[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1350 Referred in Senate (RFS)]

  1st Session
                                H. R. 1350


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 1, 2003

     Received; read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 AN ACT


 
To reauthorize the Individuals with Disabilities Education Act, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``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:

``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.
  ``Part B--Assistance for Education of All Children with Disabilities

``Sec. 611. Authorization; allotment; use of funds; authorization of 
                            appropriations.
``Sec. 612. State eligibility.
``Sec. 613. Local educational agency eligibility.
``Sec. 614. Evaluations, eligibility determinations, individualized 
                            education programs, and educational 
                            placements.
``Sec. 615. Procedural safeguards.
``Sec. 616. Monitoring, enforcement, 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 
                          preparation 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 preparation programs 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 training and information centers.
``Sec. 673. Community parent resource centers.
``Sec. 674. Technical assistance for parent training and information 
                            centers.
``Sec. 675. 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 prereferral 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 has 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 more equitable allocation of resources is essential 
        for the Federal Government to meet its responsibility to 
        provide an equal educational opportunity for all individuals.
            ``(7)(A) The Federal Government must respond to the growing 
        needs of an increasingly diverse society.
            ``(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 in order 
        to provide appropriate role models with sufficient knowledge to 
        address the special education needs of these students.
            ``(8)(A) The limited English proficient population is the 
        fastest growing in our Nation, and the growth is occurring in 
        many parts of our Nation.
            ``(B) Studies have documented apparent discrepancies in the 
        levels of referral and placement of limited English proficient 
        children in special education.
            ``(C) This poses a special challenge for special education 
        in the referral, assessment, and provision of services for our 
        Nation's students from non-English language backgrounds.
            ``(9)(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) In the 1998-99 school year, African American children 
        represented just 14.8 percent of the population aged 6 through 
        21, but comprised 20.2 percent of all children with 
        disabilities.
            ``(E) Studies have found that schools with predominantly 
        Caucasian students and teachers have placed disproportionately 
        high numbers of their minority students into special education.
            ``(10)(A) As the number of minority students in special 
        education increases, the number of minority teachers and 
        related services personnel produced in colleges and 
        universities continues to decrease.
            ``(B) The opportunity for full participation by minority 
        individuals, organizations, and historically black colleges and 
        universities in awards for grants and contracts, boards of 
        organizations receiving assistance under this Act, peer review 
        panels, and training of professionals in the area of special 
        education is essential to obtain greater success in the 
        education of minority children with disabilities.
    ``(d) Purposes.--The purposes of this title are--
            ``(1)(A) to ensure that all children with disabilities have 
        available to them a free appropriate public education that 
        emphasizes special education and related services designed to 
        meet their unique needs and prepare them for further education, 
        employment, and independent living;
            ``(B) to ensure that the rights of children with 
        disabilities and parents of such children are protected; and
            ``(C) to assist States, localities, educational service 
        agencies, and Federal agencies to provide for the education of 
        all children with disabilities;
            ``(2) to assist States in the implementation of a 
        statewide, comprehensive, coordinated, multidisciplinary, 
        interagency system of early intervention services for infants 
        and toddlers with disabilities and their families;
            ``(3) to ensure that educators and parents have the 
        necessary tools to improve educational results for children 
        with disabilities by supporting system improvement activities; 
        coordinated research and personnel preparation; coordinated 
        technical assistance, dissemination, and support; and 
        technology development and media services; and
            ``(4) to assess, and ensure the effectiveness of, efforts 
        to educate children with disabilities.

``SEC. 602. DEFINITIONS.

    ``Except as otherwise provided, 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 
                that is reasonably calculated to provide educational 
                benefit to enable the child with a disability to access 
                the general curriculum; 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 subsection 
                (a) or (b) of section 101 of the Higher Education Act 
                of 1965; and
                    ``(B) also includes any community college receiving 
                funding from the Secretary of the Interior under the 
                Tribally Controlled 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 672(g).
            ``(22) Parent training and information center.--The term 
        `parent training and information center' means a center 
        assisted under sections 672 and 673.
            ``(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, particularly as 
teachers, related services personnel, early intervention providers, and 
administrators, in programs assisted under this Act.

``SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

    ``(a) In General.--The Secretary may issue regulations under this 
Act only to the extent that such regulations are reasonably necessary 
to ensure that there is compliance with the specific requirements of 
this Act.
    ``(b) Protections Provided to Children.--The Secretary may not 
implement, or publish in final form, any regulation prescribed pursuant 
to this Act that 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 60 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 issued, when required, in compliance with the 
        requirements of section 553 of title 5, United States Code; and
            ``(2) is provided as informal guidance and 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.''.

SEC. 103. SECTION 608 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; and
            ``(2) minimize the number of rules, regulations, and 
        policies to which the State's local educational agencies and 
        schools are subject to under this Act.
    ``(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. 104. GAO REPORTS.

    (a) Paperwork Study.--
            (1) Review.--The Comptroller General shall conduct a review 
        of all Federal requirements under the Individuals with 
        Disabilities Education Act, and the requirements of a 
        reasonable sample of State and local educational agencies 
        relating to such Act, to determine which requirements result in 
        excessive paperwork completion burdens for teachers, related 
        services providers, and school administrators. As part of such 
        review, the Comptroller General shall include recommendations 
        to reduce or eliminate the excessive paperwork burdens 
        described in the preceding sentence.
            (2) Report.--Not later than 2 years after the date of the 
        enactment of this Act, and once every 2 years thereafter, the 
        Comptroller General shall prepare and submit to the appropriate 
        congressional committees a report that contains the results of 
        the review under paragraph (1).
    (b) Disability Definitions.--
            (1) Review.--The Comptroller General of the United States 
        shall conduct a review of--
                    (A) variation among States in definitions, and 
                evaluation processes, relating to the provision of 
                services under the Individuals with Disabilities 
                Education Act to children having conditions described 
                in section 602(a)(3) of such Act using the terms 
                ``emotional disturbance'', ``other health 
                impairments'', and ``specific learning disability''; 
                and
                    (B) the degree to which these definitions and 
                evaluation processes conform to scientific, peer-
                reviewed research.
            (2) Report.--Not later than 2 years after the date of the 
        enactment of this Act, the Comptroller General shall prepare 
        and submit to the appropriate congressional committees a report 
        that contains the results of the review under paragraph (1).
    (c) Distance Learning Professional Development Programs.--
            (1) Study.--The Comptroller General shall conduct a study 
        on existing or developing professional development programs for 
        special education personnel delivered through the use of 
        technology and distance learning.
            (2) Report.--Not later than 2 years after the date of the 
        enactment of this Act, the Comptroller General shall submit a 
        report containing the findings from the study conducted under 
        paragraph (1) to the appropriate congressional committees.
    (d) Limited English Proficient Children With Disabilities.--
            (1) Study.--The Comptroller General shall conduct a study 
        on how limited English proficient students are being served 
        under the Individuals with Disabilities Education Act.
            (2) 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 of the United 
        States shall submit a report containing the findings from the 
        study conducted under paragraph (1) to the appropriate 
        congressional committees.
    (e) Definition.--In this section, the term ``appropriate 
congressional committees'' means the Committee on Education and the 
Workforce of the House of Representatives and the Committee on Health, 
Education, Labor, and Pensions of the Senate.

