[Congressional Record Volume 142, Number 84 (Monday, June 10, 1996)]
[House]
[Pages H6051-H6084]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      IDEA IMPROVEMENT ACT OF 1996

  Mr. GOODLING. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 3268) to amend the Individuals with Disabilities Education 
Act, to reauthorize and make improvements to that Act, and for other 
purposes, as amended.
  The Clerk read as follows:

                               H.R. 3268

       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 ``IDEA Improvement Act of 
     1996''.
 TITLE I--AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT

     SEC. 101. AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES 
                   EDUCATION ACT.

       Parts A through D of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1400 et seq.) are amended to read as 
     follows:

                      ``PART A--GENERAL PROVISIONS

     ``SEC. 601. SHORT TITLE; TABLE OF CONTENTS; FINDINGS; 
                   PURPOSES.

       ``(a) Short Title.--This title may be cited as the 
     `Individuals with Disabilities Education Act'.
       ``(b) Table of Contents.--The table of contents for this 
     title is as follows:

                      ``Part A--General Provisions

``Sec. 601. Short title; table of contents; findings; purposes.
``Sec. 602. Definitions.
``Sec. 603. Office of Special Education Programs.
``Sec. 604. Abrogation of State sovereign immunity.
``Sec. 605. Requirements for prescribing regulations.
``Sec. 606. Employment of individuals with disabilities.

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

``Sec. 611. Authorization; allotment; use of funds; authorization of 
              appropriations.
``Sec. 612. State requirements.
``Sec. 613. Local educational agency requirements.
``Sec. 614. Evaluations, reevaluations, individualized education 
              programs, and educational placements.
``Sec. 615. Procedural safeguards.
``Sec. 616. Withholding and judicial review.
``Sec. 617. Administration.
``Sec. 618. Program information.
``Sec. 619. Preschool grants.

            ``Part C--Infants and Toddlers With Disabilities

``Sec. 631. Findings and policy.
``Sec. 632. Definitions.
``Sec. 633. General authority.
``Sec. 634. Eligibility.
``Sec. 635. Requirements for Statewide system.
``Sec. 636. Individualized family service plan.
``Sec. 637. State application and assurances.
``Sec. 638. Uses of funds.
``Sec. 639. Procedural safeguards.
``Sec. 640. Payor of last resort.
``Sec. 641. State interagency coordinating council.
``Sec. 642. Federal administration.
``Sec. 643. Allocation of funds.
``Sec. 644. Authorization of appropriations.

[[Page H6052]]

  ``Part D--National Activities to Improve Education of Children With 
                              Disabilities

``Sec. 651. Purpose of part.
``Sec. 652. Eligibility for financial assistance.
``Sec. 653. Comprehensive plan.
``Sec. 654. Peer review.
``Sec. 655. Eligible applicants.
``Sec. 656. Applicant and recipient responsibilities.
``Sec. 657. Indirect costs.
``Sec. 658. Program evaluation.


       ``SUBPART 1--NATIONAL RESEARCH AND IMPROVEMENT ACTIVITIES

``Sec. 661. General authority to make awards.
``Sec. 662. Priorities.
``Sec. 663. National assessment.
``Sec. 664. Authorization of appropriations.


                 ``SUBPART 2--PROFESSIONAL DEVELOPMENT

``Sec. 671. Purpose.
``Sec. 672. Finding.
``Sec. 673. National activities.
``Sec. 674. Professional development for personnel serving low-
              incidence populations.
``Sec. 675. Leadership personnel.
``Sec. 676. Service obligation.
``Sec. 677. Outreach.


    ``SUBPART 3--STATE PROGRAM IMPROVEMENT GRANTS FOR CHILDREN WITH 
                              DISABILITIES

``Sec. 681. Purpose.
``Sec. 682. Eligibility and collaborative process.
``Sec. 683. State improvement plans.
``Sec. 684. Use of funds.
``Sec. 685. Minimum State allotments.
``Sec. 686. Authorization of appropriations.


                      ``SUBPART 4--PARENT TRAINING

``Sec. 691. Grants for parent training and information centers.
``Sec. 692. Technical assistance for parent training and information 
              centers.
``Sec. 693. Authorization of appropriations.
       ``(c) Findings.--The 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)--
       ``(A) the special educational needs of children with 
     disabilities were not being fully met;
       ``(B) more than one-half of the children with disabilities 
     in the United States did not receive appropriate educational 
     services that would enable such children to have full 
     equality of opportunity;
       ``(C) 1,000,000 of the children with disabilities in the 
     United States were excluded entirely from the public school 
     system and did not go through the educational process with 
     their peers;
       ``(D) there were many children with disabilities throughout 
     the United States participating in regular school programs 
     whose disabilities prevented such children from having a 
     successful educational experience because their disabilities 
     were undetected; and
       ``(E) because of the lack of adequate services within the 
     public school system, families were often forced to find 
     services outside the public school system, often at great 
     distance from their residence and at their own expense.
       ``(3) Since the enactment and implementation of the 
     Education for All Handicapped Children Act of 1975, this Act 
     has been successful in ensuring children with disabilities 
     and the families of such children access to a free 
     appropriate public education and in improving educational 
     results for children with disabilities.
       ``(4) However, the implementation of this Act has been 
     impeded by low expectations, and an insufficient focus on 
     applying replicable research on proven methods of teaching 
     and learning for children with disabilities.
       ``(5) 20 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 in the general curriculum to the 
     maximum extent possible;
       ``(B) ensuring that families of such children have 
     meaningful opportunities to participate in the education of 
     their children at school and at home;
       ``(C) coordinating this Act with other local, educational 
     service agency, State, and Federal school improvement efforts 
     in order to ensure that such children benefit from such 
     efforts and that special education can become a service for 
     such children rather than a place where they are sent;
       ``(D) providing appropriate special education and related 
     services and aids and supports in the regular classroom to 
     such children, whenever appropriate;
       ``(E) supporting high-quality, intensive professional 
     development for all personnel who work with such children in 
     order to ensure that they have the skills and knowledge 
     necessary to enable them--
       ``(i) to meet developmental goals and, to the maximum 
     extent possible, those challenging expectations that have 
     been established for all children; and
       ``(ii) to be prepared to lead productive, independent, 
     adult lives, to the maximum extent possible;
       ``(F) providing incentives for whole-school approaches and 
     early intervention to reduce the need to label children as 
     disabled in order to address their learning needs; and
       ``(G) focusing resources on teaching and learning while 
     reducing paperwork and requirements that do not assist in 
     improving educational results.
       ``(6) While States, local educational agencies, and 
     educational service agencies are responsible for providing an 
     education for all children with disabilities, it is in the 
     national interest that the Federal Government have a role in 
     assisting State and local efforts to educate children with 
     disabilities in order to improve results for such children 
     and to ensure equal protection of the law.
       ``(7)(A) The Federal Government must be responsive to the 
     growing needs of an increasingly more diverse society. A more 
     equitable allocation of resources is essential for the 
     Federal Government to meet its responsibility to provide an 
     equal educational opportunity for all individuals.
       ``(B) America's racial profile is rapidly changing. Between 
     1980 and 1990, the rate of increase in the population for 
     white Americans was 6 percent, while the rate of increase for 
     racial and ethnic minorities was much higher: 53 percent for 
     Hispanics, 13.2 percent for African-Americans, and 107.8 
     percent for Asians.
       ``(C) By the year 2000, this Nation will have 275,000,000 
     people, nearly one of every three of whom will be either 
     African-American, Hispanic, Asian-American, or American 
     Indian.
       ``(D) Taken together as a group, minority children are 
     comprising an ever larger percentage of public school 
     students. Large city school populations are overwhelmingly 
     minority, e.g., for fall 1993, the figure for Miami was 84 
     percent; Chicago, 89 percent; Philadelphia, 78 percent; 
     Baltimore, 84 percent; Houston, 88 percent; and Los Angeles, 
     88 percent.
       ``(E) Recruitment efforts within special education at the 
     level of preservice, continuing education, and practice must 
     focus on bringing larger numbers of minorities into the 
     profession in order to provide appropriate practitioner 
     knowledge, role models, and sufficient manpower to address 
     the clearly changing demography of special education.
       ``(F) The limited English proficient population is the 
     fastest growing in our Nation, and the growth is occurring in 
     many parts of our Nation. In the Nation's 2 largest school 
     districts, limited English students make up almost half of 
     all students initially entering school at the kindergarten 
     level. Studies have documented apparent discrepancies in the 
     levels of referral and placement of limited English 
     proficient children in special education. The Department of 
     Education has found that services provided to limited English 
     proficient students often do not respond primarily to the 
     pupil's academic needs. These trends pose special challenges 
     for special education in the referral, assessment, and 
     services for our Nation's students from non-English language 
     backgrounds.
       ``(8)(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) Poor African-American children are 3.5 times more 
     likely to be identified by their teacher as mentally retarded 
     than their white counterpart.
       ``(D) Although African-Americans represent 12 percent of 
     elementary and secondary enrollments, they constitute 28 
     percent of total enrollments in special education.
       ``(E) The drop out rate is 68 percent higher for minorities 
     than for whites.
       ``(F) More than 50 percent of minority students in large 
     cities drop out of school.
       ``(9)(A) The opportunity for full participation in awards 
     for grants and contracts; boards of organizations receiving 
     funds under this Act; and peer review panels; and training of 
     professionals in the area of special education by minority 
     individuals, organizations, and historically Black colleges 
     and universities is essential if we are to obtain greater 
     success in the education of minority children with 
     disabilities.
       ``(B) In 1989, of the 661,000 college and university 
     professors, 4.6 percent were African-American and 3.1 percent 
     were Hispanic. Of the 3,600,000 teachers, prekindergarten 
     through high school, 9.4 percent were African-American and 
     3.9 percent were Hispanic.
       ``(C) Students from minority groups comprise more than 50 
     percent of K-12 public school enrollment in seven States yet 
     minority enrollment in teacher training programs is less than 
     15 percent in all but six States.
       ``(D) As the number of African-American and Hispanic 
     students in special education increases, the number of 
     minority teachers and related service personnel produced in 
     our colleges and universities continues to decrease.

[[Page H6053]]

       ``(E) Ten years ago, 12.5 percent of the United States 
     teaching force in public elementary and secondary schools 
     were members of a minority group. Minorities comprised 21.3 
     percent of the national population at that time and were 
     clearly underrepresented then among employed teachers. Today, 
     the elementary and secondary teaching force is 3 to 5 percent 
     minority, while one-third of the students in public schools 
     are minority children.
       ``(F) As recently as 1991, Historically Black Colleges and 
     Universities enrolled 44 percent of the African-American 
     teacher trainees in the Nation. However, in 1993, 
     Historically Black Colleges and Universities received only 4 
     percent of the discretionary funds for special education and 
     related services personnel training under this Act.
       ``(G) While African-American students constitute 28 percent 
     of total enrollment in special education, only 11.2 percent 
     of individuals enrolled in preservice training programs for 
     special education are African-American.
       ``(H) In 1986-87, of the degrees conferred in education at 
     the B.A., M.A., and Ph.D levels, only 6, 8, and 8 percent, 
     respectively, were awarded to African-American or Hispanic 
     students.
       ``(10) Minorities and underserved persons are socially 
     disadvantaged because of the lack of opportunities in 
     training and educational programs, undergirded by the 
     practices in the private sector that impede their full 
     participation in the mainstream of society.
       ``(d) Purposes.--The purposes of this title are--
       ``(1) to ensure that all children with disabilities have 
     available to them a free appropriate public education that 
     emphasizes special education and related services designed to 
     meet their unique needs and prepare them for employment and 
     independent living;
       ``(2) to ensure that the rights of children with 
     disabilities and parents of such children are protected;
       ``(3) to assist States, localities, education service 
     agencies, and Federal agencies to provide for the education 
     of all children with disabilities; and
       ``(4) to assess, and ensure the effectiveness of, efforts 
     to educate children with disabilities.

     ``SEC. 602. DEFINITIONS.

       ``As used in this title:
       ``(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, 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 to 9.--The term `child with a 
     disability' for a child aged 3 to 9, inclusive, 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 day or residential school which provides elementary 
     education, as determined under State law, policy, or 
     procedure.
       ``(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 which 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; or
       ``(iii) under part A of title VII of such Act; and
       ``(B) any State or local funds expended for programs that 
     would qualify for assistance under any such part.
       ``(8) Free appropriate public education.--The term `free 
     appropriate public education' means special education and 
     related services that--
       ``(A) have been provided at public expense, under public 
     supervision and direction, and without charge;
       ``(B) meet the standards of the State educational agency;
       ``(C) include an appropriate preschool, elementary, or 
     secondary school education in the State involved; and
       ``(D) are provided in conformity with the individualized 
     education program required under section 614(d).
       ``(9) Indian.--The term `Indian' means an individual who is 
     a member of an Indian tribe.
       ``(10) Indian tribe.--The term `Indian tribe' means any 
     Federal or State Indian tribe, band, rancheria, pueblo, 
     colony, or community, including any Alaskan native village or 
     regional village corporation (as defined in or established 
     under the Alaska Native Claims Settlement Act).
       ``(11) 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) and 
     that includes--
       ``(A) a statement of the child's present levels of 
     educational performance, including--
       ``(i) how the child's disability affects the child's 
     involvement and progress in the general curriculum; or
       ``(ii) for preschool children, as appropriate, how the 
     disability affects the child's participation in appropriate 
     activities;
       ``(B) a statement of measurable annual goals, including 
     benchmarks or short-term objectives, related to--
       ``(i) meeting the child's needs that result from the 
     child's disability to enable the child to be involved in and 
     progress in the general curriculum; and
       ``(ii) meeting each of the child's other educational needs 
     that result from the child's disability;
       ``(C) a statement of how the classroom was adapted before 
     the student was referred for identification as a child with a 
     disability;
       ``(D) a justification of the extent, if any, to which the 
     child will not be educated with nondisabled children;
       ``(E) a statement of the special education and related 
     services and supplementary aids and services to be provided 
     to the child, or on behalf of the child, and any program 
     modifications or support for school personnel necessary for 
     the child--
       ``(i) to progress toward the attainment of the annual goals 
     described in subparagraph (B); and
       ``(ii) to be involved and progress in the general 
     curriculum in accordance with subparagraph (A) and to 
     participate in extracurricular and other nonacademic 
     activities;
       ``(F)(i) a statement of any individual modifications in the 
     administration of State or districtwide assessments of 
     student achievement that are needed in order for the child to 
     participate in such assessment; and
       ``(ii) if the individualized education program 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--
       ``(I) why that assessment is not appropriate for the child; 
     and
       ``(II) how the child will be assessed;
       ``(G) the projected date for the beginning of the services 
     and modifications described in subparagraph (E), and the 
     anticipated frequency, location, and duration of those 
     services and modifications;

[[Page H6054]]

       ``(H)(i) 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 or 
     school-to-work program);
       ``(ii) 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
       ``(iii) beginning at least one year before the child 
     reaches the age of majority under State law, a statement that 
     the child has been informed of his or her rights under this 
     title, if any, that will transfer to the child on reaching 
     the age of majority under section 615(m); and
       ``(I) a statement of--
       ``(i) how the child's progress toward the annual goals 
     described in subparagraph (B) will be measured; and
       ``(ii) 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--

       ``(I) their child's progress toward the annual goals 
     described in subparagraph (B); and
       ``(II) the extent to which that progress is sufficient to 
     enable the child to achieve the objectives by the end of the 
     year.

       ``(12) Individualized education program team.--The term 
     `individualized education program team' or `IEP Team' means a 
     group of individuals composed of--
       ``(A) the parents of a child with a disability;
       ``(B) at least one regular education teacher of such child 
     (if the child is, or may be, participating in the regular 
     education environment);
       ``(C) at least one special education teacher, or where 
     appropriate, at least one special education provider of such 
     child;
       ``(D) a representative of the local educational agency 
     who--
       ``(i) is qualified to provide, or supervise the provision 
     of, specially designed instruction to meet the unique needs 
     of children with disabilities;
       ``(ii) is knowledgeable about the general curriculum; and
       ``(iii) is knowledgeable about the availability of 
     resources of the local educational agency;
       ``(E) whenever appropriate, the child with a disability; 
     and
       ``(F) at the discretion of the parent or the agency, other 
     individuals who have special expertise or knowledge regarding 
     the abilities and disability or disabilities of the child, 
     including, as appropriate, related services personnel who are 
     or who will be working with the child.
       ``(13) Institution of higher education.--The term 
     `institution of higher education'--
       ``(A) has the meaning given that term in section 1201(a) of 
     the Higher Education Act of 1965; and
       ``(B) also includes any community college receiving funding 
     from the Secretary of the Interior under the Tribally 
     Controlled Community College Assistance Act of 1978.
       ``(14) Local educational agency.--The term `local 
     educational agency' means--
       ``(A) 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 a combination of school 
     districts or counties as are recognized in a State as an 
     administrative agency for its public elementary or secondary 
     schools;
       ``(B) any other public institution or agency having 
     administrative control and direction of a public elementary 
     or secondary school; or
       ``(C) an educational service agency.
       ``(15) 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, and includes American Sign 
     Language.
       ``(16) 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.
       ``(17) Parent.--The term `parent' includes a legal guardian 
     or surrogate parent.
       ``(18) Parent organization.--The term `parent organization' 
     means a private nonprofit organization (but not including an 
     institution of higher education) that--
       ``(A) has a board of directors--
       ``(i) the majority of whom are parents of children with 
     disabilities;
       ``(ii) that includes--

       ``(I) individuals working in the fields of special 
     education, related services, and early intervention; and
       ``(II) individuals with disabilities; and

       ``(iii) the parent and professional members of which are 
     broadly representative of the population to be served; or
       ``(B)(i) represents the interests of individuals with 
     disabilities and has established a special governing 
     committee which meets the requirements of subparagraph (A); 
     and
       ``(ii) has a memorandum of understanding between the 
     special governing committee and the board of directors of the 
     organization which clearly outlines the relationship between 
     the board and the committee and the decisionmaking 
     responsibilities and authority of each.
       ``(19) Parent training and information center.--The term 
     `parent training and information center' means a center 
     that--
       ``(A) provides training and information that meets the 
     training and information needs of parents of children with 
     disabilities living in the area served by the center; and
       ``(B) assists parents--
       ``(i) to better understand the nature of their children's 
     disabilities and their educational and developmental needs;
       ``(ii) to communicate effectively with personnel 
     responsible for providing special education, early 
     intervention, and related services;
       ``(iii) to participate in decisionmaking processes and the 
     development of the IEP;
       ``(iv) to obtain appropriate information about the range of 
     options, programs, services, and resources available to 
     assist children with disabilities and their families;
       ``(v) to understand the programs under this title for the 
     education of, and the provision of early intervention 
     services to, children with disabilities; and
       ``(vi) to participate in school reform activities.
       ``(20) 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.
       ``(21) Secondary school.--The term `secondary school' means 
     a day or residential school which provides secondary 
     education, as determined under State law, policy, or 
     procedure, except that it does not include any education 
     provided beyond grade 12.
       ``(22) Secretary.--The term `Secretary' means the Secretary 
     of Education.
       ``(23) 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.
       ``(24) 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.
       ``(25) State.--The term `State' means each of the 50 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, and each of the territories.
       ``(26) 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.
       ``(27) 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)(4).
       ``(28) Territory.--The term `territory' means American 
     Samoa, the Commonwealth of the Northern Mariana Islands, 
     Guam, and the Virgin Islands.
       ``(29) Transition services.--The term `transition services' 
     means a coordinated set of activities for a child with a 
     disability that--
       ``(A) are designed within an outcome-oriented process, 
     which promotes movement from school to post-school 
     activities, including post-secondary education, vocational 
     training, integrated employment (including supported 
     employment), continuing and adult education, adult services, 
     independent living, or community participation;
       ``(B) are based upon the individual child's needs, taking 
     into account the child's preferences and interests; and
       ``(C) include 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.

[[Page H6055]]

     ``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 title and 
     other programs and activities concerning the education and 
     training of children with disabilities.
       ``(b) Director.--The Office established under subsection 
     (a) shall be headed by a Director who shall be selected by 
     the Secretary and shall report directly to the Assistant 
     Secretary for Special Education and Rehabilitative Services.
       ``(c) Voluntary and Uncompensated Services.--
     Notwithstanding section 1342 of title 31, United States Code, 
     the Secretary is authorized to accept voluntary and 
     uncompensated services in furtherance of the purposes of this 
     title.

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

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

     ``SEC. 605. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

       ``(a) Public-Comment Period.--The Secretary shall provide a 
     public-comment period of at least 90 days on any regulation 
     proposed under part B or part C of this title on which an 
     opportunity for public comment is otherwise required by law.
       ``(b) Protections Provided to Children.--The Secretary may 
     not implement, or publish in final form, any regulation 
     prescribed pursuant to this title which would procedurally or 
     substantively lessen the protections provided to children 
     with disabilities under this title, 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, timeliness, 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) 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 identify the topic addressed by the 
     correspondence and shall include such other summary 
     information as the Secretary determines to be appropriate.
       ``(3) Restrictions on use of correspondence.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an item of correspondence published and disseminated under 
     paragraph (1) may not be used in the following:
       ``(i) An administrative or due process action commenced 
     under section 615.
       ``(ii) A compliance review or other action relating to a 
     State educational agency conducted by the Department of 
     Education.
       ``(iii) A compliance review or other action relating to a 
     local educational agency or other agency conducted by a State 
     educational agency.
       ``(B) Exceptions.--A restriction on the use of an item of 
     correspondence under subparagraph (A) shall not apply if the 
     item of correspondence--
       ``(i) is directly related to the particular fact situation, 
     practice, or policy at issue under clause (i) or (iii) of 
     subparagraph (A);
       ``(ii)(I) was originally directed to one of the parties to 
     the action under subparagraph (A)(i); or
       ``(II) was originally directed to the particular local 
     educational agency or other agency under subparagraph 
     (A)(iii); or
       ``(iii) was originally directed to the particular State 
     educational agency under subparagraph (A)(ii).

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

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

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

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

       ``(a) Authorization.--The Secretary of Education shall 
     provide grants to States and provide amounts to the Secretary 
     of the Interior for the purpose of providing special 
     education and related services to children with disabilities 
     in accordance with this part.
       ``(b) Allotment Among States.--
       ``(1) Reservation for the territories.--
       ``(A) In general.--Of the amount appropriated pursuant to 
     subsection (e) to carry out this part for a fiscal year, the 
     Secretary shall allot not more than one percent among the 
     territories in accordance with this paragraph.
       ``(B) Basis for allotment.--The Secretary shall allot to 
     each territory an amount that bears the same proportion to 
     the amount appropriated pursuant to subsection (e) for a 
     fiscal year as the number of individuals aged 3 to 21, 
     inclusive, residing in such territory bears to the aggregate 
     number of such individuals residing in all such territories.
       ``(C) Prohibition on consolidation of grants.--Section 501 
     of Public Law 95-134 (48 U.S.C. 1469a; relating to the 
     consolidation of one or more grants provided to certain 
     territories) shall not apply with respect to amounts provided 
     to a territory under a grant under this part.
       ``(2) Secretary of the interior.--Of the amount 
     appropriated pursuant to subsection (e) to carry out this 
     part for a fiscal year, the Secretary shall provide to the 
     Secretary of the Interior an amount equal to 1.226 percent to 
     carry out subsection (d) (relating to special education and 
     related services for Indian children with disabilities).
       ``(3) States.--
       ``(A) In general.--After determining the amount to be 
     allotted to the territories under paragraph (1) and the 
     amount to be provided to the Secretary of the Interior under 
     paragraph (2) for a fiscal year, the Secretary shall allot 
     the remaining amount to the remaining States in accordance 
     with this paragraph.
       ``(B) Basis for allotment.--Except as provided in 
     subparagraph (D), the Secretary shall allot to each State an 
     amount equal to the sum of the following amounts:
       ``(i) The amount equal to--

       ``(I) 85 percent of the remaining amount described in 
     subparagraph (A); multiplied by
       ``(II) the child population percentage of the State (as 
     determined under subparagraph (C)(i)).

       ``(ii) The amount equal to--

       ``(I) 15 percent of the remaining amount described in 
     subparagraph (A); multiplied by
       ``(II) the child poverty percentage of the State (as 
     determined under subparagraph (C)(ii)).

       ``(C) Determination of child population percentage and 
     child poverty percentage.--
       ``(i) Child population percentage.--The child population 
     percentage shall be determined by comparing--

       ``(I) the number of children aged 3 to 21, inclusive, in 
     the State who are of the same age as children with 
     disabilities for whom the State ensures the availability of a 
     free appropriate public education; to
       ``(II) the number of such children in the remaining States.

       ``(ii) Child poverty percentage.--The child poverty 
     percentage shall be determined by comparing--

       ``(I) the number of children aged 3 to 21, inclusive, in 
     the State living in poverty who are of the same age as 
     children with disabilities for whom the State ensures the 
     availability of a free appropriate public education; to
       ``(II) the number of such children in the remaining States.

       ``(D) Transition formula.--For each of the fiscal years 
     1997 through 2005, the Secretary shall allot the remaining 
     amount to the remaining States in accordance with the 
     following:
       ``(i) Fiscal year 1997.--For fiscal year 1997, the 
     Secretary shall allot to each remaining State the sum of--

       ``(I) 10 percent multiplied by the amount determined for 
     such State under subparagraph (B); and
       ``(II) 90 percent multiplied by the amount determined for 
     such State under subparagraph (E).

       ``(ii) Fiscal year 1998.--For fiscal year 1998, the 
     Secretary shall allot to each remaining State the sum of--

       ``(I) 20 percent multiplied by the amount determined for 
     such State under subparagraph (B); and
       ``(II) 80 percent multiplied by the amount determined for 
     such State under subparagraph (E).

       ``(iii) Fiscal year 1999.--For fiscal year 1999, the 
     Secretary shall allot to each remaining State the sum of--

       ``(I) 30 percent multiplied by the amount determined for 
     such State under subparagraph (B); and
       ``(II) 70 percent multiplied by the amount determined for 
     such State under subparagraph (E).

       ``(iv) Fiscal year 2000.--For fiscal year 2000, the 
     Secretary shall allot to each remaining State the sum of--

       ``(I) 40 percent multiplied by the amount determined for 
     such State under subparagraph (B); and
       ``(II) 60 percent multiplied by the amount determined for 
     such State under subparagraph (E).

       ``(v) Fiscal year 2001.--For fiscal year 2001, the 
     Secretary shall allot to each remaining State the sum of--

[[Page H6056]]

       ``(I) 50 percent multiplied by the amount determined for 
     such State under subparagraph (B); and
       ``(II) 50 percent multiplied by the amount determined for 
     such State under subparagraph (E).

       ``(vi) Fiscal year 2002.--For fiscal year 2002, the 
     Secretary shall allot to each remaining State the sum of--

       ``(I) 60 percent multiplied by the amount determined for 
     such State under subparagraph (B); and
       ``(II) 40 percent multiplied by the amount determined for 
     such State under subparagraph (E).

       ``(vii) Fiscal year 2003.--For fiscal year 2003, the 
     Secretary shall allot to each remaining State the sum of--

       ``(I) 70 percent multiplied by the amount determined for 
     such State under subparagraph (B); and
       ``(II) 30 percent multiplied by the amount determined for 
     such State under subparagraph (E).

       ``(viii) Fiscal year 2004.--For fiscal year 2004, the 
     Secretary shall allot to each remaining State the sum of--

       ``(I) 80 percent multiplied by the amount determined for 
     such State under subparagraph (B); and
       ``(II) 20 percent multiplied by the amount determined for 
     such State under subparagraph (E).

