardian; and
``(B) except as used in sections 615(b)(2) and
639(a)(5), includes an individual assigned under either
of those sections to be a surrogate parent.
``(21) Parent organization.--The term `parent organization'
has the meaning given that term in section 671(g).
``(22) Parent and community training and information
center.--The term `parent and community training and
information center' means a center assisted under section 671.
``(23) Related services.--The term `related services' means
transportation, and such developmental, corrective, and other
supportive services (including speech-language pathology and
audiology services, psychological services, physical and
occupational therapy, recreation, including therapeutic
recreation, social work services, counseling services,
including rehabilitation counseling, orientation and mobility
services, and medical services, except that such medical
services shall be for diagnostic and evaluation purposes only)
as may be required to assist a child with a disability to
benefit from special education, and includes the early
identification and assessment of disabling conditions in
children.
``(24) Secondary school.--The term `secondary school' means
a nonprofit institutional day or residential school that
provides secondary education, as determined under State law,
except that it does not include any education beyond grade 12.
``(25) Secretary.--The term `Secretary' means the Secretary
of Education.
``(26) 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.
``(27) Specific learning disability.--
``(A) In general.--The term `specific learning
disability' means a disorder in one or more of the
basic psychological processes involved in understanding
or in using language, spoken or written, which disorder
may manifest itself in imperfect ability to listen,
think, speak, read, write, spell, or do mathematical
calculations.
``(B) Disorders included.--Such term includes such
conditions as perceptual disabilities, brain injury,
minimal brain dysfunction, dyslexia, and developmental
aphasia.
``(C) Disorders not included.--Such term does not
include a learning problem that is primarily the result
of visual, hearing, or motor disabilities, of mental
retardation, of emotional disturbance, or of
environmental, cultural, or economic disadvantage.
``(28) 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.
``(29) State educational agency.--The term `State
educational agency' means the State board of education or other
agency or officer primarily responsible for the State
supervision of public elementary and secondary schools, or, if
there is no such officer or agency, an officer or agency
designated by the Governor or by State law.
``(30) 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).
``(31) Transition services.--The term `transition services'
means a coordinated set of activities for a child with a
disability that--
``(A) is designed within a results-oriented
process, that is focused on improving the academic and
developmental achievement of the child with a
disability to facilitate the child's move from school
to post-school activities, including post-secondary
education, vocational training, integrated employment
(including supported employment), continuing and adult
education, adult services, independent living, or
community participation;
``(B) is based upon the individual child's needs,
taking into account the child's skills, 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.
``SEC. 603. OFFICE OF SPECIAL EDUCATION PROGRAMS.
``(a) Establishment.--There shall be, within the Office of Special
Education and Rehabilitative Services in the Department of Education,
an Office of Special Education Programs, which shall be the principal
agency in such Department for administering and carrying out this Act
and other programs and activities concerning the education of children
with disabilities.
``(b) Director.--The Office established under subsection (a) shall
be headed by a Director who shall be selected by the Secretary and
shall report directly to the Assistant Secretary for Special Education
and Rehabilitative Services.
``(c) Voluntary and Uncompensated Services.--Notwithstanding
section 1342 of title 31, United States Code, the Secretary is
authorized to accept voluntary and uncompensated services in
furtherance of the purposes of this Act.''.
SEC. 102. SECTIONS 605 THROUGH 607 OF THE INDIVIDUALS WITH DISABILITIES
EDUCATION ACT.
Sections 605 through 607 of the Individuals with Disabilities
Education Act (20 U.S.C. 1404-1406) are amended to read as follows:
``SEC. 605. ACQUISITION OF EQUIPMENT; CONSTRUCTION OR ALTERATION OF
FACILITIES.
``(a) In General.--If the Secretary determines that a program
authorized under this Act would 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 part 101-19.6 of title 41, Code of
Federal Regulations (commonly known as the `Uniform Federal
Accessibility Standards').
``SEC. 606. EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.
``The Secretary shall ensure that each recipient of assistance
under this Act makes positive efforts to employ and advance in
employment qualified individuals with disabilities in programs assisted
under this Act.
``SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.
``(a) In General.--The Secretary may issue such regulations as are
reasonably necessary to ensure that there is compliance with this Act.
``(b) Protections Provided to Children.--The Secretary may not
implement, or publish in final form, any regulation prescribed pursuant
to this Act that would--
``(1) violate or contradict any provision of this Act; and
``(2) procedurally or substantively lessen the protections
provided to children with disabilities under this Act, as
embodied in regulations in effect on July 20, 1983
(particularly as such protections relate to parental consent to
initial evaluation or initial placement in special education,
least restrictive environment, related services, timelines,
attendance of evaluation personnel at individualized education
program meetings, or qualifications of personnel), except to
the extent that such regulation reflects the clear and
unequivocal intent of the Congress in legislation.
``(c) Public Comment Period.--The Secretary shall provide a public
comment period of at least 30 days on any regulation proposed under
part B or part C of this Act on which an opportunity for public comment
is otherwise required by law.
``(d) Policy Letters and Statements.--The Secretary may not issue
policy letters or other statements (including on issues of national
significance) that--
``(1) would violate or contradict any provision of this
Act; or
``(2) establish a rule that is required for compliance
with, and eligibility under, this Act without following the
requirements of section 553 of title 5, United States Code.
``(e) Correspondence From Department of Education Describing
Interpretations of This Part.--
``(1) In general.--The Secretary shall, on a quarterly
basis, publish in the Federal Register, and widely disseminate
to interested entities through various additional forms of
communication, a list of correspondence from the Department of
Education received by individuals during the previous quarter
that describes the interpretations of the Department of
Education of this Act or the regulations implemented pursuant
to this Act.
``(2) Additional information.--For each item of
correspondence published in a list under paragraph (1), the
Secretary shall--
``(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 section
553 of title 5, United States Code.
``(f) Explanation and Assurances.--Any written response by the
Secretary under subsection (e) regarding a policy, question, or
interpretation under this Act shall include an explanation in the
written response that the response--
``(1) is provided as informal guidance and is not legally
binding;
``(2) is issued, when required, in compliance with the
requirements of section 553 of title 5, United States Code; and
``(3) represents only the interpretation by the Department
of Education of the applicable statutory or regulatory
requirements in the context of the specific facts presented in
the original question and is not persuasive or binding as to
any other set of facts.''.
SEC. 103. SECTIONS 608 AND 609 OF THE INDIVIDUALS WITH DISABILITIES
EDUCATION ACT.
Part A of the Individuals with Disabilities Education Act (20
U.S.C. 1400 et seq.) is amended by adding at the end the following:
``SEC. 608. STATE ADMINISTRATION.
``(a) Rulemaking.--Each State that receives funds under this Act
shall--
``(1) ensure that any State rules, regulations, and
policies relating to this Act conform to the purposes of this
Act;
``(2) minimize the number of rules, regulations, and
policies to which the State's local educational agencies and
schools are subject relating to this Act; and
``(3) identify in writing to its local educational agencies
and the Secretary any such rule, regulation, or policy as a
State-imposed requirement that is not required by this Act and
Federal regulations.
``(b) Support and Facilitation.--All State rules, regulations, and
policies relating to this Act shall support and facilitate local
educational agency and school-level systemic reform designed to enable
children with disabilities to meet the challenging State student
academic achievement standards.
``SEC. 609. GAO REVIEW; REPORT.
``(a) Review.--The Comptroller General shall conduct a review of
all Federal requirements under this Act, and the requirements of a
reasonable sample of State and local educational agencies relating to
this Act, to determine which requirements result in excessive paperwork
completion burdens for teachers, related services providers, and school
administrators.
``(b) Report.--Not later than 2 years after the date of the
enactment of the Improving Education Results for Children With
Disabilities Act of 2003, the Comptroller General shall prepare and
submit to Congress a report that contains the results of the review
under subsection (a).''.
TITLE II--ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES
SEC. 201. AUTHORIZATION; ALLOTMENT; USE OF FUNDS; AUTHORIZATION OF
APPROPRIATIONS.
Section 611 of the Individuals with Disabilities Education Act (20
U.S.C. 1411) is amended to read as follows:
``SEC. 611. AUTHORIZATION; ALLOTMENT; USE OF FUNDS; AUTHORIZATION OF
APPROPRIATIONS.
``(a) Grants to States.--
``(1) Purpose of grants.--The Secretary shall make grants
to States and the outlying areas, and provide funds to the
Secretary of the Interior, to assist them to provide special
education and related services to children with disabilities in
accordance with this part.
``(2) Maximum amounts.--The maximum amount of the grant a
State may receive under this section for any fiscal year is--
``(A) 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
``(B) 40 percent of the average per-pupil
expenditure in public elementary and secondary schools
in the United States.
``(3) Limitation.--Notwithstanding subparagraphs (A) and
(B) of paragraph (2), the maximum amount of the grant a State
may receive under this section for a fiscal year may not be
based on the number of children ages 3 through 17, inclusive,
in excess of 12 percent of the number of all children in that
age range in the State.
``(b) Outlying Areas.--
``(1) Funds reserved.--From the amount appropriated for any
fiscal year under subsection (j), the Secretary shall reserve
not more than one percent, which shall be used to provide
assistance to the outlying areas in accordance with their
respective populations of individuals aged 3 through 21.
``(2) Special rule.--The provisions of Public Law 95-134,
permitting the consolidation of grants by the outlying areas,
shall not apply to funds provided to those areas under this
section.
``(c) Secretary of the Interior.--From the amount appropriated for
any fiscal year under subsection (j), the Secretary shall reserve 1.226
percent to provide assistance to the Secretary of the Interior in
accordance with subsection (i).
``(d) Allocations to States.--
``(1) In general.--After reserving funds for payments to
the outlying areas and the Secretary of the Interior under
subsections (b) and (c), 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 does not make a free appropriate public education
available to all children with disabilities aged 3 through 5 in
the State in any 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 the 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) is greater than the
amount allocated to the States under this paragraph for the
preceding fiscal year, those allocations shall be calculated as
follows:
``(A)(i) Except as provided in subparagraph (B),
the Secretary shall allocate--
``(I) to each State the amount it received
for fiscal year 1999;
``(II) 85 percent of any remaining funds to
States on the basis of their 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 their relative
populations of children described in subclause
(II) who are living in poverty.
``(ii) 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) Notwithstanding subparagraph (A), allocations under
this paragraph shall be subject to the following:
``(i) No State's allocation shall be less
than its allocation for the preceding fiscal
year.
``(ii) No State's allocation shall be less
than the greatest of--
``(I) the sum of--
``(aa) the amount it
received for fiscal year 1999;
and
``(bb) one third of one
percent of the amount by which
the amount appropriated under
subsection (j) exceeds the
amount appropriated under this
section for fiscal year 1999;
``(II) the sum of--
``(aa) the amount it
received for the preceding
fiscal year; and
``(bb) that amount
multiplied by the percentage by
which the increase in the funds
appropriated from the preceding
fiscal year exceeds 1.5
percent; or
``(III) the sum of--
``(aa) the amount it
received for the preceding
fiscal year; and
``(bb) that amount
multiplied by 90 percent of the
percentage increase in the
amount appropriated from the
preceding fiscal year.
``(iii) Notwithstanding clause (ii), no
State's allocation under this paragraph shall
exceed the sum of--
``(I) the amount it received 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.
``(C) 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) 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) 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 it received for fiscal year
1999; and
(ii) an amount that bears the same relation
to any remaining funds as the increase the
State received for the preceding fiscal year
over fiscal year 1999 bears to the total of all
such increases for all States.
``(B)(i) If the amount available for allocations is
equal to or less than the amount allocated to the
States for fiscal year 1999, each State shall be
allocated the amount it received for fiscal year 1999.
``(ii) If the amount available is insufficient to
make the allocations described in clause (i), those
allocations shall be ratably reduced.
``(f) State-Level Activities.--
``(1) State administration.--
``(A) In general.--For the purpose of administering
this part, including section 619 (and including the
coordination of activities under this part with, and
providing technical assistance to, other programs that
provide services to children with disabilities)--
``(i) each State may retain not more than 2
percent of the amount the State receives under
subsection (e) for each fiscal year or $550,000
(adjusted by the cumulative rate of inflation
since fiscal year 2003, as measured by the
percentage increase, if any, in the Consumer
Price Index For All Urban Consumers, published
by the Bureau of Labor Statistics of the
Department of Labor), whichever is greater; and
``(ii) each outlying area may use up to
five percent of the amount it receives under
subsection (b) for any fiscal year or $35,000,
whichever is greater.
``(B) Administration of part c.--Funds described in
subparagraph (A) may be used for the administration of
part C of this Act, if the State educational agency is
the lead agency for the State under that part.
``(C) Monitoring, enforcement, and complaint
investigation.--Funds described in subparagraph (A)
shall be used for the costs of monitoring, enforcement,
and complaint investigation.
``(2) Other state-level activities.--For the purpose of
providing State-level activities that benefit children with
disabilities, each State may retain up to 6 percent of the
amount described in subsection (e) for any of the following:
``(A) Support and direct services, including
technical assistance and personnel development and
training.
``(B) To establish and implement the early dispute
resolution, mediation, and voluntary binding
arbitration processes required by section 612(a)(18)
and 615(e), including providing for the costs of
mediators and arbitrators and support personnel.
``(C) To assist local educational agencies in
meeting personnel shortages.
``(D) Activities at the State and local levels to
meet the performance goals established by the State
under section 612(a)(16) and to support implementation
of the State Plan under subpart 1 of part D if the
State receives funds under that subpart.
``(E) To support paperwork reduction activities,
including expanding the appropriate use of technology
in the IEP process under this part.
``(F) To develop and maintain a coordinated,
comprehensive, educational support system for students
in kindergarten through grade 12 (with a particular
emphasis on students in kindergarten through grade 3)
who are not enrolled in special education but who need
additional academic and behavioral support to succeed
in a general education environment.
``(G) To support capacity building activities and
improve the delivery of services by local educational
agencies to improve results for children with
disabilities.
``(H) To provide technical assistance, or direct
services, to local educational agencies identified as
being in need of improvement under section 1116 of the
Elementary and Secondary Education Act of 1965 as a
result of the disaggregated subgroup of students with
disabilities.
``(3) State cost-sharing.--Each State may retain up to 4
percent of the amount described in subsection (e) to establish
and implement cost or risk sharing funds, consortiums, or
cooperatives to assist local educational agencies in providing
high cost special education and related services.
``(4) Condition.--A State may use funds it retains under
this section without regard to the prohibition on--
``(A) commingling of funds in section
612(a)(18)(B); and
``(B) supplanting other funds in section
612(a)(18)(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
subsection--
``(A) will be used to meet the requirements of this
part; and
``(B) will be allocated among the activities
described in this section to meet State priorities
based on input from local educational agencies.
``(g) 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 it does not retain under subsection (f) (at least 88
percent of the grant funds) 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 (e), each State shall allocate funds
under paragraph (1) as follows:
``(A) Base payments.--The State shall first award
each agency described in paragraph (1) the amount that
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 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 agencies on the basis of the
relative numbers of children enrolled in public
and private elementary and secondary schools
within the agency's jurisdiction; and
``(ii) allocate 15 percent of those
remaining funds to those 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 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 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 they serve.
``(h) Definitions.--For the purpose of this section--
``(1) the term `average per-pupil expenditure in public
elementary 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; and
``(2) the term `State' means each of the 50 States, the
District of Columbia, and the Commonwealth of Puerto Rico.
``(i) Use of Amounts by Secretary of the Interior.--
``(1) Provision of amounts for assistance.--
``(A) In general.--The Secretary of Education shall
provide amounts to the Secretary of the Interior to
meet the need for assistance for the education of
children with disabilities on reservations aged 5 to
21, inclusive, enrolled in elementary and secondary
schools for Indian children operated or funded by the
Secretary of the Interior. The amount of such payment
for any fiscal year shall be equal to 80 percent of the
amount allotted under subsection (c) for 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 (hereafter in this subsection referred
to as `BIA') schools and that are required by the
States in which such schools are located to attain or
maintain State accreditation, and which schools have
such accreditation prior to the date of enactment of
the Individuals with Disabilities Education Act
Amendments of 1991, the school shall be allowed to
count those children for the purpose of distribution of
the funds provided under this paragraph to the
Secretary of the Interior. The Secretary of the
Interior shall be responsible for meeting all of the
requirements of this part for these children, in
accordance with paragraph (2).
``(C) Additional requirement.--With respect to all
other children aged 3 to 21, inclusive, on
reservations, the State educational agency shall be
responsible for ensuring that all of the requirements
of this part are implemented.
``(2) Submission of information.--The Secretary of
Education may provide the Secretary of the Interior amounts
under paragraph (1) for a fiscal year only if the Secretary of
the Interior submits to the Secretary of Education information
that--
``(A) demonstrates that the Department of the
Interior meets the appropriate requirements, as
determined by the Secretary of Education, of sections
612 (including monitoring and evaluation activities)
and 613;
``(B) includes a description of how the Secretary
of the Interior will coordinate the provision of
services under this part with local educational
agencies, tribes and tribal organizations, and other
private and Federal service providers;
``(C) includes an assurance that there are public
hearings, adequate notice of such hearings, and an
opportunity for comment afforded to members of tribes,
tribal governing bodies, and affected local school
boards before the adoption of the policies, programs,
and procedures described in subparagraph (A);
``(D) includes an assurance that the Secretary of
the Interior will provide such information as the
Secretary of Education may require to comply with
section 618;
``(E) includes an assurance that the Secretary of
the Interior and the Secretary of Health and Human
Services have entered into a memorandum of agreement,
to be provided to the Secretary of Education, for the
coordination of services, resources, and personnel
between their respective Federal, State, and local
offices and with State and local educational agencies
and other entities to facilitate the provision of
services to Indian children with disabilities residing
on or near reservations (such agreement shall provide
for the apportionment of responsibilities and costs
including, but not limited to, child find, evaluation,
diagnosis, remediation or therapeutic measures, and
(where appropriate) equipment and medical or personal
supplies as needed for a child to remain in school or a
program); and
``(F) includes an assurance that the Department of
the Interior will cooperate with the Department of
Education in its exercise of monitoring, enforcement,
and oversight of this application, and any agreements
entered into between the Secretary of the Interior and
other entities under this part, and will fulfill its
duties under this part.