  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 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 13.5 
        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 (i), 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 (i), the Secretary shall reserve 1.226 
percent to provide assistance to the Secretary of the Interior in 
accordance with subsection (h).
    ``(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 (i) 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.
    ``(e) State-Level Activities.--
            ``(1) In general.--
                    ``(A) Each State may retain not more than the 
                amount described in subparagraph (B) for administration 
                and other State-level activities in accordance with 
                paragraphs (2), (3), and (4).
                    ``(B) 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--
                            ``(i) the percentage increase, if any, from 
                        the preceding fiscal year in the State's 
                        allocation under this section; or
                            ``(ii) the rate of inflation, as measured 
                        by the percentage increase, if any, from the 
                        preceding fiscal year in the Consumer Price 
                        Index For All Urban Consumers, published by the 
                        Bureau of Labor Statistics of the Department of 
                        Labor.
                    ``(C) A State may use funds it retains under 
                subparagraph (A) without regard to--
                            ``(i) the prohibition on commingling of 
                        funds in section 612(a)(18)(B); and
                            ``(ii) the prohibition on supplanting other 
                        funds in section 612(a)(18)(C).
            ``(2) State administration.--
                    ``(A) For the purpose of administering this part, 
                including section 619 (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 use not more than 20 
                        percent of the maximum amount it may retain 
                        under paragraph (1)(A) for any fiscal year or 
                        $750,000, whichever is greater; and
                            ``(ii) each outlying area may use up to 5 
                        percent of the amount it receives under this 
                        section for any fiscal year or $35,000 
                        (adjusted by the cumulative rate of inflation 
                        since fiscal year 1998, 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.
                    ``(B) Funds described in subparagraph (A) 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.
            ``(3) High cost special education and related services.--
        Each State may use not more than 40 percent of the maximum 
        amount it may retain under paragraph (1)(A) for any fiscal year 
        to establish and implement cost or risk sharing funds, 
        consortia, or cooperatives to assist local educational agencies 
        in providing high cost special education and related services.
            ``(4) Other state-level activities.--Each State shall use 
        any funds it retains under paragraph (1) and does not use under 
        paragraph (2) or (3) for any of the following:
                    ``(A) Support and direct services, including 
                technical assistance and personnel development and 
                training.
                    ``(B) Administrative costs of monitoring and 
                complaint investigation.
                    ``(C) To establish and implement the mediation and 
                voluntary binding arbitration processes required by 
                sections 612(a)(17) and 615(e), including providing for 
                the costs of mediators, arbitrators, and support 
                personnel.
                    ``(D) To assist local educational agencies in 
                meeting personnel shortages.
                    ``(E) Activities at the State and local levels to 
                meet the performance goals established by the State 
                under section 612(a)(15) and to support implementation 
                of the State plan under subpart 1 of part D if the 
                State receives funds under that subpart.
                    ``(F) To support paperwork reduction activities, 
                including expanding the appropriate use of technology 
                in the IEP process under this part.
                    ``(G) To develop and maintain a comprehensive, 
                coordinated, prereferral 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.
                    ``(H) To support capacity building activities and 
                improve the delivery of services by local educational 
                agencies to improve results for children with 
                disabilities.
                    ``(I) For subgrants to local educational agencies 
                for the purposes described in paragraph (5)(A).
            ``(5)(A) Subgrants to local educational agencies for 
        accountability.--In any fiscal year in which the percentage 
        increase in the State's allocation under this section exceeds 
        the rate of inflation (as measured by the percentage increase, 
        if any, from the preceding fiscal year in the Consumer Price 
        Index For All Urban Consumers, published by the Bureau of Labor 
        Statistics of the Department of Labor), each State shall 
        reserve, from its allocation under this section, the amount 
        described in subparagraph (B) to make subgrants to local 
        educational agencies, unless that amount is less than $100,000, 
        to provide technical assistance and 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 on the basis, in whole or in part, of the 
        assessment results of the disaggregated subgroup of students 
        with disabilities, including providing professional development 
        to special and regular education teachers, based on 
        scientifically based research to improve educational 
        instruction.
            ``(B) Maximum subgrant.--For each fiscal year, the amount 
        referred to in subparagraph (A) is--
                    ``(i) the maximum amount the State was allowed to 
                retain under paragraph (1)(A) for the prior fiscal 
                year, or for fiscal year 1998, 25 percent of the 
                State's allocation for fiscal year 1997 under this 
                section; multiplied by
                    ``(ii) the difference between the percentage 
                increase in the State's allocation under this section 
                and the rate of inflation, as measured by the 
                percentage increase, if any, from the preceding fiscal 
                year in the Consumer Price Index For All Urban 
                Consumers, published by the Bureau of Labor Statistics 
                of the Department of Labor.
            ``(6) 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--
                    ``(A) how amounts retained under paragraph (1) will 
                be used to meet the requirements of this part;
                    ``(B) how those amounts will be allocated among the 
                activities described in this subsection to meet State 
                priorities based on input from local educational 
                agencies; and
                    ``(C) the percentage of those amounts, if any, that 
                will be distributed to local educational agencies by 
                formula.
    ``(f) Subgrants to Local Educational Agencies.--
            ``(1) Subgrants required.--Each State that receives a grant 
        under this section for any fiscal year shall distribute any 
        funds it does not retain under subsection (e) to local 
        educational agencies, including public charter schools that 
        operate as local educational agencies, in the State that have 
        established their eligibility under section 613, for use in 
        accordance with this part.
            ``(2) Procedure for allocations to local educational 
        agencies.--For each fiscal year for which funds are allocated 
        to States under subsection (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.
            ``(4) Special rule for increased funds.--
                    ``(A) In general.--If the amount available for 
                allocations to States under subsection (d)(1) for a 
                fiscal year is equal to or greater than the amount 
                allocated to States for fiscal year 2003, then each 
                State may retain not more than the amount of funds it 
                had reserved under subsection (e)(1)(B) for fiscal year 
                2003.
                    ``(B) Exception.--In any fiscal year in which the 
                percentage increase of the amount available for 
                allocations to States under subsection (d)(1) is equal 
                to or greater than the rate of inflation, each State 
                may increase its allocation under subsection (e)(1)(B) 
                by the amount allowed under subsection (e)(4)(B), for 
                the sole purpose of making grants under subsection 
                (e)(4)(A).
    ``(g) 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.
    ``(h) Use of Amounts by Secretary of the Interior.--
            ``(1) Provision of amounts for assistance.--
                    ``(A) In general.--The Secretary of Education shall 
                provide amounts to the Secretary of the Interior to 
                meet the need for assistance for the education of 
                children with disabilities on reservations aged 5 to 
                21, inclusive, enrolled in elementary 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. Of the amount described in the preceding 
                sentence--
                            ``(i) 80 percent shall be allocated to such 
                        schools by July 1 of that fiscal year; and
                            ``(ii) 20 percent shall be allocated to 
                        such schools by September 30 of that fiscal 
                        year.
                    ``(B) Calculation of number of children.--In the 
                case of Indian students aged 3 to 5, inclusive, who are 
                enrolled in programs affiliated with the Bureau of 
                Indian Affairs (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 (i), the Secretary of Education shall make 
                payments to the Secretary of the Interior to be 
                distributed to tribes or tribal organizations (as 
                defined under section 4 of the Indian Self-
                Determination and Education Assistance Act) or 
                consortia of the above to provide for the coordination 
                of assistance for special education and related 
                services for children with disabilities aged 3 through 
                5 on reservations served by elementary 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).
    ``(i) Authorization of Appropriations.--For the purpose of carrying 
out this part, other than section 619, there are authorized to be 
appropriated--
            ``(1) $11,074,398,000 for fiscal year 2004;
            ``(2) $13,574,398,000 for fiscal year 2005;
            ``(3) $15,746,302,000 for fiscal year 2006;
            ``(4) $17,918,205,000 for fiscal year 2007;
            ``(5) $20,090,109,000 for fiscal year 2008;
            ``(6) $22,262,307,000 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 ``reasonably demonstrates 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(d) (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 in the area served by such 
                        agency, provision is made for the participation 
                        of those children in the program assisted or 
                        carried out under this part by providing for 
                        such children special education and related 
                        services in accordance with the following 
                        requirements, unless the Secretary has arranged 
                        for services to those children under subsection 
                        (f):
                                    ``(I) Amounts to be expended for 
                                the provision of those services 
                                (including direct services to 
                                parentally-placed children) by 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 with 
                                disabilities parentally-placed in 
                                private schools as described in clause 
                                (iii), shall conduct a thorough and 
                                complete child-find process to 
                                determine the number of parentally-
                                placed children with disabilities 
                                attending private schools located in 
                                the district.
                                    ``(III) Such services may be 
                                provided to children with disabilities 
                                on the premises of private, including 
                                religious, schools, to the extent 
                                consistent with law.
                                    ``(IV) State and local funds may 
                                supplement and in no case shall 
                                supplant the proportionate amount of 
                                Federal funds required to be expended 
                                under this paragraph.
                                    ``(V) Each local educational agency 
                                maintains in its records and provides 
                                to the State educational agency the 
                                number of children evaluated under this 
                                paragraph, the number of children 
                                determined to be children with 
                                disabilities, and the number of 
                                children served under this subsection.
                            ``(ii) Child-find requirement.--
                                    ``(I) In general.--The requirements 
                                of paragraph (3) of this subsection 
                                (relating to child find) shall apply 
                                with respect to children with 
                                disabilities in the State who are 
                                enrolled in private, including 
                                religious, elementary and secondary 
                                schools.
                                    ``(II) Equitable participation.--
                                The child-find process must be designed 
                                to ensure the equitable participation 
                                of parentally-placed private school 
                                children and an accurate count of such 
                                children.
                                    ``(III) Activities.--In carrying 
                                out this clause, the local educational 
                                agency, or where applicable, the State 
                                educational agency, shall undertake 
                                activities similar to those activities 
                                undertaken for its public school 
                                children.
                                    ``(IV) Cost.--The cost of carrying 
                                out this clause, including individual 
                                evaluations, may not be considered in 
                                determining whether a local education 
                                agency has met its obligations under 
                                clause (i).
                                    ``(V) Completion period.--Such 
                                child-find process shall be completed 
                                in a time period comparable to that for 
                                other students attending public schools 
                                in the local educational agency.
                            ``(iii) Consultation.--To ensure timely and 
                        meaningful consultation, a local educational 
                        agency, or where appropriate, a state 
                        educational agency, shall consult with 
                        representatives of children with disabilities 
                        parentally-placed in private schools during the 
                        design and development of special education and 
                        related services for these children including--
                                    ``(I) the child-find process and 
                                how parentally-placed private school 
                                children suspected of having a 
                                disability can participate equitably, 
                                including how parents, teachers, and 
                                private school officials will be 
                                informed of the process;
                                    ``(II) the determination of the 
                                proportionate share of Federal funds 
                                available to serve parentally-placed 
                                private school children with 
                                disabilities under this paragraph, 
                                including the determination of how 
                                those funds were calculated;
                                    ``(III) the consultation process 
                                among the district, private school 
                                officials, and parents of parentally-
                                placed private school children with 
                                disabilities including how such process 
                                will operate throughout the school year 
                                to ensure that parentally-placed 
                                children with disabilities identified 
                                through the child find process can 
                                meaningfully participate in special 
                                education and related services; and
                                    ``(IV) how, where, and by whom 
                                special education and related services 
                                will be provided for parentally-placed 
                                private school children, including a 
                                discussion of alternate service 
                                delivery mechanisms, how such services 
                                will be apportioned if funds are 
                                insufficient to serve all children, and 
                                how and when these decisions will be 
                                made.
                            ``(iv) Compliance.--
                                    ``(I) In general.--A private school 
                                official shall have the right to 
                                complain to the State educational 
                                agency that the local educational 
                                agency did not engage in consultation 
                                that was meaningful and timely, or did 
                                not give due consideration to the views 
                                of the private school official.
                                    ``(II) Procedure.--If the private 
                                school official wishes to complain, the 
                                official shall provide the basis of the 
                                noncompliance with this section by the 
                                local educational agency to the State 
                                educational agency, and the local 
                                educational agency shall forward the 
                                appropriate documentation to the State 
                                educational agency. If the private 
                                school official is dissatisfied with 
                                the decision of the State educational 
                                agency, such official may complain to 
                                the Secretary by providing the basis of 
                                the noncompliance with this section by 
                                the local educational agency to the 
                                Secretary, and the State educational 
                                agency shall forward the appropriate 
                                documentation to the Secretary.
                            ``(v) Provision of services.--
                                    ``(I) Directly or through 
                                contracts.--An agency may provide 
                                special education and related services 
                                directly or through contracts with 
                                public and private agencies, 
                                organizations, and institutions.
                                    ``(II) Secular, neutral, 
                                nonideological.--Special education and 
                                related services, including materials 
                                and equipment, shall be secular, 
                                neutral, and nonideological.
                            ``(vi) Public control of funds.--
                                    ``(I) In general.--The control of 
                                funds used to provide special education 
                                and related services under this 
                                section, and title to materials, 
                                equipment, and property purchased with 
                                those funds, shall be in a public 
                                agency for the uses and purposes 
                                provided in this Act, and a public 
                                agency shall administer the funds and 
                                property.
                                    ``(II) Provision of services.--The 
                                provision of services under this Act 
                                shall be provided--
                                            ``(aa) by employees of a 
                                        public agency; or
                                            ``(bb) through contract by 
                                        the public agency with an 
                                        individual, association, 
                                        agency, organization, or other 
                                        entity.
                    ``(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;
                                            ``(bb) the parents had not 
                                        received notice, pursuant to 
                                        section 615, of the notice 
                                        requirement in clause (iii)(I); 
                                        or
                                            ``(cc) compliance with 
                                        clause (iii)(I) would likely 
                                        result in physical harm to the 
                                        child; and
                                    ``(II) may, in the discretion of a 
                                court or a hearing officer, not be 
                                reduced or denied for failure to 
                                provide such notice if--
                                            ``(aa) the parent is 
                                        illiterate or cannot write in 
                                        English; or
                                            ``(bb) compliance with 
                                        clause (iii)(I) would likely 
                                        result in serious emotional 
                                        harm to the child.
            ``(11) State educational agency responsible for general 
        supervision.--
                    ``(A) In general.--The State educational agency is 
                responsible for ensuring that--
                            ``(i) the requirements of this part are 
                        met; 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 
                        in order to ensure that such individuals are 
                        qualified to provide such 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.
                    ``(C) Innovative strategies for professional 
                development.--The State educational agency encourages 
                the development and use of research-based innovative 
                strategies, such as strategies using technology, peer 
                networks, and distance learning, to deliver intensive 
                professional development programs for special and 
                regular education teachers, administrators, principals, 
                and related services personnel that--
                            ``(i) improve educational results for 
                        students with disabilities; and
                            ``(ii) are both cost-effective and easily 
                        accessible.
            ``(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), which may 
                include elements of the reports required under section 
                1111(h) of the Elementary and Secondary Education Act 
                of 1965.
            ``(16) Participation in assessments.--
                    ``(A) In general.--(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 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 and implemented 
                        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) Dispute resolution.--The State has in effect systems 
        of 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 26);
                            ``(ii) individuals with disabilities;
                            ``(iii) teachers;
                            ``(iv) representatives of institutions of 
                        higher education that prepare special education 
                        and related services personnel;
                            ``(v) State and local education officials;
                            ``(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 26.
                    ``(D) Duties.--The advisory panel shall--
                            ``(i) advise the State educational agency 
                        of unmet needs within the State in the 
                        education of children with disabilities;
                            ``(ii) comment publicly on any rules or 
                        regulations proposed by the State regarding the 
                        education of children with disabilities;
                            ``(iii) advise the State educational agency 
                        in developing evaluations and reporting on data 
                        to the Secretary under section 618;
                            ``(iv) advise the State educational agency 
                        in developing corrective action plans to 
                        address findings identified in Federal 
                        monitoring reports under this part; and
                            ``(v) advise the State educational agency 
                        in developing and implementing policies 
                        relating to the coordination of services for 
                        children with disabilities.
            ``(22) Suspension and expulsion rates.--
                    ``(A) In general.--The State educational agency 
                examines data, including data disaggregated by race and 
                ethnicity, to determine if significant discrepancies 
                are occurring in the rate of long-term suspensions and 
                expulsions of children with disabilities--
                            ``(i) among local educational agencies in 
                        the State; or
                            ``(ii) compared to such rates for 
                        nondisabled children within such agencies.
                    ``(B) Review and revision of policies.--If such 
                discrepancies are occurring, the State educational 
                agency reviews and, if appropriate, revises (or 
                requires the affected State or local educational agency 
                to revise) its policies, procedures, and practices 
                relating to the development and implementation of IEPs, 
                the use of positive behavioral interventions and 
                supports, and procedural safeguards, to ensure that 
                such policies, procedures, and practices comply with 
                this Act.''.
    (4) Section 612(a) of the Individuals with Disabilities Education 
Act (20 U.S.C. 1412(a)(13)-(22)) is amended by adding at the end the 
following:
            ``(23) Instructional materials.--
                    ``(A) In general.--The State adopts the national 
                instructional materials accessibility standard for the 
                purposes of providing instructional materials to blind 
                persons or other persons with print disabilities in a 
                timely manner after the publication of the standard by 
                the Secretary in the Federal Register.
                    ``(B) Purchase requirement.--Not later than 2 years 
                after the date of the enactment of the Improving 
                Education Results for Children With Disabilities Act of 
                2003, the State educational agency, when purchasing 
                instructional materials for use in public elementary 
                and secondary schools within the State, requires the 
                publisher of the instructional materials, as a part of 
                any purchase agreement that is made, renewed, or 
                revised, to prepare and supply electronic files 
                containing the contents of the instructional materials 
                using the national instructional materials 
                accessibility standard.
                    ``(C) Definition.--For purposes of this paragraph, 
                the term `instructional materials' means printed 
                textbooks and related core materials that are written 
                and published primarily for use in elementary school 
                and secondary school instruction and are required by a 
                State educational agency or local educational agency 
                for use by pupils in the classroom.
            ``(24) Overidentification and disproportionality.--The 
        State has in effect, consistent with the purposes of this Act 
        and with section 618, policies and procedures designed to 
        prevent the overidentification or disproportionate 
        representation by race and ethnicity 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).
            ``(25) Prohibition on psychotropic medication.--The State 
        educational agency develops and implements policies and 
        procedures prohibiting school personnel from requiring a child 
        to obtain a prescription for substances covered by section 
        202(c) of the Controlled Substances Act (21 U.S.C. 812(c)) as a 
        condition of attending school or receiving services.''.
    (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 reasonably 
demonstrates 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.
                            ``(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, but 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 a system of 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, 
                consortia, or cooperatives for the agency itself, or 
                for local educational agencies working in consortium of 
                which the local educational 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 educational 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 on the same basis as it provides those funds to 
                its other public schools (including, at the option of 
                such agency, proportional distribution based on 
                relative enrollment of children with disabilities at 
                such charter schools), and at the same time as such 
                agency distributes other Federal funds to those 
                schools, consistent with the State's charter law.
            ``(6) Purchase of instructional materials.--Not later than 
        2 years after the date of the enactment of the Improving 
        Education Results for Children With Disabilities Act of 2003, 
        the local educational agency, when purchasing instructional 
        materials for use in public elementary and secondary schools 
        within the local educational agency, requires the publisher of 
        the instructional materials, as a part of any purchase 
        agreement that is made, renewed, or revised, to prepare and 
        supply electronic files containing the contents of the 
        instructional materials using the national instructional 
        materials accessibility standard described in section 
        612(a)(23).
            ``(7) Information for state educational agency.--The local 
        educational agency shall provide the State educational agency 
        with information necessary to enable the State educational 
        agency to carry out its duties under this part, including, with 
        respect to paragraphs (15) and (16) of section 612(a), 
        information relating to the performance of children with 
        disabilities participating in programs carried out under this 
        part.
            ``(8) Public information.--The local educational agency 
        shall make available to parents of children with disabilities 
        and to the general public all documents relating to the 
        eligibility of such agency under this part.
            ``(9) Records regarding migratory children with 
        disabilities.--The local educational agency shall cooperate in 
        the Secretary's efforts under section 1308 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 6398) to ensure 
        the linkage of records pertaining to migratory children with a 
        disability for the purpose of electronically exchanging, among 
        the States, health and educational information regarding such 
        children.
    ``(b) Exception for Prior Local Plans.--
            ``(1) In general.--If a local educational agency or State 
        agency has on file with the State educational agency policies 
        and procedures that demonstrate that such local educational 
        agency, or such State agency, as the case may be, meets any 
        requirement of subsection (a), including any policies and 
        procedures filed under this part as in effect before the 
        effective date of the 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(f) if such agencies were eligible 
        for such payments.
            ``(3) Requirements.--Local educational agencies that 
        establish joint eligibility under this subsection shall--
                    ``(A) adopt policies and procedures that are 
                consistent with the State's policies and procedures 
                under section 612(a); and
                    ``(B) be jointly responsible for implementing 
                programs that receive assistance under this part.
            ``(4) Requirements for educational service agencies.--
                    ``(A) In general.--If an educational service agency 
                is required by State law to carry out programs under 
                this part, the joint responsibilities given to local 
                educational agencies under this subsection shall--
                            ``(i) not apply to the administration and 
                        disbursement of any payments received by that 
                        educational service agency; and
                            ``(ii) be carried out only by that 
                        educational service agency.
                    ``(B) Additional requirement.--Notwithstanding any 
                other provision of this subsection, an educational 
                service agency shall provide for the education of 
                children with disabilities in the least restrictive 
                environment, as required by section 612(a)(5).
    ``(f) Prereferral Services.--
            ``(1) In general.--A local educational agency may use not 
        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 evaluations, services, 
                and supports, including scientifically based literacy 
                instruction and speech therapy.
                    ``(C) Providing behavioral evaluations and services 
                and supports, including positive behavioral 
                interventions and supports.
            ``(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 prereferral 
        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 during the 
                preceding 2-year period.
            ``(5) Coordination with the elementary and secondary 
        education act of 1965.--
                    ``(A) In general.--Comprehensive coordinated 
                prereferral educational support services provided under 
                this subsection may be aligned with activities funded 
                by, and carried out under, the Elementary and Secondary 
                Education Act of 1965, such as the Reading First 
                program under subpart 1 of part B of title I of such 
                Act, the Early Reading First program under subpart 2 of 
                part B of title I of such Act, reading and math 
                supports under part A of title I of such Act, and 
                behavior intervention supports, that improve results 
                for children with disabilities.
                    ``(B) Maintenance 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(f) shall 
demonstrate to the satisfaction of the State educational agency that--
            ``(1) all children with disabilities who are participating 
        in programs and projects funded under this part receive a free 
        appropriate public education, and that those children and their 
        parents are provided all the rights and procedural safeguards 
        described in this part; and
            ``(2) the agency meets such other conditions of this 
        section as the Secretary determines to be appropriate.
    ``(i) Disciplinary Information.--The State may require that a local 
educational agency include in the records of a child with a disability 
a statement of any current or previous disciplinary action that has 
been taken against the child and transmit such statement to the same 
extent that such disciplinary information is included in, and 
transmitted with, the student records of nondisabled children. The 
statement may include a description of any behavior engaged in by the 
child that required disciplinary action, a description of the 
disciplinary action taken, and any other information that is relevant 
to the safety of the child and other individuals involved with the 
child. If the State adopts such a policy, and the child transfers from 
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.

