[Congressional Record Volume 150, Number 132 (Wednesday, November 17, 2004)]
[House]
[Pages H9895-H9959]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     CONFERENCE REPORT ON H.R. 1350

  Mr. BOEHNER submitted the following conference report and statement 
on the bill (H.R. 1350), an Act to reauthorize the Individuals with 
Disabilities Education Act, and for other purposes.

                  Conference Report (H. Rept. 108-779)

       The committee on conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     1350), an Act to reauthorize the Individuals with 
     Disabilities Education Act, and for other purposes, having 
     met, after full and free conference, have agreed to recommend 
     and do recommend to their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate to the text of the bill and agree to 
     the same with an amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Individuals with 
     Disabilities Education Improvement Act of 2004''.

     SEC. 2. ORGANIZATION OF THE ACT.

       This Act is organized into the following titles:

 TITLE I--AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT

        TITLE II--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

                  TITLE III--MISCELLANEOUS PROVISIONS

 TITLE I--AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT

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

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

                      ``PART A--GENERAL PROVISIONS

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

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

                      ``Part A--General Provisions

``Sec. 601. Short title; table of contents; findings; purposes.
``Sec. 602. Definitions.
``Sec. 603. Office of Special Education Programs.
``Sec. 604. Abrogation of State sovereign immunity.
``Sec. 605. Acquisition of equipment; construction or alteration of 
              facilities.
``Sec. 606. Employment of individuals with disabilities.
``Sec. 607. Requirements for prescribing regulations.
``Sec. 608. State administration.
``Sec. 609. Paperwork reduction.
``Sec. 610. Freely associated states.

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

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

            ``Part C--Infants and Toddlers With Disabilities

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

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

``Sec. 650. Findings.


             ``SUBPART 1--STATE PERSONNEL DEVELOPMENT GRANTS

``Sec. 651. Purpose; definition of personnel; program authority.
``Sec. 652. Eligibility and collaborative process.
``Sec. 653. Applications.
``Sec. 654. Use of funds.
``Sec. 655. Authorization of appropriations.


     ``SUBPART 2--PERSONNEL PREPARATION, TECHNICAL ASSISTANCE, MODEL 
        DEMONSTRATION PROJECTS, AND DISSEMINATION OF INFORMATION

``Sec. 661. Purpose; definition of eligible entity.
``Sec. 662. Personnel development to improve services and results for 
              children with disabilities.
``Sec. 663. Technical assistance, demonstration projects, dissemination 
              of information, and implementation of scientifically 
              based research.
``Sec. 664. Studies and evaluations.
``Sec. 665. Interim alternative educational settings, behavioral 
              supports, and systemic school interventions.
``Sec. 667. Authorization of appropriations.


       ``SUBPART 3--SUPPORTS TO IMPROVE RESULTS FOR CHILDREN WITH 
                              DISABILITIES

``Sec. 670. Purposes.
``Sec. 671. Parent training and information centers.
``Sec. 672. Community parent resource centers.
``Sec. 673. Technical assistance for parent training and information 
              centers.
``Sec. 674. Technology development, demonstration, and utilization; and 
              media services.
``Sec. 675. Authorization of appropriations.


                     ``SUBPART 4--GENERAL PROVISIONS

``Sec. 681. Comprehensive plan for subparts 2 and 3.
``Sec. 682. Administrative provisions.

       ``(c) Findings.--Congress finds the following:
       ``(1) Disability is a natural part of the human experience 
     and in no way diminishes the right of individuals to 
     participate in or contribute to society. Improving 
     educational results for children with disabilities is an 
     essential element of our national policy of ensuring equality 
     of opportunity, full participation, independent living, and 
     economic self-sufficiency for individuals with disabilities.
       ``(2) Before the date of enactment of the Education for All 
     Handicapped Children Act of 1975 (Public Law 94-142), the 
     educational needs of millions of children with disabilities 
     were not being fully met because--
       ``(A) the children did not receive appropriate educational 
     services;
       ``(B) the children were excluded entirely from the public 
     school system and from being educated with their peers;
       ``(C) undiagnosed disabilities prevented the children from 
     having a successful educational experience; or
       ``(D) a lack of adequate resources within the public school 
     system forced families to find services outside the public 
     school system.
       ``(3) Since the enactment and implementation of the 
     Education for All Handicapped Children Act of 1975, this 
     title has been successful in ensuring children with 
     disabilities and the families of such children access to a 
     free appropriate public education and in improving 
     educational results for children with disabilities.
       ``(4) However, the implementation of this title has been 
     impeded by low expectations, and an insufficient focus on 
     applying replicable research on proven methods of teaching 
     and learning for children with disabilities.
       ``(5) Almost 30 years of research and experience has 
     demonstrated that the education of children with disabilities 
     can be made more effective by--
       ``(A) having high expectations for such children and 
     ensuring their access to the general education curriculum in 
     the regular classroom, to the maximum extent possible, in 
     order to--
       ``(i) meet developmental goals and, to the maximum extent 
     possible, the challenging expectations that have been 
     established for all children; and
       ``(ii) be prepared to lead productive and independent adult 
     lives, to the maximum extent possible;
       ``(B) strengthening the role and responsibility of parents 
     and ensuring that families of such children have meaningful 
     opportunities to participate in the education of their 
     children at school and at home;
       ``(C) coordinating this title with other local, educational 
     service agency, State, and Federal school improvement 
     efforts, including improvement efforts under the Elementary 
     and Secondary Education Act of 1965, in order to ensure that 
     such children benefit from such efforts and that special 
     education can become a service for such children rather than 
     a place where such children are sent;
       ``(D) providing appropriate special education and related 
     services, and aids and supports in the regular classroom, to 
     such children, whenever appropriate;
       ``(E) supporting high-quality, intensive preservice 
     preparation and professional development for all personnel 
     who work with children with disabilities in order to ensure 
     that such personnel have the skills and knowledge necessary 
     to improve the academic achievement and functional 
     performance of children with disabilities, including the use 
     of scientifically based instructional practices, to the 
     maximum extent possible;
       ``(F) providing incentives for whole-school approaches, 
     scientifically based early reading programs, positive 
     behavioral interventions and supports, and early intervening 
     services to reduce the need to label children as disabled in 
     order to address the learning and behavioral needs of such 
     children;

[[Page H9896]]

       ``(G) focusing resources on teaching and learning while 
     reducing paperwork and requirements that do not assist in 
     improving educational results; and
       ``(H) supporting the development and use of technology, 
     including assistive technology devices and assistive 
     technology services, to maximize accessibility for children 
     with disabilities.
       ``(6) While States, local educational agencies, and 
     educational service agencies are primarily responsible for 
     providing an education for all children with disabilities, it 
     is in the national interest that the Federal Government have 
     a supporting role in assisting State and local efforts to 
     educate children with disabilities in order to improve 
     results for such children and to ensure equal protection of 
     the law.
       ``(7) A more equitable allocation of resources is essential 
     for the Federal Government to meet its responsibility to 
     provide an equal educational opportunity for all individuals.
       ``(8) Parents and schools should be given expanded 
     opportunities to resolve their disagreements in positive and 
     constructive ways.
       ``(9) Teachers, schools, local educational agencies, and 
     States should be relieved of irrelevant and unnecessary 
     paperwork burdens that do not lead to improved educational 
     outcomes.
       ``(10)(A) The Federal Government must be responsive to the 
     growing needs of an increasingly diverse society.
       ``(B) America's ethnic profile is rapidly changing. In 
     2000, 1 of every 3 persons in the United States was a member 
     of a minority group or was limited English proficient.
       ``(C) Minority children comprise an increasing percentage 
     of public school students.
       ``(D) With such changing demographics, recruitment efforts 
     for special education personnel should focus on increasing 
     the participation of minorities in the teaching profession in 
     order to provide appropriate role models with sufficient 
     knowledge to address the special education needs of these 
     students.
       ``(11)(A) The limited English proficient population is the 
     fastest growing in our Nation, and the growth is occurring in 
     many parts of our Nation.
       ``(B) Studies have documented apparent discrepancies in the 
     levels of referral and placement of limited English 
     proficient children in special education.
       ``(C) Such discrepancies pose a special challenge for 
     special education in the referral of, assessment of, and 
     provision of services for, our Nation's students from non-
     English language backgrounds.
       ``(12)(A) Greater efforts are needed to prevent the 
     intensification of problems connected with mislabeling and 
     high dropout rates among minority children with disabilities.
       ``(B) More minority children continue to be served in 
     special education than would be expected from the percentage 
     of minority students in the general school population.
       ``(C) African-American children are identified as having 
     mental retardation and emotional disturbance at rates greater 
     than their White counterparts.
       ``(D) In the 1998-1999 school year, African-American 
     children represented just 14.8 percent of the population aged 
     6 through 21, but comprised 20.2 percent of all children with 
     disabilities.
       ``(E) Studies have found that schools with predominately 
     White students and teachers have placed disproportionately 
     high numbers of their minority students into special 
     education.
       ``(13)(A) As the number of minority students in special 
     education increases, the number of minority teachers and 
     related services personnel produced in colleges and 
     universities continues to decrease.
       ``(B) The opportunity for full participation by minority 
     individuals, minority organizations, and Historically Black 
     Colleges and Universities in awards for grants and contracts, 
     boards of organizations receiving assistance under this 
     title, peer review panels, and training of professionals in 
     the area of special education is essential to obtain greater 
     success in the education of minority children with 
     disabilities.
       ``(14) As the graduation rates for children with 
     disabilities continue to climb, providing effective 
     transition services to promote successful post-school 
     employment or education is an important measure of 
     accountability for children with disabilities.
       ``(d) Purposes.--The purposes of this title are--
       ``(1)(A) to ensure that all children with disabilities have 
     available to them a free appropriate public education that 
     emphasizes special education and related services designed to 
     meet their unique needs and prepare them for further 
     education, employment, and independent living;
       ``(B) to ensure that the rights of children with 
     disabilities and parents of such children are protected; and
       ``(C) to assist States, localities, educational service 
     agencies, and Federal agencies to provide for the education 
     of all children with disabilities;
       ``(2) to assist States in the implementation of a 
     statewide, comprehensive, coordinated, multidisciplinary, 
     interagency system of early intervention services for infants 
     and toddlers with disabilities and their families;
       ``(3) to ensure that educators and parents have the 
     necessary tools to improve educational results for children 
     with disabilities by supporting system improvement 
     activities; coordinated research and personnel preparation; 
     coordinated technical assistance, dissemination, and support; 
     and technology development and media services; and
       ``(4) to assess, and ensure the effectiveness of, efforts 
     to educate children with disabilities.

     ``SEC. 602. DEFINITIONS.

       ``Except as otherwise provided, in this title:
       ``(1) Assistive technology device.--
       ``(A) In general.--The term `assistive technology device' 
     means any item, piece of equipment, or product system, 
     whether acquired commercially off the shelf, modified, or 
     customized, that is used to increase, maintain, or improve 
     functional capabilities of a child with a disability.
       ``(B) Exception.--The term does not include a medical 
     device that is surgically implanted, or the replacement of 
     such device.
       ``(2) Assistive technology service.--The term `assistive 
     technology service' means any service that directly assists a 
     child with a disability in the selection, acquisition, or use 
     of an assistive technology device. Such term includes--
       ``(A) the evaluation of the needs of such child, including 
     a functional evaluation of the child in the child's customary 
     environment;
       ``(B) purchasing, leasing, or otherwise providing for the 
     acquisition of assistive technology devices by such child;
       ``(C) selecting, designing, fitting, customizing, adapting, 
     applying, maintaining, repairing, or replacing assistive 
     technology devices;
       ``(D) coordinating and using other therapies, 
     interventions, or services with assistive technology devices, 
     such as those associated with existing education and 
     rehabilitation plans and programs;
       ``(E) training or technical assistance for such child, or, 
     where appropriate, the family of such child; and
       ``(F) training or technical assistance for professionals 
     (including individuals providing education and rehabilitation 
     services), employers, or other individuals who provide 
     services to, employ, or are otherwise substantially involved 
     in the major life functions of such child.
       ``(3) Child with a disability.--
       ``(A) In general.--The term `child with a disability' means 
     a child--
       ``(i) with mental retardation, hearing impairments 
     (including deafness), speech or language impairments, visual 
     impairments (including blindness), serious emotional 
     disturbance (referred to in this title as `emotional 
     disturbance'), orthopedic impairments, autism, traumatic 
     brain injury, other health impairments, or specific learning 
     disabilities; and
       ``(ii) who, by reason thereof, needs special education and 
     related services.
       ``(B) Child aged 3 through 9.--The term `child with a 
     disability' for a child aged 3 through 9 (or any subset of 
     that age range, including ages 3 through 5), may, at the 
     discretion of the State and the local educational agency, 
     include a child--
       ``(i) experiencing developmental delays, as defined by the 
     State and as measured by appropriate diagnostic instruments 
     and procedures, in 1 or more of the following areas: physical 
     development; cognitive development; communication 
     development; social or emotional development; or adaptive 
     development; and
       ``(ii) who, by reason thereof, needs special education and 
     related services.
       ``(4) Core academic subjects.--The term `core academic 
     subjects' has the meaning given the term in section 9101 of 
     the Elementary and Secondary Education Act of 1965.
       ``(5) Educational service agency.--The term `educational 
     service agency'--
       ``(A) means a regional public multiservice agency--
       ``(i) authorized by State law to develop, manage, and 
     provide services or programs to local educational agencies; 
     and
       ``(ii) recognized as an administrative agency for purposes 
     of the provision of special education and related services 
     provided within public elementary schools and secondary 
     schools of the State; and
       ``(B) includes any other public institution or agency 
     having administrative control and direction over a public 
     elementary school or secondary school.
       ``(6) Elementary school.--The term `elementary school' 
     means a nonprofit institutional day or residential school, 
     including a public elementary charter school, that provides 
     elementary education, as determined under State law.
       ``(7) Equipment.--The term `equipment' includes--
       ``(A) machinery, utilities, and built-in equipment, and any 
     necessary enclosures or structures to house such machinery, 
     utilities, or equipment; and
       ``(B) all other items necessary for the functioning of a 
     particular facility as a facility for the provision of 
     educational services, including items such as instructional 
     equipment and necessary furniture; printed, published, and 
     audio-visual instructional materials; telecommunications, 
     sensory, and other technological aids and devices; and books, 
     periodicals, documents, and other related materials.
       ``(8) Excess costs.--The term `excess costs' means those 
     costs that are in excess of the average annual per-student 
     expenditure in a local educational agency during the 
     preceding school year for an elementary school or secondary 
     school student, as may be appropriate, and which shall be 
     computed after deducting--
       ``(A) amounts received--
       ``(i) under part B;
       ``(ii) under part A of title I of the Elementary and 
     Secondary Education Act of 1965; and
       ``(iii) under parts A and B of title III of that Act; and
       ``(B) any State or local funds expended for programs that 
     would qualify for assistance under any of those parts.
       ``(9) Free appropriate public education.--The term `free 
     appropriate public education' means special education and 
     related services that--
       ``(A) have been provided at public expense, under public 
     supervision and direction, and without charge;
       ``(B) meet the standards of the State educational agency;

[[Page H9897]]

       ``(C) include an appropriate preschool, elementary school, 
     or secondary school education in the State involved; and
       ``(D) are provided in conformity with the individualized 
     education program required under section 614(d).
       ``(10) Highly qualified.--
       ``(A) In general.--For any special education teacher, the 
     term `highly qualified' has the meaning given the term in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965, except that such term also--
       ``(i) includes the requirements described in subparagraph 
     (B); and
       ``(ii) includes the option for teachers to meet the 
     requirements of section 9101 of such Act by meeting the 
     requirements of subparagraph (C) or (D).
       ``(B) Requirements for special education teachers.--When 
     used with respect to any public elementary school or 
     secondary school special education teacher teaching in a 
     State, such term means that--
       ``(i) the teacher has obtained full State certification as 
     a special education teacher (including certification obtained 
     through alternative routes to certification), or passed the 
     State special education teacher licensing examination, and 
     holds a license to teach in the State as a special education 
     teacher, except that when used with respect to any teacher 
     teaching in a public charter school, the term means that the 
     teacher meets the requirements set forth in the State's 
     public charter school law;
       ``(ii) the teacher has not had special education 
     certification or licensure requirements waived on an 
     emergency, temporary, or provisional basis; and
       ``(iii) the teacher holds at least a bachelor's degree.
       ``(C) Special education teachers teaching to alternate 
     achievement standards.--When used with respect to a special 
     education teacher who teaches core academic subjects 
     exclusively to children who are assessed against alternate 
     achievement standards established under the regulations 
     promulgated under section 1111(b)(1) of the Elementary and 
     Secondary Education Act of 1965, such term means the teacher, 
     whether new or not new to the profession, may either--
       ``(i) meet the applicable requirements of section 9101 of 
     such Act for any elementary, middle, or secondary school 
     teacher who is new or not new to the profession; or
       ``(ii) meet the requirements of subparagraph (B) or (C) of 
     section 9101(23) of such Act as applied to an elementary 
     school teacher, or, in the case of instruction above the 
     elementary level, has subject matter knowledge appropriate to 
     the level of instruction being provided, as determined by the 
     State, needed to effectively teach to those standards.
       ``(D) Special education teachers teaching multiple 
     subjects.--When used with respect to a special education 
     teacher who teaches 2 or more core academic subjects 
     exclusively to children with disabilities, such term means 
     that the teacher may either--
       ``(i) meet the applicable requirements of section 9101 of 
     the Elementary and Secondary Education Act of 1965 for any 
     elementary, middle, or secondary school teacher who is new or 
     not new to the profession;
       ``(ii) in the case of a teacher who is not new to the 
     profession, demonstrate competence in all the core academic 
     subjects in which the teacher teaches in the same manner as 
     is required for an elementary, middle, or secondary school 
     teacher who is not new to the profession under section 
     9101(23)(C)(ii) of such Act, which may include a single, high 
     objective uniform State standard of evaluation covering 
     multiple subjects; or
       ``(iii) in the case of a new special education teacher who 
     teaches multiple subjects and who is highly qualified in 
     mathematics, language arts, or science, demonstrate 
     competence in the other core academic subjects in which the 
     teacher teaches in the same manner as is required for an 
     elementary, middle, or secondary school teacher under section 
     9101(23)(C)(ii) of such Act, which may include a single, high 
     objective uniform State standard of evaluation covering 
     multiple subjects, not later than 2 years after the date of 
     employment.
       ``(E) Rule of construction.--Notwithstanding any other 
     individual right of action that a parent or student may 
     maintain under this part, nothing in this section or part 
     shall be construed to create a right of action on behalf of 
     an individual student or class of students for the failure of 
     a particular State educational agency or local educational 
     agency employee to be highly qualified.
       ``(F) Definition for purposes of the esea.--A teacher who 
     is highly qualified under this paragraph shall be considered 
     highly qualified for purposes of the Elementary and Secondary 
     Education Act of 1965.
       ``(11) Homeless children.--The term `homeless children' has 
     the meaning given the term `homeless children and youths' in 
     section 725 of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11434a).
       ``(12) Indian.--The term `Indian' means an individual who 
     is a member of an Indian tribe.
       ``(13) Indian tribe.--The term `Indian tribe' means any 
     Federal or State Indian tribe, band, rancheria, pueblo, 
     colony, or community, including any Alaska Native village or 
     regional village corporation (as defined in or established 
     under the Alaska Native Claims Settlement Act (43 U.S.C. 1601 
     et seq.)).
       ``(14) Individualized education program; IEP.--The term 
     `individualized education program' or `IEP' means a written 
     statement for each child with a disability that is developed, 
     reviewed, and revised in accordance with section 614(d).
       ``(15) Individualized family service plan.--The term 
     `individualized family service plan' has the meaning given 
     the term in section 636.
       ``(16) Infant or toddler with a disability.--The term 
     `infant or toddler with a disability' has the meaning given 
     the term in section 632.
       ``(17) Institution of higher education.--The term 
     `institution of higher education'--
       ``(A) has the meaning given the term in section 101 of the 
     Higher Education Act of 1965; and
       ``(B) also includes any community college receiving funding 
     from the Secretary of the Interior under the Tribally 
     Controlled College or University Assistance Act of 1978.
       ``(18) Limited english proficient.--The term `limited 
     English proficient' has the meaning given the term in section 
     9101 of the Elementary and Secondary Education Act of 1965.
       ``(19) Local educational agency.--
       ``(A) In general.--The term `local educational agency' 
     means a public board of education or other public authority 
     legally constituted within a State for either administrative 
     control or direction of, or to perform a service function 
     for, public elementary schools or secondary schools in a 
     city, county, township, school district, or other political 
     subdivision of a State, or for such combination of school 
     districts or counties as are recognized in a State as an 
     administrative agency for its public elementary schools or 
     secondary schools.
       ``(B) Educational service agencies and other public 
     institutions or agencies.--The term includes--
       ``(i) an educational service agency; and
       ``(ii) any other public institution or agency having 
     administrative control and direction of a public elementary 
     school or secondary school.
       ``(C) BIA funded schools.--The term includes an elementary 
     school or secondary school funded by the Bureau of Indian 
     Affairs, but only to the extent that such inclusion makes the 
     school eligible for programs for which specific eligibility 
     is not provided to the school in another provision of law and 
     the school does not have a student population that is smaller 
     than the student population of the local educational agency 
     receiving assistance under this title with the smallest 
     student population, except that the school shall not be 
     subject to the jurisdiction of any State educational agency 
     other than the Bureau of Indian Affairs.
       ``(20) Native language.--The term `native language', when 
     used with respect to an individual who is limited English 
     proficient, means the language normally used by the 
     individual or, in the case of a child, the language normally 
     used by the parents of the child.
       ``(21) Nonprofit.--The term `nonprofit', as applied to a 
     school, agency, organization, or institution, means a school, 
     agency, organization, or institution owned and operated by 1 
     or more nonprofit corporations or associations no part of the 
     net earnings of which inures, or may lawfully inure, to the 
     benefit of any private shareholder or individual.
       ``(22) Outlying area.--The term `outlying area' means the 
     United States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands.
       ``(23) Parent.--The term `parent' means--
       ``(A) a natural, adoptive, or foster parent of a child 
     (unless a foster parent is prohibited by State law from 
     serving as a parent);
       ``(B) a guardian (but not the State if the child is a ward 
     of the State);
       ``(C) an individual acting in the place of a natural or 
     adoptive parent (including a grandparent, stepparent, or 
     other relative) with whom the child lives, or an individual 
     who is legally responsible for the child's welfare; or
       ``(D) except as used in sections 615(b)(2) and 639(a)(5), 
     an individual assigned under either of those sections to be a 
     surrogate parent.
       ``(24) Parent organization.--The term `parent organization' 
     has the meaning given the term in section 671(g).
       ``(25) Parent training and information center.--The term 
     `parent training and information center' means a center 
     assisted under section 671 or 672.
       ``(26) Related services.--
       ``(A) In general.--The term `related services' means 
     transportation, and such developmental, corrective, and other 
     supportive services (including speech-language pathology and 
     audiology services, interpreting services, psychological 
     services, physical and occupational therapy, recreation, 
     including therapeutic recreation, social work services, 
     school nurse services designed to enable a child with a 
     disability to receive a free appropriate public education as 
     described in the individualized education program of the 
     child, counseling services, including rehabilitation 
     counseling, orientation and mobility services, and medical 
     services, except that such medical services shall be for 
     diagnostic and evaluation purposes only) as may be required 
     to assist a child with a disability to benefit from special 
     education, and includes the early identification and 
     assessment of disabling conditions in children.
       ``(B) Exception.--The term does not include a medical 
     device that is surgically implanted, or the replacement of 
     such device.
       ``(27) Secondary school.--The term `secondary school' means 
     a nonprofit institutional day or residential school, 
     including a public secondary charter school, that provides 
     secondary education, as determined under State law, except 
     that it does not include any education beyond grade 12.
       ``(28) Secretary.--The term `Secretary' means the Secretary 
     of Education.
       ``(29) Special education.--The term `special education' 
     means specially designed instruction, at no cost to parents, 
     to meet the unique needs of a child with a disability, 
     including--
       ``(A) instruction conducted in the classroom, in the home, 
     in hospitals and institutions, and in other settings; and
       ``(B) instruction in physical education.
       ``(30) Specific learning disability.--
       ``(A) In general.--The term `specific learning disability' 
     means a disorder in 1 or more of the

[[Page H9898]]

     basic psychological processes involved in understanding or in 
     using language, spoken or written, which disorder may 
     manifest itself in the imperfect ability to listen, think, 
     speak, read, write, spell, or do mathematical calculations.
       ``(B) Disorders included.--Such term includes such 
     conditions as perceptual disabilities, brain injury, minimal 
     brain dysfunction, dyslexia, and developmental aphasia.
       ``(C) Disorders not included.--Such term does not include a 
     learning problem that is primarily the result of visual, 
     hearing, or motor disabilities, of mental retardation, of 
     emotional disturbance, or of environmental, cultural, or 
     economic disadvantage.
       ``(31) State.--The term `State' means each of the 50 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, and each of the outlying areas.
       ``(32) State educational agency.--The term `State 
     educational agency' means the State board of education or 
     other agency or officer primarily responsible for the State 
     supervision of public elementary schools and secondary 
     schools, or, if there is no such officer or agency, an 
     officer or agency designated by the Governor or by State law.
       ``(33) Supplementary aids and services.--The term 
     `supplementary aids and services' means aids, services, and 
     other supports that are provided in regular education classes 
     or other education-related settings to enable children with 
     disabilities to be educated with nondisabled children to the 
     maximum extent appropriate in accordance with section 
     612(a)(5).
       ``(34) Transition services.--The term `transition services' 
     means a coordinated set of activities for a child with a 
     disability that--
       ``(A) is designed to be within a results-oriented process, 
     that is focused on improving the academic and functional 
     achievement of the child with a disability to facilitate the 
     child's movement from school to post-school activities, 
     including post-secondary education, vocational education, 
     integrated employment (including supported employment), 
     continuing and adult education, adult services, independent 
     living, or community participation;
       ``(B) is based on the individual child's needs, taking into 
     account the child's strengths, preferences, and interests; 
     and
       ``(C) includes instruction, related services, community 
     experiences, the development of employment and other post-
     school adult living objectives, and, when appropriate, 
     acquisition of daily living skills and functional vocational 
     evaluation.
       ``(35) Universal design.--The term `universal design' has 
     the meaning given the term in section 3 of the Assistive 
     Technology Act of 1998 (29 U.S.C. 3002).
       ``(36) Ward of the state.--
       ``(A) In general.--The term `ward of the State' means a 
     child who, as determined by the State where the child 
     resides, is a foster child, is a ward of the State, or is in 
     the custody of a public child welfare agency.
       ``(B) Exception.--The term does not include a foster child 
     who has a foster parent who meets the definition of a parent 
     in paragraph (23).