       ``(ix) Fiscal year 2005.--For fiscal year 2005, the 
     Secretary shall allot to each remaining State the sum of--

       ``(I) 90 percent multiplied by the amount determined for 
     such State under subparagraph (B); and
       ``(II) 10 percent multiplied by the amount determined for 
     such State under subparagraph (E).

       ``(E) Base amount for 1996.--
       ``(i) In general.--Subject to clause (ii), the amount 
     determined under this subparagraph for a State is the amount 
     that bears the same proportion to the remaining amount 
     (described in subparagraph (A)) for the fiscal year under 
     subparagraph (D) as the amount received by the State under 
     this section for fiscal year 1996 bears to the aggregate of 
     the amounts received by the remaining States (described in 
     subparagraph (A)) under this section for fiscal year 1996.
       ``(ii) Reduction in amount.--If the State received an 
     amount under this section for fiscal year 1996 on the basis 
     of children aged 3 to 5, inclusive, in such State, but the 
     State does not make a free appropriate public education 
     available to all children with disabilities aged 3 to 5, 
     inclusive, in the State at the time a determination is made 
     under subparagraph (C), the Secretary shall reduce, on a 
     proportional basis, the amount under clause (i) for purposes 
     of allotting amounts under such subparagraph.
       ``(F) Increase in allotment amount during transition 
     years.--
       ``(i) In general.-- For each of the fiscal years 1997 
     through 2005, if the amount determined for a State under 
     subparagraph (D) is an amount that is less than the amount 
     received by the State under this section for fiscal year 1996 
     and--

       ``(I) the amount of the difference between such two amounts 
     is less than an amount equal to 10 percent of the amount 
     received by the State for fiscal year 1996, then the amount 
     allotted to the State for the fiscal year shall be equal to 
     the amount received by the State for fiscal year 1996; or
       ``(II) the amount of the difference between such two 
     amounts is equal to or greater than an amount equal to 10 
     percent of the amount received by the State for fiscal year 
     1996, then the amount allotted to the State for the fiscal 
     year shall be equal to the sum of (aa) the amount determined 
     for the State under subparagraph (D), and (bb) the amount 
     equal to 10 percent of the amount received by the State for 
     fiscal year 1996.

       ``(ii) Adjustment.--If amounts are allotted to one or more 
     States under clause (i) for a fiscal year, the Secretary 
     shall reduce, on a proportional basis, the amounts allotted 
     to the remaining States for which the amount determined under 
     subparagraph (D) is an amount that is greater than the amount 
     received by such States under this section for fiscal year 
     1996.
       ``(G) Minimum allotment.--For each fiscal year for which 
     one of the conditions of subparagraph (F) is met (or such 
     subparagraph does not apply) and subject to the availability 
     of appropriations, for fiscal year 1997 and each subsequent 
     fiscal year, the amount allotted to each remaining State 
     (described in subparagraph (A)) shall not be less than an 
     amount equal to one-third of one percent of the remaining 
     amount (described in subparagraph (A)) for the fiscal year.
       ``(H) Maximum allotment.--
       ``(i) In general.--For fiscal year 1997 and each subsequent 
     fiscal year, the amount allotted to each remaining State 
     (described in subparagraph (A)) under this paragraph shall 
     not be more than an amount equal to

       ``(I) the sum of--

       ``(aa) the number of children with disabilities in the 
     State, aged 6 through 21, who are receiving special education 
     and related services, as determined under clause (ii); and
       ``(bb) if the State is eligible for a grant under section 
     619, the number of such children in the State, aged 3 through 
     5; multiplied by

       ``(II) 40 percent of the average per-pupil expenditure in 
     public elementary and secondary schools in the United States.

       ``(ii) Determination of number of children.--The number of 
     children with disabilities receiving special education and 
     related services in any fiscal year shall be equal to the 
     number of such children receiving special education and 
     related services on December 1 of the fiscal year preceding 
     the fiscal year for which the determination is made.
       ``(iii) Average per pupil expenditure.--For purposes of 
     clause (i)(II), the term `average per pupil expenditure', in 
     the United States, means the aggregate current expenditures, 
     during the second fiscal year preceding the fiscal year for 
     which the computation is made (or, if satisfactory data for 
     such year are not available at the time of computation, then 
     during the most recent preceding fiscal year for which 
     satisfactory data are available) of all local educational 
     agencies in the United States (which, for purposes of this 
     subparagraph, means the fifty States and the District of 
     Columbia), as the case may be, plus any direct expenditures 
     by the State for operation of such agencies (without regard 
     to the source of funds from which either of such expenditures 
     are made), divided by the aggregate number of children in 
     average daily attendance to whom such agencies provided free 
     public education during such preceding year.
       ``(4) Special rule with respect to puerto rico.--
       ``(A) In general.--Except as provided subparagraph (B) and 
     notwithstanding paragraph (3), the amount allotted to Puerto 
     Rico for a fiscal year shall bear the same or lower 
     proportion to the remaining amount (described in paragraph 
     (3)(A)) as the amount received by Puerto Rico under this 
     section for fiscal year 1996 bears to the aggregate of the 
     amounts received by the remaining States (as described in 
     paragraph (3)(A)) under this section for fiscal year 1996.
       ``(B) Increase in allotment amount during certain fiscal 
     years.--For each fiscal year for which the minimum allotment 
     requirement under paragraph (3)(G) is met, the amount 
     allotted to Puerto Rico for that fiscal year shall be equal 
     to--
       ``(i) subject to clause (ii), the sum of--

       ``(I) the amount determined for Puerto Rico under 
     subparagraph (A); and
       ``(II) the amount equal to 10 percent of such amount 
     determined for Puerto Rico under subparagraph (A); or

       ``(ii) if the amount determined for Puerto Rico under 
     clause (i) is greater than the amount determined for Puerto 
     Rico under paragraph (3), the amount determined for Puerto 
     Rico under paragraph (3).
       ``(C) Adjustment in amounts to remaining states.--If the 
     amount allotted to Puerto Rico for a fiscal year is 
     determined under subparagraph (A) or (B)(i), the Secretary 
     shall reallot to the remaining States (as described in 
     paragraph (3)(A)), on a proportional basis, any amount not 
     otherwise allotted to Puerto Rico.
       ``(5) Use of most recent population data.--For the purpose 
     of providing grants under this part, the Secretary shall use 
     the most recent population data and data on children aged 3 
     to 21, inclusive, living in poverty that are available and 
     satisfactory to the Secretary.
       ``(c) Use of Funds by State.--
       ``(1) Reservation for state activities.--
       ``(A) In general.--Subject to subparagraph (D), a State may 
     reserve not more than 25 percent of the amount allotted to 
     the State under paragraph (1) or (3) of subsection (b) for a 
     fiscal year for administration and other State-level 
     activities in accordance with subparagraphs (B) and (C).
       ``(B) State administration.--
       ``(i) In general.--For the purpose of administering 
     programs under this part, 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 territory may use up to 3 percent of the amount 
     allotted to the territory for a fiscal year, or $35,000, 
     whichever is greater; and
       ``(II) each remaining State may use up to 3 percent of the 
     amount allotted to the State for a fiscal year, or $450,000, 
     whichever is greater.

       ``(ii) Use of amounts for administration of part c.--If the 
     State educational agency is the lead agency for the State 
     under part C, amounts described in clause (i) may also be 
     used for the administration of part C.
       ``(C) Other state-level activities.--A State shall use any 
     amounts reserved under subparagraph (A) for a fiscal year 
     that are not used for administration under subparagraph (B) 
     for such fiscal year--
       ``(i) for support and direct services, including technical 
     assistance and personnel development and training;
       ``(ii) for administrative costs of monitoring and complaint 
     investigation, but only to the extent that such costs exceed 
     the costs incurred for those activities during fiscal year 
     1985;
       ``(iii) to establish and implement the mediation process 
     required by section 615(d), including providing for the costs 
     of mediators and support personnel;
       ``(iv) to assist local educational agencies in meeting 
     personnel shortages;
       ``(v) to develop a State improvement plan under part D;
       ``(vi) for activities at the State and local levels to meet 
     the performance goals established by the State under section 
     612(a)(14) and to support implementation of the State 
     improvement plan under part D if the State receives funds 
     under that part; or
       ``(vii) to supplement other amounts used to develop and 
     implement a Statewide coordinated services system designed to 
     improve

[[Page H6057]]

     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 (such system shall be coordinated with and, to the 
     extent appropriate, build on the system of coordinated 
     services developed by the State under part C).
       ``(D) Report on use of amounts.--The State shall, as part 
     of the information required to be submitted under section 
     612, submit a description of--
       ``(i) how amounts reserved under subparagraph (A) will be 
     used to meet the requirements of this part;
       ``(ii) how such amounts will be allocated among the 
     activities described in subparagraphs (B) and (C) to meet 
     State priorities based on input from local educational 
     agencies; and
       ``(iii) what percentage of such amounts, if any, will be 
     distributed to local educational agencies by formula.
       ``(2) Subgrants to local educational agencies and certain 
     state agencies.--
       ``(A) In general.--The State shall provide at least 75 
     percent of the amount received under a grant for a fiscal 
     year to local educational agencies in the State that have 
     established their eligibility under section 613, and to State 
     agencies that received funds under section 614A(a) (as such 
     section was in effect on the day before the date of the 
     enactment of the IDEA Improvement Act of 1996) for fiscal 
     year 1996 and have established their eligibility under 
     section 613, for use in accordance with this part.
       ``(B) Methods of distribution.--A State may provide amounts 
     under subparagraph (A) to local educational agencies and 
     State agencies described under such subparagraph on the basis 
     of--
       ``(i) school-age population;
       ``(ii) school enrollment;
       ``(iii) numbers of children with disabilities receiving a 
     free appropriate public education;
       ``(iv) allocations for previous fiscal years;
       ``(v) any two or more of the factors described in clauses 
     (i) through (iv); or
       ``(vi) poverty, in combination with one or more of the 
     factors described in clauses (i) through (iv).
       ``(C) Former chapter 1 state agencies.--
       ``(i) In general.--To the extent necessary for each of the 
     fiscal years 1997, 1998, and 1999, the State shall use 
     amounts that are available under paragraph (1)(A) to ensure 
     that each State agency that received amounts in fiscal year 
     1994 under subpart 2 of part D of chapter 1 of title I of the 
     Elementary and Secondary Education Act of 1965 (as such 
     subpart was in effect on the day before the date of the 
     enactment of the Improving America's Schools Act of 1994) 
     receives, from the combination of funds under paragraph 
     (1)(A) and funds provided under subparagraph (A), an amount 
     equal to--

       ``(I) the number of children with disabilities, aged 6 to 
     21, inclusive, to whom the agency was providing special 
     education and related services on December 1 of the fiscal 
     year for which the funds were appropriated, subject to the 
     methods of distribution under subparagraph (B); multiplied by
       ``(II) the per-child amount provided under such subpart for 
     fiscal year 1994.

       ``(ii) Additional use of amounts.--The State may use 
     amounts described in clause (i) to ensure that each local 
     educational agency that received fiscal year 1994 funds under 
     that subpart for children who had transferred from a State-
     operated or State-supported school or program assisted under 
     that subpart receives, from the combination of funds 
     available under paragraph (1)(A) and funds provided under 
     subparagraph (A), an amount for each such child, aged 3 to 
     21, inclusive, to whom the agency was providing special 
     education and related services on December 1 of the fiscal 
     year for which the funds were appropriated, equal to the per-
     child amount the agency received under that subpart for 
     fiscal year 1994.
       ``(iii) Determination of number of children.--The number of 
     children counted under clause (i)(I) shall not exceed the 
     number of children aged 3 to 21, inclusive, for whom the 
     agency received amounts in fiscal year 1994 under subpart 2 
     of part D of chapter 1 of title I of the Elementary and 
     Secondary Education Act of 1965 (as such subpart was in 
     effect on the day before the date of the enactment of the 
     Improving America's Schools Act of 1994).
       ``(D) Reallocation of amounts.--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 amounts received under a 
     grant under this part that are not needed by that local 
     agency 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.
       ``(d) 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 (b)(2) for that fiscal year.
       ``(B) Calculation of number of children.--In the case of 
     Indian students ages 3 to 5, inclusive, who are enrolled in 
     programs affiliated with 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 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 to 5.--
       ``(A) In general.--With funds appropriated under subsection 
     (e), 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 to 5, inclusive, 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 (b)(2).
       ``(B) Distribution of funds.--The Secretary of the Interior 
     shall distribute the total amount of the payment under 
     subparagraph (A) by allocating to each tribe or tribal 
     organization an amount based on the number of children with 
     disabilities, ages 3 to 5, inclusive, residing on 
     reservations as reported annually divided by the total of 
     such 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 to 5, inclusive, parent training, and the 
     provision of direct services. These

[[Page H6058]]

     activities may be carried out directly or through contracts 
     or cooperative agreements with the BIA, local educational 
     agencies, and other public or private nonprofit 
     organizations. The tribe or tribal organization is encouraged 
     to involve Indian parents in the development and 
     implementation of these activities. The above entities shall, 
     as appropriate, make referrals to local, State, or Federal 
     entities for the provision of services or further diagnosis.
       ``(E) Biennial report.--To be eligible to receive a grant 
     pursuant to subparagraph (A), the tribe or tribal 
     organization shall provide to the Secretary of the Interior a 
     biennial report of activities undertaken under this 
     paragraph, including the number of contracts and cooperative 
     agreements entered into, the number of children contacted and 
     receiving services for each year and the estimated number of 
     children needing services during the 2 years following the 
     one in which the report is made. The Secretary of the 
     Interior shall include a summary of this information on a 
     biennial basis in the report to the Secretary of Education 
     required under this subsection. The Secretary of Education 
     may require any additional information from the Secretary of 
     the Interior.
       ``(F) Prohibitions.--None of the funds allocated under this 
     paragraph may be used by the Secretary of the Interior for 
     administrative purposes, including child count and the 
     provision of technical assistance.
       ``(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 such a plan, the 
     Secretary of the Interior shall consult with all interested 
     and involved parties. It shall be based upon 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. 
     Such plan shall also be distributed upon request to States, 
     State and local educational agencies, and other agencies 
     providing services to infants, toddlers, children, and youth 
     with disabilities, to tribes, and to other interested 
     parties.
       ``(5) Establishment of advisory board.--To meet the 
     requirements of section 612(a)(18), the Secretary of the 
     Interior shall establish, not later than 6 months after the 
     date of the enactment of the IDEA Improvement Act of 1996, 
     under the Bureau of Indian Affairs (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 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 BIA and 
     with other local, State, and Federal agencies in the 
     provision of education for infants, toddlers, children, and 
     youth 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, children, and youth 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).
       ``(e) Authorization of Appropriations.--For the purpose of 
     carrying out this part (except for section 619; relating to 
     preschool grants), there are authorized to be appropriated to 
     the Secretary such sums as may be necessary.

     ``SEC. 612. STATE REQUIREMENTS.

       ``(a) In General.--A State shall be eligible to receive a 
     grant under this part for a fiscal year if, except as 
     provided in subsection (c), the State submits to the 
     Secretary information that demonstrates to the satisfaction 
     of the Secretary that the State has in effect policies and 
     procedures to ensure that it meets each of the following 
     requirements:
       ``(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.
       ``(B) Limitation.--Subparagraph (A) shall not apply with 
     respect to children with disabilities aged 3 to 5 and 
     children with disabilities aged 18 to 21 to the extent that 
     such application to those children would be inconsistent with 
     State law or practice, or the order of any court, relating to 
     the provision of public education to children in such age 
     ranges.
       ``(2) Child find.--All children with disabilities residing 
     in the State, including children with disabilities attending 
     private schools, regardless of the severity of such 
     disabilities, and who are in need of special education and 
     related services, are identified, located, and evaluated and 
     that a practical method is developed and implemented to 
     determine which children with disabilities are currently 
     receiving needed special education and related services.
       ``(3) 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).
       ``(4) Least restrictive environment.--
       ``(A) In general.--To the maximum extent appropriate--
       ``(i) children with disabilities, including children in 
     public or private institutions or other care facilities, are 
     educated with children who are not disabled; and
       ``(ii) 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 means that education in 
     regular classes with the use of supplementary aids and 
     services cannot be achieved satisfactorily.
       ``(B) Additional requirement.--
       ``(i) In general.--The State's method of distributing funds 
     shall not result in placements that violate the requirements 
     of subparagraph (A).
       ``(ii) Exception.--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.
       ``(5) 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 
     assure that testing and evaluation materials and procedures 
     utilized for the purposes of evaluation and placement of 
     children with disabilities will be selected and administered 
     so as not to be racially or culturally discriminatory. Such 
     materials or procedures shall be provided and administered in 
     the child's native language or mode of communication, unless 
     it clearly is not feasible to do so, and no single procedure 
     shall be the sole criterion for determining an appropriate 
     educational program for a child.
       ``(6) Evaluation.--Children with disabilities are evaluated 
     in accordance with subsections (a) through (c) of section 
     614.
       ``(7) Confidentiality.--Agencies in the State comply with 
     section 617(c) (relating to the confidentiality of records 
     and information).
       ``(8) 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 
     transition to those preschool programs in a manner consistent 
     with section 637(a)(7). By the third birthday of such a 
     child, an individualized education program or, if consistent 
     with sections 614(d)(1)(B) and 636(d), an individualized 
     family service plan, has been developed and is being 
     implemented for the child. The local educational agency will 
     participate in transition planning conferences by the 
     designated lead agency under section 637(a)(7).
       ``(9) Children in private schools.--
       ``(A) In general.--To the extent consistent with the number 
     and location of children with disabilities in the State who 
     are enrolled in private elementary and secondary schools, 
     provision is made for the participation of such children in 
     the program assisted or carried out under this part by 
     providing for such children special education and related 
     services, except if the Secretary has arranged for services 
     to such children under subsection (f).
       ``(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 they are 
     placed in, or referred to, such schools or facilities by the 
     State or a local educational agency in order to comply with 
     this part or with any other provision of law requiring the 
     provision of special education and related services to all 
     children with disabilities in the State.
       ``(ii) Additional requirements.--In all cases described in 
     clause (i)--

       ``(I) children with disabilities are placed in, or referred 
     to, only those private schools and facilities that the State 
     educational agency

[[Page H6059]]

     determines meet standards that apply to State and local 
     educational agencies; and
       ``(II) children served in such private schools or 
     facilities retain access to a free appropriate public 
     education in accordance with this part.

       ``(C) Payment for education of children placed in private 
     schools without consent of or referral by the public 
     agency.--
       ``(i) In general.--If the parents of a child with a 
     disability that had previously received special education and 
     related services under the authority of a public agency have 
     enrolled their child in a private elementary or secondary 
     school without the consent of or referral by the public 
     agency, as a result of mediation described in section 615(d), 
     or as a result of a decision rendered under the procedural 
     safeguards of section 615, the public agency may be required 
     to reimburse the parents for the cost of the enrollment, 
     except that the cost of the reimbursement may be reduced or 
     denied--

       ``(I) if, at least 10 school days prior to the removal of 
     the child from the public school, the parents did not give a 
     written statement of their concerns to the public agency and 
     notice that they intend to place their child in a private 
     school at public expense;
       ``(II) if, prior to the removal of the child from the 
     public school, the parents did not make the child available 
     for an initial assessment and evaluation by the local 
     educational agency prior to enrollment in the private school; 
     or
       ``(III) at the discretion of the judge.

       ``(ii) Exception.--Notwithstanding the notice requirement 
     in clause (i)(I), the cost of the reimbursement may not be 
     reduced or denied for failure to provide such notice if--

       ``(I) the parent is illiterate or cannot write in English;
       ``(II) compliance with clause (i)(I) would likely result in 
     physical or serious emotional harm to the child;
       ``(III) the school prevented the parent from providing such 
     notice; or
       ``(IV) the parent had not received notice, pursuant to 
     section 615(d), of the notice requirement in clause (i)(I).

       ``(10) 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.
       ``(11) Obligations related to and methods of ensuring 
     services.--
       ``(A) Establishing responsibility for services.--The Chief 
     Executive Officer or designee of the officer shall ensure 
     that an interagency agreement or other mechanism for 
     interagency coordination is in effect between each public 
     agency described in subparagraph (B) and the appropriate 
     educational agency within the State, in order to ensure that 
     all services described in subparagraph (B)(i) that are needed 
     to ensure a free appropriate public education are provided, 
     including the provision of such services during the pendency 
     of any dispute under clause (iii). Such agreement or 
     mechanism shall include the following:
       ``(i) Agency financial responsibility.--An identification 
     of, or a method for defining, the financial responsibility of 
     each agency for providing services described in subparagraph 
     (B)(i) to ensure a free appropriate public education to 
     children with disabilities provided that the financial 
     responsibility of each public agency described in 
     subparagraph (B), including the State Medicaid agency and 
     other public insurers of children with disabilities, shall 
     precede the financial responsibility of the local education 
     agency (or the State agency responsible for developing the 
     child's IEP).
       ``(ii) Conditions and terms of reimbursement.--The 
     conditions, terms, and procedures under which a local 
     educational agency shall be reimbursed by other agencies.
       ``(iii) Interagency disputes.--Procedures for resolving 
     interagency disputes (including procedures under which local 
     education agencies may initiate proceedings) under the 
     agreement or other mechanism to secure reimbursement from 
     other agencies or otherwise implement the provisions of the 
     agreement or mechanism.
       ``(iv) Coordination of services procedures.--Policies and 
     procedures for agencies to determine and identify the 
     interagency coordination responsibilities of each agency to 
     promote the coordination and timely and appropriate delivery 
     of services described in subparagraph (B)(i).
       ``(B) Obligation of public agency.--
       ``(i) In general.--If any public agency other than an 
     educational agency is otherwise obligated under Federal or 
     State law, or assigned responsibility under State policy or 
     pursuant to subparagraph (A), to provide or pay for any 
     services that are also considered special education or 
     related services (such as, but not limited to, services 
     described in sections 602(1) relating to assistive technology 
     devices, 602(2) relating to assistive technology services, 
     602(20) relating to related services, 602(27) related to 
     supplementary aids and services, and 602(29) relating to 
     transition services) that are necessary for ensuring a free 
     appropriate public education to children with disabilities 
     within the State, such public agency shall fulfill that 
     obligation or responsibility, either directly or through 
     contract or other arrangement.
       ``(ii) Reimbursement for services by public agency.--If a 
     public agency other than an educational agency fails to 
     provide or pay for the special education and related services 
     described in clause (i), the local educational agency (or 
     State agency responsibility for developing the child's IEP) 
     shall provide or pay for such services to the child. Such 
     local education agency or State agency may then claim 
     reimbursement for the services from the public agency that 
     failed to provide or pay for such services and such public 
     agency shall reimburse the local education agency or State 
     agency pursuant to the terms of the interagency agreement 
     described in subparagraph (A)(i) according to the procedures 
     established in such agreement pursuant to subparagraph 
     (A)(ii).
       ``(C) Special rule.--The requirements of subparagraph (A) 
     may be met through--
       ``(i) State statute or regulation;
       ``(ii) signed agreements between respective agency 
     officials that clearly identify the responsibilities of each 
     agency relating to the provision of services; or
       ``(iii) other appropriate methods as determined by the 
     Chief Executive Officer or designee of the officer.
       ``(12) 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.
       ``(13) Comprehensive system of personnel development.--The 
     State has established and implemented, consistent with the 
     purposes of this title and section 635(a)(7), a comprehensive 
     system of personnel development that is designed to ensure an 
     adequate supply of qualified special education and related 
     services personnel necessary to carry out this part, 
     including--
       ``(A) a statewide, coordinated personnel-development plan 
     that meets the personnel development requirements of a State 
     improvement plan under section 683; or
       ``(B) a personnel-development plan, developed in 
     consultation with parents of children with disabilities, 
     State and local educational agencies, institutions of higher 
     education, and professional associations that--
       ``(i) addresses current and projected needs for special 
     education and related services personnel throughout the 
     State;
       ``(ii) addresses the need for the pre-service and in-
     service preparation of personnel throughout the State, 
     including regular education personnel, to provide educational 
     services to children with disabilities;
       ``(iii) includes a system or procedures for recruiting, 
     preparing, and retaining qualified personnel, including 
     personnel with disabilities and personnel from groups that 
     are underrepresented in the field of special education and 
     related services; and
       ``(iv) is integrated, to the maximum extent possible, with 
     other professional development plans and activities.
       ``(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) 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;
       ``(ii) to the extent the standards described in 
     subparagraph (A) are not based on the highest requirements in 
     the State applicable to a specific profession or discipline, 
     the State is taking steps to require retraining or hiring of 
     personnel that meet appropriate professional requirements in 
     the State; 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) Exception.--If the State determines that, within a 
     geographic area of the State there is a shortage of an 
     appropriate number and type of personnel to provide the 
     special education and related services to children with 
     disabilities within such area, and the appropriate public 
     agency has taken steps to recruit and hire such personnel, 
     the State may, subject to public comment and review, 
     temporarily suspend the standards of subparagraph (B)(ii)--
       ``(i) consistent with State law, for the purpose of 
     recruiting and hiring for such shortage areas the most 
     qualified available individuals who are making progress in 
     applicable coursework; and
       ``(ii) for a period not to exceed 3 years.
       ``(15) Performance goals and indicators.--The State--

[[Page H6060]]

       ``(A) has established goals for the performance of children 
     with disabilities in the State that--
       ``(i) will promote the purposes of this title, as stated in 
     section 601(d); and
       ``(ii) are consistent, to the maximum extent appropriate, 
     with other goals and standards established by the State;
       ``(B) has established performance indicators the State will 
     use to assess progress toward achieving those goals that, at 
     a minimum, address the performance of children with 
     disabilities on assessments, drop-out rates, and graduation 
     rates;
       ``(C) will, every two years, 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); and
       ``(D) based on its assessment of that progress, will revise 
     its State improvement plan under part D as may be needed to 
     improve its performance, if the State receives assistance 
     under such part.
       ``(16) Participation in assessments.--
       ``(A) In general.--Children with disabilities are included 
     in general State and district-wide assessment programs, with 
     appropriate accommodations, where necessary. As appropriate, 
     the State or local educational agency--
       ``(i) develops guidelines for the participation of children 
     with disabilities in alternate assessments for those children 
     who cannot participate in State and district-wide assessment 
     programs; and
       ``(ii) develops and, beginning not later than July 1, 1999, 
     conducts those alternate assessments.
       ``(B) Reports.--The State 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.
       ``(ii) The number of those children participating in 
     alternate assessments.
       ``(iii) The performance of those children on regular 
     assessments (beginning not later than July 1, 1997) and on 
     alternate assessments (not later than July 1, 1999), if doing 
     so would be statistically sound and would not result in the 
     disclosure of performance results identifiable to individual 
     children.
       ``(17) Supplementation of state, local, and other federal 
     funds.--
       ``(A) In general.--The State ensures that amounts provided 
     under a grant to the State under this part, except as 
     provided in subparagraph (B), will be used to supplement 
     State, local, and other Federal funds (including funds not 
     under the direct control of State or local educational 
     agencies) expended for special education and related 
     services, and not to supplant those funds.
       ``(B) Waiver.--The Secretary may waive, in whole or in 
     part, the requirements of subparagraph (A) if the Secretary 
     determines that the State has provided clear evidence that 
     all children with disabilities in the State have available a 
     free appropriate public education or that, such a waiver 
     would allow the State to improve the delivery of special 
     education and related services to children with disabilities 
     in the State.
       ``(18) 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.
       ``(19) 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;
       ``(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) at least one representative of a vocational, 
     community, or business organization concerned with the 
     provision of transition services to children with 
     disabilities; and
       ``(ix) 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.
       ``(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--