Section 616(a) shall apply to the information described in this
paragraph.
``(3) Payments for education and services for indian
children with disabilities aged 3 through 5.--
``(A) In general.--With funds appropriated under
subsection (j), the Secretary of Education shall make
payments to the Secretary of the Interior to be
distributed to tribes or tribal organizations (as
defined under section 4 of the Indian Self-
Determination and Education Assistance Act) or
consortia of the above to provide for the coordination
of assistance for special education and related
services for children with disabilities aged 3 through
5 on reservations served by elementary and secondary
schools for Indian children operated or funded by the
Department of the Interior. The amount of such payments
under subparagraph (B) for any fiscal year shall be
equal to 20 percent of the amount allotted under
subsection (c).
``(B) Distribution of funds.--The Secretary of the
Interior shall distribute the total amount of the
payment under subparagraph (A) by allocating to each
tribe or tribal organization an amount based on the
number of children with disabilities ages 3 through 5
residing on reservations as reported annually, divided
by the total of those children served by all tribes or
tribal organizations.
``(C) Submission of information.--To receive a
payment under this paragraph, the tribe or tribal
organization shall submit such figures to the Secretary
of the Interior as required to determine the amounts to
be allocated under subparagraph (B). This information
shall be compiled and submitted to the Secretary of
Education.
``(D) Use of funds.--The funds received by a tribe
or tribal organization shall be used to assist in child
find, screening, and other procedures for the early
identification of children aged 3 through 5, parent
training, and the provision of direct services. These
activities may be carried out directly or through
contracts or cooperative agreements with the BIA, local
educational agencies, and other public or private
nonprofit organizations. The tribe or tribal
organization is encouraged to involve Indian parents in
the development and implementation of these activities.
The above entities shall, as appropriate, make
referrals to local, State, or Federal entities for the
provision of services or further diagnosis.
``(E) Annual 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 an annual 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 year following the one in which the
report is made. The Secretary of the Interior shall
include a summary of this information on an annual
basis in the report to the Secretary of Education
required under this subsection. The Secretary of
Education may require any additional information from
the Secretary of the Interior.
``(F) Prohibitions.--None of the funds allocated
under this paragraph may be used by the Secretary of
the Interior for administrative purposes, including
child count and the provision of technical assistance.
``(4) Plan for coordination of services.--The Secretary of
the Interior shall develop and implement a plan for the
coordination of services for all Indian children with
disabilities residing on reservations covered under this Act.
Such plan shall provide for the coordination of services
benefiting these children from whatever source, including
tribes, the Indian Health Service, other BIA divisions, and
other Federal agencies. In developing the plan, the Secretary
of the Interior shall consult with all interested and involved
parties. It shall be based on the needs of the children and the
system best suited for meeting those needs, and may involve the
establishment of cooperative agreements between the BIA, other
Federal agencies, and other entities. The plan shall also be
distributed upon request to States, State and local educational
agencies, and other agencies providing services to infants,
toddlers, and children with disabilities, to tribes, and to
other interested parties.
``(5) Establishment of advisory board.--To meet the
requirements of section 612(a)(22), the Secretary of the
Interior shall establish, under the BIA, an advisory board
composed of individuals involved in or concerned with the
education and provision of services to Indian infants,
toddlers, children, and youth with disabilities, including
Indians with disabilities, Indian parents or guardians of such
children, teachers, service providers, State and local
educational officials, representatives of tribes or tribal
organizations, representatives from State Interagency
Coordinating Councils under section 641 in States having
reservations, and other members representing the various
divisions and entities of the BIA. The chairperson shall be
selected by the Secretary of the Interior. The advisory board
shall--
``(A) assist in the coordination of services within
the BIA and with other local, State, and Federal
agencies in the provision of education for infants,
toddlers, and children with disabilities;
``(B) advise and assist the Secretary of the
Interior in the performance of the Secretary's
responsibilities described in this subsection;
``(C) develop and recommend policies concerning
effective inter- and intra-agency collaboration,
including modifications to regulations, and the
elimination of barriers to inter- and intra-agency
programs and activities;
``(D) provide assistance and disseminate
information on best practices, effective program
coordination strategies, and recommendations for
improved educational programming for Indian infants,
toddlers, and children with disabilities; and
``(E) provide assistance in the preparation of
information required under paragraph (2)(D).
``(6) Annual reports.--
``(A) In general.--The advisory board established
under paragraph (5) shall prepare and submit to the
Secretary of the Interior and to the Congress an annual
report containing a description of the activities of
the advisory board for the preceding year.
``(B) Availability.--The Secretary of the Interior
shall make available to the Secretary of Education the
report described in subparagraph (A).
``(j) Authorization of Appropriations.--For the purpose of carrying
out this part, other than section 619, there are authorized to be
appropriated--
``(1) $10,301,184,000 for fiscal year 2004;
``(2) $11,957,361,000 for fiscal year 2005;
``(3) $13,879,812,000 for fiscal year 2006;
``(4) $16,111,345,000 for fiscal year 2007;
``(5) $18,701,654,000 for fiscal year 2008;
``(6) $21,708,421,000 for fiscal year 2009;
``(7) $25,198,603,000 for fiscal year 2010; and
``(8) such sums as may be necessary for fiscal year 2011
and each subsequent fiscal year.''.
SEC. 202. STATE ELIGIBILITY.
(a) In General.--(1) Section 612(a) of the Individuals with
Disabilities Education Act (20 U.S.C. 1412(a)) is amended in the matter
preceding paragraph (1) by striking ``demonstrates to the satisfaction
of'' and inserting ``provides assurances to''.
(2) Paragraphs (1) through (11) of section 612(a) of the
Individuals with Disabilities Education Act (20 U.S.C. 1412(a)(1)-(11))
are amended to read as follows:
``(1) Free appropriate public education.--
``(A) In general.--A free appropriate public
education is available to all children with
disabilities residing in the State between the ages of
3 and 21, inclusive, including children with
disabilities who have been suspended or expelled from
school.
``(B) Limitation.--The obligation to make a free
appropriate public education available to all children
with disabilities does not apply with respect to
children--
``(i) aged 3 through 5 and 18 through 21 in
a State to the extent that its application to
those children would be inconsistent with State
law or practice, or the order of any court,
respecting the provision of public education to
children in those age ranges; and
``(ii) aged 18 through 21 to the extent
that State law does not require that special
education and related services under this part
be provided to children with disabilities who,
in the educational placement prior to their
incarceration in an adult correctional
facility--
``(I) were not actually identified
as being a child with a disability
under section 602(3) of this Act; or
``(II) did not have an
individualized education program under
this part.
``(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 attending private schools, regardless of
the severity of their disabilities, and who are in need
of special education and related services, are
identified, located, and evaluated and a practical
method is developed and implemented to determine which
children with disabilities are currently receiving
needed special education and related services.
``(B) Construction.--Nothing in this Act requires
that children be classified by their disability so long
as each child who has a disability listed in section
602 and who, by reason of that disability, needs
special education and related services is regarded as a
child with a disability under this part.
``(4) Individualized education program.--An individualized
education program, or an individualized family service plan
that meets the requirements of section 636(d), is developed,
reviewed, and revised for each child with a disability in
accordance with section 614(d).
``(5) Least restrictive environment.--
``(A) In general.--To the maximum extent
appropriate, children with disabilities, including
children in public or private institutions or other
care facilities, are educated with children who are not
disabled, and special classes, separate schooling, or
other removal of children with disabilities from the
regular educational environment occurs only when the
nature or severity of the disability of a child is such
that education in regular classes with the use of
supplementary aids and services cannot be achieved
satisfactorily.
``(B) Additional requirement.--
``(i) In general.--If the State uses a
funding mechanism by which the State
distributes State funds on the basis of the
type of setting in which a child is served, the
funding mechanism does not result in placements
that violate the requirements of subparagraph
(A).
``(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 it 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 Act 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)(8). By the third birthday of such a child,
an individualized education program or, if consistent with
section 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 637(a)(8).
``(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 and
secondary schools, 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 expended for the
provision of those services by a local
educational agency shall be equal to a
proportionate amount of Federal funds
made available under this part.
``(II) In calculating the
proportionate share of Federal funds,
the local educational agency, after
timely and meaningful consultation with
representatives of children enrolled in
private schools, conducts the child
find process to determine the number of
children with disabilities attending
private schools located in the
district.
``(III) Such services may be
provided to children with disabilities
on the premises of private, including
parochial, schools, to the extent
consistent with law.
``(IV) Each local educational
agency maintains in its records and
provides to the State educational
agency the number of children evaluated
under this paragraph and the number of
children determined to be children with
disabilities.
``(ii) Child-find requirement.--The
requirements of paragraph (3) of this
subsection (relating to child find) shall apply
with respect to children with disabilities in
the State who are enrolled in private,
including parochial, elementary and secondary
schools. 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.
``(B) Children placed in, or referred to, private
schools by public agencies.--
``(i) In general.--Children with
disabilities in private schools and facilities
are provided special education and related
services, in accordance with an individualized
education program, at no cost to their parents,
if such children are placed in, or referred to,
such schools or facilities by the State or
appropriate local educational agency as the
means of carrying out the requirements of this
part or any other applicable law requiring the
provision of special education and related
services to all children with disabilities
within such State.
``(ii) Standards.--In all cases described
in clause (i), the State educational agency
shall determine whether such schools and
facilities meet standards that apply to State
and local educational agencies and that
children so served have all the rights they
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 or secondary school
without the consent of or referral by the
public agency, a court or a hearing officer may
require the agency to reimburse the parents for
the cost of that enrollment if the court or
hearing officer finds that the agency had not
made a free appropriate public education
available to the child in a timely manner prior
to that enrollment.
``(iii) Limitation on reimbursement.--The
cost of reimbursement described in clause (ii)
may be reduced or denied--
``(I) if--
``(aa) at the most recent
IEP meeting that the parents
attended prior to removal of
the child from the public
school, the parents did not
inform the IEP Team that they
were rejecting the placement
proposed by the public agency
to provide a free appropriate
public education to their
child, including stating their
concerns and their intent to
enroll their child in a private
school at public expense; or
``(bb) 10 business days
(including any holidays that
occur on a business day) prior
to the removal of the child
from the public school, the
parents did not give written
notice to the public agency of
the information described in
division (aa);
``(II) if, prior to the parents'
removal of the child from the public
school, the public agency informed the
parents, through the notice
requirements described in section
615(b)(7), of its intent to evaluate
the child (including a statement of the
purpose of the evaluation that was
appropriate and reasonable), but the
parents did not make the child
available for such evaluation; or
``(III) upon a judicial finding of
unreasonableness with respect to
actions taken by the parents.
``(iv) Exception.--Notwithstanding the
notice requirement in clause (iii)(I), the cost
of reimbursement--
``(I) shall not be reduced or
denied for failure to provide such
notice if--
``(aa) the school prevented
the parent from providing such
notice; or
``(bb) the parents had not
received notice, pursuant to
section 615, of the notice
requirement in clause (iii)(I);
and
``(II) may, in the discretion of a
court or a hearing officer, not be
reduced or denied for failure to
provide such notice if the parent is
illiterate or cannot write in English.
``(11) State educational agency responsible for general
supervision.--
``(A) In general.--The State educational agency is
responsible for ensuring that--
``(i) the requirements of this part are
met; and
``(ii) all educational programs for
children with disabilities in the State,
including all such programs administered by any
other State or local agency--
``(I) are under the general
supervision of individuals in the State
who are responsible for educational
programs for children with
disabilities; and
``(II) meet the educational
standards of the State educational
agency.
``(B) Limitation.--Subparagraph (A) shall not limit
the responsibility of agencies in the State other than
the State educational agency to provide, or pay for
some or all of the costs of, a free appropriate public
education for any child with a disability in the State.
``(C) Exception.--Notwithstanding subparagraphs (A)
and (B), the Governor (or another individual pursuant
to State law), consistent with State law, may assign to
any public agency in the State the responsibility of
ensuring that the requirements of this part are met
with respect to children with disabilities who are
convicted as adults under State law and incarcerated in
adult prisons.''.
(3) Paragraphs (13) through (22) of section 612(a) of the
Individuals with Disabilities Education Act (20 U.S.C. 1412(a)(13)-
(22)) are amended to read as follows:
``(13) Procedural requirements relating to local
educational agency eligibility.--The State educational agency
will not make a final determination that a local educational
agency is not eligible for assistance under this part without
first affording that agency reasonable notice and an
opportunity for a hearing.
``(14) Personnel standards.--
``(A) In general.--The State educational agency has
established and maintains standards to ensure that
personnel necessary to carry out this part are
appropriately and adequately prepared and trained.
``(B) Standards described.--Such standards shall--
``(i) ensure that special education
teachers who teach in core academic subjects
are highly qualified in those subjects;
``(ii) be consistent with any State-
approved or State-recognized certification,
licensing, registration, or other comparable
requirements that apply to the professional
discipline in which those personnel are
providing special education or related
services; and
``(iii) allow paraprofessionals and
assistants who are appropriately trained and
supervised, in accordance with State law,
regulations, or written policy, in meeting the
requirements of this part to be used to assist
in the provision of special education and
related services to children with disabilities
under this part.
``(15) Performance goals and indicators.--The State--
``(A) has established goals for the performance of
children with disabilities in the State that--
``(i) promote the purposes of this Act, as
stated in section 601(d);
``(ii) are the same as the State's
definition of adequate yearly progress,
including the State's objectives for progress
by children with disabilities, under section
1111(b)(2)(C) of the Elementary and Secondary
Education Act of 1965;
``(iii) address 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
those goals described in subparagraph (A), including
measurable annual objectives for progress by children
with disabilities under section 1111(b)(2)(C) of the
Elementary and Secondary Education Act of 1965; and
``(C) will annually report to the Secretary and the
public on the progress of the State, and of children
with disabilities in the State, toward meeting the
goals established under subparagraph (A).
``(16) Participation in assessments.--
``(A) In general.--(i) All children with
disabilities are included in all general State and
district-wide assessment programs, including
assessments described under title I of the Elementary
and Secondary Education Act of 1965, with reasonable
and appropriate accommodations, where necessary and as
indicated in their respective individualized education
programs.
``(ii) The State (or, in the case of a district-
wide assessment, the local educational agency) has
developed and implemented guidelines for the provision
of accommodations described in clause (i).
``(iii) The State (or, in the case of a district-
wide assessment the local educational agency)--
``(I) has developed guidelines for the
participation of children with disabilities in
alternate assessments for those children who
cannot participate in regular assessments under
clause (i); and
``(II) conducts those alternate
assessments.
``(B) Reports.--The State educational agency (or,
in the case of a district-wide 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.
``(iii) 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 would not reveal
personally identifiable information about an
individual student), compared with the
achievement of all children, including children
with disabilities, on those assessments.
``(17) Early dispute resolution.--The State has in effect
early dispute resolution processes that are available to
parents and local educational agencies in the State, which may
include IEP facilitators and training of school personnel in
conflict resolution and parental communication skills, and
which shall include mediation and voluntary binding arbitration
pursuant to section 615(e).
``(18) 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.
``(19) 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 one 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 (18)(C) of this section 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.
``(20) 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.
``(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, that is representative of the State
population and that is composed of individuals involved
in, or concerned with, the education of children with
disabilities, including--
``(i) parents of children with disabilities
(ages birth through 21);
``(ii) individuals with disabilities;
``(iii) teachers;
``(iv) representatives of institutions of
higher education that prepare special education
and related services personnel;
``(v) State and local education officials;
``(vi) administrators of programs for
children with disabilities;
``(vii) representatives of other State
agencies involved in the financing or delivery
of related services to children with
disabilities;
``(viii) representatives of private schools
and public charter schools;
``(ix) at least one representative of a
vocational, community, or business organization
concerned with the provision of transition
services to children with disabilities; and
``(x) representatives from the State
juvenile and adult corrections agencies.
``(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 21.
``(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 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 Act.''.
(b) State Educational Agency as Provider of Free Appropriate Public
Education or Direct Services.--Section 612(b) of the Individuals with
Disabilities Education Act (20 U.S.C. 1412(b)) is amended to read as
follows:
``(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.--Section 612(c) of the
Individuals with Disabilities Education Act (20 U.S.C. 1412(c)) is
amended to read as follows:
``(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 Improving Education Results
for Children With Disabilities Act of 2003, the Secretary shall
consider such State to have met such requirement for purposes
of receiving a grant under this part.
``(2) Modifications made by state.--Subject to paragraph
(3), an application submitted by a State in accordance with
this section shall remain in effect until the State submits to
the Secretary such modifications as the State deems necessary.
This section shall apply to a modification to an application to
the same extent and in the same manner as this section applies
to the original plan.
``(3) Modifications required by the secretary.--If, after
the effective date of the Improving Education Results for
Children With Disabilities Act of 2003, the provisions of this
Act are amended (or the regulations developed to carry out this
Act are amended), or there is a new interpretation of this Act
by a Federal court or a State's highest court, or there is an
official finding of noncompliance with Federal law or
regulations, 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.--Section 612(d) of the Individuals
with Disabilities Education Act (20 U.S.C. 1412(d)) is amended to read
as follows:
``(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.--Section 612(e) of the
Individuals with Disabilities Education Act (20 U.S.C. 1412(e)) is
amended to read as follows:
``(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.''.
SEC. 203. LOCAL EDUCATIONAL AGENCY ELIGIBILITY.