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

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

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

       ``(a) In General.--A State shall not be immune under the 
     11th amendment to the Constitution of the United States from 
     suit in Federal court for a violation of this title.
       ``(b) Remedies.--In a suit against a State for a violation 
     of this title, remedies (including remedies both at law and 
     in equity) are available for such a violation to the same 
     extent as those remedies are available for such a violation 
     in the suit against any public entity other than a State.
       ``(c) Effective Date.--Subsections (a) and (b) apply with 
     respect to violations that occur in whole or part after the 
     date of enactment of the Education of the Handicapped Act 
     Amendments of 1990.

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

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

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

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

     ``SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

       ``(a) In General.--In carrying out the provisions of this 
     title, the Secretary shall issue regulations under this title 
     only to the extent that such regulations are necessary to 
     ensure that there is compliance with the specific 
     requirements of this title.
       ``(b) Protections Provided to Children.--The Secretary may 
     not implement, or publish in final form, any regulation 
     prescribed pursuant to this title that--
       ``(1) violates or contradicts any provision of this title; 
     or
       ``(2) procedurally or substantively lessens the protections 
     provided to children with disabilities under this title, as 
     embodied in regulations in effect on July 20, 1983 
     (particularly as such protections related to parental consent 
     to initial evaluation or initial placement in special 
     education, least restrictive environment, related services, 
     timelines, attendance of evaluation personnel at 
     individualized education program meetings, or qualifications 
     of personnel), except to the extent that such regulation 
     reflects the clear and unequivocal intent of Congress in 
     legislation.
       ``(c) Public Comment Period.--The Secretary shall provide a 
     public comment period of not less than 75 days on any 
     regulation proposed under part B or part C on which an 
     opportunity for public comment is otherwise required by law.
       ``(d) Policy Letters and Statements.--The Secretary may not 
     issue policy letters or other statements (including letters 
     or statements regarding issues of national significance) 
     that--
       ``(1) violate or contradict any provision of this title; or
       ``(2) establish a rule that is required for compliance 
     with, and eligibility under, this title without following the 
     requirements of section 553 of title 5, United States Code.
       ``(e) Explanation and Assurances.--Any written response by 
     the Secretary under subsection (d) regarding a policy, 
     question, or interpretation under part B shall include an 
     explanation in the written response that--
       ``(1) such response is provided as informal guidance and is 
     not legally binding;
       ``(2) when required, such response is issued in compliance 
     with the requirements of section 553 of title 5, United 
     States Code; and
       ``(3) such response represents the interpretation by the 
     Department of Education of the applicable statutory or 
     regulatory requirements in the context of the specific facts 
     presented.
       ``(f) Correspondence From Department of Education 
     Describing Interpretations of This Title.--
       ``(1) In general.--The Secretary shall, on a quarterly 
     basis, publish in the Federal Register, and widely 
     disseminate to interested entities through various additional 
     forms of communication, a list of correspondence from the 
     Department of Education received by individuals during the 
     previous quarter that describes the interpretations of the 
     Department of Education of this title or the regulations 
     implemented pursuant to this title.
       ``(2) Additional information.--For each item of 
     correspondence published in a list under paragraph (1), the 
     Secretary shall--
       ``(A) identify the topic addressed by the correspondence 
     and shall include such other summary information as the 
     Secretary determines to be appropriate; and
       ``(B) ensure that all such correspondence is issued, where 
     applicable, in compliance with the requirements of section 
     553 of title 5, United States Code.

     ``SEC. 608. STATE ADMINISTRATION.

       ``(a) Rulemaking.--Each State that receives funds under 
     this title shall--
       ``(1) ensure that any State rules, regulations, and 
     policies relating to this title conform to the purposes of 
     this title;
       ``(2) identify in writing to local educational agencies 
     located in the State and the Secretary any such rule, 
     regulation, or policy as a State-imposed requirement that is 
     not required by this title and Federal regulations; and
       ``(3) minimize the number of rules, regulations, and 
     policies to which the local educational agencies and schools 
     located in the State are subject under this title.
       ``(b) Support and Facilitation.--State rules, regulations, 
     and policies under this title shall support and facilitate 
     local educational agency and school-level system improvement 
     designed to enable children with disabilities to meet the 
     challenging State student academic achievement standards.

     ``SEC. 609. PAPERWORK REDUCTION.

       ``(a) Pilot Program.--
       ``(1) Purpose.--The purpose of this section is to provide 
     an opportunity for States to identify ways to reduce 
     paperwork burdens and other administrative duties that are 
     directly associated with the requirements of this title, in 
     order to increase the time and resources available for 
     instruction and other activities aimed at improving 
     educational and functional results for children with 
     disabilities.
       ``(2) Authorization.--
       ``(A) In general.--In order to carry out the purpose of 
     this section, the Secretary is authorized to grant waivers of 
     statutory requirements of, or regulatory requirements 
     relating to, part B for a period of time not to exceed 4 
     years with respect to not more than 15 States based on 
     proposals submitted by States to reduce excessive paperwork 
     and noninstructional time burdens that do not assist in 
     improving educational and functional results for children 
     with disabilities.

[[Page H9899]]

       ``(B) Exception.--The Secretary shall not waive under this 
     section any statutory requirements of, or regulatory 
     requirements relating to, applicable civil rights 
     requirements.
       ``(C) Rule of construction.--Nothing in this section shall 
     be construed to--
       ``(i) affect the right of a child with a disability to 
     receive a free appropriate public education under part B; and
       ``(ii) permit a State or local educational agency to waive 
     procedural safeguards under section 615.
       ``(3) Proposal.--
       ``(A) In general.--A State desiring to participate in the 
     program under this section shall submit a proposal to the 
     Secretary at such time and in such manner as the Secretary 
     may reasonably require.
       ``(B) Content.--The proposal shall include--
       ``(i) a list of any statutory requirements of, or 
     regulatory requirements relating to, part B that the State 
     desires the Secretary to waive, in whole or in part; and
       ``(ii) a list of any State requirements that the State 
     proposes to waive or change, in whole or in part, to carry 
     out a waiver granted to the State by the Secretary.
       ``(4) Termination of waiver.--The Secretary shall terminate 
     a State's waiver under this section if the Secretary 
     determines that the State--
       ``(A) needs assistance under section 616(d)(2)(A)(ii) and 
     that the waiver has contributed to or caused such need for 
     assistance;
       ``(B) needs intervention under section 616(d)(2)(A)(iii) or 
     needs substantial intervention under section 
     616(d)(2)(A)(iv); or
       ``(C) failed to appropriately implement its waiver.
       ``(b) Report.--Beginning 2 years after the date of 
     enactment of the Individuals with Disabilities Education 
     Improvement Act of 2004, the Secretary shall include in the 
     annual report to Congress submitted pursuant to section 426 
     of the Department of Education Organization Act information 
     related to the effectiveness of waivers granted under 
     subsection (a), including any specific recommendations for 
     broader implementation of such waivers, in--
       ``(1) reducing--
       ``(A) the paperwork burden on teachers, principals, 
     administrators, and related service providers; and
       ``(B) noninstructional time spent by teachers in complying 
     with part B;
       ``(2) enhancing longer-term educational planning;
       ``(3) improving positive outcomes for children with 
     disabilities;
       ``(4) promoting collaboration between IEP Team members; and
       ``(5) ensuring satisfaction of family members.

     ``SEC. 610. FREELY ASSOCIATED STATES.

       ``The Republic of the Marshall Islands, the Federated 
     States of Micronesia, and the Republic of Palau shall 
     continue to be eligible for competitive grants administered 
     by the Secretary under this title to the extent that such 
     grants continue to be available to States and local 
     educational agencies under this title.
  ``PART B--ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES

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

       ``(a) Grants to States.--
       ``(1) Purpose of grants.--The Secretary shall make grants 
     to States, outlying areas, and freely associated States, and 
     provide funds to the Secretary of the Interior, to assist 
     them to provide special education and related services to 
     children with disabilities in accordance with this part.
       ``(2) Maximum amount.--The maximum amount of the grant a 
     State may receive under this section--
       ``(A) for fiscal years 2005 and 2006 is--
       ``(i) the number of children with disabilities in the State 
     who are receiving special education and related services--

       ``(I) aged 3 through 5 if the State is eligible for a grant 
     under section 619; and
       ``(II) aged 6 through 21; multiplied by

       ``(ii) 40 percent of the average per-pupil expenditure in 
     public elementary schools and secondary schools in the United 
     States; and
       ``(B) for fiscal year 2007 and subsequent fiscal years is--
       ``(i) the number of children with disabilities in the 2004-
     2005 school year in the State who received special education 
     and related services--

       ``(I) aged 3 through 5 if the State is eligible for a grant 
     under section 619; and
       ``(II) aged 6 through 21; multiplied by

       ``(ii) 40 percent of the average per-pupil expenditure in 
     public elementary schools and secondary schools in the United 
     States; adjusted by
       ``(iii) the rate of annual change in the sum of--

       ``(I) 85 percent of such State's population described in 
     subsection (d)(3)(A)(i)(II); and
       ``(II) 15 percent of such State's population described in 
     subsection (d)(3)(A)(i)(III).

       ``(b) Outlying Areas and Freely Associated States; 
     Secretary of the Interior.--
       ``(1) Outlying areas and freely associated states.--
       ``(A) Funds reserved.--From the amount appropriated for any 
     fiscal year under subsection (i), the Secretary shall reserve 
     not more than 1 percent, which shall be used--
       ``(i) to provide assistance to the outlying areas in 
     accordance with their respective populations of individuals 
     aged 3 through 21; and
       ``(ii) to provide each freely associated State a grant in 
     the amount that such freely associated State received for 
     fiscal year 2003 under this part, but only if the freely 
     associated State meets the applicable requirements of this 
     part, as well as the requirements of section 611(b)(2)(C) as 
     such section was in effect on the day before the date of 
     enactment of the Individuals with Disabilities Education 
     Improvement Act of 2004.
       ``(B) Special rule.--The provisions of Public Law 95-134, 
     permitting the consolidation of grants by the outlying areas, 
     shall not apply to funds provided to the outlying areas or 
     the freely associated States under this section.
       ``(C) Definition.--In this paragraph, the term `freely 
     associated States' means the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.
       ``(2) Secretary of the interior.--From the amount 
     appropriated for any fiscal year under subsection (i), the 
     Secretary shall reserve 1.226 percent to provide assistance 
     to the Secretary of the Interior in accordance with 
     subsection (h).
       ``(c) Technical Assistance.--
       ``(1) In general.--The Secretary may reserve not more than 
     \1/2\ of 1 percent of the amounts appropriated under this 
     part for each fiscal year to provide technical assistance 
     activities authorized under section 616(i).
       ``(2) Maximum amount.--The maximum amount the Secretary may 
     reserve under paragraph (1) for any fiscal year is 
     $25,000,000, cumulatively adjusted by the rate of inflation 
     as measured by the percentage increase, if any, from the 
     preceding fiscal year in the Consumer Price Index For All 
     Urban Consumers, published by the Bureau of Labor Statistics 
     of the Department of Labor.
       ``(d) Allocations to States.--
       ``(1) In general.--After reserving funds for technical 
     assistance, and for payments to the outlying areas, the 
     freely associated States, and the Secretary of the Interior 
     under subsections (b) and (c) for a fiscal year, the 
     Secretary shall allocate the remaining amount among the 
     States in accordance with this subsection.
       ``(2) Special rule for use of fiscal year 1999 amount.--If 
     a State received any funds under this section for fiscal year 
     1999 on the basis of children aged 3 through 5, but does not 
     make a free appropriate public education available to all 
     children with disabilities aged 3 through 5 in the State in 
     any subsequent fiscal year, the Secretary shall compute the 
     State's amount for fiscal year 1999, solely for the purpose 
     of calculating the State's allocation in that subsequent year 
     under paragraph (3) or (4), by subtracting the amount 
     allocated to the State for fiscal year 1999 on the basis of 
     those children.
       ``(3) Increase in funds.--If the amount available for 
     allocations to States under paragraph (1) for a fiscal year 
     is equal to or greater than the amount allocated to the 
     States under this paragraph for the preceding fiscal year, 
     those allocations shall be calculated as follows:
       ``(A) Allocation of increase.--
       ``(i) In general.--Except as provided in subparagraph (B), 
     the Secretary shall allocate for the fiscal year--

       ``(I) to each State the amount the State received under 
     this section for fiscal year 1999;
       ``(II) 85 percent of any remaining funds to States on the 
     basis of the States' relative populations of children aged 3 
     through 21 who are of the same age as children with 
     disabilities for whom the State ensures the availability of a 
     free appropriate public education under this part; and
       ``(III) 15 percent of those remaining funds to States on 
     the basis of the States' relative populations of children 
     described in subclause (II) who are living in poverty.

       ``(ii) Data.--For the purpose of making grants under this 
     paragraph, the Secretary shall use the most recent population 
     data, including data on children living in poverty, that are 
     available and satisfactory to the Secretary.
       ``(B) Limitations.--Notwithstanding subparagraph (A), 
     allocations under this paragraph shall be subject to the 
     following:
       ``(i) Preceding year allocation.--No State's allocation 
     shall be less than its allocation under this section for the 
     preceding fiscal year.
       ``(ii) Minimum.--No State's allocation shall be less than 
     the greatest of--

       ``(I) the sum of--

       ``(aa) the amount the State received under this section for 
     fiscal year 1999; and
       ``(bb) \1/3\ of 1 percent of the amount by which the amount 
     appropriated under subsection (i) for the fiscal year exceeds 
     the amount appropriated for this section for fiscal year 
     1999;

       ``(II) the sum of--

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

       ``(III) the sum of--

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

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

       ``(C) Ratable reduction.--If the amount available for 
     allocations under this paragraph is insufficient to pay those 
     allocations in full, those allocations shall be ratably 
     reduced, subject to subparagraph (B)(i).
       ``(4) Decrease in funds.--If the amount available for 
     allocations to States under paragraph (1) for a fiscal year 
     is less than the amount allocated to the States under this 
     section for the preceding fiscal year, those allocations 
     shall be calculated as follows:
       ``(A) Amounts greater than fiscal year 1999 allocations.--
     If the amount available for allocations is greater than the 
     amount allocated to the States for fiscal year 1999, each 
     State shall be allocated the sum of--

[[Page H9900]]

       ``(i) the amount the State received under this section for 
     fiscal year 1999; and
       ``(ii) an amount that bears the same relation to any 
     remaining funds as the increase the State received under this 
     section for the preceding fiscal year over fiscal year 1999 
     bears to the total of all such increases for all States.
       ``(B) Amounts equal to or less than fiscal year 1999 
     allocations.--
       ``(i) In general.--If the amount available for allocations 
     under this paragraph is equal to or less than the amount 
     allocated to the States for fiscal year 1999, each State 
     shall be allocated the amount the State received for fiscal 
     year 1999.
       ``(ii) Ratable reduction.--If the amount available for 
     allocations under this paragraph is insufficient to make the 
     allocations described in clause (i), those allocations shall 
     be ratably reduced.
       ``(e) State-Level Activities.--
       ``(1) State administration.--
       ``(A) In general.--For the purpose of administering this 
     part, including paragraph (3), section 619, and the 
     coordination of activities under this part with, and 
     providing technical assistance to, other programs that 
     provide services to children with disabilities--
       ``(i) each State may reserve for each fiscal year not more 
     than the maximum amount the State was eligible to reserve for 
     State administration under this section for fiscal year 2004 
     or $800,000 (adjusted in accordance with subparagraph (B)), 
     whichever is greater; and
       ``(ii) each outlying area may reserve for each fiscal year 
     not more than 5 percent of the amount the outlying area 
     receives under subsection (b)(1) for the fiscal year or 
     $35,000, whichever is greater.
       ``(B) Cumulative annual adjustments.--For each fiscal year 
     beginning with fiscal year 2005, the Secretary shall 
     cumulatively adjust--
       ``(i) the maximum amount the State was eligible to reserve 
     for State administration under this part for fiscal year 
     2004; and
       ``(ii) $800,000,
     by the rate of inflation as measured by the percentage 
     increase, if any, from the preceding fiscal year in the 
     Consumer Price Index For All Urban Consumers, published by 
     the Bureau of Labor Statistics of the Department of Labor.
       ``(C) Certification.--Prior to expenditure of funds under 
     this paragraph, the State shall certify to the Secretary that 
     the arrangements to establish responsibility for services 
     pursuant to section 612(a)(12)(A) are current.
       ``(D) Part C.--Funds reserved under subparagraph (A) may be 
     used for the administration of part C, if the State 
     educational agency is the lead agency for the State under 
     such part.
       ``(2) Other state-level activities.--
       ``(A) State-level activities.--
       ``(i) In general.--Except as provided in clause (iii), for 
     the purpose of carrying out State-level activities, each 
     State may reserve for each of the fiscal years 2005 and 2006 
     not more than 10 percent from the amount of the State's 
     allocation under subsection (d) for each of the fiscal years 
     2005 and 2006, respectively. For fiscal year 2007 and each 
     subsequent fiscal year, the State may reserve the maximum 
     amount the State was eligible to reserve under the preceding 
     sentence for fiscal year 2006 (cumulatively adjusted by the 
     rate of inflation as measured by the percentage increase, if 
     any, from the preceding fiscal year in the Consumer Price 
     Index For All Urban Consumers, published by the Bureau of 
     Labor Statistics of the Department of Labor).
       ``(ii) Small state adjustment.--Notwithstanding clause (i) 
     and except as provided in clause (iii), in the case of a 
     State for which the maximum amount reserved for State 
     administration is not greater than $850,000, the State may 
     reserve for the purpose of carrying out State-level 
     activities for each of the fiscal years 2005 and 2006, not 
     more than 10.5 percent from the amount of the State's 
     allocation under subsection (d) for each of the fiscal years 
     2005 and 2006, respectively. For fiscal year 2007 and each 
     subsequent fiscal year, such State may reserve the maximum 
     amount the State was eligible to reserve under the preceding 
     sentence for fiscal year 2006 (cumulatively adjusted by the 
     rate of inflation as measured by the percentage increase, if 
     any, from the preceding fiscal year in the Consumer Price 
     Index For All Urban Consumers, published by the Bureau of 
     Labor Statistics of the Department of Labor).
       ``(iii) Exception.--If a State does not reserve funds under 
     paragraph (3) for a fiscal year, then--

       ``(I) in the case of a State that is not described in 
     clause (ii), for fiscal year 2005 or 2006, clause (i) shall 
     be applied by substituting `9.0 percent' for `10 percent'; 
     and
       ``(II) in the case of a State that is described in clause 
     (ii), for fiscal year 2005 or 2006, clause (ii) shall be 
     applied by substituting `9.5 percent' for `10.5 percent'.

       ``(B) Required activities.--Funds reserved under 
     subparagraph (A) shall be used to carry out the following 
     activities:
       ``(i) For monitoring, enforcement, and complaint 
     investigation.
       ``(ii) To establish and implement the mediation process 
     required by section 615(e), including providing for the cost 
     of mediators and support personnel.
       ``(C) Authorized activities.--Funds reserved under 
     subparagraph (A) may be used to carry out the following 
     activities:
       ``(i) For support and direct services, including technical 
     assistance, personnel preparation, and professional 
     development and training.
       ``(ii) To support paperwork reduction activities, including 
     expanding the use of technology in the IEP process.
       ``(iii) To assist local educational agencies in providing 
     positive behavioral interventions and supports and 
     appropriate mental health services for children with 
     disabilities.
       ``(iv) To improve the use of technology in the classroom by 
     children with disabilities to enhance learning.
       ``(v) To support the use of technology, including 
     technology with universal design principles and assistive 
     technology devices, to maximize accessibility to the general 
     education curriculum for children with disabilities.
       ``(vi) Development and implementation of transition 
     programs, including coordination of services with agencies 
     involved in supporting the transition of children with 
     disabilities to postsecondary activities.
       ``(vii) To assist local educational agencies in meeting 
     personnel shortages.
       ``(viii) To support capacity building activities and 
     improve the delivery of services by local educational 
     agencies to improve results for children with disabilities.
       ``(ix) Alternative programming for children with 
     disabilities who have been expelled from school, and services 
     for children with disabilities in correctional facilities, 
     children enrolled in State-operated or State-supported 
     schools, and children with disabilities in charter schools.
       ``(x) To support the development and provision of 
     appropriate accommodations for children with disabilities, or 
     the development and provision of alternate assessments that 
     are valid and reliable for assessing the performance of 
     children with disabilities, in accordance with sections 
     1111(b) and 6111 of the Elementary and Secondary Education 
     Act of 1965.
       ``(xi) To provide technical assistance to schools and local 
     educational agencies, and direct services, including 
     supplemental educational services as defined in 1116(e) of 
     the Elementary and Secondary Education Act of 1965 to 
     children with disabilities, in schools or local educational 
     agencies identified for improvement under section 1116 of the 
     Elementary and Secondary Education Act of 1965 on the sole 
     basis of the assessment results of the disaggregated subgroup 
     of children with disabilities, including providing 
     professional development to special and regular education 
     teachers, who teach children with disabilities, based on 
     scientifically based research to improve educational 
     instruction, in order to improve academic achievement to meet 
     or exceed the objectives established by the State under 
     section 1111(b)(2)(G) the Elementary and Secondary Education 
     Act of 1965.
       ``(3) Local educational agency risk pool.--
       ``(A) In general.--
       ``(i) Reservation of funds.--For the purpose of assisting 
     local educational agencies (including a charter school that 
     is a local educational agency or a consortium of local 
     educational agencies) in addressing the needs of high need 
     children with disabilities, each State shall have the option 
     to reserve for each fiscal year 10 percent of the amount of 
     funds the State reserves for State-level activities under 
     paragraph (2)(A)--

       ``(I) to establish and make disbursements from the high 
     cost fund to local educational agencies in accordance with 
     this paragraph during the first and succeeding fiscal years 
     of the high cost fund; and
       ``(II) to support innovative and effective ways of cost 
     sharing by the State, by a local educational agency, or among 
     a consortium of local educational agencies, as determined by 
     the State in coordination with representatives from local 
     educational agencies, subject to subparagraph (B)(ii).