       ``(I) the education of children with disabilities; and
       ``(II) the procedures for distribution of amounts received 
     by the State under a grant under this part;

       ``(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.
       ``(b) State Educational Agency as Provider of Free 
     Appropriate Public Education or Direct Services.--If the 
     State educational agency provides free appropriate public 
     education to children with disabilities, or provides direct 
     services to such children, such agency--
       ``(1) shall comply with any additional requirements of 
     section 613(a), as if such agency were a local educational 
     agency; and
       ``(2) may use amounts that are otherwise available to such 
     agency under this part to serve those children without regard 
     to section 613(a)(2)(A)(i) (relating to excess costs).
       ``(c) Exception for Prior State Plans.--
       ``(1) In general.--If a State has on file with the 
     Secretary policies and procedures that demonstrate that such 
     State meets any requirement of subsection (a), including any 
     policies and procedures filed under this part as in effect 
     before the date of the enactment of the IDEA Improvement Act 
     of 1996, 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.--The 
     Secretary may require a State to amend its application at any 
     time as a result of the Secretary's compliance reviews under 
     parts B and C. The Secretary shall reduce or shall not 
     provide any further payments to the State educational agency 
     until the Secretary is satisfied that the State educational 
     agency is complying with that requirement.
       ``(d) Approval by the Secretary.--
       ``(1) In general.--If the Secretary determines that a State 
     is eligible to receive a grant under this part, the Secretary 
     shall notify the State of that determination.
       ``(2) Notice and hearing.--The Secretary shall not make a 
     final determination that a State is not eligible to receive a 
     grant under this part until after providing the State--
       ``(A) with reasonable notice; and
       ``(B) with an opportunity for a hearing.
       ``(e) Assistance Under Other Federal Programs.--Nothing in 
     this title permits a State to reduce medical and other 
     assistance available, or to alter eligibility, under titles V 
     and XIX of the Social Security Act with respect to the 
     provision of a free appropriate public education for children 
     with disabilities within the State.
       ``(f) By-Pass for Children in Private Schools.--
       ``(1) In general.--If, on the date of enactment of the 
     Education of the Handicapped Act Amendments of 1983, a State 
     educational agency is prohibited by law from providing for 
     the participation in special programs of children with 
     disabilities enrolled in private elementary and secondary 
     schools as required by subsection (a)(9), the Secretary 
     shall, notwithstanding such provision of law, arrange for the 
     provision of services to such children through arrangements 
     which shall be subject to the requirements of such 
     subsection.
       ``(2) Payments.--
       ``(A) Determination of amounts.--If the Secretary arranges 
     for services pursuant to this subsection, the Secretary, 
     after consultation with the appropriate public and private 
     school officials, shall pay to the provider of such services 
     for a fiscal year an amount per child that does not exceed 
     the amount determined by dividing--
       ``(i) the total amount received by the State under this 
     part for such fiscal year; by
       ``(ii) the number of children with disabilities served in 
     the prior year, as reported to the Secretary by the State 
     under section 618.
       ``(B) Withholding of certain amounts.--Pending final 
     resolution of any investigation or complaint that could 
     result in a determination under this subsection, the 
     Secretary may withhold from the allocation of the affected 
     State educational agency the amount the Secretary estimates 
     would be necessary to pay the cost of services described in 
     subparagraph (A).
       ``(C) Period of payments.--The period under which payments 
     are made under subparagraph (A) shall continue until the 
     Secretary determines that there will no longer be any failure 
     or inability on the part of the State educational agency to 
     meet the requirements of subsection (a)(9).
       ``(3) Notice and hearing.--
       ``(A) In general.--The Secretary shall not take any final 
     action under this subsection until the State educational 
     agency affected by such action has had an opportunity, for at 
     least 45 days after receiving written notice thereof, to 
     submit written objections and to

[[Page H6061]]

     appear before the Secretary or the Secretary's designee to 
     show cause why such action should not be taken.
       ``(B) Review of action.--If a State educational agency is 
     dissatisfied with the Secretary's final action after a 
     proceeding under subparagraph (A), such agency may, not later 
     than 60 days after notice of such action, file with the 
     United States court of appeals for the circuit in which such 
     State is located a petition for review of that action. A copy 
     of the petition shall be forthwith transmitted by the clerk 
     of the court to the Secretary. The Secretary thereupon shall 
     file in the court the record of the proceedings on which the 
     Secretary based the Secretary's action, as provided in 
     section 2112 of title 28, United States Code.
       ``(C) Review of findings of fact.--The findings of fact by 
     the Secretary, if supported by substantial evidence, shall be 
     conclusive, but the court, for good cause shown, may remand 
     the case to the Secretary to take further evidence, and the 
     Secretary may thereupon make new or modified findings of fact 
     and may modify the Secretary's previous action, and shall 
     file in the court the record of the further proceedings. Such 
     new or modified findings of fact shall likewise be conclusive 
     if supported by substantial evidence.
       ``(D) Jurisdiction of court of appeals; review by united 
     states supreme court.--Upon the filing of a petition under 
     subparagraph (B), the United States court of appeals shall 
     have jurisdiction to affirm the action of the Secretary or to 
     set it aside, in whole or in part. The judgment of the court 
     shall be subject to review by the Supreme Court of the United 
     States upon certiorari or certification as provided in 
     section 1254 of title 28, United States Code.

     ``SEC. 613. LOCAL EDUCATIONAL AGENCY REQUIREMENTS.

       ``(a) In General.--A local educational agency shall be 
     eligible for assistance under this part for any fiscal year 
     if, except as provided in subsection (b), such agency submits 
     to the State educational agency information that demonstrates 
     to the satisfaction of the State educational agency the 
     following:
       ``(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--
       ``(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;
       ``(iii) except as provided in subparagraph (B), may not be 
     used to reduce the level of expenditures for the education of 
     children with disabilities made by the local educational 
     agency from State or local funds below the level of those 
     expenditures for the preceding fiscal year;
       ``(iv) may be used, notwithstanding clause (i) or any other 
     provision of this part, for the costs of special education 
     and related services provided in a regular class or other 
     education related setting to a child with a disability in 
     accordance with the child's individualized education program, 
     even if one or more nondisabled children benefit from those 
     services; and
       ``(v) may be used, in accordance with subsection (f) and 
     notwithstanding clause (i) or any other provision of this 
     part, to develop and implement a coordinated services system.
       ``(B) Exception.--Notwithstanding the restriction in 
     subparagraph (A)(iii), a local education agency may reduce 
     the level of expenditures where such reduction is 
     attributable to--
       ``(i) the departure, by retirement or otherwise, 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.
       ``(3) 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 (14) and (15) of section 612(a), 
     information relating to the performance of children with 
     disabilities participating in programs carried out under this 
     part.
       ``(4) Public information.--The local educational agency 
     shall make available to parents of children with disabilities 
     and to the general public all documents relating to the 
     eligibility of such agency under this part.
       ``(b) Exception for Prior Local Plans.--
       ``(1) In general.--If a local educational agency or State 
     agency has on file with the State educational agency policies 
     and procedures that demonstrate that such local educational 
     agency, or such State agency, as the case may be, meets any 
     requirement of subsection (a), including any policies and 
     procedures filed under this part as in effect before the date 
     of the enactment of IDEA Improvement Act of 1996, the State 
     educational agency shall consider such local educational 
     agency or State agency, as the case may be, to have met such 
     requirement for purposes of receiving assistance under this 
     part.
       ``(2) Modification made by local educational agency.--
     Subject to paragraph (3), an application submitted by a local 
     educational agency in accordance with this section shall 
     remain in effect until the such agency submits to the State 
     educational agency such modifications as the local 
     educational agency deems necessary.
       ``(3) Modifications required by state educational agency.--
     The State educational agency may require a local educational 
     agency to amend its application at anytime as a result of the 
     compliance reviews of the State educational agency under 
     parts B and C. This paragraph 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.
       ``(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 such 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) 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.
       ``(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(c) 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)(4).
       ``(f) Coordinated Services System.--
       ``(1) In general.--A local educational agency may not use 
     more than 5 percent of the amount such agency receives under 
     this part for any fiscal year, in combination with other 
     amounts (which shall include amounts other than education 
     funds), to develop and

[[Page H6062]]

     implement a coordinated services system designed to improve 
     results for children and families, including children with 
     disabilities and their families.
       ``(2) Activities.--In implementing a coordinated services 
     system under this subsection, a local educational agency may 
     carry out activities which include--
       ``(A) improving the effectiveness and efficiency of service 
     delivery, including developing strategies that promote 
     accountability for results;
       ``(B) service coordination and case management that 
     facilitates the linkage of individualized education programs 
     under this part and individualized family service plans under 
     part C with individualized service plans under multiple 
     Federal and State programs, such as title I of the 
     Rehabilitation Act of 1973 (vocational rehabilitation), title 
     XIX of the Social Security Act (Medicaid), and title XVI of 
     the Social Security Act (supplemental security income);
       ``(C) developing and implementing interagency financing 
     strategies for the provision of education, health, mental 
     health, and social services, including transition services 
     and related services under this title; and
       ``(D) interagency personnel development for individuals 
     working on coordinated services.
       ``(3) Coordination with certain projects under elementary 
     and secondary education act of 1965.--If a local educational 
     agency is carrying out a coordinated services project under 
     title XI of the Elementary and Secondary Education Act of 
     1965 and a coordinated services project under this part in 
     the same schools, such agency shall use amounts under this 
     subsection in accordance with the requirements of that title.
       ``(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(c) 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.

     ``SEC. 614. EVALUATIONS, REEVALUATIONS, INDIVIDUALIZED 
                   EDUCATION PROGRAMS, AND EDUCATIONAL PLACEMENTS.

       ``(a) Evaluations and Reevaluations.--
       ``(1) Initial evaluations.--
       ``(A) In general.--A State educational agency, other State 
     agency, or local educational agency shall conduct an 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) 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.
       ``(C) Parental consent.--
       ``(i) In general.--The agency proposing to conduct an 
     initial evaluation to determine if the child qualifies as a 
     child with a disability as defined in section 602(3)(A) or 
     602(3)(B) shall obtain an informed consent from the parent of 
     such child before the evaluation is conducted. Parental 
     consent for evaluation shall not be construed as consent for 
     placement for receipt of special education and related 
     services.
       ``(ii) Refusal.--If the parents of such child refuse 
     consent for the evaluation, the agency may continue to pursue 
     an evaluation by utilizing the mediation and due process 
     procedures under section 615(e).
       ``(2) Reevaluations.--A local educational agency shall 
     ensure that a reevaluation of each child with a disability is 
     conducted--
       ``(A) if conditions warrant a reevaluation or if the 
     child's parent or teacher requests a reevaluation, but at 
     least once every 3 years; and
       ``(B) in accordance with subsections (b) and (c).
       ``(b) Evaluation Procedures.--
       ``(1) Notice.--The local educational agency shall provide 
     notice to the parents of a child with a disability, in 
     accordance with subsections (b)(3), (b)(4), and (c) of 
     section 615, that describes any evaluation procedures such 
     agency proposes to conduct.
       ``(2) Conduct of evaluation.--In conducting the evaluation, 
     the local educational agency shall--
       ``(A) use a variety of assessment tools and strategies to 
     gather relevant functional and developmental information, 
     including information provided by the parent, that may assist 
     in determining whether the child is a child with a disability 
     and the content of the child's individualized education 
     program, including information related to enabling the child 
     to be involved in and progress in the general curriculum or, 
     for preschool children, to participate in appropriate 
     activities;
       ``(B) not use any single procedure as the sole criterion 
     for determining whether a child is a child with a disability 
     or determining an appropriate educational program for the 
     child; and
       ``(C) use technically sound instruments that may assess the 
     relative contribution of cognitive and behavioral factors, in 
     addition to physical or developmental factors.
       ``(3) Additional requirements.--Each local educational 
     agency shall ensure that--
       ``(A) tests and other evaluation materials used to assess a 
     child under this section--
       ``(i) are selected and administered so as not to be 
     discriminatory on a racial or cultural basis; and
       ``(ii) are provided and administered in the child's native 
     language or other mode of communication, unless it is clearly 
     not feasible to do so; and
       ``(B) any standardized tests that are given to the child--
       ``(i) have been validated for the specific purpose for 
     which they are used;
       ``(ii) are administered by qualified personnel; and
       ``(iii) are administered in accordance with any 
     instructions provided by the producer of such tests; and
       ``(C) the child is assessed in all areas of suspected 
     disability.
       ``(4) Determination of eligibility.--Upon completion of 
     administration of tests and other evaluation materials--
       ``(A) the determination of whether the child is a child 
     with a disability as defined in section 602(3) or section 
     602(3)(B) will 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 based on any of the following:
       ``(A) Lack of instruction, including instruction in reading 
     or math.
       ``(B) Limited English proficiency.
       ``(C) Cultural or environmental factors.
       ``(D) Economic disadvantage.
       ``(c) Reevaluation Procedures.--
       ``(1) In general.--As part of any reevaluation to assess a 
     child under this section, the individualized education 
     program team and other qualified professionals, as 
     appropriate, shall--
       ``(A) review existing evaluation data on the child, 
     including current classroom-based assessments and teacher and 
     related services providers observation; and
       ``(B) on the basis of that review and input from the 
     child's parents, identify what additional data, if any, are 
     needed to determine--
       ``(i) whether the child continues to have a disability, as 
     described in section 602(3)(A)(i) or section 602(3)(B);
       ``(ii) the child's present levels of performance and 
     educational needs; and
       ``(iii)(I) whether the child continues to need special 
     education and related services; and
       ``(II) if so, any additions or modifications to the special 
     education and related services to enable the child to meet 
     the objectives set out in the individualized education 
     program of the child and to participate, as appropriate, in 
     the general curriculum.
       ``(2) Tests and other evaluation materials.--The local 
     educational agency shall administer such tests and other 
     evaluation materials as may be needed to produce the data 
     identified by the IEP Team under paragraph (1)(B).
       ``(3) Requirements if additional data not needed.--If the 
     IEP Team and other qualified professionals, as appropriate, 
     determines that no additional data are needed to determine 
     whether the child continues to be a child with a disability, 
     the local educational agency--
       ``(A) shall notify the child's parents of--
       ``(i) that determination and the reasons for 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
       ``(B) shall not be required to conduct such an assessment 
     unless requested to by the child's parents.
       ``(d) Individualized Education Programs.--

[[Page H6063]]

       ``(1) Requirement that program be in effect.--
       ``(A) In general.--At the beginning of each school year, 
     each local educational agency, or State educational 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 section 602(11).
       ``(B) Program for child aged 3 to 5.--In the case of a 
     child with a disability aged 3 to 5, inclusive, an 
     individualized family service plan that contains the material 
     described in section 636, and that is developed in accordance 
     with this section, may serve as the IEP of the child if using 
     that plan as the IEP is--
       ``(i) consistent with State policy; and
       ``(ii) agreed to by the agency and the child's parents.
       ``(2) Development of iep.--
       ``(A) In general.--An individualized education program team 
     shall develop the IEP described in paragraph (1). In 
     developing such IEP, the IEP Team, subject to subparagraph 
     (B), shall--
       ``(i) consider the child's strengths and the parents' 
     concerns for enhancing their child's education;
       ``(ii) consider the results of the initial evaluation or 
     most recent reevaluation;
       ``(iii) in the case of a child whose behavior impedes his 
     or her learning or that of others, consider, when 
     appropriate, strategies, including positive behavior 
     management interventions and strategies to help the child 
     behave in an appropriate and responsible manner conducive to 
     learning;
       ``(iv) 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;
       ``(v) in the case of a child who is blind or visually 
     impaired, provide for instruction in braille and the use of 
     braille unless all members of the IEP Team concur that, 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), instruction in braille or the 
     use of braille is not appropriate for the child;
       ``(vi) consider the communication needs of the child, and 
     in the case of a child who is deaf, hard-of-hearing, blind, 
     or communicatively disabled, consider the language and 
     communication needs of the child; and
       ``(vii) consider whether the child requires assistive 
     technology services or devices.
       ``(B) Requirement with respect to regular education 
     teacher.--The regular education teacher of the child, as a 
     member of the IEP Team, shall, to the extent appropriate, 
     participate in the development of the IEP of the child, 
     including the determination of appropriate positive behavior-
     management interventions and strategies consistent with 
     subparagraph (A)(iii) of this paragraph, and the 
     determination of supplementary aids and services, program 
     modifications, and support for school personnel consistent 
     with section 602(11)(E).
       ``(3) Review and revision of iep.--
       ``(A) In general.--The local educational agency shall 
     ensure that, subject to subparagraph (C), the IEP Team--
       ``(i) reviews each IEP at least once a year to determine 
     whether the annual goals for the child are being achieved; 
     and
       ``(ii) revises the IEP to address--

       ``(I) any lack of expected progress toward the annual goals 
     and in the general curriculum, where appropriate;
       ``(II) the results of any reevaluation conducted under this 
     section;
       ``(III) information about the child provided to, or by, the 
     parents, as described in section 602(11)(F)(ii); or
       ``(IV) the child's anticipated needs as otherwise 
     appropriate.

       ``(B) Certain children with disabilities.--
       ``(i) In general.--In the case of a child with a disability 
     who has demonstrated a pattern of behavior that significantly 
     impairs the education of the child, or the education of the 
     classmates of the child, and the ability of the teacher of 
     the child to teach, if such teacher initiates or requests an 
     IEP meeting, then the appropriate authority shall convene an 
     IEP meeting to review the child's educational program, 
     related services, supplementary aids and services, and 
     placement.
       ``(ii) Review of iep.--In carrying out a review of the IEP 
     of the child, the IEP Team shall determine--

       ``(I) the appropriateness of the current IEP of the child;
       ``(II) whether or not special education and related 
     services have been appropriately provided to the child;

       ``(III) whether or not other supplementary aids or 
     services, including teacher training, are needed to address 
     the behavior of the child; and
       ``(IV) subject to clauses (iii) and (iv), whether or not 
     the placement of the child should be changed.

       ``(iii) Determination of change in placement.--Prior to 
     proposing a change in the placement of the child, the IEP 
     Team shall first consider and then document the following:

       ``(I) The cumulative record over a reasonable period of 
     time describing the frequent behaviors exhibited by the child 
     that significantly impairs the education of the child, the 
     education of the classmates of the child, and the ability of 
     the teacher of the child to teach.
       ``(II) Documentation of the efforts made to address the 
     behavior of the child, the use of supplementary services or 
     strategies (including the use of behavior management plans) 
     that have been implemented over a reasonable period of time 
     and have failed to address the behavior of the child in a 
     manner that would enable the child to remain in the current 
     educational placement of the child without significantly 
     impairing the education of the child, the education of the 
     classmates of the child, and the ability of the teacher of 
     the child to teach.
       ``(III) The training made available to the teacher or 
     teachers of the child.

       ``(iv) Expedited due process hearing.--If the IEP Team 
     determines that a change in placement of the child is 
     appropriate, and the parents of the child disagree with such 
     determination, then either party may request an expedited due 
     process hearing in accordance with section 615(f)(2).
       ``(C) Requirement with respect to regular education 
     teacher.--The regular education teacher of the child, as a 
     member of the IEP Team, shall, to the extent appropriate, 
     participate in the review and revision of the IEP of the 
     child.
       ``(4) 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 section 602(11)(F)(ii), the local 
     educational agency shall reconvene the IEP Team to identify 
     alternative strategies to meet the transition objectives for 
     the child set out in that program.
       ``(5) Rule of construction.--Nothing in this subsection 
     shall be construed--
       ``(A) to decrease the amount of information that a parent 
     receives concerning the progress of the child of such parent; 
     or
       ``(B) to increase the amount of paperwork for the teachers, 
     related services personnel, and administrators of such child.
       ``(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.

     ``SEC. 615. PROCEDURAL SAFEGUARDS.

       ``(a) Establishment of Procedures.--Any State educational 
     agency or local educational agency that receives assistance 
     under this part shall establish and maintain procedures in 
     accordance with this section to assure 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.--The procedures required by this 
     section shall include--
       ``(1) an opportunity for the parents of a child with a 
     disability to examine all records relating to such child and 
     to participate in meetings with respect to the 
     identification, evaluation, and educational placement of the 
     child, and the provision of a free appropriate public 
     education to such child, and to obtain an independent 
     educational evaluation of the child;
       ``(2) procedures to protect the rights of the child 
     whenever the parents of the child are not known, the agency 
     cannot, after reasonable efforts, locate the parents, or the 
     child is a ward of the State, including the assignment of an 
     individual (who shall not be an employee of the State 
     educational agency, the local educational agency, or any 
     other agency that is involved in the education or care of the 
     child) to act as a surrogate for the parents;
       ``(3) written prior notice to the parents of the child 
     whenever such agency--
       ``(A) proposes to initiate or change; or
       ``(B) refuses to initiate or change;

     the identification, evaluation, or educational placement of 
     the child, in accordance with subsection (c), or the 
     provision of a free appropriate public education to the 
     child;
       ``(4) procedures designed to assure that the notice 
     required by paragraph (3) is in the native language of the 
     parents, unless it clearly is not feasible to do so;
       ``(5) an opportunity for mediation in accordance with 
     subsection (e);
       ``(6) an opportunity to present complaints with respect to 
     any matter relating to the identification, evaluation, or 
     educational placement of the child, or the provision of a 
     free appropriate public education to such child;
       ``(7) procedures that require the parent of a child with a 
     disability, or the attorney representing the child, to 
     provide notice (which shall remain confidential)--
       ``(A) to the State educational agency or local educational 
     agency, as the case may be, in the complaint filed under 
     paragraph (6); and
       ``(B) that shall include--
       ``(i) the name of the child, the address of the residence 
     of the child, and the name of the school at which the child 
     is attending;
       ``(ii) a description of the nature of the problem of the 
     child relating to such proposed initiation or change, 
     including facts relating to such problem; and
       ``(iii) the proposed resolution of the problem; 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.--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;

[[Page H6064]]

       ``(3) a description of any other options that the agency 
     considered and the reasons why those options were rejected;
       ``(4) a description of each evaluation procedure, test, 
     record, or report the agency used as a basis for the proposed 
     or refused action;
       ``(5) a description of any other factors that are relevant 
     to the agency's proposal or refusal; and
       ``(6) a statement that the parents of a child with a 
     disability have protection under the procedural safeguards of 
     this title and, if this notice is not an initial referral for 
     evaluation, the means by which a copy of a description of the 
     procedural safeguards can be obtained.
       ``(d) 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 for evaluation;
       ``(B) upon each notification of an individualized education 
     program meeting and upon reevaluation of the child; and
       ``(C) upon registration of a complaint under subsection 
     (b)(6).
       ``(2) Contents.--The procedural safeguards notice shall 
     include a full explanation of the procedural safeguards 
     written in the native language of the parents, unless 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;
       ``(J) due process hearings, including requirements for 
     disclosure of evaluation results and recommendations;
       ``(K) State-level appeals (if applicable in that State);
       ``(L) civil actions; and
       ``(M) attorney's fees.
       ``(e) Mediation.--
       ``(1) In general.--Any State educational agency or local 
     educational agency that receives assistance under this part 
     shall ensure that procedures are established and implemented 
     to allow parties to disputes involving the provision of free 
     appropriate public education to children with disabilities by 
     any such State educational agency or local educational agency 
     to resolve such disputes through a mediation process.
       ``(2) Requirements.--Such procedures shall meet the 
     following requirements:
       ``(A) The procedures shall ensure that the mediation 
     process--
       ``(i) is voluntary on the part of the parents and may be 
     terminated by either party after a good faith effort has been 
     made by the party terminating the mediation process; and
       ``(ii) is conducted by a qualified and impartial mediator 
     who is trained in effective mediation techniques.
       ``(B) 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.
       ``(C) The State shall bear the cost of the mediation 
     process.
       ``(D) 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.
       ``(E) An agreement reached by the parties to the dispute in 
     the mediation process shall be set forth in a written 
     mediation agreement.
       ``(F) 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.
       ``(G) The State shall determine whether or not attorneys 
     may attend or otherwise participate in the mediation process 
     after offering the opportunity for parents and 
     representatives of school districts to participate in the 
     mediation process prior to any due process filing without 
     attorneys present.
       ``(f) Impartial Due Process Hearing.--
       ``(1) In general.--Whenever a complaint has been received 
     under section 614(d)(3)(B), or subsection (b)(6) or (k) of 
     this section, the parents involved in such complaint shall 
     have an opportunity for an impartial due process hearing 
     which shall be conducted by the State educational agency or 
     by the local educational agency, as determined by State law 
     or by the State educational agency.
       ``(2) Disclosure of evaluations and recommendations.--
       ``(A) In general.--At least 10 school days prior to a 
     hearing conducted pursuant to paragraph (1), each party shall 
     disclose to all other parties all evaluations and 
     recommendations based on the offering party's evaluations 
     which the party intends to use at the hearing.
       ``(B) Prohibition.--Any party which fails to meet the 
     requirement of subparagraph (A) shall be barred from 
     introducing such evaluations and recommendations at such 
     hearing.
       ``(3) Limitation on conduct of hearing.--A hearing 
     conducted pursuant to paragraph (1) may not be conducted by 
     an employee of the State educational agency or the local 
     educational agency involved in the education or care of the 
     child.
       ``(4) Additional requirements with respect to hearings for 
     certain children with disabilities.--A hearing conducted 
     pursuant to paragraph (1) that is based upon a complaint 
     received under section 614(d)(3)(B) shall, in addition to the 
     requirements contained in this subsection, comply with the 
     following additional requirements:
       ``(A) In determining whether or not the decision by the IEP 
     Team to change the placement of the child is justified and 
     appropriate, the hearing officer shall, at a minimum, review 
     the information under clause (iii) of such section.
       ``(B) The child shall remain in the current educational 
     placement of the child until the hearing officer reaches a 
     final decision under this subsection.
       ``(C) The hearing officer shall make a determination of 
     findings and reach a final decision not later than 20 days 
     after the first day of the hearing, or, at the discretion of 
     the hearing officer, not later than 30 days after such first 
     day of the hearing.
       ``(D) The placement of the child, including the placement 
     of the child during any due process or judicial proceeding, 
     shall be determined in accordance with the final decision of 
     the hearing officer under this subsection, unless the parents 
     and the State or local educational agency agree otherwise.
       ``(g) Appeal.--If the hearing required by subsection (f) is 
     conducted by a local educational agency, any party aggrieved 
     by the findings and decision rendered in such a hearing may 
     appeal such findings and decision to the State educational 
     agency. Such agency shall conduct an impartial review of such 
     decision. The officer conducting such review shall make an 
     independent decision upon completion of such review.
       ``(h) Safeguards.--Any party to a hearing conducted 
     pursuant to subsection (f), or an appeal conducted pursuant 
     to subsection (g), shall be accorded--
       ``(1) the right to be accompanied and advised by counsel 
     and by individuals with special knowledge or training with 
     respect to the problems of children with disabilities;
       ``(2) the right to present evidence and confront, cross-
     examine, and compel the attendance of witnesses;
       ``(3) the right to a written, or, at the option of the 
     parents, electronic verbatim record of such hearing; and
       ``(4) the right to written, or, at the option of the 
     parents, electronic findings of fact and decisions (which 
     findings and decisions shall be made available to the public 
     consistent with the requirements of section 617(c) (relating 
     to the confidentiality of data, information, and records) and 
     shall also be transmitted to the advisory panel established 
     pursuant to section 612(a)(18)).
       ``(i) Administrative Procedures.--
       ``(1) In general.--A decision made in a hearing conducted 
     pursuant to subsection (f) shall be final, except that any 
     party involved in such hearing may appeal such decision under 
     the provisions of subsection (g) and paragraph (2) of this 
     subsection.
       ``(2) Right to bring civil action.--
       ``(A) In general.--Any party aggrieved by the findings and 
     decision made under subsection (f) who does not have the 
     right to an appeal under subsection (g), and any party 
     aggrieved by the findings and decision under this subsection, 
     shall have the right to bring a civil action with respect to 
     the complaint presented pursuant to this section, which 
     action may be brought in any State court of competent 
     jurisdiction or in a district court of the United States 
     without regard to the amount in controversy.
       ``(B) Additional requirements.--In any action brought under 
     this paragraph the court--
       ``(i) shall receive the records of the administrative 
     proceedings;
       ``(ii) shall hear additional evidence at the request of a 
     party; and
       ``(iii) basing its decision on the preponderance of the 
     evidence, shall grant such relief as the court determines is 
     appropriate.
       ``(3) Jurisdiction of district courts; attorneys' fees.--
       ``(A) In general.--The district courts of the United States 
     shall have jurisdiction of actions brought under this section 
     without regard to the amount in controversy.
       ``(B) Award of attorneys' fees.--In any action or 
     proceeding brought under this section, the court, in its 
     discretion, may award reasonable attorneys' fees as part of 
     the costs to the parents of a child or youth with a 
     disability who is the prevailing party.
       ``(C) Determination of amount of attorneys' fees.--Fees 
     awarded under this paragraph shall be based on rates 
     prevailing in the community in which the action or proceeding 
     arose for the kind and quality of services furnished. No 
     bonus or multiplier may be used in calculating the fees 
     awarded under this subsection.
       ``(D) Prohibition of attorneys' fees and related costs for 
     certain services.--(i) Attorneys' fees may not be awarded and 
     related costs may not be reimbursed in any action or 
     proceeding under this subsection for services performed 
     subsequent to the time of a written offer of settlement to a 
     parent if--
       ``(I) the offer is made within the time prescribed by Rule 
     68 of the Federal Rules of Civil Procedure or, in the case of 
     an administrative proceeding, at any time more than ten days 
     before the proceeding begins;