Section 613 of the Individuals with Disabilities Education Act (20
U.S.C. 1413) is amended to read as follows:
``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 provides
assurances to the State educational agency that it meets each of the
following conditions:
``(1) Consistency with state policies.--The local
educational agency, in providing for the education of children
with disabilities within its jurisdiction, has in effect
policies, procedures, and programs that are consistent with the
State policies and procedures established under section 612.
``(2) Use of amounts.--
``(A) In general.--Amounts provided to the local
educational agency under this part shall be expended in
accordance with the applicable provisions of this part
and--
``(i) shall be used only to pay the excess
costs of providing special education and
related services to children with disabilities;
``(ii) shall be used to supplement State,
local, and other Federal funds and not to
supplant such funds; and
``(iii) shall not be used, except as
provided in subparagraphs (B) and (C), to
reduce the level of expenditures for the
education of children with disabilities made by
the local educational agency from local funds
below the level of those expenditures for the
preceding fiscal year.
``(B) Exception.--Notwithstanding the restriction
in subparagraph (A)(iii), a local educational agency
may reduce the level of expenditures where such
reduction is attributable to--
``(i) the voluntary departure, by
retirement or otherwise, or departure for just
cause, of special education personnel;
``(ii) a decrease in the enrollment of
children with disabilities;
``(iii) the termination of the obligation
of the agency, consistent with this part, to
provide a program of special education to a
particular child with a disability that is an
exceptionally costly program, as determined by
the State educational agency, because the
child--
``(I) has left the jurisdiction of
the agency;
``(II) has reached the age at which
the obligation of the agency to provide
a free appropriate public education to
the child has terminated; or
``(III) no longer needs such
program of special education; or
``(iv) the termination of costly
expenditures for long-term purchases, such as
the acquisition of equipment or the
construction of school facilities.
``(C) Treatment of federal funds in certain fiscal
years.--
``(i) Notwithstanding clauses (ii) and
(iii) of subparagraph (A), for any fiscal year
for which amounts appropriated to carry out
section 611 exceeds $4,100,000,000, a local
educational agency may treat as local funds,
for the purpose of such clauses, up to 20
percent of the amount of funds it receives
under this part that exceeds the amount it
received under this part for the previous
fiscal year.
``(ii) If a local educational agency
chooses to use the authority under clause (i),
then the agency shall use those local funds to
provide additional funding for programs under
the Elementary and Secondary Education Act of
1965, including, but not limited to, programs
that address student achievement, comprehensive
school reform, literacy, teacher quality and
professional development, school safety,
before- and after- school learning
opportunities, or related elementary and
secondary education programs authorized under
Federal or State law.
``(iii) 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), the State educational agency
shall prohibit the local educational agency
from treating funds received under this part as
local funds under clause (i) for that fiscal
year, only if it is authorized to do so by the
State constitution or a State statute.
``(D) Schoolwide programs under title i of the
esea.--Notwithstanding subparagraph (A) or any other
provision of this part, a local educational agency may
use funds received under this part for any fiscal year
to carry out a schoolwide program under section 1114 of
the Elementary and Secondary Education Act of 1965,
except that the amount so used in any such program
shall not exceed--
``(i) the number of children with
disabilities participating in the schoolwide
program; multiplied by
``(ii)(I) the amount received by the local
educational agency under this part for that
fiscal year; divided by
``(II) the number of children with
disabilities in the jurisdiction of that
agency.
``(3) Personnel development.--The local educational agency
shall ensure that all personnel necessary to carry out this
part are appropriately and adequately prepared, consistent with
the requirements of section 612 of this Act and section 1119 of
the Elementary and Secondary Education Act of 1965.
``(4) Permissive use of funds.--Notwithstanding paragraph
(2)(A) or section 612(a)(18)(B) (relating to commingled funds),
funds provided to the local educational agency under this part
may be used for the following activities:
``(A) 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 one or more nondisabled children
benefit from such services.
``(B) Prereferral services.--To develop and
implement comprehensive coordinated prereferral
education support services in accordance with
subsection (f).
``(C) High cost education and related services.--To
establish and implement cost or risk sharing funds,
consortiums, or cooperatives for the agency itself, or
for local educational agencies working in consortium of
which the local education agency is a part, to pay for
high cost special education and related services.
``(D) Case management and administration.--To
purchase appropriate technology for record keeping,
data collection, and related case management activities
of teachers and related services personnel who are
providing services described in the individualized
education program of children with disabilities
necessary to the implementation of those case
management activities.
``(E) Supplemental educational services for
children with disabilities in schools designated for
improvement.--For the reasonable additional expenses
(as determined by the local education agency) of any
necessary accommodations to allow children with
disabilities who are being educated in a school
identified for school improvement under section 1116(b)
of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6316(b)) to be provided supplemental
educational services under section 1116(e) of such Act
on an equitable basis.
``(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 schools in the same manner as it serves children
with disabilities in its other schools, including
providing supplemental and related services on site at
the charter school when the local educational agency
has a policy or practice of providing those services on
site to its other schools; and
``(B) provides funds under this part to those
schools in accordance with the State's charter law,
including distributing proportional funding where
allowed.
``(6) 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.
``(7) Public information.--The local educational agency
shall make available to parents of children with disabilities
and to the general public all documents relating to the
eligibility of such agency under this part.
``(b) Exception for Prior Local Plans.--
``(1) In general.--If a local educational agency or State
agency has on file with the State educational agency policies
and procedures that demonstrate that such local educational
agency, or such State agency, as the case may be, meets any
requirement of subsection (a), including any policies and
procedures filed under this part as in effect before the
effective date of the Improving Education Results for Children
With Disabilities Act of 2003, 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 it submits to the State educational agency such
modifications as the local educational agency deems necessary.
``(3) Modifications required by state educational agency.--
If, after the date of the enactment of the Improving Education
Results for Children With Disabilities Act of 2003, the
provisions of this Act are amended (or the regulations
developed to carry out this Act are amended), or there is a new
interpretation of this Act by Federal or State courts, or there
is an official finding of noncompliance with Federal or State
law or regulations, 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, 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 would be ineligible under
this section because the local educational agency would
not be able to establish and maintain programs of
sufficient size and scope to effectively meet the needs
of children with disabilities.
``(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 it is
explicitly permitted to do so under the State's charter
school statute.
``(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(g) 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) Prereferral 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, in combination with other
amounts (which may include amounts other than education funds),
to develop and implement comprehensive coordinated prereferral
educational support services for students in kindergarten
through grade 12 (with a particular emphasis on students in
grades kindergarten through 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 comprehensive
coordinated prereferral educational services under this
subsection, a local educational agency may carry out the
following activities:
``(A) Professional development (which may be
provided by entities other than local educational
agencies) for teachers to enable them to deliver
scientifically based academic and behavioral
interventions, including scientifically based literacy
instruction.
``(B) Providing educational and behavioral
evaluations, services, and supports, including
scientifically based literacy instruction.
``(3) Exclusion.--Nothing in this subsection shall be
construed to either limit or create a right to a free
appropriate public education under this part.
``(4) Reporting.--Each local educational agency that
develops and maintains comprehensive coordinated pre referral
educational support 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 Act.
``(5) Coordination with the elementary and secondary
education act of 1965.--
``(A) In general.--Funds made available to carry
out this subsection may be used to carry out
comprehensive coordinated pre-referral educational
support services aligned with activities funded by, and
carried out under, the Elementary and Secondary
Education Act of 1965, such as Reading First and Early
Reading First.
``(B) Maintanence of effort.--Funds used under this
section shall be used to supplement, and not supplant,
funds made available under the Elementary and Secondary
Education Act of 1965.
``(g) Direct Services by the State Educational Agency.--
``(1) In general.--A State educational agency shall use the
payments that would otherwise have been available to a local
educational agency or to a State agency to provide special
education and related services directly to children with
disabilities residing in the area served by that local agency,
or for whom that State agency is responsible, if the State
educational agency determines that the local education agency
or State agency, as the case may be--
(A) has not provided the information needed to
establish the eligibility of such agency under this
section;
(B) is unable to establish and maintain programs of
free appropriate public education that meet the
requirements of subsection (a);
``(C) is unable or unwilling to be consolidated
with one or more local educational agencies in order to
establish and maintain such programs; or
``(D) has one or more children with disabilities
who can best be served by a regional or State program
or service-delivery system designed to meet the needs
of such children.
``(2) Manner and location of education and services.--The
State educational agency may provide special education and
related services under paragraph (1) in such manner and at such
locations (including regional or State centers) as the State
agency considers appropriate. Such education and services shall
be provided in accordance with this part.
``(h) State Agency Eligibility.--Any State agency that desires to
receive a subgrant for any fiscal year under section 611(g) 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
one school to another, the transmission of any of the child's records
must 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.''.
SEC. 204. EVALUATIONS, ELIGIBILITY DETERMINATIONS, INDIVIDUALIZED
EDUCATION PROGRAMS, AND EDUCATIONAL PLACEMENTS.
Section 614 of the Individuals with Disabilities Education Act (20
U.S.C. 1414) is amended to read as follows:
``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, a
State educational agency, other State agency as
appropriate, or local educational agency may initiate a
request for an initial evaluation to determine if the
child is a child with a disability.
``(C) Procedures.--Such initial evaluation shall
consist of procedures--
``(i) to determine whether a child is a
child with a disability (as defined in section
602(3)); and
``(ii) to determine the educational needs
of such child.
``(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(3)(A) or 602(3)(B) 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 parents of such child do not
provide consent for an initial
evaluation under clause (i)(I), or the
parents fail to respond to a request to
provide the consent, the local
educational agency may pursue the
initial evaluation of the child through
the procedures described in section
615, except to the extent inconsistent
with State law relating to such
parental consent.
``(II) For services.--If the
parents of such child do not provide
consent for services under clause
(i)(II), or the parents fail to respond
to a request to provide the consent,
the local educational agency shall not
provide special education and related
services to the child through the
procedures described in section 615.
``(III) Effect on agency
obligations.--In any case for which
there is an absence of consent for an
initial evaluation under subclause (I),
or for which there is an absence of
consent for services under subclause
(II)--
``(aa) the local
educational agency shall not be
required to convene an IEP
meeting or develop an IEP under
this section for the child; and
``(bb) the local
educational agency shall not be
considered to be in violation
of any requirement under this
part (including the requirement
to make available a free
appropriate public education to
the child) with respect to the
lack of an initial evaluation
of the child, an IEP meeting
with respect to the child, or
the development of an IEP under
this section for the child.
``(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 needs,
including improved academic achievement, of the
child warrant a reevaluation; or
``(ii) if the child's parent or teacher
requests a reevaluation.
``(B) Limitation.--A reevaluation conducted under
subparagraph (A) shall occur--
``(i) no more than once a year, unless the
parent and the local educational agency agree
otherwise; and
``(ii) at least once every three 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 parent 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 multiple up-to-date measures and
assessments to gather relevant functional,
developmental, and academic information, including
information provided by the parent, to 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; and
``(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 measures
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, to
the extent practicable, in the language and
form most likely to yield accurate academic and
developmental data;
``(iii) are used for the designed purposes
for which the assessments or measures are valid
and reliable;
``(iv) are administered by trained and
knowledgeable personnel; and
``(v) are administered in accordance with
any instructions provided by the producer of
such tests;
``(B) the child is assessed in all areas for which
there is a reasonable basis to believe that a
disability may exist; and
``(C) assessment tools and strategies that provide
relevant information that directly assists persons in
determining the educational needs of the child are
provided.
``(4) Determination of eligibility and educational need.--
Upon completion of the administration of assessments and other
evaluation measures used in the initial evaluation--
``(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 will be
given to the parent.
``(5) Special rule for eligibility determination.--In
making a determination of eligibility under paragraph (4)(A), a
child shall not be determined to be a child with a disability
if the determinant factor for such determination is--
``(A) lack of scientifically-based instruction
practices and programs that contain the essential
components of reading instruction (as that term is
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 of
this Act, or any other provision of law, when
determining whether a child has a specific learning
disability as defined under this Act, the local
educational agency shall not be required to take into
consideration whether the 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 which determines
if a child responds to scientific, research-based
intervention.
``(c) Additional Requirements For Evaluation and Reevaluations.--
``(1) Review of existing evaluation data.--As part of an
initial evaluation (if appropriate) and as part of any
reevaluation under this section, the IEP Team described in
subsection (d)(1)(B) and other qualified professionals, as
appropriate, shall--
``(A) review existing evaluation data on the child,
including evaluations and information provided by the
parents of the child, current classroom-based local or
State assessments, and classroom-based observations,
and teacher and related services providers observation;
and
``(B) on the basis of that review, and input from
the child's parents, identify what additional data, if
any, are needed to determine--
``(i) whether the child 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 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 it; and
``(ii) the right of such parents to request
an assessment to determine whether the child
continues to be a child with a disability and
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 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.
``(d) Individualized Education Programs.--
``(1) Definitions.--As used in this title:
``(A) Individualized education program.--
``(i) In general.--The term `individualized
education program' or `IEP' means a written
statement for each child with a disability that
is developed, reviewed, and revised in
accordance with this section and that
includes--
``(I) a statement of the child's
present levels of academic achievement
and developmental needs, including--
``(aa) how the child's
disability affects the child's
involvement and progress in the
general education curriculum;
or
``(bb) for preschool
children, as appropriate, how
the disability affects the
child's participation in
appropriate activities;
``(II) a statement of measurable
annual goals designed to--
``(aa) enable the child to
be involved in and make
progress in the general
education curriculum; and
``(bb) meet the child's
other educational needs that
result from the child's
disability;
``(III) a statement of the special
education and related services and
supplementary aids and services, based
on peer-reviewed research, 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
paragraph;
``(IV) 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
(III)(cc);
``(V)(aa) a statement of any
individual reasonable and appropriate
accommodations in the administration of
State or districtwide assessments of
student achievement that are necessary
to measure the academic achievement of
the child consistent with section
612(a)(16)(A)(ii); and
``(bb) if the IEP Team determines
that the child will not participate in
a particular State or districtwide
assessment of student achievement (or
part of such an assessment), a
statement of--
``(AA) why that assessment
is not appropriate for the
child; and
``(BB) how the child will
be assessed consistent with
612(a)(16)(A);
``(VI) the projected date for the
beginning of the services and
modifications described in subclause
(III), and the anticipated frequency,
location, and duration of those
services and modifications;
``(VII)(aa) beginning at age 14,
and updated annually, a statement of
the transition service needs of the
child under the applicable components
of the child's IEP that focuses on the
child's courses of study (such as
participation in advanced-placement
courses or a vocational education
program);
``(bb) beginning at age 16 (or
younger, if determined appropriate by
the IEP Team), a statement of needed
transition services for the child,
including, when appropriate, a
statement of the interagency
responsibilities or any needed
linkages; and
``(cc) beginning at least one year
before the child reaches the age of
majority under State law, a statement
that the child has been informed of his
or her rights under this title, if any,
that will transfer to the child on
reaching the age of majority under
section 615(m); and
``(VIII) a statement of--
``(aa) how the child's
progress toward the annual
goals described in subclause
(II) will be measured; and
``(bb) how the child's
parents will be regularly
informed (by such means as
periodic report cards), at
least as often as parents are
informed of their nondisabled
children's progress, of the
sufficiency of their child's
progress toward the annual
goals described in subclause
(II).
``(ii) Rule of construction.--Nothing in
this subparagraph shall be construed to
require--
``(I) that additional information
be included in a child's IEP beyond
what is explicitly required in this
subparagraph; and
``(II) the IEP Team to include
information under one 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) a regular education teacher of such
child (if the child is, or may be,
participating the majority of the day in the
regular education environment), but such
teacher shall not be required to attend a
meeting or part of a meeting of the IEP Team
involving issues not related to the child's
participation in the regular education
environment, nor shall multiple regular
education teachers, if the child has more than
one regular education teacher, be required to
attend a meeting, or part of a meeting, of the
IEP team;
``(iii) at least one special education
teacher, or where appropriate, at least one
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.
``(2) Requirement that program be in effect.--
``(A) In general.--At the beginning of each school
year, each local educational agency, State educational
agency, or other State agency, as the case may be,
shall have in effect, for each child with a disability
in its jurisdiction, an individualized education
program, as defined in paragraph (1)(A).
``(B) Program for child aged 3 through 5.--In the
case of a child with a disability aged 3 through 5 (or,
at the discretion of the State educational agency, a 2
year-old child with a disability who will turn age 3
during the school year), an individualized family
service plan that contains the material described in
section 636, and that is developed in accordance with
this section, may serve as the IEP of the child if
using that plan as the IEP is--
``(i) consistent with State policy; and
``(ii) agreed to by the agency and the
child's parents.
``(3) Development of iep.--
``(A) In general.--In developing each child's IEP,
the IEP Team, subject to subparagraph (C), shall
consider--
``(i) the results of the initial evaluation
or most recent evaluation of the child;
``(ii) the academic and developmental needs
of the child;
``(iii) the strengths of the child; and
``(iv) the concerns of the parents for
enhancing the education of their child.
``(B) Consideration of special factors.--The IEP
Team shall--
``(i) in the case of a child whose behavior
impedes his or her 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 requires
assistive technology devices and services.
``(C) Requirement with respect to regular education
teacher.--The regular education teacher of the child,
if a member of the IEP Team pursuant to paragraph
(1)(B)(ii), 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)(III).
``(D) IEP team attendance.--The parent of a child
with a disability and the local educational agency may
jointly excuse any member of the IEP Team from
attending all or part of an IEP meeting if they agree
that the member's attendance is not necessary. The IEP
Team may obtain the member's input prior to an IEP
meeting from which the member is excused.
``(E) Agreement on meeting.--In making changes to a
child's IEP after the annual IEP meeting, the parent of
a child with a disability and the local educational
agency may agree not to reconvene the IEP team and
instead develop a written document to amend or modify
the child's current IEP.
