[Congressional Record Volume 143, Number 62 (Tuesday, May 13, 1997)]
[House]
[Pages H2498-H2541]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     INDIVIDUALS WITH DISABILITIES EDUCATION ACT AMENDMENTS OF 1997

  Mr. GOODLING. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 5) 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. 5

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Individuals with 
     Disabilities Education Act Amendments of 1997''.
 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 Act may be cited as the 
     `Individuals with Disabilities Education Act'.
       ``(b) Table of Contents.--The table of contents for this 
     Act is as follows:

                      ``Part A--General Provisions

``Sec. 601. Short title; table of contents; findings; purposes.
``Sec. 602. Definitions.
``Sec. 603. Office of Special Education Programs.
``Sec. 604. Abrogation of State sovereign immunity.
``Sec. 605. Acquisition of equipment; construction or alteration of 
              facilities.
``Sec. 606. Employment of individuals with disabilities.
``Sec. 607. Requirements for prescribing regulations.

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

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

            ``Part C--Infants and Toddlers with Disabilities

``Sec. 631. Findings and policy.
``Sec. 632. Definitions.
``Sec. 633. General authority.
``Sec. 634. Eligibility.
``Sec. 635. Requirements for statewide system.
``Sec. 636. Individualized family service plan.
``Sec. 637. State application and assurances.
``Sec. 638. Uses of funds.
``Sec. 639. Procedural safeguards.
``Sec. 640. Payor of last resort.
``Sec. 641. State Interagency Coordinating Council.
``Sec. 642. Federal administration.
``Sec. 643. Allocation of funds.
``Sec. 644. Federal Interagency Coordinating Council.
``Sec. 645. Authorization of appropriations.

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


    ``subpart 1--state program improvement grants for children with 
                              disabilities

``Sec. 651. Findings and purpose.
``Sec. 652. Eligibility and collaborative process.
``Sec. 653. Applications.
``Sec. 654. Use of funds.
``Sec. 655. Minimum State grant amounts.
``Sec. 656. Authorization of appropriations.


  ``subpart 2--coordinated research, personnel preparation, technical 
         assistance, support, and dissemination of information

``Sec. 661. Administrative provisions.


      ``chapter 1--improving early intervention, educational, and 
   transitional services and results for children with disabilities 
         through coordinated research and personnel preparation

``Sec. 671. Findings and purpose.
``Sec. 672. Research and innovation to improve services and results for 
              children with disabilities.
``Sec. 673. Personnel preparation to improve services and results for 
              children with disabilities.
``Sec. 674. Studies and evaluations.


      ``chapter 2--improving early intervention, educational, and 
   transitional services and results for children with disabilities 
through coordinated technical assistance, support, and dissemination of 
                              information

``Sec. 681. Findings and purposes.
``Sec. 682. Parent training and information centers.
``Sec. 683. Community parent resource centers.
``Sec. 684. Technical assistance for parent training and information 
              centers.
``Sec. 685. Coordinated technical assistance and dissemination.
``Sec. 686. Authorization of appropriations.
``Sec. 687. Technology development, demonstration, and utilization, and 
              media services.
       ``(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

[[Page H2499]]

     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) Over 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) strengthening the role of parents and ensuring that 
     families of such children have meaningful opportunities to 
     participate in the education of their children at school and 
     at home;
       ``(C) coordinating this Act with other local, 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 
     pre-referral 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, for example: 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 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 2.3 times more 
     likely to be identified by their teacher as having mental 
     retardation than their white counterpart.
       ``(D) Although African-Americans represent 16 percent of 
     elementary and secondary enrollments, they constitute 21 
     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 1993, of the 915,000 college and university 
     professors, 4.9 percent were African-American and 2.4 percent 
     were Hispanic. Of the 2,940,000 teachers, prekindergarten 
     through high school, 6.8 percent were African-American and 
     4.1 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.
       ``(E) Ten years ago, 12 percent of the United States 
     teaching force in public elementary and secondary schools 
     were members of a minority group. Minorities comprised 21 
     percent of the national population at that time and were 
     clearly underrepresented then among employed teachers. Today, 
     the elementary and secondary teaching force is 13 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)(A) to ensure that all children with disabilities have 
     available to them a free appropriate public education that 
     emphasizes special education and related services designed to 
     meet their unique needs and prepare them for employment and 
     independent living;
       ``(B) to ensure that the rights of children with 
     disabilities and parents of such children are protected; and
       ``(C) to assist States, localities, educational service 
     agencies, and Federal agencies to provide for the education 
     of all children with disabilities;
       ``(2) to assist States in the implementation of a 
     statewide, comprehensive, coordinated, multidisciplinary, 
     interagency system of early intervention services for infants 
     and toddlers with disabilities and their families;
       ``(3) to ensure that educators and parents have the 
     necessary tools to improve educational results for children 
     with disabilities by supporting systemic-change activities; 
     coordinated research and personnel preparation; coordinated 
     technical assistance, dissemination, and support; and 
     technology development and media services; and
       ``(4) to assess, and ensure the effectiveness of, efforts 
     to educate children with disabilities.

     ``SEC. 602. DEFINITIONS.

       ``Except as otherwise provided, as used in this Act:
       ``(1) Assistive technology device.--The term `assistive 
     technology device' means any item, piece of equipment, or 
     product system, whether acquired commercially off the shelf, 
     modified, or customized, that is used to increase, maintain, 
     or improve functional capabilities of a child with a 
     disability.
       ``(2) Assistive technology service.--The term `assistive 
     technology service' means any service that directly assists a 
     child with a disability in the selection, acquisition, or use 
     of an assistive technology device. Such term includes--
       ``(A) the evaluation of the needs of such child, including 
     a functional evaluation of

[[Page H2500]]

     the child in the child's customary environment;
       ``(B) purchasing, leasing, or otherwise providing for the 
     acquisition of assistive technology devices by such child;
       ``(C) selecting, designing, fitting, customizing, adapting, 
     applying, maintaining, repairing, or replacing of assistive 
     technology devices;
       ``(D) coordinating and using other therapies, 
     interventions, or services with assistive technology devices, 
     such as those associated with existing education and 
     rehabilitation plans and programs;
       ``(E) training or technical assistance for such child, or, 
     where appropriate, the family of such child; and
       ``(F) training or technical assistance for professionals 
     (including individuals providing education and rehabilitation 
     services), employers, or other individuals who provide 
     services to, employ, or are otherwise substantially involved 
     in the major life functions of such child.
       ``(3) Child with a disability.--
       ``(A) In general.--The term `child with a disability' means 
     a child--
       ``(i) with mental retardation, hearing impairments 
     (including deafness), speech or language impairments, visual 
     impairments (including blindness), serious emotional 
     disturbance (hereinafter referred to as `emotional 
     disturbance'), orthopedic impairments, autism, traumatic 
     brain injury, other health impairments, or specific learning 
     disabilities; and
       ``(ii) who, by reason thereof, needs special education and 
     related services.
       ``(B) Child aged 3 through 9.--The term `child with a 
     disability' for a child aged 3 through 9 may, at the 
     discretion of the State and the local educational agency, 
     include a child--
       ``(i) experiencing developmental delays, as defined by the 
     State and as measured by appropriate diagnostic instruments 
     and procedures, in one or more of the following areas: 
     physical development, cognitive development, communication 
     development, social or emotional development, or adaptive 
     development; and
       ``(ii) who, by reason thereof, needs special education and 
     related services.
       ``(4) Educational service agency.--The term `educational 
     service agency'--
       ``(A) means a regional public multiservice agency--
       ``(i) authorized by State law to develop, manage, and 
     provide services or programs to local educational agencies; 
     and
       ``(ii) recognized as an administrative agency for purposes 
     of the provision of special education and related services 
     provided within public elementary and secondary schools of 
     the State; and
       ``(B) includes any other public institution or agency 
     having administrative control and direction over a public 
     elementary or secondary school.
       ``(5) Elementary school.--The term `elementary school' 
     means a nonprofit institutional day or residential school 
     that provides elementary education, as determined under State 
     law.
       ``(6) Equipment.--The term `equipment' includes--
       ``(A) machinery, utilities, and built-in equipment and any 
     necessary enclosures or structures to house such machinery, 
     utilities, or equipment; and
       ``(B) all other items necessary for the functioning of a 
     particular facility as a facility for the provision of 
     educational services, including items such as instructional 
     equipment and necessary furniture; printed, published, and 
     audio-visual instructional materials; telecommunications, 
     sensory, and other technological aids and devices; and books, 
     periodicals, documents, and other related materials.
       ``(7) Excess costs.--The term `excess costs' means those 
     costs that are in excess of the average annual per-student 
     expenditure in a local educational agency during the 
     preceding school year for an elementary or secondary school 
     student, as may be appropriate, and which shall be computed 
     after deducting--
       ``(A) amounts received--
       ``(i) under part B of this title;
       ``(ii) under part A of title I of the Elementary and 
     Secondary Education Act of 1965; or
       ``(iii) under part A of title VII of that Act; and
       ``(B) any State or local funds expended for programs that 
     would qualify for assistance under any of those parts.
       ``(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 Alaska 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).
       ``(12) Individualized family service plan.--The term 
     `individualized family service plan' has the meaning given 
     such term in section 636.
       ``(13) Infant or toddler with a disability.--The term 
     `infant or toddler with a disability' has the meaning given 
     such term in section 632.
       ``(14) 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.
       ``(15) Local educational agency.--
       ``(A) The term `local educational agency' means a public 
     board of education or other public authority legally 
     constituted within a State for either administrative control 
     or direction of, or to perform a service function for, public 
     elementary or secondary schools in a city, county, township, 
     school district, or other political subdivision of a State, 
     or for such combination of school districts or counties as 
     are recognized in a State as an administrative agency for its 
     public elementary or secondary schools.
       ``(B) The term includes--
       ``(i) an educational service agency, as defined in 
     paragraph (4); and
       ``(ii) any other public institution or agency having 
     administrative control and direction of a public elementary 
     or secondary school.
       ``(C) The term includes an elementary or secondary school 
     funded by the Bureau of Indian Affairs, but only to the 
     extent that such inclusion makes the school eligible for 
     programs for which specific eligibility is not provided to 
     the school in another provision of law and the school does 
     not have a student population that is smaller than the 
     student population of the local educational agency receiving 
     assistance under this Act with the smallest student 
     population, except that the school shall not be subject to 
     the jurisdiction of any State educational agency other than 
     the Bureau of Indian Affairs.
       ``(16) 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.
       ``(17) 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.
       ``(18) Outlying area.--The term `outlying area' means the 
     United States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands.
       ``(19) Parent.--The term `parent'--
       ``(A) includes a legal guardian; and
       ``(B) except as used in sections 615(b)(2) and 639(a)(5), 
     includes an individual assigned under either of those 
     sections to be a surrogate parent.
       ``(20) Parent organization.--The term `parent organization' 
     has the meaning given that term in section 682(g).
       ``(21) Parent training and information center.--The term 
     `parent training and information center' means a center 
     assisted under section 682 or 683.
       ``(22) 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.
       ``(23) Secondary school.--The term `secondary school' means 
     a nonprofit institutional day or residential school that 
     provides secondary education, as determined under State law, 
     except that it does not include any education beyond grade 
     12.
       ``(24) Secretary.--The term `Secretary' means the Secretary 
     of Education.
       ``(25) 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.
       ``(26) 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.

[[Page H2501]]

       ``(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.
       ``(27) State.--The term `State' means each of the 50 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, and each of the outlying areas.
       ``(28) 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.
       ``(29) Supplementary aids and services.--The term 
     `supplementary aids and services' means, aids, services, and 
     other supports that are provided in regular education classes 
     or other education-related settings to enable children with 
     disabilities to be educated with nondisabled children to the 
     maximum extent appropriate in accordance with section 
     612(a)(5).
       ``(30) Transition services.--The term `transition services' 
     means a coordinated set of activities for a student with a 
     disability that--
       ``(A) is 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) is based upon the individual student's needs, taking 
     into account the student's preferences and interests; and
       ``(C) includes instruction, related services, community 
     experiences, the development of employment and other post-
     school adult living objectives, and, when appropriate, 
     acquisition of daily living skills and functional vocational 
     evaluation.

     ``SEC. 603. OFFICE OF SPECIAL EDUCATION PROGRAMS.

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

     ``SEC. 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 Act.
       ``(b) Remedies.--In a suit against a State for a violation 
     of this Act, remedies (including remedies both at law and in 
     equity) are available for such a violation to the same extent 
     as those remedies are available for such a violation in the 
     suit against any public entity other than a State.
       ``(c) Effective Date.--Subsections (a) and (b) apply with 
     respect to violations that occur in whole or part after the 
     date of the enactment of the Education of the Handicapped Act 
     Amendments of 1990.

     ``SEC. 605. ACQUISITION OF EQUIPMENT; CONSTRUCTION OR 
                   ALTERATION OF FACILITIES.

       ``(a) In General.--If the Secretary determines that a 
     program authorized under this Act would be improved by 
     permitting program funds to be used to acquire appropriate 
     equipment, or to construct new facilities or alter existing 
     facilities, the Secretary is authorized to allow the use of 
     those funds for those purposes.
       ``(b) Compliance With Certain Regulations.--Any 
     construction of new facilities or alteration of existing 
     facilities under subsection (a) shall comply with the 
     requirements of--
       ``(1) appendix A of part 36 of title 28, Code of Federal 
     Regulations (commonly known as the `Americans with 
     Disabilities Accessibility Guidelines for Buildings and 
     Facilities'); or
       ``(2) appendix A of part 101-19.6 of title 41, Code of 
     Federal Regulations (commonly known as the `Uniform Federal 
     Accessibility Standards').

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

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

     ``SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

       ``(a) 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 Act 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 Act that would procedurally or 
     substantively lessen the protections provided to children 
     with disabilities under this Act, as embodied in regulations 
     in effect on July 20, 1983 (particularly as such protections 
     relate to parental consent to initial evaluation or initial 
     placement in special education, least restrictive 
     environment, related services, timelines, attendance of 
     evaluation personnel at individualized education program 
     meetings, or qualifications of personnel), except to the 
     extent that such regulation reflects the clear and 
     unequivocal intent of the Congress in legislation.
       ``(c) Policy Letters and Statements.--The Secretary may 
     not, through policy letters or other statements, establish a 
     rule that is required for compliance with, and eligibility 
     under, this part without following the requirements of 
     section 553 of title 5, United States Code.
       ``(d) 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.
       ``(e) Issues of National Significance.--If the Secretary 
     receives a written request regarding a policy, question, or 
     interpretation under part B of this Act, and determines that 
     it raises an issue of general interest or applicability of 
     national significance to the implementation of part B, the 
     Secretary shall--
       ``(1) include a statement to that effect in any written 
     response;
       ``(2) widely disseminate that response to State educational 
     agencies, local educational agencies, parent and advocacy 
     organizations, and other interested organizations, subject to 
     applicable laws relating to confidentiality of information; 
     and
       ``(3) not later than one year after the date on which the 
     Secretary responds to the written request, issue written 
     guidance on such policy, question, or interpretation through 
     such means as the Secretary determines to be appropriate and 
     consistent with law, such as a policy memorandum, notice of 
     interpretation, or notice of proposed rulemaking.
       ``(f) Explanation.--Any written response by the Secretary 
     under subsection (e) regarding a policy, question, or 
     interpretation under part B of this Act shall include an 
     explanation that the written response--
       ``(1) is provided as informal guidance and is not legally 
     binding; and
       ``(2) represents the interpretation by the Department of 
     Education of the applicable statutory or regulatory 
     requirements in the context of the specific facts presented.

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

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

       ``(a) Grants to States.--
       ``(1) Purpose of grants.--The Secretary shall make grants 
     to States and the outlying areas, and provide funds to the 
     Secretary of the Interior, to assist them to provide special 
     education and related services to children with disabilities 
     in accordance with this part.
       ``(2) Maximum amounts.--The maximum amount of the grant a 
     State may receive under this section for any fiscal year is--
       ``(A) the number of children with disabilities in the State 
     who are receiving special education and related services--
       ``(i) aged three through five if the State is eligible for 
     a grant under section 619; and
       ``(ii) aged six through 21; multiplied by
       ``(B) 40 percent of the average per-pupil expenditure in 
     public elementary and secondary schools in the United States.
       ``(b) Outlying Areas and Freely Associated States.--
       ``(1) Funds reserved.--From the amount appropriated for any 
     fiscal year under subsection (j), the Secretary shall reserve 
     not more than one percent, which shall be used--
       ``(A) to provide assistance to the outlying areas in 
     accordance with their respective populations of individuals 
     aged three through 21; and
       ``(B) for fiscal years 1998 through 2001, to carry out the 
     competition described in paragraph (2), except that the 
     amount reserved to carry out that competition shall not 
     exceed the amount reserved for fiscal year 1996 for the 
     competition under part B of this Act described under the 
     heading ``SPECIAL EDUCATION'' in Public Law 104-134.
       ``(2) Limitation for freely associated states.--
       ``(A) Competitive grants.--The Secretary shall use funds 
     described in paragraph (1)(B) to award grants, on a 
     competitive basis, to Guam, American Samoa, the Commonwealth 
     of the Northern Mariana Islands, and the freely associated 
     States to carry out the purposes of this part.

[[Page H2502]]

       ``(B) Award basis.--The Secretary shall award grants under 
     subparagraph (A) on a competitive basis, pursuant to the 
     recommendations of the Pacific Region Educational Laboratory 
     in Honolulu, Hawaii. Those recommendations shall be made by 
     experts in the field of special education and related 
     services.
       ``(C) Assistance requirements.--Any freely associated State 
     that wishes to receive funds under this part shall include, 
     in its application for assistance--
       ``(i) information demonstrating that it will meet all 
     conditions that apply to States under this part;
       ``(ii) an assurance that, notwithstanding any other 
     provision of this part, it will use those funds only for the 
     direct provision of special education and related services to 
     children with disabilities and to enhance its capacity to 
     make a free appropriate public education available to all 
     children with disabilities;
       ``(iii) the identity of the source and amount of funds, in 
     addition to funds under this part, that it will make 
     available to ensure that a free appropriate public education 
     is available to all children with disabilities within its 
     jurisdiction; and
       ``(iv) such other information and assurances as the 
     Secretary may require.
       ``(D) Termination of eligibility.--Notwithstanding any 
     other provision of law, the freely associated States shall 
     not receive any funds under this part for any program year 
     that begins after September 30, 2001.
       ``(E) Administrative costs.--The Secretary may provide not 
     more than five percent of the amount reserved for grants 
     under this paragraph to pay the administrative costs of the 
     Pacific Region Educational Laboratory under subparagraph (B).
       ``(3) Limitation.--An outlying area is not eligible for a 
     competitive award under paragraph (2) unless it receives 
     assistance under paragraph (1)(A).
       ``(4) Special rule.--The provisions of Public Law 95-134, 
     permitting the consolidation of grants by the outlying areas, 
     shall not apply to funds provided to those areas or to the 
     freely associated States under this section.
       ``(5) Eligibility for discretionary programs.--The freely 
     associated States shall be eligible to receive assistance 
     under subpart 2 of part D of this Act until September 30, 
     2001.
       ``(6) Definition.--As used in this subsection, the term 
     `freely associated States' means the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.
       ``(c) Secretary of the Interior.--From the amount 
     appropriated for any fiscal year under subsection (j), the 
     Secretary shall reserve 1.226 percent to provide assistance 
     to the Secretary of the Interior in accordance with 
     subsection (i).
       ``(d) Allocations to States.--
       ``(1) In general.--After reserving funds for studies and 
     evaluations under section 674(e), and for payments to the 
     outlying areas and the Secretary of the Interior under 
     subsections (b) and (c), the Secretary shall allocate the 
     remaining amount among the States in accordance with 
     paragraph (2) or subsection (e), as the case may be.
       ``(2) Interim formula.--Except as provided in subsection 
     (e), the Secretary shall allocate the amount described in 
     paragraph (1) among the States in accordance with section 
     611(a)(3), (4), and (5) and (b)(1), (2), and (3) of this Act, 
     as in effect prior to the enactment of the Individuals with 
     Disabilities Education Act Amendments of 1997, except that 
     the determination of the number of children with disabilities 
     receiving special education and related services under such 
     section 611(a)(3) may, at the State's discretion, be 
     calculated as of the last Friday in October or as of December 
     1 of the fiscal year for which the funds are appropriated.
       ``(e) Permanent Formula.--
       ``(1) Establishment of base year.--The Secretary shall 
     allocate the amount described in subsection (d)(1) among the 
     States in accordance with this subsection for each fiscal 
     year beginning with the first fiscal year for which the 
     amount appropriated under subsection (j) is more than 
     $4,924,672,200.
       ``(2) Use of base year.--
       ``(A) Definition.--As used in this subsection, the term 
     `base year' means the fiscal year preceding the first fiscal 
     year in which this subsection applies.
       ``(B) Special rule for use of base year amount.--If a State 
     received any funds under this section for the base year on 
     the basis of children aged three through five, but does not 
     make a free appropriate public education available to all 
     children with disabilities aged three through five in the 
     State in any subsequent fiscal year, the Secretary shall 
     compute the State's base year amount, solely for the purpose 
     of calculating the State's allocation in that subsequent year 
     under paragraph (3) or (4), by subtracting the amount 
     allocated to the State for the base year on the basis of 
     those children.
       ``(3) Increase in funds.--If the amount available for 
     allocations to States under paragraph (1) is equal to or 
     greater than the amount allocated to the States under this 
     paragraph for the preceding fiscal year, those allocations 
     shall be calculated as follows:
       ``(A)(i) Except as provided in subparagraph (B), the 
     Secretary shall--
       ``(I) allocate to each State the amount it received for the 
     base year;
       ``(II) allocate 85 percent of any remaining funds to States 
     on the basis of their relative populations of children aged 3 
     through 21 who are of the same age as children with 
     disabilities for whom the State ensures the availability of a 
     free appropriate public education under this part; and
       ``(III) allocate 15 percent of those remaining funds to 
     States on the basis of their relative populations of children 
     described in subclause (II) who are living in poverty.
       ``(ii) For the purpose of making grants under this 
     paragraph, the Secretary shall use the most recent population 
     data, including data on children living in poverty, that are 
     available and satisfactory to the Secretary.
       ``(B) Notwithstanding subparagraph (A), allocations under 
     this paragraph shall be subject to the following:
       ``(i) No State's allocation shall be less than its 
     allocation for the preceding fiscal year.
       ``(ii) No State's allocation shall be less than the 
     greatest of--

       ``(I) the sum of--

       ``(aa) the amount it received for the base year; and
       ``(bb) one third of one percent of the amount by which the 
     amount appropriated under subsection (j) exceeds the amount 
     appropriated under this section for the base year;

       ``(II) the sum of--

       ``(aa) the amount it received for the preceding fiscal 
     year; and
       ``(bb) that amount multiplied by the percentage by which 
     the increase in the funds appropriated from the preceding 
     fiscal year exceeds 1.5 percent; or

       ``(III) the sum of--

       ``(aa) the amount it received for the preceding fiscal 
     year; and
       ``(bb) that amount multiplied by 90 percent of the 
     percentage increase in the amount appropriated from the 
     preceding fiscal year.
       ``(iii) Notwithstanding clause (ii), no State's allocation 
     under this paragraph shall exceed the sum of--

       ``(I) the amount it received for the preceding fiscal year; 
     and
       ``(II) that amount multiplied by the sum of 1.5 percent and 
     the percentage increase in the amount appropriated.

       ``(C) If the amount available for allocations under this 
     paragraph is insufficient to pay those allocations in full, 
     those allocations shall be ratably reduced, subject to 
     subparagraph (B)(i).
       ``(4) Decrease in funds.--If the amount available for 
     allocations to States under paragraph (1) is less than the 
     amount allocated to the States under this section for the 
     preceding fiscal year, those allocations shall be calculated 
     as follows:
       ``(A) If the amount available for allocations is greater 
     than the amount allocated to the States for the base year, 
     each State shall be allocated the sum of--
       ``(i) the amount it received for the base year; and
       ``(ii) an amount that bears the same relation to any 
     remaining funds as the increase the State received for the 
     preceding fiscal year over the base year bears to the total 
     of all such increases for all States.
       ``(B)(i) If the amount available for allocations is equal 
     to or less than the amount allocated to the States for the 
     base year, each State shall be allocated the amount it 
     received for the base year.
       ``(ii) If the amount available is insufficient to make the 
     allocations described in clause (i), those allocations shall 
     be ratably reduced.
       ``(f) State-Level Activities.--
       ``(1) General.--
       ``(A) Each State may retain not more than the amount 
     described in subparagraph (B) for administration and other 
     State-level activities in accordance with paragraphs (2) and 
     (3).
       ``(B) For each fiscal year, the Secretary shall determine 
     and report to the State educational agency an amount that is 
     25 percent of the amount the State received under this 
     section for fiscal year 1997, cumulatively adjusted by the 
     Secretary for each succeeding fiscal year by the lesser of--
       ``(i) the percentage increase, if any, from the preceding 
     fiscal year in the State's allocation under this section; or
       ``(ii) the rate of inflation, as measured by the percentage 
     increase, if any, from the preceding fiscal year in the 
     Consumer Price Index For All Urban Consumers, published by 
     the Bureau of Labor Statistics of the Department of Labor.
       ``(C) A State may use funds it retains under subparagraph 
     (A) without regard to--
       ``(i) the prohibition on commingling of funds in section 
     612(a)(18)(B); and
       ``(ii) the prohibition on supplanting other funds in 
     section 612(a)(18)(C).
       ``(2) State administration.--
       ``(A) For the purpose of administering this part, including 
     section 619 (including the coordination of activities under 
     this part with, and providing technical assistance to, other 
     programs that provide services to children with 
     disabilities)--
       ``(i) each State may use not more than twenty percent of 
     the maximum amount it may retain under paragraph (1)(A) for 
     any fiscal year or $500,000 (adjusted by the cumulative rate 
     of inflation since fiscal year 1998, as measured by the 
     percentage increase, if any, in the Consumer Price Index For 
     All Urban Consumers, published by the Bureau of Labor 
     Statistics of the Department of Labor), whichever is greater; 
     and
       ``(ii) each outlying area may use up to five percent of the 
     amount it receives under this

[[Page H2503]]

     section for any fiscal year or $35,000, whichever is greater.
       ``(B) Funds described in subparagraph (A) may also be used 
     for the administration of part C of this Act, if the State 
     educational agency is the lead agency for the State under 
     that part.
       ``(3) Other state-level activities.--Each State shall use 
     any funds it retains under paragraph (1) and does not use for 
     administration under paragraph (2) for any of the following:
       ``(A) Support and direct services, including technical 
     assistance and personnel development and training.
       ``(B) Administrative costs of monitoring and complaint 
     investigation, but only to the extent that those costs exceed 
     the costs incurred for those activities during fiscal year 
     1985.
       ``(C) To establish and implement the mediation process 
     required by section 615(e), including providing for the costs 
     of mediators and support personnel.
       ``(D) To assist local educational agencies in meeting 
     personnel shortages.
       ``(E) To develop a State Improvement Plan under subpart 1 
     of part D.
       ``(F) Activities at the State and local levels to meet the 
     performance goals established by the State under section 
     612(a)(16) and to support implementation of the State 
     Improvement Plan under subpart 1 of part D if the State 
     receives funds under that subpart.
       ``(G) To supplement other amounts 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. This system shall be coordinated with and, to the 
     extent appropriate, build on the system of coordinated 
     services developed by the State under part C of this Act.
       ``(H) For subgrants to local educational agencies for the 
     purposes described in paragraph (4)(A).
       ``(4)(A) Subgrants to Local Educational Agencies for 
     Capacity-Building and Improvement.--In any fiscal year in 
     which the percentage increase in the State's allocation under 
     this section exceeds the rate of inflation (as measured by 
     the percentage increase, if any, from the preceding fiscal 
     year in the Consumer Price Index For All Urban Consumers, 
     published by the Bureau of Labor Statistics of the Department 
     of Labor), each State shall reserve, from its allocation 
     under this section, the amount described in subparagraph (B) 
     to make subgrants to local educational agencies, unless that 
     amount is less than $100,000, to assist them in providing 
     direct services and in making systemic change to improve 
     results for children with disabilities through one or more of 
     the following:
       ``(i) Direct services, including alternative programming 
     for children who have been expelled from school, and services 
     for children in correctional facilities, children enrolled in 
     State-operated or State-supported schools, and children in 
     charter schools.
       ``(ii) Addressing needs or carrying out improvement 
     strategies identified in the State's Improvement Plan under 
     subpart 1 of part D.
       ``(iii) Adopting promising practices, materials, and 
     technology, based on knowledge derived from education 
     research and other sources.
       ``(iv) Establishing, expanding, or implementing interagency 
     agreements and arrangements between local educational 
     agencies and other agencies or organizations concerning the 
     provision of services to children with disabilities and their 
     families.
       ``(v) Increasing cooperative problem-solving between 
     parents and school personnel and promoting the use of 
     alternative dispute resolution.
       ``(B) Maximum subgrant.--For each fiscal year, the amount 
     referred to in subparagraph (A) is--
       ``(i) the maximum amount the State was allowed to retain 
     under paragraph (1)(A) for the prior fiscal year, or for 
     fiscal year 1998, 25 percent of the State's allocation for 
     fiscal year 1997 under this section; multiplied by
       ``(ii) the difference between the percentage increase in 
     the State's allocation under this section and the rate of 
     inflation, as measured by the percentage increase, if any, 
     from the preceding fiscal year in the Consumer Price Index 
     For All Urban Consumers, published by the Bureau of Labor 
     Statistics of the Department of Labor.
       ``(5) Report on Use of Funds.--As part of the information 
     required to be submitted to the Secretary under section 612, 
     each State shall annually describe--
       ``(A) how amounts retained under paragraph (1) will be used 
     to meet the requirements of this part;
       ``(B) how those amounts will be allocated among the 
     activities described in paragraphs (2) and (3) to meet State 
     priorities based on input from local educational agencies; 
     and
       ``(C) the percentage of those amounts, if any, that will be 
     distributed to local educational agencies by formula.
       ``(g) Subgrants to Local Educational Agencies.--
       ``(1) Subgrants required.--Each State that receives a grant 
     under this section for any fiscal year shall distribute any 
     funds it does not retain under subsection (f) (at least 75 
     percent of the grant funds) 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) of this Act for fiscal year 1997, as then in 
     effect, and have established their eligibility under section 
     613, for use in accordance with this part.
       ``(2) Allocations to local educational agencies.--
       ``(A) Interim procedure.--For each fiscal year for which 
     funds are allocated to States under subsection (d)(2), each 
     State shall allocate funds under paragraph (1) in accordance 
     with section 611(d) of this Act, as in effect prior to the 
     enactment of the Individuals with Disabilities Education Act 
     Amendments of 1997.
       ``(B) Permanent procedure.--For each fiscal year for which 
     funds are allocated to States under subsection (e), each 
     State shall allocate funds under paragraph (1) as follows:
       ``(i) Base payments.--The State shall first award each 
     agency described in paragraph (1) the amount that agency 
     would have received under this section for the base year, as 
     defined in subsection (e)(2)(A), if the State had distributed 
     75 percent of its grant for that year under section 611(d), 
     as then in effect.
       ``(ii) Allocation of remaining funds.--After making 
     allocations under clause (i), the State shall--

       ``(I) allocate 85 percent of any remaining funds to those 
     agencies on the basis of the relative numbers of children 
     enrolled in public and private elementary and secondary 
     schools within the agency's jurisdiction; and
       ``(II) allocate 15 percent of those remaining funds to 
     those agencies in accordance with their relative numbers of 
     children living in poverty, as determined by the State 
     educational agency.

       ``(3) Former chapter 1 state agencies.--
       ``(A) To the extent necessary, the State--
       ``(i) shall use funds that are available under subsection 
     (f)(1)(A) to ensure that each State agency that received 
     fiscal year 1994 funds under subpart 2 of part D of chapter 1 
     of title I of the Elementary and Secondary Education Act of 
     1965 receives, from the combination of funds under subsection 
     (f)(1)(A) and funds provided under paragraph (1) of this 
     subsection, an amount equal to--

       ``(I) the number of children with disabilities, aged 6 
     through 21, 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 
     limitation in subparagraph (B); multiplied by
       ``(II) the per-child amount provided under such subpart for 
     fiscal year 1994; and

       ``(ii) may use those funds 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 subsection (f)(1)(A) and funds provided under 
     paragraph (1) of this subsection, an amount for each such 
     child, aged 3 through 21 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.
       ``(B) The number of children counted under subparagraph 
     (A)(i)(I) shall not exceed the number of children aged 3 
     through 21 for whom the agency received fiscal year 1994 
     funds under subpart 2 of part D of chapter 1 of title I of 
     the Elementary and Secondary Education Act of 1965.
       ``(4) Reallocation of funds.--If a State educational agency 
     determines that a local educational agency is adequately 
     providing a free appropriate public education to all children 
     with disabilities residing in the area served by that agency 
     with State and local funds, the State educational agency may 
     reallocate any portion of the funds under this part that are 
     not needed by that local agency to provide a free appropriate 
     public education to other local educational agencies in the 
     State that are not adequately providing special education and 
     related services to all children with disabilities residing 
     in the areas they serve.
       ``(h) Definitions.--For the purpose of this section--
       ``(1) the term `average per-pupil expenditure in public 
     elementary and secondary schools in the United States' 
     means--
       ``(A) without regard to the source of funds--
       ``(i) the aggregate current expenditures, during the second 
     fiscal year preceding the fiscal year for which the 
     determination is made (or, if satisfactory data for that year 
     are not available, during the most recent preceding fiscal 
     year for which satisfactory data are available) of all local 
     educational agencies in the 50 States and the District of 
     Columbia); plus
       ``(ii) any direct expenditures by the State for the 
     operation of those agencies; divided by
       ``(B) the aggregate number of children in average daily 
     attendance to whom those agencies provided free public 
     education during that preceding year; and
       ``(2) the term `State' means each of the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.
       ``(i) Use of Amounts by Secretary of the Interior.--
       ``(1) Provision of amounts for assistance.--
       ``(A) In general.--The Secretary of Education shall provide 
     amounts to the Secretary of the Interior to meet the need for 
     assistance for the education of children with

[[Page H2504]]

     disabilities on reservations aged 5 to 21, inclusive, 
     enrolled in elementary and secondary schools for Indian 
     children operated or funded by the Secretary of the Interior. 
     The amount of such payment for any fiscal year shall be equal 
     to 80 percent of the amount allotted under subsection (c) for 
     that fiscal year.
       ``(B) Calculation of number of children.--In the case of 
     Indian students aged 3 to 5, inclusive, who are enrolled in 
     programs affiliated with the Bureau of Indian Affairs 
     (hereafter in this subsection referred to as `BIA') schools 
     and that are required by the States in which such schools are 
     located to attain or maintain State accreditation, and which 
     schools have such accreditation prior to the date of 
     enactment of the Individuals with Disabilities Education Act 
     Amendments of 1991, the school shall be allowed to count 
     those children for the purpose of distribution of the funds 
     provided under this paragraph to the Secretary of the 
     Interior. The Secretary of the Interior shall be responsible 
     for meeting all of the requirements of this part for these 
     children, in accordance with paragraph (2).
       ``(C) Additional requirement.--With respect to all other 
     children aged 3 to 21, inclusive, on reservations, the State 
     educational agency shall be responsible for ensuring that all 
     of the requirements of this part are implemented.
       ``(2) Submission of information.--The Secretary of 
     Education may provide the Secretary of the Interior amounts 
     under paragraph (1) for a fiscal year only if the Secretary 
     of the Interior submits to the Secretary of Education 
     information that--
       ``(A) demonstrates that the Department of the Interior 
     meets the appropriate requirements, as determined by the 
     Secretary of Education, of sections 612 (including monitoring 
     and evaluation activities) and 613;
       ``(B) includes a description of how the Secretary of the 
     Interior will coordinate the provision of services under this 
     part with local educational agencies, tribes and tribal 
     organizations, and other private and Federal service 
     providers;
       ``(C) includes an assurance that there are public hearings, 
     adequate notice of such hearings, and an opportunity for 
     comment afforded to members of tribes, tribal governing 
     bodies, and affected local school boards before the adoption 
     of the policies, programs, and procedures described in 
     subparagraph (A);
       ``(D) includes an assurance that the Secretary of the 
     Interior will provide such information as the Secretary of 
     Education may require to comply with section 618;
       ``(E) includes an assurance that the Secretary of the 
     Interior and the Secretary of Health and Human Services have 
     entered into a memorandum of agreement, to be provided to the 
     Secretary of Education, for the coordination of services, 
     resources, and personnel between their respective Federal, 
     State, and local offices and with State and local educational 
     agencies and other entities to facilitate the provision of 
     services to Indian children with disabilities residing on or 
     near reservations (such agreement shall provide for the 
     apportionment of responsibilities and costs including, but 
     not limited to, child find, evaluation, diagnosis, 
     remediation or therapeutic measures, and (where appropriate) 
     equipment and medical or personal supplies as needed for a 
     child to remain in school or a program); and
       ``(F) includes an assurance that the Department of the 
     Interior will cooperate with the Department of Education in 
     its exercise of monitoring and oversight of this application, 
     and any agreements entered into between the Secretary of the 
     Interior and other entities under this part, and will fulfill 
     its duties under this part.
     Section 616(a) shall apply to the information described in 
     this paragraph.
       ``(3) Payments for education and services for indian 
     children with disabilities aged 3 through 5.--
       ``(A) In general.--With funds appropriated under subsection 
     (j), the Secretary of Education shall make payments to the 
     Secretary of the Interior to be distributed to tribes or 
     tribal organizations (as defined under section 4 of the 
     Indian Self-Determination and Education Assistance Act) or 
     consortia of the above to provide for the coordination of 
     assistance for special education and related services for 
     children with disabilities aged 3 through 5 on reservations 
     served by elementary and secondary schools for Indian 
     children operated or funded by the Department of the 
     Interior. The amount of such payments under subparagraph (B) 
     for any fiscal year shall be equal to 20 percent of the 
     amount allotted under subsection (c).
       ``(B) Distribution of funds.--The Secretary of the Interior 
     shall distribute the total amount of the payment under 
     subparagraph (A) by allocating to each tribe or tribal 
     organization an amount based on the number of children with 
     disabilities ages 3 through 5 residing on reservations as 
     reported annually, divided by the total of those children 
     served by all tribes or tribal organizations.
       ``(C) Submission of information.--To receive a payment 
     under this paragraph, the tribe or tribal organization shall 
     submit such figures to the Secretary of the Interior as 
     required to determine the amounts to be allocated under 
     subparagraph (B). This information shall be compiled and 
     submitted to the Secretary of Education.
       ``(D) Use of funds.--The funds received by a tribe or 
     tribal organization shall be used to assist in child find, 
     screening, and other procedures for the early identification 
     of children aged 3 through 5, parent training, and the 
     provision of direct services. These activities may be carried 
     out directly or through contracts or cooperative agreements 
     with the BIA, local educational agencies, and other public or 
     private nonprofit organizations. The tribe or tribal 
     organization is encouraged to involve Indian parents in the 
     development and implementation of these activities. The above 
     entities shall, as appropriate, make referrals to local, 
     State, or Federal entities for the provision of services or 
     further diagnosis.
       ``(E) 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 the plan, the Secretary 
     of the Interior shall consult with all interested and 
     involved parties. It shall be based on the needs of the 
     children and the system best suited for meeting those needs, 
     and may involve the establishment of cooperative agreements 
     between the BIA, other Federal agencies, and other entities. 
     The plan shall also be distributed upon request to States, 
     State and local educational agencies, and other agencies 
     providing services to infants, toddlers, and children with 
     disabilities, to tribes, and to other interested parties.
       ``(5) Establishment of advisory board.--To meet the 
     requirements of section 612(a)(21), the Secretary of the 
     Interior shall establish, not later than 6 months after the 
     date of the enactment of the Individuals with Disabilities 
     Education Act Amendments of 1997, under the BIA, an advisory 
     board composed of individuals involved in or concerned with 
     the education and provision of services to Indian infants, 
     toddlers, children, and youth with disabilities, including 
     Indians with disabilities, Indian parents or guardians of 
     such children, teachers, service providers, State and local 
     educational officials, representatives of tribes or tribal 
     organizations, representatives from State Interagency 
     Coordinating Councils under section 641 in States having 
     reservations, and other members representing the various 
     divisions and entities of the BIA. The chairperson shall be 
     selected by the Secretary of the Interior. The advisory board 
     shall--
       ``(A) assist in the coordination of services within the BIA 
     and with other local, State, and Federal agencies in the 
     provision of education for infants, toddlers, and children 
     with disabilities;
       ``(B) advise and assist the Secretary of the Interior in 
     the performance of the Secretary's responsibilities described 
     in this subsection;
       ``(C) develop and recommend policies concerning effective 
     inter- and intra-agency collaboration, including 
     modifications to regulations, and the elimination of barriers 
     to inter- and intra-agency programs and activities;
       ``(D) provide assistance and disseminate information on 
     best practices, effective program coordination strategies, 
     and recommendations for improved educational programming for 
     Indian infants, toddlers, and children with disabilities; and
       ``(E) provide assistance in the preparation of information 
     required under paragraph (2)(D).
       ``(6) Annual reports.--
       ``(A) In general.--The advisory board established under 
     paragraph (5) shall prepare and submit to the Secretary of 
     the Interior and to the Congress an annual report containing 
     a description of the activities of the advisory board for the 
     preceding year.
       ``(B) Availability.--The Secretary of the Interior shall 
     make available to the Secretary of Education the report 
     described in subparagraph (A).
       ``(j) Authorization of Appropriations.--For the purpose of 
     carrying out this part, other than section 619, there are 
     authorized to be appropriated such sums as may be necessary.