[[Page H6065]]

       ``(II) the offer is not accepted within 10 days; and
       ``(III) the court or administrative hearing officer finds 
     that the relief finally obtained by the parents is not more 
     favorable to the parents than the offer of settlement.
       ``(ii) Attorneys' fees may not be awarded relating to any 
     meeting of the IEP Team unless such meeting is convened as a 
     result of a judicial action or proceeding.
       ``(E) Exception to prohibition on attorneys' fees and 
     related costs.--Notwithstanding subparagraph (D), an award of 
     attorneys' fees and related costs may be made to a parent who 
     is the prevailing party and who was substantially justified 
     in rejecting the settlement offer.
       ``(F) Reduction in amount of attorneys' fees.--Except as 
     provided in subparagraph (G), whenever the court finds that--
       ``(i) the parent, during the course of the action or 
     proceeding, unreasonably protracted the final resolution of 
     the controversy;
       ``(ii) the amount of the attorneys' fees otherwise 
     authorized to be awarded unreasonably exceeds the hourly rate 
     prevailing in the community for similar services by attorneys 
     of reasonably comparable skill and experience;
       ``(iii) the time spent and legal services furnished were 
     excessive considering the nature of the action or proceeding;
       ``(iv) the attorney representing the parent did not provide 
     to the school district the appropriate information in the due 
     process complaint in accordance with subsection (b)(7); or
       ``(v) the amount of attorneys' fees requested is not 
     consistent with the extent of the success of the parents;

     the court shall reduce, accordingly, the amount of the 
     attorneys' fees awarded under this subsection.
       ``(G) Exception to reduction in amount of attorneys' 
     fees.--The provisions of subparagraph (F) shall not apply in 
     any action or proceeding if the court finds that the State or 
     local educational agency unreasonably protracted the final 
     resolution of the action or proceeding or there was a 
     violation of this section.
       ``(j) Maintenance of Current Educational Placement.--Except 
     as provided in subsection (k), during the pendency of any 
     proceedings conducted pursuant to this section, unless the 
     State or local educational agency and the parents otherwise 
     agree, the child shall remain in the then current educational 
     placement of such child, or, if applying for initial 
     admission to a public school, shall, with the consent of the 
     parents, be placed in the public school program until all 
     such proceedings have been completed.
       ``(k) Placement in Alternative Educational Setting.--
       ``(1) Authority of school personnel.--School personnel 
     under this section may, to the same extent as a court, order 
     a change in the placement of a child with a disability--
       ``(A) 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); and
       ``(B) to an appropriate interim alternative educational 
     setting for the same amount of time that a child without a 
     disability would be subject to discipline, but for not more 
     than an additional 45 school days if--
       ``(i) the child carries a weapon to school or to a school 
     function under the jurisdiction of a State or a local 
     educational agency;
       ``(ii) the child possesses or uses illegal drugs or sells 
     or solicits the sale of medications or illegal drugs while at 
     school or a school function under the jurisdiction of a State 
     or local educational agency; or
       ``(iii) the child causes serious injury while at school or 
     at a school function under the jurisdiction of a State or a 
     local educational agency.
       ``(2) Authority of hearing officer.--A hearing officer 
     under this section may, to the same extent as a court, order 
     a change in the placement of a child with a disability to an 
     appropriate interim alternative educational setting for not 
     more than 45 school days if--
       ``(A) the maintenance of the current placement of such 
     child is substantially likely to result in injury to the 
     child or to others; and
       ``(B) the hearing officer--
       ``(i) determines that the public agency has demonstrated by 
     substantial evidence that the requirement of subparagraph (A) 
     has been met;
       ``(ii) considers the appropriateness of the child's current 
     placement; and
       ``(iii) considers whether the public agency has made 
     reasonable efforts to minimize the risk of harm including the 
     use of supplementary aids and services.
       ``(3) Determination of setting.--The alternative 
     educational setting described in paragraph (1) or paragraph 
     (2) shall be determined by the individualized education 
     program team.
       ``(4) Manifestation determination review.--
       ``(A) In general.--If a change in placement or disciplinary 
     proceeding, including expulsion, is contemplated as a result 
     of an action described in paragraph (1) or paragraph (2)--
       ``(i) not later than 3 school days after the date on which 
     such action has been taken the parents shall be notified of 
     such action; and
       ``(ii) not later than 15 school days after the date on 
     which such action has been taken a review shall be conducted 
     of the relationship between the child's disability and the 
     behavior described in paragraph (1).
       ``(B) Individuals to carry out review.--A review described 
     in subparagraph (A) shall be conducted by the IEP Team and 
     other qualified personnel.
       ``(C) Conduct of review.--
       ``(i) In general.--In carrying out a review described in 
     subparagraph (A), the individuals described in subparagraph 
     (B) shall consider appropriate factors, including--

       ``(I) the appropriateness of the child's placement;
       ``(II) the consistency of the implementation of the child's 
     entire IEP, including the technical soundness of the behavior 
     strategies used;
       ``(III) evaluation and diagnostic results, which may 
     include any such results supplied by the parents or guardian 
     of the child; and
       ``(IV) observations of the child.

       ``(ii) Additional requirements.--The IEP Team may determine 
     that the behavior of the child was not a manifestation of 
     such child's disability only if the IEP Team first determines 
     that the disability--

       ``(I) did not impair the ability of the child to understand 
     the impact and consequences of the behavior; and
       ``(II) did not impair the ability of the child to control 
     the behavior.

       ``(5) Determination that behavior was manifestation of 
     disability.--If the result of the review described in 
     paragraph (4) is a determination that the behavior of the 
     child with a disability was a manifestation of such child's 
     disability and the parents of such child agree with such 
     determination, the educational placement of such child may be 
     changed. If the parents do not agree with such determination 
     or with such changed educational placement, an immediate 
     appeal may be made to a hearing officer to determine whether 
     the child's placement should be changed. Any party aggrieved 
     by the determination of the hearing officer may initiate a 
     due process hearing as described in subsection (f).
       ``(6) Determination that behavior was not manifestation of 
     disability.--
       ``(A) In general.--If the result of the review described in 
     paragraph (4) is a determination that the behavior of the 
     child with a disability was not a manifestation of such 
     child's disability, the relevant disciplinary procedures 
     applicable to children without disabilities may be applied in 
     the same manner in which they would be applied to children 
     without disabilities. If the parents do not agree with such 
     application, a due process hearing, as described in 
     subsection (f), may be initiated. Any determination under 
     paragraph (4) that a child's behavior was not a manifestation 
     of a disability shall be reviewed by a hearing officer under 
     subsection (f), whether or not the child's parents request a 
     hearing, before educational services to the child may be 
     terminated under this paragraph. During the pendency of such 
     due process procedures, the child shall continue to receive 
     educational services in the alternative educational setting.
       ``(B) Special rule.--Where application of the relevant 
     disciplinary procedures in subparagraph (A) would result in 
     the expulsion of the child without the receipt of educational 
     services, the child may be expelled only if--
       ``(i) the child carries a weapon to school or to a school 
     function under the jurisdiction of a State or local 
     educational agency; or
       ``(ii) the child possesses or uses illegal drugs or sells 
     or solicits the sale of medications or illegal drugs while at 
     school or a school function under the jurisdiction of a State 
     or local educational agency.
       ``(7) Expedited hearing.--The State or local educational 
     agency shall arrange for an expedited hearing in any case 
     described in this subsection when requested by the parent.
       ``(8) Additional requirements.--
       ``(A) Maintenance of alternative educational setting.-- If 
     the parent of a child described in this section requests a 
     hearing pursuant to subsection (f), the child shall remain in 
     the alternative educational setting in which such child was 
     placed during the pendency of any proceedings under this 
     subsection, unless the parents and the State or local 
     educational agency agree otherwise.
       ``(B) Protections for children not yet eligible for special 
     education and related services.--
       ``(i) 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 violated any 
     rule or code of conduct of the local educational agency, 
     including any behavior described in paragraph (1), may assert 
     any of the protections provided for in this part if the local 
     educational agency had knowledge (as determined in accordance 
     with this subparagraph) that the child was a child with a 
     disability before the behavior that precipitated the 
     disciplinary action occurred.
       ``(ii) Basis of knowledge.--A local educational agency 
     shall be deemed to have knowledge that a child is a child 
     with a disability if--

       ``(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 subclause) to personnel of the appropriate educational 
     agency that the child is in need of special education and 
     related services;
       ``(II) the behavior of the child demonstrates the need for 
     such services;

[[Page H6066]]

       ``(III) the parent of the child has requested an evaluation 
     of the child pursuant to section 614; or
       ``(IV) the teacher of the child, or other personnel of the 
     local educational agency, has expressed concern about the 
     behavior of the child to the director of special education of 
     such agency or to other personnel of the agency.

       ``(iii) 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 clause (ii)) prior to taking disciplinary 
     measures against the child, the child may be subjected to the 
     same disciplinary measures as measures applied to children 
     without disabilities, who engaged in comparable behaviors 
     consistent with paragraph (2).
       ``(II) Limitations.--If a request is made for an evaluation 
     of a child during the time period in which the child is 
     subjected to disciplinary measures under paragraph (1), the 
     evaluation shall be conducted in an expedited manner. If the 
     child is determined to be a child with a disability, taking 
     into consideration information from the evaluation conducted 
     by the agency and information provided by the parents, the 
     agency shall provide special education and related services 
     in accordance with the provisions of this part, except that, 
     pending the results of the evaluation, the child shall remain 
     in the educational placement determined by school 
     authorities.

       ``(C) Referral to and action by law enforcement and 
     judicial authorities.--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.
       ``(9) Definitions.--For purposes of this subsection, the 
     following definitions apply:
       ``(A) Illegal drug.--The term `illegal drug'--
       ``(i) means a controlled substance within the meaning of 
     any of paragraphs (1) through (5) of section 202 of the 
     Controlled Substances Act (21 U.S.C 812); but
       ``(ii) does not include a controlled substance within the 
     meaning of paragraphs (1) through (5) of section 202 of such 
     Act if--

       ``(I) such controlled substance is legally possessed or 
     used under the supervision of a licensed health care 
     professional; or
       ``(II) such controlled substance is legally possessed or 
     used under any other authority under such Act or under any 
     other provision of Federal law.

       ``(B) Serious injury.--The term `serious injury' means an 
     injury that involves substantial risk of death, extreme 
     physical pain, obvious or protracted disfigurement, loss of 
     the use of bodily members or organs, broken bones, or 
     significant endangerment to an individual's emotional health 
     or safety that is the result of a physical or verbal assault.
       ``(C) Weapon.--The term `weapon' has the meaning given the 
     term `dangerous weapon' under paragraph (2) of the first 
     subsection (g) of section 930 of title 18, United States 
     Code.
       ``(l) Rule of Construction.--Nothing in this part shall be 
     construed to restrict or limit the rights, procedures, and 
     remedies available under the Constitution, the Americans with 
     Disabilities Act, title V of the Rehabilitation Act of 1973, 
     or other Federal laws protecting the rights of children with 
     disabilities, except that before the filing of a civil action 
     under such laws seeking relief that is also available under 
     this part, the procedures under subsections (f) and (g) shall 
     be exhausted to the same extent as would be required had the 
     action been brought under this part.
       ``(m) Transfer of Parental Rights at Age of Majority.--
       ``(1) In general.--A State that receives amounts from a 
     grant under this part may provide that, when a child with a 
     disability reaches the age of majority under State law 
     (except for a child with a disability who has been determined 
     to be incompetent under State law)--
       ``(A) the 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 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 another appropriate individual, to 
     represent the educational interests of the child throughout 
     the period of eligibility of the child under this part.

     ``SEC. 616. WITHHOLDING AND JUDICIAL REVIEW.

       ``(a) Withholding of Payments.--
       ``(1) In general.--Whenever the Secretary, after reasonable 
     notice and opportunity for hearing to the State educational 
     agency involved (and to any local educational agency or State 
     agency affected by any failure described in subparagraph 
     (B)), finds--
       ``(A) that there has been a failure by the State to comply 
     substantially with any provision of this part; or
       ``(B) that there is a failure to comply with any condition 
     of a local educational agency's or State agency's eligibility 
     under this part;

     the Secretary shall, after notifying the State educational 
     agency, withhold any further payments to the State under this 
     part.
       ``(2) Nature of withholding.--If the Secretary withholds 
     further payments under paragraph (1), the Secretary may 
     determine that such withholding will be limited to programs 
     or projects, or portions thereof, affected by the failure, or 
     that the State educational agency shall not make further 
     payments under this part to specified local educational 
     agencies or State agencies affected by the failure. Until the 
     Secretary is satisfied that there is no longer any failure to 
     comply with the provisions of this part, as specified in 
     subparagraph (A) or (B) of paragraph (1), no further payments 
     shall be made to the State under this part, or payments by 
     the State educational agency under this part shall be limited 
     to local educational agencies and State agencies whose 
     actions did not cause or were not involved in the failure, as 
     the case may be. Any State educational agency, State agency, 
     or local educational agency that has received notice under 
     paragraph (1) shall, by means of a public notice, take such 
     measures as may be necessary to bring the pendency of an 
     action pursuant to this subsection to the attention of the 
     public within the jurisdiction of such agency.
       ``(b) Judicial Review.--
       ``(1) In general.--If any State is dissatisfied with the 
     Secretary's final action with respect to the eligibility of 
     the State under section 612, such State may, not later than 
     60 days after notice of such action, file with the United 
     States court of appeals for the circuit in which such State 
     is located a petition for review of that action. A copy of 
     the petition shall be forthwith transmitted by the clerk of 
     the court to the Secretary. The Secretary thereupon shall 
     file in the court the record of the proceedings upon which 
     the Secretary's action was based, as provided in section 2112 
     of title 28, United States Code.
       ``(2) Jurisdiction; review by united states supreme 
     court.--Upon the filing of such petition, the court shall 
     have jurisdiction to affirm the action of the Secretary or to 
     set it aside, in whole or in part. The judgment of the court 
     shall be subject to review by the Supreme Court of the United 
     States upon certiorari or certification as provided in 
     section 1254 of title 28, United States Code.
       ``(3) Standard of review.--The findings of fact by the 
     Secretary, if supported by substantial evidence, shall be 
     conclusive, but the court, for good cause shown, may remand 
     the case to the Secretary to take further evidence, and the 
     Secretary may thereupon make new or modified findings of fact 
     and may modify the Secretary's previous action, and shall 
     file in the court the record of the further proceedings. Such 
     new or modified findings of fact shall likewise be conclusive 
     if supported by substantial evidence.

     ``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) Rules and Regulations.--In carrying out the 
     provisions of this part, the Secretary shall issue 
     regulations under this Act only to the extent that such 
     regulations are necessary to ensure that there is compliance 
     with the specific requirements of this Act.
       ``(c) Confidentiality.--The Secretary shall take 
     appropriate action, in accordance with the provisions of 
     section 444 of the General Education Provisions Act (20 
     U.S.C. 1232g), to assure the protection of the 
     confidentiality of any personally identifiable data, 
     information, and records collected or maintained by the 
     Secretary and by State and local educational agencies 
     pursuant to the provisions of this part.
       ``(d) Personnel.--The Secretary is authorized to hire 
     qualified personnel necessary to conduct data collection and 
     evaluation activities authorized by subsection (a) and 
     section 618 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.

     ``SEC. 618. PROGRAM INFORMATION.

       ``(a) In General.--Each State that receives assistance 
     under this part, and the Secretary of the Interior, shall 
     provide data, which may be based on a sampling of data, each 
     year to the Secretary on--
       ``(1) the number of children, categorized by race, 
     ethnicity, gender, and disability, who are receiving--
       ``(A) a free appropriate public education; or
       ``(B) early intervention services because--
       ``(i) such children have developmental delays; or
       ``(ii) such children have a diagnosed physical or mental 
     condition that has a high probability of resulting in 
     developmental delay;

[[Page H6067]]

       ``(2) the progress of the State, and of the children with 
     disabilities in the State, toward meeting the goals 
     established under section 612(14);
       ``(3) the types of early intervention services provided to 
     such children;
       ``(4) the number of children with disabilities, categorized 
     by race, ethnicity, gender, and disability--
       ``(A) participating in regular education programs;
       ``(B) in separate classes, separate schools or facilities, 
     or public or private residential facilities;
       ``(C) who have been otherwise removed from the regular 
     education environment; and
       ``(D) in various early intervention settings;
       ``(5) for each year of age from age 14 to 21, the number of 
     children with disabilities, categorized by race, ethnicity, 
     gender, and disability, who, because of program completion or 
     for other reasons, stopped receiving special education, and 
     the reasons why such children stopped receiving such special 
     education;
       ``(6)(A) the number of children with disabilities, 
     categorized by race, ethnicity, gender, and disability, who, 
     under section 615(k), are removed to an interim alternative 
     educational setting;
       ``(B) the acts or items precipitating such removals; and
       ``(C) the number of children with disabilities who are 
     expelled from school without receiving services; and
       ``(7) any other information required by the Secretary.
       ``(b) Disproportionality.--
       ``(1) In general.--Each State that receives assistance 
     under this part, and the Secretary of the Interior, shall 
     provide for the collection and examination of data to 
     determine if significant disproportionality based on race is 
     occurring in the State with respect to--
       ``(A) the identification of children as children with 
     disabilities, including the identification of children as 
     children with disabilities in accordance with a particular 
     impairment described in section 602(3); and
       ``(B) the placement in particular educational settings of 
     such children.
       ``(2) Review and revision of policies, practices, and 
     procedures.--In the case of a determination of significant 
     disproportionality with respect to the identification of 
     children as children with disabilities, or the placement in 
     particular educational settings of such children, in 
     accordance with paragraph (1), the State or the Secretary of 
     the Interior, as the case may be, shall provide for the 
     review and, if appropriate, revision of the policies, 
     procedures, and practices used in such identification or 
     placement to ensure that such policies, procedures, and 
     practices comply with the requirements of this Act.

     ``SEC. 619. PRESCHOOL GRANTS.

       ``(a) In General.--The Secretary shall provide grants under 
     this section to assist States to provide special education 
     and related services, in accordance with this part--
       ``(1) to children with disabilities aged 3 to 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 to 5, inclusive, 
     residing in the State.
       ``(c) Amount.--
       ``(1) In general.--From the amount appropriated for any 
     fiscal year pursuant to the authorization of appropriations 
     under subsection (m), the Secretary shall allot to each 
     eligible State the amount it received for fiscal year 1996 
     under this section (as this section was in effect on the day 
     before the date of the enactment of the IDEA Improvement Act 
     of 1996).
       ``(2) Insufficient funds.--
       ``(A) In general.--If the amount appropriated under 
     subsection (m) for a fiscal year is insufficient to make the 
     full allotments described in paragraph (1), the Secretary 
     shall--
       ``(i) first, reduce the allocation to any State whose 
     number of children aged 3 to 5, inclusive, is less than the 
     number of such children in such State in fiscal year 1995 by 
     the same percentage by which such number of children declined 
     from the number of children in fiscal year 1995; and
       ``(ii) second, if necessary, ratably reduce the allocations 
     of all States, including those allocations reduced under 
     clause (i).
       ``(B) Availability of additional funds.--If additional 
     funds become available to make allocations under this 
     section, the allocations that were reduced under subparagraph 
     (A) shall be increased on the same basis as such allocations 
     were reduced.
       ``(d) Allotment of Remaining Funds.--After making 
     allotments under subsection (c), the Secretary shall allot 
     any remaining funds to eligible States on the basis of their 
     relative population of children aged 3 to 5, inclusive.
       ``(e) Special Rule With Respect to Puerto Rico.--
     Notwithstanding any other provision of this subsection, the 
     amount allotted to Puerto Rico for a fiscal year shall bear 
     the same or lower proportion to the amount appropriated 
     pursuant to subsection (m) as the amount received by Puerto 
     Rico under this section for fiscal year 1996 bears to the 
     aggregate of the amounts received by all States under this 
     section for fiscal year 1996.
       ``(f) Determination of Population Figures.--For the purpose 
     of providing grants under this section, the Secretary shall 
     use the most recent population data that are available and 
     satisfactory to the Secretary.
       ``(g) Reservation for State Activities.--A State may 
     reserve not more than 25 percent of the amount allotted to 
     the State under this section for a fiscal year for 
     administration and other State-level activities in accordance 
     with subsections (h) and (i).
       ``(h) State Administration.--
       ``(1) In general.--A State may use up to 3 percent of the 
     amount allotted to the State under this section for a fiscal 
     year 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.
       ``(2) Use of amounts for administration of part c.--If the 
     State educational agency is the lead agency for the State 
     under part C, amounts described in paragraph (1) may also be 
     used for the administration of such part C.
       ``(i) Other State-Level Activities.--Each State shall use 
     any funds it retains under subsection (g) and does not use 
     for administration under subsection (h)--
       ``(1) for support services (including establishing and 
     implementing the mediation process required by section 
     615(d)), 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 to 5, inclusive;
       ``(2) for direct services for children eligible for 
     services under this section;
       ``(3) to develop a State improvement plan under part D;
       ``(4) for activities at the State and local levels to meet 
     the performance goals established by the State under section 
     612(a)(14) and to support implementation of the State 
     improvement plan under part D if the State receives funds 
     under that part; or
       ``(5) 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.
       ``(j) Subgrants to Local Educational Agencies.--
       ``(1) Requirement to make subgrants.--Each State that 
     receives a grant under this section for any fiscal year shall 
     distribute at least 75 percent of the grant funds to local 
     educational agencies in the State, and to State agencies that 
     received funds under section 614A(a) (as such section was in 
     effect on the day before the date of the enactment of the 
     IDEA Improvement Act of 1996) for fiscal year 1996, that have 
     established their eligibility under section 613.
       ``(2) Methods of distribution.--A State may distribute 
     funds under paragraph (1) on the basis of--
       ``(A) total school age population;
       ``(B) school enrollment;
       ``(C) numbers of children with disabilities aged 3 to 5, 
     inclusive, receiving a free appropriate public education;
       ``(D) allocations for previous fiscal years;
       ``(E) any two or more of the factors described in 
     subparagraphs (A) through (D); or
       ``(F) poverty, in combination with one or more of the 
     factors described in subparagraphs (A) through (D).
       ``(k) 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.
       ``(l) Prohibition on Consolidation of Grants for 
     Territories.--The provisions of section 501 of Public Law 95-
     134 (48 U.S.C. 1469a; relating to the consolidation of one or 
     more grants provided to certain territories) shall not apply 
     with respect to amounts provided to a territory under a grant 
     under this section.
       ``(m) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated to the Secretary such sums as may be necessary.

            ``PART C--INFANTS AND TODDLERS WITH DISABILITIES

     ``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 therefore the policy of the United 
     States to provide financial assistance to States--

[[Page H6068]]

       ``(1) to develop and implement a statewide, comprehensive, 
     coordinated, multidisciplinary, interagency system of 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); 
     and
       ``(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.

     ``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 which--
       ``(A) are provided under public supervision;
       ``(B) are provided at no cost except where Federal or State 
     law provides for a system of payments by families, including 
     a schedule of sliding fees;
       ``(C) are designed to meet the developmental needs of an 
     infant or toddler with a disability in any one or more of the 
     following areas--
       ``(i) physical development;
       ``(ii) cognitive development;
       ``(iii) communication development;
       ``(iv) social or emotional development; or
       ``(v) adaptive development;
       ``(D) meet the standards of the State in which they are 
     provided, including the requirements of this part;
       ``(E) include--
       ``(i) family training, counseling, and home visits;
       ``(ii) special instruction;
       ``(iii) speech-language pathology and audiology services;
       ``(iv) occupational therapy;
       ``(v) physical therapy;
       ``(vi) psychological services;
       ``(vii) service coordination services;
       ``(viii) medical services only for diagnostic or evaluation 
     purposes;
       ``(ix) early identification, screening, and assessment 
     services;
       ``(x) health services necessary to enable the infant or 
     toddler to benefit from the other early intervention 
     services;
       ``(xi) social work services;
       ``(xii) vision services;
       ``(xiii) assistive technology devices and assistive 
     technology services; and
       ``(xiv) transportation and related costs that are necessary 
     to enable an infant or toddler and the infant's or toddler's 
     family to receive another service described in this 
     paragraph;
       ``(F) are provided by qualified personnel, including--
       ``(i) special educators;
       ``(ii) speech-language pathologists and audiologists;
       ``(iii) occupational therapists;
       ``(iv) physical therapists;
       ``(v) psychologists;
       ``(vi) social workers;
       ``(vii) nurses;
       ``(viii) nutritionists;
       ``(ix) family therapists;
       ``(x) orientation and mobility specialists; and
       ``(xi) pediatricians and other physicians;
       ``(G) to the maximum extent appropriate, are provided in 
     natural environments, including the home, and community 
     settings in which children without disabilities participate; 
     and
       ``(H) are provided in conformity with an individualized 
     family service plan adopted in accordance with section 636.
       ``(5) Infant or toddler with a disability.--The term 
     `infant or toddler with a disability'--
       ``(A) means an individual under 3 years of age who needs 
     early intervention services because the individual--
       ``(i) is experiencing developmental delays, as measured by 
     appropriate diagnostic instruments and procedures in one or 
     more of the areas of cognitive development, physical 
     development, communication development, social or emotional 
     development, and adaptive development; or
       ``(ii) has a diagnosed physical or mental condition which 
     has a high probability of resulting in developmental delay; 
     and
       ``(B) may also include, at a State's discretion, at-risk 
     infants and toddlers.