``(F) Consolidation of iep team meetings.--To the
extent possible, the local educational agency shall
encourage the consolidation of IEP Team meetings for a
child.
``(G) Amendments.--Changes to the IEP may be made
either by the entire IEP Team or, as provided in
subparagraph (E), by amending the IEP rather than by
redrafting the entire IEP.
``(4) Review and revision of iep.--
``(A) In general.--The local educational agency
shall ensure that, subject to subparagraph (B), the IEP
Team--
``(i) reviews the child's IEP periodically,
but not less than annually, to determine
whether the annual goals for the child are
being achieved; and
``(ii) 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.--The regular education teacher of the child,
if a member of the IEP Team, shall, consistent with
section 614(d)(1)(B)(ii), participate in the review and
revision of the IEP of the child.
``(5) Multi-year iep.--
``(A) Development.--The local educational agency
may offer to the parent of a child with a disability
the option of developing a comprehensive multi-year
IEP, not to exceed 3 years, that is designed to cover
the natural transition points for the child. With the
consent of the parent, the IEP Team shall develop an
IEP, as described in paragraphs (1) and (3), that is
designed to serve the child for the appropriate multi-
year period, which includes a statement of--
``(i) 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
``(ii) measurable annual goals for
determining progress toward meeting the goals
described in clause (i).
``(B) Review and revision of multi-year iep.--
``(i) Requirement.--The IEP Team shall
conduct a review under paragraph (4) of the
child's multi-year IEP at each of the child's
natural transition points.
``(ii) Streamlined annual review process.--
In years other than a child's natural
transition points, the local educational agency
shall ensure that the IEP Team--
``(I) provides an annual review of
the child's IEP to determine the
child's current levels of progress and
determine whether the annual goals for
the child are being achieved; and
``(II) amends the IEP, as
appropriate, to enable the child to
continue to meet the measurable goals
set out in the IEP.
``(iii) Comprehensive review process.--If
the IEP Team determines, on the basis of the
review under clause (i), that the child is not
making sufficient progress toward the goals
described in subparagraph (A), the local
educational agency shall ensure that the IEP
Team reviews the IEP under paragraph (4),
within 30 calendar days.
``(iv) Parental preference.--At the request
of the parent, the IEP Team shall conduct a
review under paragraph (4) of the child's
multi-year IEP rather than a streamlined annual
review under clause (ii).
``(C) Definition.--As used 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
high school grades, and from high school grades to
post-secondary activities, but in no case longer than
three 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)(II), the local
educational agency shall reconvene the IEP Team to identify
alternative strategies to meet the transition objectives for
the child set out in that program.
``(7) Children with disabilities in adult prisons.--
``(A) In general.--The following requirements do
not apply to children with disabilities who are
convicted as adults under State law and incarcerated in
adult prisons:
``(i) The requirements contained in section
612(a)(16) and paragraph (1)(A)(i)(V) of this
subsection (relating to participation of
children with disabilities in general
assessments).
``(ii) The requirements of items (aa) and
(bb) of paragraph (1)(A)(i)(VII) of this
subsection (relating to transition planning and
transition services), do not apply with respect
to such children whose eligibility under this
part will end, because of their age, before
they will be released from prison.
``(B) Additional requirement.--If a child with a
disability is convicted as an adult under State law and
incarcerated in an adult prison, the child's IEP Team
may modify the child's IEP or placement notwithstanding
the requirements of sections 612(a)(5)(A) and
614(d)(1)(A) if the State has demonstrated a bona fide
security or compelling penological interest that cannot
otherwise be accommodated.
``(e) Educational Placements.--Each local educational agency or
State educational agency shall ensure that the parents of each child
with a disability are members of any group that makes decisions on the
educational placement of their child.
``(f) Alternative Means of Meeting Participation.--When conducting
IEP team meetings and placement meetings pursuant to this section and
615, 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. 205. PROCEDURAL SAFEGUARDS.
(a) Establishment of Procedures.--Section 615(a) of the Individuals
with Disabilities Education Act (20 U.S.C. 1415(a)) is amended to read
as follows:
``(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 free appropriate public education by such agencies.''.
(b) Types of Procedures.--Section 615(b) of the Individuals with
Disabilities Education Act (20 U.S.C. 1415(b)) is amended to read as
follows:
``(b) Types of Procedures.--The procedures required by this section
shall include--
``(1) an opportunity for the parents of a child with a
disability to examine all records relating to such child and to
participate in meetings with respect to the identification,
evaluation, and educational placement of the child, and the
provision of a free appropriate public education to such child,
and to obtain an independent educational evaluation of the
child;
``(2) procedures to protect the rights of the child
whenever the parents of the child are not known, the agency
cannot, after reasonable efforts, locate the parents, or the
child is a ward of the State, including the assignment of an
individual (who shall not be an employee of the State
educational agency, the local educational agency, or any other
agency that is involved in the education or care of the child)
to act as a surrogate for the parents;
``(3) written prior notice to the parents of the child
whenever such agency--
``(A) proposes to initiate or change; or
``(B) refuses to initiate or change;
the identification, evaluation, or educational placement of the
child, in accordance with subsection (c), or the provision of a
free appropriate public education to the child;
``(4) procedures designed to 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 and voluntary binding
arbitration, in accordance with subsection (e);
``(6) an opportunity to present complaints--
``(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 set forth a violation that occurred not
more than one year before the complaint is filed;
``(7)(A) procedures that require the parent of a child with
a disability, or the attorney representing the child, to
provide notice (which shall remain confidential)--
``(i) to the local educational agency or State
educational agency (if the State educational agency is
the direct provider of services pursuant to section
613(g)), in the complaint filed under paragraph (6);
and
``(ii) that shall include--
``(I) the name of the child, the address of
the residence of the child, and the name of the
school the child is attending;
``(II) a description of the specific issues
regarding the nature of the problem of the
child relating to such proposed initiation or
change, including facts relating to such
problem; and
``(III) a proposed resolution of the
problem to the extent known and available to
the parents at the time;
``(B) a requirement that a parent of a child with a
disability may not have a due process hearing until the parent,
or the attorney representing the child, files a notice that
meets the requirements of this paragraph; and
``(8) procedures that require the State educational agency
to develop a model form to assist parents in filing a complaint
in accordance with paragraph (7).''.
(c) Content of Prior Written Notice.--Section 615(c) of the
Individuals with Disabilities Education Act (20 U.S.C. 1415(c)) is
amended to read as follows:
``(c) Content of Prior Written Notice.--
``(1) Content.--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, test, 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; and
``(D) sources for parents to contact to obtain
assistance in understanding the provisions of this
part.
``(2) Rule of construction.--The failure to provide notice
under subsection (b)(3) shall not, in and of itself, result in
a finding by a hearing officer at a due process hearing
conducted pursuant to subsection (f), that the local
educational agency's proposed action was not appropriate.''.
(d) Procedural Safeguards Notice.--Section 615(d) of the
Individuals with Disabilities Education Act (20 U.S.C. 1415(d)) is
amended to read as follows:
``(d) Procedural Safeguards Notice.--
``(1) In general.--A copy of the procedural safeguards
available to the parents of a child with a disability shall be
given to the parents, at a minimum--
``(A) upon initial referral or parental request for
evaluation;
``(B) annually, at the beginning of the school
year; and
``(C) upon written request by a parent.
``(2) Contents.--The procedural safeguards notice shall
include a description 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) opportunity to present complaints;
``(F) the child's placement during pendency of due
process proceedings;
``(G) procedures for students who are subject to
placement in an interim alternative educational
setting;
``(H) requirements for unilateral placement by
parents of children in private schools at public
expense;
``(I) mediation, early dispute resolution, and
voluntary binding arbitration;
``(J) due process hearings, including requirements
for disclosure of evaluation results and
recommendations;
``(K) State-level appeals (if applicable in that
State);
``(L) civil actions; and
``(M) attorneys' fees.''.
(e) Mediation and Voluntary Binding Arbitration.--Section 615(e) of
the Individuals with Disabilities Education Act (20 U.S.C. 1415(e)) is
amended to read as follows:
``(e) Mediation and Voluntary Binding Arbitration.--
``(1) Mediation.--
``(A) 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.
``(B) Requirements.--Such procedures shall meet the
following requirements:
``(i) 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.
``(ii) A local educational agency or a
State agency may establish procedures to offer
to parents who choose not to use the mediation
process, an opportunity to meet, at a time and
location convenient to the parents, with a
disinterested party who is under contract
with--
``(I) a parent and community
training and information center in the
State established under section 671; or
``(II) an appropriate alternative
dispute resolution entity;
to encourage the use, and explain the benefits,
of the mediation process to the parents.
``(iii) 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.
``(iv) The State shall bear the cost of the
mediation process, including the costs of
meetings described in clause (ii).
``(v) 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.
``(vi) An agreement reached by the parties
to the dispute in the mediation process shall
be set forth in a written mediation agreement.
``(vii) Discussions that occur during the
mediation process shall be confidential and may
not be used as evidence in any subsequent due
process hearings or civil proceedings and the
parties to the mediation process may be
required to sign a confidentiality pledge prior
to the commencement of such process.
``(2) Voluntary binding arbitration.--
``(A) In general.--A State educational agency that
receives assistance under this part shall ensure that
procedures are established and implemented to allow
parties to disputes involving any matter described in
subsection (b)(6) to resolve such disputes through
voluntary binding arbitration, which shall be available
when a hearing is requested under subsection (f) or
(k).
``(B) Requirements.--Such procedures shall meet the
following requirements:
``(i) The procedures shall ensure that the
voluntary binding arbitration process--
``(I) is voluntarily and knowingly
agreed to in writing by the parties;
and
``(II) is conducted by a qualified
and impartial arbitrator.
``(ii) A local educational agency or a
State agency shall ensure that parents who
choose to use voluntary binding arbitration
understand that the process is in lieu of a due
process hearing under subsection (f) or (k) and
that the decision made by the arbitrator is
final, unless there is fraud by a party or the
arbitrator or misconduct on the part of the
arbitrator.
``(iii) The parties shall jointly agree to
use an arbitrator from a list that the State
shall maintain of individuals who are qualified
arbitrators and knowledgeable in laws and
regulations relating to the provision of
special education and related services.
``(iv) The arbitration shall be conducted
according to State law on arbitration or, if no
such applicable State law, consistent with the
Revised Uniform Arbitration Act.
``(v) The voluntary binding arbitration
shall be scheduled in a timely manner and shall
be held in a location that is convenient to the
parties to the dispute.''.
(f) Impartial Due Process Hearing.--Section 615(f) of the
Individuals with Disabilities Education Act (20 U.S.C. 1415(f)) is
amended to read as follows:
``(f) Impartial Due Process Hearing.--
``(1) In general.--
``(A) Access to hearing.--Whenever a complaint has
been received under subsection (b)(6) or (k) of this
section, 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.
``(B) Resolution session.--
``(i) In general.--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 a
team of qualified professionals consisting of
individuals listed in section 614(d)(1)(B)--
``(I) within 15 days of receiving
notice of the parents' complaint; and
``(II) where the parents of the
child discuss their complaint, and the
specific issues that form the basis of
the complaint, and the local
educational agency is provided the
opportunity to resolve the complaint;
unless the parents and the local educational
agency agree in writing to waive such meeting.
``(ii) Due process 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 shall occur.
``(iii) Definition of meeting.--A meeting
conducted pursuant to clause (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
subsection (h)(3).
``(2) Disclosure of evaluations and recommendations.--
``(A) In general.--At least 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) Limitation on hearing.--
``(A) Hearing officer.--A hearing conducted
pursuant to paragraph (1)(A) may not be conducted by--
``(i) an employee of the State educational agency
involved in the education or care of the child; or
``(ii) any person having a personal or professional
interest that would conflict with his or her
objectivity in the hearing.
``(B) Subject matter of hearing.--The parents of
the child shall not be allowed to raise issues at the
due process hearing that were not raised in the
complaint or discussed during the meeting conducted
pursuant to subparagraph (1)(B), unless the local
educational agency agrees otherwise.
``(C) Decision of hearing officer.--A decision made
by a hearing officer must be based on a determination
of whether or not the child received a free appropriate
public education.''.
(g) Appeal.--Section 615 of the Individuals with Disabilities
Education Act (20 U.S.C. 1415) is amended by striking subsection (g).
(h) Safeguards.--Section 615 of the Individuals with Disabilities
Education Act (20 U.S.C. 1415) is amended--
(1) by redesignating subsection (h) as subsection (g); and
(2) by amending subsection (g) (as redesignated) to read as
follows:
``(g) Safeguards.--Any party to a hearing conducted pursuant to
subsection (f) or (j) shall be accorded--
``(1) the right to be represented by counsel and by non-
attorney advocates and to be accompanied and advised by
individuals with special knowledge or training with respect to
the problems of children with disabilities;
``(2) the right to present evidence and confront, cross-
examine, and compel the attendance of witnesses;
``(3) the right to a written, or, at the option of the
parents, electronic verbatim record of such hearing; and
``(4) the right to written, or, at the option of the
parents, electronic findings of fact and decisions (which
findings and decisions shall be made available to the public
consistent with the requirements of section 617(c)) (relating
to the confidentiality of data, information, and records).''.
(i) Administrative Procedures.--Section 615 of the Individuals with
Disabilities Education Act (20 U.S.C. 1415) is amended by redesignating
subsection (i) as subsection (h).
(j) Maintenance of Current Educational Placement.--Section 615 of
the Individuals with Disabilities Education Act (20 U.S.C. 1415) is
amended--
(1) by redesignating subsection (j) as subsection (i); and
(2) by amending subsection (i) (as redesignated) to read as
follows:
``(i) Maintenance of Current Educational Placement.--Except as
provided in subsection (j)(4), during the pendency of any proceedings
conducted pursuant to this section, unless the State or local
educational agency and the parents otherwise agree, the child shall
remain in the then-current educational placement of such child, or, if
applying for initial admission to a public school, shall, with the
consent of the parents, be placed in the public school program until
all such proceedings have been completed.''.
(k) Placement in Alternative Educational Setting.--Section 615 of
the Individuals with Disabilities Education Act (20 U.S.C. 1415) is
amended--
(1) by redesignating subsection (k) as subsection (j); and
(2) by amending subsection (j) (as redesignated) to read as
follows:
``(j) Placement in Alternative Educational Setting.--
``(1) Authority of school personnel.--
``(A) In general.--School personnel under this
section may order a change in the placement of a child
with a disability who violates a code of student
conduct policy to an appropriate interim alternative
educational setting, another setting, or suspension,
for not more than 10 school days (to the extent such
alternatives would be applied to children without
disabilities).
``(B) Additional authority.--Subject to
subparagraph (C), and notwithstanding any other
provision of this Act, school personnel under this
section may order a change in the placement of a child
with a disability who violates a code of student
conduct policy to an appropriate interim alternative
educational setting selected 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, for not more than 45 school days (to the
extent such alternative and such duration would be
applied to children without disabilities), except that
the change in placement may last beyond 45 school days
if required by State law or regulation for the
violation in question, to ensure the safety and
appropriate educational atmosphere in the schools under
the jurisdiction of the local educational agency.
``(C) Services.--A child with a disability who is
removed from the child's current placement under
subparagraph (B) shall--
``(i) continue to receive educational
services selected 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) continue to receive behavioral
intervention services designed to address the
behavior violation so that it does not recur.
``(2) Determination of setting.--The alternative
educational setting described in paragraph (1)(B) shall be
determined by the IEP Team.
``(3) Parent appeal.--
``(A) In general.--If the parent of a child with a
disability disagrees with any decision regarding
placement under this section, the parent may request a
hearing.
``(B) Hearing.--The State or local educational
agency shall arrange for a hearing in any case
described in this subsection when requested by a
parent.
``(4) Placement during appeals.--When a parent requests a
hearing regarding a disciplinary action described in paragraph
(1)(B) to challenge the interim alternative educational setting
or the violation of the code of student conduct policy, the
child shall remain in the interim alternative educational
setting pending the decision of the hearing officer or until
the expiration of the time period provided for in paragraph
(1)(B), whichever occurs first, unless the parent and the State
or local educational agency agree otherwise.
``(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
policy, may assert any of the protections provided for
in this part if the local educational agency had
knowledge (as determined in accordance with this
paragraph) that the child was a child with a disability
before the behavior that precipitated the disciplinary
action occurred.
``(B) Basis of knowledge.--A local educational
agency shall be deemed to have knowledge that a child
is a child with a disability if, before the behavior
that precipitated the disciplinary action occurred--
``(i) the parent of the child has expressed
concern in writing (unless the parent is
illiterate or has a disability that prevents
compliance with the requirements contained in
this clause) to personnel of the appropriate
educational agency that the child is in need of
special education and related services;
``(ii) the parent of the child has
requested an evaluation of the child pursuant
to section 614; or
``(iii) the teacher of the child, or other
personnel of the local educational agency, has
expressed concern in writing about the behavior
or performance of the child to the director of
special education of such agency or to other
personnel of the agency.
``(C) 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)) prior to taking disciplinary
measures against the child, the child may be
subjected to disciplinary measures applied to
children without disabilities who engaged in
comparable behaviors consistent with clause
(ii).
``(ii) Limitations.--If a request is made
for an evaluation of a child during the time
period in which the child is subjected to
disciplinary measures under paragraph (1) or
(2), 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) In general.--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) Transmission 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 it
reports the crime.''.
(l) Rule of Construction.--Section 615 of the Individuals with
Disabilities Education Act (20 U.S.C. 1415) is amended by redesignating
subsection (l) as subsection (k).