     ``SEC. 612. STATE ELIGIBILITY.

       ``(a) In General.--A State is eligible for assistance under 
     this part for a fiscal year if the State 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 conditions:
       ``(1) Free appropriate public education.--

[[Page H2505]]

       ``(A) In general.--A free appropriate public education is 
     available to all children with disabilities residing in the 
     State between the ages of 3 and 21, inclusive, including 
     children with disabilities who have been suspended or 
     expelled from school.
       ``(B) Limitation.--The obligation to make a free 
     appropriate public education available to all children with 
     disabilities does not apply with respect to children:
       ``(i) aged 3 through 5 and 18 through 21 in a State to the 
     extent that its application to those children would be 
     inconsistent with State law or practice, or the order of any 
     court, respecting the provision of public education to 
     children in those age ranges; and
       ``(ii) aged 18 through 21 to the extent that State law does 
     not require that special education and related services under 
     this part be provided to children with disabilities who, in 
     the educational placement prior to their incarceration in an 
     adult correctional facility:

       ``(I) were not actually identified as being a child with a 
     disability under section 602(3) of this Act; or
       ``(II) did not have an Individualized Education Program 
     under this part.

       ``(2) Full educational opportunity goal.--The State has 
     established a goal of providing full educational opportunity 
     to all children with disabilities and a detailed timetable 
     for accomplishing that goal.
       ``(3) Child find.--
       ``(A) In general.--All children with disabilities residing 
     in the State, including children with disabilities attending 
     private schools, regardless of the severity of their 
     disabilities, and who are in need of special education and 
     related services, are identified, located, and evaluated and 
     a practical method is developed and implemented to determine 
     which children with disabilities are currently receiving 
     needed special education and related services.
       ``(B) Construction.--Nothing in this Act requires that 
     children be classified by their disability so long as each 
     child who has a disability listed in section 602 and who, by 
     reason of that disability, needs special education and 
     related services is regarded as a child with a disability 
     under this part.
       ``(4) Individualized education program.--An individualized 
     education program, or an individualized family service plan 
     that meets the requirements of section 636(d), is developed, 
     reviewed, and revised for each child with a disability in 
     accordance with section 614(d).
       ``(5) Least restrictive environment.--
       ``(A) In general.--To the maximum extent appropriate, 
     children with disabilities, including children in public or 
     private institutions or other care facilities, are educated 
     with children who are not disabled, and special classes, 
     separate schooling, or other removal of children with 
     disabilities from the regular educational environment occurs 
     only when the nature or severity of the disability of a child 
     is such that education in regular classes with the use of 
     supplementary aids and services cannot be achieved 
     satisfactorily.
       ``(B) Additional requirement.--
       ``(i) In general.--If the State uses a funding mechanism by 
     which the State distributes State funds on the basis of the 
     type of setting in which a child is served, the funding 
     mechanism does not result in placements that violate the 
     requirements of subparagraph (A).
       ``(ii) Assurance.--If the State does not have policies and 
     procedures to ensure compliance with clause (i), the State 
     shall provide the Secretary an assurance that it will revise 
     the funding mechanism as soon as feasible to ensure that such 
     mechanism does not result in such placements.
       ``(6) Procedural safeguards.--
       ``(A) In general.--Children with disabilities and their 
     parents are afforded the procedural safeguards required by 
     section 615.
       ``(B) Additional procedural safeguards.--Procedures to 
     ensure that testing and evaluation materials and procedures 
     utilized for the purposes of evaluation and placement of 
     children with disabilities will be selected and administered 
     so as not to be racially or culturally discriminatory. Such 
     materials or procedures shall be provided and administered in 
     the child's native language or mode of communication, unless 
     it clearly is not feasible to do so, and no single procedure 
     shall be the sole criterion for determining an appropriate 
     educational program for a child.
       ``(7) Evaluation.--Children with disabilities are evaluated 
     in accordance with subsections (a) through (c) of section 
     614.
       ``(8) Confidentiality.--Agencies in the State comply with 
     section 617(c) (relating to the confidentiality of records 
     and information).
       ``(9) Transition from part c to preschool programs.--
     Children participating in early-intervention programs 
     assisted under part C, and who will participate in preschool 
     programs assisted under this part, experience a smooth and 
     effective transition to those preschool programs in a manner 
     consistent with section 637(a)(8). By the third birthday of 
     such a child, an individualized education program or, if 
     consistent with sections 614(d)(2)(B) and 636(d), an 
     individualized family service plan, has been developed and is 
     being implemented for the child. The local educational agency 
     will participate in transition planning conferences arranged 
     by the designated lead agency under section 637(a)(8).
       ``(10) Children in private schools.--
       ``(A) Children enrolled in private schools by their 
     parents.--
       ``(i) In general.--To the extent consistent with the number 
     and location of children with disabilities in the State who 
     are enrolled by their parents in private elementary and 
     secondary schools, provision is made for the participation of 
     those children in the program assisted or carried out under 
     this part by providing for such children special education 
     and related services in accordance with the following 
     requirements, unless the Secretary has arranged for services 
     to those children under subsection (f):

       ``(I) Amounts expended for the provision of those services 
     by a local educational agency shall be equal to a 
     proportionate amount of Federal funds made available under 
     this part.
       ``(II) Such services may be provided to children with 
     disabilities on the premises of private, including parochial, 
     schools, to the extent consistent with law.

       ``(ii) Child-find requirement.--The requirements of 
     paragraph (3) of this subsection (relating to child find) 
     shall apply with respect to children with disabilities in the 
     State who are enrolled in private, including parochial, 
     elementary and secondary schools.
       ``(B) Children placed in, or referred to, private schools 
     by public agencies.--
       ``(i) In general.--Children with disabilities in private 
     schools and facilities are provided special education and 
     related services, in accordance with an individualized 
     education program, at no cost to their parents, if such 
     children are placed in, or referred to, such schools or 
     facilities by the State or appropriate local educational 
     agency as the means of carrying out the requirements of this 
     part or any other applicable law requiring the provision of 
     special education and related services to all children with 
     disabilities within such State.
       ``(ii) Standards.--In all cases described in clause (i), 
     the State educational agency shall determine whether such 
     schools and facilities meet standards that apply to State and 
     local educational agencies and that children so served have 
     all the rights they would have if served by such agencies.
       ``(C) Payment for education of children enrolled in private 
     schools without consent of or referral by the public 
     agency.--
       ``(i) In general.--Subject to subparagraph (A), this part 
     does not require a local educational agency to pay for the 
     cost of education, including special education and related 
     services, of a child with a disability at a private school or 
     facility if that agency made a free appropriate public 
     education available to the child and the parents elected to 
     place the child in such private school or facility.
       ``(ii) Reimbursement for private school placement.--If the 
     parents of a child with a disability, who previously received 
     special education and related services under the authority of 
     a public agency, enroll the child in a private elementary or 
     secondary school without the consent of or referral by the 
     public agency, a court or a hearing officer may require the 
     agency to reimburse the parents for the cost of that 
     enrollment if the court or hearing officer finds that the 
     agency had not made a free appropriate public education 
     available to the child in a timely manner prior to that 
     enrollment.
       ``(iii) Limitation on reimbursement.--The cost of 
     reimbursement described in clause (ii) may be reduced or 
     denied--

       ``(I) if--

       ``(aa) at the most recent IEP meeting that the parents 
     attended prior to removal of the child from the public 
     school, the parents did not inform the IEP team that they 
     were rejecting the placement proposed by the public agency to 
     provide a free appropriate public education to their child, 
     including stating their concerns and their intent to enroll 
     their child in a private school at public expense; or
       ``(bb) 10 business days (including any holidays that occur 
     on a business day) prior to the removal of the child from the 
     public school, the parents did not give written notice to the 
     public agency of the information described in division (aa);

       ``(II) if, prior to the parents' removal of the child from 
     the public school, the public agency informed the parents, 
     through the notice requirements described in section 
     615(b)(7), of its intent to evaluate the child (including a 
     statement of the purpose of the evaluation that was 
     appropriate and reasonable), but the parents did not make the 
     child available for such evaluation; or
       ``(III) upon a judicial finding of unreasonableness with 
     respect to actions taken by the parents.

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

       ``(I) the parent is illiterate and cannot write in English;
       ``(II) compliance with clause (iii)(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 parents had not received notice, pursuant to 
     section 615, of the notice requirement in clause (iii)(I).

       ``(11) State educational agency responsible for general 
     supervision.--
       ``(A) In general.--The State educational agency is 
     responsible for ensuring that--
       ``(i) the requirements of this part are met; and

[[Page H2506]]

       ``(ii) all educational programs for children with 
     disabilities in the State, including all such programs 
     administered by any other State or local agency--

       ``(I) are under the general supervision of individuals in 
     the State who are responsible for educational programs for 
     children with disabilities; and
       ``(II) meet the educational standards of the State 
     educational agency.

       ``(B) Limitation.--Subparagraph (A) shall not limit the 
     responsibility of agencies in the State other than the State 
     educational agency to provide, or pay for some or all of the 
     costs of, a free appropriate public education for any child 
     with a disability in the State.
       ``(C) Exception.--Notwithstanding subparagraphs (A) and 
     (B), the Governor (or another individual pursuant to State 
     law), consistent with State law, may assign to any public 
     agency in the State the responsibility of ensuring that the 
     requirements of this part are met with respect to children 
     with disabilities who are convicted as adults under State law 
     and incarcerated in adult prisons.
       ``(12) 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 State 
     educational agency, in order to ensure that all services 
     described in subparagraph (B)(i) that are needed to ensure a 
     free appropriate public education are provided, including the 
     provision of such services during the pendency of any dispute 
     under clause (iii). Such agreement or mechanism shall include 
     the following:
       ``(i) Agency financial responsibility.--An identification 
     of, or a method for defining, the financial responsibility of 
     each agency for providing services described in subparagraph 
     (B)(i) to ensure a free appropriate public education to 
     children with disabilities, provided that the financial 
     responsibility of each public agency described in 
     subparagraph (B), including the State Medicaid agency and 
     other public insurers of children with disabilities, shall 
     precede the financial responsibility of the local educational 
     agency (or the State agency responsible for developing the 
     child's IEP).
       ``(ii) Conditions and terms of reimbursement.--The 
     conditions, terms, and procedures under which a local 
     educational agency shall be reimbursed by other agencies.
       ``(iii) Interagency disputes.--Procedures for resolving 
     interagency disputes (including procedures under which local 
     educational agencies may initiate proceedings) under the 
     agreement or other mechanism to secure reimbursement from 
     other agencies or otherwise implement the provisions of the 
     agreement or mechanism.
       ``(iv) Coordination of services procedures.--Policies and 
     procedures for agencies to determine and identify the 
     interagency coordination responsibilities of each agency to 
     promote the coordination and timely and appropriate delivery 
     of services described in subparagraph (B)(i).
       ``(B) Obligation of public agency.--
       ``(i) In general.--If any public agency other than an 
     educational agency is otherwise obligated under Federal or 
     State law, or assigned responsibility under State policy 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(22) relating to related services, 602(29) relating to 
     supplementary aids and services, and 602(30) 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 responsible for developing the child's IEP) 
     shall provide or pay for such services to the child. Such 
     local educational 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 educational agency or State 
     agency pursuant to the terms of the interagency agreement or 
     other mechanism described in subparagraph (A)(i) according to 
     the procedures established in such agreement pursuant to 
     subparagraph (A)(ii).
       ``(C) Special rule.--The requirements of subparagraph (A) 
     may be met through--
       ``(i) State statute or regulation;
       ``(ii) signed agreements between respective agency 
     officials that clearly identify the responsibilities of each 
     agency relating to the provision of services; or
       ``(iii) other appropriate written methods as determined by 
     the Chief Executive Officer of the State or designee of the 
     officer.
       ``(13) Procedural requirements relating to local 
     educational agency eligibility.--The State educational agency 
     will not make a final determination that a local educational 
     agency is not eligible for assistance under this part without 
     first affording that agency reasonable notice and an 
     opportunity for a hearing.
       ``(14) Comprehensive system of personnel development.--The 
     State has in effect, consistent with the purposes of this Act 
     and with section 635(a)(8), a comprehensive system of 
     personnel development that is designed to ensure an adequate 
     supply of qualified special education, regular education, and 
     related services personnel that meets the requirements for a 
     State improvement plan relating to personnel development in 
     subsections (b)(2)(B) and (c)(3)(D) of section 653.
       ``(15) 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) Policy.--In implementing this paragraph, a State may 
     adopt a policy that includes a requirement that local 
     educational agencies in the State make an ongoing good-faith 
     effort to recruit and hire appropriately and adequately 
     trained personnel to provide special education and related 
     services to children with disabilities, including, in a 
     geographic area of the State where there is a shortage of 
     such personnel, the most qualified individuals available who 
     are making satisfactory progress toward completing applicable 
     course work necessary to meet the standards described in 
     subparagraph (B)(i), consistent with State law, and the steps 
     described in subparagraph (B)(ii) within three years.
       ``(16) Performance goals and indicators.--The State--
       ``(A) has established goals for the performance of children 
     with disabilities in the State that--
       ``(i) will promote the purposes of this Act, as stated in 
     section 601(d); and
       ``(ii) are consistent, to the maximum extent appropriate, 
     with other goals and standards for children established by 
     the State;
       ``(B) has established performance indicators the State will 
     use to assess progress toward achieving those goals 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 subpart 1 of part D as may 
     be needed to improve its performance, if the State receives 
     assistance under that subpart.
       ``(17) 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, 2000, 
     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)(I) The performance of those children on regular 
     assessments (beginning not later than July 1, 1998) and on 
     alternate assessments (not later than July 1, 2000), if doing 
     so would be statistically sound and would not result in the 
     disclosure of performance results identifiable to individual 
     children.
       ``(II) Data relating to the performance of children 
     described under subclause (I) shall be disaggregated--

       ``(aa) for assessments conducted after July 1, 1998; and
       ``(bb) for assessments conducted before July 1, 1998, if 
     the State is required to disaggregate such data prior to July 
     1, 1998.

       ``(18) Supplementation of state, local, and other Federal 
     funds.--
       ``(A) Expenditures.--Funds paid to a State under this part 
     will be expended in accordance with all the provisions of 
     this part.

[[Page H2507]]

       ``(B) Prohibition against commingling.--Funds paid to a 
     State under this part will not be commingled with State 
     funds.
       ``(C) Prohibition against supplantation and conditions for 
     waiver by Secretary.--Except as provided in section 613, 
     funds paid to a State under this part will be used to 
     supplement the level of Federal, State, and local funds 
     (including funds that are not under the direct control of 
     State or local educational agencies) expended for special 
     education and related services provided to children with 
     disabilities under this part and in no case to supplant such 
     Federal, State, and local funds, except that, where the State 
     provides clear and convincing evidence that all children with 
     disabilities have available to them a free appropriate public 
     education, the Secretary may waive, in whole or in part, the 
     requirements of this subparagraph if the Secretary concurs 
     with the evidence provided by the State.
       ``(19) Maintenance of state financial support.--
       ``(A) In general.--The State does not reduce the amount of 
     State financial support for special education and related 
     services for children with disabilities, or otherwise made 
     available because of the excess costs of educating those 
     children, below the amount of that support for the preceding 
     fiscal year.
       ``(B) Reduction of funds for failure to maintain support.--
     The Secretary shall reduce the allocation of funds under 
     section 611 for any fiscal year following the fiscal year in 
     which the State fails to comply with the requirement of 
     subparagraph (A) by the same amount by which the State fails 
     to meet the requirement.
       ``(C) Waivers for exceptional or uncontrollable 
     circumstances.--The Secretary may waive the requirement of 
     subparagraph (A) for a State, for one fiscal year at a time, 
     if the Secretary determines that--
       ``(i) granting a waiver would be equitable due to 
     exceptional or uncontrollable circumstances such as a natural 
     disaster or a precipitous and unforeseen decline in the 
     financial resources of the State; or
       ``(ii) the State meets the standard in paragraph (18)(C) of 
     this section for a waiver of the requirement to supplement, 
     and not to supplant, funds received under this part.
       ``(D) Subsequent years.--If, for any year, a State fails to 
     meet the requirement of subparagraph (A), including any year 
     for which the State is granted a waiver under subparagraph 
     (C), the financial support required of the State in future 
     years under subparagraph (A) shall be the amount that would 
     have been required in the absence of that failure and not the 
     reduced level of the State's support.
       ``(E) Regulations.--
       ``(i) The Secretary shall, by regulation, establish 
     procedures (including objective criteria and consideration of 
     the results of compliance reviews of the State conducted by 
     the Secretary) for determining whether to grant a waiver 
     under subparagraph (C)(ii).
       ``(ii) The Secretary shall publish proposed regulations 
     under clause (i) not later than 6 months after the date of 
     the enactment of the Individuals with Disabilities Education 
     Act Amendments of 1997, and shall issue final regulations 
     under clause (i) not later than 1 year after such date of 
     enactment.
       ``(20) Public participation.--Prior to the adoption of any 
     policies and procedures needed to comply with this section 
     (including any amendments to such policies and procedures), 
     the State ensures that there are public hearings, adequate 
     notice of the hearings, and an opportunity for comment 
     available to the general public, including individuals with 
     disabilities and parents of children with disabilities.
       ``(21) State advisory panel.--
       ``(A) In general.--The State has established and maintains 
     an advisory panel for the purpose of providing policy 
     guidance with respect to special education and related 
     services for children with disabilities in the State.
       ``(B) Membership.--Such advisory panel shall consist of 
     members appointed by the Governor, or any other official 
     authorized under State law to make such appointments, that is 
     representative of the State population and that is composed 
     of individuals involved in, or concerned with, the education 
     of children with disabilities, including--
       ``(i) parents of children with disabilities;
       ``(ii) individuals with disabilities;
       ``(iii) teachers;
       ``(iv) representatives of institutions of higher education 
     that prepare special education and related services 
     personnel;
       ``(v) State and local education officials;
       ``(vi) administrators of programs for children with 
     disabilities;
       ``(vii) representatives of other State agencies involved in 
     the financing or delivery of related services to children 
     with disabilities;
       ``(viii) representatives of private schools and public 
     charter schools;
       ``(ix) at least one representative of a vocational, 
     community, or business organization concerned with the 
     provision of transition services to children with 
     disabilities; and
       ``(x) representatives from the State juvenile and adult 
     corrections agencies.
       ``(C) Special rule.--A majority of the members of the panel 
     shall be individuals with disabilities or parents of children 
     with disabilities.
       ``(D) Duties.--The advisory panel shall--
       ``(i) advise the State educational agency of unmet needs 
     within the State in the education of children with 
     disabilities;
       ``(ii) comment publicly on any rules or regulations 
     proposed by the State regarding the education of children 
     with disabilities;
       ``(iii) advise the State educational agency in developing 
     evaluations and reporting on data to the Secretary under 
     section 618;
       ``(iv) advise the State educational agency in developing 
     corrective action plans to address findings identified in 
     Federal monitoring reports under this part; and
       ``(v) advise the State educational agency in developing and 
     implementing policies relating to the coordination of 
     services for children with disabilities.
       ``(22) Suspension and expulsion rates.--
       ``(A) In general.--The State educational agency examines 
     data to determine if significant discrepancies are occurring 
     in the rate of long-term suspensions and expulsions of 
     children with disabilities--
       ``(i) among local educational agencies in the State; or
       ``(ii) compared to such rates for nondisabled children 
     within such agencies.
       ``(B) Review and revision of policies.--If such 
     discrepancies are occurring, the State educational agency 
     reviews and, if appropriate, revises (or requires the 
     affected State or local educational agency to revise) its 
     policies, procedures, and practices relating to the 
     development and implementation of IEPs, the use of behavioral 
     interventions, and procedural safeguards, to ensure that such 
     policies, procedures, and practices comply with this Act.
       ``(b) State Educational Agency as Provider of Free 
     Appropriate Public Education or Direct Services.--If the 
     State educational agency provides free appropriate public 
     education to children with disabilities, or provides direct 
     services to such children, such agency--
       ``(1) shall comply with any additional requirements of 
     section 613(a), as if such agency were a local educational 
     agency; and
       ``(2) may use amounts that are otherwise available to such 
     agency under this part to serve those children without regard 
     to section 613(a)(2)(A)(i) (relating to excess costs).
       ``(c) Exception for Prior State Plans.--
       ``(1) In general.--If a State has on file with the 
     Secretary policies and procedures that demonstrate that such 
     State meets any requirement of subsection (a), including any 
     policies and procedures filed under this part as in effect 
     before the effective date of the Individuals with 
     Disabilities Education Act Amendments of 1997, the Secretary 
     shall consider such State to have met such requirement for 
     purposes of receiving a grant under this part.
       ``(2) Modifications made by state.--Subject to paragraph 
     (3), an application submitted by a State in accordance with 
     this section shall remain in effect until the State submits 
     to the Secretary such modifications as the State deems 
     necessary. This section shall apply to a modification to an 
     application to the same extent and in the same manner as this 
     section applies to the original plan.
       ``(3) Modifications required by the secretary.--If, after 
     the effective date of the Individuals with Disabilities 
     Education Act Amendments of 1997, the provisions of this Act 
     are amended (or the regulations developed to carry out this 
     Act are amended), or there is a new interpretation of this 
     Act by a Federal court or a State's highest court, or there 
     is an official finding of noncompliance with Federal law or 
     regulations, the Secretary may require a State to modify its 
     application only to the extent necessary to ensure the 
     State's compliance with this part.
       ``(d) Approval by the Secretary.--
       ``(1) In general.--If the Secretary determines that a State 
     is eligible to receive a grant under this part, the Secretary 
     shall notify the State of that determination.
       ``(2) Notice and hearing.--The Secretary shall not make a 
     final determination that a State is not eligible to receive a 
     grant under this part until after providing the State--
       ``(A) with reasonable notice; and
       ``(B) with an opportunity for a hearing.
       ``(e) Assistance Under Other Federal Programs.--Nothing in 
     this title permits a State to reduce medical and other 
     assistance available, or to alter eligibility, under titles V 
     and XIX of the Social Security Act with respect to the 
     provision of a free appropriate public education for children 
     with disabilities in the State.
       ``(f) By-Pass for Children in Private Schools.--
       ``(1) In general.--If, on the date of enactment of the 
     Education of the Handicapped Act Amendments of 1983, a State 
     educational agency 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)(10)(A), 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.

[[Page H2508]]

       ``(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)(10)(A).
       ``(3) Notice and hearing.--
       ``(A) In general.--The Secretary shall not take any final 
     action under this subsection until the State educational 
     agency affected by such action has had an opportunity, for at 
     least 45 days after receiving written notice thereof, to 
     submit written objections and to appear before the Secretary 
     or the Secretary's designee to show cause why such action 
     should not be taken.
       ``(B) Review of action.--If a State educational agency is 
     dissatisfied with the Secretary's final action after a 
     proceeding under subparagraph (A), such agency may, not later 
     than 60 days after notice of such action, file with the 
     United States court of appeals for the circuit in which such 
     State is located a petition for review of that action. A copy 
     of the petition shall be forthwith transmitted by the clerk 
     of the court to the Secretary. The Secretary thereupon shall 
     file in the court the record of the proceedings on which the 
     Secretary based the Secretary's action, as provided in 
     section 2112 of title 28, United States Code.
       ``(C) Review of findings of fact.--The findings of fact by 
     the Secretary, if supported by substantial evidence, shall be 
     conclusive, but the court, for good cause shown, may remand 
     the case to the Secretary to take further evidence, and the 
     Secretary may thereupon make new or modified findings of fact 
     and may modify the Secretary's previous action, and shall 
     file in the court the record of the further proceedings. Such 
     new or modified findings of fact shall likewise be conclusive 
     if supported by substantial evidence.
       ``(D) Jurisdiction of court of appeals; review by united 
     states supreme court.--Upon the filing of a petition under 
     subparagraph (B), the United States court of appeals shall 
     have jurisdiction to affirm the action of the Secretary or to 
     set it aside, in whole or in part. The judgment of the court 
     shall be subject to review by the Supreme Court of the United 
     States upon certiorari or certification as provided in 
     section 1254 of title 28, United States Code.

     ``SEC. 613. LOCAL EDUCATIONAL AGENCY ELIGIBILITY.

       ``(a) In General.--A local educational agency is eligible 
     for assistance under this part for a fiscal year if such 
     agency demonstrates to the satisfaction of the State 
     educational agency that it meets each of the following 
     conditions:
       ``(1) Consistency with state policies.--The local 
     educational agency, in providing for the education of 
     children with disabilities within its jurisdiction, has in 
     effect policies, procedures, and programs that are consistent 
     with the State policies and procedures established under 
     section 612.
       ``(2) Use of amounts.--
       ``(A) In general.--Amounts provided to the local 
     educational agency under this part shall be expended in 
     accordance with the applicable provisions of this part and--
       ``(i) shall be used only to pay the excess costs of 
     providing special education and related services to children 
     with disabilities;
       ``(ii) shall be used to supplement State, local, and other 
     Federal funds and not to supplant such funds; and
       ``(iii) shall not be used, except as provided in 
     subparagraphs (B) and (C), to reduce the level of 
     expenditures for the education of children with disabilities 
     made by the local educational agency from local funds below 
     the level of those expenditures for the preceding fiscal 
     year.
       ``(B) Exception.--Notwithstanding the restriction in 
     subparagraph (A)(iii), a local educational agency may reduce 
     the level of expenditures where such reduction is 
     attributable to--
       ``(i) the voluntary departure, by retirement or otherwise, 
     or departure for just cause, of special education personnel;
       ``(ii) a decrease in the enrollment of children with 
     disabilities;
       ``(iii) the termination of the obligation of the agency, 
     consistent with this part, to provide a program of special 
     education to a particular child with a disability that is an 
     exceptionally costly program, as determined by the State 
     educational agency, because the child--

       ``(I) has left the jurisdiction of the agency;
       ``(II) has reached the age at which the obligation of the 
     agency to provide a free appropriate public education to the 
     child has terminated; or
       ``(III) no longer needs such program of special education; 
     or

       ``(iv) the termination of costly expenditures for long-term 
     purchases, such as the acquisition of equipment or the 
     construction of school facilities.
       ``(C) Treatment of federal funds in certain fiscal years.--
       ``(i) Notwithstanding clauses (ii) and (iii) of 
     subparagraph (A), for any fiscal year for which amounts 
     appropriated to carry out section 611 exceeds $4,100,000,000, 
     a local educational agency may treat as local funds, for the 
     purpose of such clauses, up to 20 percent of the amount of 
     funds it receives under this part that exceeds the amount it 
     received under this part for the previous fiscal year.
       ``(ii) Notwithstanding clause (i), if a State educational 
     agency determines that a local educational agency is not 
     meeting the requirements of this part, the State educational 
     agency may prohibit the local educational agency from 
     treating funds received under this part as local funds under 
     clause (i) for any fiscal year, only if it is authorized to 
     do so by the State constitution or a State statute.
       ``(D) Schoolwide programs under title i of the esea.--
     Notwithstanding subparagraph (A) or any other provision of 
     this part, a local educational agency may use funds received 
     under this part for any fiscal year to carry out a schoolwide 
     program under section 1114 of the Elementary and Secondary 
     Education Act of 1965, except that the amount so used in any 
     such program shall not exceed--
       ``(i) the number of children with disabilities 
     participating in the schoolwide program; multiplied by
       ``(ii)(I) the amount received by the local educational 
     agency under this part for that fiscal year; divided by
       ``(II) the number of children with disabilities in the 
     jurisdiction of that agency.
       ``(3) Personnel development.--The local educational 
     agency--
       ``(A) shall ensure that all personnel necessary to carry 
     out this part are appropriately and adequately prepared, 
     consistent with the requirements of section 653(c)(3)(D); and
       ``(B) to the extent such agency determines appropriate, 
     shall contribute to and use the comprehensive system of 
     personnel development of the State established under section 
     612(a)(14).
       ``(4) Permissive use of funds.--Notwithstanding paragraph 
     (2)(A) or section 612(a)(18)(B) (relating to commingled 
     funds), funds provided to the local educational agency under 
     this part may be used for the following activities:
       ``(A) Services and aids that also benefit nondisabled 
     children.--For the costs of special education and related 
     services and supplementary aids and services provided in a 
     regular class or other education-related setting to a child 
     with a disability in accordance with the individualized 
     education program of the child, even if one or more 
     nondisabled children benefit from such services.
       ``(B) Integrated and coordinated services system.--To 
     develop and implement a fully integrated and coordinated 
     services system in accordance with subsection (f).
       ``(5) Treatment of charter schools and their students.--In 
     carrying out this part with respect to charter schools that 
     are public schools of the local educational agency, the local 
     educational agency--
       ``(A) serves children with disabilities attending those 
     schools in the same manner as it serves children with 
     disabilities in its other schools; and
       ``(B) provides funds under this part to those schools in 
     the same manner as it provides those funds to its other 
     schools.
       ``(6) Information for state educational agency.--The local 
     educational agency shall provide the State educational agency 
     with information necessary to enable the State educational 
     agency to carry out its duties under this part, including, 
     with respect to paragraphs (16) and (17) of section 612(a), 
     information relating to the performance of children with 
     disabilities participating in programs carried out under this 
     part.
       ``(7) Public information.--The local educational agency 
     shall make available to parents of children with disabilities 
     and to the general public all documents relating to the 
     eligibility of such agency under this part.
       ``(b) Exception for Prior Local Plans.--
       ``(1) In general.--If a local educational agency or State 
     agency has on file with the State educational agency policies 
     and procedures that demonstrate that such local educational 
     agency, or such State agency, as the case may be, meets any 
     requirement of subsection (a), including any policies and 
     procedures filed under this part as in effect before the 
     effective date of the Individuals with Disabilities Education 
     Act Amendments of 1997, the State educational agency shall 
     consider such local educational agency or State agency, as 
     the case may be, to have met such requirement for purposes of 
     receiving assistance under this part.
       ``(2) Modification made by local educational agency.--
     Subject to paragraph (3), an application submitted by a local 
     educational agency in accordance with this section shall 
     remain in effect until it submits to the State educational 
     agency such modifications as the local educational agency 
     deems necessary.
       ``(3) Modifications required by state educational agency.--
     If, after the effective date of the Individuals with 
     Disabilities Education Act Amendments of 1997, the provisions 
     of this Act are amended (or the regulations developed to 
     carry out this Act are amended), or there is a new 
     interpretation of this Act by Federal or State courts, or 
     there is an official finding of noncompliance with Federal or 
     State law or regulations, the State educational agency may 
     require a local educational agency to modify its application 
     only to the extent necessary to ensure the local educational 
     agency's compliance with this part or State law.