     ``SEC. 633. GENERAL AUTHORITY.

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

     ``SEC. 634. ELIGIBILITY.

       ``In order to be eligible for a grant under section 633, a 
     State shall demonstrate to the Secretary that the State--
       ``(1) has adopted a policy that appropriate early 
     intervention services are available to all infants and 
     toddlers with disabilities in the State and their families, 
     including Indian infants and toddlers with disabilities and 
     their families residing on a reservation geographically 
     located in the State; 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 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.
       ``(3) 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.
       ``(4) 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.
       ``(5) 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 (8) to all 
     primary referral sources, especially hospitals and 
     physicians, of information for parents on the availability of 
     early intervention services, and procedures for determining 
     the extent to which such sources disseminate such information 
     to parents of infants and toddlers.
       ``(6) A central directory which includes information on 
     early intervention services, resources, and experts available 
     in the State and research and demonstration projects being 
     conducted in the State.
       ``(7) 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 
     is consistent with the comprehensive system of personnel 
     development described in section 612(a)(13) (or with the 
     personnel development requirements for State improvement 
     plans under section 683) and may include--
       ``(A) implementing innovative strategies and activities for 
     the recruitment and retention of early education service 
     providers;
       ``(B) promoting the preparation of early intervention 
     providers who are fully and appropriately qualified to 
     provide early intervention services under this part;
       ``(C) training personnel to work in rural and inner city 
     areas; and
       ``(D) training personnel to coordinate transition services 
     for infants and toddlers served under this part from an early 
     intervention program under this part to preschool or other 
     appropriate services.
       ``(8) 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--
       ``(A) the establishment and maintenance of standards which 
     are consistent with any State approved or recognized 
     certification, licensing, registration, or other comparable 
     requirements which apply to the area in which such personnel 
     are providing early intervention services; and
       ``(B) subject to subsection (b), to the extent such 
     standards are not based on the highest requirements in the 
     State applicable to a specific profession or discipline, the 
     steps the State is taking to require the retraining or hiring 
     of personnel that meet appropriate professional requirements 
     in the State;

     except that nothing in this part, including this paragraph, 
     prohibits the use of paraprofessionals and assistants who are 
     appropriately trained and supervised, in accordance with 
     State law, regulations, or written policy, to assist in the 
     provision of early intervention services to infants and 
     toddlers with disabilities under this part.
       ``(9) 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)(1) to the appropriate 
     agencies;
       ``(D) the development of procedures to ensure that services 
     are provided to infants and toddlers 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

[[Page H6069]]

       ``(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.
       ``(10) 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.
       ``(11) A procedure for securing timely reimbursement of 
     funds used under this part in accordance with section 640(a).
       ``(12) Procedural safeguards with respect to programs under 
     this part, as required by section 639.
       ``(13) A system for compiling data requested by the 
     Secretary under section 618 that relates to this part.
       ``(14) A State interagency coordinating council that meets 
     the requirements of section 641.
       ``(15) 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 such infant or toddler in a natural 
     environment.
       ``(b) Modification of Personnel Requirement.--If a State 
     determines that the requirement of subsection (a)(8)(B) would 
     significantly inhibit the ability of the State to contract 
     with, or employ, an appropriate number and types of personnel 
     to provide early intervention services to infants and 
     toddlers with disabilities in a geographic region, the State 
     may, subject to public notice and comment, temporarily 
     suspend the requirement for the region, in a manner 
     consistent with State law and for a period not exceeding 3 
     years, with respect to the most qualified available 
     individuals in shortage areas who are making annual progress 
     in applicable coursework.

     ``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).
       ``(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 such 
     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 outcomes expected to be 
     achieved for the infant or toddler and the family, and the 
     criteria, procedures, and timelines used to determine the 
     degree to which progress toward achieving the outcomes is 
     being made and whether modifications or revisions of the 
     outcomes or services are necessary;
       ``(4) a statement of specific early intervention services 
     necessary to meet the unique needs of the infant or toddler 
     and the family, including the frequency, intensity, and 
     method of delivering services;
       ``(5) a statement of the natural environments in which 
     early intervention services shall appropriately be provided, 
     including a justification of the extent, if any, to which 
     such services will not be provided in a natural environment;
       ``(6) the projected dates for initiation of services and 
     the anticipated duration of such 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; 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 such parents shall be 
     obtained prior to the provision of early intervention 
     services described in such plan. If such parents do not 
     provide such consent with respect to a particular early 
     intervention service, then the early intervention services to 
     which such 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. Such 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 a person responsible for assigning 
     financial responsibility among appropriate agencies;
       ``(3) information demonstrating eligibility of the State 
     under section 634, including--
       ``(A) information demonstrating to the Secretary's 
     satisfaction that the State has in effect the statewide 
     system required by section 633; and
       ``(B) a description of services to be provided to infants 
     and toddlers with disabilities and their families through the 
     system;
       ``(4) a description of the uses for which funds will be 
     expended in accordance with this part;
       ``(5) a description of the procedure used to ensure that 
     resources are made available under this part for all 
     geographic areas within the State;
       ``(6) 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;
       ``(7) 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) 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 such 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 such a child who may not be eligible 
     for such preschool services, with the approval of the family, 
     make reasonable efforts to convene a conference among the 
     lead agency, the family, and providers of other appropriate 
     services for children who are not eligible for preschool 
     services under part B, to discuss the appropriate services 
     that the child may receive;

       ``(B) to review the child's program options for the period 
     from the child's third birthday through the remainder of the 
     school year; and
       ``(C) to establish a transition plan; and
       ``(8) such other information and assurances as the 
     Secretary may reasonably require.
       ``(b) Assurances.--The application described in subsection 
     (a) shall contain the following:
       ``(1) A satisfactory assurance that the State will--
       ``(A) make 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) keep such records and afford such access thereto as 
     the Secretary may find necessary to assure the correctness 
     and verification of such reports and proper disbursement of 
     Federal funds under this part.
       ``(2) A satisfactory assurance that Federal funds made 
     available under section 633 will be used to supplement and 
     increase the level of State and local funds expended for 
     infants and toddlers with disabilities and their families 
     under this part and in no case to supplant such State and 
     local funds.
       ``(3) 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

[[Page H6070]]

     filed under part H (as in effect before the date of the 
     enactment of the IDEA Improvement Act of 1996), 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.

     ``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; and
       ``(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.

     ``SEC. 639. PROCEDURAL SAFEGUARDS.

       ``(a) Minimum Procedures.--The procedural safeguards 
     required to be included in a statewide system under section 
     635(a)(10) shall provide, at a minimum, the following:
       ``(1) The timely administrative resolution of complaints by 
     parents. Any party aggrieved by the findings and decision 
     regarding an administrative complaint shall have the right to 
     bring a civil action with respect to the complaint in any 
     State court of competent jurisdiction or in a district court 
     of the United States without regard to the amount in 
     controversy. In any action brought under this paragraph, the 
     court shall receive the records of the administrative 
     proceedings, shall hear additional evidence at the request of 
     a party, and, basing its decision on the preponderance of the 
     evidence, shall grant such relief as the court determines is 
     appropriate.
       ``(2) The right to confidentiality of personally 
     identifiable information, including the right of parents to 
     written notice of and written consent to the exchange of such 
     information among agencies consistent with Federal and State 
     law.
       ``(3) The right of the parents to determine whether they, 
     their infant or toddler, or other family members will accept 
     or decline any early intervention service under this part in 
     accordance with State law without jeopardizing other early 
     intervention services under this part.
       ``(4) The opportunity for parents to examine records 
     relating to assessment, screening, eligibility 
     determinations, and the development and implementation of the 
     individualized family service plan.
       ``(5) Procedures to protect the rights of the infant or 
     toddler whenever the parents of the child are not known or 
     cannot be found or the child is a ward of the State, 
     including the assignment of an individual (who shall not be 
     an employee of the State or any person, or any employee of a 
     person, providing early intervention services to the infant 
     or toddler or any family member of the infant or toddler) to 
     act as a surrogate for the parents.
       ``(6) Written prior notice to the parents of the infant or 
     toddler with a disability whenever the State agency or 
     service provider proposes to initiate or change or refuses to 
     initiate or change the identification, evaluation, placement, 
     or the provision of appropriate early intervention services 
     to the infant or toddler with a disability.
       ``(7) Procedures designed to assure that the notice 
     required by paragraph (6) fully informs the parents, in the 
     parents' native language, unless it clearly is not feasible 
     to do so, of all procedures available pursuant to this 
     section.
       ``(8) The right of parents to use mediation in accordance 
     with section 615(e), except that--
       ``(A) any reference in such section to a State educational 
     agency shall be considered to be a reference to a State's 
     lead agency established or designated under section 
     635(a)(8);
       ``(B) any reference in such section to a local educational 
     agency shall be considered to be a reference to a local 
     service provider or the State's lead agency under this part, 
     as the case may be; and
       ``(C) any reference in such section to the provision of 
     free appropriate public education to children with 
     disabilities shall be considered to be a reference to the 
     provision of appropriate early intervention services to 
     infants and toddlers with disabilities.
       ``(b) Services During Pendency of Proceedings.--During the 
     pendency of any proceeding or action involving a complaint by 
     the parents of an infant or toddler with a disability, unless 
     the State agency and the parents otherwise agree, the infant 
     or toddler shall continue to receive the appropriate early 
     intervention services currently being provided or, if 
     applying for initial services, shall receive the services not 
     in dispute.

     ``SEC. 640. PAYOR OF LAST RESORT.

       ``(a) Nonsubstitution.--Funds provided under section 643 
     may not be used to satisfy a financial commitment for 
     services which would have been paid for from another public 
     or private source but for the enactment of this part, except 
     that whenever considered necessary to prevent a delay in the 
     receipt of appropriate early intervention services by an 
     infant, toddler, or family in a timely fashion, funds 
     provided under section 643 may be used to pay the provider of 
     services pending reimbursement from the agency which has 
     ultimate responsibility for the payment.
       ``(b) Reduction of Other Benefits.--Nothing in this part 
     shall be construed to permit the State to reduce medical or 
     other assistance available or to alter eligibility under 
     title V of the Social Security Act (relating to maternal and 
     child health) or title XIX of the Social Security Act 
     (relating to medicaid for infants or toddlers with 
     disabilities) within the State.

     ``SEC. 641. STATE INTERAGENCY COORDINATING COUNCIL.

       ``(a) Establishment.--
       ``(1) In general.--A State that desires to receive 
     financial assistance under this part shall establish a State 
     interagency coordinating council.
       ``(2) Appointment.--The council shall be appointed by the 
     Governor. In making appointments to the council, the Governor 
     shall ensure that the membership of the council reasonably 
     represents the population of the State.
       ``(3) Chairperson.--The Governor shall designate a member 
     of the council to serve as the chairperson of the Council, or 
     shall require the council to so designate such a member. Any 
     member of the council who is a representative of the lead 
     agency designated under section 635(b)(8) 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 insurance.--At least one member shall be 
     from the agency responsible for the State governance of 
     insurance, especially in the area of health insurance.
       ``(H) Head start agency.--A representative from a Head 
     Start agency or program in the State.
       ``(I) A representative from a State agency responsible for 
     child care.
       ``(2) Other members.--The council may include other members 
     selected by the Governor, including a representative from the 
     Bureau of Indian Affairs, or where there is no BIA operated 
     or funded school, from the Indian Health Service or the 
     tribe/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 such 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(b)(8) in the performance of the 
     responsibilities set out 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

[[Page H6071]]

       ``(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 
     aged birth to 5, inclusive.
       ``(f) Conflict of Interest.--No member of the council shall 
     cast a vote on any matter which 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, 618, and 620 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)(8);
       ``(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 Territories.--
       ``(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 
     territories, 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 of such children 
     served by all tribes, tribal organizations, or consortia.
       ``(3) Information.--To receive a payment under this 
     paragraph, the tribe, tribal organization, or consortia shall 
     submit such information to the Secretary of the Interior as 
     is needed to determine the amounts to be allocated under 
     paragraph (2).
       ``(4) Use of funds.--The funds received by a tribe, tribal 
     organization, or consortia 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 consortia 
     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 consortia 
     shall make a biennial report to the Secretary of the Interior 
     of activities undertaken under this subsection, including the 
     number of contracts and cooperative agreements entered into, 
     the number of children contacted and receiving services for 
     each year, and the estimated number of children needing 
     services during the 2 years following the year in which the 
     report is made. The Secretary of the Interior shall include a 
     summary of this information on a biennial basis to the 
     Secretary of Education along with such other information as 
     required under section 611(f)(3)(D). 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), 
     (3), and (4), 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 paragraphs 
     (3) and (4), no State shall receive an amount under this 
     section for any fiscal year that is less than the greatest 
     of--
       ``(A) one-half of one percent of the remaining amount 
     described in paragraph (1); or
       ``(B) $500,000.
       ``(3) Special rule for 1997 through 1999.--
       ``(A) In general.--Except as provided in paragraph (4), no 
     State may receive an amount under this section for any of the 
     fiscal years 1997 through 1999 that is less than the sum of 
     the amount such State received for fiscal year 1994 under--
       ``(i) part H (as in effect on the day before the date of 
     the enactment of the IDEA Improvement Act of 1996); and
       ``(ii) subpart 2 of part D of chapter 1 of title I of the 
     Elementary and Secondary Education Act of 1965 (as in effect 
     on the day before the date of the enactment of the Improving 
     America's Schools Act of 1994) for children with disabilities 
     under 3 years of age.
       ``(B) Exception.--If, for fiscal year 1998 or 1999, the 
     number of infants and toddlers in a State, as determined 
     under paragraph (1), is less than the number of infants and 
     toddlers so determined for fiscal year 1994, the amount 
     determined under subparagraph (A) for the State shall be 
     reduced by the same percentage by which the number of such 
     infants and toddlers so declined.
       ``(4) 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 allocations to such States for such year.
       ``(B) Additional funds.--If additional funds become 
     available for making payments under this subsection for a 
     fiscal year, allocations that were reduced under subparagraph 
     (A) shall be increased on the same basis as such allocations 
     were reduced.
       ``(5) 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 such sums as may be necessary 
     for each of the fiscal years 1997 through 2001.

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

     ``SEC. 651. PURPOSE OF PART.

       ``The purpose of this part is to support national, State, 
     and local activities aimed at improving educational, early 
     intervention, and transitional services and opportunities for 
     children with disabilities.

     ``SEC. 652. ELIGIBILITY FOR FINANCIAL ASSISTANCE.

       ``No State, State educational agency, local educational 
     agency, educational service agency, or other public 
     institution or agency may receive a grant, contract, or 
     cooperative agreement under this part which relates 
     exclusively to programs, projects, and activities for 
     children aged 3 to 5, inclusive, unless the State, or, in the 
     case of an agency or institution, the State in which the 
     agency or institution is located, is eligible to receive a 
     grant under section 619.

     ``SEC. 653. COMPREHENSIVE PLAN.

       ``(a) In General.--The Secretary shall develop and 
     implement a comprehensive plan for ongoing activities 
     conducted by the Secretary under this part.
       ``(b) Use of Knowledge in Developing Plan.--To the maximum 
     extent appropriate, the Secretary shall ensure that the plan 
     is based upon the knowledge gained from research on practices 
     that have been proven effective in improving the achievement 
     of children with disabilities.
       ``(c) Consultation.--In developing the plan, the Secretary 
     shall consult the following persons:
       ``(1) Individuals with disabilities.
       ``(2) Parents of children with disabilities.
       ``(3) Representatives of State and local educational 
     agencies and educational service agencies.
       ``(4) Private schools.
       ``(5) Institutions of higher education.
       ``(6) Other Federal agencies.
       ``(7) The National Council on Disability.
       ``(8) National organizations with an interest in, and 
     expertise in, providing services to children with 
     disabilities and their families.
       ``(9) Any other professionals determined appropriate by the 
     Secretary.
       ``(d) Deadline.--The plan shall be developed not later than 
     the date that is 12 months after the date of the enactment of 
     the IDEA Improvement Act of 1996.

[[Page H6072]]

     ``SEC. 654. PEER REVIEW.

       ``(a) In General.--The Secretary shall use a panel of 
     experts who are competent, by virtue of their training, 
     expertise, or experience, to evaluate an application under 
     this part that requests more than $75,000 in Federal 
     financial assistance.
       ``(b) Composition of Panel.--A majority of a panel 
     described in subsection (a) shall be composed of individuals 
     who are not employees of the Federal Government.
       ``(c) Payment of Fees and Expenses of Certain Members.--The 
     Secretary may use available funds appropriated to carry out 
     this part to pay the expenses and fees of panel members who 
     are not employees of the Federal Government.

     ``SEC. 655. ELIGIBLE APPLICANTS.

       ``Except as otherwise provided in this part, the persons 
     who, and the agencies that, may apply for receipt of grants, 
     contracts, or cooperative agreements under this part are the 
     following:
       ``(1) Institutions of higher education.
       ``(2) State educational agencies.
       ``(3) Local educational agencies.
       ``(4) Educational service agencies.
       ``(5) Other public agencies.
       ``(6) Private nonprofit organizations.
       ``(7) Indian tribes and tribal organizations (as defined 
     under section 4 of the Indian Self-Determination and 
     Education Assistance Act).
       ``(8) For-profit organizations.

     ``SEC. 656. APPLICANT AND RECIPIENT RESPONSIBILITIES.

       ``(a) General Requirements on Applicants and Recipients.--
     The Secretary may not make a grant to, or enter into a 
     contract or cooperative agreement with, a person or agency 
     under this part unless--
       ``(1) the person or agency involves individuals with 
     disabilities, and parents of children with disabilities, in 
     planning, implementing, and evaluating activities conducted 
     under the grant, contract, or agreement;
       ``(2) the person or agency, where appropriate, evaluates 
     the potential for replication and widespread adoption of such 
     activities; and
       ``(3) the person or agency prepares their findings and work 
     product in a format useful for a specific audience specified 
     by the Secretary, such as parents, administrators, teachers, 
     early intervention personnel, related services personnel, or 
     individuals with disabilities.
       ``(b) Additional Requirements Imposed at Discretion of 
     Secretary.--The Secretary may require that a person who, or 
     agency that, is awarded a grant, contract, or cooperative 
     agreement under this part--
       ``(1) assume a portion of the cost of carrying out the 
     grant, contract, or agreement;
       ``(2) disseminate the findings and work product of the 
     person or agency; and
       ``(3) collaborate with other such persons and agencies.

     ``SEC. 657. INDIRECT COSTS.

       ``The Secretary--
       ``(1) may not permit any recipient of Federal funds under 
     this part to use more than 25 percent of such funds for 
     indirect costs; and
       ``(2) may further limit the extent to which any such 
     recipient may use such funds for such costs.

     ``SEC. 658. PROGRAM EVALUATION.

       ``The Secretary may use funds appropriated to carry out 
     this part to evaluate any activity carried out under this 
     part.

       ``Subpart 1--National Research and Improvement Activities

     ``SEC. 661. GENERAL AUTHORITY TO MAKE AWARDS.

       ``The Secretary may make grants to, and enter into 
     contracts and cooperative agreements with, eligible entities 
     to carry out research and improvement activities that further 
     the purpose of this part and are consistent with the 
     priorities established under section 662.

     ``SEC. 662. PRIORITIES.

       ``(a) In General.--In making awards under this subpart, the 
     Secretary may, without regard to the rule making procedures 
     under section 553 of title 5, United States Code, limit such 
     awards to, or otherwise give priority to--
       ``(1) projects that address the improvement of the academic 
     performance of children with disabilities;
       ``(2) projects that address one or more--
       ``(A) age ranges;
       ``(B) disabilities;
       ``(C) grades in school;
       ``(D) types of educational placements or early intervention 
     environments;
       ``(E) types of services; or
       ``(F) content areas such as reading;
       ``(3) projects that address the needs of children based on 
     the severity of their disability;
       ``(4) 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) particular types of geographic areas, such as inner-
     city or rural areas; or
       ``(G) institutionalized children in juvenile and adult 
     correctional institutions;
       ``(5) any activity that is expressly authorized in this 
     title;
       ``(6) a large-scale longitudinal study designed to provide 
     information on the long-term impact of education agency 
     disciplinary procedures on children with disabilities;
       ``(7) research and development projects including--
       ``(A) projects that advance knowledge about--
       ``(i) teaching and learning practices, and assessment 
     techniques, instruments, and strategies, including behavioral 
     strategies, that lead to improved results for children with 
     disabilities;
       ``(ii) the developmental and learning characteristics of 
     children with disabilities in a manner that will improve the 
     design and effectiveness of interventions and instruction; or
       ``(iii) the coordination of education with health and 
     social services;
       ``(B) large-scale longitudinal studies designed to produce 
     information on the long-term impact of early intervention and 
     education on results for individuals with disabilities;
       ``(C) model demonstration projects to apply and test 
     research findings in typical service settings to determine 
     the usability, effectiveness, and general applicability of 
     such research findings in such areas as improving 
     instructional methods, curricula, and tools such as 
     textbooks, media, and other materials; and
       ``(D) projects which apply research and other knowledge to 
     improve educational results for children with disabilities 
     by--
       ``(i) synthesizing useful research and educational 
     products;
       ``(ii) ensuring that such research and products are in 
     appropriate formats for distribution to administrators, 
     teachers, parents, and individuals with disabilities; or
       ``(iii) making such research and products available through 
     libraries, electronic networks, parent training projects, and 
     other information sources, including the National Information 
     Dissemination System under part D of title IX of Public Law 
     103-227;
       ``(8) projects which provide technical assistance to--
       ``(A) States--
       ``(i) to link States to other technical assistance 
     resources, including special and general education resources; 
     or
       ``(ii) in gaining access to information, including 
     information on research and best practices; or
       ``(B) State educational agencies, State lead agencies 
     serving infants and toddlers with disabilities under part C, 
     and other organizations and agencies that play a critical 
     role in providing for the participation of children with 
     disabilities in State and local assessments;
       ``(9) activities to produce, and promote the use of, 
     knowledge to address the special needs of children who have a 
     high likelihood of needing special education and related 
     services in order to reduce, through early intervention, the 
     need for special education services later in life;
       ``(10) educational media activities including--
       ``(A) through September 30, 1998, video description, open 
     captioning, or closed captioning;
       ``(B) video description, open captioning, or closed 
     captioning of educational, news, and informational materials;
       ``(C) through September 30, 1998, distribution of captioned 
     and described materials and videos;
       ``(D) distribution of captioned and described educational, 
     news, and informational materials and videos; and
       ``(E) recording free educational materials, including 
     textbooks, for visually impaired and print-disabled students 
     in elementary, secondary, post-secondary, and graduate 
     schools; and
       ``(11) projects to assist institutions of higher education 
     in appropriately serving students with disabilities, 
     including deaf students.
       ``(b) Definition.--As used in this section, the term `low-
     incidence disability' means--
       ``(1) a visual impairment, a hearing impairment, or 
     simultaneous visual and hearing impairments;
       ``(2) a significant cognitive impairment; or
       ``(3) any impairment for which a small number of personnel, 
     with highly specialized skills and knowledge, are needed 
     nationwide in order for all children with disabilities who 
     have the impairment to receive early intervention services or 
     a free appropriate public education.
       ``(c) Report.--If the Secretary awards a grant, contract, 
     or cooperative agreement under this subpart prior to February 
     1, 1998 with respect to an educational media activity 
     described in subparagraph (A) or (C) of subsection (a)(10), 
     the Secretary, after consulting with the chairman of the 
     Federal Communications Commission, shall submit to the 
     Committee on Economic and Educational Opportunities of the 
     House of Representatives and the Committee on Labor and Human 
     Resources of the Senate, not later than April 15, 1998, a 
     report on the progress that the Federal Communications 
     Commission is making towards meeting the requirements imposed 
     on the Commission under section 713 of the Communications Act 
     of 1934 (47 U.S.C. 613).

     ``SEC. 663. NATIONAL ASSESSMENT.

       ``(a) Purpose of Assessment.--The Secretary shall carry out 
     a national assessment of activities carried out with Federal 
     funds under this title in order--
       ``(1) to determine the effectiveness of the title in 
     achieving the purposes of the title;
       ``(2) to provide information to the President, the 
     Congress, the States, local educational agencies, and the 
     public on how to implement the title more effectively; and

[[Page H6073]]

       ``(3) to provide the President and the Congress with 
     information that will be useful in developing legislation to 
     achieve the purposes of this title more effectively.
       ``(b) Consultation.--The Secretary shall plan, review, and 
     conduct the national assessment under this section in 
     consultation with researchers, State practitioners, local 
     practitioners, parents of children with disabilities, 
     individuals with disabilities, and other appropriate 
     individuals.
       ``(c) Scope of Assessment.--The national assessment shall 
     examine how well schools, local educational agencies, States, 
     other recipients of assistance under this title, and the 
     Secretary are achieving the purposes of this title, 
     including--
       ``(1) the performance of children with disabilities in 
     general scholastic activities and assessments as compared to 
     nondisabled children;
       ``(2) providing for the participation of children with 
     disabilities in the general education curriculum;
       ``(3) helping children with disabilities make successful 
     transitions from--
       ``(A) early intervention services to preschool education;
       ``(B) preschool education to elementary school; and
       ``(C) secondary school to adult life;
       ``(4) placing and serving children with disabilities, 
     including children from underserved populations, in the least 
     restrictive environment appropriate;
       ``(5) preventing children with disabilities, especially 
     children with emotional disturbances and specific learning 
     disabilities, from dropping out of school;
       ``(6) assessing the use of disciplinary measures, and the 
     effect of such use, with children with disabilities as 
     compared to nondisabled children;
       ``(7) coordinating services provided under this title with 
     each other, with other educational and pupil services 
     (including preschool services), and with health and social 
     services funded from other sources;
       ``(8) addressing the participation of parents of children 
     with disabilities in the education of their children; and
       ``(9) resolving disagreements between education personnel 
     and parents through activities such as mediation.
       ``(d) Interim and Final Reports.--The Secretary shall 
     submit to the President and the Congress--
       ``(1) an interim report that summarizes the preliminary 
     findings of the assessment not later than October 1, 1998; 
     and
       ``(2) a final report of the findings of the assessment not 
     later than October 1, 2000.

     ``SEC. 664. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out this subpart such sums as may be necessary for 
     each of the fiscal years 1997 through 2001.
       ``(b) Minimum Amounts.--Subject to subsection (c), the 
     Secretary shall ensure that, for each fiscal year, at least 
     the following amounts are provided under this subpart to 
     address the following needs:
       ``(1) $12,832,000 to address the educational, related 
     services, transitional, and early intervention needs of 
     children with deaf-blindness.
       ``(2) $4,000,000 to address the postsecondary, vocational, 
     technical, continuing, and adult education needs of 
     individuals with deafness.
       ``(c) Ratable Reduction.--If the total amount appropriated 
     to carry out this subpart for any fiscal year is less than 
     $135,600,000, the amounts listed in subsection (b) shall be 
     ratably reduced.

                 ``Subpart 2--Professional Development

     ``SEC. 671. PURPOSE.

       ``The purpose of this subpart is to help ensure that--
       ``(1) personnel responsible for serving children with 
     disabilities, including general and special education 
     personnel, related services personnel, and early intervention 
     personnel, have the knowledge and skills necessary to help 
     such children--
       ``(A) meet developmental goals and, to the maximum extent 
     possible, those challenging expectations that have been 
     established for all children; and
       ``(B) be prepared to lead productive, independent adult 
     lives to the maximum extent possible;
       ``(2) there are adequate numbers of such personnel to meet 
     the needs of children with disabilities; and
       ``(3) the skills and knowledge of personnel responsible for 
     serving children with disabilities reflect the best 
     practices, as determined through research and experience, 
     particularly with respect to the inclusion of children with 
     disabilities in the regular education environment.