(m) Rule of Construction.--Section 615 of the Individuals with
Disabilities Education Act (20 U.S.C. 1415) is amended--
(1) by redesignating subsection (m) as subsection (l); and
(2) by amending subsection (l) (as redesignated) to read as
follows:
``(l) Transfer of Parental Rights at Age of Majority.--
``(1) In general.--A State that receives amounts from a
grant under this part may provide that, when a child with a
disability reaches the age of majority under State law (except
for a child with a disability who has been determined to be
incompetent under State law)--
``(A) the public agency shall provide any notice
required by this section to both the individual and the
parents;
``(B) all other rights accorded to parents under
this part transfer to the child;
``(C) the agency shall notify the individual and
the parents of the transfer of rights; and
``(D) all rights accorded to parents under this
part transfer to children who are incarcerated in an
adult or juvenile Federal, State, or local correctional
institution.
``(2) Special rule.--If, under State law, a child with a
disability who has reached the age of majority under State law,
who has not been determined to be incompetent, but who is
determined not to have the ability to provide informed consent
with respect to the educational program of the child, the State
shall establish procedures for appointing the parent of the
child, or if the parent is not available, another appropriate
individual, to represent the educational interests of the child
throughout the period of eligibility of the child under this
part.''.
SEC. 206. ADMINISTRATION.
Section 617 of the Individuals with Disabilities Education Act (20
U.S.C. 1417) is amended to read as follows:
``SEC. 617. ADMINISTRATION.
``(a) Responsibilities of Secretary.--In carrying out this part,
the Secretary shall--
``(1) cooperate with, and (directly or by grant or
contract) furnish technical assistance necessary to, the State
in matters relating to--
``(A) the education of children with disabilities;
and
``(B) carrying out this part; and
``(2) provide short-term training programs and institutes.
``(b) Confidentiality.--The Secretary shall take appropriate
action, in accordance with section 444 of the General Education
Provisions Act (20 U.S.C. 1232g), to assure the protection of the
confidentiality of any personally identifiable data, information, and
records collected or maintained by the Secretary and by State and local
educational agencies pursuant to this part.
``(c) Personnel.--The Secretary is authorized to hire qualified
personnel necessary to carry out the Secretary's duties under
subsection (a) and under sections 618 and 661 without regard to the
provisions of title 5, United States Code, relating to appointments in
the competitive service and without regard to chapter 51 and subchapter
III of chapter 53 of such title relating to classification and general
schedule pay rates, except that no more than twenty such personnel
shall be employed at any time.
``(e) Pilot Program.--The Secretary is authorized to grant waivers
of paperwork requirements under this part for a period of time not to
exceed 4 years with respect to not more than 10 States based on
proposals submitted by States for addressing reduction of paperwork and
non-instructional time spent fulfilling statutory and regulatory
requirements.
``(f) Report.--The Secretary shall include in the annual report to
Congress under section 426 of the Department of Education Organization
Act information related to the effectiveness of waivers granted under
subsection (e)--
``(1) in reducing the paperwork burden on teachers,
administrators, and related services providers and non-
instructional time spent by teachers in complying with this
part, including any specific recommendations for broader
implementation; and
``(2) in enhancing longer-term educational planning,
improving positive outcomes for children with disabilities,
promoting collaboration between IEP Team members, and ensuring
satisfaction of family members, including any specific
recommendations for broader implementation.
``(g) Model Forms.--Not later than the date on which the Secretary
publishes final regulations to implement this part (as amended by the
Improving Education Results for Children With Disabilities Act of
2003), the Secretary shall publish and disseminate widely to States,
local educational agencies, and parent and community training and
information centers--
``(1) a model individualized education program form;
``(2) a model form for the procedural safeguards notice
described in section 615(d); and
``(3) a model form for the prior written notice described
in section 615(b)(3);
that would be consistent with the requirements of this part and be
deemed to be sufficient to meet such requirements.''.
SEC. 207. PROGRAM INFORMATION.
Section 618 of the Individuals with Disabilities Education Act (20
U.S.C. 1418) is amended to read as follows:
``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--
``(1)(A) on--
``(i) the number of children with disabilities, by
race, ethnicity, and disability category, who are
receiving a free appropriate public education;
``(ii) the number of children with disabilities, by
race and ethnicity, who are receiving early
intervention services;
``(iii) the number of children with disabilities,
by race, ethnicity, and disability category, who are
participating in regular education;
``(iv) the number of children with disabilities, by
race, ethnicity, and disability category, who are in
separate classes, separate schools or facilities, or
public or private residential facilities;
``(v) the number of children with disabilities, by
race, ethnicity, and disability category, who, for each
year of age from age 14 to 21, stopped receiving
special education and related services because of
program completion or other reasons and the reasons why
those children stopped receiving special education and
related services;
``(vi) the number of children with disabilities, by
race and ethnicity, who, from birth through age 2,
stopped receiving early intervention services because
of program completion or for other reasons;
``(vii)(I) the number of children with
disabilities, by race, ethnicity, and disability
category, who under subparagraph (A) or (B) of section
615(j)(1), are removed to an interim alternative
educational setting;
``(II) the acts or items precipitating those
removals; and
``(III) the number of children with disabilities
who are subject to long-term suspensions or expulsions;
``(viii) the number of complaints resolved through
voluntary binding arbitration; and
``(ix) the number of mediations held and the number
of settlement agreements reached through mediation;
``(B) on the number of infants and toddlers, by race and
ethnicity, who are at risk of having substantial developmental
delays (as defined in section 632), and who are receiving early
intervention services under part C; and
``(C) on the number of children served with funds under
section 613(f); and
``(2) on any other information that may be required by the
Secretary.
``(b) Sampling.--The Secretary may permit States and the Secretary
of the Interior to obtain the data described in subsection (a) through
sampling.
``(c) Disproportionality.--
``(1) In general.--Each State that receives assistance
under this part, and the Secretary of the Interior, shall
provide for the collection and examination of data to determine
if significant disproportionality based on race is occurring in
the State with respect to--
``(A) the identification of children as children
with disabilities, including the identification of
children as children with disabilities in accordance
with a particular impairment described in section
602(3); and
``(B) the placement in particular educational
settings of such children.
``(2) Review and revision of policies, practices, and
procedures.--In the case of a determination of significant
disproportionality with respect to the identification of
children as children with disabilities, or the placement in
particular educational settings of such children, in accordance
with paragraph (1), the State or the Secretary of the Interior,
as the case may be--
``(A) shall provide for the review and, if
appropriate, revision of the policies, procedures, and
practices used in such identification or placement to
ensure that such policies, procedures, and practices
comply with the requirements of this Act; and
``(B) shall require any local educational agency
identified under paragraph (1) to reserve the maximum
amount of funds under section 613(f) to provide
comprehensive coordinated pre-referral support services
to serve children in the local educational agency,
particularly children in those groups that were
significantly overidentified under paragraph (1).''.
SEC. 208. PRESCHOOL GRANTS.
Section 619 of the Individuals with Disabilities Education Act (20
U.S.C. 1419) is amended to read as follows:
``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 funds among
the States in accordance with paragraph (2) or (3), as
appropriate.
``(2) Increase in funds.--If the amount available for
allocations to States under paragraph (1) is equal to or
greater than the amount allocated to the States under this
section for the preceding fiscal year, those allocations shall
be calculated as follows:
``(A)(i) Except as provided in subparagraph (B),
the Secretary shall--
``(I) allocate to each State the amount it
received for fiscal year 1997;
``(II) allocate 85 percent of any remaining
funds to States on the basis of their relative
populations of children aged 3 through 5; and
``(III) allocate 15 percent of those
remaining funds to States on the basis of their
relative populations of all children aged 3
through 5 who are living in poverty.
``(ii) 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) Notwithstanding subparagraph (A), allocations
under this paragraph shall be subject to the following:
``(i) No State's allocation shall be less
than its allocation for the preceding fiscal
year.
``(ii) No State's allocation shall be less
than the greatest of--
``(I) the sum of--
``(aa) the amount it
received for fiscal year 1997;
and
``(bb) one third of one
percent of the amount by which
the amount appropriated under
subsection (j) exceeds the
amount appropriated under this
section for fiscal year 1997;
``(II) the sum of--
``(aa) the amount it
received for the preceding
fiscal year; and
``(bb) that amount
multiplied by the percentage by
which the increase in the funds
appropriated from the preceding
fiscal year exceeds 1.5
percent; or
``(III) the sum of--
``(aa) the amount it
received for the preceding
fiscal year; and
``(bb) that amount
multiplied by 90 percent of the
percentage increase in the
amount appropriated from the
preceding fiscal year.
``(iii) Notwithstanding clause (ii), no
State's allocation under this paragraph shall
exceed the sum of--
``(I) the amount it received 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.
``(C) If the amount available for allocations under
this paragraph is insufficient to pay those allocations
in full, those allocations shall be ratably reduced,
subject to subparagraph (B)(i).
``(3) Decrease in funds.--If the amount available for
allocations to States under paragraph (1) is less than the
amount allocated to the States under this section for the
preceding fiscal year, those allocations shall be calculated as
follows:
``(A) 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 it received for fiscal
year 1997; and
``(ii) an amount that bears the same
relation to any remaining funds as the increase
the State received for the preceding fiscal
year over fiscal year 1997 bears to the total
of all such increases for all States.
``(B) If the amount available for allocations is
equal to or less than the amount allocated to the
States for fiscal year 1997, each State shall be
allocated the amount it received for that year, ratably
reduced, if necessary.
``(d) Reservation for State Activities.--
``(1) In general.--Each State may retain 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 it
may retain under subsection (d) for any fiscal year.
``(2) Administration of part c.--Funds described in
paragraph (1) may also be used for the administration of part C
of this Act, if the State educational agency is the lead agency
for the State under that part.
``(f) Other State-Level Activities.--Each State shall use any funds
it retains under subsection (d) and does not use for administration
under subsection (e)--
``(1) for support services (including establishing and
implementing the mediation and voluntary binding arbitration
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)(16) and to support implementation of the State plan
under subpart 1 of part D if the State receives funds under
that subpart; or
``(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 to exceed one
percent of the amount received by the State under this section
for a fiscal year.
``(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 it 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 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 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 agencies on the basis of the
relative numbers of children enrolled in public
and private elementary and secondary schools
within the agency's jurisdiction; and
``(ii) allocate 15 percent of those
remaining funds to those agencies in accordance
with their relative numbers of children living
in poverty, as determined by the State
educational agency.
``(2) Reallocation of funds.--If a State educational agency
determines that a local educational agency is adequately
providing a free appropriate public education to all children
with disabilities aged 3 through 5 residing in the area served
by that agency with State and local funds, the State
educational agency may reallocate any portion of the funds
under this section that are not needed by that local 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 they serve.
``(h) Part C Inapplicable.--Part C of this Act does not apply to
any child with a disability receiving a free appropriate public
education, in accordance with this part, with funds received under this
section.
``(i) Definition.--For the purpose of this section, the term
`State' means each of the 50 States, the District of Columbia, and the
Commonwealth of Puerto Rico.
``(j) Authorization of Appropriations.--For the purpose of carrying
out this section, there are authorized to be appropriated to the
Secretary such sums as may be necessary for each of the fiscal years
2004 through 2008.''.
TITLE III--INFANTS AND TODDLERS WITH DISABILITIES
SEC. 301. SECTIONS 631 THROUGH 638 OF THE INDIVIDUALS WITH DISABILITIES
EDUCATION ACT.
Sections 631 through 638 of the Individuals with Disabilities
Education Act (20 U.S.C. 1431-1438) are amended to read as follows:
``SEC. 631. FINDINGS AND POLICY.
``(a) Findings.--The Congress finds that there is an urgent and
substantial need--
``(1) to enhance the development of infants and toddlers
with disabilities and to minimize their potential for
developmental delay;
``(2) to reduce the educational costs to our society,
including our Nation's schools, by minimizing the need for
special education and related services after infants and
toddlers with disabilities reach school age;
``(3) to minimize the likelihood of institutionalization of
individuals with disabilities and maximize the potential for
their independently living in society;
``(4) to enhance the capacity of families to meet the
special needs of their infants and toddlers with disabilities;
and
``(5) to enhance the capacity of State and local agencies
and service providers to identify, evaluate, and meet the needs
of historically underrepresented populations, particularly
minority, low-income, inner-city, and rural populations.
``(b) Policy.--It is 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 their capacity to provide quality early
intervention services and expand and improve existing early
intervention services being provided to infants and toddlers
with disabilities and their families; and
``(4) to encourage States to expand opportunities for
children under 3 years of age who would be at risk of having
substantial developmental delay if they did not receive early
intervention services.
``SEC. 632. DEFINITIONS.
``As used in this part:
``(1) At-risk infant or toddler.--The term `at-risk infant
or toddler' means an individual under 3 years of age who would
be at risk of experiencing a substantial developmental delay if
early intervention services were not provided to the
individual.
``(2) Council.--The term `council' means a State
interagency coordinating council established under section 641.
``(3) Developmental delay.--The term `developmental delay',
when used with respect to an individual residing in a State,
has the meaning given such term by the State under section
635(a)(1).
``(4) Early intervention services.--The term `early
intervention services' means developmental services that--
``(A) are provided under public supervision;
``(B) are provided at no cost except where Federal
or State law provides for a system of payments by
families, including a schedule of sliding fees;
``(C) are designed to address family-identified
priorities and concerns that are determined by
individualized family service plan team to relate to
enhancing the child's development in any one or more of
the following areas--
``(i) physical development;
``(ii) cognitive development;
``(iii) communication development;
``(iv) social or emotional development; or
``(v) adaptive development;
``(D) meet the standards of the State in which they
are provided, including the requirements of this part;
``(E) include--
``(i) family training, counseling, and home
visits;
``(ii) special instruction;
``(iii) speech-language pathology and
audiology services;
``(iv) occupational therapy;
``(v) physical therapy;
``(vi) psychological services;
``(vii) service coordination services;
``(viii) medical services only for
diagnostic or evaluation purposes;
``(ix) early identification, screening, and
assessment services;
``(x) health services necessary to enable
the infant or toddler to benefit from the other
early intervention services;
``(xi) social work services;
``(xii) vision services;
``(xiii) assistive technology devices and
assistive technology services; and
``(xiv) transportation and related costs
that are necessary to enable an infant or
toddler and the infant's or toddler's family to
receive another service described in this
paragraph;
``(F) are provided by qualified personnel,
including--
``(i) special educators;
``(ii) speech-language pathologists and
audiologists;
``(iii) occupational therapists;
``(iv) physical therapists;
``(v) psychologists;
``(vi) social workers;
``(vii) nurses;
``(viii) registered dietitians;
``(ix) family therapists;
``(x) orientation and mobility specialists;
and
``(xi) pediatricians and other physicians;
``(G) to the maximum extent appropriate, are
provided in natural environments, including the home,
and community settings in which children without
disabilities participate; and
``(H) are provided in conformity with an
individualized family service plan adopted in
accordance with section 636.
``(5) Infant or toddler with a disability.--The term
`infant or toddler with a disability'--
``(A) means an individual under 3 years of age who
needs early intervention services because the
individual--
``(i) is experiencing developmental delays,
as measured by appropriate diagnostic
instruments and procedures in one or more of
the areas of cognitive development, physical
development, communication development, social
or emotional development, and adaptive
development; or
``(ii) has a diagnosed physical or mental
condition which has a high probability of
resulting in developmental delay; and
``(B) may also include, at a State's discretion,
at-risk infants and toddlers.
``SEC. 633. GENERAL AUTHORITY.
``The Secretary shall, in accordance with this part, make grants to
States (from their 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; and
``(2) has in effect a statewide system that meets the
requirements of section 635.
``SEC. 635. REQUIREMENTS FOR STATEWIDE SYSTEM.
``(a) In General.--A statewide system described in section 633
shall include, at a minimum, the following components:
``(1) A definition of the term `developmental delay' that
will be used by the State in carrying out programs under this
part.
``(2) A State policy that is in effect and that ensures
that appropriate early intervention services based on
scientifically based research are available to all infants and
toddlers with disabilities and their families, including Indian
infants and toddlers and their families residing on a
reservation geographically located in the State.
``(3) A timely, comprehensive, multidisciplinary evaluation
of the functioning of each infant or toddler with a disability
in the State, and a family-directed identification of the needs
of each family of such an infant or toddler, to appropriately
assist in the development of the infant or toddler.
``(4) For each infant or toddler with a disability in the
State, an individualized family service plan in accordance with
section 636, including service coordination services in
accordance with such service plan.
``(5) A comprehensive child find system, consistent with
part B, including a system for making referrals to service
providers that includes timelines and provides for
participation by primary referral sources.
``(6) A public awareness program focusing on early
identification of infants and toddlers with disabilities,
including the preparation and dissemination by the lead agency
designated or established under paragraph (10) to all primary
referral sources, especially hospitals and physicians, of
information for parents on the availability of early
intervention services, and procedures for determining the
extent to which such sources disseminate such information to
parents of infants and toddlers.
``(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 respecting 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) Subject to subsection (b), policies and procedures
relating to the establishment and maintenance of standards to
ensure that personnel necessary to carry out this part are
appropriately and adequately prepared and trained, including
the establishment and maintenance of standards 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.
``(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 occurs in a setting other
than a natural environment 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),
consistent with State law within 3 years.
``SEC. 636. INDIVIDUALIZED FAMILY SERVICE PLAN.
``(a) Assessment and Program Development.--A statewide system
described in section 633 shall provide, at a minimum, for each infant
or toddler with a disability, and the infant's or toddler's family, to
receive--
``(1) a multidisciplinary assessment of the unique
strengths and needs of the infant or toddler and the
identification of services appropriate to meet such needs;
``(2) a family-directed assessment of the resources,
priorities, and concerns of the family and the identification
of the supports and services necessary to enhance the family's
capacity to meet the developmental needs of the infant or
toddler; and
``(3) a written individualized family service plan
developed by a multidisciplinary team, including the parents,
as required by subsection (e), including a description of the
appropriate transition services for the child's entrance in
school.