       ``(ii) Definition of local educational agency.--In this 
     paragraph the term `local educational agency' includes a 
     charter school that is a local educational agency, or a 
     consortium of local educational agencies.
       ``(B) Limitation on uses of funds.--
       ``(i) Establishment of high cost fund.--A State shall not 
     use any of the funds the State reserves pursuant to 
     subparagraph (A)(i), but may use the funds the State reserves 
     under paragraph (1), to establish and support the high cost 
     fund.
       ``(ii) Innovative and effective cost sharing.--A State 
     shall not use more than 5 percent of the funds the State 
     reserves pursuant to subparagraph (A)(i) for each fiscal year 
     to support innovative and effective ways of cost sharing 
     among consortia of local educational agencies.
       ``(C) State plan for high cost fund.--
       ``(i) Definition.--The State educational agency shall 
     establish the State's definition of a high need child with a 
     disability, which definition shall be developed in 
     consultation with local educational agencies.
       ``(ii) State plan.--The State educational agency shall 
     develop, not later than 90 days after the State reserves 
     funds under this paragraph, annually review, and amend as 
     necessary, a State plan for the high cost fund. Such State 
     plan shall--

       ``(I) establish, in coordination with representatives from 
     local educational agencies, a definition of a high need child 
     with a disability that, at a minimum--

       ``(aa) addresses the financial impact a high need child 
     with a disability has on the budget of the child's local 
     educational agency; and
       ``(bb) ensures that the cost of the high need child with a 
     disability is greater than 3 times the average per pupil 
     expenditure (as defined in section 9101 of the Elementary and 
     Secondary Education Act of 1965) in that State;

       ``(II) establish eligibility criteria for the participation 
     of a local educational agency that, at a minimum, takes into 
     account the number and percentage of high need children with 
     disabilities served by a local educational agency;
       ``(III) develop a funding mechanism that provides 
     distributions each fiscal year to local educational agencies 
     that meet the criteria developed by the State under subclause 
     (II); and
       ``(IV) establish an annual schedule by which the State 
     educational agency shall make its distributions from the high 
     cost fund each fiscal year.

       ``(iii) Public availability.--The State shall make its 
     final State plan publicly available not

[[Page H9901]]

     less than 30 days before the beginning of the school year, 
     including dissemination of such information on the State 
     website.
       ``(D) Disbursements from the high cost fund.--
       ``(i) In general.--Each State educational agency shall make 
     all annual disbursements from the high cost fund established 
     under subparagraph (A)(i) in accordance with the State plan 
     published pursuant to subparagraph (C).
       ``(ii) Use of disbursements.--Each State educational agency 
     shall make annual disbursements to eligible local educational 
     agencies in accordance with its State plan under subparagraph 
     (C)(ii).
       ``(iii) Appropriate costs.--The costs associated with 
     educating a high need child with a disability under 
     subparagraph (C)(i) are only those costs associated with 
     providing direct special education and related services to 
     such child that are identified in such child's IEP.
       ``(E) Legal fees.--The disbursements under subparagraph (D) 
     shall not support legal fees, court costs, or other costs 
     associated with a cause of action brought on behalf of a 
     child with a disability to ensure a free appropriate public 
     education for such child.
       ``(F) Assurance of a free appropriate public education.--
     Nothing in this paragraph shall be construed--
       ``(i) to limit or condition the right of a child with a 
     disability who is assisted under this part to receive a free 
     appropriate public education pursuant to section 612(a)(1) in 
     the least restrictive environment pursuant to section 
     612(a)(5); or
       ``(ii) to authorize a State educational agency or local 
     educational agency to establish a limit on what may be spent 
     on the education of a child with a disability.
       ``(G) Special rule for risk pool and high need assistance 
     programs in effect as of january 1, 2004.--Notwithstanding 
     the provisions of subparagraphs (A) through (F), a State may 
     use funds reserved pursuant to this paragraph for 
     implementing a placement neutral cost sharing and 
     reimbursement program of high need, low incidence, 
     catastrophic, or extraordinary aid to local educational 
     agencies that provides services to high need students based 
     on eligibility criteria for such programs that were created 
     not later than January 1, 2004, and are currently in 
     operation, if such program serves children that meet the 
     requirement of the definition of a high need child with a 
     disability as described in subparagraph (C)(ii)(I).
       ``(H) Medicaid services not affected.--Disbursements 
     provided under this paragraph shall not be used to pay costs 
     that otherwise would be reimbursed as medical assistance for 
     a child with a disability under the State medicaid program 
     under title XIX of the Social Security Act.
       ``(I) Remaining funds.--Funds reserved under subparagraph 
     (A) in any fiscal year but not expended in that fiscal year 
     pursuant to subparagraph (D) shall be allocated to local 
     educational agencies for the succeeding fiscal year in the 
     same manner as funds are allocated to local educational 
     agencies under subsection (f) for the succeeding fiscal year.
       ``(4) Inapplicability of certain prohibitions.--A State may 
     use funds the State reserves under paragraphs (1) and (2) 
     without regard to--
       ``(A) the prohibition on commingling of funds in section 
     612(a)(17)(B); and
       ``(B) the prohibition on supplanting other funds in section 
     612(a)(17)(C).
       ``(5) Report on use of funds.--As part of the information 
     required to be submitted to the Secretary under section 612, 
     each State shall annually describe how amounts under this 
     section--
       ``(A) will be used to meet the requirements of this title; 
     and
       ``(B) will be allocated among the activities described in 
     this section to meet State priorities based on input from 
     local educational agencies.
       ``(6) Special rule for increased funds.--A State may use 
     funds the State reserves under paragraph (1)(A) as a result 
     of inflationary increases under paragraph (1)(B) to carry out 
     activities authorized under clause (i), (iii), (vii), or 
     (viii) of paragraph (2)(C).
       ``(7) Flexibility in using funds for part c.--Any State 
     eligible to receive a grant under section 619 may use funds 
     made available under paragraph (1)(A), subsection (f)(3), or 
     section 619(f)(5) to develop and implement a State policy 
     jointly with the lead agency under part C and the State 
     educational agency to provide early intervention services 
     (which shall include an educational component that promotes 
     school readiness and incorporates preliteracy, language, and 
     numeracy skills) in accordance with part C to children with 
     disabilities who are eligible for services under section 619 
     and who previously received services under part C until such 
     children enter, or are eligible under State law to enter, 
     kindergarten, or elementary school as appropriate.
       ``(f) Subgrants to Local Educational Agencies.--
       ``(1) Subgrants required.--Each State that receives a grant 
     under this section for any fiscal year shall distribute any 
     funds the State does not reserve under subsection (e) to 
     local educational agencies (including public charter schools 
     that operate as local educational agencies) in the State that 
     have established their eligibility under section 613 for use 
     in accordance with this part.
       ``(2) Procedure for allocations to local educational 
     agencies.--For each fiscal year for which funds are allocated 
     to States under subsection (d), each State shall allocate 
     funds under paragraph (1) as follows:
       ``(A) Base payments.--The State shall first award each 
     local educational agency described in paragraph (1) the 
     amount the local educational agency would have received under 
     this section for fiscal year 1999, if the State had 
     distributed 75 percent of its grant for that year under 
     section 611(d) as section 611(d) was then in effect.
       ``(B) Allocation of remaining funds.--After making 
     allocations under subparagraph (A), the State shall--
       ``(i) allocate 85 percent of any remaining funds to those 
     local educational agencies on the basis of the relative 
     numbers of children enrolled in public and private elementary 
     schools and secondary schools within the local educational 
     agency's jurisdiction; and
       ``(ii) allocate 15 percent of those remaining funds to 
     those local educational agencies in accordance with their 
     relative numbers of children living in poverty, as determined 
     by the State educational agency.
       ``(3) Reallocation of funds.--If a State educational agency 
     determines that a local educational agency is adequately 
     providing a free appropriate public education to all children 
     with disabilities residing in the area served by that local 
     educational agency with State and local funds, the State 
     educational agency may reallocate any portion of the funds 
     under this part that are not needed by that local educational 
     agency to provide a free appropriate public education to 
     other local educational agencies in the State that are not 
     adequately providing special education and related services 
     to all children with disabilities residing in the areas 
     served by those other local educational agencies.
       ``(g) Definitions.--In this section:
       ``(1) Average per-pupil expenditure in public elementary 
     schools and secondary schools in the united states.--The term 
     `average per-pupil expenditure in public elementary schools 
     and secondary schools in the United States' means--
       ``(A) without regard to the source of funds--
       ``(i) the aggregate current expenditures, during the second 
     fiscal year preceding the fiscal year for which the 
     determination is made (or, if satisfactory data for that year 
     are not available, during the most recent preceding fiscal 
     year for which satisfactory data are available) of all local 
     educational agencies in the 50 States and the District of 
     Columbia; plus
       ``(ii) any direct expenditures by the State for the 
     operation of those agencies; divided by
       ``(B) the aggregate number of children in average daily 
     attendance to whom those agencies provided free public 
     education during that preceding year.
       ``(2) State.--The term `State' means each of the 50 States, 
     the District of Columbia, and the Commonwealth of Puerto 
     Rico.
       ``(h) Use of Amounts by Secretary of the Interior.--
       ``(1) Provision of amounts for assistance.--
       ``(A) In general.--The Secretary of Education shall provide 
     amounts to the Secretary of the Interior to meet the need for 
     assistance for the education of children with disabilities on 
     reservations aged 5 to 21, inclusive, enrolled in elementary 
     schools and secondary schools for Indian children operated or 
     funded by the Secretary of the Interior. The amount of such 
     payment for any fiscal year shall be equal to 80 percent of 
     the amount allotted under subsection (b)(2) for that fiscal 
     year. Of the amount described in the preceding sentence--
       ``(i) 80 percent shall be allocated to such schools by July 
     1 of that fiscal year; and
       ``(ii) 20 percent shall be allocated to such schools by 
     September 30 of that fiscal year.
       ``(B) Calculation of number of children.--In the case of 
     Indian students aged 3 to 5, inclusive, who are enrolled in 
     programs affiliated with the Bureau of Indian Affairs 
     (referred to in this subsection as the `BIA') schools and 
     that are required by the States in which such schools are 
     located to attain or maintain State accreditation, and which 
     schools have such accreditation prior to the date of 
     enactment of the Individuals with Disabilities Education Act 
     Amendments of 1991, the school shall be allowed to count 
     those children for the purpose of distribution of the funds 
     provided under this paragraph to the Secretary of the 
     Interior. The Secretary of the Interior shall be responsible 
     for meeting all of the requirements of this part for those 
     children, in accordance with paragraph (2).
       ``(C) Additional requirement.--With respect to all other 
     children aged 3 to 21, inclusive, on reservations, the State 
     educational agency shall be responsible for ensuring that all 
     of the requirements of this part are implemented.
       ``(2) Submission of information.--The Secretary of 
     Education may provide the Secretary of the Interior amounts 
     under paragraph (1) for a fiscal year only if the Secretary 
     of the Interior submits to the Secretary of Education 
     information that--
       ``(A) demonstrates that the Department of the Interior 
     meets the appropriate requirements, as determined by the 
     Secretary of Education, of sections 612 (including monitoring 
     and evaluation activities) and 613;
       ``(B) includes a description of how the Secretary of the 
     Interior will coordinate the provision of services under this 
     part with local educational agencies, tribes and tribal 
     organizations, and other private and Federal service 
     providers;
       ``(C) includes an assurance that there are public hearings, 
     adequate notice of such hearings, and an opportunity for 
     comment afforded to members of tribes, tribal governing 
     bodies, and affected local school boards before the adoption 
     of the policies, programs, and procedures related to the 
     requirements described in subparagraph (A);
       ``(D) includes an assurance that the Secretary of the 
     Interior will provide such information as the Secretary of 
     Education may require to comply with section 618;
       ``(E) includes an assurance that the Secretary of the 
     Interior and the Secretary of Health and Human Services have 
     entered into a memorandum of agreement, to be provided to the 
     Secretary of Education, for the coordination of

[[Page H9902]]

     services, resources, and personnel between their respective 
     Federal, State, and local offices and with State and local 
     educational agencies and other entities to facilitate the 
     provision of services to Indian children with disabilities 
     residing on or near reservations (such agreement shall 
     provide for the apportionment of responsibilities and costs, 
     including child find, evaluation, diagnosis, remediation or 
     therapeutic measures, and (where appropriate) equipment and 
     medical or personal supplies as needed for a child to remain 
     in school or a program); and
       ``(F) includes an assurance that the Department of the 
     Interior will cooperate with the Department of Education in 
     its exercise of monitoring and oversight of this application, 
     and any agreements entered into between the Secretary of the 
     Interior and other entities under this part, and will fulfill 
     its duties under this part.
       ``(3) Applicability.--The Secretary shall withhold payments 
     under this subsection with respect to the information 
     described in paragraph (2) in the same manner as the 
     Secretary withholds payments under section 616(e)(6).
       ``(4) Payments for education and services for indian 
     children with disabilities aged 3 through 5.--
       ``(A) In general.--With funds appropriated under subsection 
     (i), the Secretary of Education shall make payments to the 
     Secretary of the Interior to be distributed to tribes or 
     tribal organizations (as defined under section 4 of the 
     Indian Self-Determination and Education Assistance Act) or 
     consortia of tribes or tribal organizations to provide for 
     the coordination of assistance for special education and 
     related services for children with disabilities aged 3 
     through 5 on reservations served by elementary schools and 
     secondary schools for Indian children operated or funded by 
     the Department of the Interior. The amount of such payments 
     under subparagraph (B) for any fiscal year shall be equal to 
     20 percent of the amount allotted under subsection (b)(2).
       ``(B) Distribution of funds.--The Secretary of the Interior 
     shall distribute the total amount of the payment under 
     subparagraph (A) by allocating to each tribe, tribal 
     organization, or consortium an amount based on the number of 
     children with disabilities aged 3 through 5 residing on 
     reservations as reported annually, divided by the total of 
     those children served by all tribes or tribal organizations.
       ``(C) Submission of information.--To receive a payment 
     under this paragraph, the tribe or tribal organization shall 
     submit such figures to the Secretary of the Interior as 
     required to determine the amounts to be allocated under 
     subparagraph (B). This information shall be compiled and 
     submitted to the Secretary of Education.
       ``(D) Use of funds.--The funds received by a tribe or 
     tribal organization shall be used to assist in child find, 
     screening, and other procedures for the early identification 
     of children aged 3 through 5, parent training, and the 
     provision of direct services. These activities may be carried 
     out directly or through contracts or cooperative agreements 
     with the BIA, local educational agencies, and other public or 
     private nonprofit organizations. The tribe or tribal 
     organization is encouraged to involve Indian parents in the 
     development and implementation of these activities. The tribe 
     or tribal organization shall, as appropriate, make referrals 
     to local, State, or Federal entities for the provision of 
     services or further diagnosis.
       ``(E) Biennial report.--To be eligible to receive a grant 
     pursuant to subparagraph (A), the tribe or tribal 
     organization shall provide to the Secretary of the Interior a 
     biennial report of activities undertaken under this 
     paragraph, including the number of contracts and cooperative 
     agreements entered into, the number of children contacted and 
     receiving services for each year, and the estimated number of 
     children needing services during the 2 years following the 
     year in which the report is made. The Secretary of the 
     Interior shall include a summary of this information on a 
     biennial basis in the report to the Secretary of Education 
     required under this subsection. The Secretary of Education 
     may require any additional information from the Secretary of 
     the Interior.
       ``(F) Prohibitions.--None of the funds allocated under this 
     paragraph may be used by the Secretary of the Interior for 
     administrative purposes, including child count and the 
     provision of technical assistance.
       ``(5) Plan for coordination of services.--The Secretary of 
     the Interior shall develop and implement a plan for the 
     coordination of services for all Indian children with 
     disabilities residing on reservations covered under this 
     title. Such plan shall provide for the coordination of 
     services benefiting those children from whatever source, 
     including tribes, the Indian Health Service, other BIA 
     divisions, and other Federal agencies. In developing the 
     plan, the Secretary of the Interior shall consult with all 
     interested and involved parties. The plan shall be based on 
     the needs of the children and the system best suited for 
     meeting those needs, and may involve the establishment of 
     cooperative agreements between the BIA, other Federal 
     agencies, and other entities. The plan shall also be 
     distributed upon request to States, State educational 
     agencies and local educational agencies, and other agencies 
     providing services to infants, toddlers, and children with 
     disabilities, to tribes, and to other interested parties.
       ``(6) Establishment of advisory board.--To meet the 
     requirements of section 612(a)(21), the Secretary of the 
     Interior shall establish, under the BIA, an advisory board 
     composed of individuals involved in or concerned with the 
     education and provision of services to Indian infants, 
     toddlers, children, and youth with disabilities, including 
     Indians with disabilities, Indian parents or guardians of 
     such children, teachers, service providers, State and local 
     educational officials, representatives of tribes or tribal 
     organizations, representatives from State Interagency 
     Coordinating Councils under section 641 in States having 
     reservations, and other members representing the various 
     divisions and entities of the BIA. The chairperson shall be 
     selected by the Secretary of the Interior. The advisory board 
     shall--
       ``(A) assist in the coordination of services within the BIA 
     and with other local, State, and Federal agencies in the 
     provision of education for infants, toddlers, and children 
     with disabilities;
       ``(B) advise and assist the Secretary of the Interior in 
     the performance of the Secretary of the Interior's 
     responsibilities described in this subsection;
       ``(C) develop and recommend policies concerning effective 
     inter- and intra-agency collaboration, including 
     modifications to regulations, and the elimination of barriers 
     to inter- and intra-agency programs and activities;
       ``(D) provide assistance and disseminate information on 
     best practices, effective program coordination strategies, 
     and recommendations for improved early intervention services 
     or educational programming for Indian infants, toddlers, and 
     children with disabilities; and
       ``(E) provide assistance in the preparation of information 
     required under paragraph (2)(D).
       ``(7) Annual reports.--
       ``(A) In general.--The advisory board established under 
     paragraph (6) shall prepare and submit to the Secretary of 
     the Interior and to Congress an annual report containing a 
     description of the activities of the advisory board for the 
     preceding year.
       ``(B) Availability.--The Secretary of the Interior shall 
     make available to the Secretary of Education the report 
     described in subparagraph (A).
       ``(i) Authorization of Appropriations.--For the purpose of 
     carrying out this part, other than section 619, there are 
     authorized to be appropriated--
       ``(1) $12,358,376,571 for fiscal year 2005;
       ``(2) $14,648,647,143 for fiscal year 2006;
       ``(3) $16,938,917,714 for fiscal year 2007;
       ``(4) $19,229,188,286 for fiscal year 2008;
       ``(5) $21,519,458,857 for fiscal year 2009;
       ``(6) $23,809,729,429 for fiscal year 2010;
       ``(7) $26,100,000,000 for fiscal year 2011; and
       ``(8) such sums as may be necessary for fiscal year 2012 
     and each succeeding fiscal year.

     ``SEC. 612. STATE ELIGIBILITY.

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

       ``(I) were not actually identified as being a child with a 
     disability under section 602; or
       ``(II) did not have an individualized education program 
     under this part.

       ``(C) State flexibility.--A State that provides early 
     intervention services in accordance with part C to a child 
     who is eligible for services under section 619, is not 
     required to provide such child with a free appropriate public 
     education.
       ``(2) Full educational opportunity goal.--The State has 
     established a goal of providing full educational opportunity 
     to all children with disabilities and a detailed timetable 
     for accomplishing that goal.
       ``(3) Child find.--
       ``(A) In general.--All children with disabilities residing 
     in the State, including children with disabilities who are 
     homeless children or are wards of the State and children with 
     disabilities attending private schools, regardless of the 
     severity of their disabilities, and who are in need of 
     special education and related services, are identified, 
     located, and evaluated and a practical method is developed 
     and implemented to determine which children with disabilities 
     are currently receiving needed special education and related 
     services.
       ``(B) Construction.--Nothing in this title requires that 
     children be classified by their disability so long as each 
     child who has a disability listed in section 602 and who, by 
     reason of that disability, needs special education and 
     related services is regarded as a child with a disability 
     under this part.
       ``(4) Individualized education program.--An individualized 
     education program, or an individualized family service plan 
     that meets the requirements of section 636(d), is developed, 
     reviewed, and revised for each child with a disability in 
     accordance with section 614(d).
       ``(5) Least restrictive environment.--
       ``(A) In general.--To the maximum extent appropriate, 
     children with disabilities, including children in public or 
     private institutions or other care facilities, are educated 
     with children who are not disabled, and special classes, 
     separate schooling, or other removal of children with

[[Page H9903]]

     disabilities from the regular educational environment occurs 
     only when the nature or severity of the disability of a child 
     is such that education in regular classes with the use of 
     supplementary aids and services cannot be achieved 
     satisfactorily.
       ``(B) Additional requirement.--
       ``(i) In general.--A State funding mechanism shall not 
     result in placements that violate the requirements of 
     subparagraph (A), and a State shall not use a funding 
     mechanism by which the State distributes funds on the basis 
     of the type of setting in which a child is served that will 
     result in the failure to provide a child with a disability a 
     free appropriate public education according to the unique 
     needs of the child as described in the child's IEP.
       ``(ii) Assurance.--If the State does not have policies and 
     procedures to ensure compliance with clause (i), the State 
     shall provide the Secretary an assurance that the State will 
     revise the funding mechanism as soon as feasible to ensure 
     that such mechanism does not result in such placements.
       ``(6) Procedural safeguards.--
       ``(A) In general.--Children with disabilities and their 
     parents are afforded the procedural safeguards required by 
     section 615.
       ``(B) Additional procedural safeguards.--Procedures to 
     ensure that testing and evaluation materials and procedures 
     utilized for the purposes of evaluation and placement of 
     children with disabilities for services under this title will 
     be selected and administered so as not to be racially or 
     culturally discriminatory. Such materials or procedures shall 
     be provided and administered in the child's native language 
     or mode of communication, unless it clearly is not feasible 
     to do so, and no single procedure shall be the sole criterion 
     for determining an appropriate educational program for a 
     child.
       ``(7) Evaluation.--Children with disabilities are evaluated 
     in accordance with subsections (a) through (c) of section 
     614.
       ``(8) Confidentiality.--Agencies in the State comply with 
     section 617(c) (relating to the confidentiality of records 
     and information).
       ``(9) Transition from part c to preschool programs.--
     Children participating in early intervention programs 
     assisted under part C, and who will participate in preschool 
     programs assisted under this part, experience a smooth and 
     effective transition to those preschool programs in a manner 
     consistent with section 637(a)(9). By the third birthday of 
     such a child, an individualized education program or, if 
     consistent with sections 614(d)(2)(B) and 636(d), an 
     individualized family service plan, has been developed and is 
     being implemented for the child. The local educational agency 
     will participate in transition planning conferences arranged 
     by the designated lead agency under section 635(a)(10).
       ``(10) Children in private schools.--
       ``(A) Children enrolled in private schools by their 
     parents.--
       ``(i) In general.--To the extent consistent with the number 
     and location of children with disabilities in the State who 
     are enrolled by their parents in private elementary schools 
     and secondary schools in the school district served by a 
     local educational agency, provision is made for the 
     participation of those children in the program assisted or 
     carried out under this part by providing for such children 
     special education and related services in accordance with the 
     following requirements, unless the Secretary has arranged for 
     services to those children under subsection (f):

       ``(I) Amounts to be expended for the provision of those 
     services (including direct services to parentally placed 
     private school children) by the local educational agency 
     shall be equal to a proportionate amount of Federal funds 
     made available under this part.
       ``(II) In calculating the proportionate amount of Federal 
     funds, the local educational agency, after timely and 
     meaningful consultation with representatives of private 
     schools as described in clause (iii), shall conduct a 
     thorough and complete child find process to determine the 
     number of parentally placed children with disabilities 
     attending private schools located in the local educational 
     agency.
       ``(III) Such services to parentally placed private school 
     children with disabilities may be provided to the children on 
     the premises of private, including religious, schools, to the 
     extent consistent with law.
       ``(IV) State and local funds may supplement and in no case 
     shall supplant the proportionate amount of Federal funds 
     required to be expended under this subparagraph.