     ``SEC. 672. FINDING.

       ``The Congress finds that the conditions noted in 
     paragraphs (7) through (10) of section 601(c) can be greatly 
     improved by providing opportunities for the full 
     participation of minorities through the implementation of the 
     following recommendations:
       ``(1) Implementation of a policy to mobilize the Nation's 
     resources to prepare minorities for careers in special 
     education and related services.
       ``(2) Focusing such policy on--
       ``(A) the recruitment of minorities into teaching; and
       ``(B) financially assisting Historically Black Colleges and 
     Universities and other institutions of higher education 
     (whose minority student enrollment is at least 25 percent) to 
     prepare students for special education and related service 
     careers.

     ``SEC. 673. NATIONAL ACTIVITIES.

       ``(a) Program Authorized.--The Secretary may make grants 
     to, and enter into contracts and cooperative agreements with, 
     eligible entities to support activities of national 
     significance that--
       ``(1) have broad applicability; and
       ``(2) will help ensure that the purpose of this subpart is 
     met.
       ``(b) Authorized Activities.--In carrying out this section, 
     the Secretary may support any activity that is consistent 
     with subsection (a), including--
       ``(1) the development, evaluation, demonstration, or 
     dissemination of effective personnel preparation practices 
     for personnel to work with children with disabilities;
       ``(2) promoting the transferability of licensure and 
     certification of teachers and administrators among State and 
     local jurisdictions;
       ``(3) developing and disseminating models that prepare 
     teachers with strategies, including behavioral management 
     techniques, for addressing the conduct of children with 
     disabilities that impedes their learning and that of others 
     in the classroom; and
       ``(4) supporting Historically Black Colleges and 
     Universities and institutions of higher education with 
     minority enrollments of at least 25 percent for the purpose 
     of preparing personnel.

     ``SEC. 674. PROFESSIONAL DEVELOPMENT FOR PERSONNEL SERVING 
                   LOW-INCIDENCE POPULATIONS.

       ``(a) Program Authorized.--The Secretary may make grants 
     to, and enter into contracts and cooperative agreements with, 
     eligible entities to meet the purpose of this subpart by 
     supporting preparation for personnel who will provide 
     educational and related services to children with low-
     incidence disabilities and personnel who will provide early 
     intervention services to infants and toddlers with 
     disabilities.
       ``(b) Authorized Activities.--
       ``(1) In general.--Individuals who may be prepared pursuant 
     to this section include personnel who--
       ``(A) are currently prepared in the fields of educational, 
     related, or early intervention services; and
       ``(B) are studying--
       ``(i) to obtain degrees, certification, licensure, or 
     endorsements in one or more of such fields; or
       ``(ii) to meet competency requirements in one or more of 
     such fields.
       ``(2) Scholarships.--The Secretary may include funds for 
     scholarships, with necessary stipends and allowances, in 
     awards under this section.
       ``(c) Applications.--Any application for assistance under 
     this section shall propose to provide preparation that 
     addresses a significant need, as shown by letters from one or 
     more States stating that the State--
       ``(1) intends to accept successful completion of the 
     proposed personnel preparation as meeting State personnel 
     standards for serving children with low-incidence 
     disabilities, or for serving infants and toddlers with 
     disabilities; and
       ``(2) needs personnel in the area or areas in which the 
     applicant proposes to provide preparation, as identified in 
     the State's comprehensive system of personnel development 
     under part B or C, or in the State's State improvement plan 
     under subpart 3.
       ``(d) Definition.--For purposes of this section, the term 
     `low-incidence disability' has the meaning given such term in 
     section 662(b).

     ``SEC. 675. LEADERSHIP PERSONNEL.

       ``(a) Program Authorized.--The Secretary may make grants 
     to, and enter into contracts and cooperative agreements with, 
     eligible entities to meet the purpose of this subpart by 
     preparing educational, related service, and early 
     intervention leadership personnel (including teacher-
     preparation faculty, administrators, researchers, 
     supervisors, and principals) so that they are prepared to 
     help children with disabilities--
       ``(1) meet developmental goals and, to the maximum extent 
     possible, those challenging expectations that have been 
     established for all children; and
       ``(2) be prepared to lead productive, independent adult 
     lives to the maximum extent possible.
       ``(b) Authorized Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary may support any activity that is consistent with 
     subsection (a), including--
       ``(A) preparation of personnel at the advanced graduate, 
     doctoral, or post-doctoral levels; and
       ``(B) professional development of leadership personnel.
       ``(2) Scholarships.--The Secretary may include funds for 
     scholarships, with necessary stipends and allowances, in 
     awards under this section.
       ``(c) Preferences.--In making awards under this section, 
     the Secretary shall give preference to projects at 
     institutions of higher education that have successfully 
     integrated the professional development of general and 
     special education personnel.

     ``SEC. 676. SERVICE OBLIGATION.

       ``Each application for funds under section 674 or 675 shall 
     include an assurance that the applicant will ensure that 
     individuals who are prepared under the proposed project will 
     subsequently perform work related to their preparation or 
     repay all or part of the cost of such preparation.

     ``SEC. 677. OUTREACH.

       ``(a) Plan for Outreach Services.--The Secretary shall 
     develop a plan for providing

[[Page H6074]]

     outreach services to the entities and populations described 
     in subsection (b) in order to increase the participation of 
     such entities and populations in competitions for grants, 
     contracts, and cooperative agreements under this subpart.
       ``(b) Entities and Populations Described.--The entities and 
     populations referred to in subsection (a) are--
       ``(1) Historically Black Colleges and Universities and 
     other institutions of higher education whose minority student 
     enrollment is at least 25 percent;
       ``(2) eligible institutions, as defined in section 312 of 
     the Higher Education Act of 1965;
       ``(3) nonprofit and for-profit agencies at least 51 percent 
     owned or controlled by one or more minority individuals; and
       ``(4) underrepresented populations.
       ``(c) Funding.--For the purpose of implementing the plan 
     required under subsection (a), the Secretary shall, for each 
     of the fiscal years 1997 through 2002, expend 1 percent of 
     the funds appropriated for the fiscal year involved for 
     carrying out this subpart.
       ``(d) Diligence.--The Secretary shall exercise the utmost 
     authority, resourcefulness, and diligence of the Secretary to 
     meet the requirements of this section.
       ``(e) Report.--Not later than January 31 of each year, 
     beginning with fiscal year 1997 and ending with fiscal year 
     2002, the Secretary shall submit to the Congress a final 
     report on the progress toward meeting the goals of this 
     section during the preceding fiscal year. The report shall 
     include--
       ``(1) a full explanation of any progress toward meeting the 
     goals of this section; and
       ``(2) a plan to meet the goals, if necessary.
       ``(f) Underrepresented Populations Defined.--For purposes 
     of this section, the term `underrepresented populations' 
     means populations such as minorities, the poor, individuals 
     with limited English proficiency, and individuals with 
     disabilities.

    ``Subpart 3--State Program Improvement Grants for Children with 
                              Disabilities

     ``SEC. 681. PURPOSE.

       ``The purpose of this subpart is to assist States in 
     reforming and improving their systems for providing 
     educational and early intervention services, particularly 
     their systems for professional development, to improve the 
     achievement of children with disabilities.

     ``SEC. 682. ELIGIBILITY AND COLLABORATIVE PROCESS.

       ``(a) Eligible Applicants.--A State may apply for a grant 
     under this subpart for a grant period that is not less than 
     one year, but is not greater than 4 years.
       ``(b) Certification That Collaborative Process Has Been 
     Used.--A State that desires to receive a grant under this 
     subpart shall certify to the Secretary that a collaborative 
     process with persons described in subsection (c) has been 
     used in developing the State improvement plan described in 
     section 683.
       ``(c) Collaborative Process Participants.--
       ``(1) Required participants.--The collaborative process 
     referred to in subsection (b) is a State process for making 
     decisions which includes as participants, at a minimum, the 
     Governor of the State and representatives, appointed by such 
     Governor, of--
       ``(A) parents of children with disabilities;
       ``(B) parents of nondisabled children;
       ``(C) individuals with disabilities;
       ``(D) organizations representing individuals with 
     disabilities and their parents;
       ``(E) community-based and other nonprofit organizations 
     related to the education and employment of individuals with 
     disabilities;
       ``(F) the lead State agency official or officials for part 
     C;
       ``(G) local educational agencies;
       ``(H) general and special education teachers;
       ``(I) the State educational agency;
       ``(J) the State advisory panel established under part B; 
     and
       ``(K) the State interagency coordinating council 
     established under part C.
       ``(2) Optional participants.--The collaborative process may 
     include, at the Governor's discretion, representatives, 
     appointed by the Governor, of--
       ``(A) individuals knowledgeable about vocational education;
       ``(B) the State agency for higher education;
       ``(C) institutions of higher education;
       ``(D) schools of education;
       ``(E) the State vocational rehabilitation agency;
       ``(F) public agencies with jurisdiction in the areas of 
     health, mental health, social services, and juvenile justice; 
     and
       ``(G) any other individuals designated by the Governor.

     ``SEC. 683. STATE IMPROVEMENT PLANS.

       ``(a) In General.--A State that desires to receive a grant 
     under this subpart shall submit to the Secretary a State 
     improvement plan that is integrated, to the maximum extent 
     possible, with State plans under the Elementary and Secondary 
     Education Act of 1965 and the Rehabilitation Act of 1973, as 
     appropriate.
       ``(b) Determining Child and Program Needs.--
       ``(1) In general.--Each State improvement plan shall 
     identify those critical aspects of early intervention, 
     general education, and special education programs (including 
     professional development, based on an assessment of State and 
     local needs) that must be improved to enable children with 
     disabilities to meet the goals established by the State under 
     section 612(a)(14).
       ``(2) Required analyses.--To meet the requirement of 
     paragraph (1), the State improvement plan shall include at 
     least--
       ``(A) an analysis of all information, reasonably available 
     to the State, on the performance of children with 
     disabilities in the State, including--
       ``(i) their performance on State assessments and other 
     performance indicators established for all children, 
     including drop-out rates and graduation rates;
       ``(ii) their participation in postsecondary education and 
     employment; and
       ``(iii) how their performance on the assessments and 
     indicators described in clause (i) compares to that of non-
     disabled children;
       ``(B) an analysis of State and local needs for professional 
     development for personnel to serve children with disabilities 
     that includes, at a minimum, relevant information on current 
     and anticipated personnel shortages, and on the extent of 
     certification or retraining necessary to eliminate such 
     shortages, that is based, to the maximum extent possible, on 
     existing assessments of personnel needs; and
       ``(C) a summary of the information and analysis provided by 
     the State to the Secretary under parts B and C on the 
     effectiveness of the State's systems of early intervention, 
     special education, and general education in meeting the needs 
     of children with disabilities.
       ``(c) Improvement Strategies.--Each State improvement plan 
     shall--
       ``(1) describe the strategies the State will use to address 
     the needs identified under subsection (b)(1), including--
       ``(A) how it will hold school districts and schools 
     accountable for educational progress of children with 
     disabilities;
       ``(B) how it will provide technical assistance to school 
     districts and schools to improve results for children with 
     disabilities;
       ``(C) how it will address the identified needs for in-
     service and pre-service preparation to ensure that all 
     personnel who work with children with disabilities (including 
     both professional and paraprofessional personnel who provide 
     early intervention services, special education, general 
     education, or related services) have the skills and knowledge 
     necessary to meet the needs of children with disabilities, 
     including a description of how--
       ``(i) the State will prepare general education and special 
     education personnel with the content knowledge and 
     collaborative skills needed to meet the needs of children 
     with disabilities, including how the State will work with 
     other States on common certification criteria;
       ``(ii) the State will prepare professionals and 
     paraprofessionals in the area of early intervention with the 
     content knowledge and collaborative skills needed to meet the 
     needs of infants and toddlers with disabilities;
       ``(iii) the State will work with institutions of higher 
     education and other entities that prepare (on both a pre-
     service and an in-service basis) personnel who work with 
     children with disabilities to ensure that such institutions 
     and entities develop the capacity to support professional 
     development programs which reflect actual education practices 
     and techniques;
       ``(iv) the State's requirements for licensure of teachers 
     and administrators, including certification and 
     recertification, will be modified to support an adequate 
     supply of personnel with the necessary skills and knowledge 
     (including, where appropriate, strategies for developing 
     reciprocal certification agreements and common certification 
     requirements with other States); and
       ``(v) the State will work to develop collaborative 
     agreements with other States for the joint support and 
     development of programs to prepare personnel for which there 
     is not sufficient demand within a single State to justify 
     support or development of such a program of preparation;
       ``(D) how it will work in collaboration with other States, 
     particularly neighboring States, to address the lack of 
     uniformity and reciprocity in the credentialing of teachers 
     and other personnel;
       ``(E) strategies that will address systemic problems 
     identified in Federal compliance reviews, including shortages 
     of qualified personnel; and
       ``(F) how the State will assess, on a regular basis, the 
     extent to which the strategies implemented under this subpart 
     have been effective; and
       ``(2) describe how the improvement strategies under 
     paragraph (1) will be coordinated with public and private 
     sector resources.
       ``(d) Reporting Procedures.--Each State that receives a 
     grant under this subpart shall submit performance reports to 
     the Secretary pursuant to a schedule to be determined by the 
     Secretary, but not more frequently that annually.
       ``(e) Plan Approval.--The Secretary shall approve a State 
     improvement plan under this section if it--
       ``(1) meets the requirements of this part;
       ``(2) has been developed in accordance with the 
     requirements of section 682; and
       ``(3) in the opinion of the Secretary, has a reasonable 
     chance of achieving the purposes of the grant.
       ``(f) Plan Amendments.--
       ``(1) Modifications made by state.--Subject to paragraph 
     (2), a plan submitted by a State in accordance with this 
     section shall remain in effect until the State submits to the 
     Secretary such modifications as the State determines 
     necessary. This section shall apply to a modification to a 
     plan to the

[[Page H6075]]

     same extent and in the same manner as this section applies to 
     the original plan.
       ``(2) Modifications required by secretary.--The Secretary 
     may require a State to amend its State improvement plan at 
     any time as a result of the Secretary's compliance reviews 
     under parts B and C. The Secretary may not provide further 
     funding under this subpart to the State until such amendments 
     are made.

     ``SEC. 684. USE OF FUNDS.

       ``(a) In General.--A State that receives a grant under this 
     subpart may use the grant to carry out any activities that 
     are described in the State improvement plan and that are 
     consistent with the purpose of this subpart. Such activities 
     may include the awarding of subgrants, but only if the 
     subgrants are made to local educational agencies. Any such 
     local educational agency may award subgrants to any person. 
     Such activities may also include the awarding of contracts to 
     appropriate entities.
       ``(b) Use of Funds for Professional Development.--A State 
     that receives a grant under this subpart shall use not less 
     than 75 percent of the funds it receives under the grant for 
     any fiscal year to ensure that there is a sufficient supply 
     of personnel who have the skills and knowledge necessary to 
     enable children with disabilities to meet developmental goals 
     and to meet the needs of such children, including working 
     with other States on common certification criteria.
       ``(c) Grants to Territories.--The provisions of Public Law 
     95-134, permitting the consolidation of grants to the 
     territories, shall not apply to funds received under this 
     subpart.

     ``SEC. 685. MINIMUM STATE ALLOTMENTS.

       ``A State that receives a grant under this subpart shall 
     receive an amount that is--
       ``(1) not less than $200,000, in the case of the 50 States, 
     the District of Columbia, and the Commonwealth of Puerto 
     Rico; and
       ``(2) not less than $40,000, in the case of a territory.

     ``SEC. 686. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subpart such sums as may be necessary for each of the fiscal 
     years 1997 through 2001.

                      ``Subpart 4--Parent Training

     ``SEC. 691. GRANTS FOR 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 
     subpart.
       ``(b) Required Activities.--A parent training and 
     information center that receives assistance under this 
     section shall--
       ``(1) assist parents to understand the availability of, and 
     how effectively to use, procedural safeguards under this 
     title, including the use of alternative methods of dispute 
     resolution, such as mediation;
       ``(2) serve the parents of children with the full range of 
     disabilities; and
       ``(3) annually report to the Secretary on--
       ``(A) the number 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 of children with disabilities, including 
     underserved parents of children with disabilities.
       ``(c) Optional Activities.--A parent training and 
     information center that receives assistance under this 
     section may--
       ``(1) provide information to teachers and other 
     professionals who provide special education and related 
     services to children with disabilities;
       ``(2) assist students with disabilities to understand their 
     rights and responsibilities under section 615(j) on reaching 
     the age of majority; and
       ``(3) establish cooperative partnerships with parent 
     organizations, and other organizations assisting families of 
     children with disabilities, in the community.
       ``(d) Application Requirements.--Each application for 
     assistance under this section shall identify with specificity 
     the special efforts that the applicant will undertake to--
       ``(1) ensure that the needs for training and information of 
     parents of underserved children with disabilities in the area 
     to be served are effectively met; and
       ``(2) work with community-based organizations.
       ``(e) Distribution of Funds.--
       ``(1) Initial awards.--
       ``(A) In general.--The Secretary shall make at least one 
     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.
       ``(B) 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.
       ``(2) Additional awards.--
       ``(A) In general.--The Secretary may make additional awards 
     to community-based parent organizations in each State.
       ``(B) Selection requirement.--The Secretary may make 
     additional awards in a manner that ensures that parents of 
     children with disabilities in low-income, high-density, and 
     rural areas have access to parent training and information 
     centers that provide appropriate training and information.

     ``SEC. 692. TECHNICAL ASSISTANCE FOR PARENT TRAINING AND 
                   INFORMATION CENTERS.

       ``(a) Program Authorized.--The Secretary may provide 
     technical assistance for developing, assisting, and 
     coordinating parent training and information programs carried 
     out by parent training and information centers receiving 
     assistance under section 691.
       ``(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 information;
       ``(3) evaluation by the center of itself;
       ``(4) promotion of the use of technology, including 
     assistive technology devices and assistive technology 
     services;
       ``(5) reaching underserved populations;
       ``(6) including children with disabilities in general 
     education programs;
       ``(7) facilitation of transitions from--
       ``(A) early intervention services to preschool;
       ``(B) preschool to school; and
       ``(C) secondary school to postsecondary environments; and
       ``(8) promotion of alternative methods of dispute 
     resolution.

     ``SEC. 693. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subpart such sums as may be necessary for each of the fiscal 
     years 1997 through 2001.''.
                   TITLE II--MISCELLANEOUS PROVISIONS

     SEC. 201. AMENDMENT TO ESEA TO COORDINATE IDEA AND SCHOOLWIDE 
                   PROGRAMS.

       Section 1114(a)(4) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6314(a)(4)) is amended--
       (1) in subparagraph (A), by striking ``Secretary (other 
     than formula or discretionary grant programs under the 
     Individuals with Disabilities Education Act),'' and inserting 
     ``Secretary,''; and
       (2) in subparagraph (B), by inserting ``special education 
     and related services under an individualized education 
     program, procedural safeguards,'' after ``civil rights,''.

     SEC. 202. EFFECTIVE DATES.

       (a) Parts A, B, and C.--Except as provided in subsection 
     (b), parts A, B, and C of the Individuals with Disabilities 
     Education Act, as amended by title I, shall take effect on 
     July 1, 1997.
       (b) Section 605.--Section 605 of such Act, as amended by 
     title I, shall take effect upon the enactment of this Act.
       (c) Part D.--Part D of such Act, as amended by title I, 
     shall take effect on October 1, 1997.

     SEC. 203. REPEALERS.

       (a) Part I.--Part I of the Individuals with Disabilities 
     Education Act is hereby repealed.
       (b) Part H.--Effective July 1, 1997, part H of such Act is 
     hereby repealed.
       (c) Parts E, F, and G.--Effective October 1, 1997, parts E, 
     F, and G of such Act are hereby repealed.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Pennsylvania [Mr. Goodling] and the gentleman from Michigan [Mr. 
Kildee] each will control 20 minutes.
  The Chair recognizes the gentleman from Pennsylvania [Mr. Goodling].
  Mr. GOODLING. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 3268, the IDEA Improvement 
Act, which amends the Individuals with Disabilities Education Act.
  This bill will take major steps toward better education for children 
with disabilities and, as a result, will increase the ability of these 
children to become productive, fully participating citizens in their 
communities. This legislation will improve special education by doing 
the following:
  Placing an emphasis on what is best educationally for children with 
disabilities instead of burdensome paperwork requirements; giving 
teachers more flexibility and schools lower costs; enhancing parental 
input; and making schools safer for students and teachers.
  There are many important changes to IDEA in this legislation. I might 
add that after 1\1/2\ years of work by the committee, the disabilities 
community and the education community asked if they could recommend 
some changes to the legislation.
  We told them they could have a week to suggest changes to the 
legislation if they brought together all of the leaders of the 
disability and education communities. I did not know what they would 
recommend, but they managed to put together a strong package of 
suggestions under the leadership of Madeline Will and Patti Smith. This 
legislation includes the vast majority of the changes recommended by 
that large group of education, disability, and parent organizations, 
who worked together closely in the past weeks to recommend improvements 
to our legislation prior to our committee markup.
  I have strong letters of support for the bill from groups like the 
National

[[Page H6076]]

School Boards Association and the National Association of Elementary 
School Principals. They term this legislation an ``excellent step'' and 
a bill which ``contains many improvements and reforms that will improve 
services for students with disabilities.''
  I include those for the Record:

                                           National Association of


                                 Elementary School Principals,

                                     Alexandria, VA, June 5, 1996.
     Hon. Randy Cunningham,
     House of Representatives,
     Washington, DC.
       Dear Representative Cunningham: On behalf of the National 
     Association of Elementary School Principals, I am writing to 
     urge you to work to bring H.R. 3268, the Idea Improvement Act 
     of 1996, to the House floor as soon as possible. We believe 
     it would be beneficial to bring the bill up for floor 
     consideration under suspension of the rules.
       NAESP supports the bill that emerged from the Economic and 
     Educational Opportunities Committee because we consider it to 
     be an improvement over current law. We believe that IDEA is a 
     well-intended law that needs to be updated to address the 
     realities of today's schools. H.R. 3268 is an excellent step 
     in that direction, particularly with respect to its school 
     safety provisions.
       We hope you will do what you can to foster the timely 
     consideration of IDEA by the full House of Representatives. 
     Thank you for your attention to this matter.
           Sincerely,
                                               Sally N. McConnell,
     Director of Government Relations.
                                                                    ____



                                                        NASBA,

                                                     June 7, 1996.
     Hon. William F. Goodling,
     House of Representatives, Washington, DC.
       Dear Representative Goodling: The National School Boards 
     Association (NSBA), on behalf of the more than 95,000 local 
     school board members, believes the Individuals with 
     Disabilities Education Act (IDEA) is a valuable law that has 
     provided millions of students with disabilities the 
     opportunities they need to achieve their potential. H.R. 3268 
     reauthorizing IDEA contains many improvements and reforms 
     that will improve services for students with disabilities and 
     make special education programs work more effectively across 
     the country. It is also carefully crafted compromise 
     legislation that incorporates many recommendations of both 
     parents groups and educators. For these reasons, NSBA urges 
     members of Congress to vote for the legislation.
       H.R. 3268 addresses many of the key school safety 
     provisions raised by NSBA, and local educators across the 
     country. H.R. 3268 will make it significantly easier for 
     school officials to protect the safety of all students and 
     school personnel. Specifically, H.R. 3268 will make 
     additional behavioral interventions available to students; 
     and in the modest number of cases where such interventions 
     are not successful, dangerous students could be educated in 
     more appropriate placements.
       The legislation also contains several provisions designed 
     to provide schools with greater flexibility in administering 
     the law, and to provide additional funding sources for 
     financing special education services. For example, H.R. 3268 
     will make more resources available for educating students by 
     reforming the overly adversarial dispute resolution process. 
     As this legislation proceeds toward enactment, NSBA also will 
     work to secure additional changes that are needed to control 
     the costs of IDEA.
       H.R. 3268 will help improve school safety for all students, 
     result in improved services for students, and take important 
     steps to reduce the litigiousness of IDEA. We urge your 
     support for this legislation. For further information, please 
     contact William Bruno, Director of Federal Programs.
           Sincerely,
     Sammy J. Quintana,
       President.
     Thomas A. Shannon,
       Executive Director.

  Mr. Speaker, the changes in the IDEA Improvement Act will have a 
positive, measurable impact on the lives of millions of students with 
disabilities. When enacted, the bill will help children with 
disabilities learn more and learn better, which should be the ultimate 
test of any education law. Students with disabilities will now be 
expected, to the maximum extent possible, to meet the same high 
educational expectations that have been set for all students by States 
and local schools.
  There will be an emphasis on what works instead of filling out 
paperwork. No longer will teachers be forced to complete massive piles 
of unnecessary, federally required forms and data collection sheets. 
These changes will mean more time for teachers to dedicate to their 
students, and fewer resources wasted on process for its own sake.
  The IDEA Improvement Act will help cut costly referrals to special 
education by emphasizing basic academics in the general education 
classroom. In the 1993-94 school year, 2.44 million of our Nation's 
4.79 million special education children were there because they have 
learning disabilities. Many of these problems could be addressed with 
better academics in the early grades.
  Under our bill, following every evaluation of a child for special 
education services, school personnel will need to consider whether the 
child's problems are the result of lack of previous instruction. Too 
often, children whose problems come from a lack of reading skills enter 
special education because they were not properly taught how to read in 
their primary years.
  The IDEA Improvement Act will eliminate many of the financial 
incentives for overidentifying children as disabled. The change in the 
Federal formula, which I will talk about shortly, will reduce the 
Federal bonus for identifying additional children as disabled. The 
legislation will also ensure that States do not use placement-driven 
funding formulas that tie funds to the physical location of the child. 
These formulas currently drive overidentification and costs.
  The legislation will also help ensure that assignment to special 
education is not permanent. Children are often referred to special 
education in early grades and then never leave. Once identified and 
placed in special education these children remain there throughout 
their primary and secondary education. Part of the problem lies with 
the child not keeping pace academically with his peers. Special 
education plans often have no link to the general education curriculum. 
Therefore, children remain in special education because they lose 
contact with what other children their age are learning and can no 
longer keep up. This legislation will ensure that the general 
curriculum is part of every child's education plan or justifies why it 
is not.