``(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 goals expected to be
achieved for the infant or toddler and the family, including
pre-literacy and language skills, and the criteria, procedures,
and timelines used to determine the degree to which progress
toward achieving the goals is being made and whether
modifications or revisions of the goals or services are
necessary;
``(4) a statement of specific early intervention services
based on peer-reviewed research 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 designation of an individual or entity responsible
for assigning financial responsibility among appropriate
agencies;
``(3) information demonstrating eligibility of the State
under section 634, including 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 State-wide system, a description of such
services;
``(5) a description of the State policies and procedures
requiring the referral of a child under the age 3 who is
involved in a substantiated case of child abuse or neglect for
an evaluation consistent with section 635(a)(5).
``(6) a description of the uses for which funds will be
expended in accordance with this part;
``(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
to preschool or other appropriate services, including a
description of how--
``(i) the families of such toddlers will be
included in the transition plans required by
subparagraph (C); and
``(ii) the lead agency designated or
established under section 635(a)(10) will--
``(I) notify the local educational
agency for the area in which such a
child resides that the child will
shortly reach the age of eligibility
for preschool services under part B, as
determined in accordance with State
law;
``(II) in the case of a child who
may be eligible for such preschool
services, with the approval of the
family of the child, convene a
conference among the lead agency, the
family, and the local educational
agency at least 90 days (and at the
discretion of all such parties, up to 6
months) before the child is eligible
for the preschool services, to discuss
any such services that the child may
receive; and
``(III) in the case of a child who
may not be eligible for such preschool
services, with the approval of the
family, make reasonable efforts to
convene a conference among the lead
agency, the family, and providers of
other appropriate services for children
who are not eligible for preschool
services under part B, to discuss the
appropriate services that the child may
receive;
``(B) to review the child's program options for the
period from the child's third birthday through the
remainder of the school year; and
``(C) to establish a transition plan; and
``(10) 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 records and affording such
access to them 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, and rural families, 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 the
enactment of the Improving Education Results for Children With
Disabilities Act of 2003), the Secretary shall consider the State to
have met the requirement for purposes of receiving a grant under this
part.
``(e) Modification of Application.--An application submitted by a
State in accordance with this section shall remain in effect until the
State submits to the Secretary such modifications as the State
determines necessary. This section shall apply to a modification of an
application to the same extent and in the same manner as this section
applies to the original application.
``(f) Modifications Required by the Secretary.--The Secretary may
require a State to modify its application under this section, but only
to the extent necessary to ensure the State's compliance with this
part, if--
``(1) an amendment is made to this Act, or a Federal
regulation issued under this Act;
``(2) a new interpretation of this Act is made by a Federal
court or the State's highest court; or
``(3) an official finding of noncompliance with Federal law
or regulations is made with respect to the State.
``SEC. 638. USES OF FUNDS.
``In addition to using funds provided under section 633 to maintain
and implement the statewide system required by such section, a State
may use such funds--
``(1) for direct early intervention services for infants
and toddlers with disabilities, and their families, under this
part that are not otherwise funded through other public or
private sources;
``(2) to expand and improve on services for infants and
toddlers and their families under this part that are otherwise
available;
``(3) to provide a free appropriate public education, in
accordance with part B, to children with disabilities from
their third birthday to the beginning of the following school
year; and
``(4) 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. 302. SECTIONS 641 THROUGH 645 OF THE INDIVIDUALS WITH DISABILITIES
EDUCATION ACT.
Sections 641 through 645 of the Individuals with Disabilities
Education Act (20 U.S.C. 1441-1445) are amended to read as follows:
``SEC. 641. STATE INTERAGENCY COORDINATING COUNCIL.
``(a) Establishment.--
``(1) In general.--A State that desires to receive
financial assistance under this part shall establish a State
interagency coordinating council.
``(2) Appointment.--The council shall be appointed by the
Governor. In making appointments to the council, the Governor
shall ensure that the membership of the council reasonably
represents the population of the State.
``(3) Chairperson.--The Governor shall designate a member
of the council to serve as the chairperson of the council, or
shall require the council to so designate such a member. Any
member of the council who is a representative of the lead
agency designated under section 635(a)(10) may not serve as the
chairperson of the council.
``(b) Composition.--
``(1) In general.--The council shall be composed as
follows:
``(A) Parents.--At least 20 percent of the members
shall be parents of infants or toddlers with
disabilities or children with disabilities aged 12 or
younger, with knowledge of, or experience with,
programs for infants and toddlers with disabilities. At
least one such member shall be a parent of an infant or
toddler with a disability or a child with a disability
aged 6 or younger.
``(B) Service providers.--At least 20 percent of
the members shall be public or private providers of
early intervention services.
``(C) State legislature.--At least one member shall
be from the State legislature.
``(D) Personnel preparation.--At least one member
shall be involved in personnel preparation.
``(E) Agency for early intervention services.--At
least one member shall be from each of the State
agencies involved in the provision of, or payment for,
early intervention services to infants and toddlers
with disabilities and their families and shall have
sufficient authority to engage in policy planning and
implementation on behalf of such agencies.
``(F) Agency for preschool services.--At least one
member shall be from the State educational agency
responsible for preschool services to children with
disabilities and shall have sufficient authority to
engage in policy planning and implementation on behalf
of such agency.
``(G) Agency for health insurance.--At least one
member shall be from the agency responsible for the
State governance of health insurance.
``(H) Head start agency.--At least one
representative from a Head Start agency or program in
the State.
``(I) Child care agency.--At least one
representative from a State agency responsible for
child care.
``(2) Other members.--The council may include other members
selected by the Governor, including a representative from the
Bureau of Indian Affairs, or where there is no BIA-operated or
BIA-funded school, from the Indian Health Service or the tribe
or tribal council.
``(c) Meetings.--The council shall meet at least quarterly and in
such places as it deems necessary. The meetings shall be publicly
announced, and, to the extent appropriate, open and accessible to the
general public.
``(d) Management Authority.--Subject to the approval of the
Governor, the council may prepare and approve a budget using funds
under this part to conduct hearings and forums, to reimburse members of
the council for reasonable and necessary expenses for attending council
meetings and performing council duties (including child care for parent
representatives), to pay compensation to a member of the council if 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 would provide direct financial benefit to that
member or otherwise give the appearance of a conflict of interest under
State law.
``SEC. 642. FEDERAL ADMINISTRATION.
``Sections 616, 617, 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 up to
one percent for payments to Guam, American Samoa, the Virgin
Islands, and the Commonwealth of the Northern Mariana Islands
in accordance with their respective needs.
``(2) Consolidation of funds.--The provisions of Public Law
95-134, permitting the consolidation of grants to the 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 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 number of such children served by all
tribes, tribal organizations, or consortia.
``(3) Information.--To receive a payment under this
subsection, the tribe, tribal organization, or consortium shall
submit such information to the Secretary of the Interior as is
needed to determine the amounts to be distributed under
paragraph (2).
``(4) Use of funds.--The funds received by a tribe, tribal
organization, or consortium shall be used to assist States in
child find, screening, and other procedures for the early
identification of Indian children under 3 years of age and for
parent training. Such funds may also be used to provide early
intervention services in accordance with this part. Such
activities may be carried out directly or through contracts or
cooperative agreements with the BIA, local educational
agencies, and other public or private nonprofit organizations.
The tribe, tribal organization, or consortium is encouraged to
involve Indian parents in the development and implementation of
these activities. The above entities shall, as appropriate,
make referrals to local, State, or Federal entities for the
provision of services or further diagnosis.
``(5) Reports.--To be eligible to receive a grant under
paragraph (2), a tribe, tribal organization, or consortium
shall make an annual report to the Secretary of the Interior of
activities undertaken under this subsection, including the
number of contracts and cooperative agreements entered into,
the number of children contacted and receiving services for
each year, and the estimated number of children needing
services during the year following the year in which the report
is made. The Secretary of the Interior shall include a summary
of this information on an annual basis to the Secretary of
Education along with such other information as required under
section 611(i)(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) and (b), the
Secretary shall first allot to each State an amount that bears
the same ratio to the amount of such remainder as the number of
infants and toddlers in the State bears to the number of
infants and toddlers in all States.
``(2) Minimum allotments.--Except as provided in paragraph
(3) no State shall receive an amount under this section for any
fiscal year that is less than the greatest of--
``(A) one-half of one percent of the remaining
amount described in paragraph (1); or
``(B) $500,000.
``(3) 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
they were reduced.
``(4) Definitions.--For the purpose of this subsection--
``(A) the terms `infants' and `toddlers' mean
children under 3 years of age; and
``(B) the term `State' means each of the 50 States,
the District of Columbia, and the Commonwealth of
Puerto Rico.
``(d) Reallotment of Funds.--If a State elects not to receive its
allotment under subsection (c), the Secretary shall reallot, among the
remaining States, amounts from such State in accordance with such
subsection.
``SEC. 644. AUTHORIZATION OF APPROPRIATIONS.
``For the purpose of carrying out this part, there are authorized
to be appropriated $447,000,000 for fiscal year 2004 and such sums as
may be necessary for each of the fiscal years 2005 through 2009.''.
TITLE IV--NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF CHILDREN WITH
DISABILITIES
SEC. 401. NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF CHILDREN WITH
DISABILITIES.
Part D of the Individuals with Disabilities Education Act (20
U.S.C. 1451 et seq.) is amended to read as follows:
``PART D--NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF CHILDREN WITH
DISABILITIES
``SEC. 651. FINDINGS.
``The Congress finds the following:
``(1) The Federal Government has an ongoing obligation to
support activities that contribute to positive results for
children with disabilities, enabling them to lead productive
and independent adult lives.
``(2) Systemic change benefiting all students, including
children with disabilities, requires the involvement of States,
local educational agencies, parents, individuals with
disabilities and their families, teachers and other service
providers, and other interested individuals and organizations,
to develop and implement comprehensive strategies that improve
educational results for children with disabilities.
``(3) State educational agencies, in partnership with local
educational agencies, parents of children with disabilities,
and other individuals and organizations, are in the best
position to improve education for children with disabilities
and to address their special needs.
``(4) An effective educational system serving students with
disabilities should--
``(A) maintain high academic standards and clear
achievement goals for children, 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, as described in
section 602(31), and coordinate State and local
education, social, health, mental health, and other
services, to address the full range of student needs,
particularly the needs of children with disabilities
who require 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 in order to serve effectively children
with disabilities, assume leadership positions in
administrative and direct-service, provide teacher training,
and conduct high-quality research to improve special education.
``(6) High-quality, comprehensive professional development
programs are essential to ensure that the persons responsible
for the education or transition of children with disabilities
possess the skills and knowledge necessary to address the
educational and related needs of those children.
``(7) Models of professional development should be
scientifically based and reflect successful practices,
including strategies for recruiting, preparing, and retaining
personnel.
``(8) Continued support is essential for the development
and maintenance of a coordinated and high-quality program of
research to inform successful teaching practices and model
curricula for educating children with disabilities.
``(9) A comprehensive research agenda should be established
and pursued to promote the highest quality and rigor in special
education research, and to address the full range of issues
facing children with disabilities, parents of children with
disabilities, school personnel, and others.
``(10) Technical assistance, support, and dissemination
activities are necessary to ensure that parts B and C are fully
implemented and achieve quality early intervention,
educational, and transitional results for children with
disabilities and their families.
``(11) Parents, teachers, administrators, and related
services personnel need technical assistance and information in
a timely, coordinated, and accessible manner in order to
improve early intervention, educational, and transitional
services and results at the State and local levels for children
with disabilities and their families.
``(12) Parent and community 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) creating and preserving constructive
relationships between parents of children with
disabilities and schools by facilitating open
communication between such parents and schools,
encouraging dispute resolution at the earliest point in
time possible, and discouraging the escalation of an
adversarial process between such parents and schools;
``(B) ensuring the involvement of such parents in
planning and decision-making with respect to early
intervention, educational, and transitional services;
``(C) achieving high-quality early intervention,
educational, and transitional results for children with
disabilities;
``(D) providing such parents information on their
rights, protections, and responsibilities under this
Act to ensure improved early intervention, educational,
and transitional results for children with
disabilities;
``(E) assisting such parents in the development of
skills to participate effectively in the education and
development of their children and in the transitions
described in section 602(31);
``(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 those parents who may have limited
access to services and supports due to economic,
cultural, or linguistic barriers.
``(13) Support is needed to improve technological resources
and integrate technology 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 Professional Development Grants
``SEC. 652. PURPOSE.
``The purpose of this subpart is to assist State educational
agencies in reforming and improving their systems for professional
development in early intervention, educational, and transition services
in order to improve results for children with disabilities.
``SEC. 653. 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) Required partners.--In order to be considered for a
grant under this subpart, a State educational agency shall
enter into a partnership agreement with local educational
agencies and other State agencies involved in, or concerned
with, the education of children with disabilities.
``(2) Optional partners.--In addition, a State educational
agency may enter into a partnership agreement with any of the
following:
``(A) The Governor.
``(B) Parents of children with disabilities ages
birth through 21.
``(C) Parents of nondisabled children ages birth
through 21.
``(D) Individuals with disabilities.
``(E) Organizations representing individuals with
disabilities and their parents, such as parent and
community training and information centers.
``(F) Community-based and other nonprofit
organizations involved in the education and employment
of individuals with disabilities.
``(G) The lead State agency for part C.
``(H) General and special education teachers, and
early intervention personnel.
``(I) The State advisory panel established under
part C.
``(J) The State interagency coordinating council
established under part C.
``(K) Institutions of higher education within the
State.
``(L) Individuals knowledgeable about vocational
education.
``(M) The State agency for higher education.
``(O) The State vocational rehabilitation agency.
``(P) Public agencies with jurisdiction in the
areas of health, mental health, social services, and
juvenile justice.
``(Q) Other providers of professional development
that work with students with disabilities.
``(R) Other individuals.
``SEC. 654. 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 addresses the State and local needs for the professional
development of administrators, principals, teachers, and
individuals who provide direct supplementary aids and services
to children with disabilities, and that--
``(A) is integrated, to the maximum extent
possible, with State plans under the Elementary and
Secondary Education Act of 1965, the Rehabilitation Act
of 1973, and the Higher Education Act of 1965, as
appropriate; and
``(B) is designed to enable the State to meet the
requirements of section 612(a)(15) of this Act.
``(b) Elements of State Plan.--Each State plan shall--
``(1) describe a partnership agreement that--
``(A) specifies--
``(i) the nature and extent of the
partnership among the State educational agency,
local educational agencies, and other State
agencies involved in, or concerned with, the
education of children with disabilities, and
the respective roles of each member of the
partnership; and
``(ii) how such agencies will work in
partnership with other persons and
organizations involved in, and concerned with,
the education of children with disabilities,
including the respective roles of each of these
persons and organizations; and
``(B) is in effect for the period of the grant;
``(2) describe how grant funds, including part B funds
retained for use at the State level under sections 611(f) and
619(d), and other Federal funds will be used to support
activities conducted under this section;
``(3) describe the strategies the State will use to
implement the plan to improve results for children with
disabilities, including--
``(A) how the State will align its professional
development plan with the plans submitted by the State
under sections 1115 and 2112 of the Elementary and
Secondary Education Act of 1965;
``(B) how the State will provide technical
assistance to local educational agencies and schools to
improve the quality of professional development
available to meet the needs of personnel that serve
children with disabilities;
``(C) how the State will assess, on a regular
basis, the extent to which the strategies implemented
under this subpart have been effective in meeting the
achievement goals and indicators in section 612(a)(16);
``(4) describe, as appropriate, how the strategies
described in paragraph (3) will be coordinated with public and
private sector resources; and
``(5) include an assurance that the State will use funds
received under this subpart to carry out each of the activities
specified in the plan.
``(c) Competitive Awards.--
``(1) In general.--The Secretary shall make grants under
this subpart on a competitive basis.
``(2) Priority.--The Secretary may give priority to
applications on the basis of need.
``(d) Peer Review.--
``(1) In general.--The Secretary shall evaluate
applications under this subpart using a panel of experts who
are qualified by virtue of their training, expertise, or
experience.
``(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.
``(e) 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 in implementing
its plan;
``(2) analyze the effectiveness of the State's activities
under this subpart and of the State's strategies for meeting
its goals under section 612(a)(16); and
``(3) identify any changes in such strategies needed to
improve its performance.
``SEC. 655. USE OF FUNDS.
``(a) In General.--
``(1) Activities.--A State educational agency that receives
a grant under this subpart shall use the grant funds, subject
to subsection (b), for the following:
``(A) Professional development.--
``(i) Carrying out programs that support
the professional development of both special
education and regular education teachers of
children with disabilities, such as programs
that--
``(I) provide teacher mentoring,
team teaching, reduced class schedules,
and intensive professional development;
and
``(II) use standards or assessments
for guiding beginning teachers that are
consistent with challenging State
student academic achievement standards
and with the requirements for
professional development activities
described in section 9101 of the
Elementary and Secondary Education Act
of 1965.
``(ii) Encouraging and supporting the
training of special education and regular
education teachers and administrators to
effectively integrate technology 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.
``(iii) Providing professional development
activities that improve the knowledge of
special education and regular education
teachers concerning--
``(I) the academic and
developmental needs of students with
disabilities; and
``(II) effective instructional
strategies, methods, and skills, use of
challenging State academic content
standards and student academic
achievement standards, and use of State
assessments, to improve teaching
practices and student academic
achievement.
``(iv) Providing professional development
activities that--
``(I) improve the knowledge of
special education and regular education
teachers and principals and, in
appropriate cases, paraprofessionals,
concerning effective instructional
practices;
``(II) provide training in how to
teach and address the needs of students
with different learning styles;
``(III) involve collaborative
groups of teachers and administrators;
``(IV) provide training in methods
of--
``(aa) positive behavior
interventions and supports to
improve student behavior in the
classroom;
``(bb) scientifically based
reading instruction, including
early literacy instruction; and
``(cc) early and
appropriate interventions to
identify and help students with
disabilities;
``(V) provide training to enable
special education and regular education
teachers and principals to involve
parents in their child's education,
especially parents of low income and
limited English proficient children
with disabilities; or
``(VI) train administrators and
other relevant school personnel in
conducting facilitated individualized
education program meetings.