       ``(V) Each local educational agency shall maintain in its 
     records and provide to the State educational agency the 
     number of children evaluated under this subparagraph, the 
     number of children determined to be children with 
     disabilities under this paragraph, and the number of children 
     served under this paragraph.

       ``(ii) Child find requirement.--

       ``(I) In general.--The requirements of paragraph (3) 
     (relating to child find) shall apply with respect to children 
     with disabilities in the State who are enrolled in private, 
     including religious, elementary schools and secondary 
     schools.
       ``(II) Equitable participation.--The child find process 
     shall be designed to ensure the equitable participation of 
     parentally placed private school children with disabilities 
     and an accurate count of such children.
       ``(III) Activities.--In carrying out this clause, the local 
     educational agency, or where applicable, the State 
     educational agency, shall undertake activities similar to 
     those activities undertaken for the agency's public school 
     children.
       ``(IV) Cost.--The cost of carrying out this clause, 
     including individual evaluations, may not be considered in 
     determining whether a local educational agency has met its 
     obligations under clause (i).
       ``(V) Completion period.--Such child find process shall be 
     completed in a time period comparable to that for other 
     students attending public schools in the local educational 
     agency.

       ``(iii) Consultation.--To ensure timely and meaningful 
     consultation, a local educational agency, or where 
     appropriate, a State educational agency, shall consult with 
     private school representatives and representatives of parents 
     of parentally placed private school children with 
     disabilities during the design and development of special 
     education and related services for the children, including 
     regarding--

       ``(I) the child find process and how parentally placed 
     private school children suspected of having a disability can 
     participate equitably, including how parents, teachers, and 
     private school officials will be informed of the process;
       ``(II) the determination of the proportionate amount of 
     Federal funds available to serve parentally placed private 
     school children with disabilities under this subparagraph, 
     including the determination of how the amount was calculated;
       ``(III) the consultation process among the local 
     educational agency, private school officials, and 
     representatives of parents of parentally placed private 
     school children with disabilities, including how such process 
     will operate throughout the school year to ensure that 
     parentally placed private school children with disabilities 
     identified through the child find process can meaningfully 
     participate in special education and related services;
       ``(IV) how, where, and by whom special education and 
     related services will be provided for parentally placed 
     private school children with disabilities, including a 
     discussion of types of services, including direct services 
     and alternate service delivery mechanisms, how such services 
     will be apportioned if funds are insufficient to serve all 
     children, and how and when these decisions will be made; and
       ``(V) how, if the local educational agency disagrees with 
     the views of the private school officials on the provision of 
     services or the types of services, whether provided directly 
     or through a contract, the local educational agency shall 
     provide to the private school officials a written explanation 
     of the reasons why the local educational agency chose not to 
     provide services directly or through a contract.

       ``(iv) Written affirmation.--When timely and meaningful 
     consultation as required by clause (iii) has occurred, the 
     local educational agency shall obtain a written affirmation 
     signed by the representatives of participating private 
     schools, and if such representatives do not provide such 
     affirmation within a reasonable period of time, the local 
     educational agency shall forward the documentation of the 
     consultation process to the State educational agency.
       ``(v) Compliance.--

       ``(I) In general.--A private school official shall have the 
     right to submit a complaint to the State educational agency 
     that the local educational agency did not engage in 
     consultation that was meaningful and timely, or did not give 
     due consideration to the views of the private school 
     official.
       ``(II) Procedure.--If the private school official wishes to 
     submit a complaint, the official shall provide the basis of 
     the noncompliance with this subparagraph by the local 
     educational agency to the State educational agency, and the 
     local educational agency shall forward the appropriate 
     documentation to the State educational agency. If the private 
     school official is dissatisfied with the decision of the 
     State educational agency, such official may submit a 
     complaint to the Secretary by providing the basis of the 
     noncompliance with this subparagraph by the local educational 
     agency to the Secretary, and the State educational agency 
     shall forward the appropriate documentation to the Secretary.

       ``(vi) Provision of equitable services.--

       ``(I) Directly or through contracts.--The provision of 
     services pursuant to this subparagraph shall be provided--

       ``(aa) by employees of a public agency; or
       ``(bb) through contract by the public agency with an 
     individual, association, agency, organization, or other 
     entity.

       ``(II) Secular, neutral, nonideological.--Special education 
     and related services provided to parentally placed private 
     school children with disabilities, including materials and 
     equipment, shall be secular, neutral, and nonideological.

       ``(vii) Public control of funds.--The control of funds used 
     to provide special education and related services under this 
     subparagraph, and title to materials, equipment, and property 
     purchased with those funds, shall be in a public agency for 
     the uses and purposes provided in this title, and a public 
     agency shall administer the funds and property.
       ``(B) Children placed in, or referred to, private schools 
     by public agencies.--
       ``(i) In general.--Children with disabilities in private 
     schools and facilities are provided special education and 
     related services, in accordance with an individualized 
     education program, at no cost to their parents, if such 
     children are placed in, or referred to, such schools or 
     facilities by the State or appropriate local educational 
     agency as the means of carrying out the requirements of this 
     part or any other applicable law requiring the provision of 
     special education and related services to all children with 
     disabilities within such State.
       ``(ii) Standards.--In all cases described in clause (i), 
     the State educational agency shall determine whether such 
     schools and facilities meet standards that apply to State 
     educational agencies and local educational agencies and that 
     children so served have all the rights the children would 
     have if served by such agencies.
       ``(C) Payment for education of children enrolled in private 
     schools without consent of or referral by the public 
     agency.--

[[Page H9904]]

       ``(i) In general.--Subject to subparagraph (A), this part 
     does not require a local educational agency to pay for the 
     cost of education, including special education and related 
     services, of a child with a disability at a private school or 
     facility if that agency made a free appropriate public 
     education available to the child and the parents elected to 
     place the child in such private school or facility.
       ``(ii) Reimbursement for private school placement.--If the 
     parents of a child with a disability, who previously received 
     special education and related services under the authority of 
     a public agency, enroll the child in a private elementary 
     school or secondary school without the consent of or referral 
     by the public agency, a court or a hearing officer may 
     require the agency to reimburse the parents for the cost of 
     that enrollment if the court or hearing officer finds that 
     the agency had not made a free appropriate public education 
     available to the child in a timely manner prior to that 
     enrollment.
       ``(iii) Limitation on reimbursement.--The cost of 
     reimbursement described in clause (ii) may be reduced or 
     denied--

       ``(I) if--

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

       ``(II) if, prior to the parents' removal of the child from 
     the public school, the public agency informed the parents, 
     through the notice requirements described in section 
     615(b)(3), of its intent to evaluate the child (including a 
     statement of the purpose of the evaluation that was 
     appropriate and reasonable), but the parents did not make the 
     child available for such evaluation; or
       ``(III) upon a judicial finding of unreasonableness with 
     respect to actions taken by the parents.

       ``(iv) Exception.--Notwithstanding the notice requirement 
     in clause (iii)(I), the cost of reimbursement--

       ``(I) shall not be reduced or denied for failure to provide 
     such notice if--

       ``(aa) the school prevented the parent from providing such 
     notice;
       ``(bb) the parents had not received notice, pursuant to 
     section 615, of the notice requirement in clause (iii)(I); or
       ``(cc) compliance with clause (iii)(I) would likely result 
     in physical harm to the child; and

       ``(II) may, in the discretion of a court or a hearing 
     officer, not be reduced or denied for failure to provide such 
     notice if--

       ``(aa) the parent is illiterate or cannot write in English; 
     or
       ``(bb) compliance with clause (iii)(I) would likely result 
     in serious emotional harm to the child.
       ``(11) State educational agency responsible for general 
     supervision.--
       ``(A) In general.--The State educational agency is 
     responsible for ensuring that--
       ``(i) the requirements of this part are met;
       ``(ii) all educational programs for children with 
     disabilities in the State, including all such programs 
     administered by any other State agency or local agency--

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

       ``(iii) in carrying out this part with respect to homeless 
     children, the requirements of subtitle B of title VII of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et 
     seq.) are met.
       ``(B) Limitation.--Subparagraph (A) shall not limit the 
     responsibility of agencies in the State other than the State 
     educational agency to provide, or pay for some or all of the 
     costs of, a free appropriate public education for any child 
     with a disability in the State.
       ``(C) Exception.--Notwithstanding subparagraphs (A) and 
     (B), the Governor (or another individual pursuant to State 
     law), consistent with State law, may assign to any public 
     agency in the State the responsibility of ensuring that the 
     requirements of this part are met with respect to children 
     with disabilities who are convicted as adults under State law 
     and incarcerated in adult prisons.
       ``(12) Obligations related to and methods of ensuring 
     services.--
       ``(A) Establishing responsibility for services.--The Chief 
     Executive Officer of a State or designee of the officer shall 
     ensure that an interagency agreement or other mechanism for 
     interagency coordination is in effect between each public 
     agency described in subparagraph (B) and the State 
     educational agency, in order to ensure that all services 
     described in subparagraph (B)(i) that are needed to ensure a 
     free appropriate public education are provided, including the 
     provision of such services during the pendency of any dispute 
     under clause (iii). Such agreement or mechanism shall include 
     the following:
       ``(i) Agency financial responsibility.--An identification 
     of, or a method for defining, the financial responsibility of 
     each agency for providing services described in subparagraph 
     (B)(i) to ensure a free appropriate public education to 
     children with disabilities, provided that the financial 
     responsibility of each public agency described in 
     subparagraph (B), including the State medicaid agency and 
     other public insurers of children with disabilities, shall 
     precede the financial responsibility of the local educational 
     agency (or the State agency responsible for developing the 
     child's IEP).
       ``(ii) Conditions and terms of reimbursement.--The 
     conditions, terms, and procedures under which a local 
     educational agency shall be reimbursed by other agencies.
       ``(iii) Interagency disputes.--Procedures for resolving 
     interagency disputes (including procedures under which local 
     educational agencies may initiate proceedings) under the 
     agreement or other mechanism to secure reimbursement from 
     other agencies or otherwise implement the provisions of the 
     agreement or mechanism.
       ``(iv) Coordination of services procedures.--Policies and 
     procedures for agencies to determine and identify the 
     interagency coordination responsibilities of each agency to 
     promote the coordination and timely and appropriate delivery 
     of services described in subparagraph (B)(i).
       ``(B) Obligation of public agency.--
       ``(i) In general.--If any public agency other than an 
     educational agency is otherwise obligated under Federal or 
     State law, or assigned responsibility under State policy 
     pursuant to subparagraph (A), to provide or pay for any 
     services that are also considered special education or 
     related services (such as, but not limited to, services 
     described in section 602(1) relating to assistive technology 
     devices, 602(2) relating to assistive technology services, 
     602(26) relating to related services, 602(33) relating to 
     supplementary aids and services, and 602(34) relating to 
     transition services) that are necessary for ensuring a free 
     appropriate public education to children with disabilities 
     within the State, such public agency shall fulfill that 
     obligation or responsibility, either directly or through 
     contract or other arrangement pursuant to subparagraph (A) or 
     an agreement pursuant to subparagraph (C).
       ``(ii) Reimbursement for services by public agency.--If a 
     public agency other than an educational agency fails to 
     provide or pay for the special education and related services 
     described in clause (i), the local educational agency (or 
     State agency responsible for developing the child's IEP) 
     shall provide or pay for such services to the child. Such 
     local educational agency or State agency is authorized to 
     claim reimbursement for the services from the public agency 
     that failed to provide or pay for such services and such 
     public agency shall reimburse the local educational agency or 
     State agency pursuant to the terms of the interagency 
     agreement or other mechanism described in subparagraph (A)(i) 
     according to the procedures established in such agreement 
     pursuant to subparagraph (A)(ii).
       ``(C) Special rule.--The requirements of subparagraph (A) 
     may be met through--
       ``(i) State statute or regulation;
       ``(ii) signed agreements between respective agency 
     officials that clearly identify the responsibilities of each 
     agency relating to the provision of services; or
       ``(iii) other appropriate written methods as determined by 
     the Chief Executive Officer of the State or designee of the 
     officer and approved by the Secretary.
       ``(13) Procedural requirements relating to local 
     educational agency eligibility.--The State educational agency 
     will not make a final determination that a local educational 
     agency is not eligible for assistance under this part without 
     first affording that agency reasonable notice and an 
     opportunity for a hearing.
       ``(14) Personnel qualifications.--
       ``(A) In general.--The State educational agency has 
     established and maintains qualifications to ensure that 
     personnel necessary to carry out this part are appropriately 
     and adequately prepared and trained, including that those 
     personnel have the content knowledge and skills to serve 
     children with disabilities.
       ``(B) Related services personnel and paraprofessionals.--
     The qualifications under subparagraph (A) include 
     qualifications for related services personnel and 
     paraprofessionals that--
       ``(i) are consistent with any State-approved or State-
     recognized certification, licensing, registration, or other 
     comparable requirements that apply to the professional 
     discipline in which those personnel are providing special 
     education or related services;
       ``(ii) ensure that related services personnel who deliver 
     services in their discipline or profession meet the 
     requirements of clause (i) and have not had certification or 
     licensure requirements waived on an emergency, temporary, or 
     provisional basis; and
       ``(iii) allow paraprofessionals and assistants who are 
     appropriately trained and supervised, in accordance with 
     State law, regulation, or written policy, in meeting the 
     requirements of this part to be used to assist in the 
     provision of special education and related services under 
     this part to children with disabilities.
       ``(C) Policy.--In implementing this section, a State shall 
     adopt a policy that includes a requirement that local 
     educational agencies in the State take measurable steps to 
     recruit, hire, train, and retain highly qualified personnel 
     to provide special education and related services under this 
     part to children with disabilities.
       ``(D) Rule of construction.--Notwithstanding any other 
     individual right of action that a parent or student may 
     maintain under this part, nothing in this paragraph shall be 
     construed to create a right of action on behalf of an 
     individual student for the failure of a particular State 
     educational agency or local educational agency staff person 
     to be highly qualified, or to prevent a parent from filing a 
     complaint about staff qualifications with the State 
     educational agency as provided for under this part.
       ``(15) Performance goals and indicators.--The State--
       ``(A) has established goals for the performance of children 
     with disabilities in the State that--
       ``(i) promote the purposes of this title, as stated in 
     section 601(d);

[[Page H9905]]

       ``(ii) are the same as the State's definition of adequate 
     yearly progress, including the State's objectives for 
     progress by children with disabilities, under section 
     1111(b)(2)(C) of the Elementary and Secondary Education Act 
     of 1965;
       ``(iii) address graduation rates and dropout rates, as well 
     as such other factors as the State may determine; and
       ``(iv) are consistent, to the extent appropriate, with any 
     other goals and standards for children established by the 
     State;
       ``(B) has established performance indicators the State will 
     use to assess progress toward achieving the goals described 
     in subparagraph (A), including measurable annual objectives 
     for progress by children with disabilities under section 
     1111(b)(2)(C)(v)(II)(cc) of the Elementary and Secondary 
     Education Act of 1965; and
       ``(C) will annually report to the Secretary and the public 
     on the progress of the State, and of children with 
     disabilities in the State, toward meeting the goals 
     established under subparagraph (A), which may include 
     elements of the reports required under section 1111(h) of the 
     Elementary and Secondary Education Act of 1965.
       ``(16) Participation in assessments.--
       ``(A) In general.--All children with disabilities are 
     included in all general State and districtwide assessment 
     programs, including assessments described under section 1111 
     of the Elementary and Secondary Education Act of 1965, with 
     appropriate accommodations and alternate assessments where 
     necessary and as indicated in their respective individualized 
     education programs.
       ``(B) Accommodation guidelines.--The State (or, in the case 
     of a districtwide assessment, the local educational agency) 
     has developed guidelines for the provision of appropriate 
     accommodations.
       ``(C) Alternate assessments.--
       ``(i) In general.--The State (or, in the case of a 
     districtwide assessment, the local educational agency) has 
     developed and implemented guidelines for the participation of 
     children with disabilities in alternate assessments for those 
     children who cannot participate in regular assessments under 
     subparagraph (A) with accommodations as indicated in their 
     respective individualized education programs.
       ``(ii) Requirements for alternate assessments.--The 
     guidelines under clause (i) shall provide for alternate 
     assessments that--

       ``(I) are aligned with the State's challenging academic 
     content standards and challenging student academic 
     achievement standards; and
       ``(II) if the State has adopted alternate academic 
     achievement standards permitted under the regulations 
     promulgated to carry out section 1111(b)(1) of the Elementary 
     and Secondary Education Act of 1965, measure the achievement 
     of children with disabilities against those standards.

       ``(iii) Conduct of alternate assessments.--The State 
     conducts the alternate assessments described in this 
     subparagraph.
       ``(D) Reports.--The State educational agency (or, in the 
     case of a districtwide assessment, the local educational 
     agency) makes available to the public, and reports to the 
     public with the same frequency and in the same detail as it 
     reports on the assessment of nondisabled children, the 
     following:
       ``(i) The number of children with disabilities 
     participating in regular assessments, and the number of those 
     children who were provided accommodations in order to 
     participate in those assessments.
       ``(ii) The number of children with disabilities 
     participating in alternate assessments described in 
     subparagraph (C)(ii)(I).
       ``(iii) The number of children with disabilities 
     participating in alternate assessments described in 
     subparagraph (C)(ii)(II).
       ``(iv) The performance of children with disabilities on 
     regular assessments and on alternate assessments (if the 
     number of children with disabilities participating in those 
     assessments is sufficient to yield statistically reliable 
     information and reporting that information will not reveal 
     personally identifiable information about an individual 
     student), compared with the achievement of all children, 
     including children with disabilities, on those assessments.
       ``(E) Universal design.--The State educational agency (or, 
     in the case of a districtwide assessment, the local 
     educational agency) shall, to the extent feasible, use 
     universal design principles in developing and administering 
     any assessments under this paragraph.
       ``(17) Supplementation of state, local, and other federal 
     funds.--
       ``(A) Expenditures.--Funds paid to a State under this part 
     will be expended in accordance with all the provisions of 
     this part.
       ``(B) Prohibition against commingling.--Funds paid to a 
     State under this part will not be commingled with State 
     funds.
       ``(C) Prohibition against supplantation and conditions for 
     waiver by secretary.--Except as provided in section 613, 
     funds paid to a State under this part will be used to 
     supplement the level of Federal, State, and local funds 
     (including funds that are not under the direct control of 
     State or local educational agencies) expended for special 
     education and related services provided to children with 
     disabilities under this part and in no case to supplant such 
     Federal, State, and local funds, except that, where the State 
     provides clear and convincing evidence that all children with 
     disabilities have available to them a free appropriate public 
     education, the Secretary may waive, in whole or in part, the 
     requirements of this subparagraph if the Secretary concurs 
     with the evidence provided by the State.
       ``(18) Maintenance of state financial support.--
       ``(A) In general.--The State does not reduce the amount of 
     State financial support for special education and related 
     services for children with disabilities, or otherwise made 
     available because of the excess costs of educating those 
     children, below the amount of that support for the preceding 
     fiscal year.
       ``(B) Reduction of funds for failure to maintain support.--
     The Secretary shall reduce the allocation of funds under 
     section 611 for any fiscal year following the fiscal year in 
     which the State fails to comply with the requirement of 
     subparagraph (A) by the same amount by which the State fails 
     to meet the requirement.
       ``(C) Waivers for exceptional or uncontrollable 
     circumstances.--The Secretary may waive the requirement of 
     subparagraph (A) for a State, for 1 fiscal year at a time, if 
     the Secretary determines that--
       ``(i) granting a waiver would be equitable due to 
     exceptional or uncontrollable circumstances such as a natural 
     disaster or a precipitous and unforeseen decline in the 
     financial resources of the State; or
       ``(ii) the State meets the standard in paragraph (17)(C) 
     for a waiver of the requirement to supplement, and not to 
     supplant, funds received under this part.
       ``(D) Subsequent years.--If, for any year, a State fails to 
     meet the requirement of subparagraph (A), including any year 
     for which the State is granted a waiver under subparagraph 
     (C), the financial support required of the State in future 
     years under subparagraph (A) shall be the amount that would 
     have been required in the absence of that failure and not the 
     reduced level of the State's support.
       ``(19) Public participation.--Prior to the adoption of any 
     policies and procedures needed to comply with this section 
     (including any amendments to such policies and procedures), 
     the State ensures that there are public hearings, adequate 
     notice of the hearings, and an opportunity for comment 
     available to the general public, including individuals with 
     disabilities and parents of children with disabilities.
       ``(20) Rule of construction.--In complying with paragraphs 
     (17) and (18), a State may not use funds paid to it under 
     this part to satisfy State-law mandated funding obligations 
     to local educational agencies, including funding based on 
     student attendance or enrollment, or inflation.
       ``(21) State advisory panel.--
       ``(A) In general.--The State has established and maintains 
     an advisory panel for the purpose of providing policy 
     guidance with respect to special education and related 
     services for children with disabilities in the State.
       ``(B) Membership.--Such advisory panel shall consist of 
     members appointed by the Governor, or any other official 
     authorized under State law to make such appointments, be 
     representative of the State population, and be composed of 
     individuals involved in, or concerned with, the education of 
     children with disabilities, including--
       ``(i) parents of children with disabilities (ages birth 
     through 26);
       ``(ii) individuals with disabilities;
       ``(iii) teachers;
       ``(iv) representatives of institutions of higher education 
     that prepare special education and related services 
     personnel;
       ``(v) State and local education officials, including 
     officials who carry out activities under subtitle B of title 
     VII of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
     11431 et seq.);
       ``(vi) administrators of programs for children with 
     disabilities;
       ``(vii) representatives of other State agencies involved in 
     the financing or delivery of related services to children 
     with disabilities;
       ``(viii) representatives of private schools and public 
     charter schools;
       ``(ix) not less than 1 representative of a vocational, 
     community, or business organization concerned with the 
     provision of transition services to children with 
     disabilities;
       ``(x) a representative from the State child welfare agency 
     responsible for foster care; and
       ``(xi) representatives from the State juvenile and adult 
     corrections agencies.
       ``(C) Special rule.--A majority of the members of the panel 
     shall be individuals with disabilities or parents of children 
     with disabilities (ages birth through 26).
       ``(D) Duties.--The advisory panel shall--
       ``(i) advise the State educational agency of unmet needs 
     within the State in the education of children with 
     disabilities;
       ``(ii) comment publicly on any rules or regulations 
     proposed by the State regarding the education of children 
     with disabilities;
       ``(iii) advise the State educational agency in developing 
     evaluations and reporting on data to the Secretary under 
     section 618;
       ``(iv) advise the State educational agency in developing 
     corrective action plans to address findings identified in 
     Federal monitoring reports under this part; and
       ``(v) advise the State educational agency in developing and 
     implementing policies relating to the coordination of 
     services for children with disabilities.
       ``(22) Suspension and expulsion rates.--
       ``(A) In general.--The State educational agency examines 
     data, including data disaggregated by race and ethnicity, to 
     determine if significant discrepancies are occurring in the 
     rate of long-term suspensions and expulsions of children with 
     disabilities--
       ``(i) among local educational agencies in the State; or
       ``(ii) compared to such rates for nondisabled children 
     within such agencies.
       ``(B) Review and revision of policies.--If such 
     discrepancies are occurring, the State educational agency 
     reviews and, if appropriate, revises (or requires the 
     affected State or local educational agency to revise) its 
     policies, procedures, and practices relating to the 
     development and implementation of IEPs, the use of positive 
     behavioral interventions and supports, and procedural 
     safeguards, to ensure that such policies, procedures, and 
     practices comply with this title.