    (a) In General.--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) shall obtain informed 
                                consent from the parent of such child 
                                before conducting the evaluation. 
                                Parental consent for evaluation shall 
                                not be construed as consent for 
                                placement for receipt of special 
                                education and related services.
                                    ``(II) Consent for services.--An 
                                agency that is responsible for making a 
                                free appropriate public education 
                                available to a child with a disability 
                                under this part shall seek to obtain 
                                informed consent from the parent of 
                                such child before providing special 
                                education and related services to the 
                                child.
                            ``(ii) Absence of consent.--
                                    ``(I) For initial evaluation.--If 
                                the parent of such child does not 
                                provide consent for an initial 
                                evaluation under clause (i)(I), or the 
                                parent fails to respond to a request to 
                                provide the consent, the local 
                                educational agency may pursue the 
                                initial evaluation of the child 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 parent 
                                of such child does not provide consent 
                                for services under clause (i)(II), or 
                                the parent fails 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.
                    ``(E) Rule of construction.--The screening of a 
                student by a teacher or specialist to determine 
                appropriate instructional strategies for curriculum 
                implementation shall not be considered to be an 
                evaluation for eligibility for special education and 
                related services.
            ``(2) Reevaluations.--
                    ``(A) In general.--A local educational agency shall 
                ensure that a reevaluation of each child with a 
                disability is conducted in accordance with subsections 
                (b) and (c)--
                            ``(i) if the local educational agency 
                        determines that the educational 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;
                    ``(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 in the 
                        language and form most likely to yield accurate 
                        academic and developmental data, unless it is 
                        clearly not feasible to do so;
                            ``(iii) are used for the purposes for which 
                        the assessments or measures are valid and 
                        reliable;
                            ``(iv) are administered by trained and 
                        knowledgeable personnel; and
                            ``(v) are administered in accordance with 
                        any instructions provided by the producer of 
                        such tests;
                    ``(B) the child is assessed in all areas of 
                suspected disability; and
                    ``(C) assessment tools and strategies that provide 
                relevant information that directly assists persons in 
                determining the educational needs of the child are 
                provided.
            ``(4) Determination of eligibility and educational need.--
        Upon completion of the administration of assessments and other 
        evaluation measures--
                    ``(A) the determination of whether the child is a 
                child with a disability as defined in section 602(3) 
                and the educational needs of the child shall be made by 
                a team of qualified professionals and the parent of the 
                child in accordance with paragraph (5); and
                    ``(B) a copy of the evaluation report and the 
                documentation of determination of eligibility 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, 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 
                observations; and
                    ``(B) on the basis of that review, and input from 
                the child's parents, identify what additional data, if 
                any, are needed to determine--
                            ``(i) whether the child is a child with a 
                        disability as defined in section 602(3), and 
                        the educational needs of the child, or, in case 
                        of a reevaluation of a child, whether the child 
                        continues to have such a disability and such 
                        educational needs;
                            ``(ii) the present levels of academic 
                        achievement and related developmental needs of 
                        the child;
                            ``(iii) whether the child needs special 
                        education and related services, or in the case 
                        of a reevaluation of a child, whether the child 
                        continues to need special education and related 
                        services; and
                            ``(iv) whether any additions or 
                        modifications to the special education and 
                        related services are needed to enable the child 
                        to meet the measurable annual goals set out in 
                        the individualized education program of the 
                        child and to participate, as appropriate, in 
                        the general education curriculum.
            ``(2) Source of data.--The local educational agency shall 
        administer such assessments and other evaluation measures as 
        may be needed to produce the data identified by the IEP Team 
        under paragraph (1)(B).
            ``(3) Parental consent.--Each local educational agency 
        shall obtain informed parental consent, in accordance with 
        subsection (a)(1)(D), prior to conducting any reevaluation of a 
        child with a disability, except that such informed parental 
        consent need not be obtained if the local educational agency 
        can demonstrate that it had taken reasonable measures to obtain 
        such consent and the child's parent has failed to respond.
            ``(4) Requirements if additional data are not needed.--If 
        the IEP Team and other qualified professionals, as appropriate, 
        determine that no additional data are needed to determine 
        whether the child continues to be a child with a disability and 
        to determine the child's educational needs, the local 
        educational agency--
                    ``(A) shall notify the child's parents of--
                            ``(i) that determination and the reasons 
                        for 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 prior to graduation, and before 
        determining that the child is no longer a child with a 
        disability, only in instances where the IEP Team is not in 
        agreement regarding the change in eligibility.
    ``(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, 
                                including--
                                            ``(aa) how the child's 
                                        disability affects the child's 
                                        involvement and progress in the 
                                        general education curriculum;
                                            ``(bb) for preschool 
                                        children, as appropriate, how 
                                        the disability affects the 
                                        child's participation in 
                                        appropriate activities; and
                                            ``(cc) until the beginning 
                                        of the 2005-2006 school year, a 
                                        description of benchmarks or 
                                        short-term objectives, except 
                                        in the case of children with 
                                        disabilities who take alternate 
                                        assessments aligned to 
                                        alternate achievement 
                                        standards, a description of 
                                        benchmarks or short-term 
                                        objectives shall continue to be 
                                        included;
                                    ``(II) a statement of measurable 
                                annual goals designed to--
                                            ``(aa) meet the child's 
                                        needs that result from the 
                                        child's disability to enable 
                                        the child to be involved in and 
                                        make progress in the general 
                                        education curriculum; and
                                            ``(bb) meet 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 the extent 
                                practicable, to be provided to the 
                                child, or on behalf of the child, and a 
                                statement of the program modifications 
                                or supports for school personnel that 
                                will be provided for the child--
                                            ``(aa) to advance 
                                        appropriately toward attaining 
                                        the annual goals;
                                            ``(bb) to be involved in 
                                        and make progress in the 
                                        general education curriculum in 
                                        accordance with subclause (I) 
                                        and to participate in 
                                        extracurricular and other 
                                        nonacademic activities; and
                                            ``(cc) to be educated and 
                                        participate with other children 
                                        with disabilities and 
                                        nondisabled children in the 
                                        activities described in this 
                                        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 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 1 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(l); 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 required in this subsection; 
                                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, 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 1 special education 
                        teacher, or where appropriate, at least 1 
                        special education provider of such child;
                            ``(iv) a representative of the local 
                        educational agency who--
                                    ``(I) is qualified to provide, or 
                                supervise the provision of, specially 
                                designed instruction to meet the unique 
                                needs of children with disabilities;
                                    ``(II) is knowledgeable about the 
                                general 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), the IEP Team shall consider 
                the individualized family service plan that contains 
                the material described in section 636, and that is 
                developed in accordance with this section, and the 
                individualized family service plan may serve as the IEP 
                of the child if using that plan as the IEP is--
                            ``(i) consistent with State policy; and
                            ``(ii) agreed to by the agency and the 
                        child's parents.
            ``(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 needs 
                        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 shall 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 
                this section, 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 3 
                years.
            ``(6) Failure to meet transition objectives.--If a 
        participating agency, other than the local educational agency, 
        fails to provide the transition services described in the IEP 
        in accordance with paragraph (1)(A)(i)(VII), 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.''.
    (b) Findings; Sense of Congress.--
            (1) Findings.--Congress finds the following:
                    (A) Certain of the categories of disability that 
                allow students to qualify for benefits under the 
                Individuals with Disabilities Education Act have not 
                been scientifically established and, as a result, some 
                children who do not have actual learning disabilities 
                are classified as having disabilities under that Act.
                    (B) Nearly one in eight students is now labeled as 
                disabled.
                    (C) Over one-half of those students are classified 
                as having learning and behavioral challenges.
                    (D) Current definitions of disabilities in the Code 
                of Federal Regulations, particularly the definition of 
                ``emotional disturbance'', are vague and ambiguous.
                    (E) The absence of reliable methods for 
                distinguishing children with a special learning 
                disability from children who have lower than expected 
                achievement leads to over-identification and 
                misidentification of non-disabled students as students 
                with disabilities.
                    (F) The lack of consistently applied diagnostic 
                criteria for specific learning disabilities makes it 
                possible to diagnose almost any low or underachieving 
                child as a student with a disability.
                    (G) The President's Commission on Excellence in 
                Special Education (PCESE) found in its July 1, 2002, 
                report, ``A New Era: Revitalizing Special Education for 
                Children and their Families'', that many of the current 
                methods of identifying children with disabilities lack 
                validity and, as a result, thousands of children are 
                misidentified every year, while many others are not 
                identified early enough or at all.
                    (H) The President's Commission also found that 
                emotional and behavioral difficulties could be 
                prevented through classroom-based approaches involving 
                positive discipline and classroom management.
                    (I) According to testimony from a March 13, 2003, 
                hearing before the Subcommittee on Education Reform of 
                the Committee on Education and the Workforce of the 
                House of Representatives, students are frequently 
                referred to special education because they are not 
                succeeding in the general education setting, and not 
                because they are actually disabled.
                    (J) Students with controllable behavioral problems 
                are often classified as having learning disabilities 
                and therefore are not held responsible for their own 
                behavior.
                    (K) According to testimony by Secretary of 
                Education Rod Paige on October 4, 2001, before the 
                Committee on Education and the Workforce of the House 
                of Representatives, our educational system fails to 
                teach many children fundamental skills like reading, 
                then inappropriately identifies some of them as having 
                disabilities, thus harming the educational future of 
                those children who are misidentified and reducing the 
                resources available to serve children with 
                disabilities.
            (2) Sense of congress.--It is the sense of Congress that--
                    (A) students who have not been diagnosed by a 
                physician or other person certified by a State health 
                board as having a disability (as defined under the 
                Individuals with Disabilities Education Act) should not 
                be classified as children with disabilities for 
                purposes of receiving services under that Act; and
                    (B) students with behavioral problems who have not 
                been diagnosed by a physician or other person certified 
                by a State health board as having a disability should 
                be subject to the regular school disciplinary code.