``(v) Developing and implementing
initiatives to promote retention of highly
qualified special education teachers, including
programs that provide--
``(I) teacher mentoring from
exemplary special education teachers,
principals, or superintendents;
``(II) induction and support for
special education teachers during their
first 3 years of employment as
teachers; or
``(III) incentives, including
financial incentives, to retain special
education teachers who have a record of
success in helping students with
disabilities improve their academic
achievement.
``(vi) Carrying out programs and activities
that are designed to improve the quality of the
teacher force that serves students with
disabilities, such as--
``(I) innovative professional
development programs (which may be
provided through partnerships including
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, are consistent
with the requirements of section 9101
of the Elementary and Secondary
Assistance Act of 1965, and are
coordinated with activities carried out
under this part; and
``(II) 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.
``(B) State activities.--
``(i) Reforming special education and
regular education teacher certification
(including recertification) or licensing
requirements to ensure that--
``(I) special education and regular
education teachers have the training
and information necessary to address
the wide variety of needs of children
with disabilities across disability
categories;
``(II) special education and
regular education teachers have the
necessary subject matter knowledge and
teaching skills in the academic
subjects that the teachers teach;
``(III) special education and
regular education teacher certification
(including recertification) or
licensing requirements are aligned with
challenging State academic content
standards; and
``(IV) special education and
regular education teachers have the
subject matter knowledge and teaching
skills, including technology literacy,
necessary to help students meet
challenging State student academic
achievement standards.
``(ii) Carrying out programs that
establish, expand, or improve alternative
routes for State certification of special
education teachers for individuals who
demonstrate the potential to become highly
effective special education teachers, such as
individuals with a baccalaureate or master's
degree (including mid-career professionals from
other occupations), paraprofessionals, former
military personnel, and recent college or
university graduates with records of academic
distinction.
``(iii) Carrying out 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.
``(iv) Developing and implementing
mechanisms to assist local educational agencies
and schools in effectively recruiting and
retaining highly qualified special education
teachers.
``(v) 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.
``(vi) Developing and implementing
mechanisms to assist schools in effectively
recruiting and retaining highly qualified
special education teachers.
``(vii) 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 clause or
developed using funds provided under this
subpart may lead to the weakening of any State
teaching certification or licensing
requirement.
``(viii) Developing or assisting local
educational agencies to serve children with
disabilities through the development and use of
proven, innovative strategies to deliver
intensive professional development programs
that are both cost-effective and easily
accessible, such as strategies that involve
delivery through the use of technology, peer
networks, and distance learning.
``(ix) Developing, or assisting local
educational agencies in developing, merit-based
performance systems, and strategies that
provide differential and bonus pay for special
education teachers.
``(x) Supporting activities that ensure
that teachers are able to use challenging State
academic content standards and student academic
achievement standards, and State assessments,
to improve instructional practices and improve
the academic achievement of children with
disabilities.
``(xi) Coordinate with, and expand, centers
established under section 2113(18) of the
Elementary and Secondary Education Act of 1965
to benefit special education teachers.
``(2) Contracts and subgrants.--Each such State educational
agency--
``(A) shall, consistent with its partnership
agreement under section 653(b), award contracts or
subgrants to local educational agencies, institutions
of higher education, and parent and community training
and information centers, as appropriate, to carry out
its State plan under this subpart; and
``(B) may award contracts and subgrants to other
public and private entities, including the lead agency
under part C, to carry out such plan.
``(b) 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 it receives
under the grant for any fiscal year for activities under
subsection (a)(1)(A); and
``(2) not more than 10 percent of the funds it receives
under the grant for any fiscal year for activities under
subsection (a)(1)(B).
``(c) 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. 656. STATE GRANT AMOUNTS.
``(a) In General.--The Secretary shall make a grant to each State
educational agency whose application the Secretary has selected for
funding under this subpart in an amount for each fiscal year that is--
``(1) not less than $500,000, nor more than $2,000,000, in
the case of the 50 States, the District of Columbia, and the
Commonwealth of Puerto Rico; and
``(2) not less than $80,000, in the case of an outlying
area.
``(b) Factors.--The Secretary shall set the amount of each grant
under subsection (a) after considering--
``(1) the amount of funds available for making the grants;
``(2) the relative population of the State or outlying
area; and
``(3) the types of activities proposed by the State or
outlying area, including--
``(A) the alignment of proposed activities with
paragraphs (15) and (16) of section 612(a);
``(B) the alignment of proposed activities with the
plans submitted under sections 1111 and 2112 of the
Elementary and Secondary Education Act of 1965; and
``(C) the use, as appropriate, of scientifically-
based research.
``SEC. 657. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this subpart
such sums as may be necessary for each of the fiscal years 2004 through
2008.
Subpart 2--Scientifically Based Research; Technical Assistance; Model
Demonstration Projects; Dissemination of Information; and Personnel
Programs
``SEC. 661. PURPOSE.
``The purpose of this subpart is to provide Federal funding for
scientifically based research, technical assistance, model
demonstration projects, information dissemination, and personnel
preparation programs to improve early intervention, educational, and
transitional results for children with disabilities.
``SEC. 662. ADMINISTRATIVE PROVISIONS.
``(a) Comprehensive Plan.--
``(1) In general.--The Secretary shall develop and
implement a comprehensive plan for activities carried out under
this subpart in order to enhance the provision of educational,
related, transitional, and early intervention services to
children with disabilities under parts B and C. The plan shall
include mechanisms to address educational, related services,
transitional, and early intervention needs identified by State
educational agencies in applications submitted under subpart 1.
``(2) Public comment.--The Secretary shall provide a public
comment period of at least 30 days on the plan.
``(3) Distribution of funds.--In implementing the plan, the
Secretary shall, to the extent appropriate, ensure that funds
are awarded to recipients under this subpart to carry out
activities that benefit, directly or indirectly, children with
disabilities of all ages.
``(4) Reports to congress.--The Secretary shall annually
report to the Congress on the Secretary's activities under this
subsection, including an initial report not later than the date
that is 12 months after the date of the enactment of Improving
Education Results for Children With Disabilities Act of 2003.
``(b) Eligible Applicants.--
``(1) In general.--Except as otherwise provided in this
subpart, the following entities are eligible to apply for a
grant, contract, or cooperative agreement under this subpart:
``(A) A State educational agency.
``(B) A local educational agency.
``(C) A public charter school that is a local
educational agency under State law.
``(D) An institution of higher education.
``(E) Any other public agency.
``(F) A private nonprofit organization.
``(G) An outlying area.
``(H) An Indian tribe or a tribal organization (as
defined under section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
450b)).
``(I) A for-profit organization.
``(2) Special rule.--The Secretary may limit the entities
eligible for an award of a grant, contract, or cooperative
agreement to one or more categories of eligible entities
described in paragraph (1).
``(c) Special Populations.--
``(1) Application requirement.--In making an award of a
grant, contract, or cooperative agreement under this subpart,
the Secretary shall, as appropriate, require an applicant to
demonstrate how the applicant will address the needs of
children with disabilities from minority backgrounds.
``(2) Required outreach and technical assistance.--
Notwithstanding any other provision of this Act, the Secretary
shall reserve at least one percent of the total amount of funds
appropriated to carry out this subpart 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 at least 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 such grant applicants 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 this subpart, 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 one 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) children with limited English proficiency;
``(E) unserved and underserved areas;
``(F) rural or urban areas;
``(G) children whose behavior interferes with their
learning and socialization;
``(H) children with intractable reading
difficulties; and
``(I) children in public charter schools;
``(4) projects to reduce inappropriate identification of
children as children with disabilities, particularly among
minority children; and
``(5) any activity that is expressly authorized in this
subpart or subpart 3.
``(e) Applicant and Recipient Responsibilities.--
``(1) Development and assessment of projects.--The
Secretary shall require that an applicant for, and a recipient
of, a grant, contract, or cooperative agreement for a project
under this subpart--
``(A) involve individuals with disabilities, or
parents of individuals with disabilities ages birth
through 21, 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 for a project under this subpart--
``(A) to share in the cost of the project;
``(B) to prepare the research and evaluation
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) to disseminate such findings and products;
and
``(D) to collaborate with other such recipients in
carrying out subparagraphs (B) and (C).
``(f) Application Management.--
``(1) Standing panel.--
``(A) In general.--The Secretary shall establish
and use a standing panel of experts who are qualified,
by virtue of their training, expertise, or experience,
to evaluate applications under this subpart that,
individually, request more than $75,000 per year in
Federal financial assistance.
``(B) Membership.--The standing panel shall
include, at a minimum--
``(i) individuals who are representatives
of institutions of higher education that plan,
develop, and carry out high quality programs of
personnel preparation;
``(ii) individuals who design and carry out
scientifically-based research targeted to the
improvement of special education programs and
services;
``(iii) individuals who have recognized
experience and knowledge necessary to integrate
and apply scientifically-based research
findings to improve educational and
transitional results for children with
disabilities;
``(iv) individuals who administer programs
at the State or local level in which children
with disabilities participate;
``(v) individuals who prepare parents of
children with disabilities to participate in
making decisions about the education of their
children;
``(vi) individuals who establish policies
that affect the delivery of services to
children with disabilities;
``(vii) individuals who are parents of
children with disabilities ages birth through
21 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 sub-panel selected from the standing panel that
reviews applications under this subpart includes--
``(i) individuals with knowledge and
expertise on the issues addressed by the
activities authorized by the subpart; and
``(ii) to the extent practicable, parents
of children with disabilities ages birth
through 21, individuals with disabilities, and
persons from diverse backgrounds.
``(B) Federal employment limitation.--A majority of
the individuals on each sub-panel that reviews an
application under this subpart 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
this subpart 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 this subpart to pay non-Federal entities
for administrative support related to management of
applications submitted under this subpart.
``(g) Program Evaluation.--The Secretary may use funds appropriated
to carry out this subpart to evaluate activities carried out under the
subpart.
``(h) Minimum Funding Required.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall ensure that, for each fiscal year, at least the following
amounts are provided under this subpart to address the
following needs:
``(A) $12,832,000 to address the educational,
related services, transitional, and early intervention
needs of children with deaf-blindness.
``(B) $4,000,000 to address the postsecondary,
vocational, technical, continuing, and adult education
needs of individuals with deafness.
``(C) $4,000,000 to address the educational,
related services, and transitional needs of children
with an emotional disturbance and those who are at risk
of developing an emotional disturbance.
``(2) Ratable reduction.--If the total amount appropriated
to carry out this subpart for any fiscal year is less than
$130,000,000, the amounts listed in paragraph (1) shall be
ratably reduced.
``(i) Eligibility for Financial Assistance.--Effective for fiscal
years for which the Secretary may make grants under section 619(b), no
State or local educational agency or educational service agency or
other public institution or agency may receive a grant under this
subpart which 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. 663. RESEARCH TO IMPROVE RESULTS FOR CHILDREN WITH DISABILITIES.
``(a) In General.--
``(1) Competitive grants.--The Secretary shall make
competitive grants to, or enter into contracts or cooperative
agreements with, eligible entities to expand the fundamental
knowledge and understanding of the education of children with
disabilities in order to improve educational results for
children with disabilities, in accordance with the priorities
determined under this section.
``(2) Delegation.--Notwithstanding any other provision of
law, the Secretary shall delegate the Secretary's
responsibilities under this section to the Director of the
Institute for Education Sciences.
``(b) Authorized Activities.--Activities that may be carried out
under this section include research activities to obtain knowledge and
understanding in order--
``(1) to improve services provided under this Act in order
to improve academic achievement for children with disabilities;
``(2) to investigate scientifically based educational
practices that support learning and improve academic
achievement and progress for all students with disabilities;
``(3) to examine the special needs of preschool-aged
children and infants and toddlers with disabilities, including
factors that may result in developmental delays;
``(4) to improve the alignment, compatibility, and
development of valid and reliable assessment methods, including
alternative assessment methods and evaluation methods for
assessing adequate yearly progress, as described under section
1111(b)(2)(B) of the Elementary and Secondary Education Act of
1965;
``(5) to examine the educational and developmental needs of
children with high-incidence and low-incidence disabilities;
``(6) to examine the extent to which over-identification
and under-identification of children with disabilities occurs,
and the causes thereof;
``(7) to improve reading and literacy skills for children
with disabilities;
``(8) to examine and improve secondary and postsecondary
education and transitional needs of children with disabilities;
``(9) to examine methods of early intervention for children
with disabilities who need significant levels of support;
``(10) to examine universal design concepts in the
development of assessments, curricula, and instructional
methods as a method to improve results for children with
disabilities;
``(11) to improve the preparation for personnel who provide
educational and related services to children with disabilities
to increase academic achievement of students with disabilities;
and
``(12) to examine the excess costs of educating a child
with a disability and expenses associated with high-cost
special education and related services.
``(c) Quality of Research.--In carrying out these activities,
Director of the Institute of Education Sciences, with the advice of the
Assistant Secretary for Special Education and Rehabilitative Services,
shall conduct and support scientifically valid research activities,
including basic and applied research, statistics activities,
scientifically valid evaluation, development, and dissemination that--
``(1) conform to high standards of quality, integrity,
accuracy, validity, and reliability;
``(2) are carried out in conjunction with the standards for
the conduct and evaluation of all research and development
established by the National Center for Education Research; and
``(3) are objective, secular, neutral, nonideological, and
are free of partisan political influence, and racial, cultural,
gender, regional, or disability bias.
``(d) Research Agenda.--
``(1) In general.--In carrying out this section, the
Secretary shall develop a comprehensive research agenda.
``(2) Requirements.--The Secretary shall ensure that the
comprehensive research agenda--
``(A) is consistent with the purposes of this Act
and includes activities authorized under subsection (b)
and, as appropriate, activities required under
subsection (c);
``(B) reflects an appropriate balance across all
age ranges of children with disabilities;
``(C) is objective and uses measurable indicators
to assess the progress and results of research;
``(D) includes both basic research and applied
research, which shall include research conducted
through field-initiated studies and may include ongoing
research initiatives; and
``(E) ensures that the research conducted under
this subpart is relevant to special education practice
and policy.
``(3) Public comment period.--The Secretary shall provide a
public comment period of at least 30 days on the research
agenda.
``(4) Submission of final agenda.--The Secretary shall
submit a final comprehensive research agenda to the House
Committee on Education and the Workforce and the Senate
Committee on Health, Education, Labor, and Pensions no later
than July 1, 2004.
``(e) Applications.--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.
``SEC. 664. 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
Act, 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 assessment methods, including
alternative assessment methods and evaluation methods, for
assessing adequate yearly progress, as described under section
1111(b)(2)(B) of the Elementary and Secondary Education Act of
1965; and
``(3) providing training for both regular education
teachers and special education teachers to address the needs of
students with different learning styles.
``(c) Authorized Activities.--Activities that may be carried out
under this section include activities to improve services provided
under this Act, including the practices of professionals and others
involved in providing such services to children with disabilities, that
promote academic achievement and improve results for children with
disabilities through--
``(1) identifying 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;
``(2) applying and testing research findings in typical
service settings 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;
``(3) demonstrating and 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;
``(4) 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;
``(5) promoting improved alignment and compatibility of
general and special education reforms concerned with curricular
and instructional reform, and evaluation of such reforms;
``(6) 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;
``(7) 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;
``(8) 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;
``(9) 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; or
``(10) focusing on the needs and issues that are specific
to a population of children with disabilities, such as the
provision of 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.
``(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 may support projects that link States to
technical assistance resources, including special education and general
education resources, and may make research and related products
available through libraries, electronic networks, parent training
projects, and other information sources.
``(f) Applications.--
``(1) In general.--An eligible entity that 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,
applicants must demonstrate that they will support projects
based on scientifically based research that has been 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.
``(3) Priority.--The Secretary shall give priority to
applications that propose to serve teachers and school
personnel directly in the school environment.
``SEC. 665. PERSONNEL DEVELOPMENT TO IMPROVE SERVICES AND RESULTS FOR
CHILDREN WITH DISABILITIES.
``(a) In General.--The Secretary shall, on a competitive basis,
make grants to, or enter into contracts or cooperative agreements with,
eligible entities--
``(1) to help address State-identified needs for highly
qualified personnel in special education, related services,
early intervention, and regular education, to work with
children with disabilities;
``(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;
and
``(5) to ensure that all special education teachers
teaching in core academic subjects are highly qualified.
``(b) Personnel Development; Authorized Activities.--
``(1) In general.--In carrying out this section, the
Secretary shall support activities, consistent with the
objectives described in subsection (a).
``(2) Authorized activities.--Activities that may be
carried out under this subsection include the following:
``(A) Promoting activities undertaken by
institutions of higher education, local educational
agencies, and other local entities--
``(i) to improve and reform their existing
programs, and to support effective existing
programs, to prepare teachers and related
services personnel--
``(I) to meet the diverse needs of
children with disabilities for early
intervention, educational, and
transitional services; and
``(II) to work collaboratively in
regular classroom settings; and
``(ii) to incorporate best practices and
scientifically based research about preparing
personnel--
``(I) so they will have the
knowledge and skills to improve
educational results for children with
disabilities; and
``(II) to implement effective
teaching strategies and interventions
to prevent the mis-identification or
over-identification of children as
having a disability, especially
minority and limited English proficient
children.
``(B) Developing, evaluating, and disseminating
innovative models for the recruitment, induction,
retention, and assessment of highly qualified teachers
to reduce shortages in personnel.
``(C) Developing and improving programs for
paraprofessionals to receive training as special
education teachers, related services personnel, and
early intervention personnel, including
interdisciplinary training to enable them to improve
early intervention, educational, and transitional
results for children with disabilities.