  The bill will assure parents' ability to participate in key decision-
making meetings about their children's education and ensure that they 
will have better access to their child's school records. They will also 
be updated no less regularly than the parents of nondisabled students 
through parent-teacher conferences and report cards.
  The bill ensures that States will offer mediation services to resolve 
disputes. This change will encourage parents and schools to work out 
differences in a less adversarial manner. Currently, if the parents and 
the school cannot resolve their differences in the IEP meeting they 
have no choice but to file for a due process hearing and attorneys 
become involved. Providing mediation early in the process will cut the 
costs related to litigation.
  Local principals and school administrators will be given more 
flexibility. There will be simplified accounting and flexibility in 
local planning. No longer will accounting rules prevent even incidental 
benefits to other, nondisabled children for fear of lost Federal 
funding.
  The bill will make schools safer for all students, disabled and 
nondisabled, and for their teachers. We will enable schools to quickly 
remove violent students and those who bring weapons or drugs to school, 
regardless of their disability status.
  The bill will ensure that such children can quickly be moved to 
alternative placements for 45 days, during which time the child's 
teachers, principal, and parents can decide what changes, if any, 
should be made to the child's IEP and placement.
  The legislation will also ensure that disability status will not 
affect the school's general disciplinary procedures. In discipline 
cases, the child's individualized education program team will determine 
whether the child's actions were a result of their disability. If it 
was not, schools will need to take the same action with disabled 
children as they would with any other child.
  Part C, the infants and toddlers program, has been changed to 
strengthen the intent of past Congress to promote early intervention 
services to infants and toddlers in natural environment settings. Under 
this bill, State policies and procedures implementing this program will 
direct the provision of services in natural settings. This requirement 
will not mean that all services, such as physical therapy, must be 
provided in the child's home. Rather, if the infant's or toddler's IFSP 
team chooses to provide services in a restricted setting the child's 
individualized family services plan will need to

[[Page H6077]]

justify why this location is most appropriate.
  Early intervention services were not intended to be provided using a 
medical model. Early intervention services should enhance the learning 
and development of the infant or toddler with a disability, and the 
ability of the family to meet the special needs of their child. To 
accomplish this the family must be trained to provide as many of the 
child's services as possible.
  Center or clinic based programs are very expensive. This emphasis on 
natural settings, besides being the most appropriate location for 
providing services to infants and toddlers, will lower the costs for 
the States as they implement these changes. This issue of where 
services will be provided and the costs relating to the different 
choices is one which will continue to be worked out as we proceed to 
conference.
  Finally, I would like to talk about the formula which will determine 
the Federal appropriation each State will receive. Let me say first of 
all--no State will lose funds for 3 years. Forty-six States lose no 
funds through the first 6 years of the transition to the new formula. 
This bill phases in the process from allocating funds to the States 
based on a child count of children with disabilities to a population-
based formula for a factor for poverty. The new formula is based 85 
percent on the number of children in the State and 15 percent on State 
poverty statistics.
  This is a major step in the move to reduce the overidentification of 
children as disabled, particularly African-American males who have been 
pushed into the special education system in disproportionate numbers. 
The Clinton administration recognized the problem with the current 
system in its bill, suggesting a population-based formula with new 
funding. Many of my Democrat colleagues also recognized the importance 
of this change when they introduced that bill last year as H.R. 1986.
  In 1994, the Department of Education's inspector general recommended 
changing the formula in a manner similar to the way we have changed it 
in this bill. They called the current formula a bounty system that 
encourages putting children in special education when they should not 
be.
  Before I conclude, I want to note that this legislation represents 
over a year of hard work by the members of this committee.

                              {time}  1530

  But I would like to thank one colleague in particular for his 
dedication to the bill. The subcommittee chairman, the gentleman from 
California, Mr. Duke Cunningham, has led this bill through its yearlong 
journey to a vote today. He has dedicated many hours to crafting an 
outstanding piece of intricate and comprehensive legislation. Mr. 
Cunningham has my sincere thanks.
  I would also like to thank Mr. Greenwood, Mr. Gunderson, Mr. Talent, 
Mr. Souder, Mr. Riggs, Mr. Clay, Mr. Kildee, and Mr. Miller, and all 
others who have worked in a bipartisan manner to improve the IDEA, and 
particularly the staffs headed by Todd Jones on our side and Sarah 
Davis on the other side.
  The IDEA Improvement Act is the most important change to America's 
special education system since the passage of Public Law 94-142 in 
1975. Overall, America's special education system as has been 
structured has not accomplished what has been necessary to educate our 
children with disabilities. There is broad agreement on the need to 
change. Results are important. Accountability is important. I believe 
this bill will help give America's children with disabilities what they 
were promised 21 years ago: the real opportunity to receive a quality 
education. I ask that my statement be included in the Record.
  Mr. Speaker, thank you for permitting me to present for consideration 
H.R. 3268, the IDEA Improvement Act, which amends the Individuals With 
Disabilities Education Act. This bill will take major steps toward 
better education for children with disabilities, and as a result will 
increase the ability of these children to become productive, fully 
participating citizens in their communities.
  This legislation will improve special education by: placing an 
emphasis on what is best educationally for children with disabilities 
instead of burdensome paperwork requirements; giving teachers more 
flexibility and schools lower costs; enhancing parental input; and 
making schools safer for students and teachers.
  There are many important changes to IDEA in this legislation. It 
includes the vast majority of the changes recommended by a large group 
of education, disability, and parent organizations, who worked together 
closely in the past weeks to recommend improvements to our legislation 
prior to our committee markup. That cooperation itself is historic. 
Never before have so many groups with such divergent viewpoints come 
together on behalf of children with disabilities. I hope the result is 
an ongoing dialog and continuing effort to meet the needs of our 
children.
  I have strong letters of support for the bill from the National 
School Boards Association and the National Association of Elementary 
School Principals. They term this legislation an ``excellent step'' and 
a bill which ``contains many improvements and reforms that will improve 
services for students with disabilities.'' I would ask that they be 
entered in the Record.
  The changes in the IDEA Improvement Act will have a real and positive 
impact on the lives of millions of students with disabilities. When 
enacted, the bill will help children with disabilities learn more and 
learn better, which should be the ultimate test of any education law. 
Students with disabilities will now be expected, to the maximum extent 
possible, to meet the same high educational expectations which have 
been set for all students by States and local schools. There will be an 
emphasis on what works instead of filling out paperwork. No longer will 
teachers be forced to complete massive piles of unnecessary, federally 
required forms and data collection sheets. These changes will mean more 
time for teachers to dedicate to their students, and fewer resources 
wasted on process for its own sake.
  The IDEA Improvement Act will help cut costly referrals to special 
education by emphasizing basic academics in the general education 
classroom. In the 1993-94 school year, 2.44 million of our Nation's 
4.79 million special education children were there because they have 
learning disabilities. Many of these problems could be addressed with 
better academics in the early grades.

  The IDEA Improvement Act has addressed this issue in several ways. 
First, following every evaluation of a child for special education 
services, school personnel will need to consider whether the child's 
problems are the result of lack of previous instruction. Too often, 
children whose primary problems result from a lack of reading skills 
enter special education because their problem was not properly 
addressed with basic academics. This change will result in fewer 
children being improperly identified as disabled because their actual 
need, lack of skills, will be noted and addressed in a general 
education setting.
  Second, the bill's discretionary training program will provide 
necessary training for general education teachers that is not being 
provided today. Current federal training grant programs ultimately 
focus their resources on pre-service for special education teachers, 
because universities that receive the grants are deciding what the 
priorities for training are. While such training is important, where 
local teachers and schools are given the opportunity to decide what 
priorities are most important, they consistently cite in-service 
training, particularly for general education teachers, and pre-service 
training for early grade general education and reading teachers. This 
bill will refocus Federal efforts by putting the decision making power 
with States and local schools, who are in a better position to 
recognize and serve their local needs. This will mean teachers with 
better skills in the critical early grades, which will lead to better 
taught children and ultimately, fewer special education referrals.
  Third, the IDEA Improvement Act will eliminate many of the financial 
incentives for overidentifying children as disabled. The change in the 
Federal formula, which I will talk about shortly, will reduce the 
Federal bonus for identifying additional children as disabled. 
Hopefully, States will follow suit, moving toward similar formulas. The 
legislation will also ensure that States do not use placement-drive 
funding formulas that tie funds to physical location of the child. Such 
incentives encourage children to be placed in more restrictive 
settings, from which they are less likely to ever leave. They also 
encourage placement in special education in the first place, 
particularly children with mild disabilities that might best be served 
in general education classrooms with more assistance, instead of 
separate classrooms.
  The legislation will also help ensure that assignment to special 
education is not permanent. Children are often referred to special 
education in early grades and then never leave. Part of the problem 
lies with the child not keeping pace academically with their peers. 
Special education plans often have no link to the general curriculum. 
Therefore, children remain in special education because they

[[Page H6078]]

lose contact with what other children their age are learning and can no 
longer keep up. This legislation will ensure that the general 
curriculum is part of every child's individualized education program 
[IEP] or justified why it is not.
  The bill will assure parents' ability to participate in key decision-
making meetings about their children's education and they will have 
better access to school records. They will also be updated no less 
regularly than the parents of nondisabled students through parent-
teacher conferences and report cards. Parents will be in a better 
position to know about their child's education, and will be able to 
ensure that their views are part of the IEP team's decision making 
process.
  The bill ensures that States will offer mediation services to resolve 
disputes. Mediation has proved successful in the nearly three-quarters 
of the States that have adopted it. This change will encourage parents 
and schools to work out differences in a less adversarial manner. The 
bill will also eliminate attorney's fees for participating in IEP 
meetings, unless they have been ordered to by a court or hearing 
officer. The purpose of this change is to return IEP meetings to their 
original purpose, discussing the child's needs.
  Our legislation will reduce litigation under IDEA by ensuring that 
schools have proper notice of a parent's concerns prior to a due 
process action commencing. In cases where parents and schools disagree 
with the child's IEP, the school will have real notice of the parent's 
concerns prior to due process. We hope that this will lead to earlier 
resolution of such disputes without actual due process or litigation.
  Local principals and school administrators will be given more 
flexibility. There will be simplified accounting and flexibility in 
local planning. No longer will accounting rules prevent even incidental 
benefits to other, nondisabled children for fear of lost Federal 
funding.
  The bill will make schools safer for all students, disabled and 
nondisabled, and for their teachers. Expanding upon current procedures 
for students with firearms, we will enable schools to quickly remove 
violent students and those who bring weapons or drugs to school, 
regardless of their disability status. The bill will ensure that such 
children can quickly be moved to alternative placements for 45 days, 
during which time the child's teachers, principal, and parents can 
decide what changes, if any, should be made to the child's IEP and 
placement.
  The legislation will also ensure that disability status will not 
affect the school's general disciplinary procedures where appropriate. 
In discipline cases, the child's individualized education program team 
will determine whether the child's actions were a manifestation of his 
or her disability. If they were not, schools will need to take the same 
action with disabled children as they would with any other child. This 
would include expulsion in weapons and drug cases where that is 
permitted by local or State law.
  Part C, the infants and toddlers program, has been changed to 
strengthen the intent of past Congresses to promote early intervention 
services to infants and toddlers in natural environments. Under this 
bill, State policies and procedures implementing this program will 
direct the provision of services in natural settings. This requirement 
will not mean that all services, such as physical therapy, must be 
provided in the child's home. Rather, if the infant's or toddler's IFSP 
team chooses to provide services in a more restrictive setting, 
the child's individualized family services plan will need to justify 
why this location is most appropriate.

  Early intervention services were not intended to be provided using a 
medical model. Early intervention services should enhance the learning 
and development of the infant or toddler with a disability, and the 
ability of the family to meet the special needs of their child. Center 
or clinic based programs are very expensive. This emphasis on natural 
settings, besides being the most appropriate location for providing 
services to infants and toddlers, will lower the costs for the States 
as they implement these changes. The issue of where services will be 
provided and the costs relating to the different choices is one which 
will continue to be worked out as we proceed to conference.
  Finally, I would like to talk about the formula which will determine 
how much of the Federal appropriation each State will receive. Let me 
say first of all no State will lose funds for 2 years; 49 States lose 
no funds through the first 5 years of the transition to the new 
formula. This bill moves from allocating funds to the States based on a 
child count of children with disabilities to a population-based formula 
with a factor for poverty. The new formula is based 85 percent on the 
number in the State and 15 percent on State poverty statistics. This is 
a major step in the move to reduce the overidentification of children 
as disabled, particularly African-American males who have been pushed 
into the special education system in disproportionate numbers.
  The Clinton administration recognized the problem with the current 
system in its bill, suggesting a population-based formula with future 
funding. Many of my Democrat colleagues also recognized the importance 
of this change when they introduced that bill last year as H.R. 1986. 
In 1994, the Department of Education's Inspector General recommended 
changing the formula exactly as we have changed it in this bill. They 
called the current formula a bounty system that encourages putting 
children in special education when they should not be.
  Obviously, when a change this large is undertaken, some States will 
gain in the count and others will be reduced. In an effort to hold the 
negative impact on States to a minimum, the first 10-percent of the 
funds which a State would lose will be held harmless. In effect this 
means that during the transition to the new formula, any State which 
loses 10 percent or less will see no reduction in funding. Those States 
that would lose more than 10 percent are held harmless for that 10 
percent. For example, if a State's 1996 allocation were to be $120 
million, and the transition formula would allocate $104 million to the 
State in 2002, that State would still receive $116 million; that is, 
the $104 million allocation plus 10 percent of the 1996 allocation, 
which amounts to $12 million.
  Aside from the part C and funding formula changes, there are several 
other small and technical changes in today's bill from the bill 
reported out of committee last month. These include: noting the role of 
education service agencies in the findings and purposes, and updating 
some of the statistics used in the findings; ensuring that knowledge 
about the child or special expertise is required to be on the IEP team, 
not special knowledge or special expertise; properly placing one of Mr. 
Miller's markup amendments within the procedural safeguards section; 
making the language in Mrs. Mink's amendment consistent with the terms 
used in the bill; ensuring that the professional standards suspension 
provision only applies to the highest standard provision, not to all 
professional standards; ensuring that the Secretary has the authority 
to actually make awards and grants under part D, subpart 1; and making 
technical and cross-reference changes to implement the intent of the 
bill.
  Before I conclude, I want to note that this legislation represents 
over a year of hard work by the members of this committee. But I would 
like to thank one colleague in particular for his dedication to this 
bill. Subcommittee Chairman Duke Cunningham has led this bill through 
its year long journey to our vote today. He has dedicated many hours to 
crafting an outstanding piece of intricate and comprehensive 
legislation. Mr. Cunningham has my sincere thanks.
  I also want to thank Mr. Greenwood, Mr. Gunderson, Mr. Talent, Mr. 
Souder, Mr. Riggs, Mr. Clay, Mr. Kildee, Mr. Miller, and all the others 
who have worked in a bipartisan manner to improve the IDEA.
  The IDEA Improvement Act is the most important change to the 
America's special education system since the passage of Public Law 94-
142 in 1975. Overall, America's special education system as it has been 
structured has not accomplished what is necessary to educate our 
children with disabilities. There is broad agreement on the need to 
change. Results are important. Accountability is important. I believe 
this bill will help give America's children with disabilities what they 
were promised 21 years ago: the real opportunity to receive a quality 
public education.
   Mr. Speaker, I reserve the balance of my time.
  Mr. KILDEE. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise today in support of H.R. 3268, the IDEA 
Improvement Act of 1996, and urge my colleagues in the House to do the 
same.
  This is a relatively young law. In fact, we have recently celebrated 
the 20th anniversary of the historic enactment of this bill. It seems 
almost impossible to imagine, Mr. Speaker, that just two short decades 
ago children were routinely excluded from one of our most important 
institutions in this country, public schools. IDEA and the improvements 
we are proposing to make in this reauthorization are among the proudest 
legacies of this Congress and our committee. And let me say to my good 
friend, the gentleman from Pennsylvania [Mr. Goodling], that although 
this has been sometimes a very difficult process, it has been a very 
productive process, and I want to thank the gentleman for his patience 
and his determination, that we designed a reauthorization bill that 
could gain bipartisan support.
  I would also like to thank my subcommittee chairman, the gentleman 
from California, Mr. Duke Cunningham, who is tireless in his desire to 
find common ground between a

[[Page H6079]]

myriad of conflicting viewpoints and approaches.
  Finally, I would like to express my gratitude to the participants of 
the IDEA consensus group for their remarkable devotion to the children 
and families served by this law. This law is as virtuous as it is 
because of them, and I thank them for the hundreds of hours they 
committed to helping us fashion a proposal which we have before us 
today.
  I would like to say a word about one of the improvements in this 
bill. When this bill is signed into law it will require new interagency 
agreements that will provide a means of improving related services to 
disabled students by sharing costs across the widest possible fiscal 
base. There are many Federal, State, county, and municipal agencies 
that could provide related services for disabled students, but 
currently do not. The principal reason why all appropriate agencies do 
not provide such services is that those served by special education are 
considered the sole responsibility of the public school system. I think 
that it makes both fiscal and programmatic sense to involve all 
services providers while maintaining the current seamless delivery 
systems in schools.
  Public school systems now shoulder the fiscal responsibility for 
special education. As the cost of health care has continued to rise, 
the absence of an effective cost-sharing mechanism has unfairly focused 
attention on the costs of special education. Relying on local school 
budgets for the cost of health, mental health, and social services 
causes needless conflict with parents over the scope of services and 
the cuts in programs for both disabled and nondisabled students.
  According to a recent editorial in Education Week, special education 
costs now are about $35 billion nationally. By some estimates a full 6 
billion of those costs could be shared. That is only a fraction of 
total local, State, and Federal spending on health care and social and 
mental health services, but it is a huge amount for local schools.
  And before I yield, I want to thank the administration for providing 
the blueprint for this proposal. Importantly, the bill will refocus the 
provision of services under IDEA towards improving educational results 
by promoting greater participation in the general curriculum an the 
assessments that measure student progress and by affirming that school 
reform efforts must include children with disabilities.
  The bill also promotes improvements in teaching and learning in two 
ways: through a strong commitment to providing teachers and families 
with the tools and training they will need to improve achievement; and, 
second, by reducing administrative burdens at all levels and increasing 
administrative flexibility. We are sending a signal to schools that we 
want better results for children, not unread paperwork.
  I want to thank the chairman for his great work on this bill, and I 
want to thank also the subcommittee chairman, the gentleman from 
California, Mr. Duke Cunningham, and I want to thank their staff also, 
especially, Sally Lovejoy, Todd Jones, and Doris Husted, along with 
Sarah Davis and Melissia Benton on our staff. Their prodigious effort 
really has been instrumental and essential in writing this bill. We at 
times had points in this bill where we thought we could go no further, 
but because of their patience and their tenacity and that of Duke 
Cunningham and the good work between our staffs, we were able to write 
a bill that we can be proud of, and I want to thank all those involved 
in that.
  Madam Speaker, I yield such time as he may consume to the gentleman 
from Missouri [Mr. Clay].
  (Mr. CLAY asked and was given permission to revise and extend his 
remarks.)
  Mr. CLAY. Madam Speaker, today, we debate the Individuals With 
Disabilities Education Act which mandates a free appropriate public 
education for children with disabilities and provides Federal funding 
to State and local education agencies in helping to meet this goal. 
IDEA is the main Federal law intended to support and improve early 
intervention and special education for infants, toddlers, children, and 
youth with disabilities. The centerpiece of IDEA is the Grants to 
States Program that assists States to serve school age children with 
disabilities.
  The legislation we debate today is comprehensive. However, the two 
issues which I will address in my time allotted are first, cessation of 
services for disabled students, and second, the streamlining of special 
purpose programs under IDEA.
  The first issue is the cessation of services for disabled students. 
In other words, the issue is whether a disabled school-age student can 
be expelled from school indefinitely without educational services for 
certain unacceptable behavior. The cessation of educational services to 
children with disabilities is one of the most controversial changes to 
IDEA. Current law allows schools to use disciplinary procedures on 
children with disabilities, including expulsion, but these procedures 
cannot result in a cessation of services. This is an issue which 
received considerable and contentious debate and discussion during 
deliberations on this legislation.
  To set this issue in perspective, current law permits the school to 
suspend a child for up to 10 school days whenever a student poses an 
immediate threat to the safety of others. Further, if a child with a 
disability is determined to have brought a firearm to school, the child 
may be placed in an interim alternative education setting in accordance 
with State law, for not more than 45 days.
  The Senate reported bill contains language which permits the child to 
be placed in an interim alternative educational setting for 35 days if 
a child with a disability has a dangerous weapon in his/her 
possession, engages in the illegal use, possession, or distribution of 
drugs, or engages in behavior that results in or is substantially 
likely to result in serious bodily injury. The Senate provision could 
result in the student being expelled without follow-up services if the 
behavior relates to weapons or drugs or was found to be unrelated to 
the child's disability.

  The result of the House provisions as it relates to disciplinary 
measures is that students whose actions are found to be unrelated to 
their disability may be expelled without services for weapons and 
illegal drug cases if so provided by State law.
  Federal law is supporting the expulsion of school-age students from 
school indefinitely without providing some type of alternative 
services. Without special services, the outcomes for children with 
disabilities in this situation are much worse than for children without 
disabilities. When we sanction this in Federal law, we are supporting 
the cessation of education services to students with disabilities who 
are the most vulnerable.
  The question is are we mandating a disservice to students and/or to 
society when we permit school-age students to be thrown into the 
streets without any alternative placement? Are we simply creating a 
worse criminal law problem later?
  Although there has been a frequent reference to the minuscule number 
of student affected by this change, our concern is that any number is 
too many.
  I intend to carefully follow the implementation of this legislation 
and carefully follow the result of this provision.
  An additional issue that I will address is the streamlining of the 
special purpose programs under IDEA. Currently, under IDEA, there are 
14 special purpose programs that authorize discretionary grants to 
support early intervention and special education research, 
demonstration projects, teacher training, and information 
dissemination. The House bill would consolidate these 14 programs into 
4.
  The concern is that support for certain vital functions might be lost 
in the transition to the four new progams. The Federal role in the area 
of early intervention and special education research and development, 
without question, has led to improved outcomes for children with 
disabilities. Although specific program headings will disappear in the 
new legislation, that should not suggest that our work is done in these 
areas. The education of students with disabilities will not improve 
without a strong Federal role that advances the knowledge base and 
tools of educators.
  I urge my colleagues to very carefully consider this legislation.
  Mr. GOODLING. Madam Speaker, I yield 6 minutes to the ``Duke'' from 
California, Mr. Cunningham, the subcommittee chairman who piloted this 
through his subcommittee.
  Mr. CUNNINGHAM. That is the California Duke, not the Louisiana Duke, 
Madam Speaker.
  Madam Speaker, can our colleagues imagine having a child with 
disabilities and no place to go, that the school refuses to teach that 
child, and they have no hope that that child will have a bite at the 
American dream? Well over 21 years ago, Madam Speaker, there was a 
program established to address this problem, IDEA. And it is said, 
well, why fix a program that is working good? First of all, IDEA was up 
for reauthorization. And today we live in a computer age. We do not use 
typewriters. It is time for a new approach, and like each bill that 
comes

[[Page H6080]]

before us, the direction that we set forth was to try and do this in a 
bipartisan manner.
  I want to thank my colleague, the gentleman from Michigan [Mr. 
Kildee]. When he was the chairman of my subcommittee, he was very fair 
and worked very closely with me, as he does now as ranking member.
  Second, I would like to thank the gentleman from Pennsylvania [Mr. 
Goodling]. As chairman, he led well. He did not micromanage. He gave me 
the reins that I needed to be able to go forth.
  I would like to thank especially the California legislature and all 
the principals and superintendents that I had meetings and hearings 
with on this bill. On IDEA, I had more meetings than I have had on 
national security. My colleagues cannot realize the different interest 
groups that come into play. And to get a consensus of teachers, of 
schools, and parents on a bill like this has been very, very difficult 
and very trying.
  But we have done it. And I think that the reauthorization and the 
improvement of this act is going to help children.
  First priority was to help schools achieve more of their budgetary 
accounts toward special-education children. Many of the procedures that 
schools were forced to go through, along with lawsuits and the dollars 
going to lawyers and paperwork, were taking away from the actual 
dollars that we wanted to focus to kids. So we set forth and tried to 
resolve that problem.
  We wanted to allow schools to function well, and serve not only 
special education children, but all children better, so that those 
dollars were not taken away. In many cases today, we would have lengthy 
litigation. In California there is one case where over $1 million 
dollars was taken away from the school system through unwise 
litigation. We resolved that problem, and we got the consensus of 
both the parent groups and the schools. That was difficult.