[[Page H9906]]

       ``(23) Access to instructional materials.--
       ``(A) In general.--The State adopts the National 
     Instructional Materials Accessibility Standard for the 
     purposes of providing instructional materials to blind 
     persons or other persons with print disabilities, in a timely 
     manner after the publication of the National Instructional 
     Materials Accessibility Standard in the Federal Register.
       ``(B) Rights of state educational agency.--Nothing in this 
     paragraph shall be construed to require any State educational 
     agency to coordinate with the National Instructional 
     Materials Access Center. If a State educational agency 
     chooses not to coordinate with the National Instructional 
     Materials Access Center, such agency shall provide an 
     assurance to the Secretary that the agency will provide 
     instructional materials to blind persons or other persons 
     with print disabilities in a timely manner.
       ``(C) Preparation and delivery of files.--If a State 
     educational agency chooses to coordinate with the National 
     Instructional Materials Access Center, not later than 2 years 
     after the date of enactment of the Individuals with 
     Disabilities Education Improvement Act of 2004, the agency, 
     as part of any print instructional materials adoption 
     process, procurement contract, or other practice or 
     instrument used for purchase of print instructional 
     materials, shall enter into a written contract with the 
     publisher of the print instructional materials to--
       ``(i) require the publisher to prepare and, on or before 
     delivery of the print instructional materials, provide to the 
     National Instructional Materials Access Center electronic 
     files containing the contents of the print instructional 
     materials using the National Instructional Materials 
     Accessibility Standard; or
       ``(ii) purchase instructional materials from the publisher 
     that are produced in, or may be rendered in, specialized 
     formats.
       ``(D) Assistive technology.--In carrying out this 
     paragraph, the State educational agency, to the maximum 
     extent possible, shall work collaboratively with the State 
     agency responsible for assistive technology programs.
       ``(E) Definitions.--In this paragraph:
       ``(i) National instructional materials access center.--The 
     term `National Instructional Materials Access Center' means 
     the center established pursuant to section 674(e).
       ``(ii) National instructional materials accessibility 
     standard.--The term `National Instructional Materials 
     Accessibility Standard' has the meaning given the term in 
     section 674(e)(3)(A).
       ``(iii) Specialized formats.--The term `specialized 
     formats' has the meaning given the term in section 
     674(e)(3)(D).
       ``(24) Overidentification and disproportionality.--The 
     State has in effect, consistent with the purposes of this 
     title and with section 618(d), policies and procedures 
     designed to prevent the inappropriate overidentification or 
     disproportionate representation by race and ethnicity of 
     children as children with disabilities, including children 
     with disabilities with a particular impairment described in 
     section 602.
       ``(25) Prohibition on mandatory medication.--
       ``(A) In general.--The State educational agency shall 
     prohibit State and local educational agency personnel from 
     requiring a child to obtain a prescription for a substance 
     covered by the Controlled Substances Act (21 U.S.C. 801 et 
     seq.) as a condition of attending school, receiving an 
     evaluation under subsection (a) or (c) of section 614, or 
     receiving services under this title.
       ``(B) Rule of construction.--Nothing in subparagraph (A) 
     shall be construed to create a Federal prohibition against 
     teachers and other school personnel consulting or sharing 
     classroom-based observations with parents or guardians 
     regarding a student's academic and functional performance, or 
     behavior in the classroom or school, or regarding the need 
     for evaluation for special education or related services 
     under paragraph (3).
       ``(b) State Educational Agency as Provider of Free 
     Appropriate Public Education or Direct Services.--If the 
     State educational agency provides free appropriate public 
     education to children with disabilities, or provides direct 
     services to such children, such agency--
       ``(1) shall comply with any additional requirements of 
     section 613(a), as if such agency were a local educational 
     agency; and
       ``(2) may use amounts that are otherwise available to such 
     agency under this part to serve those children without regard 
     to section 613(a)(2)(A)(i) (relating to excess costs).
       ``(c) Exception for Prior State Plans.--
       ``(1) In general.--If a State has on file with the 
     Secretary policies and procedures that demonstrate that such 
     State meets any requirement of subsection (a), including any 
     policies and procedures filed under this part as in effect 
     before the effective date of the Individuals with 
     Disabilities Education Improvement Act of 2004, the Secretary 
     shall consider such State to have met such requirement for 
     purposes of receiving a grant under this part.
       ``(2) Modifications made by state.--Subject to paragraph 
     (3), an application submitted by a State in accordance with 
     this section shall remain in effect until the State submits 
     to the Secretary such modifications as the State determines 
     necessary. This section shall apply to a modification to an 
     application to the same extent and in the same manner as this 
     section applies to the original plan.
       ``(3) Modifications required by the secretary.--If, after 
     the effective date of the Individuals with Disabilities 
     Education Improvement Act of 2004, the provisions of this 
     title are amended (or the regulations developed to carry out 
     this title are amended), there is a new interpretation of 
     this title by a Federal court or a State's highest court, or 
     there is an official finding of noncompliance with Federal 
     law or regulations, then the Secretary may require a State to 
     modify its application only to the extent necessary to ensure 
     the State's compliance with this part.
       ``(d) Approval by the Secretary.--
       ``(1) In general.--If the Secretary determines that a State 
     is eligible to receive a grant under this part, the Secretary 
     shall notify the State of that determination.
       ``(2) Notice and hearing.--The Secretary shall not make a 
     final determination that a State is not eligible to receive a 
     grant under this part until after providing the State--
       ``(A) with reasonable notice; and
       ``(B) with an opportunity for a hearing.
       ``(e) Assistance Under Other Federal Programs.--Nothing in 
     this title permits a State to reduce medical and other 
     assistance available, or to alter eligibility, under titles V 
     and XIX of the Social Security Act with respect to the 
     provision of a free appropriate public education for children 
     with disabilities in the State.
       ``(f) By-Pass for Children in Private Schools.--
       ``(1) In general.--If, on the date of enactment of the 
     Education of the Handicapped Act Amendments of 1983, a State 
     educational agency was prohibited by law from providing for 
     the equitable participation in special programs of children 
     with disabilities enrolled in private elementary schools and 
     secondary schools as required by subsection (a)(10)(A), or if 
     the Secretary determines that a State educational agency, 
     local educational agency, or other entity has substantially 
     failed or is unwilling to provide for such equitable 
     participation, then the Secretary shall, notwithstanding such 
     provision of law, arrange for the provision of services to 
     such children through arrangements that shall be subject to 
     the requirements of such subsection.
       ``(2) Payments.--
       ``(A) Determination of amounts.--If the Secretary arranges 
     for services pursuant to this subsection, the Secretary, 
     after consultation with the appropriate public and private 
     school officials, shall pay to the provider of such services 
     for a fiscal year an amount per child that does not exceed 
     the amount determined by dividing--
       ``(i) the total amount received by the State under this 
     part for such fiscal year; by
       ``(ii) the number of children with disabilities served in 
     the prior year, as reported to the Secretary by the State 
     under section 618.
       ``(B) Withholding of certain amounts.--Pending final 
     resolution of any investigation or complaint that may result 
     in a determination under this subsection, the Secretary may 
     withhold from the allocation of the affected State 
     educational agency the amount the Secretary estimates will be 
     necessary to pay the cost of services described in 
     subparagraph (A).
       ``(C) Period of payments.--The period under which payments 
     are made under subparagraph (A) shall continue until the 
     Secretary determines that there will no longer be any failure 
     or inability on the part of the State educational agency to 
     meet the requirements of subsection (a)(10)(A).
       ``(3) Notice and hearing.--
       ``(A) In general.--The Secretary shall not take any final 
     action under this subsection until the State educational 
     agency affected by such action has had an opportunity, for 
     not less than 45 days after receiving written notice thereof, 
     to submit written objections and to appear before the 
     Secretary or the Secretary's designee to show cause why such 
     action should not be taken.
       ``(B) Review of action.--If a State educational agency is 
     dissatisfied with the Secretary's final action after a 
     proceeding under subparagraph (A), such agency may, not later 
     than 60 days after notice of such action, file with the 
     United States court of appeals for the circuit in which such 
     State is located a petition for review of that action. A copy 
     of the petition shall be forthwith transmitted by the clerk 
     of the court to the Secretary. The Secretary thereupon shall 
     file in the court the record of the proceedings on which the 
     Secretary based the Secretary's action, as provided in 
     section 2112 of title 28, United States Code.
       ``(C) Review of findings of fact.--The findings of fact by 
     the Secretary, if supported by substantial evidence, shall be 
     conclusive, but the court, for good cause shown, may remand 
     the case to the Secretary to take further evidence, and the 
     Secretary may thereupon make new or modified findings of fact 
     and may modify the Secretary's previous action, and shall 
     file in the court the record of the further proceedings. Such 
     new or modified findings of fact shall likewise be conclusive 
     if supported by substantial evidence.
       ``(D) Jurisdiction of court of appeals; review by united 
     states supreme court.--Upon the filing of a petition under 
     subparagraph (B), the United States court of appeals shall 
     have jurisdiction to affirm the action of the Secretary or to 
     set it aside, in whole or in part. The judgment of the court 
     shall be subject to review by the Supreme Court of the United 
     States upon certiorari or certification as provided in 
     section 1254 of title 28, United States Code.

     ``SEC. 613. LOCAL EDUCATIONAL AGENCY ELIGIBILITY.

       ``(a) In General.--A local educational agency is eligible 
     for assistance under this part for a fiscal year if such 
     agency submits a plan that provides assurances to the State 
     educational agency that the local educational agency meets 
     each of the following conditions:
       ``(1) Consistency with state policies.--The local 
     educational agency, in providing for the education of 
     children with disabilities within its jurisdiction, has in 
     effect policies, procedures, and programs that are consistent 
     with the State policies and procedures established under 
     section 612.
       ``(2) Use of amounts.--

[[Page H9907]]

       ``(A) In general.--Amounts provided to the local 
     educational agency under this part shall be expended in 
     accordance with the applicable provisions of this part and--
       ``(i) shall be used only to pay the excess costs of 
     providing special education and related services to children 
     with disabilities;
       ``(ii) shall be used to supplement State, local, and other 
     Federal funds and not to supplant such funds; and
       ``(iii) shall not be used, except as provided in 
     subparagraphs (B) and (C), to reduce the level of 
     expenditures for the education of children with disabilities 
     made by the local educational agency from local funds below 
     the level of those expenditures for the preceding fiscal 
     year.
       ``(B) Exception.--Notwithstanding the restriction in 
     subparagraph (A)(iii), a local educational agency may reduce 
     the level of expenditures where such reduction is 
     attributable to--
       ``(i) the voluntary departure, by retirement or otherwise, 
     or departure for just cause, of special education personnel;
       ``(ii) a decrease in the enrollment of children with 
     disabilities;
       ``(iii) the termination of the obligation of the agency, 
     consistent with this part, to provide a program of special 
     education to a particular child with a disability that is an 
     exceptionally costly program, as determined by the State 
     educational agency, because the child--

       ``(I) has left the jurisdiction of the agency;
       ``(II) has reached the age at which the obligation of the 
     agency to provide a free appropriate public education to the 
     child has terminated; or

       ``(III) no longer needs such program of special education; 
     or

       ``(iv) the termination of costly expenditures for long-term 
     purchases, such as the acquisition of equipment or the 
     construction of school facilities.
       ``(C) Adjustment to local fiscal effort in certain fiscal 
     years.--
       ``(i) Amounts in excess.--Notwithstanding clauses (ii) and 
     (iii) of subparagraph (A), for any fiscal year for which the 
     allocation received by a local educational agency under 
     section 611(f) exceeds the amount the local educational 
     agency received for the previous fiscal year, the local 
     educational agency may reduce the level of expenditures 
     otherwise required by subparagraph (A)(iii) by not more than 
     50 percent of the amount of such excess.
       ``(ii) Use of amounts to carry out activities under esea.--
     If a local educational agency exercises the authority under 
     clause (i), the agency shall use an amount of local funds 
     equal to the reduction in expenditures under clause (i) to 
     carry out activities authorized under the Elementary and 
     Secondary Education Act of 1965.
       ``(iii) State prohibition.--Notwithstanding clause (i), if 
     a State educational agency determines that a local 
     educational agency is unable to establish and maintain 
     programs of free appropriate public education that meet the 
     requirements of subsection (a) or the State educational 
     agency has taken action against the local educational agency 
     under section 616, the State educational agency shall 
     prohibit the local educational agency from reducing the level 
     of expenditures under clause (i) for that fiscal year.
       ``(iv) Special rule.--The amount of funds expended by a 
     local educational agency under subsection (f) shall count 
     toward the maximum amount of expenditures such local 
     educational agency may reduce under clause (i).
       ``(D) Schoolwide programs under title i of the esea.--
     Notwithstanding subparagraph (A) or any other provision of 
     this part, a local educational agency may use funds received 
     under this part for any fiscal year to carry out a schoolwide 
     program under section 1114 of the Elementary and Secondary 
     Education Act of 1965, except that the amount so used in any 
     such program shall not exceed--
       ``(i) the number of children with disabilities 
     participating in the schoolwide program; multiplied by
       ``(ii)(I) the amount received by the local educational 
     agency under this part for that fiscal year; divided by
       ``(II) the number of children with disabilities in the 
     jurisdiction of that agency.
       ``(3) Personnel development.--The local educational agency 
     shall ensure that all personnel necessary to carry out this 
     part are appropriately and adequately prepared, subject to 
     the requirements of section 612(a)(14) and section 2122 of 
     the Elementary and Secondary Education Act of 1965.
       ``(4) Permissive use of funds.--
       ``(A) Uses.--Notwithstanding paragraph (2)(A) or section 
     612(a)(17)(B) (relating to commingled funds), funds provided 
     to the local educational agency under this part may be used 
     for the following activities:
       ``(i) Services and aids that also benefit nondisabled 
     children.--For the costs of special education and related 
     services, and supplementary aids and services, provided in a 
     regular class or other education-related setting to a child 
     with a disability in accordance with the individualized 
     education program of the child, even if 1 or more nondisabled 
     children benefit from such services.
       ``(ii) Early intervening services.--To develop and 
     implement coordinated, early intervening educational services 
     in accordance with subsection (f).
       ``(iii) High cost education and related services.--To 
     establish and implement cost or risk sharing funds, 
     consortia, or cooperatives for the local educational agency 
     itself, or for local educational agencies working in a 
     consortium of which the local educational agency is a part, 
     to pay for high cost special education and related services.
       ``(B) Administrative case management.--A local educational 
     agency may use funds received under this part to purchase 
     appropriate technology for recordkeeping, data collection, 
     and related case management activities of teachers and 
     related services personnel providing services described in 
     the individualized education program of children with 
     disabilities, that is needed for the implementation of such 
     case management activities.
       ``(5) Treatment of charter schools and their students.--In 
     carrying out this part with respect to charter schools that 
     are public schools of the local educational agency, the local 
     educational agency--
       ``(A) serves children with disabilities attending those 
     charter schools in the same manner as the local educational 
     agency serves children with disabilities in its other 
     schools, including providing supplementary and related 
     services on site at the charter school to the same extent to 
     which the local educational agency has a policy or practice 
     of providing such services on the site to its other public 
     schools; and
       ``(B) provides funds under this part to those charter 
     schools--
       ``(i) on the same basis as the local educational agency 
     provides funds to the local educational agency's other public 
     schools, including proportional distribution based on 
     relative enrollment of children with disabilities; and
       ``(ii) at the same time as the agency distributes other 
     Federal funds to the agency's other public schools, 
     consistent with the State's charter school law.
       ``(6) Purchase of instructional materials.--
       ``(A) In general.--Not later than 2 years after the date of 
     enactment of the Individuals with Disabilities Education 
     Improvement Act of 2004, a local educational agency that 
     chooses to coordinate with the National Instructional 
     Materials Access Center, when purchasing print instructional 
     materials, shall acquire the print instructional materials in 
     the same manner and subject to the same conditions as a State 
     educational agency acquires print instructional materials 
     under section 612(a)(23).
       ``(B) Rights of local educational agency.--Nothing in this 
     paragraph shall be construed to require a local educational 
     agency to coordinate with the National Instructional 
     Materials Access Center. If a local educational agency 
     chooses not to coordinate with the National Instructional 
     Materials Access Center, the local educational agency shall 
     provide an assurance to the State educational agency that the 
     local educational agency will provide instructional materials 
     to blind persons or other persons with print disabilities in 
     a timely manner.
       ``(7) Information for state educational agency.--The local 
     educational agency shall provide the State educational agency 
     with information necessary to enable the State educational 
     agency to carry out its duties under this part, including, 
     with respect to paragraphs (15) and (16) of section 612(a), 
     information relating to the performance of children with 
     disabilities participating in programs carried out under this 
     part.
       ``(8) Public information.--The local educational agency 
     shall make available to parents of children with disabilities 
     and to the general public all documents relating to the 
     eligibility of such agency under this part.
       ``(9) Records regarding migratory children with 
     disabilities.--The local educational agency shall cooperate 
     in the Secretary's efforts under section 1308 of the 
     Elementary and Secondary Education Act of 1965 to ensure the 
     linkage of records pertaining to migratory children with a 
     disability for the purpose of electronically exchanging, 
     among the States, health and educational information 
     regarding such children.
       ``(b) Exception for Prior Local Plans.--
       ``(1) In general.--If a local educational agency or State 
     agency has on file with the State educational agency policies 
     and procedures that demonstrate that such local educational 
     agency, or such State agency, as the case may be, meets any 
     requirement of subsection (a), including any policies and 
     procedures filed under this part as in effect before the 
     effective date of the Individuals with Disabilities Education 
     Improvement Act of 2004, the State educational agency shall 
     consider such local educational agency or State agency, as 
     the case may be, to have met such requirement for purposes of 
     receiving assistance under this part.
       ``(2) Modification made by local educational agency.--
     Subject to paragraph (3), an application submitted by a local 
     educational agency in accordance with this section shall 
     remain in effect until the local educational agency submits 
     to the State educational agency such modifications as the 
     local educational agency determines necessary.
       ``(3) Modifications required by state educational agency.--
     If, after the effective date of the Individuals with 
     Disabilities Education Improvement Act of 2004, the 
     provisions of this title are amended (or the regulations 
     developed to carry out this title are amended), there is a 
     new interpretation of this title by Federal or State courts, 
     or there is an official finding of noncompliance with Federal 
     or State law or regulations, then the State educational 
     agency may require a local educational agency to modify its 
     application only to the extent necessary to ensure the local 
     educational agency's compliance with this part or State law.
       ``(c) Notification of Local Educational Agency or State 
     Agency in Case of Ineligibility.--If the State educational 
     agency determines that a local educational agency or State 
     agency is not eligible under this section, then the State 
     educational agency shall notify the local educational agency 
     or State agency, as the case may be, of that determination 
     and shall provide such local educational agency or State 
     agency with reasonable notice and an opportunity for a 
     hearing.
       ``(d) Local Educational Agency Compliance.--

[[Page H9908]]