[[Page H2509]]

       ``(c) Notification of Local Educational Agency or State 
     Agency in Case of Ineligibility.--If the State educational 
     agency determines that a local educational agency or State 
     agency is not eligible under this section, the State 
     educational agency shall notify the local educational agency 
     or State agency, as the case may be, of that determination 
     and shall provide such local educational agency or State 
     agency with reasonable notice and an opportunity for a 
     hearing.
       ``(d) Local Educational Agency Compliance.--
       ``(1) In general.--If the State educational agency, after 
     reasonable notice and an opportunity for a hearing, finds 
     that a local educational agency or State agency that has been 
     determined to be eligible under this section is failing to 
     comply with any requirement described in subsection (a), the 
     State educational agency shall reduce or shall not provide 
     any further payments to the local educational agency or State 
     agency until the State educational agency is satisfied that 
     the local educational agency or State agency, as the case may 
     be, is complying with that requirement.
       ``(2) Additional requirement.--Any State agency or local 
     educational agency in receipt of a notice described in 
     paragraph (1) shall, by means of public notice, take such 
     measures as may be necessary to bring the pendency of an 
     action pursuant to this subsection to the attention of the 
     public within the jurisdiction of such agency.
       ``(3) Consideration.--In carrying out its responsibilities 
     under paragraph (1), the State educational agency shall 
     consider any decision made in a hearing held under section 
     615 that is adverse to the local educational agency or State 
     agency involved in that decision.
       ``(e) Joint Establishment of Eligibility.--
       ``(1) Joint establishment.--
       ``(A) In general.--A State educational agency may require a 
     local educational agency to establish its eligibility jointly 
     with another local educational agency if the State 
     educational agency determines that the local educational 
     agency would be ineligible under this section because the 
     local educational agency would not be able to establish and 
     maintain programs of sufficient size and scope to effectively 
     meet the needs of children with disabilities.
       ``(B) Charter school exception.--A State educational agency 
     may not require a charter school that is a local educational 
     agency to jointly establish its eligibility under 
     subparagraph (A) unless it is explicitly permitted to do so 
     under the State's charter school statute.
       ``(2) Amount of payments.--If a State educational agency 
     requires the joint establishment of eligibility under 
     paragraph (1), the total amount of funds made available to 
     the affected local educational agencies shall be equal to the 
     sum of the payments that each such local educational agency 
     would have received under section 611(g) if such agencies 
     were eligible for such payments.
       ``(3) Requirements.--Local educational agencies that 
     establish joint eligibility under this subsection shall--
       ``(A) adopt policies and procedures that are consistent 
     with the State's policies and procedures under section 
     612(a); and
       ``(B) be jointly responsible for implementing programs that 
     receive assistance under this part.
       ``(4) Requirements for educational service agencies.--
       ``(A) In general.--If an educational service agency is 
     required by State law to carry out programs under this part, 
     the joint responsibilities given to local educational 
     agencies under this subsection shall--
       ``(i) not apply to the administration and disbursement of 
     any payments received by that educational service agency; and
       ``(ii) be carried out only by that educational service 
     agency.
       ``(B) Additional requirement.--Notwithstanding any other 
     provision of this subsection, an educational service agency 
     shall provide for the education of children with disabilities 
     in the least restrictive environment, as required by section 
     612(a)(5).
       ``(f) 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 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 that 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 Act; 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) School-Based Improvement Plan.--
       ``(1) In general.--Each local educational agency may, in 
     accordance with paragraph (2), use funds made available under 
     this part to permit a public school within the jurisdiction 
     of the local educational agency to design, implement, and 
     evaluate a school-based improvement plan that is consistent 
     with the purposes described in section 651(b) and that is 
     designed to improve educational and transitional results for 
     all children with disabilities and, as appropriate, for other 
     children consistent with subparagraphs (A) and (B) of 
     subsection (a)(4) in that public school.
       ``(2) Authority.--
       ``(A) In general.--A State educational agency may grant 
     authority to a local educational agency to permit a public 
     school described in paragraph (1) (through a school-based 
     standing panel established under paragraph (4)(B)) to design, 
     implement, and evaluate a school-based improvement plan 
     described in paragraph (1) for a period not to exceed 3 
     years.
       ``(B) Responsibility of local educational agency.--If a 
     State educational agency grants the authority described in 
     subparagraph (A), a local educational agency that is granted 
     such authority shall have the sole responsibility of 
     oversight of all activities relating to the design, 
     implementation, and evaluation of any school-based 
     improvement plan that a public school is permitted to design 
     under this subsection.
       ``(3) Plan requirements.--A school-based improvement plan 
     described in paragraph (1) shall--
       ``(A) be designed to be consistent with the purposes 
     described in section 651(b) and to improve educational and 
     transitional results for all children with disabilities and, 
     as appropriate, for other children consistent with 
     subparagraphs (A) and (B) of subsection (a)(4), who attend 
     the school for which the plan is designed and implemented;
       ``(B) be designed, evaluated, and, as appropriate, 
     implemented by a school-based standing panel established in 
     accordance with paragraph (4)(B);
       ``(C) include goals and measurable indicators to assess the 
     progress of the public school in meeting such goals; and
       ``(D) ensure that all children with disabilities receive 
     the services described in the individualized education 
     programs of such children.
       ``(4) Responsibilities of the local educational agency.--A 
     local educational agency that is granted authority under 
     paragraph (2) to permit a public school to design, implement, 
     and evaluate a school-based improvement plan shall--
       ``(A) select each school under the jurisdiction of such 
     agency that is eligible to design, implement, and evaluate 
     such a plan;
       ``(B) require each school selected under subparagraph (A), 
     in accordance with criteria established by such local 
     educational agency under subparagraph (C), to establish a 
     school-based standing panel to carry out the duties described 
     in paragraph (3)(B);
       ``(C) establish--
       ``(i) criteria that shall be used by such local educational 
     agency in the selection of an eligible school under 
     subparagraph (A);
       ``(ii) criteria that shall be used by a public school 
     selected under subparagraph (A) in the establishment of a 
     school-based standing panel to carry out the duties described 
     in paragraph (3)(B) and that shall ensure that the membership 
     of such panel reflects the diversity of the community in 
     which the public school is located and includes, at a 
     minimum--

       ``(I) parents of children with disabilities who attend such 
     public school, including parents of children with 
     disabilities from unserved and underserved populations, as 
     appropriate;
       ``(II) special education and general education teachers of 
     such public school;
       ``(III) special education and general education 
     administrators, or the designee of such administrators, of 
     such public school; and
       ``(IV) related services providers who are responsible for 
     providing services to the children with disabilities who 
     attend such public school; and

       ``(iii) criteria that shall be used by such local 
     educational agency with respect to the distribution of funds 
     under this part to carry out this subsection;
       ``(D) disseminate the criteria established under 
     subparagraph (C) to local school district personnel and local 
     parent organizations within the jurisdiction of such local 
     educational agency;
       ``(E) require a public school that desires to design, 
     implement, and evaluate a school-based improvement plan to 
     submit an application at such time, in such manner, and 
     accompanied by such information as such local educational 
     agency shall reasonably require; and
       ``(F) establish procedures for approval by such local 
     educational agency of a school-

[[Page H2510]]

     based improvement plan designed under this subsection.
       ``(5) Limitation.--A school-based improvement plan 
     described in paragraph (1) may be submitted to a local 
     educational agency for approval only if a consensus with 
     respect to any matter relating to the design, implementation, 
     or evaluation of the goals of such plan is reached by the 
     school-based standing panel that designed such plan.
       ``(6) Additional requirements.--
       ``(A) Parental involvement.--In carrying out the 
     requirements of this subsection, a local educational agency 
     shall ensure that the parents of children with disabilities 
     are involved in the design, evaluation, and, where 
     appropriate, implementation of school-based improvement plans 
     in accordance with this subsection.
       ``(B) Plan approval.--A local educational agency may 
     approve a school-based improvement plan of a public school 
     within the jurisdiction of such agency for a period of 3 
     years, if--
       ``(i) the approval is consistent with the policies, 
     procedures, and practices established by such local 
     educational agency and in accordance with this subsection; 
     and
       ``(ii) a majority of parents of children who are members of 
     the school-based standing panel, and a majority of other 
     members of the school-based standing panel, that designed 
     such plan agree in writing to such plan.
       ``(7) Extension of plan.--If a public school within the 
     jurisdiction of a local educational agency meets the 
     applicable requirements and criteria described in paragraphs 
     (3) and (4) at the expiration of the 3-year approval period 
     described in paragraph (6)(B), such agency may approve a 
     school-based improvement plan of such school for an 
     additional 3-year period.
       ``(h) 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.
       ``(i) State Agency Eligibility.--Any State agency that 
     desires to receive a subgrant for any fiscal year under 
     section 611(g) shall demonstrate to the satisfaction of the 
     State educational agency that--
       ``(1) all children with disabilities who are participating 
     in programs and projects funded under this part receive a 
     free appropriate public education, and that those children 
     and their parents are provided all the rights and procedural 
     safeguards described in this part; and
       ``(2) the agency meets such other conditions of this 
     section as the Secretary determines to be appropriate.
       ``(j) Disciplinary Information.--The State may require that 
     a local educational agency include in the records of a child 
     with a disability a statement of any current or previous 
     disciplinary action that has been taken against the child and 
     transmit such statement to the same extent that such 
     disciplinary information is included in, and transmitted 
     with, the student records of nondisabled children. The 
     statement may include a description of any behavior engaged 
     in by the child that required disciplinary action, a 
     description of the disciplinary action taken, and any other 
     information that is relevant to the safety of the child and 
     other individuals involved with the child. If the State 
     adopts such a policy, and the child transfers from one school 
     to another, the transmission of any of the child's records 
     must include both the child's current individualized 
     education program and any such statement of current or 
     previous disciplinary action that has been taken against the 
     child.

     ``SEC. 614. EVALUATIONS, ELIGIBILITY DETERMINATIONS, 
                   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 a full and 
     individual initial evaluation, in accordance with this 
     paragraph and subsection (b), before the initial provision of 
     special education and related services to a child with a 
     disability under this part.
       ``(B) 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, except to the extent 
     inconsistent with State law relating to parental consent.
       ``(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 trained and knowledgeable 
     personnel; and
       ``(iii) are administered in accordance with any 
     instructions provided by the producer of such tests;
       ``(C) the child is assessed in all areas of suspected 
     disability; and
       ``(D) assessment tools and strategies that provide relevant 
     information that directly assists persons in determining the 
     educational needs of the child are provided.
       ``(4) Determination of eligibility.--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) shall be made 
     by a team of qualified professionals and the parent of the 
     child in accordance with paragraph (5); and
       ``(B) a copy of the evaluation report and the documentation 
     of determination of eligibility will be given to the parent.
       ``(5) Special rule for eligibility determination.--In 
     making a determination of eligibility under paragraph (4)(A), 
     a child shall not be determined to be a child with a 
     disability if the determinant factor for such determination 
     is lack of instruction in reading or math or limited English 
     proficiency.
       ``(c) Additional Requirements For Evaluation and 
     Reevaluations.--
       ``(1) Review of existing evaluation data.--As part of an 
     initial evaluation (if appropriate) and as part of any 
     reevaluation under this section, the IEP Team described in 
     subsection (d)(1)(B) and other qualified professionals, as 
     appropriate, shall--
       ``(A) review existing evaluation data on the child, 
     including evaluations and information provided by the parents 
     of the child, current classroom-based assessments and 
     observations, and teacher and related services providers 
     observation; and
       ``(B) on the basis of that review, and input from the 
     child's parents, identify what additional data, if any, are 
     needed to determine--
       ``(i) whether the child has a particular category of 
     disability, as described in section 602(3), or, in case of a 
     reevaluation of a child, whether the child continues to have 
     such a disability;
       ``(ii) the present levels of performance and educational 
     needs of the child;

[[Page H2511]]

       ``(iii) whether the child needs special education and 
     related services, or in the case of a reevaluation of a 
     child, whether the child continues to need special education 
     and related services; and
       ``(iv) whether any additions or modifications to the 
     special education and related services are needed to enable 
     the child to meet the measurable annual goals set out in the 
     individualized education program of the child and to 
     participate, as appropriate, in the general curriculum.
       ``(2) Source of data.--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) Parental consent.--Each local educational agency 
     shall obtain informed parental consent, in accordance with 
     subsection (a)(1)(C), prior to conducting any reevaluation of 
     a child with a disability, except that such informed parent 
     consent need not be obtained if the local educational agency 
     can demonstrate that it had taken reasonable measures to 
     obtain such consent and the child's parent has failed to 
     respond.
       ``(4) Requirements if additional data are not needed.--If 
     the IEP Team and other qualified professionals, as 
     appropriate, determine that no additional data are needed to 
     determine whether the child continues to be a child with a 
     disability, 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.
       ``(5) Evaluations before change in eligibility.--A local 
     educational agency shall evaluate a child with a disability 
     in accordance with this section before determining that the 
     child is no longer a child with a disability.
       ``(d) Individualized Education Programs.--
       ``(1) Definitions.--As used in this title:
       ``(A) Individualized education program.--The term 
     `individualized education program' or `IEP' means a written 
     statement for each child with a disability that is developed, 
     reviewed, and revised in accordance with this section and 
     that includes--
       ``(i) a statement of the child's present levels of 
     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;

       ``(ii) 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;

       ``(iii) 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 a statement of 
     the program modifications or supports for school personnel 
     that will be provided for the child--

       ``(I) to advance appropriately toward attaining the annual 
     goals;
       ``(II) to be involved and progress in the general 
     curriculum in accordance with clause (i) and to participate 
     in extracurricular and other nonacademic activities; and
       ``(III) to be educated and participate with other children 
     with disabilities and nondisabled children in the activities 
     described in this paragraph;

       ``(iv) an explanation of the extent, if any, to which the 
     child will not participate with nondisabled children in the 
     regular class and in the activities described in clause 
     (iii);
       ``(v)(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 IEP Team determines that the child will not 
     participate in a particular State or districtwide assessment 
     of student achievement (or part of such an assessment), a 
     statement of--

       ``(aa) why that assessment is not appropriate for the 
     child; and
       ``(bb) how the child will be assessed;

       ``(vi) the projected date for the beginning of the services 
     and modifications described in clause (iii), and the 
     anticipated frequency, location, and duration of those 
     services and modifications;
       ``(vii)(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 
     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
       ``(viii) a statement of--

       ``(I) how the child's progress toward the annual goals 
     described in clause (ii) 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--

       ``(aa) their child's progress toward the annual goals 
     described in clause (ii); and
       ``(bb) the extent to which that progress is sufficient to 
     enable the child to achieve the goals by the end of the year.
       ``(B) Individualized education program team.--The term 
     `individualized education program team' or `IEP Team' means a 
     group of individuals composed of--
       ``(i) the parents of a child with a disability;
       ``(ii) at least one regular education teacher of such child 
     (if the child is, or may be, participating in the regular 
     education environment);
       ``(iii) at least one special education teacher, or where 
     appropriate, at least one special education provider of such 
     child;
       ``(iv) a representative of the local educational agency 
     who--

       ``(I) is qualified to provide, or supervise the provision 
     of, specially designed instruction to meet the unique needs 
     of children with disabilities;
       ``(II) is knowledgeable about the general curriculum; and
       ``(III) is knowledgeable about the availability of 
     resources of the local educational agency;

       ``(v) an individual who can interpret the instructional 
     implications of evaluation results, who may be a member of 
     the team described in clauses (ii) through (vi);
       ``(vi) at the discretion of the parent or the agency, other 
     individuals who have knowledge or special expertise regarding 
     the child, including related services personnel as 
     appropriate; and
       ``(vii) whenever appropriate, the child with a disability.
       ``(2) Requirement that program be in effect.--
       ``(A) In general.--At the beginning of each school year, 
     each local educational agency, State educational agency, or 
     other State agency, as the case may be, shall have in effect, 
     for each child with a disability in its jurisdiction, an 
     individualized education program, as defined in paragraph 
     (1)(A).
       ``(B) Program for child aged 3 through 5.--In the case of a 
     child with a disability aged 3 through 5 (or, at the 
     discretion of the State educational agency, a 2 year-old 
     child with a disability who will turn age 3 during the school 
     year), an individualized family service plan that contains 
     the material described in section 636, and that is developed 
     in accordance with this section, may serve as the IEP of the 
     child if using that plan as the IEP is--
       ``(i) consistent with State policy; and
       ``(ii) agreed to by the agency and the child's parents.
       ``(3) Development of iep.--
       ``(A) In general.--In developing each child's IEP, the IEP 
     Team, subject to subparagraph (C), shall consider--
       ``(i) the strengths of the child and the concerns of the 
     parents for enhancing the education of their child; and
       ``(ii) the results of the initial evaluation or most recent 
     evaluation of the child.
       ``(B) Consideration of special factors.--The IEP Team 
     shall--
       ``(i) in the case of a child whose behavior impedes his or 
     her learning or that of others, consider, when appropriate, 
     strategies, including positive behavioral interventions, 
     strategies, and supports to address that behavior;
       ``(ii) in the case of a child with limited English 
     proficiency, consider the language needs of the child as such 
     needs relate to the child's IEP;
       ``(iii) in the case of a child who is blind or visually 
     impaired, provide for instruction in Braille and the use of 
     Braille unless the IEP Team determines, after an evaluation 
     of the child's reading and writing skills, needs, and 
     appropriate reading and writing media (including an 
     evaluation of the child's future needs for instruction in 
     Braille or the use of Braille), that instruction in Braille 
     or the use of Braille is not appropriate for the child;
       ``(iv) consider the communication needs of the child, and 
     in the case of a child who is deaf or hard of hearing, 
     consider the child's language and communication needs, 
     opportunities for direct communications with peers and 
     professional personnel in the child's language and 
     communication mode, academic level, and full range of needs, 
     including opportunities for direct instruction in the child's 
     language and communication mode; and
       ``(v) consider whether the child requires assistive 
     technology devices and services.
       ``(C) Requirement with respect to regular education 
     teacher.--The regular education teacher of the child, as a 
     member of the IEP Team, shall, to the extent appropriate, 
     participate in the development of the IEP of the child, 
     including the determination of appropriate positive 
     behavioral interventions and strategies and the determination 
     of supplementary aids and services, program modifications, 
     and support for school personnel consistent with paragraph 
     (1)(A)(iii).

[[Page H2512]]

       ``(4) Review and revision of iep.--
       ``(A) In general.--The local educational agency shall 
     ensure that, subject to subparagraph (B), the IEP Team--
       ``(i) reviews the child's IEP periodically, but not less 
     than annually to determine whether the annual goals for the 
     child are being achieved; and
       ``(ii) revises the IEP as appropriate to address--

       ``(I) any lack of expected progress toward the annual goals 
     and in the general curriculum, where appropriate;
       ``(II) the results of any reevaluation conducted under this 
     section;
       ``(III) information about the child provided to, or by, the 
     parents, as described in subsection (c)(1)(B);
       ``(IV) the child's anticipated needs; or
       ``(V) other matters.

       ``(B) Requirement with respect to regular education 
     teacher.--The regular education teacher of the child, as a 
     member of the IEP Team, shall, to the extent appropriate, 
     participate in the review and revision of the IEP of the 
     child.
       ``(5) Failure to meet transition objectives.--If a 
     participating agency, other than the local educational 
     agency, fails to provide the transition services described in 
     the IEP in accordance with paragraph (1)(A)(vii), the local 
     educational agency shall reconvene the IEP Team to identify 
     alternative strategies to meet the transition objectives for 
     the child set out in that program.
       ``(6) Children with disabilities in adult prisons.--
       ``(A) In general.--The following requirements do not apply 
     to children with disabilities who are convicted as adults 
     under State law and incarcerated in adult prisons:
       ``(i) The requirements contained in section 612(a)(17) and 
     paragraph (1)(A)(v) of this subsection (relating to 
     participation of children with disabilities in general 
     assessments).
       ``(ii) The requirements of subclauses (I) and (II) of 
     paragraph (1)(A)(vii) of this subsection (relating to 
     transition planning and transition services), do not apply 
     with respect to such children whose eligibility under this 
     part will end, because of their age, before they will be 
     released from prison.
       ``(B) Additional requirement.--If a child with a disability 
     is convicted as an adult under State law and incarcerated in 
     an adult prison, the child's IEP Team may modify the child's 
     IEP or placement notwithstanding the requirements of sections 
     612(a)(5)(A) and 614(d)(1)(A) if the State has demonstrated a 
     bona fide security or compelling penological interest that 
     cannot otherwise be accommodated.
       ``(e) Construction.--Nothing in this section shall be 
     construed to require the IEP Team to include information 
     under one component of a child's IEP that is already 
     contained under another component of such IEP.
       ``(f) 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, State agency, or local educational agency that 
     receives assistance under this part shall establish and 
     maintain procedures in accordance with this section to ensure 
     that children with disabilities and their parents are 
     guaranteed procedural safeguards with respect to the 
     provision of free appropriate public education by such 
     agencies.
       ``(b) Types of Procedures.--The procedures required by this 
     section shall include--
       ``(1) an opportunity for the parents of a child with a 
     disability to examine all records relating to such child and 
     to participate in meetings with respect to the 
     identification, evaluation, and educational placement of the 
     child, and the provision of a free appropriate public 
     education to such child, and to obtain an independent 
     educational evaluation of the child;
       ``(2) procedures to protect the rights of the child 
     whenever the parents of the child are not known, the agency 
     cannot, after reasonable efforts, locate the parents, or the 
     child is a ward of the State, including the assignment of an 
     individual (who shall not be an employee of the State 
     educational agency, the local educational agency, or any 
     other agency that is involved in the education or care of the 
     child) to act as a surrogate for the parents;
       ``(3) written prior notice to the parents of the child 
     whenever such agency--
       ``(A) proposes to initiate or change; or
       ``(B) refuses to initiate or change;
     the identification, evaluation, or educational placement of 
     the child, in accordance with subsection (c), or the 
     provision of a free appropriate public education to the 
     child;
       ``(4) procedures designed to ensure that the notice 
     required by paragraph (3) is in the native language of the 
     parents, unless it clearly is not feasible to do so;
       ``(5) an opportunity for mediation 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 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) a proposed resolution of the problem to the extent 
     known and available to the parents at the time; 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;
       ``(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;
       ``(6) a statement that the parents of a child with a 
     disability have protection under the procedural safeguards of 
     this part and, if this notice is not an initial referral for 
     evaluation, the means by which a copy of a description of the 
     procedural safeguards can be obtained; and
       ``(7) sources for parents to contact to obtain assistance 
     in understanding the provisions of this part.
       ``(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 it 
     clearly is not feasible to do so, and written in an easily 
     understandable manner, available under this section and under 
     regulations promulgated by the Secretary relating to--
       ``(A) independent educational evaluation;
       ``(B) prior written notice;
       ``(C) parental consent;
       ``(D) access to educational records;
       ``(E) opportunity to present complaints;
       ``(F) the child's placement during pendency of due process 
     proceedings;
       ``(G) procedures for students who are subject to placement 
     in an interim alternative educational setting;
       ``(H) requirements for unilateral placement by parents of 
     children in private schools at public expense;
       ``(I) mediation;
       ``(J) due process hearings, including requirements for 
     disclosure of evaluation results and recommendations;
       ``(K) State-level appeals (if applicable in that State);
       ``(L) civil actions; and
       ``(M) attorneys' fees.
       ``(e) Mediation.--
       ``(1) In general.--Any State educational agency or local 
     educational agency that receives assistance under this part 
     shall ensure that procedures are established and implemented 
     to allow parties to disputes involving any matter described 
     in subsection (b)(6) to resolve such disputes through a 
     mediation process which, at a minimum, shall be available 
     whenever a hearing is requested under subsection (f) or (k).
       ``(2) Requirements.--Such procedures shall meet the 
     following requirements:
       ``(A) The procedures shall ensure that the mediation 
     process--
       ``(i) is voluntary on the part of the parties;
       ``(ii) is not used to deny or delay a parent's right to a 
     due process hearing under subsection (f), or to deny any 
     other rights afforded under this part; and
       ``(iii) is conducted by a qualified and impartial mediator 
     who is trained in effective mediation techniques.
       ``(B) A local educational agency or a State agency may 
     establish procedures to require parents who choose not to use 
     the mediation process to meet, at a time and location 
     convenient to the parents, with a disinterested party who is 
     under contract with--
       ``(i) a parent training and information center or community 
     parent resource center in the State established under section 
     682 or 683; or
       ``(ii) an appropriate alternative dispute resolution 
     entity;

     to encourage the use, and explain the benefits, of the 
     mediation process to the parents.
       ``(C) The State shall maintain a list of individuals who 
     are qualified mediators and knowledgeable in laws and 
     regulations relating to the provision of special education 
     and related services.
       ``(D) The State shall bear the cost of the mediation 
     process, including the costs of meetings described in 
     subparagraph (B).

[[Page H2513]]

       ``(E) Each session in the mediation process shall be 
     scheduled in a timely manner and shall be held in a location 
     that is convenient to the parties to the dispute.
       ``(F) An agreement reached by the parties to the dispute in 
     the mediation process shall be set forth in a written 
     mediation agreement.
       ``(G) 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.
       ``(f) Impartial Due Process Hearing.--
       ``(1) In general.--Whenever a complaint has been received 
     under 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 5 business days prior to a 
     hearing conducted pursuant to paragraph (1), each party shall 
     disclose to all other parties all evaluations completed by 
     that date and recommendations based on the offering party's 
     evaluations that the party intends to use at the hearing.
       ``(B) Failure to disclose.--A hearing officer may bar any 
     party that fails to comply with subparagraph (A) from 
     introducing the relevant evaluation or recommendation at the 
     hearing without the consent of the other party.
       ``(3) Limitation on 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.
       ``(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 (k), or an appeal conducted 
     pursuant to subsection (g), shall be accorded--
       ``(1) the right to be accompanied and advised by counsel 
     and by individuals with special knowledge or training with 
     respect to the problems of children with disabilities;
       ``(2) the right to present evidence and confront, cross-
     examine, and compel the attendance of witnesses;
       ``(3) the right to a written, or, at the option of the 
     parents, electronic verbatim record of such hearing; and
       ``(4) the right to written, or, at the option of the 
     parents, electronic findings of fact and decisions (which 
     findings and decisions 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)(21)).
       ``(i) Administrative Procedures.--
       ``(1) In general.--
       ``(A) Decision made in hearing.--A decision made in a 
     hearing conducted pursuant to subsection (f) or (k) shall be 
     final, except that any party involved in such hearing may 
     appeal such decision under the provisions of subsection (g) 
     and paragraph (2) of this subsection.
       ``(B) Decision made at appeal.--A decision made under 
     subsection (g) shall be final, except that any party may 
     bring an action under paragraph (2) of this subsection.
       ``(2) Right to bring civil action.--
       ``(A) In general.--Any party aggrieved by the findings and 
     decision made under subsection (f) or (k) who does not have 
     the right to an appeal under subsection (g), and any party 
     aggrieved by the findings and decision 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 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 
     section for services performed subsequent to the time of a 
     written offer of settlement to a parent if--

       ``(I) the offer is made within the time prescribed by Rule 
     68 of the Federal Rules of Civil Procedure or, in the case of 
     an administrative proceeding, at any time more than ten days 
     before the proceeding begins;
       ``(II) the offer is not accepted within 10 days; and
       ``(III) the court or administrative hearing officer finds 
     that the relief finally obtained by the parents is not more 
     favorable to the parents than the offer of settlement.

       ``(ii) Attorneys' fees may not be awarded relating to any 
     meeting of the IEP Team unless such meeting is convened as a 
     result of an administrative proceeding or judicial action, 
     or, at the discretion of the State, for a mediation described 
     in subsection (e) that is conducted prior to the filing of a 
     complaint under subsection (b)(6) or (k) of this section.
       ``(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, reputation, and experience;
       ``(iii) the time spent and legal services furnished were 
     excessive considering the nature of the action or proceeding; 
     or
       ``(iv) the attorney representing the parent did not provide 
     to the school district the appropriate information in the due 
     process complaint in accordance with subsection (b)(7);

     the court shall reduce, accordingly, the amount of the 
     attorneys' fees awarded under this section.
       ``(G) Exception to reduction in amount of attorneys' 
     fees.--The provisions of subparagraph (F) shall not apply in 
     any action or proceeding if the court finds that the State or 
     local educational agency unreasonably protracted the final 
     resolution of the action or proceeding or there was a 
     violation of this section.
       ``(j) Maintenance of Current Educational Placement.--Except 
     as provided in subsection (k)(7), 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.--
       ``(A) School personnel under this section may order a 
     change in the placement of a child with a disability--
       ``(i) 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
       ``(ii) 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 45 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; or
       ``(II) the child knowingly possesses or uses illegal drugs 
     or sells or solicits the sale of a controlled substance while 
     at school or a school function under the jurisdiction of a 
     State or local educational agency.

       ``(B) Either before or not later than 10 days after taking 
     a disciplinary action described in subparagraph (A)--
       ``(i) if the local educational agency did not conduct a 
     functional behavioral assessment and implement a behavioral 
     intervention plan for such child before the behavior that 
     resulted in the suspension described in subparagraph (A), the 
     agency shall convene an IEP meeting to develop an assessment 
     plan to address that behavior; or
       ``(ii) if the child already has a behavioral intervention 
     plan, the IEP Team shall review the plan and modify it, as 
     necessary, to address the behavior.
       ``(2) Authority of hearing officer.--A hearing officer 
     under this section may order a change in the placement of a 
     child with a disability to an appropriate interim alternative 
     educational setting for not more than 45 days if the hearing 
     officer--
       ``(A) determines that the public agency has demonstrated by 
     substantial evidence that maintaining the current placement 
     of such child is substantially likely to result in injury to 
     the child or to others;

[[Page H2514]]

       ``(B) considers the appropriateness of the child's current 
     placement;
       ``(C) considers whether the public agency has made 
     reasonable efforts to minimize the risk of harm in the 
     child's current placement, including the use of supplementary 
     aids and services; and
       ``(D) determines that the interim alternative educational 
     setting meets the requirements of paragraph (3)(B).
       ``(3) Determination of setting.--
       ``(A) In general.--The alternative educational setting 
     described in paragraph (1)(A)(ii) shall be determined by the 
     IEP Team.
       ``(B) Additional requirements.--Any interim alternative 
     educational setting in which a child is placed under 
     paragraph (1) or (2) shall--
       ``(i) be selected so as to enable the child to continue to 
     participate in the general curriculum, although in another 
     setting, and to continue to receive those services and 
     modifications, including those described in the child's 
     current IEP, that will enable the child to meet the goals set 
     out in that IEP; and
       ``(ii) include services and modifications designed to 
     address the behavior described in paragraph (1) or paragraph 
     (2) so that it does not recur.
       ``(4) Manifestation determination review.--
       ``(A) In general.--If a disciplinary action is contemplated 
     as described in paragraph (1) or paragraph (2) for a behavior 
     of a child with a disability described in either of those 
     paragraphs, or if a disciplinary action involving a change of 
     placement for more than 10 days is contemplated for a child 
     with a disability who has engaged in other behavior that 
     violated any rule or code of conduct of the local educational 
     agency that applies to all children--
       ``(i) not later than the date on which the decision to take 
     that action is made, the parents shall be notified of that 
     decision and of all procedural safeguards accorded under this 
     section; and
       ``(ii) immediately, if possible, but in no case later than 
     10 school days after the date on which the decision to take 
     that action is made, a review shall be conducted of the 
     relationship between the child's disability and the behavior 
     subject to the disciplinary action.
       ``(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.--In carrying out a review 
     described in subparagraph (A), 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--
       ``(i) first considers, in terms of the behavior subject to 
     disciplinary action, all relevant information, including--

       ``(I) evaluation and diagnostic results, including such 
     results or other relevant information supplied by the parents 
     of the child;
       ``(II) observations of the child; and
       ``(III) the child's IEP and placement; and

       ``(ii) then determines that--

       ``(I) in relationship to the behavior subject to 
     disciplinary action, the child's IEP and placement were 
     appropriate and the special education services, supplementary 
     aids and services, and behavior intervention strategies were 
     provided consistent with the child's IEP and placement;
       ``(II) the child's disability did not impair the ability of 
     the child to understand the impact and consequences of the 
     behavior subject to disciplinary action; and
       ``(III) the child's disability did not impair the ability 
     of the child to control the behavior subject to disciplinary 
     action.

       ``(5) Determination that behavior was not manifestation of 
     disability.--
       ``(A) In general.--If the result of the review described in 
     paragraph (4) is a determination, consistent with paragraph 
     (4)(C), that the behavior of the child with a disability was 
     not a manifestation of the child's disability, the relevant 
     disciplinary procedures applicable to children without 
     disabilities may be applied to the child in the same manner 
     in which they would be applied to children without 
     disabilities, except as provided in section 612(a)(1).
       ``(B) Additional requirement.--If the public agency 
     initiates disciplinary procedures applicable to all children, 
     the agency shall ensure that the special education and 
     disciplinary records of the child with a disability are 
     transmitted for consideration by the person or persons making 
     the final determination regarding the disciplinary action.
       ``(6) Parent appeal.--
       ``(A) In general.--
       ``(i) If the child's parent disagrees with a determination 
     that the child's behavior was not a manifestation of the 
     child's disability or with any decision regarding placement, 
     the parent may request a hearing.
       ``(ii) The State or local educational agency shall arrange 
     for an expedited hearing in any case described in this 
     subsection when requested by a parent.
       ``(B) Review of decision.--
       ``(i) In reviewing a decision with respect to the 
     manifestation determination, the hearing officer shall 
     determine whether the public agency has demonstrated that the 
     child's behavior was not a manifestation of such child's 
     disability consistent with the requirements of paragraph 
     (4)(C).
       ``(ii) In reviewing a decision under paragraph (1)(A)(ii) 
     to place the child in an interim alternative educational 
     setting, the hearing officer shall apply the standards set 
     out in paragraph (2).
       ``(7) Placement during appeals.--
       ``(A) In general.--When a parent requests a hearing 
     regarding a disciplinary action described in paragraph 
     (1)(A)(ii) or paragraph (2) to challenge the interim 
     alternative educational setting or the manifestation 
     determination, the child shall remain in the interim 
     alternative educational setting pending the decision of the 
     hearing officer or until the expiration of the time period 
     provided for in paragraph (1)(A)(ii) or paragraph (2), 
     whichever occurs first, unless the parent and the State or 
     local educational agency agree otherwise.
       ``(B) Current placement.--If a child is placed in an 
     interim alternative educational setting pursuant to paragraph 
     (1)(A)(ii) or paragraph (2) and school personnel propose to 
     change the child's placement after expiration of the interim 
     alternative placement, during the pendency of any proceeding 
     to challenge the proposed change in placement, the child 
     shall remain in the current placement (the child's placement 
     prior to the interim alternative educational setting), except 
     as provided in subparagraph (C).
       ``(C) Expedited hearing.--
       ``(i) If school personnel maintain that it is dangerous for 
     the child to be in the current placement (placement prior to 
     removal to the interim alternative education setting) during 
     the pendency of the due process proceedings, the local 
     educational agency may request an expedited hearing.
       ``(ii) In determining whether the child may be placed in 
     the alternative educational setting or in another appropriate 
     placement ordered by the hearing officer, the hearing officer 
     shall apply the standards set out in paragraph (2).
       ``(8) Protections for children not yet eligible for special 
     education and related services.--
       ``(A) In general.--A child who has not been determined to 
     be eligible for special education and related services under 
     this part and who has engaged in behavior that 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 paragraph) that the child was a child with a 
     disability before the behavior that precipitated the 
     disciplinary action occurred.
       ``(B) Basis of knowledge.--A local educational agency shall 
     be deemed to have knowledge that a child is a child with a 
     disability if--
       ``(i) the parent of the child has expressed concern in 
     writing (unless the parent is illiterate or has a disability 
     that prevents compliance with the requirements contained in 
     this clause) to personnel of the appropriate educational 
     agency that the child is in need of special education and 
     related services;
       ``(ii) the behavior or performance of the child 
     demonstrates the need for such services;
       ``(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 or performance of the child to the director of 
     special education of such agency or to other personnel of the 
     agency.
       ``(C) Conditions that apply if no basis of knowledge.--
       ``(i) In general.--If a local educational agency does not 
     have knowledge that a child is a child with a disability (in 
     accordance with subparagraph (B)) prior to taking 
     disciplinary measures against the child, the child may be 
     subjected to the same disciplinary measures as measures 
     applied to children without disabilities who engaged in 
     comparable behaviors consistent with clause (ii).
       ``(ii) Limitations.--If a request is made for an evaluation 
     of a child during the time period in which the child is 
     subjected to disciplinary measures under paragraph (1) or 
     (2), the evaluation shall be conducted in an expedited 
     manner. If the child is determined to be a child with a 
     disability, taking into consideration information from the 
     evaluation conducted by the agency and information provided 
     by the parents, the agency shall provide special education 
     and related services in accordance with 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.
       ``(9) Referral to and action by law enforcement and 
     judicial authorities.--
       ``(A) Nothing in this part shall be construed to prohibit 
     an agency from reporting a crime committed by a child with a 
     disability to appropriate authorities or to prevent State law 
     enforcement and judicial authorities from exercising their 
     responsibilities with regard to the application of Federal 
     and State law to crimes committed by a child with a 
     disability.
       ``(B) An agency reporting a crime committed by a child with 
     a disability shall ensure that copies of the special 
     education and disciplinary records of the child are 
     transmitted for consideration by the appropriate authorities 
     to whom it reports the crime.
       ``(10) Definitions.--For purposes of this subsection, the 
     following definitions apply:
       ``(A) Controlled substance.--The term `controlled 
     substance' means a drug or other substance identified under 
     schedules I, II, III,

[[Page H2515]]

     IV, or V in section 202(c) of the Controlled Substances Act 
     (21 U.S.C. 812(c)).
       ``(B) Illegal drug.--The term `illegal drug'--
       ``(i) means a controlled substance; but
       ``(ii) does not include such a substance that is legally 
     possessed or used under the supervision of a licensed health-
     care professional or that is legally possessed or used under 
     any other authority under that Act or under any other 
     provision of Federal law.
       ``(C) Substantial evidence.--The term `substantial 
     evidence' means beyond a preponderance of the evidence.
       ``(D) 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 of 1990, title V of the Rehabilitation Act 
     of 1973, or other Federal laws protecting the rights of 
     children with disabilities, except that before the filing of 
     a civil action under such laws seeking relief that is also 
     available under this part, the procedures under subsections 
     (f) and (g) shall be exhausted to the same extent as would be 
     required had the action been brought under this part.
       ``(m) Transfer of Parental Rights at Age of Majority.--
       ``(1) In general.--A State that receives amounts from a 
     grant under this part may provide that, when a child with a 
     disability reaches the age of majority under State law 
     (except for a child with a disability who has been determined 
     to be incompetent under State law)--
       ``(A) the public agency shall provide any notice required 
     by this section to both the individual and the parents;
       ``(B) all other rights accorded to parents under this part 
     transfer to the child;
       ``(C) the agency shall notify the individual and the 
     parents of the transfer of rights; and
       ``(D) all rights accorded to parents under this part 
     transfer to children who are incarcerated in an adult or 
     juvenile Federal, State, or local correctional institution.
       ``(2) Special rule.--If, under State law, a child with a 
     disability who has reached the age of majority under State 
     law, who has not been determined to be incompetent, but who 
     is determined not to have the ability to provide informed 
     consent with respect to the educational program of the child, 
     the State shall establish procedures for appointing the 
     parent of the child, or if the parent is not available, 
     another appropriate individual, to represent the educational 
     interests of the child throughout the period of eligibility 
     of the child under this part.

     ``SEC. 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, including the terms of any agreement to 
     achieve compliance with this part within the timelines 
     specified in the agreement;

     the Secretary shall, after notifying the State educational 
     agency, withhold, in whole or in part, any further payments 
     to the State under this part, or refer the matter for 
     appropriate enforcement action, which may include referral to 
     the Department of Justice.
       ``(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), payments to the 
     State under this part shall be withheld in whole or in 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.
       ``(c) Divided State Agency Responsibility.--For purposes of 
     this section, where responsibility for ensuring that the 
     requirements of this part are met with respect to children 
     with disabilities who are convicted as adults under State law 
     and incarcerated in adult prisons is assigned to a public 
     agency other than the State educational agency pursuant to 
     section 612(a)(11)(C), the Secretary, in instances where the 
     Secretary finds that the failure to comply substantially with 
     the provisions of this part are related to a failure by the 
     public agency, shall take appropriate corrective action to 
     ensure compliance with this part, except--
       ``(1) any reduction or withholding of payments to the State 
     is proportionate to the total funds allotted under section 
     611 to the State as the number of eligible children with 
     disabilities in adult prisons under the supervision of the 
     other public agency is proportionate to the number of 
     eligible individuals with disabilities in the State under the 
     supervision of the State educational agency; and
       ``(2) any withholding of funds under paragraph (1) shall be 
     limited to the specific agency responsible for the failure to 
     comply with this part.