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 as appropriate 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 (or, in the case of 
                        a homeless child or youth (within the meaning 
                        of section 725(2) of the McKinney-Vento 
                        Homeless Assistance Act (42 U.S.C. 11434a(2)), 
                        available contact information for the child), 
                        and the name of the school the child is 
                        attending;
                            ``(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.--The notice required by 
subsection (b)(3) shall include--
            ``(1) a description of the action proposed or refused by 
        the agency;
            ``(2) an explanation of why the agency proposes or refuses 
        to take the action and a description of each evaluation 
        procedure, test, record, or report the agency used as a basis 
        for the proposed or refused action;
            ``(3) 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
            ``(4) sources for parents to contact to obtain assistance 
        in understanding the provisions of this part.''.
    (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) civil actions; and
                    ``(L) 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 training and 
                                information center in the State 
                                established under section 672; 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 
                (j).
                    ``(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 (j) 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 
                        there is no such applicable State law, in a 
                        manner 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 (j) 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--
                                    ``(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 in 
                        accordance with subparagraph (A).
                            ``(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 or the local 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.--No party shall be 
                allowed to raise issues at the due process hearing that 
                were not raised in the complaint, discussed during the 
                meeting conducted pursuant to paragraph (1)(B), or 
                properly disclosed pursuant to paragraph (2), unless 
                both parties agree otherwise.''.
    (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(d)) (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--
            (1) by redesignating subsection (i) as subsection (h); and
            (2) in subsection (h) (as redesignated)--
                    (A) in paragraph (1)--
                            (i) by striking ``In general.--'' and all 
                        that follows through ``A decision made in a 
                        hearing'' and inserting ``In general.--A 
                        decision made in a hearing'';
                            (ii) by striking ``(k)'' and inserting 
                        ``(j)'';
                            (iii) by striking ``subsection (g) and''; 
                        and
                            (iv) by striking subparagraph (B);
                    (B) in paragraph (2)(A), by striking ``subsection 
                (f) or (k) who does not have the right to an appeal 
                under subsection (g)'' and inserting ``subsection (f) 
                or (j)''; and
                    (C) in paragraph (3), by amending subparagraph (C) 
                to read as follows:
                    ``(C) Determination of amount of attorneys' fees.--
                            ``(i) In general.--Fees awarded under this 
                        paragraph shall be based on rates determined by 
                        the Governor of the State (or other appropriate 
                        State official) in which the action or 
                        proceeding arose for the kind and quality of 
                        services furnished. No bonus or multiplier may 
                        be used in calculating the fees awarded under 
                        this subsection.
                            ``(ii) Notice.--The Governor of the State 
                        (or other appropriate State official) shall 
                        make available to the public on an annual basis 
                        the rates described in clause (i).''.
    (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, and which may 
                include consideration of unique circumstances on a 
                case-by-case basis), 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 or punishment under this section, the parent 
                may request a hearing.
                    ``(B) Authority of hearing officer.--If a parent of 
                a child with a disability disagrees with a decision 
                regarding placement of the child or punishment of the 
                child under this section, including duration of the 
                punishment, the hearing officer may determine whether 
                the decision regarding such action was appropriate.
            ``(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) Transfer of Parental Rights at Age of Majority.--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. MONITORING, ENFORCEMENT, WITHHOLDING, AND JUDICIAL REVIEW.