  Madam Speaker, I do not know if our colleagues have ever taken a dirt 
clod and thrown it at a wasps' nest. But all the little wasps, when you 
do that, start dancing around, and they are going to sting. When we 
take a look at the challenges present in IDEA and the problems that we 
have gone through in bringing this bill to the floor, I think we have 
done a pretty good job.
  We found that school boards did not know what their responsibilities 
were, teachers did not know what their responsibilities were, and 
parents did not always know what the law entailed and were trying to 
overprescribe special-education requirements to the schools. In the 
end, it resulted in a lot of lawsuits to the schools.
  So what did we do? We said in the first due process meeting between a 
parent and a school that a lawyer cannot be present. Because if there 
is a lawyer there, the school has got to have one, and that takes 
dollars away from the system. So at this first due process meeting, we 
try and encourage mediation where two people or two groups can sit down 
and save the focus and save the dollars to go back into the education 
of children.
  Madam Speaker, I know there are a couple of other speakers that 
wanted to speak. And I know the gentlewoman from Maryland [Mrs. 
Morella] did. I will submit the rest of this for the Record. In this 
bill, we replace confusion with clarity and simplicity. I think it is a 
great improvement. I could not have done that without the gentleman 
from Michigan [Mr. Kildee], through his guidance. And I could not have 
done it without the leadership of my chairman, the gentleman from 
Pennsylvania [Mr. Goodling]. We have prepared here to thank the staffs 
and the different people; the other Members have already done that so I 
will not say that again. But I will submit it for the Record.
  I urge all Members to support the IDEA Improvement Act.
  Mr. Speaker and Chairman Goodling, thank you for recognizing me in 
support of my bill, the IDEA Improvement Act.
  This legislation is based upon one principle: That children with 
disabilities deserve a fighting chance to grow up and achieve the 
American dream. And to have that fighting chance, children need an 
excellent education.
  So a year and a half ago, we set out to make the Nation's special 
education law better. America has had a national special education law 
for 21 years. By many measures, it has succeeded. Children who were 
regarded as helpless now receive an education. Families who were 
powerless to get schooling for their children now get it. And schools 
who lacked direction in how to provide special education now have it.
  But we can do better. It's taken many meetings, and a lot of time. 
But with the agreement of Republicans and Democrats, families and 
educators, we have done better for our schools and for our Nation's 
children. Together, we have developed the first comprehensive reform of 
our Nation's special education law. We have made it better for our 
children with disabilities. And we have improved schools' ability to 
run the program.
  Chairman Goodling has outlined this legislation in detail. Let me 
highlight four areas which I find particularly important.
  First, we believe it is important for schools and families to focus 
on quality education, instead of bureaucratic paperwork. So we have 
made several improvements in the IEP, the Individualized Education 
Program that is required for every child with a disability. For the 
first time, the IEP must focus on the educational progress of the 
child, not merely list pre-programmed services.
  Second, we believe it is important to make every special education 
dollar count. Every dollar that pays for attorneys or unnecessary 
paperwork is a dollar that cannot buy a book, pay a teacher, or educate 
a child. So where there is disagreement between families and schools 
over how to best educate a child with a disability, we strongly 
encourage them to work it out through mediation.
  Third, we believe we must restore fairness to the distribution of 
Federal money under IDEA. While the current formula was written for a 
good reason, problems have arisen. The Department of Education 
inspector general found that some States over identify children into 
special education, and get more than their fair share of Federal money. 
That's not right. So we gradually transition away from that unfair 
formula, toward one based upon population, a small poverty factor, and 
a hold harmless for several affected States. I agree that Congress 
should provide more funding for local schools to meet this mandate. And 
I have joined several other Members in requesting it.
  And fourth, is the issue of discipline. Under the law today, there is 
disagreement and confusion among schools and families, over how and 
when to discipline children with disabilities. This is particularly 
tough in the most difficult and violent cases. But we replace confusion 
with clarity and simplicity. We ensure safe classrooms and safe 
schools. And we maintain agreed-upon procedural safeguards for children 
with disabilities.
  We have made many other improvements in the IDEA Improvement Act, 
such as consolidating and focusing programs, and reforming professional 
development for teachers. We have simplified our schools's 
administration of special education.
  But everything we have done returns to this one principle: That 
children with disabilities deserve an excellent education, so they have 
a fighting chance at the American dream.
  Because in America, children with learning disabilities should 
discover the world of reading. Children with emotional disturbances 
should acquire the confidence they need through learning and 
achievement. Children who were once thought to be helpless should grow 
to become active, working, and productive citizens of our communities. 
In America, the best Nation on Earth, we can and do work together to 
make things better.
  I would like to thank my chairman, Bill Goodling, for his leadership, 
and for working closely together with me on this bill. My Youth 
Subcommittee's ranking member, Dale Kildee, proved his friendship 
again, as a friend of mine and a friend of our Nation's children.
  I also would like to recognize: Todd Jones, Doris Husted, and Sally 
Lovejoy from the committee majority staff, Frank Purcell of my personal 
staff, Sara Platt Davis of the committee minority staff, Steve Aleman 
from CRS, legislative counsels Susan Fleishmann and Mark Synnes and all 
the representatives of schools, teachers, and families of children with 
disabilities, whose time and contributions to this effort made the IDEA 
Improvement Act possible. Thank you.
  I urge all Members to support the IDEA Improvement Act.
  Mr. KILDEE. Madam Speaker, I yield 5 minutes to the gentleman from 
Montana [Mr. Williams].
  Mr. WILLIAMS. Madam Speaker, I appreciate the opportunity to speak in 
support of this important legislation. I appreciate all of the hard 
work that has been done on both sides of the aisle to make this 
reauthorization a bipartisan effort. I think it is very important that 
we make changes to this law, and I know there are some positive changes 
in this bill. I would just like to take a

[[Page H6081]]

second and remind folks of the progress that the Individuals With 
Disabilities Education Act has made during the past 20 years.
  In 1974, before the passage of IDEA, there were 70,655 children 
living in State institutions compared to 4,000 children in 1994. In 
1994, the average State institution expenditure was $82,256 per child. 
So it is clear that this law is saving the Government and taxpayers an 
awful lot of money.
  The number of students with disabilities completing high school with 
a diploma or certificate increased from 55 percent in 1984 10 years ago 
to 64 percent in 1992.
  According to a Harris poll, 44 percent of all people with 
disabilities have some college education today, compared to only 29 
percent in 1986. Forty-seven percent of people without disabilities 
have some college education.
  Fifty-seven percent of youth with disabilities are competitively 
employed within 5 years of leaving school today, compared to an 
employment rate of only 33 percent for older people with disabilities 
who have not benefited from IDEA.
  So it is clear this law is having a tremendous positive effect on the 
lives of individuals with disabilities, and I am supportive of 
continuing to make changes that strengthen the IEP process and involve 
regular education teachers and parents; coordinating education with 
health and social services; ensuring mediation is available to parents; 
and reducing some of the Federal burden on local school districts.
  By and large, I feel that we have made a great deal of progress on 
this legislation and I appreciate the bipartisan work that has been 
done to this end to strengthen the personnel standards provisions, 
eliminate the part H demonstration proposal, and strengthen the 
manifestation determination process. I do, still have a couple of 
concerns that I hope can be resolved during conference.
  Specifically I am still uncomfortable with the formula change and I 
would like to go on record in support of current law.
  Twenty years ago, when this law was adopted, Congress found that 1 
million children with disabilities were participating in regular school 
programs, but because their disabilities were undetected, they were 
prevented from having a successful school experience.
  This was the critical reason that Congress decided to base the IDEA 
formula on the numbers of students identified with disabilities, a law 
guaranteeing the free and appropriate education for these children, 
must have some mechanism for ensuring that children with disabilities 
are identified and served.
  In my State, 7 percent of the population is Native American. With 
50,000 native people and nearly 8,000 native children spread throughout 
7 reservations in very remote locations, it is extremely difficult to 
find children with disabilities in these areas. It is critical for 
Montana to have its State allocation based on the number of students 
with disabilities so that there is some incentive to reach out to this 
population and find those kids in desperate need of services.
  I have heard the argument that this formula may create some 
situations of overidentification in some areas or populations. But, it 
just does not make sense to me. If a State identifies a child with 
disabilities, they must then serve that child, and the Federal 
Government is not giving them nearly enough money to provide those 
services.
  I also have concerns that time is running short on getting this 
legislation through conference committee. The Senate is adamantly 
opposed to this change and we do not have the time to engage in a 
formula fight.
  I am also still very concerned to see this Congress moving in the 
direction of ceasing educational services for disabled children under 
certain circumstances. Cessation of services for any student with 
disabilities is simply not necessary to ensure the goal of school 
safety. The bill before us today already allows for the following 
actions to be taken for students who have engaged in serious misconduct 
involving weapons, drugs, or misbehavior causing serious injury: 
Students can be immediately suspended from school for up to 10 school 
days--2 weeks; school personnel can order a change in placement of the 
child to an interim alternative placement for an additional 45 school 
days--9 weeks. During this time, the school can review the child's 
placement, services, recommend changes in placement after the 45-day 
period concludes, or subject the child to other disciplinary 
procedures.
  I support these provisions, but fail to see how the cessation of 
educational services will result in anything other than harming our 
students with disabilities.
  It is important to consider the real life impact that cessation will 
have on these children as we consider changing a long-standing Federal 
commitment to educating children with disabilities.
  Students with disabilities who are expelled or suspended under 
current law are typically kids with learning disabilities or emotional 
problems. Research tells us that these are kids whose long-term 
prospects are very grim if they are separated from all educational 
services.
  The majority of kids with these disabilities who drop out of school 
are arrested. Their prospects for employment are poor. And, the odds 
are stacked against them for ever succeeding in the long-run.
  If we really care about our communities, and safe schools, we should 
be investing in continuing the services these individuals need to 
become good citizens, not cutting off any chance of beating the odds.

                              {time}  1545

  Mr. GOODLING. Madam Speaker, I encourage my colleague, the gentleman 
from Montana [Mr. Williams], to look at the new formula, and hopefully, 
since that is the direction the administration wanted to go, we can do 
something different than the Senate has done.
  Madam Speaker, I yield 2 minutes to the gentlewoman from Maryland 
[Mrs. Morella].
  Mrs. MORELLA. Madam Speaker, I thank the gentleman for yielding me 
the time.
  Madam Speaker, I rise in praise of Congressmen Bill Goodling, Randy 
Cunningham, and Dale Kildee, and all of the members of the Committee on 
Economic and Educational Opportunities for moving IDEA to the House 
floor. This is a very important piece of legislation that must be 
reauthorized this year. IDEA has made it possible for millions of 
children and youth with disabilities to gain an education. IDEA has 
enabled millions of children to grow up to become productive and 
contributing members of society.
  Let me share with you the story of Cecilia Pauley. Cecilia was born 
with Down's syndrome. She has loving parents and brothers and sisters 
who give her their time and attention, and have helped her with her 
school work.
  Cecilia attends a regular high school in Montgomery County, MD. She 
has been an inspiration to other students at the school. She works in 
the school nurse's office, and next year she will start college. 
Cecilia gives many speeches to large groups, and she inspires others to 
work up to their potential. Without IDEA, Cecilia could not have 
succeeded.
  Last week, I spoke at the graduation of two students at Stephen 
Knolls School in Montgomery County, MD--a school for multiply disabled. 
Anthony Barbaro and Laurie Springer and their families were uplifted by 
such caring education. They learned life skills. Principal Jane Jackson 
and staff are committed to the program.
  As a former teacher, I remember the days when, only two decades ago, 
disabled children were unserved and underserved. At a time when we, as 
a Nation, are upgrading our system of education to make our students 
more competitive globally, we cannot afford to lower our standards for 
any segment of our student population.
  Again, I commend Mr. Cunningham and Mr. Goodling for their excellent 
work in bringing this bill to the House floor.
  Mr. KILDEE. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, I would like to also thank people from the department 
who played a very important role in this: Judy Heuman, Tom Hehir, Carol 
Cichowski, Paul Riddle, Patricia Leahy, Theta Zwesa, Susan Craig, Judy 
Wurtzel, Connie Garner, and Susan Leonard.

[[Page H6082]]

  Madam Speaker, I yield 3 minutes to the gentleman from Indiana [Mr. 
Roemer].
  Mr. ROEMER. Madam Speaker, I thank the gentleman for yielding time to 
me.
  Madam Speaker, I too would like to join in some of the accolades and 
in commending the gentleman from Pennsylvania [Mr. Goodling] and the 
gentleman from California [Mr. Cunningham] on the Republican side, and 
the gentleman from Michigan [Mr. Kildee] and the gentleman from 
California [Mr. Clay] on the Democratic side; for this, truly, is 
legislation that has taken educational opportunities to equality for 
maybe young people that were not being served and were virtually being 
ignored. This is important legislation because this legislation will 
bring the sense of not just empathy to so many disabled young people, 
but efficiency to so many of these young people seeking an education, 
seeking to better themselves.
  Madam Speaker, we would think that with all these accolades, that 
this would be perfect legislation. I do not think that this body has 
ever dealt with perfect legislation. I would just point out one 
particular area of deep concern to me and why I think we need to 
continue to move this legislation in conference into a more fair manner 
in terms of the funding formula.
  Historically we have based our funding formula under IDEA on the 
basis of targeting it to those individuals who are disabled. When we 
marked this bill up in committee, a State like Indiana lost about 22 
percent of its funds not because we had a number of disabled people 
move out of our State and go to more populous States. We still have the 
same number of disabled; but many of these moneys now are being moved 
to more populous States because the formula has shifted from targeted 
to people with disabilities to targeted to States with bigger 
populations.

  Madam Speaker, while I recognize the chairman, in improving this bill 
and going from about a 22 percent loss in the State of Indiana, he now 
has incorporated the hold-harmless provision, we now go to about 11 
percent loss. I would encourage him, and I hope to work with him in 
conference so that I might represent my State in committee, in 
conference, and work to improve the formula so that it is judicious, it 
is fair to disabled children whether they live in South Bend, IN, or 
Sacramento, CA. We have to make sure they get these services.
  Madam Speaker, just as a final example, if we were doing wetlands 
legislation on the House floor, we would not target the wetlands 
legislation to the most populous States or base it upon population. We 
would say where are the wetlands? Are they in Indiana, or are more of 
them in the South or the North? This formula should not be based upon 
population, because each and every one of these disabled children 
deserves the equal opportunity to education that this reauthorization 
bill will bring to them. I encourage more movement toward a newer 
formula that is fair to all children.
  Mr. GOODLING. Madam Speaker, I yield myself 30 seconds.
  I would indicate, Madam Speaker, that the gentleman's State of 
Indiana will not lose any money for 5 years under this bill, and 
probably will ultimately not lose any money because of increasing 
appropriations. What we are trying to do in this bill is stop 
overidentification of children with disabilities and just serve those 
who really have disabilities. With this bill, we will eliminate the 
financial incentives for placing children into special education when 
they do not actually have disabilities. It is unfair to those children 
who, as I indicated earlier, are often black male children.
  But to ensure that education is not disrupted, this bill provides 
that 49 States lose nothing for 5 years and probably nothing ever as we 
increase the amount of money appropriated under this bill.
  Mr. MILLER of California. Madam Speaker, I would like to express my 
qualified support for H.R. 3268, the IDEA Improvement Act of 1996. 
While this bill makes some important changes in the 20-year-old law 
providing special education and related services to 5.8 million 
disabled children and youth, I have some serious reservations about 
several aspects of the bill. Nonetheless, I believe it is very 
important to move this legislation forward with the hopes that some of 
my remaining concerns will be satisfactorily resolved in conference 
with the Senate.
  I would like to especially thank Chairman Goodling for the spirit of 
bipartisanship that marked the latter days of our negotiations over 
this bill. The majority came a very long way in accommodating concerns 
that I shared with other members of the minority on the Opportunities 
Committee as well as with the parent, disability, and education groups 
that have such a vital stake in the future of IDEA.
  This legislation contains a number of provisions, many of which were 
taken from the administration bill, that will improve IDEA and bring 
the education of disabled children into the 21st century. These include 
requirements that schools hold disabled students to the highest 
possible standards and that they be accountable for educational 
results. The education of disabled children must be part and parcel of 
school reform. The bill also strengthens and improves provisions 
relating to the evaluation of disabled children and development of 
their individualized education programs, [IEP] to promote the 
participation of the child in the general curriculum while ensuring 
that the range of necessary services to address that child's needs 
remain available. I believe that provisions making the classroom 
teacher a fuller participant in the design as well as the 
implementation of the child's program are particularly valuable.
  In this regard, amendments added in committee by Mrs. Mink and Mr. 
Greenwood are well-crafted responses to concerns about disruptive 
disabled students that should ensure that the classroom teacher's 
concerns are taken into consideration. These amendments rightfully 
place the responsibility for addressing the disruptive disabled student 
in the IEP process. The purpose is to ensure that children with 
behavioral problems receive the proper support and services. It is 
imperative, however, that children with disabilities not be considered 
disruptive based on a lack of understanding of the nature of the 
disability or its effect on behavior, disruption caused by devices, 
accessibility, auxiliary aides, or services used by the child, a 
failure to provide services, including behavioral management, or 
behavior inherent to the disability itself, such as seizures.
  I have been particularly concerned about changes affecting due 
process rights of children under IDEA, those core protections that make 
this law work and provide the key balance of interests between parents 
and school districts. While I am pleased that a number of changes were 
accepted by the majority that increase my comfort level, including my 
amendments increasing due process protections for children who face 
cessation of services as a result of disciplinary actions, I remain 
troubled about several remaining issues.
  First and foremost is that the bill authorizes States to cease 
services for disabled children as a disciplinary measure, albeit on a 
highly restricted basis. This is wrong and the vast majority of 
education and disability groups agree. In California, the legislature 
recently passed a law that requires the provision of educational 
services to all expelled students. If the California Legislature can 
conclude that this sound educational and social policy does not 
compromise school safety then Congress should. Unfortunately, the 
Senate bill gives us no leeway to change this provision.
  Second, I believe that when an offense that will result in serious 
disciplinary action is the least bit subjective, only an objective 
party--a hearing officer--should have the authority to order a change 
in placement. The bill allows a principal to change a disabled child's 
placement for up to 55 schooldays under the loosely defined category 
serious injury, which means, among other things a verbal assault. Not 
only does this definition need to be tightened up, but the decision to 
change placement should certainly be that of a hearing officer rather 
than a school official.
  There are other areas I would like to see addressed in conference. 
For example, I am not convinced that a change in the interstate formula 
is merited or will resolve problems with overidentification. I do think 
that schools need to have a certain stake in child-find and that the 
current child-based formula provides this. I am also concerned about 
provisions allowing personnel standards to be waived, and would prefer 
to see the issue of personnel shortages to be handled with measures to 
increase the capacity of States to meet personnel needs. I am also very 
concerned that critical technological research and development for 
disabled children will come to a halt with the bill's ending 
discretionary authorities for such activities.
  We will have the opportunity to address most of these issues in 
conference, and it is with this confidence that I urge my colleagues to 
support this bill.
  Mr. GILMAN. Madam Speaker, I rise today in support of the Individuals 
with Disabilities Education Improvement Act [IDEA] and commend its 
sponsor, the distinguished chairman of the Subcommittee on Early 
Childhood, Youth and Families, Mr. Cunningham, and the

[[Page H6083]]

distinguished chairman of the Committee on Economic and Educational 
Opportunities, Mr. Goodling, for all of their diligent work in bringing 
this important bipartisan legislation to the floor.
  This measure effectively incorporates numerous initiatives that have 
been proposed by educators and school board members in my district. 
This bill seeks to give the classroom teacher the ability to maintain 
adequate discipline with regard to special education students. While 
previous law prohibited a school from suspending or expelling a 
disabled student for more than 10 days, except in the situation where 
the student has brought a gun to school, this bill provides for removal 
to an alternative placement for students who bring weapons to school, 
bring illegal drugs to school or illegally distribute legal drugs in 
schools, students who engage in assault or battery, and students, who 
by proof of substantial evidence present a danger to himself or others. 
I believe that this bill effectively addresses that issue of classroom 
safety, while still maintaining protection for the students against 
arbitrary placement changes.
  Furthermore this measure requires States to make mediation available 
to school authorities and parents who disagree over a disabled 
student's educational plan, instead of forcing the parties to move 
their dispute into the court. It is our hope that an increase in the 
use of mediation will reduce the acrimony involved in these disputes 
and will save money that has in the past been spent on attorney fees. 
Furthermore it is my hope that the new formula changes phased in over 
10 years will reduce over-identification and promote the effective use 
of government resources.
  Accordingly, Mr. Speaker, I urge my colleagues to support this worthy 
measure to reform our Nation's special education programs.
  Mr. FAWELL. Madam Speaker, I rise in support of H.R. 3268, the 
Individuals with Disabilities Education Act Improvement Act of 1996.
  In 1975, the original version of the Individuals with Disabilities 
Education Act [IDEA] was signed into law. This comprehensive statute, 
ensuring the right of children with disabilities to a free, appropriate 
public education, has guaranteed that over 5 million children with 
disabilities are provided the services they need to reach their 
educational goals.
  H.R. 3268 makes changes to provisions in IDEA which will improve the 
academic achievement of students by helping teachers identify classroom 
placements which most fit children's needs. The legislation will make 
necessary changes in provisions governing mediation and attorney's 
fees, ensuring that dollars for IDEA go to the education of children, 
not to court fees.
  The IDEA Improvement Act has bipartisan support and incorporates a 
majority of recommendations formulated by a broad group of disability 
organizations, education groups, parent representatives, and others. I 
am pleased at the support for this historic civil rights law and the 
House's commitment to providing teachers and families with the tools 
and training they need to help disabled students succeed in school.
  I commend Chairman Bill Goodling, and Subcommittee Chairman Duke 
Cunningham for their hard work on this bill, and urge the House's 
support.
  Mrs. MINK of Hawaii. Madam Speaker, I rise today to express my 
support for H.R. 3268, which reauthorizes the Individuals With 
Disabilities Education Act. This is not a perfect bill. There are some 
provisions that I have concerns about, however, the bill does go a long 
way to improve the current act and I believe will in the end improve 
educational services for children with disabilities.
  Since the enactment of the Education for All Handicapped Children Act 
in 1975, IDEA's predecessor, we have made tremendous strides in 
improving education for children with disabilities. This act, among 
other things, has stressed the importance of inclusion or mainstreaming 
children with disabilities into the regular classroom.
  As more children with disabilities have been included in regular 
classroom instruction, however, regular education teachers have not 
always been given the appropriate training, supplementary aids and 
services, and support to best meet the educational needs of disabled 
children in their classrooms. In addition, regular education teachers 
have had very little input into the educational plan for disabled 
children, known as an Individualized Education Plan [IEP] required for 
each child covered under IDEA.
  Ways to manage a child's behavior or even punish a child 
appropriately--if necessary--have not been clearly spelled out for 
regular education teachers. Can they use techniques used with other 
children? Are there special techniques to use for a particular disabled 
child? Many of these questions go unanswered and the regular education 
teacher often feels helpless to keep control over his/her classroom and 
appropriately deal with the child with a disability should the child 
act out, as all children tend to do from time to time.
  This bill recognizes these problems that have developed as the 
educational setting for disabled children has changed, and makes 
several key changes to IDEA which will assure that the regular 
education teacher is a much greater participant in the development of a 
child's education plan, so teachers do not feel that their hands are 
tied when it comes to children with disabilities.
  First, the bill includes the regular education classroom teacher as a 
member of the IEP team, and requires that this teacher participate in 
the development of the child's IEP. Second, the bill includes an 
amendment I authored which further clarifies that regular education 
teachers must be included in the development of specific part of the 
IEP, including a behavioral management plan of a child, supplementary 
aids and services needed for that child to participate in a regular 
classroom, and other support for school personnel to assure appropriate 
services to a disabled child in a regular classroom.
  Finally, another amendment added in committee requires that if a 
child with a disability has a pattern of severe disruptions within the 
classroom, the regular education teacher can convene an IEP team 
meeting and discuss what can be done, whether it is additional support 
and services in the classroom, or a change in placement for the child.
  These are important changes that will go a long way in assuring that 
all those involved in the education of disabled children, special 
education teachers, parents, administrators, and regular education 
teachers will be included in the effort to provide the best education 
possible for children with disabilities.
  Mrs. JOHNSON of Connecticut. Madam Speaker, I rise in strong support 
of H.R. 3268, the Individuals With Disabilities Education Improvement 
Act [IDEA] and commend Chairman Goodling and Subcommittee Chairman 
Cunningham for their thoughtful, fair, and important work on this 
issue. I am pleased that this bill received strong bipartisan support 
from the committee and that a broad coalition of interested groups was 
able to work together in the development of this legislation.
  I believe in the right of a child with a disability to a free, 
appropriate public education and I believe IDEA needed revision to 
assure the goals of our laws are achieved in a way that preserves 
opportunity for all and better reflects the advances that have been 
made in the area of special education. Also, we needed change so States 
can better manage the regulatory and financial burden of the current 
law so our resources can be more effectively focused on educational 
needs.
  Unfortunately, schools have had to spend valuable time and resources 
dealing with discipline and litigation problems that are wasting 
valuable education dollars and preventing a fair and consistent 
approach to schools' efforts to develop personal discipline in 
students. H.R. 3268 will help address these issues in a positive way to 
benefit all students in the Nation's schools.
  Mr. CASTLE. Madam Speaker, the Individuals With Disabilities Act has 
been in existence since 1975 to ensure that all children have access to 
a free and appropriate public education. Prior to the enactment of 
IDEA, disabled children were often denied adequate public education.
  Some studies have found that more than one-half of the children with 
disabilities in the United States did not receive appropriate 
educational services prior to enactment of IDEA, and 1 million children 
with disabilities were excluded entirely from public schools. IDEA has 
successfully helped States provide quality education to millions of 
disabled students across America. This legislation is critically 
important to millions of disabled children in America, not to mention 
their families, their friends, and their teachers.
  The bill updates IDEA for modern times, preserving its strengths and 
strengthening its weaknesses. For example, the bill makes IDEA more 
efficient by reducing redtape, while maintaining protections for 
disabled children. It makes schools safer by allowing schools to treat 
disabled children the same as nondisabled students where their behavior 
is not related to the child's disability. It increases parental 
involvement in key decisionmaking meetings about their child's 
education and placement. It provides teachers with the knowledge and 
training to effectively support students' learning. It gives States 
more flexibility in using resources. And it reduces the number of 
formal disputes by establishing premeditation systems where parties try 
to resolve their disagreements without lawyers.
  The bill also tries to address the problem of children being 
improperly and overly identified as disabled by modifying the funding 
formula for part B, which is the centerpiece of IDEA. The current 
formula gives funds to States on the basis of the number of students 
who have been identified as disabled. The proposed formula gives funds 
to States based on the number of school-aged children in the State and 
State poverty statistics. The new formula is phased in over 10 years. 
This formula change is intended to discourage the overidentification

[[Page H6084]]

of children with disabilities. I understand and support this policy 
objective. The proposed formula is more rational and meritorious than 
allowing local schools to identify disabled students.
  I was concerned, however, that this formula would hurt States that 
legitimately had higher rates of disability. Fortunately, the Committee 
on Economic and Educational Opportunities recognized the importance of 
protecting States, including small States like Delaware. The formula 
has been modified to prevent States from facing significant funding 
reductions which could have hampered their ability to provide a free 
and appropriate public education to disabled children.
  The committee had an important opportunity to improve IDEA and build 
on its previous successes, and it worked in a bipartisan manner to 
achieve this goal. I want to commend the committee leadership and staff 
for its excellent work in drafting this bill, and I urge my colleagues 
to give this bill their support.
  Mr. SAWYER. Madam Speaker, I would like to begin by thanking Chairman 
Goodling and Chairman Cunningham for their thoughtful work on this 
bill. IDEA is one law where common ground has always been possible, but 
never easy. Today, we are closer to that common ground than many 
thought probable a month ago. All of those who have had a hand in 
bringing us to this point deserve to be commended.
  When the markup of this bill was originally scheduled in our 
committee, I was concerned that we would have come away with a bill 
that no one was happy with, and I hoped that a postponement would give 
us time to reach bipartisan consensus. I sent a letter to Chairman 
Goodling explaining my concern. Chairman Goodling did postpone the 
markup from its originally scheduled time and today, after many hours 
of productive negotiations among the various groups with an interest in 
this bill as well as among those of us on the committee, we have a bill 
which is in many ways better than some thought possible.
  I am particularly pleased that the chairman decided to continue the 
authorization for a discretionary grant program for professional 
development as well as the requirement that States establish a 
comprehensive system of professional development. Although there are a 
few specific points that I hope we can clarify in conference 
negotiations with the Senate, it is important that we have included 
these two provisions.
  I have always believed that a strong system of professional 
development will fortify this bill. With changing technologies, methods 
of teaching, and the emerging and changing needs of today's children, a 
strong system of professional development is essential. We need to 
focus on developing and maintaining a force of qualified personnel to 
teach children with a wide range of special needs. Especially 
recognizing the considerable shortages of qualified special education 
teachers in some areas of this country, it is crucial that we take the 
lead at the national level by placing a high priority on providing for 
quality systems of professional teacher development.
  But professional development is not only important to maintaining a 
quality special education teaching force. Training and retraining is 
also necessary for teachers whose classroom management problems are 
complicated. Teachers in today's classrooms are addressing situations 
that they were never educated to deal with. I have every confidence 
that today's teachers can deal with these situations, but we need to 
recognize that they need and want the proper training to do so.
  I am confident that classrooms can be better life-learning 
environments when they contain many different children with many unique 
qualities and talents. However, a solid system of professional skills 
development is the key to making these classrooms good learning and 
teaching environments for everyone involved.
  This kind of comprehensive professional development is important on 
many levels. Our committee has had to balance questions of how to 
discipline children with disabilities in this bill, but I believe that 
this would not be such a prevalent issue if we had the resources to 
train teachers appropriately. Children whose needs are understood and 
accounted for, and teachers who are trained to manage special 
difficulties that arise, will need for the discipline provisions of 
this bill. I think we would all like to see that happen.
  Along with professional development, another key to making this bill 
work well is the ability to assess children's needs properly. I offered 
an amendment at the full committee level that was designed to add to 
the definition of evaluation in this bill to ensure that children's 
needs are properly assessed with technically sound instruments in all 
areas of their suspected disability before any decisions are made about 
how and where they can learn best. I am grateful that with a small 
amount of rewording, the chairman and I were able to come to an 
agreement on this amendment. It is now a part of the bill before us 
today. This was a fine example of bipartisanship and a willingness to 
find common ground.
  I know that this bill is not perfect in everyone's eyes, and I know 
that many of us have deep reservations about the Federal Government 
sanctioning cessation of educational services for any child. However, I 
think most of us now agree that it is a strong piece of legislation 
that will go far to improve and enhance education for disabled children 
and learning environments for all children.
  Thank you again to everyone who worked to make certain that the good 
that this law has done for disabled children over the past 20 years 
will continue.
  Mr. KILDEE. Madam Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. GOODLING. Madam Speaker, I have no further requests for time, and 
I yield back the balance of my time.
  The SPEAKER pro tempore (Ms. Greene of Utah). The question is on the 
motion offered by the gentleman from Pennsylvania [Mr. Goodling] that 
the House suspend the rules and pass the bill, H.R. 3268, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended was passed.
  A motion to reconsider was laid on the table.

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