     ``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 carry out the Secretary's 
     duties under subsection (a) and under sections 618, 661, and 
     673 (or their predecessor authorities through October 1, 
     1997) 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 each year to the Secretary--
       ``(1)(A) on--
       ``(i) the number of children with disabilities, by race, 
     ethnicity, and disability category, who are receiving a free 
     appropriate public education;
       ``(ii) the number of children with disabilities, by race 
     and ethnicity, who are receiving early intervention services;
       ``(iii) the number of children with disabilities, by race, 
     ethnicity, and disability category, who are participating in 
     regular education;
       ``(iv) the number of children with disabilities, by race, 
     ethnicity, and disability category, who are in separate 
     classes, separate schools or facilities, or public or private 
     residential facilities;
       ``(v) the number of children with disabilities, by race, 
     ethnicity, and disability category, who, for each year of age 
     from age 14 to 21, stopped receiving special education and 
     related services because of program completion or other 
     reasons and the reasons why those children stopped receiving 
     special education and related services;
       ``(vi) the number of children with disabilities, by race 
     and ethnicity, who, from birth through age two, stopped 
     receiving early intervention services because of program 
     completion or for other reasons; and
       ``(vii)(I) the number of children with disabilities, by 
     race, ethnicity, and disability category, who under 
     subparagraphs (A)(ii) and (B) of section 615(k)(1), are 
     removed to an interim alternative educational setting;

[[Page H2516]]

       ``(II) the acts or items precipitating those removals; and
       ``(III) the number of children with disabilities who are 
     subject to long-term suspensions or expulsions; and
       ``(B) on the number of infants and toddlers, by race and 
     ethnicity, who are at risk of having substantial 
     developmental delays (as described in section 632), and who 
     are receiving early intervention services under part C; and
       ``(2) on any other information that may be required by the 
     Secretary.
       ``(b) Sampling.--The Secretary may permit States and the 
     Secretary of the Interior to obtain the data described in 
     subsection (a) through sampling.
       ``(c) Disproportionality.--
       ``(1) In general.--Each State that receives assistance 
     under this part, and the Secretary of the Interior, shall 
     provide for the collection and examination of data to 
     determine if significant disproportionality based on race is 
     occurring in the State with respect to--
       ``(A) the identification of children as children with 
     disabilities, including the identification of children as 
     children with disabilities in accordance with a particular 
     impairment described in section 602(3); and
       ``(B) the placement in particular educational settings of 
     such children.
       ``(2) Review and revision of policies, practices, and 
     procedures.--In the case of a determination of significant 
     disproportionality with respect to the identification of 
     children as children with disabilities, or the placement in 
     particular educational settings of such children, in 
     accordance with paragraph (1), the State or the Secretary of 
     the Interior, as the case may be, 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 through 5, residing 
     in the State.
       ``(c) Allocations to States.--
       ``(1) In general.--After reserving funds for studies and 
     evaluations under section 674(e), the Secretary shall 
     allocate the remaining amount among the States in accordance 
     with paragraph (2) or (3), as the case may be.
       ``(2) Increase in funds.--If the amount available for 
     allocations to States under paragraph (1) is equal to or 
     greater than the amount allocated to the States under this 
     section for the preceding fiscal year, those allocations 
     shall be calculated as follows:
       ``(A)(i) Except as provided in subparagraph (B), the 
     Secretary shall--
       ``(I) allocate to each State the amount it received for 
     fiscal year 1997;
       ``(II) allocate 85 percent of any remaining funds to States 
     on the basis of their relative populations of children aged 3 
     through 5; and
       ``(III) allocate 15 percent of those remaining funds to 
     States on the basis of their relative populations of all 
     children aged 3 through 5 who are living in poverty.
       ``(ii) For the purpose of making grants under this 
     paragraph, the Secretary shall use the most recent population 
     data, including data on children living in poverty, that are 
     available and satisfactory to the Secretary.
       ``(B) Notwithstanding subparagraph (A), allocations under 
     this paragraph shall be subject to the following:
       ``(i) No State's allocation shall be less than its 
     allocation for the preceding fiscal year.
       ``(ii) No State's allocation shall be less than the 
     greatest of--

       ``(I) the sum of--

       ``(aa) the amount it received for fiscal year 1997; and
       ``(bb) one third of one percent of the amount by which the 
     amount appropriated under subsection (j) exceeds the amount 
     appropriated under this section for fiscal year 1997;

       ``(II) the sum of--

       ``(aa) the amount it received for the preceding fiscal 
     year; and
       ``(bb) that amount multiplied by the percentage by which 
     the increase in the funds appropriated from the preceding 
     fiscal year exceeds 1.5 percent; or

       ``(III) the sum of--

       ``(aa) the amount it received for the preceding fiscal 
     year; and
       ``(bb) that amount multiplied by 90 percent of the 
     percentage increase in the amount appropriated from the 
     preceding fiscal year.
       ``(iii) Notwithstanding clause (ii), no State's allocation 
     under this paragraph shall exceed the sum of--

       ``(I) the amount it received for the preceding fiscal year; 
     and
       ``(II) that amount multiplied by the sum of 1.5 percent and 
     the percentage increase in the amount appropriated.

       ``(C) If the amount available for allocations under this 
     paragraph is insufficient to pay those allocations in full, 
     those allocations shall be ratably reduced, subject to 
     subparagraph (B)(i).
       ``(3) Decrease in Funds.--If the amount available for 
     allocations to States under paragraph (1) is less than the 
     amount allocated to the States under this section for the 
     preceding fiscal year, those allocations shall be calculated 
     as follows:
       ``(A) If the amount available for allocations is greater 
     than the amount allocated to the States for fiscal year 1997, 
     each State shall be allocated the sum of--
       ``(i) the amount it received for fiscal year 1997; and
       ``(ii) an amount that bears the same relation to any 
     remaining funds as the increase the State received for the 
     preceding fiscal year over fiscal year 1997 bears to the 
     total of all such increases for all States.
       ``(B) If the amount available for allocations is equal to 
     or less than the amount allocated to the States for fiscal 
     year 1997, each State shall be allocated the amount it 
     received for that year, ratably reduced, if necessary.
       ``(4) Outlying areas.--The Secretary shall increase the 
     fiscal year 1998 allotment of each outlying area under 
     section 611 by at least the amount that that area received 
     under this section for fiscal year 1997.
       ``(d) Reservation for State Activities.--
       ``(1) In general.--Each State may retain not more than the 
     amount described in paragraph (2) for administration and 
     other State-level activities in accordance with subsections 
     (e) and (f).
       ``(2) Amount described.--For each fiscal year, the 
     Secretary shall determine and report to the State educational 
     agency an amount that is 25 percent of the amount the State 
     received under this section for fiscal year 1997, 
     cumulatively adjusted by the Secretary for each succeeding 
     fiscal year by the lesser of--
       ``(A) the percentage increase, if any, from the preceding 
     fiscal year in the State's allocation under this section; or
       ``(B) the percentage increase, if any, from the preceding 
     fiscal year in the Consumer Price Index For All Urban 
     Consumers published by the Bureau of Labor Statistics of the 
     Department of Labor.
       ``(e) State Administration.--
       ``(1) In general.--For the purpose of administering this 
     section (including the coordination of activities under this 
     part with, and providing technical assistance to, other 
     programs that provide services to children with disabilities) 
     a State may use not more than 20 percent of the maximum 
     amount it may retain under subsection (d) for any fiscal 
     year.
       ``(2) Administration of part c.--Funds described in 
     paragraph (1) may also be used for the administration of part 
     C of this Act, if the State educational agency is the lead 
     agency for the State under that part.
       ``(f) Other State-Level Activities.--Each State shall use 
     any funds it retains under subsection (d) and does not use 
     for administration under subsection (e)--
       ``(1) for support services (including establishing and 
     implementing the mediation process required by section 
     615(e)), which may benefit children with disabilities younger 
     than 3 or older than 5 as long as those services also benefit 
     children with disabilities aged 3 through 5;
       ``(2) for direct services for children eligible for 
     services under this section;
       ``(3) to develop a State improvement plan under subpart 1 
     of part D;
       ``(4) for activities at the State and local levels to meet 
     the performance goals established by the State under section 
     612(a)(16) and to support implementation of the State 
     improvement plan under subpart 1 of part D if the State 
     receives funds under that subpart; 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.
       ``(g) Subgrants to Local Educational Agencies.--
       ``(1) Subgrants required.--Each State that receives a grant 
     under this section for any fiscal year shall distribute any 
     of the grant funds that it does not reserve under subsection 
     (d) to local educational agencies in the State that have 
     established their eligibility under section 613, as follows:
       ``(A) Base payments.--The State shall first award each 
     agency described in paragraph (1) the amount that agency 
     would have received under this section for fiscal year 1997 
     if the State had distributed 75 percent of its grant for that 
     year under section 619(c)(3), as then in effect.
       ``(B) Allocation of remaining funds.--After making 
     allocations under subparagraph (A), the State shall--
       ``(i) allocate 85 percent of any remaining funds to those 
     agencies on the basis of the relative numbers of children 
     enrolled in public and private elementary and secondary 
     schools within the agency's jurisdiction; and
       ``(ii) allocate 15 percent of those remaining funds to 
     those agencies in accordance with their relative numbers of 
     children living in poverty, as determined by the State 
     educational agency.
       ``(2) Reallocation of funds.--If a State educational agency 
     determines that a local educational agency is adequately 
     providing a free appropriate public education to all children 
     with disabilities aged three through five residing in the 
     area served by that agency

[[Page H2517]]

     with State and local funds, the State educational agency may 
     reallocate any portion of the funds under this section that 
     are not needed by that local agency to provide a free 
     appropriate public education to other local educational 
     agencies in the State that are not adequately providing 
     special education and related services to all children with 
     disabilities aged three through five residing in the areas 
     they serve.
       ``(h) Part C Inapplicable.--Part C of this Act does not 
     apply to any child with a disability receiving a free 
     appropriate public education, in accordance with this part, 
     with funds received under this section.
       ``(i) Definition.--For the purpose of this section, the 
     term `State' means each of the 50 States, the District of 
     Columbia, and the Commonwealth of Puerto Rico.
       ``(j) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated to the Secretary $500,000,000 for fiscal year 
     1998 and such sums as may be necessary for each subsequent 
     fiscal year.

            ``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--
       ``(1) to develop and implement a statewide, comprehensive, 
     coordinated, multidisciplinary, interagency system that 
     provides early intervention services for infants and toddlers 
     with disabilities and their families;
       ``(2) to facilitate the coordination of payment for early 
     intervention services from Federal, State, local, and private 
     sources (including public and private insurance coverage);
       ``(3) to enhance their capacity to provide quality early 
     intervention services and expand and improve existing early 
     intervention services being provided to infants and toddlers 
     with disabilities and their families; and
       ``(4) to encourage States to expand opportunities for 
     children under 3 years of age who would be at risk of having 
     substantial developmental delay if they did not receive early 
     intervention services.

     ``SEC. 632. DEFINITIONS.

       ``As used in this part:
       ``(1) At-risk infant or toddler.--The term `at-risk infant 
     or toddler' means an individual under 3 years of age who 
     would be at risk of experiencing a substantial developmental 
     delay if early intervention services were not provided to the 
     individual.
       ``(2) Council.--The term `council' means a State 
     interagency coordinating council established under section 
     641.
       ``(3) Developmental delay.--The term `developmental delay', 
     when used with respect to an individual residing in a State, 
     has the meaning given such term by the State under section 
     635(a)(1).
       ``(4) Early intervention services.--The term `early 
     intervention services' means developmental services that--
       ``(A) are provided under public supervision;
       ``(B) are provided at no cost except where Federal or State 
     law provides for a system of payments by families, including 
     a schedule of sliding fees;
       ``(C) are designed to 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 allotments under section 643) to 
     assist each State to maintain and implement a statewide, 
     comprehensive, coordinated, multidisciplinary, interagency 
     system to provide early intervention services for infants and 
     toddlers with disabilities and their families.

     ``SEC. 634. ELIGIBILITY.

       ``In order to be eligible for a grant under section 633, a 
     State shall 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 State policy that is in effect and that ensures 
     that appropriate early intervention services are available to 
     all infants and toddlers with disabilities and their 
     families, including Indian infants and toddlers and their 
     families residing on a reservation geographically located in 
     the State.
       ``(3) A timely, comprehensive, multidisciplinary evaluation 
     of the functioning of each infant or toddler with a 
     disability in the State, and a family-directed identification 
     of the needs of each family of such an infant or toddler, to 
     appropriately assist in the development of the infant or 
     toddler.
       ``(4) For each infant or toddler with a disability in the 
     State, an individualized family service plan in accordance 
     with section 636, including service coordination services in 
     accordance with such service plan.
       ``(5) A comprehensive child find system, consistent with 
     part B, including a system for making referrals to service 
     providers that includes timelines and provides for 
     participation by primary referral sources.
       ``(6) A public awareness program focusing on early 
     identification of infants and toddlers with disabilities, 
     including the preparation and dissemination by the lead 
     agency designated or established under paragraph (10) to all 
     primary referral sources, especially hospitals and 
     physicians, of information for parents on the availability of 
     early intervention services, and procedures for determining 
     the extent to which such sources disseminate such information 
     to parents of infants and toddlers.
       ``(7) A central directory which includes information on 
     early intervention services, resources, and experts available 
     in the State and research and demonstration projects being 
     conducted in the State.
       ``(8) A comprehensive system of personnel development, 
     including the training of paraprofessionals and the training 
     of primary referral sources respecting the basic components 
     of early intervention services available in the State, that 
     is consistent with the comprehensive system of personnel 
     development described in section 612(a)(14) and may include--
       ``(A) implementing innovative strategies and activities for 
     the recruitment and retention of early education service 
     providers;

[[Page H2518]]

       ``(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.
       ``(9) Subject to subsection (b), policies and procedures 
     relating to the establishment and maintenance of standards to 
     ensure that personnel necessary to carry out this part are 
     appropriately and adequately prepared and trained, 
     including--
       ``(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) 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.
       ``(10) A single line of responsibility in a lead agency 
     designated or established by the Governor for carrying out--
       ``(A) the general administration and supervision of 
     programs and activities receiving assistance under section 
     633, and the monitoring of programs and activities used by 
     the State to carry out this part, whether or not such 
     programs or activities are receiving assistance made 
     available under section 633, to ensure that the State 
     complies with this part;
       ``(B) the identification and coordination of all available 
     resources within the State from Federal, State, local, and 
     private sources;
       ``(C) the assignment of financial responsibility in 
     accordance with section 637(a)(2) to the appropriate 
     agencies;
       ``(D) the development of procedures to ensure that services 
     are provided to infants and toddlers with disabilities and 
     their families under this part in a timely manner pending the 
     resolution of any disputes among public agencies or service 
     providers;
       ``(E) the resolution of intra- and interagency disputes; 
     and
       ``(F) the entry into formal interagency agreements that 
     define the financial responsibility of each agency for paying 
     for early intervention services (consistent with State law) 
     and procedures for resolving disputes and that include all 
     additional components necessary to ensure meaningful 
     cooperation and coordination.
       ``(11) A policy pertaining to the contracting or making of 
     other arrangements with service providers to provide early 
     intervention services in the State, consistent with the 
     provisions of this part, including the contents of the 
     application used and the conditions of the contract or other 
     arrangements.
       ``(12) A procedure for securing timely reimbursements of 
     funds used under this part in accordance with section 640(a).
       ``(13) Procedural safeguards with respect to programs under 
     this part, as required by section 639.
       ``(14) A system for compiling data requested by the 
     Secretary under section 618 that relates to this part.
       ``(15) A State interagency coordinating council that meets 
     the requirements of section 641.
       ``(16) Policies and procedures to ensure that, consistent 
     with section 636(d)(5)--
       ``(A) to the maximum extent appropriate, early intervention 
     services are provided in natural environments; and
       ``(B) the provision of early intervention services for any 
     infant or toddler occurs in a setting other than a natural 
     environment only when early intervention cannot be achieved 
     satisfactorily for the infant or toddler in a natural 
     environment.
       ``(b) Policy.--In implementing subsection (a)(9), a State 
     may adopt a policy that includes making ongoing good-faith 
     efforts to recruit and hire appropriately and adequately 
     trained personnel to provide early intervention services to 
     infants and toddlers with disabilities, including, in a 
     geographic area of the State where there is a shortage of 
     such personnel, the most qualified individuals available who 
     are making satisfactory progress toward completing applicable 
     course work necessary to meet the standards described in 
     subsection (a)(9), consistent with State law, within 3 years.

     ``SEC. 636. INDIVIDUALIZED FAMILY SERVICE PLAN.

       ``(a) Assessment and Program Development.--A statewide 
     system described in section 633 shall provide, at a minimum, 
     for each infant or toddler with a disability, and the 
     infant's or toddler's family, to receive--
       ``(1) a multidisciplinary assessment of the unique 
     strengths and needs of the infant or toddler and the 
     identification of services appropriate to meet such needs;
       ``(2) a family-directed assessment of the resources, 
     priorities, and concerns of the family and the identification 
     of the supports and services necessary to enhance the 
     family's capacity to meet the developmental needs of the 
     infant or toddler; and
       ``(3) a written individualized family service plan 
     developed by a multidisciplinary team, including the parents, 
     as required by subsection (e).
       ``(b) Periodic Review.--The individualized family service 
     plan shall be evaluated once a year and the family shall be 
     provided a review of the plan at 6-month intervals (or more 
     often where appropriate based on infant or toddler and family 
     needs).
       ``(c) Promptness After Assessment.--The individualized 
     family service plan shall be developed within a reasonable 
     time after the assessment required by subsection (a)(1) is 
     completed. With the parents' consent, early intervention 
     services may commence prior to the completion of the 
     assessment.
       ``(d) Content of Plan.---The individualized family service 
     plan shall be in writing and contain--
       ``(1) a statement of the infant's or toddler's present 
     levels of physical development, cognitive development, 
     communication development, social or emotional development, 
     and adaptive development, based on objective criteria;
       ``(2) a statement of the family's resources, priorities, 
     and concerns relating to enhancing the development of the 
     family's infant or toddler with a disability;
       ``(3) a statement of the major 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 the 
     services will not be provided in a natural environment;
       ``(6) the projected dates for initiation of services and 
     the anticipated duration of the services;
       ``(7) the identification of the service coordinator from 
     the profession most immediately relevant to the infant's or 
     toddler's or family's needs (or who is otherwise qualified to 
     carry out all applicable responsibilities under this part) 
     who will be responsible for the implementation of the plan 
     and coordination with other agencies and persons; and
       ``(8) the steps to be taken to support the transition of 
     the toddler with a disability to preschool or other 
     appropriate services.
       ``(e) Parental Consent.---The contents of the 
     individualized family service plan shall be fully explained 
     to the parents and informed written consent from the parents 
     shall be obtained prior to the provision of early 
     intervention services described in such plan. If the parents 
     do not provide consent with respect to a particular early 
     intervention service, then the early intervention services to 
     which consent is obtained shall be provided.

     ``SEC. 637. STATE APPLICATION AND ASSURANCES.

       ``(a) Application.--A State desiring to receive a grant 
     under section 633 shall submit an application to the 
     Secretary at such time and in such manner as the Secretary 
     may reasonably require. The application shall contain--
       ``(1) a designation of the lead agency in the State that 
     will be responsible for the administration of funds provided 
     under section 633;
       ``(2) a designation of an individual or entity responsible 
     for assigning financial responsibility among appropriate 
     agencies;
       ``(3) information demonstrating eligibility of the State 
     under section 634, including--
       ``(A) information demonstrating to the Secretary's 
     satisfaction that the State has in effect the statewide 
     system required by section 633; and
       ``(B) a description of services to be provided to infants 
     and toddlers with disabilities and their families through the 
     system;
       ``(4) if the State provides services to at-risk infants and 
     toddlers through the system, a description of such services;
       ``(5) a description of the uses for which funds will be 
     expended in accordance with this part;
       ``(6) a description of the procedure used to ensure that 
     resources are made available under this part for all 
     geographic areas within the State;
       ``(7) 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;
       ``(8) 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

[[Page H2519]]

       ``(ii) the lead agency designated or established under 
     section 635(a)(10) will--

       ``(I) notify the local educational agency for the area in 
     which such a child resides that the child will shortly reach 
     the age of eligibility for preschool services under part B, 
     as determined in accordance with State law;
       ``(II) in the case of a child who may be eligible for such 
     preschool services, with the approval of the family of the 
     child, convene a conference among the lead agency, the 
     family, and the local educational agency at least 90 days 
     (and at the discretion of all such parties, up to 6 months) 
     before the child is eligible for the preschool services, to 
     discuss any such services that the child may receive; and
       ``(III) in the case of a child who may not be eligible for 
     such preschool services, with the approval of the family, 
     make reasonable efforts to convene a conference among the 
     lead agency, the family, and providers of other appropriate 
     services for children who are not eligible for preschool 
     services under part B, to discuss the appropriate services 
     that the child may receive;

       ``(B) to review the child's program options for the period 
     from the child's third birthday through the remainder of the 
     school year; and
       ``(C) to establish a transition plan; and
       ``(9) such other information and assurances as the 
     Secretary may reasonably require.
       ``(b) Assurances.--The application described in subsection 
     (a)--
       ``(1) shall provide satisfactory assurance that Federal 
     funds made available under section 643 to the State will be 
     expended in accordance with this part;
       ``(2) shall contain an assurance that the State will comply 
     with the requirements of section 640;
       ``(3) shall provide satisfactory assurance that the control 
     of funds provided under section 643, and title to property 
     derived from those funds, will be in a public agency for the 
     uses and purposes provided in this part and that a public 
     agency will administer such funds and property;
       ``(4) shall provide for--
       ``(A) making such reports in such form and containing such 
     information as the Secretary may require to carry out the 
     Secretary's functions under this part; and
       ``(B) keeping such records and affording such access to 
     them as the Secretary may find necessary to ensure the 
     correctness and verification of those reports and proper 
     disbursement of Federal funds under this part;
       ``(5) provide satisfactory assurance that Federal funds 
     made available under section 643 to the State--
       ``(A) will not be commingled with State funds; and
       ``(B) will be used so as to supplement the level of State 
     and local funds expended for infants and toddlers with 
     disabilities and their families and in no case to supplant 
     those State and local funds;
       ``(6) shall provide satisfactory assurance that such fiscal 
     control and fund accounting procedures will be adopted as may 
     be necessary to ensure proper disbursement of, and accounting 
     for, Federal funds paid under section 643 to the State;
       ``(7) shall provide satisfactory assurance that policies 
     and procedures have been adopted to ensure meaningful 
     involvement of underserved groups, including minority, low-
     income, and rural families, in the planning and 
     implementation of all the requirements of this part; and
       ``(8) shall contain such other information and assurances 
     as the Secretary may reasonably require by regulation.
       ``(c) Standard for Disapproval of Application.--The 
     Secretary may not disapprove such an application unless the 
     Secretary determines, after notice and opportunity for a 
     hearing, that the application fails to comply with the 
     requirements of this section.
       ``(d) Subsequent State Application.--If a State has on file 
     with the Secretary a policy, procedure, or assurance that 
     demonstrates that the State meets a requirement of this 
     section, including any policy or procedure filed under part H 
     (as in effect before July 1, 1998), the Secretary shall 
     consider the State to have met the requirement for purposes 
     of receiving a grant under this part.
       ``(e) Modification of Application.--An application 
     submitted by a State in accordance with this section shall 
     remain in effect until the State submits to the Secretary 
     such modifications as the State determines necessary. This 
     section shall apply to a modification of an application to 
     the same extent and in the same manner as this section 
     applies to the original application.
       ``(f) Modifications Required by the Secretary.--The 
     Secretary may require a State to modify its application under 
     this section, but only to the extent necessary to ensure the 
     State's compliance with this part, if--
       ``(1) an amendment is made to this Act, or a Federal 
     regulation issued under this Act;
       ``(2) a new interpretation of this Act is made by a Federal 
     court or the State's highest court; or
       ``(3) an official finding of noncompliance with Federal law 
     or regulations is made with respect to the State.

     ``SEC. 638. USES OF FUNDS.

       ``In addition to using funds provided under section 633 to 
     maintain and implement the statewide system required by such 
     section, a State may use such funds--
       ``(1) for direct early intervention services for infants 
     and toddlers with disabilities, and their families, under 
     this part that are not otherwise funded through other public 
     or private sources;
       ``(2) to expand and improve on services for infants and 
     toddlers and their families under this part that are 
     otherwise available;
       ``(3) to provide a free appropriate public education, in 
     accordance with part B, to children with disabilities from 
     their third birthday to the beginning of the following school 
     year; and
       ``(4) in any State that does not provide services for at-
     risk infants and toddlers under section 637(a)(4), to 
     strengthen the statewide system by initiating, expanding, or 
     improving collaborative efforts related to at-risk infants 
     and toddlers, including establishing linkages with 
     appropriate public or private community-based organizations, 
     services, and personnel for the purposes of--
       ``(A) identifying and evaluating at-risk infants and 
     toddlers;
       ``(B) making referrals of the infants and toddlers 
     identified and evaluated under subparagraph (A); and
       ``(C) conducting periodic follow-up on each such referral 
     to determine if the status of the infant or toddler involved 
     has changed with respect to the eligibility of the infant or 
     toddler for services under this part.

     ``SEC. 639. PROCEDURAL SAFEGUARDS.

       ``(a) Minimum Procedures.---The procedural safeguards 
     required to be included in a statewide system under section 
     635(a)(13) shall provide, at a minimum, the following:
       ``(1) The timely administrative resolution of complaints by 
     parents. Any party aggrieved by the findings and decision 
     regarding an administrative complaint shall have the right to 
     bring a civil action with respect to the complaint in any 
     State court of competent jurisdiction or in a district court 
     of the United States without regard to the amount in 
     controversy. In any action brought under this paragraph, the 
     court shall receive the records of the administrative 
     proceedings, shall hear additional evidence at the request of 
     a party, and, basing its decision on the preponderance of the 
     evidence, shall grant such relief as the court determines is 
     appropriate.
       ``(2) The right to confidentiality of personally 
     identifiable information, including the right of parents to 
     written notice of and written consent to the exchange of such 
     information among agencies consistent with Federal and State 
     law.
       ``(3) The right of the parents to determine whether they, 
     their infant or toddler, or other family members will accept 
     or decline any early intervention service under this part in 
     accordance with State law without jeopardizing other early 
     intervention services under this part.
       ``(4) The opportunity for parents to examine records 
     relating to assessment, screening, eligibility 
     determinations, and the development and implementation of the 
     individualized family service plan.
       ``(5) Procedures to protect the rights of the infant or 
     toddler whenever the parents of the infant or toddler are not 
     known or cannot be found or the infant or toddler is a ward 
     of the State, including the assignment of an individual (who 
     shall not be an employee of the State lead agency, or other 
     State agency, and who shall not be any person, or any 
     employee of a person, providing early intervention services 
     to the infant or toddler or any family member of the infant 
     or toddler) to act as a surrogate for the parents.
       ``(6) Written prior notice to the parents of the infant or 
     toddler with a disability whenever the State agency or 
     service provider proposes to initiate or change or refuses to 
     initiate or change the identification, evaluation, or 
     placement of the infant or toddler with a disability, or the 
     provision of appropriate early intervention services to the 
     infant or toddler.
       ``(7) Procedures designed to ensure that the notice 
     required by paragraph (6) fully informs the parents, in the 
     parents' native language, unless it clearly is not feasible 
     to do so, of all procedures available pursuant to this 
     section.
       ``(8) The right of parents to use mediation in accordance 
     with section 615(e), except that--
       ``(A) any reference in the section to a State educational 
     agency shall be considered to be a reference to a State's 
     lead agency established or designated under section 
     635(a)(10);
       ``(B) any reference in the section to a local educational 
     agency shall be considered to be a reference to a local 
     service provider or the State's lead agency under this part, 
     as the case may be; and
       ``(C) any reference in the section to the provision of free 
     appropriate public education to children with disabilities 
     shall be considered to be a reference to the provision of 
     appropriate early intervention services to infants and 
     toddlers with disabilities.
       ``(b) Services During Pendency of Proceedings.--During the 
     pendency of any proceeding or action involving a complaint by 
     the parents of an infant or toddler with a disability, unless 
     the State agency and the parents otherwise agree, the infant 
     or toddler shall continue to receive the appropriate early 
     intervention services currently being provided or, if 
     applying for initial services, shall receive the services not 
     in dispute.

     ``SEC. 640. PAYOR OF LAST RESORT.

       ``(a) Nonsubstitution.--Funds provided under section 643 
     may not be used to satisfy a financial commitment for 
     services that would have been paid for from another public or 
     private source, including any medical program administered by 
     the Secretary of Defense, but for the enactment of this part, 
     except that whenever considered necessary to

[[Page H2520]]

     prevent a delay in the receipt of appropriate early 
     intervention services by an infant, toddler, or family in a 
     timely fashion, funds provided under section 643 may be used 
     to pay the provider of services pending reimbursement from 
     the agency that has ultimate responsibility for the payment.
       ``(b) Reduction of Other Benefits--Nothing in this part 
     shall be construed to permit the State to reduce medical or 
     other assistance available or to alter eligibility under 
     title V of the Social Security Act (relating to maternal and 
     child health) or title XIX of the Social Security Act 
     (relating to medicaid for infants or toddlers with 
     disabilities) within the State.

     ``SEC. 641. STATE INTERAGENCY COORDINATING COUNCIL.

       ``(a) Establishment.--
       ``(1) In general.--A State that desires to receive 
     financial assistance under this part shall establish a State 
     interagency coordinating council.
       ``(2) Appointment.--The council shall be appointed by the 
     Governor. In making appointments to the council, the Governor 
     shall ensure that the membership of the council reasonably 
     represents the population of the State.
       ``(3) Chairperson.--The Governor shall designate a member 
     of the council to serve as the chairperson of the council, or 
     shall require the council to so designate such a member. Any 
     member of the council who is a representative of the lead 
     agency designated under section 635(a)(10) may not serve as 
     the chairperson of the council.
       ``(b) Composition.--
       ``(1) In general.--The council shall be composed as 
     follows:
       ``(A) Parents.--At least 20 percent of the members shall be 
     parents of infants or toddlers with disabilities or children 
     with disabilities aged 12 or younger, with knowledge of, or 
     experience with, programs for infants and toddlers with 
     disabilities. At least one such member shall be a parent of 
     an infant or toddler with a disability or a child with a 
     disability aged 6 or younger.
       ``(B) Service providers.--At least 20 percent of the 
     members shall be public or private providers of early 
     intervention services.
       ``(C) State legislature.--At least one member shall be from 
     the State legislature.
       ``(D) Personnel preparation.--At least one member shall be 
     involved in personnel preparation.
       ``(E) Agency for early intervention services.--At least one 
     member shall be from each of the State agencies involved in 
     the provision of, or payment for, early intervention services 
     to infants and toddlers with disabilities and their families 
     and shall have sufficient authority to engage in policy 
     planning and implementation on behalf of such agencies.
       ``(F) Agency for preschool services.--At least one member 
     shall be from the State educational agency responsible for 
     preschool services to children with disabilities and shall 
     have sufficient authority to engage in policy planning and 
     implementation on behalf of such agency.
       ``(G) Agency for health insurance.--At least one member 
     shall be from the agency responsible for the State governance 
     of health insurance.
       ``(H) Head start agency.--At least one representative from 
     a Head Start agency or program in the State.
       ``(I) Child care agency.--At least one representative from 
     a State agency responsible for child care.
       ``(2) Other members.--The council may include other members 
     selected by the Governor, including a representative from the 
     Bureau of Indian Affairs, or where there is no BIA-operated 
     or BIA-funded school, from the Indian Health Service or the 
     tribe or tribal council.
       ``(c) Meetings.--The council shall meet at least quarterly 
     and in such places as it deems necessary. The meetings shall 
     be publicly announced, and, to the extent appropriate, open 
     and accessible to the general public.
       ``(d) Management Authority.--Subject to the approval of the 
     Governor, the council may prepare and approve a budget using 
     funds under this part to conduct hearings and forums, to 
     reimburse members of the council for reasonable and necessary 
     expenses for attending council meetings and performing 
     council duties (including child care for parent 
     representatives), to pay compensation to a member of the 
     council if the member is not employed or must forfeit wages 
     from other employment when performing official council 
     business, to hire staff, and to obtain the services of such 
     professional, technical, and clerical personnel as may be 
     necessary to carry out its functions under this part.
       ``(e) Functions of Council.--
       ``(1) Duties.--The council shall--
       ``(A) advise and assist the lead agency designated or 
     established under section 635(a)(10) in the performance of 
     the responsibilities set forth in such section, particularly 
     the identification of the sources of fiscal and other support 
     for services for early intervention programs, assignment of 
     financial responsibility to the appropriate agency, and the 
     promotion of the interagency agreements;
       ``(B) advise and assist the lead agency in the preparation 
     of applications and amendments thereto;
       ``(C) advise and assist the State educational agency 
     regarding the transition of toddlers with disabilities to 
     preschool and other appropriate services; and
       ``(D) prepare and submit an annual report to the Governor 
     and to the Secretary on the status of early intervention 
     programs for infants and toddlers with disabilities and their 
     families operated within the State.
       ``(2) Authorized activity.--The council may advise and 
     assist the lead agency and the State educational agency 
     regarding the provision of appropriate services for children 
     from birth through age 5. The council may advise appropriate 
     agencies in the State with respect to the integration of 
     services for infants and toddlers with disabilities and at-
     risk infants and toddlers and their families, regardless of 
     whether at-risk infants and toddlers are eligible for early 
     intervention services in the State.
       ``(f) Conflict of Interest.--No member of the council shall 
     cast a vote on any matter that would provide direct financial 
     benefit to that member or otherwise give the appearance of a 
     conflict of interest under State law.

     ``SEC. 642. FEDERAL ADMINISTRATION.

       ``Sections 616, 617, and 618 shall, to the extent not 
     inconsistent with this part, apply to the program authorized 
     by this part, except that--
       ``(1) any reference in such sections to a State educational 
     agency shall be considered to be a reference to a State's 
     lead agency established or designated under section 
     635(a)(10);
       ``(2) any reference in such sections to a local educational 
     agency, educational service agency, or a State agency shall 
     be considered to be a reference to an early intervention 
     service provider under this part; and
       ``(3) any reference to the education of children with 
     disabilities or the education of all children with 
     disabilities shall be considered to be a reference to the 
     provision of appropriate early intervention services to 
     infants and toddlers with disabilities.

     ``SEC. 643. ALLOCATION OF FUNDS.

       ``(a) Reservation of Funds for Outlying Areas.--
       ``(1) In general.--From the sums appropriated to carry out 
     this part for any fiscal year, the Secretary may reserve up 
     to one percent for payments to Guam, American Samoa, the 
     Virgin Islands, and the Commonwealth of the Northern Mariana 
     Islands in accordance with their respective needs.
       ``(2) Consolidation of funds.--The provisions of Public Law 
     95-134, permitting the consolidation of grants to the 
     outlying areas, shall not apply to funds those areas receive 
     under this part.
       ``(b) Payments to Indians.--
       ``(1) In general.--The Secretary shall, subject to this 
     subsection, make payments to the Secretary of the Interior to 
     be distributed to tribes, tribal organizations (as defined 
     under section 4 of the Indian Self-Determination and 
     Education Assistance Act), or consortia of the above entities 
     for the coordination of assistance in the provision of early 
     intervention services by the States to infants and toddlers 
     with disabilities and their families on reservations served 
     by elementary and secondary schools for Indian children 
     operated or funded by the Department of the Interior. The 
     amount of such payment for any fiscal year shall be 1.25 
     percent of the aggregate of the amount available to all 
     States under this part for such fiscal year.
       ``(2) Allocation.--For each fiscal year, the Secretary of 
     the Interior shall distribute the entire payment received 
     under paragraph (1) by providing to each tribe, tribal 
     organization, or consortium an amount based on the number of 
     infants and toddlers residing on the reservation, as 
     determined annually, divided by the total of such children 
     served by all tribes, tribal organizations, or consortia.
       ``(3) Information.--To receive a payment under this 
     subsection, the tribe, tribal organization, or consortium 
     shall submit such information to the Secretary of the 
     Interior as is needed to determine the amounts to be 
     distributed under paragraph (2).
       ``(4) Use of funds.--The funds received by a tribe, tribal 
     organization, or consortium shall be used to assist States in 
     child-find, screening, and other procedures for the early 
     identification of Indian children under 3 years of age and 
     for parent training. Such funds may also be used to provide 
     early intervention services in accordance with this part. 
     Such activities may be carried out directly or through 
     contracts or cooperative agreements with the BIA, local 
     educational agencies, and other public or private nonprofit 
     organizations. The tribe, tribal organization, or consortium 
     is encouraged to involve Indian parents in the development 
     and implementation of these activities. The above entities 
     shall, as appropriate, make referrals to local, State, or 
     Federal entities for the provision of services or further 
     diagnosis.
       ``(5) Reports.--To be eligible to receive a grant under 
     paragraph (2), a tribe, tribal organization, or consortium 
     shall make 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(i)(3)(E). The Secretary of 
     Education may require any additional information from the 
     Secretary of the Interior.

[[Page H2521]]

       ``(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 1998 and 1999.--
       ``(A) In general.--Except as provided in paragraph (4), no 
     State may receive an amount under this section for either 
     fiscal year 1998 or 1999 that is less than the sum of the 
     amounts such State received for fiscal year 1994 under--
       ``(i) part H (as in effect for such fiscal year); 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 allotments to such States for such year.
       ``(B) Additional funds.--If additional funds become 
     available for making payments under this subsection for a 
     fiscal year, allotments that were reduced under subparagraph 
     (A) shall be increased on the same basis they were reduced.
       ``(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. FEDERAL INTERAGENCY COORDINATING COUNCIL.