       ``(1) In general.--If the State educational agency, after 
     reasonable notice and an opportunity for a hearing, finds 
     that a local educational agency or State agency that has been 
     determined to be eligible under this section is failing to 
     comply with any requirement described in subsection (a), the 
     State educational agency shall reduce or shall not provide 
     any further payments to the local educational agency or State 
     agency until the State educational agency is satisfied that 
     the local educational agency or State agency, as the case may 
     be, is complying with that requirement.
       ``(2) Additional requirement.--Any State agency or local 
     educational agency in receipt of a notice described in 
     paragraph (1) shall, by means of public notice, take such 
     measures as may be necessary to bring the pendency of an 
     action pursuant to this subsection to the attention of the 
     public within the jurisdiction of such agency.
       ``(3) Consideration.--In carrying out its responsibilities 
     under paragraph (1), the State educational agency shall 
     consider any decision made in a hearing held under section 
     615 that is adverse to the local educational agency or State 
     agency involved in that decision.
       ``(e) Joint Establishment of Eligibility.--
       ``(1) Joint establishment.--
       ``(A) In general.--A State educational agency may require a 
     local educational agency to establish its eligibility jointly 
     with another local educational agency if the State 
     educational agency determines that the local educational 
     agency will be ineligible under this section because the 
     local educational agency will not be able to establish and 
     maintain programs of sufficient size and scope to effectively 
     meet the needs of children with disabilities.
       ``(B) Charter school exception.--A State educational agency 
     may not require a charter school that is a local educational 
     agency to jointly establish its eligibility under 
     subparagraph (A) unless the charter school is explicitly 
     permitted to do so under the State's charter school law.
       ``(2) Amount of payments.--If a State educational agency 
     requires the joint establishment of eligibility under 
     paragraph (1), the total amount of funds made available to 
     the affected local educational agencies shall be equal to the 
     sum of the payments that each such local educational agency 
     would have received under section 611(f) if such agencies 
     were eligible for such payments.
       ``(3) Requirements.--Local educational agencies that 
     establish joint eligibility under this subsection shall--
       ``(A) adopt policies and procedures that are consistent 
     with the State's policies and procedures under section 
     612(a); and
       ``(B) be jointly responsible for implementing programs that 
     receive assistance under this part.
       ``(4) Requirements for educational service agencies.--
       ``(A) In general.--If an educational service agency is 
     required by State law to carry out programs under this part, 
     the joint responsibilities given to local educational 
     agencies under this subsection shall--
       ``(i) not apply to the administration and disbursement of 
     any payments received by that educational service agency; and
       ``(ii) be carried out only by that educational service 
     agency.
       ``(B) Additional requirement.--Notwithstanding any other 
     provision of this subsection, an educational service agency 
     shall provide for the education of children with disabilities 
     in the least restrictive environment, as required by section 
     612(a)(5).
       ``(f) Early Intervening Services.--
       ``(1) In general.--A local educational agency may not use 
     more than 15 percent of the amount such agency receives under 
     this part for any fiscal year, less any amount reduced by the 
     agency pursuant to subsection (a)(2)(C), if any, in 
     combination with other amounts (which may include amounts 
     other than education funds), to develop and implement 
     coordinated, early intervening services, which may include 
     interagency financing structures, for students in 
     kindergarten through grade 12 (with a particular emphasis on 
     students in kindergarten through grade 3) who have not been 
     identified as needing special education or related services 
     but who need additional academic and behavioral support to 
     succeed in a general education environment.
       ``(2) Activities.--In implementing coordinated, early 
     intervening services under this subsection, a local 
     educational agency may carry out activities that include--
       ``(A) professional development (which may be provided by 
     entities other than local educational agencies) for teachers 
     and other school staff to enable such personnel to deliver 
     scientifically based academic instruction and behavioral 
     interventions, including scientifically based literacy 
     instruction, and, where appropriate, instruction on the use 
     of adaptive and instructional software; and
       ``(B) providing educational and behavioral evaluations, 
     services, and supports, including scientifically based 
     literacy instruction.
       ``(3) Construction.--Nothing in this subsection shall be 
     construed to limit or create a right to a free appropriate 
     public education under this part.
       ``(4) Reporting.--Each local educational agency that 
     develops and maintains coordinated, early intervening 
     services under this subsection shall annually report to the 
     State educational agency on--
       ``(A) the number of students served under this subsection; 
     and
       ``(B) the number of students served under this subsection 
     who subsequently receive special education and related 
     services under this title during the preceding 2-year period.
       ``(5) Coordination with elementary and secondary education 
     act of 1965.--Funds made available to carry out this 
     subsection may be used to carry out coordinated, early 
     intervening services aligned with activities funded by, and 
     carried out under, the Elementary and Secondary Education Act 
     of 1965 if such funds are used to supplement, and not 
     supplant, funds made available under the Elementary and 
     Secondary Education Act of 1965 for the activities and 
     services assisted under this subsection.
       ``(g) Direct Services by the State Educational Agency.--
       ``(1) In general.--A State educational agency shall use the 
     payments that would otherwise have been available to a local 
     educational agency or to a State agency to provide special 
     education and related services directly to children with 
     disabilities residing in the area served by that local 
     educational agency, or for whom that State agency is 
     responsible, if the State educational agency determines that 
     the local educational agency or State agency, as the case may 
     be--
       ``(A) has not provided the information needed to establish 
     the eligibility of such local educational agency or State 
     agency under this section;
       ``(B) is unable to establish and maintain programs of free 
     appropriate public education that meet the requirements of 
     subsection (a);
       ``(C) is unable or unwilling to be consolidated with 1 or 
     more local educational agencies in order to establish and 
     maintain such programs; or
       ``(D) has 1 or more children with disabilities who can best 
     be served by a regional or State program or service delivery 
     system designed to meet the needs of such children.
       ``(2) Manner and location of education and services.--The 
     State educational agency may provide special education and 
     related services under paragraph (1) in such manner and at 
     such locations (including regional or State centers) as the 
     State educational agency considers appropriate. Such 
     education and services shall be provided in accordance with 
     this part.
       ``(h) State Agency Eligibility.--Any State agency that 
     desires to receive a subgrant for any fiscal year under 
     section 611(f) shall demonstrate to the satisfaction of the 
     State educational agency that--
       ``(1) all children with disabilities who are participating 
     in programs and projects funded under this part receive a 
     free appropriate public education, and that those children 
     and their parents are provided all the rights and procedural 
     safeguards described in this part; and
       ``(2) the agency meets such other conditions of this 
     section as the Secretary determines to be appropriate.
       ``(i) Disciplinary Information.--The State may require that 
     a local educational agency include in the records of a child 
     with a disability a statement of any current or previous 
     disciplinary action that has been taken against the child and 
     transmit such statement to the same extent that such 
     disciplinary information is included in, and transmitted 
     with, the student records of nondisabled children. The 
     statement may include a description of any behavior engaged 
     in by the child that required disciplinary action, a 
     description of the disciplinary action taken, and any other 
     information that is relevant to the safety of the child and 
     other individuals involved with the child. If the State 
     adopts such a policy, and the child transfers from 1 school 
     to another, the transmission of any of the child's records 
     shall include both the child's current individualized 
     education program and any such statement of current or 
     previous disciplinary action that has been taken against the 
     child.
       ``(j) State Agency Flexibility.--
       ``(1) Adjustment to state fiscal effort in certain fiscal 
     years.--For any fiscal year for which the allotment received 
     by a State under section 611 exceeds the amount the State 
     received for the previous fiscal year and if the State in 
     school year 2003-2004 or any subsequent school year pays or 
     reimburses all local educational agencies within the State 
     from State revenue 100 percent of the non-Federal share of 
     the costs of special education and related services, the 
     State educational agency, notwithstanding paragraphs (17) and 
     (18) of section 612(a) and section 612(b), may reduce the 
     level of expenditures from State sources for the education of 
     children with disabilities by not more than 50 percent of the 
     amount of such excess.
       ``(2) Prohibition.--Notwithstanding paragraph (1), if the 
     Secretary determines that a State educational agency is 
     unable to establish, maintain, or oversee programs of free 
     appropriate public education that meet the requirements of 
     this part, or that the State needs assistance, intervention, 
     or substantial intervention under section 616(d)(2)(A), the 
     Secretary shall prohibit the State educational agency from 
     exercising the authority in paragraph (1).
       ``(3) Education activities.--If a State educational agency 
     exercises the authority under paragraph (1), the agency shall 
     use funds from State sources, in an amount equal to the 
     amount of the reduction under paragraph (1), to support 
     activities authorized under the Elementary and Secondary 
     Education Act of 1965 or to support need based student or 
     teacher higher education programs.
       ``(4) Report.--For each fiscal year for which a State 
     educational agency exercises the authority under paragraph 
     (1), the State educational agency shall report to the 
     Secretary the amount of expenditures reduced pursuant to such 
     paragraph and the activities that were funded pursuant to 
     paragraph (3).
       ``(5) Limitation.--Notwithstanding paragraph (1), a State 
     educational agency may not reduce the level of expenditures 
     described in paragraph (1) if any local educational agency in 
     the State would, as a result of such reduction, receive less 
     than 100 percent of the amount necessary to ensure that all 
     children with disabilities served by the local educational 
     agency

[[Page H9909]]

     receive a free appropriate public education from the 
     combination of Federal funds received under this title and 
     State funds received from the State educational agency.

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

       ``(a) Evaluations, Parental Consent, and Reevaluations.--
       ``(1) Initial evaluations.--
       ``(A) In general.--A State educational agency, other State 
     agency, or local educational agency shall conduct a full and 
     individual initial evaluation in accordance with this 
     paragraph and subsection (b), before the initial provision of 
     special education and related services to a child with a 
     disability under this part.
       ``(B) Request for initial evaluation.--Consistent with 
     subparagraph (D), either a parent of a child, or a State 
     educational agency, other State agency, or local educational 
     agency may initiate a request for an initial evaluation to 
     determine if the child is a child with a disability.
       ``(C) Procedures.--
       ``(i) In general.--Such initial evaluation shall consist of 
     procedures--

       ``(I) to determine whether a child is a child with a 
     disability (as defined in section 602) within 60 days of 
     receiving parental consent for the evaluation, or, if the 
     State establishes a timeframe within which the evaluation 
     must be conducted, within such timeframe; and
       ``(II) to determine the educational needs of such child.

       ``(ii) Exception.--The relevant timeframe in clause (i)(I) 
     shall not apply to a local educational agency if--

       ``(I) a child enrolls in a school served by the local 
     educational agency after the relevant timeframe in clause 
     (i)(I) has begun and prior to a determination by the child's 
     previous local educational agency as to whether the child is 
     a child with a disability (as defined in section 602), but 
     only if the subsequent local educational agency is making 
     sufficient progress to ensure a prompt completion of the 
     evaluation, and the parent and subsequent local educational 
     agency agree to a specific time when the evaluation will be 
     completed; or
       ``(II) the parent of a child repeatedly fails or refuses to 
     produce the child for the evaluation.

       ``(D) Parental consent.--
       ``(i) In general.--

       ``(I) Consent for initial evaluation.--The agency proposing 
     to conduct an initial evaluation to determine if the child 
     qualifies as a child with a disability as defined in section 
     602 shall obtain informed consent from the parent of such 
     child before conducting the evaluation. Parental consent for 
     evaluation shall not be construed as consent for placement 
     for receipt of special education and related services.
       ``(II) Consent for services.--An agency that is responsible 
     for making a free appropriate public education available to a 
     child with a disability under this part shall seek to obtain 
     informed consent from the parent of such child before 
     providing special education and related services to the 
     child.

       ``(ii) Absence of consent.--

       ``(I) For initial evaluation.--If the parent of such child 
     does not provide consent for an initial evaluation under 
     clause (i)(I), or the parent fails to respond to a request to 
     provide the consent, the local educational agency may pursue 
     the initial evaluation of the child by utilizing the 
     procedures described in section 615, except to the extent 
     inconsistent with State law relating to such parental 
     consent.
       ``(II) For services.--If the parent of such child refuses 
     to consent to services under clause (i)(II), the local 
     educational agency shall not provide special education and 
     related services to the child by utilizing the procedures 
     described in section 615.
       ``(III) Effect on agency obligations.--If the parent of 
     such child refuses to consent to the receipt of special 
     education and related services, or the parent fails to 
     respond to a request to provide such consent--

       ``(aa) the local educational agency shall not be considered 
     to be in violation of the requirement to make available a 
     free appropriate public education to the child for the 
     failure to provide such child with the special education and 
     related services for which the local educational agency 
     requests such consent; and
       ``(bb) the local educational agency shall not be required 
     to convene an IEP meeting or develop an IEP under this 
     section for the child for the special education and related 
     services for which the local educational agency requests such 
     consent.
       ``(iii) Consent for wards of the state.--

       ``(I) In general.--If the child is a ward of the State and 
     is not residing with the child's parent, the agency shall 
     make reasonable efforts to obtain the informed consent from 
     the parent (as defined in section 602) of the child for an 
     initial evaluation to determine whether the child is a child 
     with a disability.
       ``(II) Exception.--The agency shall not be required to 
     obtain informed consent from the parent of a child for an 
     initial evaluation to determine whether the child is a child 
     with a disability if--

       ``(aa) despite reasonable efforts to do so, the agency 
     cannot discover the whereabouts of the parent of the child;
       ``(bb) the rights of the parents of the child have been 
     terminated in accordance with State law; or
       ``(cc) the rights of the parent to make educational 
     decisions have been subrogated by a judge in accordance with 
     State law and consent for an initial evaluation has been 
     given by an individual appointed by the judge to represent 
     the child.
       ``(E) Rule of construction.--The screening of a student by 
     a teacher or specialist to determine appropriate 
     instructional strategies for curriculum implementation shall 
     not be considered to be an evaluation for eligibility for 
     special education and related services.
       ``(2) Reevaluations.--
       ``(A) In general.--A local educational agency shall ensure 
     that a reevaluation of each child with a disability is 
     conducted in accordance with subsections (b) and (c)--
       ``(i) if the local educational agency determines that the 
     educational or related services needs, including improved 
     academic achievement and functional performance, of the child 
     warrant a reevaluation; or
       ``(ii) if the child's parents or teacher requests a 
     reevaluation.
       ``(B) Limitation.--A reevaluation conducted under 
     subparagraph (A) shall occur--
       ``(i) not more frequently than once a year, unless the 
     parent and the local educational agency agree otherwise; and
       ``(ii) at least once every 3 years, unless the parent and 
     the local educational agency agree that a reevaluation is 
     unnecessary.
       ``(b) Evaluation Procedures.--
       ``(1) Notice.--The local educational agency shall provide 
     notice to the parents of a child with a disability, in 
     accordance with subsections (b)(3), (b)(4), and (c) of 
     section 615, that describes any evaluation procedures such 
     agency proposes to conduct.
       ``(2) Conduct of evaluation.--In conducting the evaluation, 
     the local educational agency shall--
       ``(A) use a variety of assessment tools and strategies to 
     gather relevant functional, developmental, and academic 
     information, including information provided by the parent, 
     that may assist in determining--
       ``(i) whether the child is a child with a disability; and
       ``(ii) the content of the child's individualized education 
     program, including information related to enabling the child 
     to be involved in and progress in the general education 
     curriculum, or, for preschool children, to participate in 
     appropriate activities;
       ``(B) not use any single measure or assessment as the sole 
     criterion for determining whether a child is a child with a 
     disability or determining an appropriate educational program 
     for the child; and
       ``(C) use technically sound instruments that may assess the 
     relative contribution of cognitive and behavioral factors, in 
     addition to physical or developmental factors.
       ``(3) Additional requirements.--Each local educational 
     agency shall ensure that--
       ``(A) assessments and other evaluation materials used to 
     assess a child under this section--
       ``(i) are selected and administered so as not to be 
     discriminatory on a racial or cultural basis;
       ``(ii) are provided and administered in the language and 
     form most likely to yield accurate information on what the 
     child knows and can do academically, developmentally, and 
     functionally, unless it is not feasible to so provide or 
     administer;
       ``(iii) are used for purposes for which the assessments or 
     measures are valid and reliable;
       ``(iv) are administered by trained and knowledgeable 
     personnel; and
       ``(v) are administered in accordance with any instructions 
     provided by the producer of such assessments;
       ``(B) the child is assessed in all areas of suspected 
     disability;
       ``(C) assessment tools and strategies that provide relevant 
     information that directly assists persons in determining the 
     educational needs of the child are provided; and
       ``(D) assessments of children with disabilities who 
     transfer from 1 school district to another school district in 
     the same academic year are coordinated with such children's 
     prior and subsequent schools, as necessary and as 
     expeditiously as possible, to ensure prompt completion of 
     full evaluations.
       ``(4) Determination of eligibility and educational need.--
     Upon completion of the administration of assessments and 
     other evaluation measures--
       ``(A) the determination of whether the child is a child 
     with a disability as defined in section 602(3) and the 
     educational needs of the child shall be made by a team of 
     qualified professionals and the parent of the child in 
     accordance with paragraph (5); and
       ``(B) a copy of the evaluation report and the documentation 
     of determination of eligibility shall be given to the parent.
       ``(5) Special rule for eligibility determination.--In 
     making a determination of eligibility under paragraph (4)(A), 
     a child shall not be determined to be a child with a 
     disability if the determinant factor for such determination 
     is--
       ``(A) lack of appropriate instruction in reading, including 
     in the essential components of reading instruction (as 
     defined in section 1208(3) of the Elementary and Secondary 
     Education Act of 1965);
       ``(B) lack of instruction in math; or
       ``(C) limited English proficiency.
       ``(6) Specific learning disabilities.--
       ``(A) In general.--Notwithstanding section 607(b), when 
     determining whether a child has a specific learning 
     disability as defined in section 602, a local educational 
     agency shall not be required to take into consideration 
     whether a child has a severe discrepancy between achievement 
     and intellectual ability in oral expression, listening 
     comprehension, written expression, basic reading skill, 
     reading comprehension, mathematical calculation, or 
     mathematical reasoning.
       ``(B) Additional authority.--In determining whether a child 
     has a specific learning disability, a local educational 
     agency may use a process that determines if the child 
     responds to scientific, research-based intervention as a part 
     of the evaluation procedures described in paragraphs (2) and 
     (3).

[[Page H9910]]

       ``(c) Additional Requirements For Evaluation and 
     Reevaluations.--
       ``(1) Review of existing evaluation data.--As part of an 
     initial evaluation (if appropriate) and as part of any 
     reevaluation under this section, the IEP Team and other 
     qualified professionals, as appropriate, shall--
       ``(A) review existing evaluation data on the child, 
     including--
       ``(i) evaluations and information provided by the parents 
     of the child;
       ``(ii) current classroom-based, local, or State 
     assessments, and classroom-based observations; and
       ``(iii) observations by teachers and related services 
     providers; and
       ``(B) on the basis of that review, and input from the 
     child's parents, identify what additional data, if any, are 
     needed to determine--
       ``(i) whether the child is a child with a disability as 
     defined in section 602(3), and the educational needs of the 
     child, or, in case of a reevaluation of a child, whether the 
     child continues to have such a disability and such 
     educational needs;
       ``(ii) the present levels of academic achievement and 
     related developmental needs of the child;
       ``(iii) whether the child needs special education and 
     related services, or in the case of a reevaluation of a 
     child, whether the child continues to need special education 
     and related services; and
       ``(iv) whether any additions or modifications to the 
     special education and related services are needed to enable 
     the child to meet the measurable annual goals set out in the 
     individualized education program of the child and to 
     participate, as appropriate, in the general education 
     curriculum.
       ``(2) Source of data.--The local educational agency shall 
     administer such assessments and other evaluation measures as 
     may be needed to produce the data identified by the IEP Team 
     under paragraph (1)(B).
       ``(3) Parental consent.--Each local educational agency 
     shall obtain informed parental consent, in accordance with 
     subsection (a)(1)(D), prior to conducting any reevaluation of 
     a child with a disability, except that such informed parental 
     consent need not be obtained if the local educational agency 
     can demonstrate that it had taken reasonable measures to 
     obtain such consent and the child's parent has failed to 
     respond.
       ``(4) Requirements if additional data are not needed.--If 
     the IEP Team and other qualified professionals, as 
     appropriate, determine that no additional data are needed to 
     determine whether the child continues to be a child with a 
     disability and to determine the child's educational needs, 
     the local educational agency--
       ``(A) shall notify the child's parents of--
       ``(i) that determination and the reasons for the 
     determination; and
       ``(ii) the right of such parents to request an assessment 
     to determine whether the child continues to be a child with a 
     disability and to determine the child's educational needs; 
     and
       ``(B) shall not be required to conduct such an assessment 
     unless requested to by the child's parents.
       ``(5) Evaluations before change in eligibility.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a local educational agency shall evaluate a child with a 
     disability in accordance with this section before determining 
     that the child is no longer a child with a disability.
       ``(B) Exception.--
       ``(i) In general.--The evaluation described in subparagraph 
     (A) shall not be required before the termination of a child's 
     eligibility under this part due to graduation from secondary 
     school with a regular diploma, or due to exceeding the age 
     eligibility for a free appropriate public education under 
     State law.
       ``(ii) Summary of performance.--For a child whose 
     eligibility under this part terminates under circumstances 
     described in clause (i), a local educational agency shall 
     provide the child with a summary of the child's academic 
     achievement and functional performance, which shall include 
     recommendations on how to assist the child in meeting the 
     child's postsecondary goals.
       ``(d) Individualized Education Programs.--
       ``(1) Definitions.--In this title:
       ``(A) Individualized education program.--
       ``(i) In general.--The term `individualized education 
     program' or `IEP' means a written statement for each child 
     with a disability that is developed, reviewed, and revised in 
     accordance with this section and that includes--

       ``(I) a statement of the child's present levels of academic 
     achievement and functional performance, including--

       ``(aa) how the child's disability affects the child's 
     involvement and progress in the general education curriculum;
       ``(bb) for preschool children, as appropriate, how the 
     disability affects the child's participation in appropriate 
     activities; and
       ``(cc) for children with disabilities who take alternate 
     assessments aligned to alternate achievement standards, a 
     description of benchmarks or short-term objectives;

       ``(II) a statement of measurable annual goals, including 
     academic and functional goals, designed to--

       ``(aa) meet the child's needs that result from the child's 
     disability to enable the child to be involved in and make 
     progress in the general education curriculum; and
       ``(bb) meet each of the child's other educational needs 
     that result from the child's disability;

       ``(III) a description of how the child's progress toward 
     meeting the annual goals described in subclause (II) will be 
     measured and when periodic reports on the progress the child 
     is making toward meeting the annual goals (such as through 
     the use of quarterly or other periodic reports, concurrent 
     with the issuance of report cards) will be provided;
       ``(IV) a statement of the special education and related 
     services and supplementary aids and services, based on peer-
     reviewed research to the extent practicable, to be provided 
     to the child, or on behalf of the child, and a statement of 
     the program modifications or supports for school personnel 
     that will be provided for the child--

       ``(aa) to advance appropriately toward attaining the annual 
     goals;
       ``(bb) to be involved in and make progress in the general 
     education curriculum in accordance with subclause (I) and to 
     participate in extracurricular and other nonacademic 
     activities; and
       ``(cc) to be educated and participate with other children 
     with disabilities and nondisabled children in the activities 
     described in this subparagraph;

       ``(V) an explanation of the extent, if any, to which the 
     child will not participate with nondisabled children in the 
     regular class and in the activities described in subclause 
     (IV)(cc);
       ``(VI)(aa) a statement of any individual appropriate 
     accommodations that are necessary to measure the academic 
     achievement and functional performance of the child on State 
     and districtwide assessments consistent with section 
     612(a)(16)(A); and
       ``(bb) if the IEP Team determines that the child shall take 
     an alternate assessment on a particular State or districtwide 
     assessment of student achievement, a statement of why--

       ``(AA) the child cannot participate in the regular 
     assessment; and
       ``(BB) the particular alternate assessment selected is 
     appropriate for the child;

       ``(VII) the projected date for the beginning of the 
     services and modifications described in subclause (IV), and 
     the anticipated frequency, location, and duration of those 
     services and modifications; and
       ``(VIII) beginning not later than the first IEP to be in 
     effect when the child is 16, and updated annually 
     thereafter--

       ``(aa) appropriate measurable postsecondary goals based 
     upon age appropriate transition assessments related to 
     training, education, employment, and, where appropriate, 
     independent living skills;
       ``(bb) the transition services (including courses of study) 
     needed to assist the child in reaching those goals; and
       ``(cc) beginning not later than 1 year before the child 
     reaches the age of majority under State law, a statement that 
     the child has been informed of the child's rights under this 
     title, if any, that will transfer to the child on reaching 
     the age of majority under section 615(m).
       ``(ii) Rule of construction.--Nothing in this section shall 
     be construed to require--

       ``(I) that additional information be included in a child's 
     IEP beyond what is explicitly required in this section; and
       ``(II) the IEP Team to include information under 1 
     component of a child's IEP that is already contained under 
     another component of such IEP.

       ``(B) Individualized education program team.--The term 
     `individualized education program team' or `IEP Team' means a 
     group of individuals composed of--
       ``(i) the parents of a child with a disability;
       ``(ii) not less than 1 regular education teacher of such 
     child (if the child is, or may be, participating in the 
     regular education environment);
       ``(iii) not less than 1 special education teacher, or where 
     appropriate, not less than 1 special education provider of 
     such child;
       ``(iv) a representative of the local educational agency 
     who--

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

       ``(v) an individual who can interpret the instructional 
     implications of evaluation results, who may be a member of 
     the team described in clauses (ii) through (vi);
       ``(vi) at the discretion of the parent or the agency, other 
     individuals who have knowledge or special expertise regarding 
     the child, including related services personnel as 
     appropriate; and
       ``(vii) whenever appropriate, the child with a disability.
       ``(C) IEP team attendance.--
       ``(i) Attendance not necessary.--A member of the IEP Team 
     shall not be required to attend an IEP meeting, in whole or 
     in part, if the parent of a child with a disability and the 
     local educational agency agree that the attendance of such 
     member is not necessary because the member's area of the 
     curriculum or related services is not being modified or 
     discussed in the meeting.
       ``(ii) Excusal.--A member of the IEP Team may be excused 
     from attending an IEP meeting, in whole or in part, when the 
     meeting involves a modification to or discussion of the 
     member's area of the curriculum or related services, if--

       ``(I) the parent and the local educational agency consent 
     to the excusal; and
       ``(II) the member submits, in writing to the parent and the 
     IEP Team, input into the development of the IEP prior to the 
     meeting.