    Section 616 of the Individuals with Disabilities Education Act (20 
U.S.C. 1416) is amended--
            (1) by amending the heading to read as follows:

``SEC. 616. MONITORING, ENFORCEMENT, WITHHOLDING, AND JUDICIAL 
              REVIEW.'';

            (2) by redesignating subsections (a) through (c) as 
        subsections (e) through (g), respectively; and
            (3) by inserting before subsection (e) (as redesignated) 
        the following:
    ``(a) Federal Monitoring.--
            ``(1) In general.--The Secretary shall monitor 
        implementation of this Act.
            ``(2) Focused monitoring.--The primary focus of Federal 
        monitoring activities shall be to improve educational results 
        for all children with disabilities, while ensuring compliance 
        with program requirements, with a particular emphasis on those 
        requirements that are most closely related to improving 
        educational results for children with disabilities.
    ``(b) Indicators.--
            ``(1) Required indicators.--The Secretary shall examine 
        relevant information and data related to States' progress on 
        improving educational results for children with disabilities by 
        reviewing--
                    ``(A) achievement results of children with 
                disabilities on State or district assessments, 
                including children with disabilities taking State or 
                district assessments with appropriate accommodations;
                    ``(B) achievement results of children with 
                disabilities on State or district alternate 
                assessments;
                    ``(C) graduation rates of children with 
                disabilities and graduation rates of children with 
                disabilities as compared to graduation rates of 
                nondisabled children; and
                    ``(D) dropout rates for children with disabilities 
                and dropout rates of children with disabilities as 
                compared to dropout rates of nondisabled children.
            ``(2) Permissive indicators.--The Secretary also may 
        establish other priorities for review of relevant information 
        and data, including data provided by States under section 618, 
        and also including the following:
                    ``(A) Priorities for this part.--The Secretary may 
                give priority to monitoring on the following areas 
                under this part:
                            ``(i) Provision of educational services in 
                        the least restrictive environment, including--
                                    ``(I) education of children with 
                                disabilities with nondisabled peers to 
                                the maximum extent appropriate;
                                    ``(II) provision of appropriate 
                                special education and related services;
                                    ``(III) access to the general 
                                curriculum with appropriate 
                                accommodations;
                                    ``(IV) provision of appropriate 
                                services to students whose behavior 
                                impedes learning; and
                                    ``(V) participation and performance 
                                of children with disabilities on State 
                                and local assessments, including 
                                alternate assessments.
                            ``(ii) Secondary transition, including the 
                        extent to which youth exiting special education 
                        are prepared for post-secondary education, 
                        employment, and adult life, and are 
                        participants in appropriate transition planning 
                        while in school.
                            ``(iii) State exercise of general 
                        supervisory authority, including effective 
                        monitoring and use of complaint resolution, 
                        mediation, and voluntary binding arbitration.
                    ``(B) Priorities for part c.--The Secretary may 
                give priority to monitoring on the following areas 
                under part C:
                            ``(i) Child find and public awareness to 
                        support the identification, evaluation and 
                        assessment of all eligible infants and 
                        toddlers, including the provision of culturally 
                        relevant materials to inform and promote 
                        referral.
                            ``(ii) Provision of early intervention 
                        services in natural environments, evaluation 
                        and assessment to identify child needs and 
                        family needs related to enhancing the 
                        development of the child, and provision of 
                        appropriate early intervention services in 
                        natural environments to meet the needs of 
                        individual children.
                            ``(iii) Effective early childhood 
                        transition to services under this part.
                            ``(iv) State exercise of general 
                        supervisory authority, including--
                                    ``(I) effective monitoring and use 
                                of other mechanisms such as complaint 
                                resolution;
                                    ``(II) implementation of mediation 
                                and voluntary binding arbitration; and
                                    ``(III) coordination of parent and 
                                child protections.
            ``(3) Data collection and analysis.--The Secretary shall 
        review the data collection and analysis capacity of States to 
        ensure that data and information is collected, analyzed, and 
        accurately reported to the Secretary. The Secretary may provide 
        technical assistance to improve the capacity of States to meet 
        data requirements.
    ``(c) Additional Priorities.--
            ``(1) In general.--The Secretary may develop additional 
        priorities for monitoring the effective implementation of this 
        Act.
            ``(2) Public comment.--The Secretary shall provide a public 
        comment period of at least 30 days on any additional priority 
        proposed under this part or part C.
            ``(3) Date of enforcement.--The Secretary may not begin to 
        enforce a new priority until one year from the date of 
        publication of the priority in the Federal Register as a final 
        rule.
    ``(d) Compliance.--
            ``(1) In general.--The Secretary shall review State data to 
        determine whether the State is in compliance with the 
        provisions of this Act.
            ``(2) Lack of progress.--If after examining data, as 
        provided in section (b) or (c), the Secretary determines that a 
        State is not making satisfactory progress in improving 
        educational results for children with disabilities, the 
        Secretary shall take one or more of the following actions:
                    ``(A) Advise the State of available sources of 
                technical assistance that may help the State address 
                the lack of progress, which may include assistance from 
                the Office of Special Education Programs, other offices 
                of the Department of Education, other Federal agencies, 
                technical assistance providers approved by the 
                Secretary, and other federally funded nonprofit 
                agencies. Such technical assistance may include--
                            ``(i) the provision of advice by experts to 
                        address the areas of noncompliance, including 
                        explicit plans for ensuring compliance within a 
                        specified period of time;
                            ``(ii) assistance in identifying and 
                        implementing professional development, 
                        instructional strategies, and methods of 
                        instruction that are based on scientifically 
                        based research;
                            ``(iii) designating and using distinguished 
                        superintendents, principals, special education 
                        administrators, regular education teachers, and 
                        special education teachers to provide advice, 
                        technical assistance, and support; and
                            ``(iv) devising additional approaches to 
                        providing technical assistance, such as 
                        collaborating with institutions of higher 
                        education, educational service agencies, 
                        national centers of technical assistance 
                        supported under part D, and private providers 
                        of scientifically based technical assistance.
                    ``(B) Direct the use of State level funds for 
                technical assistance on the area or areas of 
                unsatisfactory performance.
                    ``(C) Each year withhold at least 20 but no more 
                than 50 percent of the State's funds under section 
                611(e), after providing the State the opportunity to 
                show cause why the withholding should not occur, until 
                the Secretary determines that sufficient progress has 
                been made in improving educational results for children 
                with disabilities.
            ``(3) Substantial non-compliance.--
                    ``(A) Initial determination.--When the Secretary 
                determines that a State is not in substantial 
                compliance with any provision of this part, the 
                Secretary shall take one or more of the following 
                actions:
                            ``(i) Request that the State prepare a 
                        corrective action plan or improvement plan if 
                        the Secretary determines that the State should 
                        be able to correct the problem within one year.
                            ``(ii) Identify the State as a high-risk 
                        grantee and impose special conditions on the 
                        State's grant.
                            ``(iii) Require the State to enter into a 
                        compliance agreement under section 457 of the 
                        General Education Provisions Act, if the 
                        Secretary has reason to believe that the State 
                        cannot correct the problem within one year.
                            ``(iv) Recovery of funds under section 452 
                        of the General Education Provisions Act.
                            ``(v)(I) Withholding of payments under 
                        subsection (e).
                            ``(II) Pending the outcome of any hearing 
                        to withhold payments under subsection (e), the 
                        Secretary may suspend payments to a recipient, 
                        suspend the authority of the recipient to 
                        obligate Federal funds, or both, after such 
                        recipient has been given reasonable notice and 
                        an opportunity to show cause why future 
                        payments or authority to obligate Federal funds 
                        should not be suspended.
                    ``(B) Continued non-compliance.--
                            ``(i) Secretarial action.--If the Secretary 
                        has imposed special conditions on a grant under 
                        subparagraph (A)(ii) for substantially the same 
                        compliance problems for three consecutive 
                        years, and at the end of the third year the 
                        State has not demonstrated that the violation 
                        has been corrected to the satisfaction of the 
                        Secretary, the Secretary shall take such 
                        additional enforcement actions as the Secretary 
                        determines to be appropriate from among those 
                        actions specified in clauses (iii) through (v) 
                        of subparagraph (A).
                            ``(ii) Report to Congress.--The Secretary 
                        shall report to Congress within 30 days of 
                        taking enforcement action pursuant to this 
                        paragraph on the specific action taken and the 
                        reasons why enforcement action was taken.''.