       ``(a) Establishment and Purpose.--
       ``(1) In general.--The Secretary shall establish a Federal 
     Interagency Coordinating Council in order to--
       ``(A) minimize duplication of programs and activities 
     across Federal, State, and local agencies, relating to--
       ``(i) early intervention services for infants and toddlers 
     with disabilities (including at-risk infants and toddlers) 
     and their families; and
       ``(ii) preschool or other appropriate services for children 
     with disabilities;
       ``(B) ensure the effective coordination of Federal early 
     intervention and preschool programs and policies across 
     Federal agencies;
       ``(C) coordinate the provision of Federal technical 
     assistance and support activities to States;
       ``(D) identify gaps in Federal agency programs and 
     services; and
       ``(E) identify barriers to Federal interagency cooperation.
       ``(2) Appointments.--The council established under 
     paragraph (1) (hereafter in this section referred to as the 
     ``Council'') and the chairperson of the Council shall be 
     appointed by the Secretary in consultation with other 
     appropriate Federal agencies. In making the appointments, the 
     Secretary shall ensure that each member has sufficient 
     authority to engage in policy planning and implementation on 
     behalf of the department, agency, or program that the member 
     represents.
       ``(b) Composition.--The Council shall be composed of--
       ``(1) a representative of the Office of Special Education 
     Programs;
       ``(2) a representative of the National Institute on 
     Disability and Rehabilitation Research and a representative 
     of the Office of Educational Research and Improvement;
       ``(3) a representative of the Maternal and Child Health 
     Services Block Grant Program;
       ``(4) a representative of programs administered under the 
     Developmental Disabilities Assistance and Bill of Rights Act;
       ``(5) a representative of the Health Care Financing 
     Administration;
       ``(6) a representative of the Division of Birth Defects and 
     Developmental Disabilities of the Centers for Disease 
     Control;
       ``(7) a representative of the Social Security 
     Administration;
       ``(8) a representative of the special supplemental 
     nutrition program for women, infants, and children of the 
     Department of Agriculture;
       ``(9) a representative of the National Institute of Mental 
     Health;
       ``(10) a representative of the National Institute of Child 
     Health and Human Development;
       ``(11) a representative of the Bureau of Indian Affairs of 
     the Department of the Interior;
       ``(12) a representative of the Indian Health Service;
       ``(13) a representative of the Surgeon General;
       ``(14) a representative of the Department of Defense;
       ``(15) a representative of the Children's Bureau, and a 
     representative of the Head Start Bureau, of the 
     Administration for Children and Families;
       ``(16) a representative of the Substance Abuse and Mental 
     Health Services Administration;
       ``(17) a representative of the Pediatric AIDS Health Care 
     Demonstration Program in the Public Health Service;
       ``(18) parents of children with disabilities age 12 or 
     under (who shall constitute at least 20 percent of the 
     members of the Council), of whom at least one must have a 
     child with a disability under the age of 6;
       ``(19) at least 2 representatives of State lead agencies 
     for early intervention services to infants and toddlers, one 
     of whom must be a representative of a State educational 
     agency and the other a representative of a non-educational 
     agency;
       ``(20) other members representing appropriate agencies 
     involved in the provision of, or payment for, early 
     intervention services and special education and related 
     services to infants and toddlers with disabilities and their 
     families and preschool children with disabilities; and
       ``(21) other persons appointed by the Secretary.
       ``(c) Meetings.--The Council shall meet at least quarterly 
     and in such places as the Council deems necessary. The 
     meetings shall be publicly announced, and, to the extent 
     appropriate, open and accessible to the general public.
       ``(d) Functions of the Council.--The Council shall--
       ``(1) advise and assist the Secretary of Education, the 
     Secretary of Health and Human Services, the Secretary of 
     Defense, the Secretary of the Interior, the Secretary of 
     Agriculture, and the Commissioner of Social Security in the 
     performance of their responsibilities related to serving 
     children from birth through age 5 who are eligible for 
     services under this part or under part B;
       ``(2) conduct policy analyses of Federal programs related 
     to the provision of early intervention services and special 
     educational and related services to infants and toddlers with 
     disabilities and their families, and preschool children with 
     disabilities, in order to determine areas of conflict, 
     overlap, duplication, or inappropriate omission;
       ``(3) identify strategies to address issues described in 
     paragraph (2);
       ``(4) develop and recommend joint policy memoranda 
     concerning effective interagency collaboration, including 
     modifications to regulations, and the elimination of barriers 
     to interagency programs and activities;
       ``(5) coordinate technical assistance and disseminate 
     information on best practices, effective program coordination 
     strategies, and recommendations for improved early 
     intervention programming for infants and toddlers with 
     disabilities and their families and preschool children with 
     disabilities; and
       ``(6) facilitate activities in support of States' 
     interagency coordination efforts.
       ``(e) Conflict of Interest.--No member of the Council shall 
     cast a vote on any matter that would provide direct financial 
     benefit to that member or otherwise give the appearance of a 
     conflict of interest under Federal law.
       ``(f) Federal Advisory Committee Act.--The Federal Advisory 
     Committee Act (5 U.S.C. App.) shall not apply to the 
     establishment or operation of the Council.

     ``SEC. 645. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this part, there are 
     authorized to be appropriated $400,000,000 for fiscal year 
     1998 and such sums as may be necessary for each of the fiscal 
     years 1999 through 2002.

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

    ``Subpart 1--State Program Improvement Grants for Children with 
                              Disabilities

     ``SEC. 651. FINDINGS AND PURPOSE.

       ``(a) Findings.--The Congress finds the following:
       ``(1) States are responding with some success to multiple 
     pressures to improve educational and transitional services 
     and results for children with disabilities in response to 
     growing demands imposed by ever-changing factors, such as 
     demographics, social policies, and labor and economic 
     markets.
       ``(2) In order for States to address such demands and to 
     facilitate lasting systemic change that is of benefit to all 
     students, including children with disabilities, States must 
     involve local educational agencies, parents, individuals with 
     disabilities and their families, teachers and other service 
     providers, and other interested individuals and organizations 
     in carrying out comprehensive strategies to improve 
     educational results for children with disabilities.

[[Page H2522]]

       ``(3) Targeted Federal financial resources are needed to 
     assist States, working in partnership with others, to 
     identify and make needed changes to address the needs of 
     children with disabilities into the next century.
       ``(4) State educational agencies, in partnership with local 
     educational agencies and other individuals and organizations, 
     are in the best position to identify and design ways to meet 
     emerging and expanding demands to improve education for 
     children with disabilities and to address their special 
     needs.
       ``(5) Research, demonstration, and practice over the past 
     20 years in special education and related disciplines have 
     built a foundation of knowledge on which State and local 
     systemic-change activities can now be based.
       ``(6) Such research, demonstration, and practice in special 
     education and related disciplines have demonstrated that an 
     effective educational system now and in the future must--
       ``(A) maintain high academic standards and clear 
     performance goals for children with disabilities, consistent 
     with the standards and expectations for all students in the 
     educational system, and provide for appropriate and effective 
     strategies and methods to ensure that students who are 
     children with disabilities have maximum opportunities to 
     achieve those standards and goals;
       ``(B) create a system that fully addresses the needs of all 
     students, including children with disabilities, by addressing 
     the needs of children with disabilities in carrying out 
     educational reform activities;
       ``(C) clearly define, in measurable terms, the school and 
     post-school results that children with disabilities are 
     expected to achieve;
       ``(D) promote service integration, and the coordination of 
     State and local education, social, health, mental health, and 
     other services, in addressing the full range of student 
     needs, particularly the needs of children with disabilities 
     who require significant levels of support to maximize their 
     participation and learning in school and the community;
       ``(E) ensure that children with disabilities are provided 
     assistance and support in making transitions as described in 
     section 674(b)(3)(C);
       ``(F) promote comprehensive programs of professional 
     development to ensure that the persons responsible for the 
     education or a transition of children with disabilities 
     possess the skills and knowledge necessary to address the 
     educational and related needs of those children;
       ``(G) disseminate to teachers and other personnel serving 
     children with disabilities research-based knowledge about 
     successful teaching practices and models and provide 
     technical assistance to local educational agencies and 
     schools on how to improve results for children with 
     disabilities;
       ``(H) create school-based disciplinary strategies that will 
     be used to reduce or eliminate the need to use suspension and 
     expulsion as disciplinary options for children with 
     disabilities;
       ``(I) establish placement-neutral funding formulas and 
     cost-effective strategies for meeting the needs of children 
     with disabilities; and
       ``(J) involve individuals with disabilities and parents of 
     children with disabilities in planning, implementing, and 
     evaluating systemic-change activities and educational 
     reforms.
       ``(b) Purpose.--The purpose of this subpart is to assist 
     State educational agencies, and their partners referred to in 
     section 652(b), in reforming and improving their systems for 
     providing educational, early intervention, and transitional 
     services, including their systems for professional 
     development, technical assistance, and dissemination of 
     knowledge about best practices, to improve results for 
     children with disabilities.

     ``SEC. 652. ELIGIBILITY AND COLLABORATIVE PROCESS.

       ``(a) Eligible Applicants.--A State educational agency may 
     apply for a grant under this subpart for a grant period of 
     not less than 1 year and not more than 5 years.
       ``(b) Partners.--
       ``(1) Required partners.--
       ``(A) Contractual partners.--In order to be considered for 
     a grant under this subpart, a State educational agency shall 
     establish a partnership with local educational agencies and 
     other State agencies involved in, or concerned with, the 
     education of children with disabilities.
       ``(B) Other partners.--In order to be considered for a 
     grant under this subpart, a State educational agency shall 
     work in partnership with other persons and organizations 
     involved in, and concerned with, the education of children 
     with disabilities, including--
       ``(i) the Governor;
       ``(ii) parents of children with disabilities;
       ``(iii) parents of nondisabled children;
       ``(iv) individuals with disabilities;
       ``(v) organizations representing individuals with 
     disabilities and their parents, such as parent training and 
     information centers;
       ``(vi) community-based and other nonprofit organizations 
     involved in the education and employment of individuals with 
     disabilities;
       ``(vii) the lead State agency for part C;
       ``(viii) general and special education teachers, and early 
     intervention personnel;
       ``(ix) the State advisory panel established under part C;
       ``(x) the State interagency coordinating council 
     established under part C; and
       ``(xi) institutions of higher education within the State.
       ``(2) Optional partners.--A partnership under subparagraph 
     (A) or (B) of paragraph (1) may also include--
       ``(A) individuals knowledgeable about vocational education;
       ``(B) the State agency for higher education;
       ``(C) the State vocational rehabilitation agency;
       ``(D) public agencies with jurisdiction in the areas of 
     health, mental health, social services, and juvenile justice; 
     and
       ``(E) other individuals.

     ``SEC. 653. APPLICATIONS.

       ``(a) In General.--
       ``(1) Submission.--A State educational agency that desires 
     to receive a grant under this subpart shall submit to the 
     Secretary an application at such time, in such manner, and 
     including such information as the Secretary may require.
       ``(2) State improvement plan.--The application shall 
     include a State improvement plan that--
       ``(A) 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; 
     and
       ``(B) meets the requirements of this section.
       ``(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)(16).
       ``(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 educational agency, 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--
       ``(i) the number of personnel providing special education 
     and related services; and
       ``(ii) relevant information on current and anticipated 
     personnel vacancies and shortages (including the number of 
     individuals described in clause (i) with temporary 
     certification), 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;
       ``(C) an analysis of the major findings of the Secretary's 
     most recent reviews of State compliance, as they relate to 
     improving results for children with disabilities; and
       ``(D) an analysis of other information, reasonably 
     available to the State, 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 a partnership agreement that--
       ``(A) specifies--
       ``(i) the nature and extent of the partnership among the 
     State educational agency, local educational agencies, and 
     other State agencies involved in, or concerned with, the 
     education of children with disabilities, and the respective 
     roles of each member of the partnership; and
       ``(ii) how such agencies will work in partnership with 
     other persons and organizations involved in, and concerned 
     with, the education of children with disabilities, including 
     the respective roles of each of these persons and 
     organizations; and
       ``(B) is in effect for the period of the grant;
       ``(2) describe how grant funds will be used in undertaking 
     the systemic-change activities, and the amount and nature of 
     funds from any other sources, including part B funds retained 
     for use at the State level under sections 611(f) and 619(d), 
     that will be committed to the systemic-change activities;
       ``(3) describe the strategies the State will use to address 
     the needs identified under subsection (b), including--
       ``(A) how the State will change State policies and 
     procedures to address systemic barriers to improving results 
     for children with disabilities;
       ``(B) how the State will hold local educational agencies 
     and schools accountable for educational progress of children 
     with disabilities;
       ``(C) how the State will provide technical assistance to 
     local educational agencies and schools to improve results for 
     children with disabilities;
       ``(D) how the State 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 
     special education, general education, related services, or 
     early intervention services) have the skills and

[[Page H2523]]

     knowledge necessary to meet the needs of children with 
     disabilities, including a description of how--
       ``(i) the State will prepare general 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 (on both a pre-service and 
     an in-service basis) prepare personnel who work with children 
     with disabilities to ensure that those institutions and 
     entities develop the capacity to support quality professional 
     development programs that meet State and local needs;
       ``(iv) 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;
       ``(v) the State 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;
       ``(vi) the State will enhance the ability of teachers and 
     others to use strategies, such as behavioral interventions, 
     to address the conduct of children with disabilities that 
     impedes the learning of children with disabilities and 
     others;
       ``(vii) the State will acquire and disseminate, to 
     teachers, administrators, school board members, and related 
     services personnel, significant knowledge derived from 
     educational research and other sources, and how the State 
     will, when appropriate, adopt promising practices, materials, 
     and technology;
       ``(viii) the State will recruit, prepare, and retain 
     qualified personnel, including personnel with disabilities 
     and personnel from groups that are underrepresented in the 
     fields of regular education, special education, and related 
     services;
       ``(ix) the plan is integrated, to the maximum extent 
     possible, with other professional development plans and 
     activities, including plans and activities developed and 
     carried out under other Federal and State laws that address 
     personnel recruitment and training; and
       ``(x) the State will provide for the joint training of 
     parents and special education, related services, and general 
     education personnel;
       ``(E) strategies that will address systemic problems 
     identified in Federal compliance reviews, including shortages 
     of qualified personnel;
       ``(F) how the State will disseminate results of the local 
     capacity-building and improvement projects funded under 
     section 611(f)(4);
       ``(G) how the State will address improving results for 
     children with disabilities in the geographic areas of 
     greatest need; and
       ``(H) how the State will assess, on a regular basis, the 
     extent to which the strategies implemented under this subpart 
     have been effective; and
       ``(4) describe how the improvement strategies described in 
     paragraph (3) will be coordinated with public and private 
     sector resources.
       ``(d) Competitive Awards.--
       ``(1) In general.--The Secretary shall make grants under 
     this subpart on a competitive basis.
       ``(2) Priority.--The Secretary may give priority to 
     applications on the basis of need, as indicated by such 
     information as the findings of Federal compliance reviews.
       ``(e) Peer Review.--
       ``(1) In general.--The Secretary shall use a panel of 
     experts who are competent, by virtue of their training, 
     expertise, or experience, to evaluate applications under this 
     subpart.
       ``(2) Composition of panel.--A majority of a panel 
     described in paragraph (1) shall be composed of individuals 
     who are not employees of the Federal Government.
       ``(3) Payment of fees and expenses of certain members.--The 
     Secretary may use available funds appropriated to carry out 
     this subpart to pay the expenses and fees of panel members 
     who are not employees of the Federal Government.
       ``(f) Reporting Procedures.--Each State educational agency 
     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 
     than annually. The reports shall describe the progress of the 
     State in meeting the performance goals established under 
     section 612(a)(16), analyze the effectiveness of the State's 
     strategies in meeting those goals, and identify any changes 
     in the strategies needed to improve its performance.

     ``SEC. 654. USE OF FUNDS.

       ``(a) In General.--
       ``(1) Activities.--A State educational agency that receives 
     a grant under this subpart may use the grant to carry out any 
     activities that are described in the State's application and 
     that are consistent with the purpose of this subpart.
       ``(2) Contracts and subgrants.--Each such State educational 
     agency--
       ``(A) shall, consistent with its partnership agreement 
     under section 652(b), award contracts or subgrants to local 
     educational agencies, institutions of higher education, and 
     parent training and information centers, as appropriate, to 
     carry out its State improvement plan under this subpart; and
       ``(B) may award contracts and subgrants to other public and 
     private entities, including the lead agency under part C, to 
     carry out such plan.
       ``(b) Use of Funds for Professional Development.--A State 
     educational agency that receives a grant under this subpart--
       ``(1) shall use not less than 75 percent of the funds it 
     receives under the grant for any fiscal year--
       ``(A) to ensure that there are sufficient regular 
     education, special education, and related services personnel 
     who have the skills and knowledge necessary to meet the needs 
     of children with disabilities and developmental goals of 
     young children; or
       ``(B) to work with other States on common certification 
     criteria; or
       ``(2) shall use not less than 50 percent of such funds for 
     such purposes, if the State demonstrates to the Secretary's 
     satisfaction that it has the personnel described in paragraph 
     (1)(A).
       ``(c) Grants to Outlying Areas.--Public Law 95-134, 
     permitting the consolidation of grants to the outlying areas, 
     shall not apply to funds received under this subpart.

     ``SEC. 655. MINIMUM STATE GRANT AMOUNTS.

       ``(a) In General.--The Secretary shall make a grant to each 
     State educational agency whose application the Secretary has 
     selected for funding under this subpart in an amount for each 
     fiscal year that is--
       ``(1) not less than $500,000, nor more than $2,000,000, in 
     the case of the 50 States, the District of Columbia, and the 
     Commonwealth of Puerto Rico; and
       ``(2) not less than $80,000, in the case of an outlying 
     area.
       ``(b) Inflation Adjustment.--Beginning with fiscal year 
     1999, the Secretary may increase the maximum amount described 
     in subsection (a)(1) to account for inflation.
       ``(c) Factors.--The Secretary shall set the amount of each 
     grant under subsection (a) after considering--
       ``(1) the amount of funds available for making the grants;
       ``(2) the relative population of the State or outlying 
     area; and
       ``(3) the types of activities proposed by the State or 
     outlying area.

     ``SEC. 656. 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 1998 through 2002.

  ``Subpart 2--Coordinated Research, Personnel Preparation, Technical 
         Assistance, Support, and Dissemination of Information

     ``SEC. 661. ADMINISTRATIVE PROVISIONS.

       ``(a) Comprehensive Plan.--
       ``(1) In general.--The Secretary shall develop and 
     implement a comprehensive plan for activities carried out 
     under this subpart in order to enhance the provision of 
     educational, related, transitional, and early intervention 
     services to children with disabilities under parts B and C. 
     The plan shall include mechanisms to address educational, 
     related services, transitional, and early intervention needs 
     identified by State educational agencies in applications 
     submitted for State program improvement grants under subpart 
     1.
       ``(2) Participants in plan development.--In developing the 
     plan described in paragraph (1), the Secretary shall consult 
     with--
       ``(A) individuals with disabilities;
       ``(B) parents of children with disabilities;
       ``(C) appropriate professionals; and
       ``(D) representatives of State and local educational 
     agencies, private schools, institutions of higher education, 
     other Federal agencies, the National Council on Disability, 
     and national organizations with an interest in, and expertise 
     in, providing services to children with disabilities and 
     their families.
       ``(3) Public comment.--The Secretary shall take public 
     comment on the plan.
       ``(4) Distribution of funds.--In implementing the plan, the 
     Secretary shall, to the extent appropriate, ensure that funds 
     are awarded to recipients under this subpart to carry out 
     activities that benefit, directly or indirectly, children 
     with disabilities of all ages.
       ``(5) Reports to congress.--The Secretary shall 
     periodically report to the Congress on the Secretary's 
     activities under this subsection, including an initial report 
     not later than the date that is 18 months after the date of 
     the enactment of the Individuals with Disabilities Act 
     Amendments of 1997.
       ``(b) Eligible Applicants.--
       ``(1) In general.--Except as otherwise provided in this 
     subpart, the following entities are eligible to apply for a 
     grant, contract, or cooperative agreement under this subpart:
       ``(A) A State educational agency.
       ``(B) A local educational agency.
       ``(C) An institution of higher education.
       ``(D) Any other public agency.
       ``(E) A private nonprofit organization.
       ``(F) An outlying area.
       ``(G) An Indian tribe or a tribal organization (as defined 
     under section 4 of the Indian Self-Determination and 
     Education Assistance Act).
       ``(H) A for-profit organization, if the Secretary finds it 
     appropriate in light of the purposes of a particular 
     competition for a grant, contract, or cooperative agreement 
     under this subpart.

[[Page H2524]]

       ``(2) Special rule.--The Secretary may limit the entities 
     eligible for an award of a grant, contract, or cooperative 
     agreement to one or more categories of eligible entities 
     described in paragraph (1).
       ``(c) Use of Funds by Secretary.--Notwithstanding any other 
     provision of law, and in addition to any authority granted 
     the Secretary under chapter 1 or chapter 2, the Secretary may 
     use up to 20 percent of the funds available under either 
     chapter 1 or chapter 2 for any fiscal year to carry out any 
     activity, or combination of activities, subject to such 
     conditions as the Secretary determines are appropriate 
     effectively to carry out the purposes of such chapters, 
     that--
       ``(A) is consistent with the purposes of chapter 1, chapter 
     2, or both; and
       ``(B) involves--
       ``(i) research;
       ``(ii) personnel preparation;
       ``(iii) parent training and information;
       ``(iv) technical assistance and dissemination;
       ``(v) technology development, demonstration, and 
     utilization; or
       ``(vi) media services.
       ``(d) Special Populations.--
       ``(1) Application requirement.--In making an award of a 
     grant, contract, or cooperative agreement under this subpart, 
     the Secretary shall, as appropriate, require an applicant to 
     demonstrate how the applicant will address the needs of 
     children with disabilities from minority backgrounds.
       ``(2) Outreach and technical assistance.--
       ``(A) Requirement.--Notwithstanding any other provision of 
     this Act, the Secretary shall ensure that at least one 
     percent of the total amount of funds appropriated to carry 
     out this subpart is used for either or both of the following 
     activities:
       ``(i) To provide outreach and technical assistance to 
     Historically Black Colleges and Universities, and to 
     institutions of higher education with minority enrollments of 
     at least 25 percent, to promote the participation of such 
     colleges, universities, and institutions in activities under 
     this subpart.
       ``(ii) To enable Historically Black Colleges and 
     Universities, and the institutions described in clause (i), 
     to assist other colleges, universities, institutions, and 
     agencies in improving educational and transitional results 
     for children with disabilities.
       ``(B) Reservation of funds.--The Secretary may reserve 
     funds appropriated under this subpart to satisfy the 
     requirement of subparagraph (A).
       ``(e) Priorities.--
       ``(1) In general.--Except as otherwise explicitly 
     authorized in this subpart, the Secretary shall ensure that a 
     grant, contract, or cooperative agreement under chapter 1 or 
     2 is awarded only--
       ``(A) for activities that are designed to benefit children 
     with disabilities, their families, or the personnel employed 
     to work with such children or their families; or
       ``(B) to benefit other individuals with disabilities that 
     such chapter is intended to benefit.
       ``(2) Priority for particular activities.--Subject to 
     paragraph (1), the Secretary, in making an award of a grant, 
     contract, or cooperative agreement under this subpart, may, 
     without regard to the rule making procedures under section 
     553 of title 5, United States Code, limit competitions to, or 
     otherwise give priority to--
       ``(A) projects that address one or more--
       ``(i) age ranges;
       ``(ii) disabilities;
       ``(iii) school grades;
       ``(iv) types of educational placements or early 
     intervention environments;
       ``(v) types of services;
       ``(vi) content areas, such as reading; or
       ``(vii) effective strategies for helping children with 
     disabilities learn appropriate behavior in the school and 
     other community-based educational settings;
       ``(B) projects that address the needs of children based on 
     the severity of their disability;
       ``(C) projects that address the needs of--
       ``(i) low-achieving students;
       ``(ii) underserved populations;
       ``(iii) children from low-income families;
       ``(iv) children with limited English proficiency;
       ``(v) unserved and underserved areas;
       ``(vi) particular types of geographic areas; or
       ``(vii) children whose behavior interferes with their 
     learning and socialization;
       ``(D) projects to reduce inappropriate identification of 
     children as children with disabilities, particularly among 
     minority children;
       ``(E) projects that are carried out in particular areas of 
     the country, to ensure broad geographic coverage; and
       ``(F) any activity that is expressly authorized in chapter 
     1 or 2.
       ``(f) Applicant and Recipient Responsibilities.--
       ``(1) Development and assessment of projects.--The 
     Secretary shall require that an applicant for, and a 
     recipient of, a grant, contract, or cooperative agreement for 
     a project under this subpart--
       ``(A) involve individuals with disabilities or parents of 
     individuals with disabilities in planning, implementing, and 
     evaluating the project; and
       ``(B) where appropriate, determine whether the project has 
     any potential for replication and adoption by other entities.
       ``(2) Additional responsibilities.--The Secretary may 
     require a recipient of a grant, contract, or cooperative 
     agreement for a project under this subpart--
       ``(A) to share in the cost of the project;
       ``(B) to prepare the research and evaluation findings and 
     products from the project in formats that are useful for 
     specific audiences, including parents, administrators, 
     teachers, early intervention personnel, related services 
     personnel, and individuals with disabilities;
       ``(C) to disseminate such findings and products; and
       ``(D) to collaborate with other such recipients in carrying 
     out subparagraphs (B) and (C).
       ``(g) Application Management.--
       ``(1) Standing panel.--
       ``(A) In general.--The Secretary shall establish and use a 
     standing panel of experts who are competent, by virtue of 
     their training, expertise, or experience, to evaluate 
     applications under this subpart that, individually, request 
     more than $75,000 per year in Federal financial assistance.
       ``(B) Membership.--The standing panel shall include, at a 
     minimum--
       ``(i) individuals who are representatives of institutions 
     of higher education that plan, develop, and carry out 
     programs of personnel preparation;
       ``(ii) individuals who design and carry out programs of 
     research targeted to the improvement of special education 
     programs and services;
       ``(iii) individuals who have recognized experience and 
     knowledge necessary to integrate and apply research findings 
     to improve educational and transitional results for children 
     with disabilities;
       ``(iv) individuals who administer programs at the State or 
     local level in which children with disabilities participate;
       ``(v) individuals who prepare parents of children with 
     disabilities to participate in making decisions about the 
     education of their children;
       ``(vi) individuals who establish policies that affect the 
     delivery of services to children with disabilities;
       ``(vii) individuals who are parents of children with 
     disabilities who are benefiting, or have benefited, from 
     coordinated research, personnel preparation, and technical 
     assistance; and
       ``(viii) individuals with disabilities.
       ``(C) Training.--The Secretary shall provide training to 
     the individuals who are selected as members of the standing 
     panel under this paragraph.
       ``(D) Term.--No individual shall serve on the standing 
     panel for more than 3 consecutive years, unless the Secretary 
     determines that the individual's continued participation is 
     necessary for the sound administration of this subpart.
       ``(2) Peer-review panels for particular competitions.--
       ``(A) Composition.--The Secretary shall ensure that each 
     sub-panel selected from the standing panel that reviews 
     applications under this subpart includes--
       ``(i) individuals with knowledge and expertise on the 
     issues addressed by the activities authorized by the subpart; 
     and
       ``(ii) to the extent practicable, parents of children with 
     disabilities, individuals with disabilities, and persons from 
     diverse backgrounds.
       ``(B) Federal employment limitation.--A majority of the 
     individuals on each sub-panel that reviews an application 
     under this subpart shall be individuals who are not employees 
     of the Federal Government.
       ``(3) Use of discretionary funds for administrative 
     purposes.--
       ``(A) Expenses and fees of non-Federal panel members.--The 
     Secretary may use funds available under this subpart to pay 
     the expenses and fees of the panel members who are not 
     officers or employees of the Federal Government.
       ``(B) Administrative support.--The Secretary may use not 
     more than 1 percent of the funds appropriated to carry out 
     this subpart to pay non-Federal entities for administrative 
     support related to management of applications submitted under 
     this subpart.
       ``(C) Monitoring.--The Secretary may use funds available 
     under this subpart to pay the expenses of Federal employees 
     to conduct on-site monitoring of projects receiving $500,000 
     or more for any fiscal year under this subpart.
       ``(h) Program Evaluation.--The Secretary may use funds 
     appropriated to carry out this subpart to evaluate activities 
     carried out under the subpart.
       ``(i) Minimum Funding Required.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall ensure that, for each fiscal year, at least the 
     following amounts are provided under this subpart to address 
     the following needs:
       ``(A) $12,832,000 to address the educational, related 
     services, transitional, and early intervention needs of 
     children with deaf-blindness.
       ``(B) $4,000,000 to address the postsecondary, vocational, 
     technical, continuing, and adult education needs of 
     individuals with deafness.
       ``(C) $4,000,000 to address the educational, related 
     services, and transitional needs of children with an 
     emotional disturbance and those who are at risk of developing 
     an emotional disturbance.
       ``(2) Ratable reduction.--If the total amount appropriated 
     to carry out sections 672, 673, and 685 for any fiscal year 
     is less than $130,000,000, the amounts listed in paragraph 
     (1) shall be ratably reduced.

[[Page H2525]]

       ``(j) Eligibility for Financial Assistance.--Effective for 
     fiscal years for which the Secretary may make grants under 
     section 619(b), no State or local educational agency or 
     educational service agency or other public institution or 
     agency may receive a grant under this subpart which relates 
     exclusively to programs, projects, and activities pertaining 
     to children aged three to five, inclusive, unless the State 
     is eligible to receive a grant under section 619(b).

      ``Chapter 1--Improving Early Intervention, Educational, and 
   Transitional Services and Results for Children with Disabilities 
         through Coordinated Research and Personnel Preparation

     ``SEC. 671. FINDINGS AND PURPOSE.

       ``(a) Findings.--The Congress finds the following:
       ``(1) The Federal Government has an ongoing obligation to 
     support programs, projects, and activities that contribute to 
     positive results for children with disabilities, enabling 
     them--
       ``(A) to meet their early intervention, educational, and 
     transitional goals and, to the maximum extent possible, 
     educational standards that have been established for all 
     children; and
       ``(B) to acquire the skills that will empower them to lead 
     productive and independent adult lives.
       ``(2)(A) As a result of more than 20 years of Federal 
     support for research, demonstration projects, and personnel 
     preparation, there is an important knowledge base for 
     improving results for children with disabilities.
       ``(B) Such knowledge should be used by States and local 
     educational agencies to design and implement state-of-the-art 
     educational systems that consider the needs of, and include, 
     children with disabilities, especially in environments in 
     which they can learn along with their peers and achieve 
     results measured by the same standards as the results of 
     their peers.
       ``(3)(A) Continued Federal support is essential for the 
     development and maintenance of a coordinated and high-quality 
     program of research, demonstration projects, dissemination of 
     information, and personnel preparation.
       ``(B) Such support--
       ``(i) enables State educational agencies and local 
     educational agencies to improve their educational systems and 
     results for children with disabilities;
       ``(ii) enables State and local agencies to improve early 
     intervention services and results for infants and toddlers 
     with disabilities and their families; and
       ``(iii) enhances the opportunities for general and special 
     education personnel, related services personnel, parents, and 
     paraprofessionals to participate in pre-service and in-
     service training, to collaborate, and to improve results for 
     children with disabilities and their families.
       ``(4) The Federal Government plays a critical role in 
     facilitating the availability of an adequate number of 
     qualified personnel--
       ``(A) to serve effectively the over 5,000,000 children with 
     disabilities;
       ``(B) to assume leadership positions in administrative and 
     direct-service capacities related to teacher training and 
     research concerning the provision of early intervention 
     services, special education, and related services; and
       ``(C) to work with children with low-incidence disabilities 
     and their families.
       ``(5) The Federal Government performs the role described in 
     paragraph (4)--
       ``(A) by supporting models of personnel development that 
     reflect successful practice, including strategies for 
     recruiting, preparing, and retaining personnel;
       ``(B) by promoting the coordination and integration of--
       ``(i) personnel-development activities for teachers of 
     children with disabilities; and
       ``(ii) other personnel-development activities supported 
     under Federal law, including this chapter;
       ``(C) by supporting the development and dissemination of 
     information about teaching standards; and
       ``(D) by promoting the coordination and integration of 
     personnel-development activities through linkage with 
     systemic-change activities within States and nationally.
       ``(b) Purpose.--The purpose of this chapter is to provide 
     Federal funding for coordinated research, demonstration 
     projects, outreach, and personnel-preparation activities 
     that--
       ``(1) are described in sections 672 through 674;
       ``(2) are linked with, and promote, systemic change; and
       ``(3) improve early intervention, educational, and 
     transitional results for children with disabilities.

     ``SEC. 672. RESEARCH AND INNOVATION TO IMPROVE SERVICES AND 
                   RESULTS FOR CHILDREN WITH DISABILITIES.

       ``(a) In General.--The Secretary shall make competitive 
     grants to, or enter into contracts or cooperative agreements 
     with, eligible entities to produce, and advance the use of, 
     knowledge--
       ``(1) to improve--
       ``(A) services provided under this Act, including the 
     practices of professionals and others involved in providing 
     such services to children with disabilities; and
       ``(B) educational results for children with disabilities;
       ``(2) to address the special needs of preschool-aged 
     children and infants and toddlers with disabilities, 
     including infants and toddlers who would be at risk of having 
     substantial developmental delays if early intervention 
     services were not provided to them;
       ``(3) to address the specific problems of over-
     identification and under-identification of children with 
     disabilities;
       ``(4) to develop and implement effective strategies for 
     addressing inappropriate behavior of students with 
     disabilities in schools, including strategies to prevent 
     children with emotional and behavioral problems from 
     developing emotional disturbances that require the provision 
     of special education and related services;
       ``(5) to improve secondary and postsecondary education and 
     transitional services for children with disabilities; and
       ``(6) to address the range of special education, related 
     services, and early intervention needs of children with 
     disabilities who need significant levels of support to 
     maximize their participation and learning in school and in 
     the community.
       ``(b) New Knowledge Production; Authorized Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support activities, consistent with the 
     objectives described in subsection (a), that lead to the 
     production of new knowledge.
       ``(2) Authorized activities.--Activities that may be 
     carried out under this subsection include activities such as 
     the following:
       ``(A) Expanding understanding of the relationships between 
     learning characteristics of children with disabilities and 
     the diverse ethnic, cultural, linguistic, social, and 
     economic backgrounds of children with disabilities and their 
     families.
       ``(B) Developing or identifying innovative, effective, and 
     efficient curricula designs, instructional approaches, and 
     strategies, and developing or identifying positive academic 
     and social learning opportunities, that--
       ``(i) enable children with disabilities to make effective 
     transitions described in section 674(b)(3)(C) or transitions 
     between educational settings; and
       ``(ii) improve educational and transitional results for 
     children with disabilities at all levels of the educational 
     system in which the activities are carried out and, in 
     particular, that improve the progress of the children, as 
     measured by assessments within the general education 
     curriculum involved.
       ``(C) Advancing the design of assessment tools and 
     procedures that will accurately and efficiently determine the 
     special instructional, learning, and behavioral needs of 
     children with disabilities, especially within the context of 
     general education.
       ``(D) Studying and promoting improved alignment and 
     compatibility of general and special education reforms 
     concerned with curricular and instructional reform, 
     evaluation and accountability of such reforms, and 
     administrative procedures.
       ``(E) Advancing the design, development, and integration of 
     technology, assistive technology devices, media, and 
     materials, to improve early intervention, educational, and 
     transitional services and results for children with 
     disabilities.
       ``(F) Improving designs, processes, and results of 
     personnel preparation for personnel who provide services to 
     children with disabilities through the acquisition of 
     information on, and implementation of, research-based 
     practices.
       ``(G) Advancing knowledge about the coordination of 
     education with health and social services.
       ``(H) Producing information on the long-term impact of 
     early intervention and education on results for individuals 
     with disabilities through large-scale longitudinal studies.
       ``(c) Integration of Research and Practice; Authorized 
     Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support activities, consistent with the 
     objectives described in subsection (a), that integrate 
     research and practice, including activities that support 
     State systemic-change and local capacity-building and 
     improvement efforts.
       ``(2) Authorized activities.--Activities that may be 
     carried out under this subsection include activities such as 
     the following:
       ``(A) 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 and media.
       ``(B) Demonstrating and applying research-based findings to 
     facilitate systemic changes, related to the provision of 
     services to children with disabilities, in policy, procedure, 
     practice, and the training and use of personnel.
       ``(C) Promoting and demonstrating the coordination of early 
     intervention and educational services for children with 
     disabilities with services provided by health, 
     rehabilitation, and social service agencies.
       ``(D) Identifying and disseminating solutions that overcome 
     systemic barriers to the effective and efficient delivery of 
     early intervention, educational, and transitional services to 
     children with disabilities.
       ``(d) Improving the Use of Professional Knowledge; 
     Authorized Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support activities, consistent with the 
     objectives described in subsection (a), that improve the use 
     of professional knowledge, including activities that support 
     State systemic-change and

[[Page H2526]]

     local capacity-building and improvement efforts.
       ``(2) Authorized activities.--Activities that may be 
     carried out under this subsection include activities such as 
     the following:
       ``(A) Synthesizing useful research and other information 
     relating to the provision of services to children with 
     disabilities, including effective practices.
       ``(B) Analyzing professional knowledge bases to advance an 
     understanding of the relationships, and the effectiveness of 
     practices, relating to the provision of services to children 
     with disabilities.
       ``(C) Ensuring that research and related products are in 
     appropriate formats for distribution to teachers, parents, 
     and individuals with disabilities.
       ``(D) Enabling professionals, parents of children with 
     disabilities, and other persons, to learn about, and 
     implement, the findings of research, and successful practices 
     developed in model demonstration projects, relating to the 
     provision of services to children with disabilities.
       ``(E) Conducting outreach, and disseminating information 
     relating to successful approaches to overcoming systemic 
     barriers to the effective and efficient delivery of early 
     intervention, educational, and transitional services, to 
     personnel who provide services to children with disabilities.
       ``(e) Balance Among Activities and Age Ranges.--In carrying 
     out this section, the Secretary shall ensure that there is an 
     appropriate balance--
       ``(1) among knowledge production, integration of research 
     and practice, and use of professional knowledge; and
       ``(2) across all age ranges of children with disabilities.
       ``(f) Applications.--An eligible entity that wishes to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under this section shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for each of the fiscal years 1998 
     through 2002.

     ``SEC. 673. PERSONNEL PREPARATION TO IMPROVE SERVICES AND 
                   RESULTS FOR CHILDREN WITH DISABILITIES.