       ``(iii) Written agreement and consent required.--A parent's 
     agreement under clause (i) and consent under clause (ii) 
     shall be in writing.
       ``(D) IEP team transition.--In the case of a child who was 
     previously served under part C, an invitation to the initial 
     IEP meeting shall, at the request of the parent, be sent to 
     the part C service coordinator or other representatives of 
     the part C system to assist with the smooth transition of 
     services.
       ``(2) Requirement that program be in effect.--
       ``(A) In general.--At the beginning of each school year, 
     each local educational agency,

[[Page H9911]]

     State educational agency, or other State agency, as the case 
     may be, shall have in effect, for each child with a 
     disability in the agency's jurisdiction, an individualized 
     education program, as defined in paragraph (1)(A).
       ``(B) Program for child aged 3 through 5.--In the case of a 
     child with a disability aged 3 through 5 (or, at the 
     discretion of the State educational agency, a 2-year-old 
     child with a disability who will turn age 3 during the school 
     year), the IEP Team shall consider the individualized family 
     service plan that contains the material described in section 
     636, and that is developed in accordance with this section, 
     and the individualized family service plan may serve as the 
     IEP of the child if using that plan as the IEP is--
       ``(i) consistent with State policy; and
       ``(ii) agreed to by the agency and the child's parents.
       ``(C) Program for children who transfer school districts.--
       ``(i) In general.--

       ``(I) Transfer within the same state.--In the case of a 
     child with a disability who transfers school districts within 
     the same academic year, who enrolls in a new school, and who 
     had an IEP that was in effect in the same State, the local 
     educational agency shall provide such child with a free 
     appropriate public education, including services comparable 
     to those described in the previously held IEP, in 
     consultation with the parents until such time as the local 
     educational agency adopts the previously held IEP or 
     develops, adopts, and implements a new IEP that is consistent 
     with Federal and State law.
       ``(II) Transfer outside state.--In the case of a child with 
     a disability who transfers school districts within the same 
     academic year, who enrolls in a new school, and who had an 
     IEP that was in effect in another State, the local 
     educational agency shall provide such child with a free 
     appropriate public education, including services comparable 
     to those described in the previously held IEP, in 
     consultation with the parents until such time as the local 
     educational agency conducts an evaluation pursuant to 
     subsection (a)(1), if determined to be necessary by such 
     agency, and develops a new IEP, if appropriate, that is 
     consistent with Federal and State law.

       ``(ii) Transmittal of records.--To facilitate the 
     transition for a child described in clause (i)--

       ``(I) the new school in which the child enrolls shall take 
     reasonable steps to promptly obtain the child's records, 
     including the IEP and supporting documents and any other 
     records relating to the provision of special education or 
     related services to the child, from the previous school in 
     which the child was enrolled, pursuant to section 99.31(a)(2) 
     of title 34, Code of Federal Regulations; and
       ``(II) the previous school in which the child was enrolled 
     shall take reasonable steps to promptly respond to such 
     request from the new school.

       ``(3) Development of iep.--
       ``(A) In general.--In developing each child's IEP, the IEP 
     Team, subject to subparagraph (C), shall consider--
       ``(i) the strengths of the child;
       ``(ii) the concerns of the parents for enhancing the 
     education of their child;
       ``(iii) the results of the initial evaluation or most 
     recent evaluation of the child; and
       ``(iv) the academic, developmental, and functional needs of 
     the child.
       ``(B) Consideration of special factors.--The IEP Team 
     shall--
       ``(i) in the case of a child whose behavior impedes the 
     child's learning or that of others, consider the use of 
     positive behavioral interventions and supports, and other 
     strategies, to address that behavior;
       ``(ii) in the case of a child with limited English 
     proficiency, consider the language needs of the child as such 
     needs relate to the child's IEP;
       ``(iii) in the case of a child who is blind or visually 
     impaired, provide for instruction in Braille and the use of 
     Braille unless the IEP Team determines, after an evaluation 
     of the child's reading and writing skills, needs, and 
     appropriate reading and writing media (including an 
     evaluation of the child's future needs for instruction in 
     Braille or the use of Braille), that instruction in Braille 
     or the use of Braille is not appropriate for the child;
       ``(iv) consider the communication needs of the child, and 
     in the case of a child who is deaf or hard of hearing, 
     consider the child's language and communication needs, 
     opportunities for direct communications with peers and 
     professional personnel in the child's language and 
     communication mode, academic level, and full range of needs, 
     including opportunities for direct instruction in the child's 
     language and communication mode; and
       ``(v) consider whether the child needs assistive technology 
     devices and services.
       ``(C) Requirement with respect to regular education 
     teacher.--A regular education teacher of the child, as a 
     member of the IEP Team, shall, to the extent appropriate, 
     participate in the development of the IEP of the child, 
     including the determination of appropriate positive 
     behavioral interventions and supports, and other strategies, 
     and the determination of supplementary aids and services, 
     program modifications, and support for school personnel 
     consistent with paragraph (1)(A)(i)(IV).
       ``(D) Agreement.--In making changes to a child's IEP after 
     the annual IEP meeting for a school year, the parent of a 
     child with a disability and the local educational agency may 
     agree not to convene an IEP meeting for the purposes of 
     making such changes, and instead may develop a written 
     document to amend or modify the child's current IEP.
       ``(E) Consolidation of iep team meetings.--To the extent 
     possible, the local educational agency shall encourage the 
     consolidation of reevaluation meetings for the child and 
     other IEP Team meetings for the child.
       ``(F) Amendments.--Changes to the IEP may be made either by 
     the entire IEP Team or, as provided in subparagraph (D), by 
     amending the IEP rather than by redrafting the entire IEP. 
     Upon request, a parent shall be provided with a revised copy 
     of the IEP with the amendments incorporated.
       ``(4) Review and revision of iep.--
       ``(A) In general.--The local educational agency shall 
     ensure that, subject to subparagraph (B), the IEP Team--
       ``(i) reviews the child's IEP periodically, but not less 
     frequently than annually, to determine whether the annual 
     goals for the child are being achieved; and
       ``(ii) revises the IEP as appropriate to address--

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

       ``(B) Requirement with respect to regular education 
     teacher.--A regular education teacher of the child, as a 
     member of the IEP Team, shall, consistent with paragraph 
     (1)(C), participate in the review and revision of the IEP of 
     the child.
       ``(5) Multi-year iep demonstration.--
       ``(A) Pilot program.--
       ``(i) Purpose.--The purpose of this paragraph is to provide 
     an opportunity for States to allow parents and local 
     educational agencies the opportunity for long-term planning 
     by offering the option of developing a comprehensive multi-
     year IEP, not to exceed 3 years, that is designed to coincide 
     with the natural transition points for the child.
       ``(ii) Authorization.--In order to carry out the purpose of 
     this paragraph, the Secretary is authorized to approve not 
     more than 15 proposals from States to carry out the activity 
     described in clause (i).
       ``(iii) Proposal.--

       ``(I) In general.--A State desiring to participate in the 
     program under this paragraph shall submit a proposal to the 
     Secretary at such time and in such manner as the Secretary 
     may reasonably require.
       ``(II) Content.--The proposal shall include--

       ``(aa) assurances that the development of a multi-year IEP 
     under this paragraph is optional for parents;
       ``(bb) assurances that the parent is required to provide 
     informed consent before a comprehensive multi-year IEP is 
     developed;
       ``(cc) a list of required elements for each multi-year IEP, 
     including--
       ``(AA) measurable goals pursuant to paragraph 
     (1)(A)(i)(II), coinciding with natural transition points for 
     the child, that will enable the child to be involved in and 
     make progress in the general education curriculum and that 
     will meet the child's other needs that result from the 
     child's disability; and
       ``(BB) measurable annual goals for determining progress 
     toward meeting the goals described in subitem (AA); and
       ``(dd) a description of the process for the review and 
     revision of each multi-year IEP, including--
       ``(AA) a review by the IEP Team of the child's multi-year 
     IEP at each of the child's natural transition points;
       ``(BB) in years other than a child's natural transition 
     points, an annual review of the child's IEP to determine the 
     child's current levels of progress and whether the annual 
     goals for the child are being achieved, and a requirement to 
     amend the IEP, as appropriate, to enable the child to 
     continue to meet the measurable goals set out in the IEP;
       ``(CC) if the IEP Team determines on the basis of a review 
     that the child is not making sufficient progress toward the 
     goals described in the multi-year IEP, a requirement that the 
     local educational agency shall ensure that the IEP Team 
     carries out a more thorough review of the IEP in accordance 
     with paragraph (4) within 30 calendar days; and
       ``(DD) at the request of the parent, a requirement that the 
     IEP Team shall conduct a review of the child's multi-year IEP 
     rather than or subsequent to an annual review.
       ``(B) Report.--Beginning 2 years after the date of 
     enactment of the Individuals with Disabilities Education 
     Improvement Act of 2004, the Secretary shall submit an annual 
     report to the Committee on Education and the Workforce of the 
     House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions of the Senate regarding the 
     effectiveness of the program under this paragraph and any 
     specific recommendations for broader implementation of such 
     program, including--
       ``(i) reducing--

       ``(I) the paperwork burden on teachers, principals, 
     administrators, and related service providers; and
       ``(II) noninstructional time spent by teachers in complying 
     with this part;

       ``(ii) enhancing longer-term educational planning;
       ``(iii) improving positive outcomes for children with 
     disabilities;
       ``(iv) promoting collaboration between IEP Team members; 
     and
       ``(v) ensuring satisfaction of family members.
       ``(C) Definition.--In this paragraph, the term `natural 
     transition points' means those periods that are close in time 
     to the transition of a child with a disability from preschool 
     to elementary grades, from elementary grades to middle or 
     junior high school grades, from middle or junior high school 
     grades to secondary school grades, and from secondary school 
     grades to post-secondary activities, but in no case a period 
     longer than 3 years.

[[Page H9912]]

       ``(6) Failure to meet transition objectives.--If a 
     participating agency, other than the local educational 
     agency, fails to provide the transition services described in 
     the IEP in accordance with paragraph (1)(A)(i)(VIII), the 
     local educational agency shall reconvene the IEP Team to 
     identify alternative strategies to meet the transition 
     objectives for the child set out in the IEP.
       ``(7) Children with disabilities in adult prisons.--
       ``(A) In general.--The following requirements shall not 
     apply to children with disabilities who are convicted as 
     adults under State law and incarcerated in adult prisons:
       ``(i) The requirements contained in section 612(a)(16) and 
     paragraph (1)(A)(i)(VI) (relating to participation of 
     children with disabilities in general assessments).
       ``(ii) The requirements of items (aa) and (bb) of paragraph 
     (1)(A)(i)(VIII) (relating to transition planning and 
     transition services), do not apply with respect to such 
     children whose eligibility under this part will end, because 
     of such children's age, before such children will be released 
     from prison.
       ``(B) Additional requirement.--If a child with a disability 
     is convicted as an adult under State law and incarcerated in 
     an adult prison, the child's IEP Team may modify the child's 
     IEP or placement notwithstanding the requirements of sections 
     612(a)(5)(A) and paragraph (1)(A) if the State has 
     demonstrated a bona fide security or compelling penological 
     interest that cannot otherwise be accommodated.
       ``(e) Educational Placements.--Each local educational 
     agency or State educational agency shall ensure that the 
     parents of each child with a disability are members of any 
     group that makes decisions on the educational placement of 
     their child.
       ``(f) Alternative Means of Meeting Participation.--When 
     conducting IEP team meetings and placement meetings pursuant 
     to this section, section 615(e), and section 615(f)(1)(B), 
     and carrying out administrative matters under section 615 
     (such as scheduling, exchange of witness lists, and status 
     conferences), the parent of a child with a disability and a 
     local educational agency may agree to use alternative 
     means of meeting participation, such as video conferences 
     and conference calls.

     ``SEC. 615. PROCEDURAL SAFEGUARDS.

       ``(a) Establishment of Procedures.--Any State educational 
     agency, State agency, or local educational agency that 
     receives assistance under this part shall establish and 
     maintain procedures in accordance with this section to ensure 
     that children with disabilities and their parents are 
     guaranteed procedural safeguards with respect to the 
     provision of a free appropriate public education by such 
     agencies.
       ``(b) Types of Procedures.--The procedures required by this 
     section shall include the following:
       ``(1) An opportunity for the parents of a child with a 
     disability to examine all records relating to such child and 
     to participate in meetings with respect to the 
     identification, evaluation, and educational placement of the 
     child, and the provision of a free appropriate public 
     education to such child, and to obtain an independent 
     educational evaluation of the child.
       ``(2)(A) Procedures to protect the rights of the child 
     whenever the parents of the child are not known, the agency 
     cannot, after reasonable efforts, locate the parents, or the 
     child is a ward of the State, including the assignment of an 
     individual to act as a surrogate for the parents, which 
     surrogate shall not be an employee of the State educational 
     agency, the local educational agency, or any other agency 
     that is involved in the education or care of the child. In 
     the case of--
       ``(i) a child who is a ward of the State, such surrogate 
     may alternatively be appointed by the judge overseeing the 
     child's care provided that the surrogate meets the 
     requirements of this paragraph; and
       ``(ii) an unaccompanied homeless youth as defined in 
     section 725(6) of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11434a(6)), the local educational agency shall 
     appoint a surrogate in accordance with this paragraph.
       ``(B) The State shall make reasonable efforts to ensure the 
     assignment of a surrogate not more than 30 days after there 
     is a determination by the agency that the child needs a 
     surrogate.
       ``(3) Written prior notice to the parents of the child, in 
     accordance with subsection (c)(1), whenever the local 
     educational agency--
       ``(A) proposes to initiate or change; or
       ``(B) refuses to initiate or change,
     the identification, evaluation, or educational placement of 
     the child, or the provision of a free appropriate public 
     education to the child.
       ``(4) Procedures designed to ensure that the notice 
     required by paragraph (3) is in the native language of the 
     parents, unless it clearly is not feasible to do so.
       ``(5) An opportunity for mediation, in accordance with 
     subsection (e).
       ``(6) An opportunity for any party to present a complaint--
       ``(A) with respect to any matter relating to the 
     identification, evaluation, or educational placement of the 
     child, or the provision of a free appropriate public 
     education to such child; and
       ``(B) which sets forth an alleged violation that occurred 
     not more than 2 years before the date the parent or public 
     agency knew or should have known about the alleged action 
     that forms the basis of the complaint, or, if the State has 
     an explicit time limitation for presenting such a complaint 
     under this part, in such time as the State law allows, except 
     that the exceptions to the timeline described in subsection 
     (f)(3)(D) shall apply to the timeline described in this 
     subparagraph.
       ``(7)(A) Procedures that require either party, or the 
     attorney representing a party, to provide due process 
     complaint notice in accordance with subsection (c)(2) (which 
     shall remain confidential)--
       ``(i) to the other party, in the complaint filed under 
     paragraph (6), and forward a copy of such notice to the State 
     educational agency; and
       ``(ii) that shall include--
       ``(I) the name of the child, the address of the residence 
     of the child (or available contact information in the case of 
     a homeless child), and the name of the school the child is 
     attending;
       ``(II) in the case of a homeless child or youth (within the 
     meaning of section 725(2) of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11434a(2)), available contact 
     information for the child and the name of the school the 
     child is attending;
       ``(III) a description of the nature of the problem of the 
     child relating to such proposed initiation or change, 
     including facts relating to such problem; and
       ``(IV) a proposed resolution of the problem to the extent 
     known and available to the party at the time.
       ``(B) A requirement that a party may not have a due process 
     hearing until the party, or the attorney representing the 
     party, files a notice that meets the requirements of 
     subparagraph (A)(ii).
       ``(8) Procedures that require the State educational agency 
     to develop a model form to assist parents in filing a 
     complaint and due process complaint notice in accordance with 
     paragraphs (6) and (7), respectively.
       ``(c) Notification Requirements.--
       ``(1) Content of prior written notice.--The notice required 
     by subsection (b)(3) shall include--
       ``(A) a description of the action proposed or refused by 
     the agency;
       ``(B) an explanation of why the agency proposes or refuses 
     to take the action and a description of each evaluation 
     procedure, assessment, record, or report the agency used as a 
     basis for the proposed or refused action;
       ``(C) a statement that the parents of a child with a 
     disability have protection under the procedural safeguards of 
     this part and, if this notice is not an initial referral for 
     evaluation, the means by which a copy of a description of the 
     procedural safeguards can be obtained;
       ``(D) sources for parents to contact to obtain assistance 
     in understanding the provisions of this part;
       ``(E) a description of other options considered by the IEP 
     Team and the reason why those options were rejected; and
       ``(F) a description of the factors that are relevant to the 
     agency's proposal or refusal.
       ``(2) Due process complaint notice.--
       ``(A) Complaint.--The due process complaint notice required 
     under subsection (b)(7)(A) shall be deemed to be sufficient 
     unless the party receiving the notice notifies the hearing 
     officer and the other party in writing that the receiving 
     party believes the notice has not met the requirements of 
     subsection (b)(7)(A).
       ``(B) Response to complaint.--
       ``(i) Local educational agency response.--

       ``(I) In general.--If the local educational agency has not 
     sent a prior written notice to the parent regarding the 
     subject matter contained in the parent's due process 
     complaint notice, such local educational agency shall, within 
     10 days of receiving the complaint, send to the parent a 
     response that shall include--

       ``(aa) an explanation of why the agency proposed or refused 
     to take the action raised in the complaint;
       ``(bb) a description of other options that the IEP Team 
     considered and the reasons why those options were rejected;
       ``(cc) a description of each evaluation procedure, 
     assessment, record, or report the agency used as the basis 
     for the proposed or refused action; and
       ``(dd) a description of the factors that are relevant to 
     the agency's proposal or refusal.

       ``(II) Sufficiency.-- A response filed by a local 
     educational agency pursuant to subclause (I) shall not be 
     construed to preclude such local educational agency from 
     asserting that the parent's due process complaint notice was 
     insufficient where appropriate.

       ``(ii) Other party response.--Except as provided in clause 
     (i), the non-complaining party shall, within 10 days of 
     receiving the complaint, send to the complaint a response 
     that specifically addresses the issues raised in the 
     complaint.
       ``(C) Timing.--The party providing a hearing officer 
     notification under subparagraph (A) shall provide the 
     notification within 15 days of receiving the complaint.
       ``(D) Determination.--Within 5 days of receipt of the 
     notification provided under subparagraph (C), the hearing 
     officer shall make a determination on the face of the notice 
     of whether the notification meets the requirements of 
     subsection (b)(7)(A), and shall immediately notify the 
     parties in writing of such determination.
       ``(E) Amended complaint notice.--
       ``(i) In general.--A party may amend its due process 
     complaint notice only if--

       ``(I) the other party consents in writing to such amendment 
     and is given the opportunity to resolve the complaint through 
     a meeting held pursuant to subsection (f)(1)(B); or
       ``(II) the hearing officer grants permission, except that 
     the hearing officer may only grant such permission at any 
     time not later than 5 days before a due process hearing 
     occurs.

       ``(ii) Applicable timeline.--The applicable timeline for a 
     due process hearing under this part shall recommence at the 
     time the party files an amended notice, including the 
     timeline under subsection (f)(1)(B).
       ``(d) Procedural Safeguards Notice.--
       ``(1) In general.--
       ``(A) Copy to parents.--A copy of the procedural safeguards 
     available to the parents of a child with a disability shall 
     be given to the parents only 1 time a year, except that a 
     copy also shall be given to the parents--

[[Page H9913]]

       ``(i) upon initial referral or parental request for 
     evaluation;
       ``(ii) upon the first occurrence of the filing of a 
     complaint under subsection (b)(6); and
       ``(iii) upon request by a parent.
       ``(B) Internet website.--A local educational agency may 
     place a current copy of the procedural safeguards notice on 
     its Internet website if such website exists.
       ``(2) Contents.--The procedural safeguards notice shall 
     include a full explanation of the procedural safeguards, 
     written in the native language of the parents (unless it 
     clearly is not feasible to do so) and written in an easily 
     understandable manner, available under this section and under 
     regulations promulgated by the Secretary relating to--
       ``(A) independent educational evaluation;
       ``(B) prior written notice;
       ``(C) parental consent;
       ``(D) access to educational records;
       ``(E) the opportunity to present and resolve complaints, 
     including--
       ``(i) the time period in which to make a complaint;
       ``(ii) the opportunity for the agency to resolve the 
     complaint; and
       ``(iii) the availability of mediation;
       ``(F) the child's placement during pendency of due process 
     proceedings;
       ``(G) procedures for students who are subject to placement 
     in an interim alternative educational setting;
       ``(H) requirements for unilateral placement by parents of 
     children in private schools at public expense;
       ``(I) due process hearings, including requirements for 
     disclosure of evaluation results and recommendations;
       ``(J) State-level appeals (if applicable in that State);
       ``(K) civil actions, including the time period in which to 
     file such actions; and
       ``(L) attorneys' fees.
       ``(e) Mediation.--
       ``(1) In general.--Any State educational agency or local 
     educational agency that receives assistance under this part 
     shall ensure that procedures are established and implemented 
     to allow parties to disputes involving any matter, including 
     matters arising prior to the filing of a complaint pursuant 
     to subsection (b)(6), to resolve such disputes through a 
     mediation process.
       ``(2) Requirements.--Such procedures shall meet the 
     following requirements:
       ``(A) The procedures shall ensure that the mediation 
     process--
       ``(i) is voluntary on the part of the parties;
       ``(ii) is not used to deny or delay a parent's right to a 
     due process hearing under subsection (f), or to deny any 
     other rights afforded under this part; and
       ``(iii) is conducted by a qualified and impartial mediator 
     who is trained in effective mediation techniques.
       ``(B) Opportunity to meet with a disinterested party.--A 
     local educational agency or a State agency may establish 
     procedures to offer to parents and schools that choose not to 
     use the mediation process, an opportunity to meet, at a time 
     and location convenient to the parents, with a disinterested 
     party who is under contract with--
       ``(i) a parent training and information center or community 
     parent resource center in the State established under section 
     671 or 672; or
       ``(ii) an appropriate alternative dispute resolution 
     entity,

     to encourage the use, and explain the benefits, of the 
     mediation process to the parents.
       ``(C) List of qualified mediators.--The State shall 
     maintain a list of individuals who are qualified mediators 
     and knowledgeable in laws and regulations relating to the 
     provision of special education and related services.
       ``(D) Costs.--The State shall bear the cost of the 
     mediation process, including the costs of meetings described 
     in subparagraph (B).
       ``(E) Scheduling and location.--Each session in the 
     mediation process shall be scheduled in a timely manner and 
     shall be held in a location that is convenient to the parties 
     to the dispute.
       ``(F) Written agreement.--In the case that a resolution is 
     reached to resolve the complaint through the mediation 
     process, the parties shall execute a legally binding 
     agreement that sets forth such resolution and that--
       ``(i) states that all discussions that occurred during the 
     mediation process shall be confidential and may not be used 
     as evidence in any subsequent due process hearing or civil 
     proceeding;
       ``(ii) is signed by both the parent and a representative of 
     the agency who has the authority to bind such agency; and
       ``(iii) is enforceable in any State court of competent 
     jurisdiction or in a district court of the United States.
       ``(G) Mediation discussions.--Discussions that occur during 
     the mediation process shall be confidential and may not be 
     used as evidence in any subsequent due process hearing or 
     civil proceeding.
       ``(f) Impartial Due Process Hearing.--
       ``(1) In general.--
       ``(A) Hearing.--Whenever a complaint has been received 
     under subsection (b)(6) or (k), the parents or the local 
     educational agency involved in such complaint shall have an 
     opportunity for an impartial due process hearing, which shall 
     be conducted by the State educational agency or by the local 
     educational agency, as determined by State law or by the 
     State educational agency.
       ``(B) Resolution session.--
       ``(i) Preliminary meeting.--Prior to the opportunity for an 
     impartial due process hearing under subparagraph (A), the 
     local educational agency shall convene a meeting with the 
     parents and the relevant member or members of the IEP Team 
     who have specific knowledge of the facts identified in the 
     complaint--

       ``(I) within 15 days of receiving notice of the parents' 
     complaint;
       ``(II) which shall include a representative of the agency 
     who has decisionmaking authority on behalf of such agency;
       ``(III) which may not include an attorney of the local 
     educational agency unless the parent is accompanied by an 
     attorney; and
       ``(IV) where the parents of the child discuss their 
     complaint, and the facts that form the basis of the 
     complaint, and the local educational agency is provided the 
     opportunity to resolve the complaint,

     unless the parents and the local educational agency agree in 
     writing to waive such meeting, or agree to use the mediation 
     process described in subsection (e).
       ``(ii) Hearing.--If the local educational agency has not 
     resolved the complaint to the satisfaction of the parents 
     within 30 days of the receipt of the complaint, the due 
     process hearing may occur, and all of the applicable 
     timelines for a due process hearing under this part shall 
     commence.
       ``(iii) Written settlement agreement.--In the case that a 
     resolution is reached to resolve the complaint at a meeting 
     described in clause (i), the parties shall execute a legally 
     binding agreement that is--

       ``(I) signed by both the parent and a representative of the 
     agency who has the authority to bind such agency; and
       ``(II) enforceable in any State court of competent 
     jurisdiction or in a district court of the United States.