SEC. 207. 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) Prohibition Against Federal Mandates, Direction, or 
Control.--Nothing in this Act may be construed to authorize an officer 
or employee of the Federal Government to mandate, direct, or control a 
State, local educational agency, or school's specific instructional 
content, academic achievement standards and assessments, curriculum, or 
program of instruction.
    ``(c) Confidentiality.--The Secretary shall take appropriate 
action, in accordance with section 444 of the General Education 
Provisions Act (20 U.S.C. 1232g), to ensure 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.
    ``(d) 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 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. 208. 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 and local educational agency 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 and percentage of children with 
                disabilities, by race, ethnicity, and disability 
                category, who are receiving a free appropriate public 
                education;
                    ``(ii) the number and percentage of children with 
                disabilities, by race and ethnicity, who are receiving 
                early intervention services;
                    ``(iii) the number and percentage of children with 
                disabilities, by race, ethnicity, and disability 
                category, who are participating in regular education;
                    ``(iv) the number and percentage 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 and percentage of children with 
                disabilities, by race and ethnicity, and disability 
                category who begin secondary school and graduate with a 
                regular high school diploma, through the age of 21;
                    ``(vi) the number and percentage 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;
                    ``(vii) the number and percentage 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;
                    ``(viii)(I) the number and percentage 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;
                    ``(III) the number of children with disabilities, 
                by race, ethnicity, and disability category, who are 
                subject to long-term suspensions or expulsions; and
                    ``(IV) the incidence, duration, and type of 
                disciplinary actions, by race and ethnicity, including 
                suspension and expulsions;
                    ``(ix) the number of complaints resolved through 
                voluntary binding arbitration; and
                    ``(x) the number of mediations held and the number 
                of settlement agreements reached through mediation;
            ``(B) on the number and percentage of infants and toddlers, 
        by race and ethnicity, who are at risk of having substantial 
        developmental delays (as defined in section 632), and who are 
        receiving early intervention services under part C; and
            ``(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 and ethnicity 
        is occurring in the State and the local educational agencies of 
        the State with respect to--
                    ``(A) the identification of children as children 
                with disabilities, including the identification of 
                children as children with disabilities in accordance 
                with a particular impairment described in section 
                602(3);
                    ``(B) the placement in particular educational 
                settings of such children; and
                    ``(C) the incidence, duration, and type of 
                disciplinary actions, including suspensions and 
                expulsions.
            ``(2) Review and revision of policies, practices, and 
        procedures.--In the case of a determination of significant 
        disproportionality with respect to the identification of 
        children as children with disabilities, or the placement in 
        particular educational settings of such children, in accordance 
        with paragraph (1), the State or the Secretary of the Interior, 
        as the case may be--
                    ``(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;
                    ``(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 prereferral support services 
                to serve children in the local educational agency, 
                particularly children in those groups that were 
                significantly overidentified under paragraph (1); and
                    ``(C) shall require the local educational agency to 
                publicly report on the revision of policies, practices, 
                and procedures described under subparagraph (A).''.

SEC. 209. 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 $500,000,000 for fiscal year 2004 and such sums as may be 
necessary for each subsequent fiscal year.''.

           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, family therapy, 
                        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) vision specialists, including 
                        ophthalmologists and optometrists;
                            ``(xi) orientation and mobility 
                        specialists; and
                            ``(xii) pediatricians and other physicians;
                    ``(G) to the maximum extent appropriate, are 
                provided in natural environments, including the home, 
                and community settings in which children without 
                disabilities participate; and
                    ``(H) are provided in conformity with an 
                individualized family service plan adopted in 
                accordance with section 636.
            ``(5) Infant or toddler with a disability.--The term 
        `infant or toddler with a disability'--
                    ``(A) means an individual under 3 years of age who 
                needs early intervention services because the 
                individual--
                            ``(i) is experiencing developmental delays, 
                        as measured by appropriate diagnostic 
                        instruments and procedures in 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;
                    ``(B) may also include, at a State's discretion, 
                at-risk infants and toddlers; and
                    ``(C) may also include, at a State's discretion, a 
                child aged 3 through 5, who previously received 
                services under this part and who is eligible for 
                services under section 619, if--
                            ``(i) services provided to this age group 
                        under this part include an educational 
                        component that promotes school readiness and 
                        incorporates scientifically based pre-literacy, 
                        language, and numeracy skills; and
                            ``(ii) parents are provided a written 
                        notification of their rights and 
                        responsibilities in determining whether their 
                        child will continue to receive services under 
                        this part or participate in preschool programs 
                        assisted under section 619.

``SEC. 633. GENERAL AUTHORITY.

    ``The Secretary shall, in accordance with this part, make grants to 
States (from their allotments under section 643) to assist each State 
to maintain and implement a statewide, comprehensive, coordinated, 
multidisciplinary, interagency system to provide early intervention 
services for infants and toddlers with disabilities and their families.

``SEC. 634. ELIGIBILITY.

    ``In order to be eligible for a grant under section 633, a State 
shall provide assurances to the Secretary that the State--
            ``(1) has adopted a policy that appropriate early 
        intervention services are available to all infants and toddlers 
        with disabilities in the State and their families, including 
        Indian infants and toddlers with disabilities and their 
        families residing on a reservation geographically located in 
        the State; 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 to be given to parents, especially to inform 
        parents with premature infants, or infants with other physical 
        risk factors associated with learning or developmental 
        complications, on the availability of early intervention 
        services under this part and of services under section 619 of 
        this Act, and procedures for assisting such sources in 
        disseminating 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 or in a setting that 
                is most appropriate, as determined by the parent and 
                the individualized family service plan team.
    ``(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.
    ``(c) Treatment of Children Aged 3 through 5.--
            ``(1) In general.--If a State includes children described 
        in section 632(5)(C) in the system described in section 633, 
        the State shall be considered to have fulfilled any obligation 
        under part B with respect to the provision of a free 
        appropriate public education to those children during the 
        period in which they are receiving services under this part.
            ``(2) Construction.--Nothing in paragraph (1) shall be 
        construed to alter or diminish the rights and protections 
        afforded under this part to children described in such 
        paragraph.

``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 major goals expected to be 
        achieved for the infant or toddler and the family, including 
        pre-literacy and language skills, as developmentally 
        appropriate for the child, and the criteria, procedures, and 
        timelines used to determine the degree to which progress toward 
        achieving the 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, to the extent practicable, 
        necessary to meet the unique needs of the infant or toddler and 
        the family, including the frequency, intensity, and method of 
        delivering services;
            ``(5) a statement of the natural environments in which 
        early intervention services will appropriately be provided, 
        including a justification of the extent, if any, to which the 
        services will not be provided in a natural environment;
            ``(6) the projected dates for initiation of services and 
        the anticipated length, duration, and frequency of the 
        services;
            ``(7) the identification of the service coordinator from 
        the profession most immediately relevant to the infant's or 
        toddler's or family's needs (or who is otherwise qualified to 
        carry out all applicable responsibilities under this part) who 
        will be responsible for the implementation of the plan and 
        coordination with other agencies and persons, including 
        transition services; and
            ``(8) the steps to be taken to support the transition of 
        the toddler with a disability to preschool or other appropriate 
        services.
    ``(e) Parental Consent.--The contents of the individualized family 
service plan shall be fully explained to the parents and informed 
written consent from the parents shall be obtained prior to the 
provision of early intervention services described in such plan. If the 
parents do not provide consent with respect to a particular early 
intervention service, then only the early intervention services to 
which consent is obtained shall be provided.

``SEC. 637. STATE APPLICATION AND ASSURANCES.

    ``(a) Application.--A State desiring to receive a grant under 
section 633 shall submit an application to the Secretary at such time 
and in such manner as the Secretary may reasonably require. The 
application shall contain--
            ``(1) a designation of the lead agency in the State that 
        will be responsible for the administration of funds provided 
        under section 633;
            ``(2) a 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 statewide 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 
        consistent with section 635(a)(5) or who is born and identified 
        with fetal alcohol effects, fetal alcohol syndrome, neonatal 
        intoxication, or neonatal physical or neurological harm 
        resulting from prenatal drug exposure;
            ``(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;
            ``(10) a description of State efforts to promote 
        collaboration between Early Head Start programs, child care, 
        and services under part C of this Act; and
            ``(11) such other information and assurances as the 
        Secretary may reasonably require.
    ``(b) Assurances.--The application described in subsection (a)--
            ``(1) shall provide satisfactory assurance that Federal 
        funds made available under section 643 to the State will be 
        expended in accordance with this part;
            ``(2) shall contain an assurance that the State will comply 
        with the requirements of section 640;
            ``(3) shall provide satisfactory assurance that the control 
        of funds provided under section 643, and title to property 
        derived from those funds, will be in a public agency for the 
        uses and purposes provided in this part and that a public 
        agency will administer such funds and property;
            ``(4) shall provide for--
                    ``(A) making such reports in such form and 
                containing such information as the Secretary may 
                require to carry out the Secretary's functions under 
                this part; and
                    ``(B) keeping such 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 followup 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.
                    ``(J) Mental health agency.--At least one 
                representative from the State agency responsible for 
                children's mental health.
                    ``(K) Child welfare agency.--At least one 
                representative from the State agency responsible for 
                child protective services.
                    ``(L) Office of the coordinator for the education 
                of homeless children and youth.--At least one 
                representative designated by the Office of the 
                Coordinator.
            ``(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(h)(3)(E). The Secretary of Education may require 
        any additional information from the Secretary of the Interior.
            ``(6) Prohibited uses of funds.--None of the funds under 
        this subsection may be used by the Secretary of the Interior 
        for administrative purposes, including child count, and the 
        provision of technical assistance.
    ``(c) State Allotments.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3) from the funds remaining for each fiscal year after the 
        reservation and payments under subsections (a) 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 greater 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 need significant levels of support to participate 
                and learn in school and the community.
            ``(5) The availability of an adequate number of qualified 
        personnel is critical in order to serve effectively children 
        with disabilities, fill leadership positions in administrative 
        and direct-service capacities, 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 
        research on special education and related services, 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 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 related 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 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, at least one institution of higher education in the 
        State, 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 26.
                    ``(C) Parents of nondisabled children ages birth 
                through 26.
                    ``(D) Individuals with disabilities.
                    ``(E) Organizations representing individuals with 
                disabilities and their parents, such as parent 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, 
                related services personnel, 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.
                    ``(N) The State vocational rehabilitation agency.
                    ``(O) Public agencies with jurisdiction in the 
                areas of health, mental health, social services, and 
                juvenile justice.
                    ``(P) Other providers of professional development 
                that work with students with disabilities.
                    ``(Q) 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, related 
        services personnel, 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(e) and 
        619(d), and other Federal funds will be used to support 
        activities conducted under this subpart;
            ``(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 1111 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; and
                    ``(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--
                    ``(A) on the basis of need; and
                    ``(B) that provide for the establishment of 
                professional development programs regarding methods of 
                early and appropriate identification of children with 
                disabilities.
    ``(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 early 
                        intervention personnel, related services 
                        personnel, and 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;
                                    ``(II) use standards or assessments 
                                for guiding beginning teachers that are 
                                consistent with challenging State 
                                student academic achievement standards 
                                and with the definition of professional 
                                development in section 9101 of the 
                                Elementary and Secondary Education Act 
                                of 1965;
                                    ``(III) promote collaborative and 
                                consultive models of providing special 
                                education ad related services; and
                                    ``(IV) increase understanding as to 
                                the most appropriate placements and 
                                services for all students to reduce 
                                significant racial and ethnic 
                                disproportionality in eligibility, 
                                placement, and disciplinary actions.
                            ``(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, related services 
                                personnel and 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, related services personnel, 
                                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 children 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 
                                Education 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, including an 
                                understanding of the latest 
                                scientifically valid education research 
                                and its applicability, 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) Coordinating with, and expanding, 
                        centers established under section 2113(c)(18) 
                        of the Elementary and Secondary Education Act 
                        of 1965 to benefit special education teachers.
            ``(2) Contracts and subgrants.--Each such State educational 
        agency--
                    ``(A) shall, consistent with its partnership 
                agreement under section 654(b)(1), award contracts or 
                subgrants to local educational agencies, institutions 
                of higher education, and parent 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 (14) and (15) 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 
$44,000,000 for fiscal year 2004 and such sums as may be necessary for 
each of the fiscal years 2005 through 2009.