       ``(a) In General.--The Secretary shall, on a competitive 
     basis, make grants to, or enter into contracts or cooperative 
     agreements with, eligible entities--
       ``(1) to help address State-identified needs for qualified 
     personnel in special education, related services, early 
     intervention, and regular education, to work with children 
     with disabilities; and
       ``(2) to ensure that those personnel have the skills and 
     knowledge, derived from practices that have been determined, 
     through research and experience, to be successful, that are 
     needed to serve those children.
       ``(b) Low-Incidence Disabilities; Authorized Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support activities, consistent with the 
     objectives described in subsection (a), that benefit children 
     with low-incidence disabilities.
       ``(2) Authorized activities.--Activities that may be 
     carried out under this subsection include activities such as 
     the following:
       ``(A) Preparing persons who--
       ``(i) have prior training in educational and other related 
     service fields; and
       ``(ii) are studying to obtain degrees, certificates, or 
     licensure that will enable them to assist children with 
     disabilities to achieve the objectives set out in their 
     individualized education programs described in section 
     614(d), or to assist infants and toddlers with disabilities 
     to achieve the outcomes described in their individualized 
     family service plans described in section 636.
       ``(B) Providing personnel from various disciplines with 
     interdisciplinary training that will contribute to 
     improvement in early intervention, educational, and 
     transitional results for children with disabilities.
       ``(C) Preparing personnel in the innovative uses and 
     application of technology to enhance learning by children 
     with disabilities through early intervention, educational, 
     and transitional services.
       ``(D) Preparing personnel who provide services to visually 
     impaired or blind children to teach and use Braille in the 
     provision of services to such children.
       ``(E) Preparing personnel to be qualified educational 
     interpreters, to assist children with disabilities, 
     particularly deaf and hard-of-hearing children in school and 
     school-related activities and deaf and hard-of-hearing 
     infants and toddlers and preschool children in early 
     intervention and preschool programs.
       ``(F) Preparing personnel who provide services to children 
     with significant cognitive disabilities and children with 
     multiple disabilities.
       ``(3) Definition.--As used in this section, the term `low-
     incidence disability' means--
       ``(A) a visual or hearing impairment, or simultaneous 
     visual and hearing impairments;
       ``(B) a significant cognitive impairment; or
       ``(C) any impairment for which a small number of personnel 
     with highly specialized skills and knowledge are needed in 
     order for children with that impairment to receive early 
     intervention services or a free appropriate public education.
       ``(4) Selection of recipients.--In selecting recipients 
     under this subsection, the Secretary may give preference to 
     applications that propose to prepare personnel in more than 
     one low-incidence disability, such as deafness and blindness.
       ``(5) Preparation in use of braille.--The Secretary shall 
     ensure that all recipients of assistance under this 
     subsection who will use that assistance to prepare personnel 
     to provide services to visually impaired or blind children 
     that can appropriately be provided in Braille will prepare 
     those individuals to provide those services in Braille.
       ``(c) Leadership Preparation; Authorized Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support leadership preparation activities 
     that are consistent with the objectives described in 
     subsection (a).
       ``(2) Authorized activities.--Activities that may be 
     carried out under this subsection include activities such as 
     the following:
       ``(A) Preparing personnel at the advanced graduate, 
     doctoral, and postdoctoral levels of training to administer, 
     enhance, or provide services for children with disabilities.
       ``(B) Providing interdisciplinary training for various 
     types of leadership personnel, including teacher preparation 
     faculty, administrators, researchers, supervisors, 
     principals, and other persons whose work affects early 
     intervention, educational, and transitional services for 
     children with disabilities.
       ``(d) Projects of National Significance; Authorized 
     Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support activities, consistent with the 
     objectives described in subsection (a), that are of national 
     significance and have broad applicability.
       ``(2) Authorized activities.--Activities that may be 
     carried out under this subsection include activities such as 
     the following:
       ``(A) Developing and demonstrating effective and efficient 
     practices for preparing personnel to provide services to 
     children with disabilities, including practices that address 
     any needs identified in the State's improvement plan under 
     part C;
       ``(B) Demonstrating the application of significant 
     knowledge derived from research and other sources in the 
     development of programs to prepare personnel to provide 
     services to children with disabilities.
       ``(C) Demonstrating models for the preparation of, and 
     interdisciplinary training of, early intervention, special 
     education, and general education personnel, to enable the 
     personnel--
       ``(i) to acquire the collaboration skills necessary to work 
     within teams to assist children with disabilities; and
       ``(ii) to achieve results that meet challenging standards, 
     particularly within the general education curriculum.
       ``(D) Demonstrating models that reduce shortages of 
     teachers, and personnel from other relevant disciplines, who 
     serve children with disabilities, through reciprocity 
     arrangements between States that are related to licensure and 
     certification.
       ``(E) Developing, evaluating, and disseminating model 
     teaching standards for persons working with children with 
     disabilities.
       ``(F) Promoting the transferability, across State and local 
     jurisdictions, of licensure and certification of teachers and 
     administrators working with such children.
       ``(G) Developing and disseminating models that prepare 
     teachers with strategies, including behavioral interventions, 
     for addressing the conduct of children with disabilities that 
     impedes their learning and that of others in the classroom.
       ``(H) Institutes that provide professional development that 
     addresses the needs of children with disabilities to teachers 
     or teams of teachers, and where appropriate, to school board 
     members, administrators, principals, pupil-service personnel, 
     and other staff from individual schools.
       ``(I) Projects to improve the ability of general education 
     teachers, principals, and other administrators to meet the 
     needs of children with disabilities.
       ``(J) Developing, evaluating, and disseminating innovative 
     models for the recruitment, induction, retention, and 
     assessment of new, qualified teachers, especially from groups 
     that are underrepresented in the teaching profession, 
     including individuals with disabilities.
       ``(K) Supporting institutions of higher education with 
     minority enrollments of at least 25 percent for the purpose 
     of preparing personnel to work with children with 
     disabilities.
       ``(e) High-Incidence Disabilities; Authorized Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support activities, consistent with the 
     objectives described in subsection (a), to benefit children 
     with high-incidence disabilities, such as children with 
     specific learning disabilities, speech or language 
     impairment, or mental retardation.
       ``(2) Authorized activities.--Activities that may be 
     carried out under this subsection include the following:
       ``(A) Activities undertaken by institutions of higher 
     education, local educational agencies, and other local 
     entities--
       ``(i) to improve and reform their existing programs to 
     prepare teachers and related services personnel--

       ``(I) to meet the diverse needs of children with 
     disabilities for early intervention, educational, and 
     transitional services; and

[[Page H2527]]

       ``(II) to work collaboratively in regular classroom 
     settings; and

       ``(ii) to incorporate best practices and research-based 
     knowledge about preparing personnel so they will have the 
     knowledge and skills to improve educational results for 
     children with disabilities.
       ``(B) Activities incorporating innovative strategies to 
     recruit and prepare teachers and other personnel to meet the 
     needs of areas in which there are acute and persistent 
     shortages of personnel.
       ``(C) Developing career opportunities for paraprofessionals 
     to receive training as special education teachers, related 
     services personnel, and early intervention personnel, 
     including interdisciplinary training to enable them to 
     improve early intervention, educational, and transitional 
     results for children with disabilities.
       ``(f) Applications.--
       ``(1) In general.--Any eligible entity that wishes to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under this section shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require.
       ``(2) Identified state needs.--
       ``(A) Requirement to address identified needs.--Any 
     application under subsection (b), (c), or (e) shall include 
     information demonstrating to the satisfaction of the 
     Secretary that the activities described in the application 
     will address needs identified by the State or States the 
     applicant proposes to serve.
       ``(B) Cooperation with state educational agencies.--Any 
     applicant that is not a local educational agency or a State 
     educational agency shall include information demonstrating to 
     the satisfaction of the Secretary that the applicant and one 
     or more State educational agencies have engaged in a 
     cooperative effort to plan the project to which the 
     application pertains, and will cooperate in carrying out and 
     monitoring the project.
       ``(3) Acceptance by states of personnel preparation 
     requirements.--The Secretary may require applicants to 
     provide letters from one or more States stating that the 
     States--
       ``(A) intend to accept successful completion of the 
     proposed personnel preparation program as meeting State 
     personnel standards for serving children with disabilities or 
     serving infants and toddlers with disabilities; and
       ``(B) need personnel in the area or areas in which the 
     applicant proposes to provide preparation, as identified in 
     the States' comprehensive systems of personnel development 
     under parts B and C.
       ``(g) Selection of Recipients.--
       ``(1) Impact of project.--In selecting recipients under 
     this section, the Secretary may consider the impact of the 
     project proposed in the application in meeting the need for 
     personnel identified by the States.
       ``(2) Requirement on applicants to meet state and 
     professional standards.--The Secretary shall make grants 
     under this section only to eligible applicants that meet 
     State and professionally-recognized standards for the 
     preparation of special education and related services 
     personnel, if the purpose of the project is to assist 
     personnel in obtaining degrees.
       ``(3) Preferences.--In selecting recipients under this 
     section, the Secretary may--
       ``(A) give preference to institutions of higher education 
     that are educating regular education personnel to meet the 
     needs of children with disabilities in integrated settings 
     and educating special education personnel to work in 
     collaboration with regular educators in integrated settings; 
     and
       ``(B) give preference to institutions of higher education 
     that are successfully recruiting and preparing individuals 
     with disabilities and individuals from groups that are 
     underrepresented in the profession for which they are 
     preparing individuals.
       ``(h) Service Obligation.--
       ``(1) In general.--Each application for funds under 
     subsections (b) and (e), and to the extent appropriate 
     subsection (d), shall include an assurance that the applicant 
     will ensure that individuals who receive a scholarship under 
     the proposed project will subsequently provide special 
     education and related services to children with disabilities 
     for a period of 2 years for every year for which assistance 
     was received or repay all or part of the cost of that 
     assistance, in accordance with regulations issued by the 
     Secretary.
       ``(2) Leadership preparation.--Each application for funds 
     under subsection (c) shall include an assurance that the 
     applicant will ensure that individuals who receive a 
     scholarship under the proposed project will subsequently 
     perform work related to their preparation for a period of 2 
     years for every year for which assistance was received or 
     repay all or part of such costs, in accordance with 
     regulations issued by the Secretary.
       ``(i) Scholarships.--The Secretary may include funds for 
     scholarships, with necessary stipends and allowances, in 
     awards under subsections (b), (c), (d), and (e).
       ``(j) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for each of the fiscal years 1998 
     through 2002.

     ``SEC. 674. STUDIES AND EVALUATIONS.

       ``(a) Studies and Evaluations.--
       ``(1) In general.--The Secretary shall, directly or through 
     grants, contracts, or cooperative agreements, assess the 
     progress in the implementation of this Act, including the 
     effectiveness of State and local efforts to provide--
       ``(A) a free appropriate public education to children with 
     disabilities; and
       ``(B) early intervention services to infants and toddlers 
     with disabilities and infants and toddlers who would be at 
     risk of having substantial developmental delays if early 
     intervention services were not provided to them.
       ``(2) Authorized activities.--In carrying out this 
     subsection, the Secretary may support studies, evaluations, 
     and assessments, including studies that--
       ``(A) analyze measurable impact, outcomes, and results 
     achieved by State educational agencies and local educational 
     agencies through their activities to reform policies, 
     procedures, and practices designed to improve educational and 
     transitional services and results for children with 
     disabilities;
       ``(B) analyze State and local needs for professional 
     development, parent training, and other appropriate 
     activities that can reduce the need for disciplinary actions 
     involving children with disabilities;
       ``(C) assess educational and transitional services and 
     results for children with disabilities from minority 
     backgrounds, including--
       ``(i) data on--

       ``(I) the number of minority children who are referred for 
     special education evaluation;
       ``(II) the number of minority children who are receiving 
     special education and related services and their educational 
     or other service placement; and
       ``(III) the number of minority children who graduated from 
     secondary and postsecondary education programs; and

       ``(ii) the performance of children with disabilities from 
     minority backgrounds on State assessments and other 
     performance indicators established for all students;
       ``(D) measure educational and transitional services and 
     results of children with disabilities under this Act, 
     including longitudinal studies that--
       ``(i) examine educational and transitional services and 
     results for children with disabilities who are 3 through 17 
     years of age and are receiving special education and related 
     services under this Act, using a national, representative 
     sample of distinct age cohorts and disability categories; and
       ``(ii) examine educational results, postsecondary 
     placement, and employment status of individuals with 
     disabilities, 18 through 21 years of age, who are receiving 
     or have received special education and related services under 
     this Act; and
       ``(E) identify and report on the placement of children with 
     disabilities by disability category.
       ``(b) National Assessment.--
       ``(1) In general.--The Secretary shall carry out a national 
     assessment of activities carried out with Federal funds under 
     this Act in order--
       ``(A) to determine the effectiveness of this Act in 
     achieving its purposes;
       ``(B) to provide information to the President, the 
     Congress, the States, local educational agencies, and the 
     public on how to implement the Act more effectively; and
       ``(C) to provide the President and the Congress with 
     information that will be useful in developing legislation to 
     achieve the purposes of this Act more effectively.
       ``(2) Consultation.--The Secretary shall plan, review, and 
     conduct the national assessment under this subsection in 
     consultation with researchers, State practitioners, local 
     practitioners, parents of children with disabilities, 
     individuals with disabilities, and other appropriate 
     individuals.
       ``(3) Scope of assessment.--The national assessment shall 
     examine how well schools, local educational agencies, States, 
     other recipients of assistance under this Act, and the 
     Secretary are achieving the purposes of this Act, including--
       ``(A) improving the performance of children with 
     disabilities in general scholastic activities and assessments 
     as compared to nondisabled children;
       ``(B) providing for the participation of children with 
     disabilities in the general curriculum;
       ``(C) helping children with disabilities make successful 
     transitions from--
       ``(i) early intervention services to preschool education;
       ``(ii) preschool education to elementary school; and
       ``(iii) secondary school to adult life;
       ``(D) placing and serving children with disabilities, 
     including minority children, in the least restrictive 
     environment appropriate;
       ``(E) preventing children with disabilities, especially 
     children with emotional disturbances and specific learning 
     disabilities, from dropping out of school;
       ``(F) addressing behavioral problems of children with 
     disabilities as compared to nondisabled children;
       ``(G) coordinating services provided under this Act with 
     each other, with other educational and pupil services 
     (including preschool services), and with health and social 
     services funded from other sources;
       ``(H) providing for the participation of parents of 
     children with disabilities in the education of their 
     children; and
       ``(I) resolving disagreements between education personnel 
     and parents through activities such as mediation.
       ``(4) Interim and final reports.--The Secretary shall 
     submit to the President and the Congress--

[[Page H2528]]

       ``(A) an interim report that summarizes the preliminary 
     findings of the assessment not later than October 1, 1999; 
     and
       ``(B) a final report of the findings of the assessment not 
     later than October 1, 2001.
       ``(c) Annual Report.--The Secretary shall report annually 
     to the Congress on--
       ``(1) an analysis and summary of the data reported by the 
     States and the Secretary of the Interior under section 618;
       ``(2) the results of activities conducted under subsection 
     (a);
       ``(3) the findings and determinations resulting from 
     reviews of State implementation of this Act.
       ``(d) Technical Assistance to LEAS.--The Secretary shall 
     provide directly, or through grants, contracts, or 
     cooperative agreements, technical assistance to local 
     educational agencies to assist them in carrying out local 
     capacity-building and improvement projects under section 
     611(f)(4) and other LEA systemic improvement activities under 
     this Act.
       ``(e) Reservation for Studies and Technical Assistance.--
       ``(1) In general.--Except as provided in paragraph (2) and 
     notwithstanding any other provision of this Act, the 
     Secretary may reserve up to one-half of one percent of the 
     amount appropriated under parts B and C for each fiscal year 
     to carry out this section.
       ``(2) Maximum amount.--For the first fiscal year in which 
     the amount described in paragraph (1) is at least 
     $20,000,000, the maximum amount the Secretary may reserve 
     under paragraph (1) is $20,000,000. For each subsequent 
     fiscal year, the maximum amount the Secretary may reserve 
     under paragraph (1) is $20,000,000, increased by the 
     cumulative rate of inflation since the fiscal year described 
     in the previous sentence.
       ``(3) Use of maximum amount.--In any fiscal year described 
     in paragraph (2) for which the Secretary reserves the maximum 
     amount described in that paragraph, the Secretary shall use 
     at least half of the reserved amount for activities under 
     subsection (d).

      ``Chapter 2--Improving Early Intervention, Educational, and 
   Transitional Services and Results for Children With Disabilities 
Through Coordinated Technical Assistance, Support, and Dissemination of 
                              Information

     ``SEC. 681. FINDINGS AND PURPOSES.

       ``(a) In General.--The Congress finds as follows:
       ``(1) National technical assistance, support, and 
     dissemination activities are necessary to ensure that parts B 
     and C are fully implemented and achieve quality early 
     intervention, educational, and transitional results for 
     children with disabilities and their families.
       ``(2) Parents, teachers, administrators, and related 
     services personnel need technical assistance and information 
     in a timely, coordinated, and accessible manner in order to 
     improve early intervention, educational, and transitional 
     services and results at the State and local levels for 
     children with disabilities and their families.
       ``(3) Parent training and information activities have taken 
     on increased importance in efforts to assist parents of a 
     child with a disability in dealing with the multiple 
     pressures of rearing such a child and are of particular 
     importance in--
       ``(A) ensuring the involvement of such parents in planning 
     and decisionmaking with respect to early intervention, 
     educational, and transitional services;
       ``(B) achieving quality early intervention, educational, 
     and transitional results for children with disabilities;
       ``(C) providing such parents information on their rights 
     and protections under this Act to ensure improved early 
     intervention, educational, and transitional results for 
     children with disabilities;
       ``(D) assisting such parents in the development of skills 
     to participate effectively in the education and development 
     of their children and in the transitions described in section 
     674(b)(3)(C); and
       ``(E) supporting the roles of such parents as participants 
     within partnerships seeking to improve early intervention, 
     educational, and transitional services and results for 
     children with disabilities and their families.
       ``(4) Providers of parent training and information 
     activities need to ensure that such parents who have limited 
     access to services and supports, due to economic, cultural, 
     or linguistic barriers, are provided with access to 
     appropriate parent training and information activities.
       ``(5) Parents of children with disabilities need 
     information that helps the parents to understand the rights 
     and responsibilities of their children under part B.
       ``(6) The provision of coordinated technical assistance and 
     dissemination of information to State and local agencies, 
     institutions of higher education, and other providers of 
     services to children with disabilities is essential in--
       ``(A) supporting the process of achieving systemic change;
       ``(B) supporting actions in areas of priority specific to 
     the improvement of early intervention, educational, and 
     transitional results for children with disabilities;
       ``(C) conveying information and assistance that are--
       ``(i) based on current research (as of the date the 
     information and assistance are conveyed);
       ``(ii) accessible and meaningful for use in supporting 
     systemic-change activities of State and local partnerships; 
     and
       ``(iii) linked directly to improving early intervention, 
     educational, and transitional services and results for 
     children with disabilities and their families; and
       ``(D) organizing systems and information networks for such 
     information, based on modern technology related to--
       ``(i) storing and gaining access to information; and
       ``(ii) distributing information in a systematic manner to 
     parents, students, professionals, and policymakers.
       ``(7) Federal support for carrying out technology research, 
     technology development, and educational media services and 
     activities has resulted in major innovations that have 
     significantly improved early intervention, educational, and 
     transitional services and results for children with 
     disabilities and their families.
       ``(8) Such Federal support is needed--
       ``(A) to stimulate the development of software, interactive 
     learning tools, and devices to address early intervention, 
     educational, and transitional needs of children with 
     disabilities who have certain disabilities;
       ``(B) to make information available on technology research, 
     technology development, and educational media services and 
     activities to individuals involved in the provision of early 
     intervention, educational, and transitional services to 
     children with disabilities;
       ``(C) to promote the integration of technology into 
     curricula to improve early intervention, educational, and 
     transitional results for children with disabilities;
       ``(D) to provide incentives for the development of 
     technology and media devices and tools that are not readily 
     found or available because of the small size of potential 
     markets;
       ``(E) to make resources available to pay for such devices 
     and tools and educational media services and activities;
       ``(F) to promote the training of personnel--
       ``(i) to provide such devices, tools, services, and 
     activities in a competent manner; and
       ``(ii) to assist children with disabilities and their 
     families in using such devices, tools, services, and 
     activities; and
       ``(G) to coordinate the provision of such devices, tools, 
     services, and activities--
       ``(i) among State human services programs; and
       ``(ii) between such programs and private agencies.
       ``(b) Purposes.--The purposes of this chapter are to ensure 
     that--
       ``(1) children with disabilities, and their parents, 
     receive training and information on their rights and 
     protections under this Act, in order to develop the skills 
     necessary to effectively participate in planning and 
     decisionmaking relating to early intervention, educational, 
     and transitional services and in systemic-change activities;
       ``(2) parents, teachers, administrators, early intervention 
     personnel, related services personnel, and transition 
     personnel receive coordinated and accessible technical 
     assistance and information to assist such persons, through 
     systemic-change activities and other efforts, to improve 
     early intervention, educational, and transitional services 
     and results for children with disabilities and their 
     families;
       ``(3) appropriate technology and media are researched, 
     developed, demonstrated, and made available in timely and 
     accessible formats to parents, teachers, and all types of 
     personnel providing services to children with disabilities to 
     support their roles as partners in the improvement and 
     implementation of early intervention, educational, and 
     transitional services and results for children with 
     disabilities and their families;
       ``(4) on reaching the age of majority under State law, 
     children with disabilities understand their rights and 
     responsibilities under part B, if the State provides for the 
     transfer of parental rights under section 615(m); and
       ``(5) the general welfare of deaf and hard-of-hearing 
     individuals is promoted by--
       ``(A) bringing to such individuals understanding and 
     appreciation of the films and television programs that play 
     an important part in the general and cultural advancement of 
     hearing individuals;
       ``(B) providing, through those films and television 
     programs, enriched educational and cultural experiences 
     through which deaf and hard-of-hearing individuals can better 
     understand the realities of their environment; and
       ``(C) providing wholesome and rewarding experiences that 
     deaf and hard-of-hearing individuals may share.

     ``SEC. 682. PARENT TRAINING AND INFORMATION CENTERS.

       ``(a) Program Authorized.--The Secretary may make grants 
     to, and enter into contracts and cooperative agreements with, 
     parent organizations to support parent training and 
     information centers to carry out activities under this 
     section.
       ``(b) Required Activities.--Each parent training and 
     information center that receives assistance under this 
     section shall--
       ``(1) provide training and information that meets the 
     training and information needs of parents of children with 
     disabilities living in the area served by the center, 
     particularly underserved parents and parents of children who 
     may be inappropriately identified;
       ``(2) assist parents to understand the availability of, and 
     how to effectively use, procedural safeguards under this Act, 
     including encouraging the use, and explaining the benefits, 
     of alternative methods of dispute resolution, such as the 
     mediation process described in section 615(e);

[[Page H2529]]

       ``(3) serve the parents of infants, toddlers, and children 
     with the full range of disabilities;
       ``(4) assist parents to--
       ``(A) better understand the nature of their children's 
     disabilities and their educational and developmental needs;
       ``(B) communicate effectively with personnel responsible 
     for providing special education, early intervention, and 
     related services;
       ``(C) participate in decisionmaking processes and the 
     development of individualized education programs under part B 
     and individualized family service plans under part C;
       ``(D) obtain appropriate information about the range of 
     options, programs, services, and resources available to 
     assist children with disabilities and their families;
       ``(E) understand the provisions of this Act for the 
     education of, and the provision of early intervention 
     services to, children with disabilities; and
       ``(F) participate in school reform activities;
       ``(5) in States where the State elects to contract with the 
     parent training and information center, contract with State 
     educational agencies to provide, consistent with 
     subparagraphs (B) and (D) of section 615(e)(2), individuals 
     who meet with parents to explain the mediation process to 
     them;
       ``(6) network with appropriate clearinghouses, including 
     organizations conducting national dissemination activities 
     under section 685(d), and with other national, State, and 
     local organizations and agencies, such as protection and 
     advocacy agencies, that serve parents and families of 
     children with the full range of disabilities; and
       ``(7) 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, 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(m) on reaching 
     the age of majority; and
       ``(3) assist parents of children with disabilities to be 
     informed participants in the development and implementation 
     of the State's State improvement plan under subpart 1.
       ``(d) Application Requirements.--Each application for 
     assistance under this section shall identify with specificity 
     the special efforts that the applicant will undertake--
       ``(1) to ensure that the needs for training and information 
     of underserved parents of children with disabilities in the 
     area to be served are effectively met; and
       ``(2) to work with community-based organizations.
       ``(e) Distribution of Funds.--
       ``(1) In general.--The Secretary shall make at least 1 
     award to a parent organization in each State, unless the 
     Secretary does not receive an application from such an 
     organization in each State of sufficient quality to warrant 
     approval.
       ``(2) Selection requirement.--The Secretary shall select 
     among applications submitted by parent organizations in a 
     State in a manner that ensures the most effective assistance 
     to parents, including parents in urban and rural areas, in 
     the State.
       ``(f) Quarterly Review.--
       ``(1) Requirements.--
       ``(A) Meetings.--The board of directors or special 
     governing committee of each organization that receives an 
     award under this section shall meet at least once in each 
     calendar quarter to review the activities for which the award 
     was made.
       ``(B) Advising board.--Each special governing committee 
     shall directly advise the organization's governing board of 
     its views and recommendations.
       ``(2) Continuation award.--When an organization requests a 
     continuation award under this section, the board of directors 
     or special governing committee shall submit to the Secretary 
     a written review of the parent training and information 
     program conducted by the organization during the preceding 
     fiscal year.
       ``(g) Definition of Parent Organization.--As used in this 
     section, the term `parent organization' means a private 
     nonprofit organization (other than an institution of higher 
     education) that--
       ``(1) has a board of directors--
       ``(A) the majority of whom are parents of children with 
     disabilities;
       ``(B) that includes--
       ``(i) individuals working in the fields of special 
     education, related services, and early intervention; and
       ``(ii) individuals with disabilities; and
       ``(C) the parent and professional members of which are 
     broadly representative of the population to be served; or
       ``(2) has--
       ``(A) a membership that represents the interests of 
     individuals with disabilities and has established a special 
     governing committee that meets the requirements of paragraph 
     (1); and
       ``(B) a memorandum of understanding between the special 
     governing committee and the board of directors of the 
     organization that clearly outlines the relationship between 
     the board and the committee and the decisionmaking 
     responsibilities and authority of each.

     ``SEC. 683. COMMUNITY PARENT RESOURCE CENTERS.

       ``(a) In General.--The Secretary may make grants to, and 
     enter into contracts and cooperative agreements with, local 
     parent organizations to support parent training and 
     information centers that will help ensure that underserved 
     parents of children with disabilities, including low-income 
     parents, parents of children with limited English 
     proficiency, and parents with disabilities, have the training 
     and information they need to enable them to participate 
     effectively in helping their children with disabilities--
       ``(1) to meet developmental goals and, to the maximum 
     extent possible, those challenging standards that have been 
     established for all children; and
       ``(2) to be prepared to lead productive independent adult 
     lives, to the maximum extent possible.
       ``(b) Required Activities.--Each parent training and 
     information center assisted under this section shall--
       ``(1) provide training and information that meets the 
     training and information needs of parents of children with 
     disabilities proposed to be served by the grant, contract, or 
     cooperative agreement;
       ``(2) carry out the activities required of parent training 
     and information centers under paragraphs (2) through (7) of 
     section 682(b);
       ``(3) establish cooperative partnerships with the parent 
     training and information centers funded under section 682; 
     and
       ``(4) be designed to meet the specific needs of families 
     who experience significant isolation from available sources 
     of information and support.
       ``(c) Definition.--As used is this section, the term `local 
     parent organization' means a parent organization, as defined 
     in section 682(g), that either--
       ``(1) has a board of directors the majority of whom are 
     from the community to be served; or
       ``(2) has--
       ``(A) as a part of its mission, serving the interests of 
     individuals with disabilities from such community; and
       ``(B) a special governing committee to administer the 
     grant, contract, or cooperative agreement, a majority of the 
     members of which are individuals from such community.

     ``SEC. 684. TECHNICAL ASSISTANCE FOR PARENT TRAINING AND 
                   INFORMATION CENTERS.

       ``(a) In General.--The Secretary may, directly or through 
     awards to eligible entities, provide technical assistance for 
     developing, assisting, and coordinating parent training and 
     information programs carried out by parent training and 
     information centers receiving assistance under sections 682 
     and 683.
       ``(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. 685. COORDINATED TECHNICAL ASSISTANCE AND 
                   DISSEMINATION.

       ``(a) In General.--The Secretary shall, by competitively 
     making grants or entering into contracts and cooperative 
     agreements with eligible entities, provide technical 
     assistance and information, through such mechanisms as 
     institutes, Regional Resource Centers, clearinghouses, and 
     programs that support States and local entities in building 
     capacity, to improve early intervention, educational, and 
     transitional services and results for children with 
     disabilities and their families, and address systemic-change 
     goals and priorities.
       ``(b) Systemic Technical Assistance; Authorized 
     Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall carry out or support technical assistance 
     activities, consistent with the objectives described in 
     subsection (a), relating to systemic change.
       ``(2) Authorized activities.--Activities that may be 
     carried out under this subsection include activities such as 
     the following:
       ``(A) Assisting States, local educational agencies, and 
     other participants in partnerships established under subpart 
     1 with the process of planning systemic changes that will 
     promote improved early intervention, educational, and 
     transitional results for children with disabilities.
       ``(B) Promoting change through a multistate or regional 
     framework that benefits States, local educational agencies, 
     and other participants in partnerships that are in the 
     process of achieving systemic-change outcomes.
       ``(C) Increasing the depth and utility of information in 
     ongoing and emerging areas of

[[Page H2530]]

     priority need identified by States, local educational 
     agencies, and other participants in partnerships that are in 
     the process of achieving systemic-change outcomes.
       ``(D) Promoting communication and information exchange 
     among States, local educational agencies, and other 
     participants in partnerships, based on the needs and concerns 
     identified by the participants in the partnerships, rather 
     than on externally imposed criteria or topics, regarding--
       ``(i) the practices, procedures, and policies of the 
     States, local educational agencies, and other participants in 
     partnerships; and
       ``(ii) accountability of the States, local educational 
     agencies, and other participants in partnerships for improved 
     early intervention, educational, and transitional results for 
     children with disabilities.
       ``(c) Specialized Technical Assistance; Authorized 
     Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall carry out or support activities, consistent 
     with the objectives described in subsection (a), relating to 
     areas of priority or specific populations.
       ``(2) Authorized activities.--Examples of activities that 
     may be carried out under this subsection include activities 
     that--
       ``(A) focus on specific areas of high-priority need that--
       ``(i) are identified by States, local educational agencies, 
     and other participants in partnerships;
       ``(ii) require the development of new knowledge, or the 
     analysis and synthesis of substantial bodies of information 
     not readily available to the States, agencies, and other 
     participants in partnerships; and
       ``(iii) will contribute significantly to the improvement of 
     early intervention, educational, and transitional services 
     and results for children with disabilities and their 
     families;
       ``(B) focus on needs and issues that are specific to a 
     population of children with disabilities, such as the 
     provision of single-State and multi-State technical 
     assistance and in-service training--
       ``(i) to schools and agencies serving deaf-blind children 
     and their families; and
       ``(ii) to programs and agencies serving other groups of 
     children with low-incidence disabilities and their families; 
     or
       ``(C) address the postsecondary education needs of 
     individuals who are deaf or hard of hearing.
       ``(d) National Information Dissemination; Authorized 
     Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall carry out or support information 
     dissemination activities that are consistent with the 
     objectives described in subsection (a), including activities 
     that address national needs for the preparation and 
     dissemination of information relating to eliminating barriers 
     to systemic-change and improving early intervention, 
     educational, and transitional results for children with 
     disabilities.
       ``(2) Authorized Activities.--Examples of activities that 
     may be carried out under this subsection include activities 
     relating to--
       ``(A) infants and toddlers with disabilities and their 
     families, and children with disabilities and their families;
       ``(B) services for populations of children with low-
     incidence disabilities, including deaf-blind children, and 
     targeted age groupings;
       ``(C) the provision of postsecondary services to 
     individuals with disabilities;
       ``(D) the need for and use of personnel to provide services 
     to children with disabilities, and personnel recruitment, 
     retention, and preparation;
       ``(E) issues that are of critical interest to State 
     educational agencies and local educational agencies, other 
     agency personnel, parents of children with disabilities, and 
     individuals with disabilities;
       ``(F) educational reform and systemic change within States; 
     and
       ``(G) promoting schools that are safe and conducive to 
     learning.
       ``(3) Linking states to information sources.--In carrying 
     out this subsection, the Secretary may support projects that 
     link States to technical assistance resources, including 
     special education and general education resources, and may 
     make research and related products available through 
     libraries, electronic networks, parent training projects, and 
     other information sources.
       ``(e) Applications.--An eligible entity that wishes to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under this section shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require.

     ``SEC. 686. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out 
     sections 681 through 685 such sums as may be necessary for 
     each of the fiscal years 1998 through 2002.

     ``SEC. 687. TECHNOLOGY DEVELOPMENT, DEMONSTRATION, AND 
                   UTILIZATION, AND MEDIA SERVICES.

       ``(a) In General.--The Secretary shall competitively make 
     grants to, and enter into contracts and cooperative 
     agreements with, eligible entities to support activities 
     described in subsections (b) and (c).
       ``(b) Technology Development, Demonstration, and 
     Utilization; Authorized Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support activities to promote the 
     development, demonstration, and utilization of technology.
       ``(2) Authorized activities.--Activities that may be 
     carried out under this subsection include activities such as 
     the following:
       ``(A) Conducting research and development activities on the 
     use of innovative and emerging technologies for children with 
     disabilities.
       ``(B) Promoting the demonstration and use of innovative and 
     emerging technologies for children with disabilities by 
     improving and expanding the transfer of technology from 
     research and development to practice.
       ``(C) Providing technical assistance to recipients of other 
     assistance under this section, concerning the development of 
     accessible, effective, and usable products.
       ``(D) Communicating information on available technology and 
     the uses of such technology to assist children with 
     disabilities.
       ``(E) Supporting the implementation of research programs on 
     captioning or video description.
       ``(F) Supporting research, development, and dissemination 
     of technology with universal-design features, so that the 
     technology is accessible to individuals with disabilities 
     without further modification or adaptation.
       ``(G) Demonstrating the use of publicly-funded 
     telecommunications systems to provide parents and teachers 
     with information and training concerning early diagnosis of, 
     intervention for, and effective teaching strategies for, 
     young children with reading disabilities.
       ``(c) Educational Media Services; Authorized Activities.--
     In carrying out this section, the Secretary shall support--
       ``(1) educational media activities that are designed to be 
     of educational value to children with disabilities;
       ``(2) providing video description, open captioning, or 
     closed captioning of television programs, videos, or 
     educational materials through September 30, 2001; and after 
     fiscal year 2001, providing video description, open 
     captioning, or closed captioning of educational, news, and 
     informational television, videos, or materials;
       ``(3) distributing captioned and described videos or 
     educational materials through such mechanisms as a loan 
     service;
       ``(4) providing free educational materials, including 
     textbooks, in accessible media for visually impaired and 
     print-disabled students in elementary, secondary, 
     postsecondary, and graduate schools;
       ``(5) providing cultural experiences through appropriate 
     nonprofit organizations, such as the National Theater of the 
     Deaf, that--
       ``(A) enrich the lives of deaf and hard-of-hearing children 
     and adults;
       ``(B) increase public awareness and understanding of 
     deafness and of the artistic and intellectual achievements of 
     deaf and hard-of-hearing persons; or
       ``(C) promote the integration of hearing, deaf, and hard-
     of-hearing persons through shared cultural, educational, and 
     social experiences; and
       ``(6) compiling and analyzing appropriate data relating to 
     the activities described in paragraphs (1) through (5).
       ``(d) Applications.--Any eligible entity that wishes to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under this section shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for each of the fiscal years 1998 
     through 2002.''.
                   TITLE II--MISCELLANEOUS PROVISIONS

      SEC. 201. EFFECTIVE DATES.

       (a) Parts A and B.--
       (1) In general.--Except as provided in paragraph (2), parts 
     A and B of the Individuals with Disabilities Education Act, 
     as amended by title I, shall take effect upon the enactment 
     of this Act.
       (2) Exceptions.--
       (A) In general.--Sections 612(a)(4), 612(a)(14), 
     612(a)(16), 614(d) (except for paragraph (6)), and 618 of the 
     Individuals with Disabilities Education Act, as amended by 
     title I, shall take effect on July 1, 1998.
       (B) Section 617.--Section 617 of the Individuals with 
     Disabilities Education Act, as amended by title I, shall take 
     effect on October 1, 1997.
       (C) Individualized education programs and comprehensive 
     system of personnel development.--Section 618 of the 
     Individuals with Disabilities Education Act, as in effect on 
     the day before the date of the enactment of this Act, and the 
     provisions of parts A and B of the Individuals with 
     Disabilities Education Act relating to individualized 
     education programs and the State's comprehensive system of 
     personnel development, as so in effect, shall remain in 
     effect until July 1, 1998.
       (D) Sections 611 and 619.--Sections 611 and 619, as amended 
     by title I, shall take effect beginning with funds 
     appropriated for fiscal year 1998.
       (b) Part C.--Part C of the Individuals with Disabilities 
     Education Act, as amended by title I, shall take effect on 
     July 1, 1998.
       (c) Part D.--
       (1) In general.--Except as provided in paragraph (2), part 
     D of the Individuals with Disabilities Education Act, as 
     amended by title I, shall take effect on October 1, 1997.
       (2) Exception.--Paragraphs (1) and (2) of section 661(g) of 
     the Individuals with Disabilities Education Act, as amended 
     by title I, shall take effect on January 1, 1998.

[[Page H2531]]

      SEC. 202. TRANSITION.

       Notwithstanding any other provision of law, beginning on 
     October 1, 1997, the Secretary of Education may use funds 
     appropriated under part D of the Individuals with 
     Disabilities Education Act to make continuation awards for 
     projects that were funded under section 618 and parts C 
     through G of such Act (as in effect on September 30, 1997).

      SEC. 203. REPEALERS.