``(D) Demonstrating models for the preparation of,
and interdisciplinary training of, early intervention,
special education, and general education personnel, to
enable the personnel to acquire the collaboration
skills necessary to work within teams to improve
results for children with disabilities, particularly
within the general education curriculum.
``(E) Promoting the transferability, across State
and local jurisdictions, of licensure and certification
of teachers and administrators working with such
children.
``(F) Developing and disseminating models that
prepare teachers with strategies, including behavioral
interventions, for addressing the conduct of children
with disabilities that impedes their learning and that
of others in the classroom.
``(G) Developing and improving programs to enhance
the ability of general education teachers, principals,
school administrators, and school board members to
improve results for children with disabilities;
``(H) Supporting institutions of higher education
with minority enrollments of at least 25 percent for
the purpose of preparing personnel to work with
children with disabilities.
``(I) Developing and improving programs to train
special education teachers with an expertise in autism
spectrum disorders.
``(c) Low-Incidence Disabilities; Authorized Activities.--
``(1) In general.--In carrying out this section, the
Secretary shall support activities, consistent with the
objectives described in subsection (a), that benefit children
with low-incidence disabilities.
``(2) Authorized activities.--Activities that may be
carried out under this subsection include activities such as
the following:
``(A) Preparing persons who--
``(i) have prior training in educational
and other related service fields; and
``(ii) are studying to obtain degrees,
certificates, or licensure that will enable
them 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 to enhance learning by
children with low-incidence disabilities through early
intervention, educational, and transitional services.
``(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.
``(3) Definition.--As used in this section, the term `low-
incidence disability' means--
``(A) a visual or hearing impairment, or
simultaneous visual and hearing impairments;
``(B) a significant cognitive impairment; or
``(C) any impairment for which a small number of
personnel with highly specialized skills and knowledge
are needed in order for children with that impairment
to receive early intervention services or a free
appropriate public education.
``(4) Selection of recipients.--In selecting recipients
under this subsection, the Secretary may give preference to
applications that propose to prepare personnel in more than one
low-incidence disability, such as deafness and blindness.
``(5) Preparation in use of braille.--The Secretary shall
ensure that all recipients of assistance under this subsection
who will use that assistance to prepare personnel to provide
services to visually impaired or blind children that can
appropriately be provided in Braille will prepare those
individuals to provide those services in Braille.
``(d) Leadership Preparation; Authorized Activities.--
``(1) In general.--In carrying out this section, the
Secretary shall support leadership preparation activities that
are consistent with the objectives described in subsection (a).
``(2) Authorized activities.--Activities that may be
carried out under this subsection include activities such as
the following:
``(A) Preparing personnel at the graduate,
doctoral, and postdoctoral levels of training to
administer, enhance, or provide services to improve
results for children with disabilities.
``(B) Providing interdisciplinary training for
various types of leadership personnel, including
teacher preparation faculty, administrators,
researchers, supervisors, principals, and other persons
whose work affects early intervention, educational, and
transitional services for children with disabilities.
``(e) Applications.--
``(1) In general.--Any eligible entity that wishes to
receive a grant, or enter into a contract or cooperative
agreement, under this section shall submit an application to
the Secretary at such time, in such manner, and containing such
information as the Secretary may require.
``(2) Identified state needs.--
``(A) Requirement to address identified needs.--Any
application 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 applicant proposes to serve.
``(B) Cooperation with state educational
agencies.--Any applicant that is not a local
educational agency or a State educational agency shall
include information demonstrating to the satisfaction
of the Secretary that the applicant and one or more
State educational agencies or local educational
agencies will cooperate in carrying out and monitoring
the project.
``(3) Acceptance by states of personnel preparation
requirements.--The Secretary may require applicants to provide
assurances from one or more States that such States--
``(A) intend to accept successful completion of the
proposed personnel preparation program as meeting State
personnel standards for serving children with
disabilities or serving infants and toddlers with
disabilities; and
``(B) need personnel in the area or areas in which
the applicant proposes to provide preparation, as
identified in the States' comprehensive systems of
personnel development under parts B and C.
``(f) Selection of Recipients.--
``(1) Impact of project.--In selecting recipients under
this section, the Secretary shall consider the impact of the
project proposed in the application in meeting the need for
personnel identified by the States.
``(2) Requirement on applicants to meet state and
professional standards.--The Secretary shall make grants under
this section only to eligible applicants that meet State and
professionally-recognized standards for the preparation of
special education and related services personnel, if the
purpose of the project is to assist personnel in obtaining
degrees.
``(3) Preferences.--In selecting recipients under this
section, the Secretary may--
``(A) give preference to institutions of higher
education that are educating regular education
personnel to meet the needs of children with
disabilities in integrated settings and educating
special education personnel to work in collaboration
with regular educators in integrated settings; and
``(B) give preference to institutions of higher
education that are successfully recruiting and
preparing individuals with disabilities and individuals
from groups that are underrepresented in the profession
for which they are preparing individuals.
``(g) Service Obligation.--
``(1) In general.--Each application for funds under
subsections (b) and (c) shall include an assurance that the
applicant will ensure that individuals who receive a
scholarship under the proposed project will subsequently
provide special education and related services to children with
disabilities for a period of 2 years for every year for which
assistance was received or repay all or part of the cost of
that assistance, in accordance with regulations issued by the
Secretary.
``(2) Leadership preparation.--Each application for funds
under subsection (d) shall include an assurance that the
applicant will ensure that individuals who receive a
scholarship under the proposed project will subsequently
perform work related to their preparation for a period of 2
years for every year for which assistance was received or repay
all or part of such costs, in accordance with regulations
issued by the Secretary.
``(h) Scholarships.--The Secretary may include funds for
scholarships, with necessary stipends and allowances, in awards under
subsections (b), (c), and (d).
``SEC. 666. STUDIES AND EVALUATIONS.
``(a) In General.--
``(1) Progress assessment.--The Secretary shall, in
accordance with the priorities determined under this section
and in section 663, directly or through competitive grants,
contracts, or cooperative agreements, assess the progress in
the implementation of this Act, including the effectiveness of
State and local efforts to provide--
``(A) a free appropriate public education to children with
disabilities; and
``(B) early intervention services to infants and toddlers
with disabilities and infants and toddlers who would be at risk
of having substantial developmental delays if early
intervention services were not provided to them.
``(2) Delegation.--The Secretary shall designate the
Director of the Institute for Education Sciences to carry out
this section.
``(3) Authorized activities.--In carrying out this
subsection, the Secretary may support objective studies,
evaluations, and assessments, including studies that--
``(A) analyze issues identified in the research
agenda in section 663(d);
``(B) meets the standards in section 663(c); and
``(C) undertake one or more of the following:
``(i) An analysis of the 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.
``(ii) An analysis of 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.
``(iii) An assessment of educational and
transitional services and results for children
with disabilities from minority backgrounds,
including--
``(I) data on--
``(aa) the number of
minority children who are
referred for special education
evaluation;
``(bb) the number of
minority children who are
receiving special education and
related services and their
educational or other service
placement;
``(cc) the number of
minority children who graduated
from secondary programs with a
regular diploma in the standard
number of years; and
``(dd) the number of
minority children who drop out
of the educational system
without a regular diploma; and
``(II) the performance of children
with disabilities from minority
backgrounds on State assessments and
other performance indicators
established for all students.
``(iv) A measurement of educational and
transitional services and results of children
with disabilities served under this Act,
including longitudinal studies that--
``(I) examine educational and
transitional services and results for
children with disabilities who are 3
through 17 years of age and are
receiving special education and related
services under this Act, using a
national, representative sample of
distinct age cohorts and disability
categories; and
``(II) examine educational results,
transition services, postsecondary
placement, and employment status of
individuals with disabilities, 18
through 21 years of age, who are
receiving or have received special
education and related services under
this Act; and
``(v) An identification and report on the
placement of children with disabilities by
disability category.
``(b) National Assessment.--
``(1) In general.--The Secretary shall carry out a national
assessment of activities carried out with Federal funds under
this Act in order--
``(A) to determine the effectiveness of this Act in
achieving its purposes;
``(B) to provide timely information to the
President, the Congress, the States, local educational
agencies, and the public on how to implement the Act
more effectively; and
``(C) to provide the President and the Congress
with information that will be useful in developing
legislation to achieve the purposes of this Act more
effectively.
``(2) Public comment.--
``(A) Plan.--Not later than 12 months after the
date of enactment of the Improving Education Results
for Children With Disabilities Act of 2003, the
Secretary shall publish in the Federal Register for
public comment a comprehensive plan for developing and
conducting the national assessment.
``(B) Comment period.--The Secretary shall provide
a public comment period of at least 30 days on such
plan.
``(3) Scope of assessment.--The national assessment shall
assess the--
``(A) implementation of programs assisted under
this Act and the impact of such programs on addressing
the developmental needs of, and improving the academic
achievement of, children with disabilities to enable
them to reach challenging developmental goals and
challenging State academic content standards based on
State academic assessments;
``(B) types of programs and services that have
demonstrated the greatest likelihood of helping
students reach the challenging State academic content
standards and developmental goals;
``(C) implementation of the professional
development activities assisted under this Act and the
impact on instruction, student academic achievement,
and teacher qualifications to enhance the ability of
special education teachers and regular education
teachers to improve results for children with
disabilities;
``(D) effectiveness of schools, local educational
agencies, States, other recipients of assistance under
this Act, and the Secretary in achieving the purposes
of this Act by--
``(i) improving the academic achievement of
children with disabilities and their
performance on regular State-wide 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 over-identification 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 and voluntary binding
arbitration.
``(4) Interim and final reports.--The Secretary shall
submit to the President and the Congress--
``(A) an interim report that summarizes the
preliminary findings of the assessment not later than
30 months after the date of the enactment of the
Improving Education Results for Children With
Disabilities Act of 2003; and
``(B) a final report of the findings of the
assessment not later than 5 years after the date of the
enactment of such Act.
``(c) Annual Report.--The Secretary shall provide an annual report
to the Congress that--
``(1) summarizes the research conducted under section 663;
``(2) analyzes and summarizes the data reported by the
States and the Secretary of the Interior under section 618;
``(3) summarizes the studies and evaluations conducted
under this section and the timeline for their completion;
``(4) describes the extent and progress of the national
assessment; and
``(5) the findings and determinations resulting from
reviews of State implementation of this Act.
``SEC. 667. 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 2003 through
2009.
``Subpart 3--Supports to Improve Results for Children With Disabilities
``SEC. 671. PURPOSES.
``The purposes of this subpart are to ensure that--
``(1) children with disabilities and their parents receive
training and information on their rights, responsibilities, and
protections under this Act, in order to develop the skills
necessary to cooperatively and effectively participate in
planning and decision making relating to early intervention,
educational, and transitional services;
``(2) parents, teachers, administrators, early intervention
personnel, related services personnel, and transition personnel
receive coordinated and accessible technical assistance and
information to assist them in improving early intervention,
educational, and transitional services and results for children
with disabilities and their families; and
``(3) appropriate technology and media are researched,
developed, and demonstrated, to improve and implement early
intervention, educational, and transitional services and
results for children with disabilities and their families.
``SEC. 672. PARENT AND COMMUNITY TRAINING AND INFORMATION CENTERS.
``(a) Program Authorized.--The Secretary may make grants to, and
enter into contracts and cooperative agreements with, parent and
community organizations to support parent and community training and
information centers to carry out activities under this section.
``(b) Required Activities.--Each parent and community 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, including underserved parents and parents
of children who may be inappropriately identified, to enable
children with disabilities--
``(A) to meet developmental 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) ensure that the training and information provided
meets the needs of low-income parents and parents of children
with limited English proficiency;
``(3) serve the parents of infants, toddlers, and children
with the full range of disabilities;
``(4) assist parents--
``(A) to better understand the nature of their
children's disabilities and their educational,
developmental, and transitional needs;
``(B) to communicate effectively and work
collaboratively with personnel responsible for
providing special education, early intervention,
transition services, and related services;
``(C) to participate in decisionmaking processes
and the development of individualized education
programs under part B and individualized family service
plans under part C;
``(D) to obtain appropriate information about the
range, type and quality of options, programs, services,
and resources available to assist children with
disabilities and their families in school and at home;
``(E) to understand the provisions of this Act for
the education of, and the provision of early
intervention services to, children with disabilities;
and
``(F) to participate in activities at the school
level which benefit their children;
``(5) assist parents in resolving disputes in the most
expeditious way possible, including encouraging the use, and
explaining the benefits, of alternative methods of dispute
resolution, such as the use of individualized education program
facilitators and mediation and voluntary binding arbitration
processes described in section 615(e);
``(6) assist parents to understand the availability of, and
how to effectively use, procedural safeguards under this Act;
``(7) network with appropriate clearinghouses, including
organizations conducting national dissemination activities
under subpart 2, 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; and
``(8) annually report to the Secretary on--
``(A) the number and demographics of parents to
whom it 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 community and
information center that receives assistance under this section may--
``(1) provide information to teachers and other
professionals to assist them in improving results for children
with disabilities; and
``(2) assist students with disabilities to understand their
rights and responsibilities under section 615(l) on reaching
the age of majority.
``(d) Application Requirements.--Each application for assistance
under this section shall identify with specificity the special efforts
that the applicant 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
those that work with low-income parents and parents of children
with limited English proficiency.
``(e) Distribution of Funds.--
``(1) In general.--The Secretary shall make at least 1
award to a parent organization in each State, unless the
Secretary does not receive an application from such an
organization in each State of sufficient quality to warrant
approval.
``(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) Requirements.--
``(A) Meetings.--The board of directors or special
governing committee of each organization that receives
an award under this section shall meet at least once in
each calendar quarter to review the activities for
which the award was made.
``(B) Advising board.--Each special governing
committee shall directly advise the organization's
governing board of its views and recommendations.
``(2) Continuation award.--When an organization requests a
continuation award under this section, the board of directors
or special governing committee shall submit to the Secretary a
written review of the parent training and information program
conducted by the organization during the preceding fiscal year.
``(g) Definition of Parent Organization.--As used in this section,
the term `parent organization' means a private nonprofit organization
(other than an institution of higher education) that--
``(1) has a board of directors--
``(A) the majority of whom are parents of children
with disabilities ages birth through 21;
``(B) that includes--
``(i) individuals working in the fields of
special education, related services, and early
intervention; and
``(ii) individuals with disabilities; and
``(C) the parent and professional members of which
are broadly representative of the population to be
served, including low-income and limited English
proficient parents of children with disabilities; or;
``(2) has--
``(A) a membership that represents the interests of
individuals with disabilities and has established a
special governing committee that meets the requirements
of paragraph (1); and
``(B) a memorandum of understanding between the
special governing committee and the board of directors
of the organization that clearly outlines the
relationship between the board and the committee and
the decisionmaking responsibilities and authority of
each.
``(h) Exceptions.--
``(1) Federal relations.--Any organization or affiliated
entity that conducts, in whole or in part, Federal relations,
is ineligible to serve as a parent and community training and
information center and ineligible to be considered a parent
organization under subsection (g).
``(2) Prohibition on center board members and staff.--No
member of the board of directors, or paid staff, of a parent
and community training and information center may serve on the
board of directors, or as paid staff, of any organization
(whether profit or non-profit) that conducts Federal relations
in whole or in part.
``(i) Lobbying Organizations Ineligible.--
``(1) In general.--No organization is eligible for an award
under this section if it, or an affiliated organization,
engages in lobbying with the Federal Government with respect to
this Act.
``(2) Prohibition on certain board members and staff.--An
organization that receives a grant under this section may not
have, on its board of directors or in any paid position on its
staff, an individual who serves on the board of directors as a
paid staff member of any organization that engages in lobbying
activities with the Federal Government with respect to this
Act.
``(3) Definitions.--As used in this subsection--
``(A) the term `lobbying activities' has the
meaning given such term in section 2(7) of the Lobbying
Disclosure Act of 1995 (2 U.S.C. 1602(7)); and
``(B) the term `affiliated organization' has the
meaning given such term in section 4911(f)(2) of the
Internal Revenue Code of 1986 (26 U.S.C. 4911(f)(2)).
``SEC. 673. TECHNICAL ASSISTANCE FOR PARENT AND COMMUNITY TRAINING AND
INFORMATION CENTERS.
``(a) In General.--The Secretary may, directly or through awards to
eligible entities (as defined in section 662(b)), provide technical
assistance for developing, assisting, and coordinating parent and
community training and information programs carried out by parent and
community training and information centers receiving assistance under
sections 672.
``(b) Authorized Activities.--The Secretary may provide technical
assistance to a parent and community training and information 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 and voluntary binding
arbitration.
``SEC. 674. TECHNOLOGY DEVELOPMENT, DEMONSTRATION, AND UTILIZATION; AND
MEDIA SERVICES.
``(a) In General.--The Secretary shall competitively make grants
to, and enter into contracts and cooperative agreements with, eligible
entities (as defined in section 662(b)) to support activities described
in subsections (b) and (c).
``(b) Technology Development, Demonstration, and Utilization.--
``(1) In general.--In carrying out this section, the
Secretary shall support activities to promote the development,
demonstration, and utilization 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--
``(i) innovative and emerging technologies
for children with disabilities; and
``(ii) improved 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
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.
``(c) Educational Media Services; Optional Activities.--In carrying
out this section, the Secretary may support--
``(1) educational media activities that are designed to be
of educational value in the classroom setting to children with
disabilities;
``(2) providing video description, open captioning, or
closed captioning of television programs, videos, or other
materials with an education-based content for use in the
classroom setting when such services are not provided by the
producer or distributor of such information;
``(3) distributing materials described in paragraphs (1)
and (2) through such mechanisms as a loan service; and
``(4) providing free educational materials, including
textbooks, in accessible media for visually impaired and print-
disabled students in elementary and secondary schools.
``(b) Applications.--Any eligible entity (as defined in section
662(b)) 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.
``(c) 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 2003 through 2009.''.
<all>