``Subpart 2--Scientifically Based Research; Technical Assistance; Model 
  Demonstration Projects; Dissemination of Information; and Personnel 
                          Preparation 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 (other than section 663) 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 if the Secretary 
                finds it appropriate given the specific purpose of the 
                competition.
            ``(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 two 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 26, in planning, implementing, and evaluating 
                the project; and
                    ``(B) where appropriate, determine whether the 
                project has any potential for replication and adoption 
                by other entities.
            ``(2) Additional responsibilities.--The Secretary may 
        require a recipient of a grant, contract, or cooperative 
        agreement 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 (other than 
                section 663) 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 
                        26 who are benefiting, or have benefited, from 
                        coordinated research, personnel preparation, 
                        and technical assistance; and
                            ``(viii) individuals with disabilities.
                    ``(C) Term.--No individual shall serve on the 
                standing panel for more than 3 consecutive years.
            ``(2) Peer-review panels for particular competitions.--
                    ``(A) Composition.--The Secretary shall ensure that 
                each subpanel selected from the standing panel that 
                reviews applications under this subpart (other than 
                section 663) 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 26, individuals with disabilities, and 
                        persons from diverse backgrounds.
                    ``(B) Federal employment limitation.--A majority of 
                the individuals on each subpanel that reviews an 
                application under this subpart (other than section 663) 
                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) National Center for Special Education Research.--
            ``(1) Establishment.--
                    ``(A) In general.--There is established, in the 
                Institute of Education Sciences established under 
                section 111 of the Education Sciences Reform Act of 
                2002 (Public Law 107-279; 116 Stat. 1944) (hereinafter 
                in this section referred to as `the Institute'), the 
                National Center for Special Education Research.
                    ``(B) Commissioner.--The National Center for 
                Special Education Research shall be headed by a 
                Commissioner for Special Education Research 
                (hereinafter in this section referred to as `the 
                Commissioner'). The Commissioner shall be appointed by 
                the Director of the Institute (hereinafter in this 
                section referred to as `the Director') in accordance 
                with section 117 of the Education Sciences Reform Act 
                of 2002. The Commissioner shall have substantial 
                knowledge of the Center's activities, including a high 
                level of expertise in the fields of research and 
                research management.
            ``(2) Applicability of education science reform act of 
        2002.--Parts A and E of the Education Sciences Reform Act of 
        2002, as well as the standards for peer review of applications 
        and for the conduct and evaluation of research under sections 
        133(a) and 134 of such Act, shall apply to the Secretary, the 
        Director, and the Commissioner in carrying out this section.
    ``(b) Competitive Grants.--The Director 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 infants, toddlers, and children with disabilities 
in order to improve educational results for such individuals, in 
accordance with the priorities determined under this section.
    ``(c) Authorized Activities.--Activities that may be carried out 
under this section include research activities--
            ``(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 investigate scientifically based related services 
        and interventions that promote participation and progress in 
        the general education curriculum;
            ``(5) to improve the alignment, compatibility, and 
        development of valid and reliable assessment methods for 
        assessing adequate yearly progress, as described under section 
        1111(b)(2)(B) of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 6311(b)(2)(B));
            ``(6) to improve the alignment, compatibility, and 
        development of valid and reliable alternate assessment methods 
        for assessing adequate yearly progress, as described under such 
        section 1111(b)(2)(B);
            ``(7) to examine State content standards and alternate 
        assessments for students with a significant cognitive 
        impairment in terms of academic achievement, individualized 
        instructional need, appropriate educational settings, and 
        improved post-school results;
            ``(8) to examine the educational and developmental needs of 
        children with high-incidence and low-incidence disabilities;
            ``(9) to examine the extent to which overidentification and 
        underidentification of children with disabilities occurs, and 
        the causes thereof;
            ``(10) to improve reading and literacy skills for children 
        with disabilities;
            ``(11) to examine and improve secondary and postsecondary 
        education and transitional needs of children with disabilities;
            ``(12) to examine methods of early intervention for 
        children with disabilities who need significant levels of 
        support;
            ``(13) to examine universal design concepts in the 
        development of assessments, curricula, and instructional 
        methods as a method to improve educational results for children 
        with disabilities;
            ``(14) to improve the professional preparation for 
        personnel who provide educational and related services to 
        children with disabilities, including children with low-
        incidence disabilities, to increase academic achievement of 
        children with disabilities;
            ``(15) to examine the excess costs of educating a child 
        with a disability and expenses associated with high-cost 
        special education and related services; and
            ``(16) to examine the special needs of limited English 
        proficient children with disabilities.
    ``(d) Plan.--The National Center for Special Education Research 
shall propose to the Director a research plan, with the advice of the 
Assistant Secretary for Special Education and Rehabilitative Services, 
that--
            ``(1) is consistent with the priorities and mission of the 
        Institute of Educational Sciences and the mission of the 
        Special Education Research Center and includes the activities 
        described in paragraph (3);
            ``(2) shall be carried out pursuant to subsection (c) and, 
        as appropriate, be updated and modified; and
            ``(3) carries out specific, long-term research activities 
        that are consistent with the priorities and mission of the 
        Institute of Educational Sciences, and are approved by the 
        Director.
    ``(e) Implementation.--The National Center for Special Education 
Research shall implement the plan proposed under subsection (d) to 
carry out scientifically valid research that--
            ``(1) is consistent with the purposes of this Act;
            ``(2) reflects an appropriate balance across all age ranges 
        of children with disabilities;
            ``(3) provides for research that is objective and that uses 
        measurable indicators to assess its progress and results;
            ``(4) includes both basic research and applied research, 
        which shall include research conducted through field-initiated 
        studies and which may include ongoing research initiatives;
            ``(5) ensures that the research conducted under this 
        section is relevant to special education practice and policy;
            ``(6) synthesize and disseminate, through the National 
        Center for Education Evaluation and Regional Assistance as well 
        as activities authorized under this part, the findings and 
        results of education research conducted or supported by the 
        National Center for Special Education Research; and
            ``(7) assist the Director in the preparation of a biennial 
        report, as a described in section 119 of the Education Sciences 
        Reform Act of 2003.
    ``(f) 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 Commissioner at such time, 
in such manner, and containing such information as the Commissioner may 
reasonably 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 including regional resource centers and clearinghouses 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 assessments and alternate 
        assessments for assessing adequate yearly progress, as 
        described under section 1111(b)(2)(B) of the Elementary and 
        Secondary Education Act of 1965;
            ``(3) providing training for both regular education 
        teachers and special education teachers to address the needs of 
        students with different learning styles;
            ``(4) 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; and
            ``(5) 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.
    ``(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) 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;
            ``(2) supporting and promoting the coordination of early 
        intervention and educational services for children with 
        disabilities with services provided by health, rehabilitation, 
        and social service agencies;
            ``(3) promoting improved alignment and compatibility of 
        general and special education reforms concerned with curricular 
        and instructional reform, and evaluation of such reforms;
            ``(4) enabling professionals, parents of children with 
        disabilities, and other persons to learn about, and implement, 
        the findings of scientifically based research, and successful 
        practices developed in model demonstration projects, relating 
        to the provision of services to children with disabilities;
            ``(5) conducting outreach, and disseminating information, 
        relating to successful approaches to overcoming systemic 
        barriers to the effective and efficient delivery of early 
        intervention, educational, and transitional services to 
        personnel who provide services to children with disabilities;
            ``(6) assisting States and local educational agencies with 
        the process of planning systemic changes that will promote 
        improved early intervention, educational, and transitional 
        results for children with disabilities;
            ``(7) promoting change through a multistate or regional 
        framework that benefits States, local educational agencies, and 
        other participants in partnerships that are in the process of 
        achieving systemic-change outcomes;
            ``(8) focusing on the needs and issues that are specific to 
        a population of children with disabilities, such as 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;
            ``(9) demonstrating models of personnel preparation to 
        ensure appropriate placements and services for all students and 
        reduce disproportionality in eligibility, placement, and 
        disciplinary actions for minority and limited English 
        proficient children; and
            ``(10) disseminating information on how to reduce racial 
        and ethnic disproportionalities identified under section 618.
    ``(d) Balance Among Activities and Age Ranges.--In carrying out 
this section, the Secretary shall ensure that there is an appropriate 
balance across all age ranges of children with disabilities.
    ``(e) Linking States to Information Sources.--In carrying out this 
section, the Secretary shall support projects that link States to 
technical assistance resources, including special education and general 
education resources, and shall make research and related products 
available through libraries, electronic networks, parent training 
projects, and other information sources, including through the 
activities of the National Center for Evaluation and Regional 
Assistance established under the Education Sciences Reform Act.
    ``(f) Applications.--
            ``(1) In general.--An eligible entity that wishes to 
        receive a grant, or enter into a contract or cooperative 
        agreement, under this section shall submit an application to 
        the Secretary at such time, in such manner, and containing such 
        information as the Secretary may require.
            ``(2) Standards.--To the maximum extent feasible, each 
        applicant shall demonstrate that the project described in its 
        application is supported by scientifically valid research that 
        has been carried out in accordance with the standards for the 
        conduct and evaluation of all relevant research and development 
        established by the National Center for Education Research.
            ``(3) Priority.--As appropriate, the Secretary shall give 
        priority to applications that propose to serve teachers and 
        school personnel directly in the school environment.