       (a) Part I.--Effective October 1, 1998, part I of the 
     Individuals with Disabilities Education Act is hereby 
     repealed.
       (b) Part H.--Effective July 1, 1998, part H of such Act is 
     hereby repealed.
       (c) Parts C, E, F, and G.--Effective October 1, 1997, parts 
     C, 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 Missouri [Mr. Clay] 
each will control 20 minutes.
  The Chair recognizes the gentleman from Pennsylvania [Mr. Goodling].
  Mr. GOODLING. Mr. Speaker, I yield myself 4 minutes.
  Mr. Speaker, today the House of Representatives considers H.R. 5, the 
Individuals with Disabilities Education Act Amendments of 1997. This 
bill is the culmination of over 2 years of work by the Committee on 
Education and the Workforce.
  Republicans believe that there is nothing more important to the 
future of our country than providing the opportunity for a high-quality 
education for all Americans. We believe this can be achieved by working 
together to build on what works, improving basic academics, increasing 
parental involvement, and moving dollars to the classroom.
  In my view, H.R. 5 represents a significant step in that direction. 
H.R. 5 focuses the act on children's education instead of process and 
bureaucracy. This legislation has taken a unique path toward enactment, 
and I am proud to have led it to where it stands today.
  Earlier this year, Chairman Jeffords, the gentleman from California, 
Mr. Riggs, and I decided to establish a bipartisan, bicameral 
negotiating process to develop a consensus bill acceptable to all 
Members of Congress. In February we proposed this idea to our Democrat 
counterparts and to the administration.
  As part of this process, we proposed to invite members of the 
interested public to participate in the development of the legislation, 
including educators, parents, and disability advocates. Our House and 
Senate Democrat colleagues accepted our offer, as did the Department of 
Education, and for the last 3 months we have worked to create that 
consensus legislation.
  This process was truly historic. I never saw this happen in the 20 
years that I have been here. The discussions were an open public dialog 
on the content of legislation, right down to every line of text that we 
will pass today.
  During weekly sessions since mid-March, educators, parents, and other 
professionals from around the country have flown to Washington, DC, at 
their own expense to suggest changes to IDEA. In off-the-record 
meetings open to any member of the general public, people expressed 
honest views with candor and thought, and their voices have strongly 
influenced the work that makes up the bill.
  The change in the IDEA amendments will have positive impacts in the 
lives of millions of students with disabilities. There will be an 
emphasis on what works, instead of filling out paperwork. These changes 
will mean more time for teachers to dedicate to their students, and 
fewer resources wasted on process. The bill will assure parents' 
ability to participate in key decisionmaking meetings about their 
children's education. It ensures that States will offer mediation 
service to resolve disputes, and will reform the litigation system that 
too often impedes children's education instead of giving them access to 
education.
  Local principals and school administrators will be given more 
flexibility. The bill includes a provision that will give local schools 
tremendous relief from IDEA funding mandates, which I might indicate 
came from the Federal Government, by giving schools the flexibility to 
actually reduce their own IDEA funding levels. This is an action 
unprecedented in Federal law.
  The bill also ensures that local schools receive more Federal funds 
by capping State administrative costs at current dollar levels, to 
ensure that 90 to 98 percent of appropriations increases will go to 
local schools. The bill will make schools safer for all students, 
disabled and nondisabled, and for their teachers.
  The bill codifies existing authority to suspend a student for 10 days 
without educational services, and expands upon current procedures for 
students with firearms. We will enable schools to quickly remove 
students who bring weapons or drugs to school, regardless of their 
disability status.
  The legislation will also ensure that disability status will not 
affect the school's general disciplinary procedures where appropriate. 
Where a child's actions are not a manifestation of his or her 
disability, schools will need to take the same action with disabled 
children as they would with any child.
  Finally, I would like to talk about the Federal funding formula. 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.
  Changes to IDEA in this bill have garnered broad support and praise 
from educators and disability groups. Before closing, I would like to 
particularly thank several of my colleagues who have worked on this 
historic markup. The subcommittee chairman, the gentleman from 
California [Mr. Riggs], has worked many hours on the legislation, and I 
thank him for his work. In addition, the gentleman from Delaware [Mr. 
Castle] and the gentleman from South Carolina [Mr. Graham] have 
participated as House Republicans.
  I would like to thank my Democrat colleagues, the gentleman from 
Missouri, Mr. Clay, the gentleman from California, Mr. Martinez, the 
gentleman from California, Mr. Miller, and the gentleman from Virginia, 
Mr. Scott, who worked with us in this process, and our Senate 
colleagues, Majority Leader Lott and Senators Jeffords, Coats, Kennedy, 
and Harkin. The Department of Education, and its staff, particularly 
Assistant Secretary Judy Heumann, are to be thanked as well.
  Our congressional staffs have spent hours and hours and hours, and I 
want to thank all on both sides of the aisle. I particularly want to 
recognize Todd Jones, who, as I said the other day, can probably recite 
any line in this legislation. All you have to do is ask him, and he 
will tell you the page and probably the line. I thank all for this 
historic day.
  Mr. Speaker, I include for the Record the following letters regarding 
the legislation.
  The letters referred to are as follows:

                 America Association of School Administrators,

                                       Arlington, VA, May 5, 1997.
     Hon. William F. Goodling,
     House Education and the Workforce Committee
     2181 Rayburn House Office Building,
     Washington, DC
       Dear Chairman Goodling: The American Association of School 
     Administrators (AASA) would like to thank you for the 
     wonderful manner in which you guided the reauthorization of 
     the Individuals with Disabilities Education Act through 
     difficult negotiations. AASA is in full support of the IDEA 
     as reported by the House and Senate working group. Your plan 
     of creating one set of negotiations worked better than any of 
     us could ever have predicted.
       Local superintendents have been particularly alarmed by the 
     fact that local school districts were bearing the entire 
     brunt of paying for IDEA as costs escalated over the last ten 
     years. Paying for IDEA required not one single legislative 
     fix, but a combination of changes that included: large 
     increases in federal funds; driving a greater share of those 
     funds to schools; creating fairer expectations for state and 
     local sharing of IDEA costs; forced cost sharing of related 
     service with other local and state agencies; and cutting 
     costs of IDEA without hurting children. We are pleased that 
     you addressed all of our concerns regarding the costs of 
     IDEA.
       As with most legislation, there is considerable give and 
     take and no one can be pleased with every single provision of 
     the bill. However, because H.R. 5 puts children first we can 
     support it. Children with disabilities are the clear victors 
     in this bill because the program is simpler and better 
     connected to schools in general, especially where children 
     are directly affected, such as evaluations, instruction, and 
     related services. All children are winners because students 
     who bring weapons or drugs to school are easier to remove to 
     alternative settings, as would happen to any student in a 
     similar situation. Make no mistake, IDEA is still a 
     complicated program to administer. Involving parents and 
     other agencies (such as health

[[Page H2532]]

     care) in planning and service delivery may be a challenge, 
     but the bill shifts these complications away from educators 
     who are already over burdened with paperwork.
       We thank you for your leadership in crafting a bill that 
     addresses the cost concerns of superintendents, simplifies 
     the process for children, and eliminates some paperwork for 
     educators. This is a remarkable accomplishment.
           Sincerely,
                                                     Bruce Hunter,
     Senior Associate Executive Director.
                                                                    ____



         National Association of Elementary School Principals,

                                      Alexandria, VA, May 6, 1997.
     Dear Representative: 
       The National Association of Elementary School Principals 
     (NAESP), representing 27,000 elementary and middle school 
     principals, urges your support of the Individuals With 
     Disabilities Act (IDEA) reauthorization bill when it comes 
     before the Education and the Workforce Committee for a mark-
     up on Wednesday, May 7. While the bill does not make all the 
     changes NAESP has sought, it represents a reasonable 
     compromise that will help to update the IDEA.
       We appreciate the expansion of the discipline provisions to 
     enhance the power of principals to take quick action to make 
     schools safe for all students. We are also pleased that the 
     draft reauthorization bill makes some reasonable changes in 
     the attorneys' fees provision and encourages the use of 
     mediation to solve disputes between families and school 
     personnel. The provision subjecting U.S. Department of 
     Education policy letters to public review and comment is a 
     welcome one. Finally, we are very pleased that the bill has 
     no provision allowing for the cessation of educational 
     services.
       NAESP congratulates the leaders in both chambers, the 
     committee and subcommittee chairmen and ranking members, and 
     IDEA staff working group on the prodigious work on an issue 
     that elicits strong emotions on all sides. We hope the 
     legislation will proceed smoothly through action in committee 
     and on the House and Senate floors and be readily enacted 
     into law.
           Sincerely,
                                               Sally N. McConnell,
                                 Director of Government Relations.
       This letter is being sent to members of the Committee on 
     Education and the Workforce.
                                                                    ____



                            Council of the Great City Schools,

                                      Washington, DC, May 5, 1997.
     Hon. William Goodling,
     Chairman, Committee on Education and the Workforce, House of 
         Representatives, Washington, DC.
       Dear Mr. Chairman: The Council of the Great City Schools, a 
     coalition of the nation's largest central city school 
     districts, writes to support H.R. 5, the IDEA Reauthorization 
     bill, based on the drafts and explanations which we have 
     received to date. The Council's fifty urban schools districts 
     represent a major segment of the national public education 
     system, enrolling six and a half million children, over 35% 
     of the nation's poor children, 40% of the nation's minority 
     children, and nearly \3/4\ million disabled children in 8000 
     schools with 300,000 teachers.
       From the outset of your IDEA legislative effort back in 
     1995, the Council called for a balance bill which would make 
     significant progress in delivering effective services to 
     disabled school children and relieve some of the costs, 
     requirements, and financial burdens placed upon local school 
     districts. Although some issues of importance to the Council 
     might have been addressed more fully, the Council's overall 
     conclusion regarding the bill is distinctly positive.
       We believe that H.R. 5, the IDEA Reauthorization, makes 
     significant progress over current law, while retaining the 
     critical protections and directions of this landmark federal 
     statute. H.R. 5 deserves expeditious passage by the 105th 
     Congress without substantial change.
           Sincerely,
     Michael Casserly, Executive Director.
                                                                    ____



                   Board of Education of the City of New York,

                                        Brooklyn, NY, May 6, 1997.
     Hon. William Goodling,
     Chairman, Committee on Education and the Workforce, House of 
         Representatives, Washington, DC.
       Dear Mr. Chairman: I am writing in support of H.R. 5, the 
     IDEA Reauthorization bill, based on the drafts and 
     explanations that we have received to date.
       The provision of special education services and programs to 
     all eligible students has become one of the biggest 
     challenges facing school districts today, especially large 
     urban school districts. Although significant progress has 
     been made in providing a free and appropriate education to 
     all disabled students, the New York City school district, as 
     well as school systems across the nation, continues to 
     struggle with the following issues:
       A virtual absence of support services in general education 
     which precludes the provision of prevention/intervention 
     services.
       An excess of students being inappropriately referred to 
     special education services when service should be provided in 
     general education.
       A focus on compliance-driven model with little attention to 
     student achievement.
       A systematic provision of special education services in 
     separate classes.
       The need to reduce inappropriate and disproportionate 
     referrals and placement of minority and LEP students in 
     special education.
       Based on our analysis of the working drafts, I believe that 
     this bill goes a long way toward addressing many of these 
     issues. Although in any sizable draft legislation, there will 
     be areas of concern and disagreement, the bill overall 
     appears to be balanced and fair. Some costly requirements 
     have been removed or modified from current law, and some of 
     the financial burdens now shouldered by local school 
     districts appear to have been relieved. These revisions 
     should result in improvement of services for disabled 
     children and a more manageable special education program in 
     general.
       For the foregoing reasons, I urge you to move expeditiously 
     H.R. 5 through the legislative process without changing the 
     substantive provisions which have produced this balanced 
     bill.
           Sincerely yours,
     Rudolph F. Crew, Chancellor.
                                                                    ____



                          Los Angeles Unified School District,

                                     Los Angeles, CA, May 6, 1997.
     Hon. William Goodling,
     Chair, Committee on Education and the Workforce, House of 
         Representatives, Washington, DC.
       Dear Congressman Goodling: The Los Angeles Unified School 
     District supports H.R. 5, the Individuals with Disabilities 
     Education Act (IDEA) reauthorization bill, based on the 
     drafts and explanations that we have received to date.
       Together with representatives of a number of other large 
     school districts across the country, our staff went to 
     Washington for two days last week to review the product of 
     the IDEA working group. Although in any sizable legislative 
     draft, there may be issues that produce concern, the bill 
     overall appears balanced, fair, workable, and not overly 
     prescriptive--an improvement of the current law. Some costly 
     requirements have been removed or modified, such as 
     interagency state maintenance. These revisions should result 
     in improved services for disabled children and a more 
     manageable special education program in general.
       We respectfully request that the proposed IDEA 
     reauthorization be moved expeditiously through the 
     legislative process without changing the substantive 
     provisions that have produced a balanced bill.
           Sincerely,
                                                  Ronald Prescott,
     Associate Superintendent.
                                                                    ____



                                       Chicago Public Schools,

                                         Chicago, IL, May 5, 1997.
     Hon. William Goodling,
     Chairman, Committee on Education and the Workforce, House of 
         Representatives, Washington, DC.
       Dear Mr. Chairman: As Chief Executive Officer of the 
     Chicago Public Schools, I am writing to voice my strong 
     support of H.R. 5, the IDEA Reauthorization bill. Based on 
     the drafts and explanations which I have received to date, 
     the bill contains significant improvements over the current 
     Federal special education law.
       The work product of the IDEA Working Group provides a 
     number of changes to the current law that would enable our 
     staff to spend a greater period of time on direct services to 
     children. Although suggestions could be given for any draft 
     of legislation, the bill appears to be balanced and fair. 
     Several costly requirements have been removed or modified 
     from current law, such as relief in the area of attorney fees 
     and reimbursement of unilateral placements by parents. These 
     revisions should result in improvement of services for 
     students with disabilities and a more manageable special 
     education services in general.
       I urge you to expeditiously move this IDEA Reauthorization 
     through the legislative process without changing the 
     substantive provisions which have produced this balanced 
     bill.
           Sincerely,
                                                      Paul Vallas,
     Chief Executive Officer.
                                                                    ____



                          The School District of Philadelphia,

                                    Philadelphia, PA, May 5, 1997.
     Hon. William Goodling,
     Chairman, Committee on Education and the Workforce, House of 
         Representatives, Washington, DC.
       Dear Mr. Chairman: Our participation in discussions, 
     sponsored by the Council of the Great City Schools on the 
     reauthorization of IDEA, has led us to include that the bill 
     represents a step forward in service for children with 
     special needs. We recommend adoption of the present IDEA 
     reauthorization.
       We have expressed our suggestions through the Council of 
     the Great City Schools, for certain clarifications in wording 
     as well as potential issues regarding over regulation. 
     Despite these reservations, we do believe that this 
     legislation, particularly its modification of financial 
     assignments, will help us to better serve the school children 
     of Philadelphia.
       We recommend your full support to bring the presently 
     drafted IDEA reauthorization to law.
     Sincerely,
                                David W. Hornbeck, Superintendent.

[[Page H2533]]

     
                                                                    ____
                                        Boston Public Schools,

                                          Boston, MA, May 6, 1997.
     Hon. William Goodling,
     Chairman, Committee on Education and the Workforce, House of 
         Representatives, Washington, DC.
       Dear Mr. Chairman: As Superintendent of the Boston Public 
     School District, I write to support H.R. 5, the IDEA 
     Reauthorization bill, based on the drafts and explanations 
     which we have received to date.
       Together with a number of other major school districts 
     across the country, our staff came to Washington for two days 
     last week to review the work product of the IDEA Working 
     Group. Although in any sizable draft piece of legislation or 
     legislative analysis there will be issues which produce 
     concern, overall the bill appears balanced and fair. It seems 
     to be a workable revision of this landmark Act, which if not 
     over-regulated, would be an improvement to current law. Some 
     costly requirements have been removed or modified from 
     current law, and some of the financial burdens now shouldered 
     by local school districts appear to have been relieved. These 
     revisions should result in improvement of services for 
     disabled children and a more manageable special education 
     program in general.
       I encourage you to expeditiously move this IDEA 
     Reauthorization through the legislative process without 
     changing the substantive provisions which have produced this 
     balanced bill.
           Sincerely,
     Thomas W. Payzant, Superintendent.
                                                                    ____

                                     The Arc of the United States,


                                  Governmental Affairs Office,

                                      Washington, DC, May 5, 1997.
     Congressman Bill Goodling,
     Chairman, Committee on Education and the Workforce, Rayburn 
         House Office Building, Washington, DC.
       Dear Chairman Goodling: The Arc, the nation's leading 
     organization advocating for children and adults with mental 
     retardation and their families, has great interest in the 
     reauthorization of the Individuals with Disabilities 
     Education Act. More than 10% of students with disabilities 
     served by IDEA have the label mental retardation.
       The Arc wishes to convey its deep appreciation to you and 
     your staff, particularly Sally Lovejoy and Todd Jones, for 
     your untiring efforts to achieve the reauthorization of this 
     vital law.
       A review of the IDEA Staff Working Group draft in 
     circulation as of today reveals some changes in the law that, 
     if enacted, would improve educational opportunities for 
     students with mental retardation. The Arc appreciates 
     especially the removal from the draft bill of provisions 
     regarding the cessation of educational services and the 
     disciplining of students with disabilities alleged to be 
     ``disruptive''. Other modifications may not be so clearly 
     beneficial or may even be detrimental.
       Although each provision in this bill requires scrutiny, it 
     is important that the bill as a whole be assessed. 
     Consequently, taken as a whole, The Arc has determined that 
     the bill is balanced. Thus, we urge this Congress to 
     reauthorize IDEA in accordance with the bill as developed by 
     the Working Group.
           Sincerely,
                                                     Quincy Abbot,
     President.
                                                                    ____



                               National Down Syndrome Society,

                                        New York, NY, May 6, 1997.
     Hon. William F. Goodling,
     U.S. House of Representatives, Rayburn Office Building, 
         Washington, DC.
       Dear Congressman Goodling: Thank you for your continued 
     efforts on behalf of reauthorizing the Individuals with 
     Disabilities Education Act (IDEA). The consensus process 
     initiated last year under your leadership has now culminated 
     in a bill with bipartisan, bicameral support. You and your 
     staffs continued involvement and hard work to achieve 
     agreement on the IDEA reauthorization are very much 
     appreciated.
       The proposed bill, circulated by the IDEA Working Group on 
     May 2, contains a number of important provisions that will 
     improve educational outcomes for students, strengthen 
     accountability, and increase parental participation. While we 
     do have concerns about certain provisions of the bill, 
     particularly some of the changes to personnel standards and 
     discipline, we recognize that this legislation represents a 
     delicate balance of competing concerns and interests. Taken 
     as a whole, it represents a fair balance among those 
     interests and should be passed.
       In closing, please note that our organization, the National 
     Down Syndrome Society, is separate from the National Down 
     Syndrome Congress. Due to the similarity of the names, these 
     two organizations are sometimes confused. Thank you again for 
     your work to reauthorize the IDEA. We look forward to 
     continuing to work with you and your staff through the 
     legislative process.
           Sincerely,
                                                Elizabeth Goodwin,
     President.
                                                                    ____

                                           National Association of


                                         School Psychologists,

                                        Bethesda, MD, May 6, 1997.
     Hon. William Goodling,
     Chairman, House Education and Workforce Committee, U.S. House 
         of Representatives, Washington, DC.
       Dear Chairman Goodling: The National Association of School 
     Psychologist commends your leadership in establishing the 
     historic consensus building in the drafting of legislative 
     language for the amendments to and reauthorization of IDEA. 
     This historic, cooperative effort produced legislation which 
     has the potential for improving the educational results for 
     all our children and youth with disabilities. It shows that 
     Republicans and Democrats under your leadership, in 
     cooperation with Assistant Secretary Judith Heumann, can 
     produce positive, family-friendly legislation with a focus on 
     positive academic and behavioral results for children with 
     disabilities.
       The National Association of School Psychologists will 
     strive to turn this legislation into practice through school 
     based teamwork with parents, teachers and administrators that 
     ensures effective evaluations, instructional and behavioral 
     interventions, measurement and analysis of results, and 
     careful concern for individualization, inclusion and non-
     biased services. We will partner with others to ensure that 
     all children will be educated in schools and classrooms that 
     are safe and conducive to learning for all. School 
     psychologists, working with others, will assist teachers, 
     design and provide interventions to help all children with 
     disabilities reach their goals and ensure that those children 
     with challenging behaviors will be supportively educated with 
     their peers as this law intends.
       We thank the Committee and its leadership for truly making 
     a good law better by improving the focus on results. We look 
     forward to effective implementation, ongoing meaningful 
     monitoring, and researched findings leading toward national 
     best practices for the more than five million children served 
     under IDEA.
           Sincerely,
                                                   Kevin P. Dwyer,
     NCSP, Assistant Executive Director.
                                                                    ____

                                                      May 6, 1997.
     Congressman William F. Goodling,
     Chairman, Committee on Education and the Workforce, U.S. 
         House of Representatives, Rayburn Building, Washington, 
         DC.
       Dear Mr. Goodling: I am writing to commend you and to 
     express my gratitude to you, particularly you, but also to 
     your colleagues in the House of Representatives and the 
     Senate, for the courage you have exhibited in creating the 
     Individual With Disabilities Education Act (IDEA) Working 
     Group and the IDEA Working Group process. In developing an 
     admirably fair and democratic discussion open to the 
     organizations and individuals interested in the IDEA, the 
     final product is a draft piece of legislation that focuses on 
     achieving strong educational outcomes of children. The bill, 
     if enacted, will allow increased fiscal flexibility as well 
     as greater school-based innovation and accountability. I 
     strongly urge you to support the passage of this bill.
           Sincerely,

                                            Madeleine C. Will,

                                       Former Assistant Secretary,
     Reagan Administration.
                                                                    ____



                           American Psychological Association,

                                      Washington, DC, May 7, 1997.
     Hon. Trent Lott,
     U.S. Senate,
     Washington, DC.
       Dear Senator Lott: On behalf of the American Psychological 
     Association (APA), its 151,000 members and affiliates, and 
     the families and children they serve, I would like to commend 
     the Working Group on the Individuals with Disabilities 
     Education Act (IDEA) for the thoughtful effort that has gone 
     into developing the current IDEA draft. APA appreciates that 
     the draft represents significant effort on the Working 
     Group's part to balance the sometimes conflicting needs of 
     various interest groups toward timely reauthorization of this 
     important Act.
       APA is particularly pleased with several provisions of the 
     draft language. These include:
       Provisions that enable children under age nine to obtain 
     special education and related services upon manifestation of 
     a developmental delay and without the need for disability 
     labelling;
       Provisions that guarantee continuation of free and 
     appropriate public educational services for children with 
     disabilities regardless of their placement;
       The requirement that states establish voluntary mediation 
     procedures prior to due process hearings;
       The elimination of the nebulous category of ``seriously 
     disruptive'' as justification for suspension or expulsion of 
     a child with a disability;
       The elimination of cessation of services as an appropriate 
     option for discipline of children with disabilities;
       The attempts to increase the participation of students with 
     disabilities in state and district-wide assessments; and
       The provisions surrounding the conduct of evaluations that 
     emphasize the need for a variety of assessment tools and 
     strategies, the use of multiple measures, and the assessment 
     of cognitive and behavioral factors in addition to physical 
     and developmental factors.
       These changes enable APA to support the draft, with the 
     following modifications suggested.
       (1) Qualifications of supervisors of paraprofessionals need 
     to be specified. In Section 612(15)(C) the Working Group 
     draft allows appropriately trained paraprofessionals who are 
     supervised to provide special education and related services 
     in areas where personnel

[[Page H2534]]

     shortages occur. The language does not, however, specify that 
     supervisors of paraprofessionals should be qualified (i.e., 
     certified or licensed) service providers and should only 
     supervise paraprofessionals in their own discipline. Adding 
     this requirement (A) enhances and ensures the quality of 
     service, and (B) reduces cost and potential liability from 
     due process proceedings alleging inaccurate diagnosis or 
     inappropriate treatment and placement provided by less than 
     qualified service providers.
       (2) Individual IEP team members should be restricted to 
     interpretation of assessment results for which they are 
     qualified (i.e., discipline-specific). Section 614(a)(4)(A) 
     calls for the determination of disability to be made by a 
     team of qualified professionals (i.e., the IEP team). Section 
     614(d)(1)(B)(v) requires that an individual who can interpret 
     the instructional implications of the assessment results be 
     included in the IEP team. Although it seems that the Act's 
     intent is for the composition of the IEP team to include 
     professionals qualified to interpret assessment results in 
     their respective areas of qualification (e.g., a medical 
     professional to interpret medical findings, a psychologist to 
     interpret psychological findings), the existing language does 
     not clearly or sufficiently specify this intent.
       A specific requirement that qualified assessment 
     professionals be included in the IEP team and interpret and 
     apply assessment findings only within their respective 
     disciplines will ensure cost-effectiveness in IEP diagnosis, 
     treatment planning, and placement by (A) ensuring accurate 
     assessment interpretation and application, and (B) reducing 
     potential due process liability resulting from allegations of 
     inappropriate interpretation and application of assessment 
     data. Furthermore, if appropriately qualified assessment 
     professionals are included in the IEP team, their expertise 
     also will be cost-effective for interpreting and applying 
     assessment findings for disciplinary manifestation 
     determinations.
       On behalf of the APA and children with and without 
     disabilities and the adults who care for them, I thank you 
     for your tireless efforts toward achieving a balanced IDEA 
     draft. Please feel free to contact me if APA can be of any 
     assistance as IDEA continues through the legislative and 
     regulatory process.
           Sincerely,

                                     Raymond D. Fowler, Ph.D.,

                                      Executive Vice President and
     Chief Executive Officer.
                                                                    ____

                                         American Bar Association,


                                  Governmental Affairs Office,

                                     Washington, DC, May 12, 1997.
     Hon. William F. Goodling,
     U.S. House of Representatives,
     Washington, DC.
       Dear Rep. Goodling: I am writing on behalf of the American 
     Bar Association to express our strong support for H.R. 5, 
     legislation approved by the House Committee on Education and 
     the Workforce May 7, 1997, to reauthorize the Individuals 
     with Disabilities Education Act (IDEA). We applaud your 
     leadership in particular in working to resolve differences 
     that had stalled action on the reauthorization of IDEA for 
     over a year, and we urge the Senate to support the bill that 
     has now come forward.
       IDEA is an essential component of the federal government's 
     commitment to the civil rights of persons with disabilities. 
     Like other civil statutes, IDEA provides legal recourse for 
     parents of children with disabilities when school districts 
     refuse to comply with the law. Under current law, parents are 
     entitled to a due process hearing to challenge the 
     identification, evaluation and educational placement of their 
     child.
       The ABA supports the proposed provision in H.R. 5 to expand 
     the Act's due process guarantees to include a right to pursue 
     a claim through mediation. If properly implemented, mediation 
     can be a cost-effective form of alternative dispute 
     resolution. However, proper implementation requires that the 
     mediation process include adequate safeguards to protect the 
     constitutional rights of students with disabilities to a free 
     appropriate education. In this regard, the Education and the 
     Workforce-reported bill is a distinct improvement on previous 
     versions of IDEA reauthorization legislation. It permits 
     parents to participate in mediation with their attorneys 
     present. Previous bills would have removed attorneys from 
     participation in a mediation or allowed their participation 
     only at a second mediation, which we believe would have 
     limited the efficacy and usefulness of the process. This 
     change is consistent with our own experience in successful 
     mediation. Our ABA Section of Dispute Resolution advises that 
     mediation is more successful when there is the opportunity 
     for voluntary participation by all individuals who are 
     essential to resolving the dispute. It is important that the 
     mediator ensure that the individuals necessary for the 
     effective resolution of the matter participate in the first 
     mediation.
       Attorneys who represent a party are essential for a full 
     and fair airing of the dispute and to arrive at an agreement. 
     Clearly, this version of the bill will yield more favorable 
     results in the mediation of these disputes.
       The ABA strongly supports reauthorization of IDEA with 
     expanded mediation opportunities. IDEA expresses the clear 
     intent of Congress that children with mental, physical, or 
     emotional disabilities should receive free appropriate public 
     education. The Act also includes administrative and judicial 
     remedies to protect the educational rights of children with 
     disabilities and the rights of their parents or guardians to 
     informed decision-making and participation in the provision 
     of appropriate educational opportunities for their children. 
     Your leadership and the hard work of your staff and many 
     others has produced a strong, worthy bill, and we urge the 
     strong support of the House for H.R. 5 and prompt 
     reauthorization of IDEA.
           Sincerely,
     Robert D. Evans.
                                                                    ____

                                                      May 6, 1997.
     Hon. William F. Goodling,
     U.S. House of Representatives, Rayburn Office Building, 
         Washington, DC.
       Dear Congressman Goodling: We, the undersigned national 
     organizations, wish to commend the Members of Congress and 
     their staff for their extraordinary efforts to reauthorize 
     the Individuals with Disabilities Education Act. The bill as 
     drafted by the IDEA Working Group as circulated on May 2 is, 
     on the whole, fair and balanced legislation and should be 
     adopted.
       On behalf of:
       National Parent Network on Diabilities.
       Learning Disabilities Association.
       The Arc.
       National Easter Seal Society.
       American Association of School Administrators.
       National Education Association.
       Autism Society of America.
       National Association of the Deaf.
       National Down Syndrome Society.
       Epilepsy Foundation of America.
       American Academy of Child & Adolescent Psychiatry.
       American Association of University Affilated Programs.
       American Foundation for the Blind.
       American Physical Therapy Association.
       American Speech-Language-Hearing Association.
       Association for Education & Rehabilitation of the Blind and 
     Visually Impaired.
       National Association of Developmental Disabilities 
     Councils.
       National Association of Protection and Advocacy.
       National Association of School Phychologists.
       National Association of State Directors of Special 
     Education.
       National Coalition on Deaf-Blindness.
       National Mental Health Association.

  Mr. CLAY. Mr. Speaker, I yield myself 3 minutes.
  Mr. Speaker, since the 104th Congress our committee has sought to 
reauthorize the Individuals with Disabilities in Education Act, 
particularly because it supports vitally important discretionary and 
early intervention programs for disabled children and their families. 
That objective has been a most daunting task, but today I am proud that 
we are one giant step closer to our goal. The bill before us not only 
reauthorizes the core of IDEA, but it also significantly builds and 
improves upon existing law.
  Mr. Speaker, before IDEA was enacted in 1975, almost 2 million 
children with disabilities were denied a basic education.

                              {time}  1430

  Another 2\1/2\ million received grossly inadequate educational 
services; 25 years ago, millions of American children were effectively 
denied the basic dignity of an education simply because they were 
disabled.
  Mr. Speaker, today some 6 million children are educated under IDEA 
and they are able to enjoy productive, meaningful lives. There are many 
outstanding aspects of this reauthorization bill. It strengthens the 
role of parents in their children's education, it guarantees that 
educational services for even the most troubled children will continue, 
it maintains high personnel standards, and it provides for a 
nonadversarial context in which parents and school officials can 
voluntarily mediate their disputes.
  Mr. Speaker, achievement of this consensus bill before us today is a 
truly remarkable example of what we can accomplish when we work 
together, Democrats and Republicans, the Congress and the 
administration, when we work together to address the needs of the most 
vulnerable in our society.
  I wish to thank my House colleagues, particularly the chairman, the 
gentleman from Pennsylvania [Mr. Goodling], the gentleman from 
California [Mr. Riggs], and the gentleman from California [Mr. 
Martinez] for their leadership and commitment to make this process 
work. In addition, I also want to thank the respective staffs for their 
dedication to this task.
  As my colleagues consider this bill today, let me remind them that it 
represents a very delicate compromise meant to balance the various 
concerns of many who care deeply about the children and the families 
affected by

[[Page H2535]]

IDEA. I know that Chairman Goodling and I have received many letters of 
support and encouragement from education and disability groups, as well 
as from parent organizations and individual parents. We very much 
appreciate their kind words.
  Mr. Speaker, I urge my colleagues to support this remarkable 
legislation.
  Mr. CLAY. Mr. Speaker, I yield 5 minutes to the gentleman from 
California [Mr. Riggs], the subcommittee chairman, who worked long and 
hard on the legislation.
  Mr. RIGGS. Mr. Speaker, today is truly a remarkable and historic day. 
It is, I guess, a real tribute to the hard work of our staffs on a 
bipartisan basis that we could bring this bill, reforming and improving 
the landmark Federal civil rights and special education statute to the 
House floor under suspension of the rules, and I want to salute all 
involved.
  As Chairman Goodling has said, the Individuals with Disabilities 
Education Act will help children with disabilities by focusing on their 
education instead of process and bureaucracy, by increasing the 
participation and the role of parents in the education of their 
children, and by giving teachers the tools that they need to teach all 
children.
  Let me just explain that the bill that we are considering on the 
floor today improves the connection of students with disabilities to 
the regular education curriculum and provides for increased 
accountability for educational results. It is really significant that 
we are changing the focus of the bill by raising expectations for the 
educational achievement for all students, especially those with 
learning disabilities.
  States under the legislation must establish goals for the performance 
of children with disabilities and develop indicators to judge their 
progress. A child's individualized educational program, otherwise known 
as an IEP, will focus on meaningful and measurable annual goals.
  Children's IEP teams will include, to the extent appropriate, their 
regular education teacher. Where localities or States use assessment 
instruments, children with disabilities will either be included in 
those assessments or be given alternate assessments to meet their 
needs. Educational accountability also means informing parents about 
the educational progress of their children.
  Under the IDEA amendments of 1997, parents of children with 
disabilities will be informed about the educational progress of their 
children as often as parents of children without disabilities. But even 
more fundamental than that, parents will be assured the ability to 
participate in all IEP team decisions, including those related to the 
placement of their child and the development of the IEP itself. Parents 
will also be able to access all records relating to their child, 
including evaluations and recommendations based on those records.
  The chairman mentioned the improvements that we are making in the 
area of mediation and school discipline policies. I also mentioned that 
this bill will ensure that teachers have the tools to teach all 
children. Specifically, the bill will shift decisions on the 
expenditure of Federal training funds from the Federal Government to 
States and localities. That change will mean more general and special 
education teachers receiving the in-service training that they need 
instead of preservice training for special educators that universities 
desire. So we are shifting the focus more again to staff development 
and in-service training rather than teacher education in the colleges 
and universities.
  Finally, I would like to mention two other areas that have required 
attention in the bill. One is the support for charter schools. First, 
charter schools that are recognized or chartered as their own local 
education agency, LEA, may opt to be merged into larger LEAs unless the 
State law specifically prevents this.
  Second, non-LEA charter schools, public choice schools, must receive 
IDEA funds in the same manner as other schools in the same LEA. Third, 
charter schools are eligible for State discretionary program grant 
funds under the amendments.
  I am also pleased, Mr. Speaker, to report that the bill clarifies, 
this is a very important point, particularly to my home State of 
California, it clarifies how services are to be provided to individuals 
in adult prisons who have been tried and convicted as adults.
  A State may now delegate its obligation to oversee prison education 
to the prison system or the State adult correctional department. 
Standards relating to IDEA services, placement, and paperwork may also 
be relaxed to acknowledge the unique security requirements of the 
prison environment. This bill also allows States, at their discretion, 
to deny services for adult prisoners while forfeiting only the pro rata 
share of Federal funding for that small segment of the total IDEA 
eligible population.
  So if this bill becomes law and California decides to deny services 
to adult prison inmates, the U.S. Department of Education can only 
reduce California's total Federal allocation by a small percentage 
instead of withholding the entire allocation, as the department is 
currently threatening to do.
  As the chairman said, this bill represents an unprecedented 
bipartisan, bicameral effort, bringing together folks on all sides of 
this issue. I too want to salute the staff for their many, many hours 
of hard work and say, Mr. Speaker, in conclusion, that this is a bill 
we can be very proud of. It is a good bill for students with 
disabilities, their parents, teachers, principals, and school board 
members. I urge my colleagues to support H.R. 5 today.
  Mr. CLAY. Mr. Speaker, I yield 3\1/2\ minutes to the gentleman from 
California [Mr. Martinez].
  (Mr. MARTINEZ asked and was given permission to revise and extend his 
remarks.)
  Mr. MARTINEZ. Mr. Speaker, I thank the gentleman from Missouri for 
yielding the time.
  Mr. Speaker, I am extremely pleased to join with the Members on the 
floor today on both sides of the aisle in supporting this important and 
historic piece of legislation, historic because of the cooperation of 
all parties involved. This reauthorization is the product of over 2 
years of work. But unlike the past 2 years, the most recent 2\1/2\ 
months of negotiations were bipartisan. As has been said before, these 
negotiations were aimed at maintaining the safeguards provided in 
current law and making modifications where the last 22 years has shown 
the need for change.
  The discussions between House and Senate Democrats and Republicans 
and the administration began with current law as its starting point. 
Careful consideration was given to the provisions of the current 
statute and, where necessary, it was amended to reflect the current 
difficulties in providing children with disabilities a free and 
appropriate public education.
  Since this law is an extremely important civil rights initiative, I 
can assure my colleagues that the test used to modify current law was 
extremely high. This bill before us today makes several much needed 
changes to current law.
  Included in this reauthorization are an affirmative statement barring 
the cessation of educational services for children with disabilities; 
provisions requiring that alternative educational settings be designed 
to allow the child to progress in the general education curriculum; and 
mediation which is voluntary with respect to the participation of both 
schools, parents and all those involved. Also included in this bill is 
the maintenance of high personnel standards, and improved enforcement 
provisions designed to give the Department of Education and the States 
the ability to require proper implementation of the act.
  Specifically, this bill makes several significant changes to current 
law, including a change in the Federal funding formula from one 
directed by child count to a formula based on population and poverty. I 
want to stress that no one should view this change in Federal formula 
to reflect the lack of need to identify children with disabilities.
  Under the act, States and localities will still be charged with 
identifying children with disabilities and providing proper educational 
and related services. In addition, the bill also makes changes 
regarding the mandate that States serve juveniles in adult correctional 
facilities.
  While the bill before us today provides several exemptions for 
serving disabled children in adult correction facilities, States will 
still be required to serve those who had an individualized education 
program in their last

[[Page H2536]]

educational placement. Members need to understand that disabled 
children do not often go straight from school to jail. However, the 
high dropout rate of children with disabilities often lead to these 
individuals encountering our justice system.
  Fortunately, the provisions in this bill will ensure that those 
children who drop out and then get into difficulties with our justice 
system will continue to be served in adult correctional facilities. 
Like those who have gone before me, I want to thank the Members that 
have worked on this bill: the chairmen, the gentleman from Pennsylvania 
[Mr. Goodling] and the gentleman from California [Mr. Riggs], the 
ranking member, the gentleman from Missouri [Mr. Clay], the gentleman 
from California [Mr. Miller], the gentleman from Missouri [Mr. Kildee], 
the gentleman from Virginia [Mr. Scott], the gentleman from Delaware 
[Mr. Castle], and the gentleman from South Carolina [Mr. Graham].
  The contributions of these Members and their staffs to this measure 
were essential to creating its carefully balanced nature. The staff in 
particular worked long into the night and on weekends, and this effort 
should not go unnoticed.
  In total, Members need to remember this measure is a carefully 
crafted compromise that means that both sides have to negotiate with 
the aim of finding a middle ground upon which we could agree. This bill 
is reflective of this throughout the provisions it contains because it 
contains provisions from both sides of the aisle.
  While the bill before us provides several exemptions for serving 
disabled children at adult correctional facilities, States will still 
be required to serve those individuals who had individualized education 
programs in the last educational placement.
  Mr. Speaker, this bill is one that deserves the merit and support of 
all the Members of Congress, and I urge all my colleagues to support 
this bill.
  Mr. RIGGS. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from 
Delaware [Mr. Castle].
  Mr. CASTLE. Mr. Speaker, I thank the gentleman for yielding. The 
Individuals with Disability 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. This legislation is critically important to 
millions of disabled children in America, not to mention their 
families, their friends, and their teachers. This law, however, has had 
unintended and costly consequences.
  For example, it has resulted in children being labeled as disabled 
when they were not. It has resulted in school districts unnecessarily 
paying expensive private school tuition for children. It has resulted 
in cases where lawyers have gamed the system to the detriment of 
schools and children. It has resulted in unsafe schools where teachers 
and administrators cannot discipline or remove violent disabled 
students.
  While this consensus bill does not contain everything I would like, I 
give it my strong endorsement. It contains a number of important 
reforms that address some of current law's unintended and costly 
consequences. To save Members the trouble of reading this 100-plus page 
bill and pulling out specific reforms themselves, I have compiled the 
following top 10 list of reasons to support the bill, and I would 
deliver it David Letterman style:
  No. 10. This bill encourages use of mediation, promoting cost-
effective resolution of conflicts.
  No. 9. This bill makes it harder for parents to unilaterally place a 
child in elite private schools at public taxpayer expense, lowering 
costs to local school districts.
  No. 8. This bill sends more money to local schools, alleviating their 
financial burdens.
  No. 7. This bill modifies attorneys' fees, reducing litigation and 
eliminating the incentive that lawyers have to try and game the system.
  No. 6. This bill makes changes to the formula, reducing incentives to 
overidentify children.
  No. 5. This bill prevents the identification of children as disabled 
if they actually have reading problems instead, also reducing 
overidentification of children with disabilities.
  No. 4. This bill eliminates the two-track disciplinary system in 
schools, making schools safer and more conducive to learning.
  No. 3. This bill gives parents access to more information, empowering 
parents to become more involved in their child's education.
  No. 2. This bill reduces paperwork requirements, lessening the amount 
of time wasted filling out mind-numbing forms.
  No. 1. This bill protects the rights of disabled children to receive 
a free, appropriate, public school education, assisting them in their 
efforts to become productive and fulfilled adults.

                              {time}  1445

  The committee had an important opportunity to approve 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. I urge my colleagues to 
give this bill their support.
  Mr. CLAY. Mr. Speaker, I yield 3 minutes to the gentleman from 
California [Mr. Miller].
  (Mr. MILLER of California asked and was given permission to revise 
and extend his remarks.)
  Mr. MILLER of California. Mr. Speaker, I thank the gentleman for 
yielding me the time.
  I am pleased to join my colleagues in both parties today in support 
of this remarkable achievement on behalf of children with disabilities 
and their families. I have always believed that it is an honor and a 
privilege to serve in Congress. I believed that 23 years ago when I was 
one of the original coauthors of this legislation, and I believe that 
today as we seek to revise this legislation to make it meet the needs 
of both our children and the school districts which educate them.
  We had some very serious disagreements when we started this process 
two years ago and at that time we had several critical points that 
prevented us from coming together. I believed then and still believe 
that all children regardless of the nature or severity of their 
disability must be guaranteed a free and appropriate education and that 
no child should be denied an education. I believed then and still 
believe that the treatment of children with disabilities should be 
guided by what we know about the nature of the child's disability and 
its effect on his or her behavior. I believed then and still believe 
that parents are entitled to pursue all legal avenues available for 
them to ensure that the child is treated fairly. Unfortunately, some 
have argued for provisions which would have curtailed or severely 
diminished these rights. I am pleased that the bill before us maintains 
the fundamental rights we established in that groundbreaking law 23 
years ago.
  This progress was not easy. We had to overcome some real and 
difficult disagreements. Those of us who believed the rights of the 
children and parents were going to suffer were able to work with our 
colleagues in Congress who saw the issue differently and were able to 
agree that the rights should be protected. What we strove to achieve 
and what I believe we accomplished is a bill that protects the rights 
of children with disabilities and at the same time fosters cooperation 
between parents, teachers, school boards, administrators, and State and 
local agencies to help ensure that each recognizes their 
responsibilities and that each must make a commitment to work 
collaboratively to serve the best interests of all children.
  Mr. Speaker, during our deliberations on this act, I received in the 
mail a letter from an old friend of mine, retired Superior Court Judge 
Robert J. Cooney, enclosing a book written by his son Peter describing 
what life was like for a child with Down's syndrome and for that child 
as he becomes an adult and seeks his place in American society. Over 
the years I have had the opportunity to watch Peter grow as he 
progressed through school, participated in the Special Olympics and 
achieved greater and greater independence.
  Peter makes it clear in his book the importance of family and 
available resources. He says it is the love of parents and others that 
make a person special. We need help sometimes. Parents and teachers and 
counselors should help us when we need their help,

[[Page H2537]]

but do not do too much for us. Some counselors need to think of us as 
special. Part of their job is helping us become independent.
  Peter is now 32 years old, lives in a residential facility, and works 
in the food service business at Cosumnes River College in Sacramento 
when he is not attending his book signings.
  Mr. Speaker, this legislation is about empowering parents and 
students to be able to get the best education they can so that, like 
Peter, they will have a chance to participate fully in American 
society.
  Before this law, Mr. Speaker, was on the books more than a million 
children with disabilities were not allowed to be educated. This 
rewrite makes sure that they continue to have those rights.
  Mr. GOODLING. Mr. Speaker, I yield 1 minute the gentleman from 
California [Mr. McKeon], subcommittee chairman.
  Mr. McKEON. Mr. Speaker, I thank the gentleman for yielding me the 
time.
  I rise today in support of H.R. 5, the Individuals with Disabilities 
Education Amendments Act. This legislation is a result of several years 
work with input from individuals and organizations representing the 
disabled, the education community, and parents. The outcome of this 
great effort is legislation that will substantially improve the current 
system of education for the disabled. In fact, this is the first major 
overhaul of the IDEA legislation in over 20 years. I commend the 
gentleman from Pennsylvania [Mr. Goodling], the gentleman from 
California [Mr. Riggs] and all the Members involved in this vast 
undertaking.
  H.R. 5 contains key reforms which increase parent participation, 
better connect students to the regular curriculum, provide support for 
the unique needs of individual students, provide more dollars to the 
classroom, reduce the costs of litigation, and reduce paperwork and 
process costs. There is no question these reforms will create a better 
system. I ask all to support the passage of this bill.
  Mr. CLAY. Mr. Speaker, I yield 2 minutes to the gentleman from 
Virginia [Mr. Scott].
  Mr. SCOTT. Mr. Speaker, I rise to join my colleagues in strong 
support of H.R. 5, the amendments to the Individuals with Disabilities 
Education Act, and I want to thank the gentleman from Pennsylvania [Mr. 
Goodling], the gentleman from California [Mr. Riggs], the gentleman 
from Missouri [Mr. Clay], and the gentleman from California [Mr. 
Martinez], ranking Members, and the leadership of the Senate for their 
leadership in crafting this truly remarkable bill. This legislation is 
extraordinary, not only because of its bipartisan bicameral and 
administration support, but also because it improves educational 
opportunities for children with disabilities.
  With the enactment of the Individuals with Disabilities Education 
Act, twenty-two years ago, Congress recognized that 3.5 million of the 
children with disabilities in the United States were not receiving 
appropriate educational services and more than a million children were 
excluded from school altogether.
  Today Congress not only reaffirms our commitment to education 
generally, but we are also reaffirming our commitment to ensuring that 
children with disabilities receive a free and appropriate education.
  While some may argue that the price is too high, we know that our 
failure to provide appropriate education to any child will cost us even 
more in the long run and we know that children with disabilities who do 
not complete their education are less likely to be employed, more 
likely to rely on public assistance, and substantially more likely to 
be involved in crime than those others who complete high school. While 
the same can be said for the outcomes of children without disabilities, 
research demonstrates that these correlations are even stronger for 
children with disabilities.
  Today we are here to support H.R. 5, because it significantly moves 
us towards fulfilling the promise we set 22 years ago, to provide a 
free and appropriate public education for all children with 
disabilities. So, Mr. Speaker, I would encourage all of my colleagues 
to support this remarkable legislation.
  Mr. GOODLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman 
from Nebraska [Mr. Barrett], another member of the committee.
  Mr. BARRETT of Nebraska. Mr. Speaker, I thank the gentleman for 
yielding me the time.
  Mr. Speaker, ask any school official to identify the one program in 
their school in which costs have increased dramatically and that person 
will probably identify the special education program. Ask any parents 
of a disabled child the greatest source of their frustrations in the 
school system and they will probably point to the school's special 
education program.
  This bill presents schools and parents with needed changes to Federal 
mandates that have gone underfunded. The bill would reduce paperwork 
and process costs without jeopardizing the educational services needed 
by our disabled children. It gives parents and schools the opportunity 
to seek mediation of their disputes before heading to costly court 
action.
  But one particular provision will take an unprecedented step in 
Federal education law, by allowing local schools to actually cut back 
on their special education spending, once Federal appropriations reach 
$4.1 billion, which is $1 billion more than the current appropriations. 
I think it is proper to allow schools to relieve themselves somewhat 
from the burden of shouldering the cost of an underfunded Federal 
mandate. As Federal appropriations will be used to help supplement 
local spending, disabled students should not experience a decrease in 
their services.
  I want to express my deep appreciation to the staff and to the 
subcommittee chairman, the gentleman from California [Mr. Riggs] and to 
the chairman, the gentleman from Pennsylvania [Mr. Goodling], and to 
the majority leader for crafting a bill that will provide relief to 
schools and parents and maintain our commitment to the educational 
services needed by our disabled children.
  Mr. CLAY. Mr. Speaker, I yield 2 minutes to the gentlewoman from New 
York [Mrs. McCarthy].
  Mrs. McCARTHY of New York. Mr. Speaker, I rise in strong support of 
H.R. 5. As someone that has learning disabilities, I knew what it was 
like to grow up and not have the educational opportunities. Luckily, my 
son was able to go to school and at that time they dealt with learning 
disabilities. It was during that time as he went to school I learned 
how to read, I learned how to study.
  What this bill does is give children hope, certainly, but it gives 
them an opportunity to go out in the work field. The most important 
thing, though, it does allow the children to have self-esteem, and I 
think that is the most important thing.
  I stand here because I am a Member of Congress now. I want the 
children out there to know, even though you have learning disabilities, 
you have a chance to learn and certainly you can do anything with your 
life that you want to.
  I am pleased that H.R. 5 addresses concerns that my constituents have 
raised. It provides financial relief to school districts that struggle 
with the high cost of educating students with disabilities. It also 
addresses the issues of transportation training, which ensures that 
students have access to education and to jobs later in life.
  Most of all, I am pleased that this bill is the product of bipartisan 
process. Educating children with disabilities is not a Democratic or a 
Republican issue, but a priority for all of us that must be addressed. 
It has been a pleasure working on this bill with both sides of the 
aisle and my colleagues. I think everyone did a wonderful job and 
everyone should be commended. But the bottom line is, we have 
remembered the children, and they are our best product for this country 
and they are the future of this country.
  Mr. GOODLING. Mr. Speaker, I yield 1 minute to gentleman from Georgia 
[Mr. Deal], another member of the committee.
  Mr. DEAL of Georgia. Mr. Speaker, I commend the gentleman and commend 
the subcommittee chairman and the staff for their hard work and to the 
minority for their hard work in the development of this piece of 
legislation.
  I rise in support of H.R. 5. As someone who is involved with 
education through my wife's teaching in a middle school in my district, 
I think that I can share with my colleagues the same concern that most 
administrators and

[[Page H2538]]

teachers would say when they consider the Disabilities Act in terms of 
its impact on education. That specific area that I wish to touch on is 
the area of discipline.
  It is indeed difficult to balance and achieve a reasonable balance 
between those who suffer from disabilities and those who are being 
educated along with them who are not under those disabilities. In the 
area of discipline, it is a difficult subject. This bill provides some 
necessary relief. Under this legislation, if a child is involved with 
drugs or with a weapon and is a disability child, it increases to 45 
days the time in which they may be placed in an alternative teaching 
environment. It also increases to 45 days the time in which a child 
that is involved in a disciplinary problem in which danger to other 
children is involved.
  Mr. Speaker, I commend the committee and thank the gentleman for 
yielding the time to me.
  Mr. CLAY. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
California [Ms. Sanchez].
  Ms. SANCHEZ. Mr. Speaker, I rise to commend my colleagues on the 
Committee on Education and the Workforce for their efforts to create 
this bipartisan piece of legislation. Reauthorization of the 
Individuals With Disabilities Education Act, H.R. 5, was a high 
priority for me in this session of Congress. I was proud to be a part 
of a bipartisan effort to ensure that 5.8 million disabled children 
receive an opportunity to succeed in the classroom.
  For students and parents in Orange County, CA, in my hometown, this 
bill envisions high expectations and standards for children in special 
education by requiring that they participate in State and district 
assessments with appropriate accommodations where necessary.
  H.R. 5 would expand the authority of school officials to protect the 
safety of all of our children in the classroom. In addition, the bill 
will allow school districts to get financial relief through new cost 
sharing provisions and the reduction of paperwork required from 
teachers, from school districts, and from States.

                              {time}  1500

  I urge my colleagues to support this critical piece of legislation 
because it affirms that educational services will not be terminated for 
any child with a disability.
  Mr. GOODLING. Mr. Speaker, I yield 1 minute to the gentleman from 
California [Mr. Cunningham].
  Mr. CUNNINGHAM. Mr. Speaker, this bill is a monumental bill. My 
colleagues on the other side, the gentleman from Missouri [Mr. Clay], 
and the rest of them, and the gentleman from Michigan [Mr. Kildee], we 
worked on this bill when I was chairman of the subcommittee.
  If we look at the difficulty of getting a bill through, between 
parent groups and schools, what the committee has done is monumental. 
On one hand we have parents that are thrust into an environment they 
never planned on having with a special education child and they are 
bewildered. On the other side there are the immense costs to the 
schools. And to bring those two groups together, I applaud both sides 
of the aisle.
  I think for the first time we have been able to enhance the amount of 
dollars and the services available to these children but, at the same 
time, giving the schools the flexibility that they need to handle the 
special education needs.
  Mr. CLAY. Mr. Speaker, I yield 2 minutes to the gentleman from Ohio 
[Mr. Traficant].
  Mr. TRAFICANT. Mr. Speaker, I thank the gentleman for yielding me 
this time.
  I want to compliment the gentleman from Pennsylvania [Mr. Goodling], 
the gentleman from California [Mr. Riggs], the gentleman from Missouri 
[Mr. Clay], the gentleman from California [Mr. Martinez], and the 
gentleman from Michigan [Mr. Kildee], and I want to thank them for 
including the language from my Braille Literacy Act that I submitted 
several years ago.
  Just briefly, in 1968 there were 20,000 visually impaired students; 
40 percent could read Braille, 45 percent could read large print. In 
1993, there were 50,000 visually impaired students; fewer than 9 
percent could read Braille, 27 percent could not read print, and, 
Congress, 40 percent of those visually impaired students could not read 
either or at all.
  I want to thank my colleagues for including language from my bill, 
the Braille Literacy Rights for Blind Americans Act. I want to 
compliment Tom Anderson, a constituent from my district, for his 
efforts in this as well. It basically says in the case of a child who 
is blind or visually impaired, it provides for instruction in Braille 
and the use of Braille, and also to consider the communication needs of 
the child. 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.
  I think we have done more with this bill than we may realize. I thank 
my colleagues for working with me and including language from my bill.
  Mr. GOODLING. Mr. Speaker, I yield 1 minute to the gentlewoman from 
Maryland [Mrs. Morella], the gentleman from Ohio's partner on my side 
of the aisle and a former teacher.
  (Mrs. MORELLA asked and was given permission to revise and extend her 
remarks.)
  Mrs. MORELLA. Mr. Speaker, I want to thank the gentleman for yielding 
me this time. I will speak quickly since I only have 1 minute.
  I want to congratulate the gentleman from Pennsylvania [Mr. 
Goodling], the gentleman from California [Mr. Riggs], and all the 
members of the Committee on Education and the Workforce for their hard 
work and perseverance.
  This really is a historic bill. What has been done in terms of making 
it bicameral and bipartisan, it passed out of both the House and the 
Senate committees without one dissenting vote. It will continue to make 
it possible for millions of children and youth with disabilities to 
gain a meaningful education.
  Before IDEA, the vast majority of children with disabilities were 
unserved and underserved. IDEA has created a future for these children 
with real opportunities and has been a real success in human terms. I 
can think of Cecilia Pauley in my district who had Down's syndrome. 
With the support of a loving family, she graduated from high school and 
is attending college. She could not have done this without IDEA.
  The bill on the floor today will help other parents provide that kind 
of support for other children just like Cecilia. It encourages parents 
to be involved in their children's education, takes into consideration 
parental preferences and concerns in the development of an 
individualized education plan, which is guaranteed for every child in a 
special education program.
  I am also pleased they worked out some of the problems we had last 
year in terms of providing for alternative settings so that students 
with disabilities who are expelled can continue their education. I just 
think this is a terrific bill and I ask the support of this entire body 
and congratulate all involved, Members and staff.
  Mr. CLAY. Mr. Speaker, may I inquire as to how much time is left on 
both sides?
  The SPEAKER pro tempore (Mr. Pease). The gentleman from Missouri [Mr. 
Clay] has 3\1/2\ minutes remaining, and the gentleman from Pennsylvania 
[Mr. Goodling] has 3 minutes.
  Mr. CLAY. Mr. Speaker, I yield the balance of my time to the 
gentleman from Guam [Mr. Underwood].
  Mr. UNDERWOOD. Mr. Speaker, I thank the gentleman for yielding me 
this time.
  Today, Mr. Speaker, I rise in support of the reauthorization of the 
act, and I am very pleased this Congress has been able to develop a 
bipartisan bill. I am especially pleased that the territories and 
freely associated states were appropriately considered and included in 
the crafting of funding mechanisms.
  Disabled students and their parents on Guam and in the other 
territories are as eager for access to quality education as their peers 
in the States, and they certainly need the same tools as their peers to 
succeed academically. Access to quality education and a chance to 
succeed is all our students want, whether they are disabled or not.
  The reauthorization of IDEA will go a long way in providing this 
opportunity, and I am proud to support this very bipartisan effort. I 
want to congratulate Members and staffs on both sides of the aisle who 
have worked out a compromise on the inclusion of the

[[Page H2539]]

territories and the three freely associated states, the Republic of 
Palau, the Republic of the Marshall Islands and the Federated States of 
Micronesia, in this important legislation.
  Sometimes it certainly seems to those of us in the islands that there 
are as many funding strategies as there are Federal programs, and this 
is especially true for us. The chairman may remember discussions I have 
had with him about this issue during the 104th Congress, and I thank 
him for his efforts in this regard.
  H.R. 5 allows the territories to take advantage and participate in 
any increases in appropriations while providing funds for the freely 
associated states through a competition with the Pacific territories 
for the next 4 years. While I have continuing concerns about using a 
nongovernment entity as a broker of funds intended for areas in which 
there are some very complex relationships, I certainly support the 
intent of this funding.
  I am informed that this mechanism will also be used as a model for 
future education and training legislation in an effort to clarify the 
patchwork nature of territorial funding.
  I congratulate the chairman and ranking member on their successful 
bipartisan effort, and I urge my colleagues to approve H.R. 5 on behalf 
of our children, whether they are in urban centers or suburbs or rural 
areas, or what we sometimes think of as very faraway islands, 
especially in those islands, areas where specialized services are rare 
or simply unavailable.
  Mr. GOODLING. Mr. Speaker, I yield myself the balance of my time, and 
I would close by merely again thanking all on both sides of the aisle 
for all their efforts to put together this bipartisan, bicameral bill, 
and all those from the outside who worked diligently to bring this 
about.
  I should mention Sally Lovejoy on the staff, who has been at this 
legislation for 13 years. So we want to pay tribute to her. She is only 
25, but she has been at the legislation for 13 years.
  Mr. FRELINGHUYSEN. Mr. Speaker, I rise to commend the House of 
Representatives on considering H.R. 5, a bill to reauthorize and reform 
the Individuals With Disabilities Act [IDEA]. This bill renews and 
strengthens our promise to children with disabilities and their 
families that they will receive an education equal to that of their 
peers.
  While the original IDEA legislation was critical in opening up 
educational opportunities to disabled students and enhancing efforts to 
include them in classes with other students, this legislation continues 
the commitment of the previous Congress to address the issue of 
actually providing adequate resources to individual States in educating 
children with disabilities. Last year, the Appropriations Committee, of 
which I am a member, increased funding for IDEA by almost $800 million 
to $3.1 billion for fiscal year 1997, the most in IDEA's history. H.R. 
5 authorizes a $1 billion increase for IDEA in fiscal year 1998 and, 
within 7 years, funding for the program increases to $11 billion.
  This bill, if enacted, will also improve the way States, schools, 
teachers, and parents work together to provide better education for 
children with disabilities. The new IDEA reform legislation will help 
children with disabilities by focusing on their education, instead of 
process and bureaucracy. It will also give parents increased 
participation and give teachers the tolls they need to teach all 
children. Moreover, this bipartisan legislation fulfills a proper 
Federal responsibility of protecting individual rights by insuring that 
children with disabilities have an equal opportunity to learn and 
succeed.
  Although there were a number of contentious issues involved while 
drafting H.R. 5, Chairman Goodling did a tremendous job of leading a 
bipartisan efforts in working with the many organizations representing 
the concerns of individuals with disabilities, their families and 
teachers, as well as school administrators and nurses. Today's vote in 
support of the IDEA reauthorization is a testament to the bipartisan 
and overwhelming support of this House to the needs of children with 
disabilities.
  Mr. CONDIT. Mr. Speaker, I rise today to alert you to my concerns 
with certain provisions contained in H.R. 5, the Individuals With 
Disabilities Act Amendments of 1997.
  Specifically, I am opposed to the provisions in this bill that 
require States to provide special education services to disabled 
individuals aged 16 to 21 who are incarcerated. I have always been 
supportive of an all out effort to provide educators with the necessary 
resources to properly train and educate those with disabilities. For 
this reason, I must object to requiring States to spend their scare 
education resources to serve prisoners.
  As you may be aware, both the Governor of California and California's 
legislative bodies have registered their disapproval of provisions 
mandating that the State provide special education services to 
convicted felons. While there may be prisoners who would benefit from 
such services, the States ought to be trusted to make this decision on 
their own. Equally disturbing is the provision allowing the Department 
of Education to penalize States who fail to comply with this 
requirement by withholding all special education money granted to a 
State.
  Notwithstanding my objections to these provisions, the overall merits 
of H.R. 5 warrant my support at this time. The objectionable provisions 
must be revisited by Congress.
  Chairman Bill Goodling, Representative Bill Clay, Representative 
Frank Riggs, and Representative Matthew Martinez are to be commended 
for expediting this reauthorization process and I look forward to 
working with all of them to address the concerns raised by the State of 
California.
  Mr. DUNCAN. Mr. Speaker, I rise in support of this legislation which 
makes some very important changes to the Individuals With Disabilities 
Education Act.
  We need to do our very best in educating the young people in our 
country. In addition, I believe we especially need to help those with 
disabilities.
  I admire the people who work very closely with these children on a 
daily basis. In fact, I would say that these are the people who, along 
with the parents, are most concerned with how this program is 
operating. They feel that too much money has been wasted in legal fees. 
Instead, they would like to see much more of the funding go directly to 
helping these special students. I agree.
  A few years ago, I met with a school superintendent from my district, 
Allen Morgan, and one of his main concerns was the cost of legal fees 
associated with this program. As a result, on August 5, 1993, I 
introduced H.R. 2882, which would have reduced the amount of money 
school systems have to spend for attorney fees. Do you want the money 
spent on lawyers or on severely disabled students?
  Under the legislation I introduced, State and local education 
agencies would not have had to pay attorney fees for preliminary 
administrative hearings and negotiations. This would have saved many 
millions of dollars across the country. However, it would still have 
allowed parents who prevailed in a civil action to be reimbursed for 
legal expenses. I am pleased to know that the authors of this bill have 
included similar language in this legislation.
  The bill on the floor today will save direly needed funds for 
educating the disabled by reducing the amount of money spent on overly 
excessive attorney fees. I urge my colleagues to support this 
legislation which will help get more money to the children who need it 
the most.
  Mrs. ROUKEMA. Mr. Speaker, I rise today to clarify some of the 
language in the Individuals With Disabilities Education Act that we are 
looking to enact into law today. This is a much needed piece of 
legislation which has been created with the participation and 
consideration of a large variety of interests. We should be proud of 
this historic moment.
  The section I would like to clarify involves personnel standards. 
This section has some potentially unclear language, which I would like 
to make clear. When the bill refers to the qualified individual who 
must be making satisfactory progress toward completing applicable 
course work necessary to meet the standards described earlier in the 
legislation, it is referring to the standards that are consistent with 
State law applicable to the profession or discipline. This 
clarification is important to answer an confusion that may arise.
  Mr. GOODE. Mr. Speaker, today, with reservations, I support H.R. 5, 
the Individuals With Disabilities Education Act Improvement Act of 
1997.
  Even before I came to Congress in January of this year, local school 
administrators and school board members from my home in Franklin 
County, VA, had alerted me to the grave fiscal dilemma they face in 
attempting to comply with IDEA. These local school officials and many 
of their colleagues in similar rural areas are finding it increasingly 
difficult to meet the needs of students with disabilities because of 
inadequate Federal funding and overly stringent Federal restrictions.
  These local officials are sincere in their commitment to provide an 
education to every young person that they serve, whether that person is 
faced with a disability or not. They are, however, increasingly 
confronted with nearly impossible dilemmas as the costs of special 
education rapidly increase. With this bipartisan bill, we will give 
these dedicated local officials some relief and will begin to meet the 
commitment to the level of funding that Congress made to States and 
localities when IDEA was enacted.
  There is one section of this bill that does trouble me. In some 
instances, a student may

[[Page H2540]]

engage in egregious misconduct that would result in expulsion except 
that such student is covered by IDEA. In those instances, I believe 
expulsion is merited and should be left to policies developed by the 
States and the localities. On February 5, 1997, the Circuit Court of 
Appeals for the Fourth Circuit ruled that the U.S. Department of 
Education was without authority to condition receipt by the 
Commonwealth of Virginia of IDEA funding on the continued provision of 
free education to disabled students who have been expelled or suspended 
long term for criminal or other serious misconduct unrelated to their 
disability. I agree that decisionmaking on these very case-specific 
instances should be left to localities and States and disagree with 
this aspect of this bill.
  On the whole, however, this bill offers improvements and gives 
schools greater flexibility, promotes cost-sharing between State and 
local agencies and recognizes the role of teachers.
  Mr. CUNNINGHAM. Mr. Speaker, I am proud to rise in support of H.R. 5, 
the IDEA Improvement Act. I am pleased to see it moving toward 
enactment, hopeful that continued improvements can be made, and 
thankful to those citizens, staff, and members who have made it 
possible.
  The Individuals with Disabilities Education Act, or IDEA, is based on 
one principle: That children with disabilities deserve a fighting 
chance to achieve the American Dream. Since its enactment in the 
1970's, this law has made education and opportunity available for 
millions of children with disabilities. Many of these Americans, who 
once would have been consigned to costly institutions for life, have 
used their education to sustain themselves and become contributing 
members of society. They are better for it, and the country is better, 
too.
  But the law has not been perfect. Over time, cooperation in pursuit 
of education has gradually given way to divisive and costly litigation 
that usurps scarce resources from children's schooling. Congress and 
successive administrations have failed to keep their promise to fund 40 
percent of States' costs to comply with IDEA and provide free, 
appropriate public education in the least restrictive environment, as 
the law requires. And the distribution of funds among the States has 
grown unfair and unequal, with some States receiving substantially more 
funding per school-age child than others.
  In the 104th Congress, we pledged and worked to do better. And we 
did. I was privileged at the time to serve as chairman of the House 
Subcommittee on Early Childhood, Youth and Families. We assembled a 
historic coalition of citizen representatives of children with 
disabilities, educators, the administration, Republicans, and Democrats 
to develop an IDEA Improvement Act that we could all agree upon. We 
reported a bill out of subcommittee, to the full committee, to the 
House, and forwarded it to the Senate by voice vote. Unfortunately, the 
late-session crunch and latent divisions forestalled its enactment. 
Nevertheless, Congress recognized the progress we had made by providing 
an equally historic, first-time substantial increase in IDEA funding, 
some $4 billion total in fiscal year 1997, $700 million more than in 
fiscal year 1996.
  Now, the 105th Congress is completing the work we began in the 104th 
Congress. Under the leadership of Education Committee Chairman Bill 
Goodling, Early Childhood Subcommittee Chairman Frank Riggs, and the 
majority leader of the other body, we now have an IDEA Improvement Act 
that all sides agree is an improvement. It focuses anew on the 
education of children with disabilities. It improves schools' 
administration of special education. It assures that additional IDEA 
appropriations are distributed in a more equitable manner, freeing the 
Appropriations Committee on which I now serve to fund IDEA more 
robustly and responsibly. And it replaces litigation and division with 
mediation and a more cooperative process for resolving disputes.
  Like the IDEA Improvement Act of the 104th Congress, this measure 
before us today is not perfect. H.R. 5 does not address the inequitable 
distribution of current IDEA funding. It does not give States enough 
relief from certain mandates, particularly those relating to IDEA-
mandated educational services for convicts in jail. And it does not 
give schools and communities as much flexibility as I would prefer in 
implementing an educational program, and ensuring the fair conduct of 
disciplinary procedures. It is a product of compromise and a great deal 
of hard work and sacrifice from all parties. And I am glad to say that 
it is, on balance, a very good bill that will do well by our children 
and our schools.
  Finally, I would like to publicly recognize a number of the people 
who made this measure possible. Chairmen Goodling and Riggs, and my 
former Early Childhood Subcommittee ranking member Dale Kildee--now 
ranking on the Higher Education Subcommittee--have done yeoman's work 
in carrying this difficult task through. The Senate majority leader, 
and his chief of staff, David Hoppe, coordinated a months-long march of 
meetings between all parties to hammer out an agreeable bill, and they 
have done marvelously. And Jay Eagen, Sally Lovejoy, and Todd Jones of 
the Education and Workforce Committee staff deserve recognition for 
distinguished service on this issue on behalf of many Members of the 
Congress. I was privileged to work with all of them in the 104th 
Congress. Many others deserve special recognition, especially the 
families, special education students, teachers, school board members, 
and administrators who contributed their work and experience to this 
measure.
  I urge Members to support H.R. 5. It goes to show that when we work 
together, we can get the job done.
  Mr. PAUL. Mr. Speaker, I rise to oppose H.R. 5, the Individuals with 
Disabilities Reauthorization Act of 1997 [IDEA]. I oppose this bill as 
strong supporter of doing all possible to advance the education of 
persons with disabilities. However, I do not think that a huge 
bureaucracy is the best way to educate disabled children. Parents and 
local communities know their children so much better than any Federal 
bureaucrat, and they can do a better job of meeting a child's needs 
than we in Washington. There is no way that the unique needs of my 
grandchildren, and some young boy or girl in Los Angeles, CA or New 
York City can be educated by some sort of ``Cookie Cutter'' approach.
  At a time when Congress should be returning power and funds to the 
States, IDEA increases Federal control over education. According to the 
Congressional Budget Office Federal expenditures on IDEA will reach 
over $20 billion by the year 2002. This flies in the face of many 
Members' public commitment to place limits on the scope of the Federal 
bureaucracy.
  H.R. 5 imposes significant costs on State governments and localities. 
For example, the new bill requires one regular education teacher to 
take part in each individual education plan [IEP]. According to certain 
education experts, this could require as many as 10 to 15 teachers be 
present at each IEPO meeting. This bill also requires States to include 
disabled students in all statewide assessments by 1998 and develop 
alternatives for students unable to participate in the regular exams by 
the year 2000. According to the National Association of State Boards of 
Education [NASBE], this mandate will increase assessment costs by 12 
percent.
  NASBE's May 9 letter to Congress identifies several other provisions 
in H.R. 5 that will impose new financial burdens on the States. I ask 
that the letter be read into the Record.
  As I see Members of Congress applaud the imposition of more mandates 
on States, I cannot help but think of a letter I received from the high 
school principal asking for some relief from Federal mandates imposed 
on her by laws like IDEA. I would ask all my colleagues to consider 
whether we are truly aiding education by imposing new mandates or just 
making it more difficult for hard-working, education professionals like 
this principal to properly educate our children?
  The major Federal mandate in IDEA is that disabled children be 
educated in the least restrictive setting. In other words, this bill 
makes mainstreaming the Federal policy. Many children may thrive in a 
mainstream classroom environment, however, I worry that some children 
may be mainstreamed solely because school officials believe it is 
required by Federal law, even though the mainstream environment is not 
the most appropriate for that child.
  On May 10, 1994, Dr. Mary Wagner Testified before the Education 
Committee that disabled children who are not placed in a mainstream 
classrooms graduate from high school at a much higher rate than 
disabled children who are mainstreamed. Dr. Wagner quite properly 
accused Congress of sacrificing children to ideology.
  Mr. Speaker, it is time to stop sacrificing children on the alter of 
ideology. Every child is unique and special. Given the colossal failure 
of Washington's existing interference, it is clear that all children 
will be better off when we get Washington out of their classroom and 
out of their parents' pocketbooks. I therefore urge my colleagues to 
cast a vote for constitutionally limited government and genuine 
compassion by opposing H.R. 5.

                                           National Association of


                                    State Boards of Education,

                                      Alexandria, VA, May 9, 1997.
       Dear Representative: The National Association of State 
     Boards of Education (NASBE) is a private nonprofit 
     association representing state and territorial boards of 
     education. We are writing to express our opposition to the 
     changes made to the state set-aside formula in the compromise 
     agreement on the individuals with Disabilities Education Act 
     (IDEA).
       Under the new legislation, the state share is capped at the 
     FY97 level, with all future increases equal to the rate of 
     inflation or the federal appropriations increase--whichever 
     is less. This new formula also applies to the state's 5% 
     administration reserve. This

[[Page H2541]]

     limit, especially as applied to state administration, will 
     place severe burdens on already strained state education 
     budgets and will result in an enormous federally unfunded 
     mandate.
       IDEA is a highly prescriptive law requiring vigilant state 
     monitoring and evaluation to ensure disabled students are 
     receiving all appropriate educational services. The new 
     mandates will create even more administrative and oversight 
     responsibilities for state education agencies (SEAs), while 
     at the same time significantly decreasing the federal funds 
     necessary to carry out such functions. Because of the 
     artificial limits placed on the states' administrative share, 
     the excess costs of administering the programs, distributing 
     grants and ensuring local education agency (LEA) compliance 
     with the law will be borne solely by the SEA.
       In addition, the proposed legislation directs the states to 
     implement the following new programs: (1) Include disabled 
     students in all state-wide assessments by 1998 and to develop 
     alternatives for students unable to participate in regular 
     exams by the year 2000. (At the very least, this mandate will 
     increase state assessment costs by 12%, the national average 
     of disabled students in the general school population); (2) 
     Establish and operate a mediation system for use by LEAs and 
     parents; (3) Develop and implement state performance goals 
     and indicators for disabled students.
       The states are responsible for all of the costs incurred by 
     creating and maintaining the above programs. The federal 
     government is providing absolutely no new financial 
     assistance to help offset these expenses.
       The reduction of the state set-aside severely undermines 
     the historic federal, state and local partnership and 20-year 
     old cost-sharing arrangement that have worked so well in 
     delivering a free, appropriate public education to disabled 
     students. We urge you to amend the IDEA compromise agreement 
     by allowing funding increases of up to 5% annually for state 
     administration.
           Sincerely,
                                                Brenda L. Welburn,
                                               Executive Director.
  Mr. GILMAN. Mr. Speaker, I rise today in support of the Individuals 
With Disabilities Education Improvement Act, H.R. 5, and commend its 
sponsor, the distinguished chairman of the Committee on Education and 
the Workforce, Mr. Goodling, and the chairman of the Subcommittee on 
Early Childhood, Youth and Families, Mr. Riggs, for 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 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 overidentification 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. GOODLATTE. Mr. Speaker, I want to first congratulate the chairman 
on his dedication to this important issue and his hard work toward 
crafting a bill that will help schools improve the quality of education 
for students with disabilities.
  This bill includes a number of provisions that I strongly support. It 
streamlines and consolidates the requirements that States must meet for 
individualized education plans, allows parents to participate in all 
IEP decisions, guarantees that parents have access to all records 
relating to their children, and includes a number of provisions to 
limit attorney's fees and reduce litigation.
  While I support most of the provisions in this bill, I am deeply 
concerned that in an effort to reach a compromise with the 
administration, this bill includes language that tramples the rights of 
States and localities to ensure safety and discipline in their 
classrooms.
  The bill includes a provision that effectively overturns a recent 
Federal Appeals Court decision allowing States to suspend or expel 
disabled students for criminal or other serious misconduct when the 
action is unrelated to their disability. The administration's policy, 
which not only exceeds the mandate of IDEA, sets a glaring double 
standard by establishing two discipline codes--one for disabled 
students and another for nondisabled students. Including this provision 
in the bill ties the hands of States and localities when it comes to 
effectively disciplining students.
  While I believe that the overall bill is good for disabled students, 
good for parents and teachers, and good for the American taxpayers, it 
would have been a great deal better had this provision not been 
included. With that, I yield back the balance of my time.
  Mr. GOODLING. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. 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. 5, as amended.
  The question was taken.
  Mr. GOODLING. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________