``SEC. 665. PERSONNEL PREPARATION PROGRAMS 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 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 valid research, to be 
        successful in serving those children;
            ``(3) to encourage increased focus on academics and core 
        content areas in special education personnel preparation 
        programs;
            ``(4) to ensure that regular education teachers have the 
        necessary skills and knowledge to provide instruction to 
        students with disabilities in the regular education classroom;
            ``(5) to provide high-quality professional development for 
        principals, superintendents, and other administrators, 
        including training in--
                    ``(A) instructional leadership;
                    ``(B) behavioral supports in the school and 
                classroom;
                    ``(C) paperwork reduction;
                    ``(D) promoting improved collaboration between 
                special education and general education teachers;
                    ``(E) assessment and accountability;
                    ``(F) ensuring effective learning environments; and
                    ``(G) fostering positive relationships with 
                parents; and
            ``(6) to ensure that all special education teachers 
        teaching in core academic subjects are highly qualified.
    ``(b) Personnel Preparation; Authorized Activities.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall support activities, including activities for 
        high-incidence and low-incidence disabilities, consistent with 
        the objectives described in subsection (a).
            ``(2) Authorized activities.--Activities that may be 
        carried out under this subsection include the following:
                    ``(A) 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, including to 
                                train school safety personnel and first 
                                responders who work at qualified 
                                educational facilities; 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) so they can implement 
                                effective teaching strategies and 
                                interventions to ensure appropriate 
                                identification, and to prevent the 
                                misidentification or 
                                overidentification, 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 assist in the provision of special 
                education, related services, and early intervention 
                services, 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, including to train school safety 
                personnel and first responders who work at qualified 
                educational facilities.
    ``(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 who provide services to 
                deaf and hard-of-hearing children by providing direct 
                language and communication access to the general 
                education curriculum through spoken or signed 
                languages, or other modes of communication.
                    ``(F) 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.
                    ``(G) Preparing personnel who provide services to 
                children with low-incidence disabilities with limited 
                English proficiency.
            ``(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, related services faculty, 
                administrators, researchers, supervisors, principals, 
                and other persons whose work affects early 
                intervention, educational, and transitional services 
                for children with disabilities, including children with 
                disabilities with limited English proficiency.
    ``(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 or other requirements in State law 
                or regulation 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.--Notwithstanding any other provision of 
        law, 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) meet 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 or 
                        are limited English proficient, including--
                                    ``(I) data on--
                                            ``(aa) the number of such 
                                        children who are referred for 
                                        special education evaluation;
                                            ``(bb) the number of such 
                                        children who are receiving 
                                        special education and related 
                                        services and their educational 
                                        or other service placement;
                                            ``(cc) the number of such 
                                        children who graduated from 
                                        secondary programs with a 
                                        regular diploma in the standard 
                                        number of years; and
                                            ``(dd) the number of such 
                                        children who drop out of the 
                                        educational system without a 
                                        regular diploma; and
                                    ``(II) the performance of such 
                                children with disabilities 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.
                            ``(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; and
                    ``(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 statewide assessments as 
                        compared to nondisabled children, and the 
                        performance of children with disabilities on 
                        alternate assessments;
                            ``(ii) improving the participation of 
                        children with disabilities in the general 
                        education curriculum;
                            ``(iii) improving the transitions of 
                        children with disabilities at natural 
                        transition points;
                            ``(iv) placing and serving children with 
                        disabilities, including minority children, in 
                        the least restrictive environment appropriate;
                            ``(v) preventing children with 
                        disabilities, especially children with 
                        emotional disturbances and specific learning 
                        disabilities, from dropping out of school;
                            ``(vi) addressing the reading and literacy 
                        needs of children with disabilities;
                            ``(vii) reducing the overidentification of 
                        children, especially minority and limited 
                        English proficient children, as having a 
                        disability;
                            ``(viii) improving the participation of 
                        parents of children with disabilities in the 
                        education of their children; and
                            ``(ix) resolving disagreements between 
                        education personnel and parents through 
                        alternate dispute resolution activities 
                        including mediation 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) describes 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 sections 
663, 664, and 666 $171,861,000 for fiscal year 2004 and such sums as 
may be necessary for each of the fiscal years 2005 through 2009. There 
are authorized to be appropriated to carry out section 665 $90,000,000 
for fiscal year 2004 and such sums as may be necessary for each of the 
fiscal years 2005 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 decisionmaking 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 TRAINING AND INFORMATION CENTERS.

    ``(a) Program Authorized.--The Secretary may make grants to, and 
enter into contracts and cooperative agreements with, parent 
organizations to support parent training and information centers to 
carry out activities under this 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 the Institute of Educational Sciences, and 
        with other national, State, and local organizations and 
        agencies, such as protection and advocacy agencies, that serve 
        parents and families of children with the full range of 
        disabilities; 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; and
                    ``(B) the effectiveness of strategies used to reach 
                and serve parents, including underserved parents of 
                children with disabilities.
    ``(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 26;
                    ``(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.

``SEC. 673. COMMUNITY PARENT RESOURCE CENTERS.

    ``(a) In General.--The Secretary may make grants to, and enter into 
contracts and cooperative agreements with, local parent organizations 
to support parent training and information centers that will help 
ensure that underserved parents of children with disabilities, 
including low-income parents, parents of children with limited English 
proficiency, and parents with disabilities, have the training and 
information they need to enable them to participate effectively in 
helping their children with disabilities--
            ``(1) to meet developmental goals and, to the maximum 
        extent possible, those challenging standards that have been 
        established for all children; and
            ``(2) to be prepared to lead productive independent adult 
        lives, to the maximum extent possible.
    ``(b) Required Activities.--Each parent training and information 
center assisted under this section shall--
            ``(1) provide training and information that meets the 
        training and information needs of parents of children with 
        disabilities proposed to be served by the grant, contract, or 
        cooperative agreement;
            ``(2) carry out the activities required of parent training 
        and information centers under paragraphs (2) through (7) of 
        section 672(b);
            ``(3) establish cooperative partnerships with the parent 
        training and information centers funded under section 672; and
            ``(4) be designed to meet the specific needs of families 
        who experience significant isolation from available sources of 
        information and support.
    ``(c) Definition.--As used is this section, the term `local parent 
organization' means a parent organization, as defined in section 
672(g), that either--
            ``(1) has a board of directors the majority of whom are 
        from the community to be served; or
            ``(2) has--
                    ``(A) as a part of its mission, serving the 
                interests of individuals with disabilities from such 
                community; and
                    ``(B) a special governing committee to administer 
                the grant, contract, or cooperative agreement, a 
                majority of the members of which are individuals from 
                such community.

``SEC. 674. TECHNICAL ASSISTANCE FOR PARENT 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 training 
and information programs carried out by parent training and information 
centers receiving assistance under sections 672 and 673.
    ``(b) Authorized Activities.--The Secretary may provide technical 
assistance to a parent training and information center under this 
section in areas such as--
            ``(1) effective coordination of parent training efforts;
            ``(2) dissemination of 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. 675. 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.
                    ``(D) Supporting the implementation of research 
                programs.
                    ``(E) Communicating information on available 
                technology and the uses of such technology to assist 
                children with 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 that would be appropriate for use in the classroom 
        setting, or news (until the end of fiscal year 2006), when such 
        services are not provided by the producer or distributor of 
        such information, including programs and materials associated 
        with new and emerging technologies such as CDs, DVDs, video 
        streaming, and other forms of multimedia;
            ``(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, secondary, postsecondary, and 
        graduate schools.
    ``(d) 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. For purposes of subsection 
(c)(4), such entity shall--
            ``(1) be a national, nonprofit entity with a track record 
        of meeting the needs of students with print disabilities 
        through services described in paragraph (4);
            ``(2) have the capacity to produce, maintain, and 
        distribute in a timely fashion, up-to-date textbooks in digital 
        audio formats to qualified students; and
            ``(3) have a demonstrated ability to significantly leverage 
        Federal funds through other public and private contributions, 
        as well as through the expansive use of volunteers.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out section 674 $32,710,000 for fiscal year 2004 
and such sums as may be necessary for each of the fiscal years 2005 
through 2009. There are authorized to be appropriated to carry out 
sections 672 and 673 $26,000,000 for fiscal year 2004 and such sums as 
may be necessary for each of the fiscal years 2005 through 2009.''.

                   TITLE V--MISCELLANEOUS PROVISIONS

SEC. 501. SENSE OF CONGRESS RELATING TO SAFE AND DRUG-FREE SCHOOLS.

    (a) Findings.--Congress finds the following:
            (1) Providing children with disabilities with a safe, 
        productive, and drug-free learning environment is a laudable 
        goal for our Nation's schools.
            (2) Schools are a refuge for students, not a place where 
        drugs and violence are to be tolerated.
            (3) Every child with a disability in the Nation deserves 
        access to a quality education, including a safe and drug-free 
        learning environment.
            (4) Local educational agencies, school boards, schools, 
        teachers, administrators, and students all have a 
        responsibility to keep school facilities, including lockers, 
        drug-free.
            (5) Random searches of student lockers to seize any illegal 
        drugs or drug paraphernalia has been known to work as an 
        effective method to address the problem of such drugs and 
        paraphernalia. The time of day in which lockers are to be 
        searched should be left to the discretion of the local 
        educational agency.
    (b) Sense of Congress.--It is the sense of the Congress that safe 
and drug-free schools are essential for the learning and development of 
children with disabilities.

SEC. 502. STUDY AND REPORT ON STATE COSTS UNDER THE INDIVIDUALS WITH 
              DISABILITIES EDUCATION ACT.

    (a) Study.--The Secretary of Education shall conduct a study on the 
amount of cost to States to comply with the requirements of the 
Individuals with Disabilities Education Act.
    (b) Report.--Not later than 2 years after the date of the enactment 
of this Act, the Secretary shall prepare and submit to Congress a 
report that contains the results of the study conducted under 
subsection (a).

            Passed the House of Representatives April 30, 2003.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.