       ``(iv) Review period.--If the parties execute an agreement 
     pursuant to clause (iii), a party may void such agreement 
     within 3 business days of the agreement's execution.
       ``(2) Disclosure of evaluations and recommendations.--
       ``(A) In general.--Not less than 5 business days prior to a 
     hearing conducted pursuant to paragraph (1), each party shall 
     disclose to all other parties all evaluations completed by 
     that date, and recommendations based on the offering party's 
     evaluations, that the party intends to use at the hearing.
       ``(B) Failure to disclose.--A hearing officer may bar any 
     party that fails to comply with subparagraph (A) from 
     introducing the relevant evaluation or recommendation at the 
     hearing without the consent of the other party.
       ``(3) Limitations on hearing.--
       ``(A) Person conducting hearing.--A hearing officer 
     conducting a hearing pursuant to paragraph (1)(A) shall, at a 
     minimum--
       ``(i) not be--

       ``(I) an employee of the State educational agency or the 
     local educational agency involved in the education or care of 
     the child; or
       ``(II) a person having a personal or professional interest 
     that conflicts with the person's objectivity in the hearing;

       ``(ii) possess knowledge of, and the ability to understand, 
     the provisions of this title, Federal and State regulations 
     pertaining to this title, and legal interpretations of this 
     title by Federal and State courts;
       ``(iii) possess the knowledge and ability to conduct 
     hearings in accordance with appropriate, standard legal 
     practice; and
       ``(iv) possess the knowledge and ability to render and 
     write decisions in accordance with appropriate, standard 
     legal practice.
       ``(B) Subject matter of hearing.--The party requesting the 
     due process hearing shall not be allowed to raise issues at 
     the due process hearing that were not raised in the notice 
     filed under subsection (b)(7), unless the other party agrees 
     otherwise.
       ``(C) Timeline for requesting hearing.--A parent or agency 
     shall request an impartial due process hearing within 2 years 
     of the date the parent or agency knew or should have known 
     about the alleged action that forms the basis of the 
     complaint, or, if the State has an explicit time limitation 
     for requesting such a hearing under this part, in such time 
     as the State law allows.
       ``(D) Exceptions to the timeline.--The timeline described 
     in subparagraph (C) shall not apply to a parent if the parent 
     was prevented from requesting the hearing due to--
       ``(i) specific misrepresentations by the local educational 
     agency that it had resolved the problem forming the basis of 
     the complaint; or
       ``(ii) the local educational agency's withholding of 
     information from the parent that was required under this part 
     to be provided to the parent.
       ``(E) Decision of hearing officer.--
       ``(i) In general.--Subject to clause (ii), a decision made 
     by a hearing officer shall be made on substantive grounds 
     based on a determination of whether the child received a free 
     appropriate public education.
       ``(ii) Procedural issues.--In matters alleging a procedural 
     violation, a hearing officer may find that a child did not 
     receive a free appropriate public education only if the 
     procedural inadequacies--

       ``(I) impeded the child's right to a free appropriate 
     public education;
       ``(II) significantly impeded the parents' opportunity to 
     participate in the decisionmaking process regarding the 
     provision of a free appropriate public education to the 
     parents' child; or
       ``(III) caused a deprivation of educational benefits.

       ``(iii) Rule of construction.--Nothing in this subparagraph 
     shall be construed to preclude a hearing officer from 
     ordering a local educational agency to comply with procedural 
     requirements under this section.
       ``(F) Rule of construction.--Nothing in this paragraph 
     shall be construed to affect the right of a parent to file a 
     complaint with the State educational agency.
       ``(g) Appeal.--
       ``(1) In general.--If the hearing required by subsection 
     (f) is conducted by a local educational agency, any party 
     aggrieved by the

[[Page H9914]]

     findings and decision rendered in such a hearing may appeal 
     such findings and decision to the State educational agency.
       ``(2) Impartial review and independent decision.--The State 
     educational agency shall conduct an impartial review of the 
     findings and decision appealed under paragraph (1). The 
     officer conducting such review shall make an independent 
     decision upon completion of such review.
       ``(h) Safeguards.--Any party to a hearing conducted 
     pursuant to subsection (f) or (k), or an appeal conducted 
     pursuant to subsection (g), shall be accorded--
       ``(1) the right to be accompanied and advised by counsel 
     and by individuals with special knowledge or training with 
     respect to the problems of children with disabilities;
       ``(2) the right to present evidence and confront, cross-
     examine, and compel the attendance of witnesses;
       ``(3) the right to a written, or, at the option of the 
     parents, electronic verbatim record of such hearing; and
       ``(4) the right to written, or, at the option of the 
     parents, electronic findings of fact and decisions, which 
     findings and decisions--
       ``(A) shall be made available to the public consistent with 
     the requirements of section 617(b) (relating to the 
     confidentiality of data, information, and records); and
       ``(B) shall be transmitted to the advisory panel 
     established pursuant to section 612(a)(21).
       ``(i) Administrative Procedures.--
       ``(1) In general.--
       ``(A) Decision made in hearing.--A decision made in a 
     hearing conducted pursuant to subsection (f) or (k) shall be 
     final, except that any party involved in such hearing may 
     appeal such decision under the provisions of subsection (g) 
     and paragraph (2).
       ``(B) Decision made at appeal.--A decision made under 
     subsection (g) shall be final, except that any party may 
     bring an action under paragraph (2).
       ``(2) Right to bring civil action.--
       ``(A) In general.--Any party aggrieved by the findings and 
     decision made under subsection (f) or (k) who does not have 
     the right to an appeal under subsection (g), and any party 
     aggrieved by the findings and decision made under this 
     subsection, shall have the right to bring a civil action with 
     respect to the complaint presented pursuant to this section, 
     which action may be brought in any State court of competent 
     jurisdiction or in a district court of the United States, 
     without regard to the amount in controversy.
       ``(B) Limitation.--The party bringing the action shall have 
     90 days from the date of the decision of the hearing officer 
     to bring such an action, or, if the State has an explicit 
     time limitation for bringing such action under this part, in 
     such time as the State law allows.
       ``(C) Additional requirements.--In any action brought under 
     this paragraph, the court--
       ``(i) shall receive the records of the administrative 
     proceedings;
       ``(ii) shall hear additional evidence at the request of a 
     party; and
       ``(iii) basing its decision on the preponderance of the 
     evidence, shall grant such relief as the court determines is 
     appropriate.
       ``(3) Jurisdiction of district courts; attorneys' fees.--
       ``(A) In general.--The district courts of the United States 
     shall have jurisdiction of actions brought under this section 
     without regard to the amount in controversy.
       ``(B) Award of attorneys' fees.--
       ``(i) In general.--In any action or proceeding brought 
     under this section, the court, in its discretion, may award 
     reasonable attorneys' fees as part of the costs--

       ``(I) to a prevailing party who is the parent of a child 
     with a disability;
       ``(II) to a prevailing party who is a State educational 
     agency or local educational agency against the attorney of a 
     parent who files a complaint or subsequent cause of action 
     that is frivolous, unreasonable, or without foundation, or 
     against the attorney of a parent who continued to litigate 
     after the litigation clearly became frivolous, unreasonable, 
     or without foundation; or
       ``(III) to a prevailing State educational agency or local 
     educational agency against the attorney of a parent, or 
     against the parent, if the parent's complaint or subsequent 
     cause of action was presented for any improper purpose, such 
     as to harass, to cause unnecessary delay, or to needlessly 
     increase the cost of litigation.

       ``(ii) Rule of construction.--Nothing in this subparagraph 
     shall be construed to affect section 327 of the District of 
     Columbia Appropriations Act, 2005.
       ``(C) Determination of amount of attorneys' fees.--Fees 
     awarded under this paragraph shall be based on rates 
     prevailing in the community in which the action or proceeding 
     arose for the kind and quality of services furnished. No 
     bonus or multiplier may be used in calculating the fees 
     awarded under this subsection.
       ``(D) Prohibition of attorneys' fees and related costs for 
     certain services.--
       ``(i) In general.--Attorneys' fees may not be awarded and 
     related costs may not be reimbursed in any action or 
     proceeding under this section for services performed 
     subsequent to the time of a written offer of settlement to a 
     parent if--

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

       ``(ii) IEP team meetings.--Attorneys' fees may not be 
     awarded relating to any meeting of the IEP Team unless such 
     meeting is convened as a result of an administrative 
     proceeding or judicial action, or, at the discretion of the 
     State, for a mediation described in subsection (e).
       ``(iii) Opportunity to resolve complaints.--A meeting 
     conducted pursuant to subsection (f)(1)(B)(i) shall not be 
     considered--

       ``(I) a meeting convened as a result of an administrative 
     hearing or judicial action; or
       ``(II) an administrative hearing or judicial action for 
     purposes of this paragraph.

       ``(E) Exception to prohibition on attorneys' fees and 
     related costs.--Notwithstanding subparagraph (D), an award of 
     attorneys' fees and related costs may be made to a parent who 
     is the prevailing party and who was substantially justified 
     in rejecting the settlement offer.
       ``(F) Reduction in amount of attorneys' fees.--Except as 
     provided in subparagraph (G), whenever the court finds that--
       ``(i) the parent, or the parent's attorney, during the 
     course of the action or proceeding, unreasonably protracted 
     the final resolution of the controversy;
       ``(ii) the amount of the attorneys' fees otherwise 
     authorized to be awarded unreasonably exceeds the hourly rate 
     prevailing in the community for similar services by attorneys 
     of reasonably comparable skill, reputation, and experience;
       ``(iii) the time spent and legal services furnished were 
     excessive considering the nature of the action or proceeding; 
     or
       ``(iv) the attorney representing the parent did not provide 
     to the local educational agency the appropriate information 
     in the notice of the complaint described in subsection 
     (b)(7)(A),

     the court shall reduce, accordingly, the amount of the 
     attorneys' fees awarded under this section.
       ``(G) Exception to reduction in amount of attorneys' 
     fees.--The provisions of subparagraph (F) shall not apply in 
     any action or proceeding if the court finds that the State or 
     local educational agency unreasonably protracted the final 
     resolution of the action or proceeding or there was a 
     violation of this section.
       ``(j) Maintenance of Current Educational Placement.--Except 
     as provided in subsection (k)(4), during the pendency of any 
     proceedings conducted pursuant to this section, unless the 
     State or local educational agency and the parents otherwise 
     agree, the child shall remain in the then-current educational 
     placement of the child, or, if applying for initial admission 
     to a public school, shall, with the consent of the parents, 
     be placed in the public school program until all such 
     proceedings have been completed.
       ``(k) Placement in Alternative Educational Setting.--
       ``(1) Authority of school personnel.--
       ``(A) Case-by-case determination.--School personnel may 
     consider any unique circumstances on a case-by-case basis 
     when determining whether to order a change in placement for a 
     child with a disability who violates a code of student 
     conduct.
       ``(B) Authority.--School personnel under this subsection 
     may remove a child with a disability who violates a code of 
     student conduct from their current placement to an 
     appropriate interim alternative educational setting, another 
     setting, or suspension, for not more than 10 school days (to 
     the extent such alternatives are applied to children without 
     disabilities).
       ``(C) Additional authority.--If school personnel seek to 
     order a change in placement that would exceed 10 school days 
     and the behavior that gave rise to the violation of the 
     school code is determined not to be a manifestation of the 
     child's disability pursuant to subparagraph (E), the relevant 
     disciplinary procedures applicable to children without 
     disabilities may be applied to the child in the same manner 
     and for the same duration in which the procedures would be 
     applied to children without disabilities, except as provided 
     in section 612(a)(1) although it may be provided in an 
     interim alternative educational setting.
       ``(D) Services.--A child with a disability who is removed 
     from the child's current placement under subparagraph (G) 
     (irrespective of whether the behavior is determined to be a 
     manifestation of the child's disability) or subparagraph (C) 
     shall--
       ``(i) continue to receive educational services, as provided 
     in section 612(a)(1), so as to enable the child to continue 
     to participate in the general education curriculum, although 
     in another setting, and to progress toward meeting the goals 
     set out in the child's IEP; and
       ``(ii) receive, as appropriate, a functional behavioral 
     assessment, behavioral intervention services and 
     modifications, that are designed to address the behavior 
     violation so that it does not recur.
       ``(E) Manifestation determination.--
       ``(i) In general.--Except as provided in subparagraph (B), 
     within 10 school days of any decision to change the placement 
     of a child with a disability because of a violation of a code 
     of student conduct, the local educational agency, the parent, 
     and relevant members of the IEP Team (as determined by the 
     parent and the local educational agency) shall review all 
     relevant information in the student's file, including the 
     child's IEP, any teacher observations, and any relevant 
     information provided by the parents to determine--

       ``(I) if the conduct in question was caused by, or had a 
     direct and substantial relationship to, the child's 
     disability; or

       ``(II) if the conduct in question was the direct result of 
     the local educational agency's failure to implement the IEP.

       ``(ii) Manifestation.--If the local educational agency, the 
     parent, and relevant members of the IEP Team determine that 
     either subclause (I) or (II) of clause (i) is applicable for

[[Page H9915]]

     the child, the conduct shall be determined to be a 
     manifestation of the child's disability.
       ``(F) Determination that behavior was a manifestation.--If 
     the local educational agency, the parent, and relevant 
     members of the IEP Team make the determination that the 
     conduct was a manifestation of the child's disability, the 
     IEP Team shall--
       ``(i) conduct a functional behavioral assessment, and 
     implement a behavioral intervention plan for such child, 
     provided that the local educational agency had not conducted 
     such assessment prior to such determination before the 
     behavior that resulted in a change in placement described in 
     subparagraph (C) or (G);
       ``(ii) in the situation where a behavioral intervention 
     plan has been developed, review the behavioral intervention 
     plan if the child already has such a behavioral intervention 
     plan, and modify it, as necessary, to address the behavior; 
     and
       ``(iii) except as provided in subparagraph (G), return the 
     child to the placement from which the child was removed, 
     unless the parent and the local educational agency agree to a 
     change of placement as part of the modification of the 
     behavioral intervention plan.
       ``(G) Special circumstances.--School personnel may remove a 
     student to an interim alternative educational setting for not 
     more than 45 school days without regard to whether the 
     behavior is determined to be a manifestation of the child's 
     disability, in cases where a child--
       ``(i) carries or possesses a weapon to or at school, on 
     school premises, or to or at a school function under the 
     jurisdiction of a State or local educational agency;
       ``(ii) knowingly possesses or uses illegal drugs, or sells 
     or solicits the sale of a controlled substance, while at 
     school, on school premises, or at a school function under the 
     jurisdiction of a State or local educational agency; or
       ``(iii) has inflicted serious bodily injury upon another 
     person while at school, on school premises, or at a school 
     function under the jurisdiction of a State or local 
     educational agency.
       ``(H) Notification.--Not later than the date on which the 
     decision to take disciplinary action is made, the local 
     educational agency shall notify the parents of that decision, 
     and of all procedural safeguards accorded under this section.
       ``(2) Determination of setting.--The interim alternative 
     educational setting in subparagraphs (C) and (G) of paragraph 
     (1) shall be determined by the IEP Team.
       ``(3) Appeal.--
       ``(A) In general.--The parent of a child with a disability 
     who disagrees with any decision regarding placement, or the 
     manifestation determination under this subsection, or a local 
     educational agency that believes that maintaining the current 
     placement of the child is substantially likely to result in 
     injury to the child or to others, may request a hearing.
       ``(B) Authority of hearing officer.--
       ``(i) In general.--A hearing officer shall hear, and make a 
     determination regarding, an appeal requested under 
     subparagraph (A).
       ``(ii) Change of placement order.--In making the 
     determination under clause (i), the hearing officer may order 
     a change in placement of a child with a disability. In such 
     situations, the hearing officer may--

       ``(I) return a child with a disability to the placement 
     from which the child was removed; or
       ``(II) order a change in placement of a child with a 
     disability to an appropriate interim alternative educational 
     setting for not more than 45 school days if the hearing 
     officer determines that maintaining the current placement of 
     such child is substantially likely to result in injury to the 
     child or to others.

       ``(4) Placement during appeals.--When an appeal under 
     paragraph (3) has been requested by either the parent or the 
     local educational agency--
       ``(A) the child shall remain in the interim alternative 
     educational setting pending the decision of the hearing 
     officer or until the expiration of the time period provided 
     for in paragraph (1)(C), whichever occurs first, unless the 
     parent and the State or local educational agency agree 
     otherwise; and
       ``(B) the State or local educational agency shall arrange 
     for an expedited hearing, which shall occur within 20 school 
     days of the date the hearing is requested and shall result in 
     a determination within 10 school days after the hearing.
       ``(5) Protections for children not yet eligible for special 
     education and related services.--
       ``(A) In general.--A child who has not been determined to 
     be eligible for special education and related services under 
     this part and who has engaged in behavior that violates a 
     code of student conduct, may assert any of the protections 
     provided for in this part if the local educational agency had 
     knowledge (as determined in accordance with this paragraph) 
     that the child was a child with a disability before the 
     behavior that precipitated the disciplinary action occurred.
       ``(B) Basis of knowledge.--A local educational agency shall 
     be deemed to have knowledge that a child is a child with a 
     disability if, before the behavior that precipitated the 
     disciplinary action occurred--
       ``(i) the parent of the child has expressed concern in 
     writing to supervisory or administrative personnel of the 
     appropriate educational agency, or a teacher of the child, 
     that the child is in need of special education and related 
     services;
       ``(ii) the parent of the child has requested an evaluation 
     of the child pursuant to section 614(a)(1)(B); or
       ``(iii) the teacher of the child, or other personnel of the 
     local educational agency, has expressed specific concerns 
     about a pattern of behavior demonstrated by the child, 
     directly to the director of special education of such agency 
     or to other supervisory personnel of the agency.
       ``(C) Exception.--A local educational agency shall not be 
     deemed to have knowledge that the child is a child with a 
     disability if the parent of the child has not allowed an 
     evaluation of the child pursuant to section 614 or has 
     refused services under this part or the child has been 
     evaluated and it was determined that the child was not a 
     child with a disability under this part.
       ``(D) Conditions that apply if no basis of knowledge.--
       ``(i) In general.--If a local educational agency does not 
     have knowledge that a child is a child with a disability (in 
     accordance with subparagraph (B) or (C)) prior to taking 
     disciplinary measures against the child, the child may be 
     subjected to disciplinary measures applied to children 
     without disabilities who engaged in comparable behaviors 
     consistent with clause (ii).
       ``(ii) Limitations.--If a request is made for an evaluation 
     of a child during the time period in which the child is 
     subjected to disciplinary measures under this subsection, the 
     evaluation shall be conducted in an expedited manner. If the 
     child is determined to be a child with a disability, taking 
     into consideration information from the evaluation conducted 
     by the agency and information provided by the parents, the 
     agency shall provide special education and related services 
     in accordance with this part, except that, pending the 
     results of the evaluation, the child shall remain in the 
     educational placement determined by school authorities.
       ``(6) Referral to and action by law enforcement and 
     judicial authorities.--
       ``(A) Rule of construction.--Nothing in this part shall be 
     construed to prohibit an agency from reporting a crime 
     committed by a child with a disability to appropriate 
     authorities or to prevent State law enforcement and judicial 
     authorities from exercising their responsibilities with 
     regard to the application of Federal and State law to crimes 
     committed by a child with a disability.
       ``(B) Transmittal of records.--An agency reporting a crime 
     committed by a child with a disability shall ensure that 
     copies of the special education and disciplinary records of 
     the child are transmitted for consideration by the 
     appropriate authorities to whom the agency reports the crime.
       ``(7) Definitions.--In this subsection:
       ``(A) Controlled substance.--The term `controlled 
     substance' means a drug or other substance identified under 
     schedule I, II, III, IV, or V in section 202(c) of the 
     Controlled Substances Act (21 U.S.C. 812(c)).
       ``(B) Illegal drug.--The term `illegal drug' means a 
     controlled substance but does not include a controlled 
     substance that is legally possessed or used under the 
     supervision of a licensed health-care professional or that is 
     legally possessed or used under any other authority under 
     that Act or under any other provision of Federal law.
       ``(C) Weapon.--The term `weapon' has the meaning given the 
     term `dangerous weapon' under section 930(g)(2) of title 18, 
     United States Code.
       ``(D) Serious bodily injury.--The term `serious bodily 
     injury' has the meaning given the term `serious bodily 
     injury' under paragraph (3) of subsection (h) of section 1365 
     of title 18, United States Code.
       ``(l) Rule of Construction.--Nothing in this title shall be 
     construed to restrict or limit the rights, procedures, and 
     remedies available under the Constitution, the Americans with 
     Disabilities Act of 1990, title V of the Rehabilitation Act 
     of 1973, or other Federal laws protecting the rights of 
     children with disabilities, except that before the filing of 
     a civil action under such laws seeking relief that is also 
     available under this part, the procedures under subsections 
     (f) and (g) shall be exhausted to the same extent as would be 
     required had the action been brought under this part.
       ``(m) Transfer of Parental Rights at Age of Majority.--
       ``(1) In general.--A State that receives amounts from a 
     grant under this part may provide that, when a child with a 
     disability reaches the age of majority under State law 
     (except for a child with a disability who has been determined 
     to be incompetent under State law)--
       ``(A) the agency shall provide any notice required by this 
     section to both the individual and the parents;
       ``(B) all other rights accorded to parents under this part 
     transfer to the child;
       ``(C) the agency shall notify the individual and the 
     parents of the transfer of rights; and
       ``(D) all rights accorded to parents under this part 
     transfer to children who are incarcerated in an adult or 
     juvenile Federal, State, or local correctional institution.
       ``(2) Special rule.--If, under State law, a child with a 
     disability who has reached the age of majority under State 
     law, who has not been determined to be incompetent, but who 
     is determined not to have the ability to provide informed 
     consent with respect to the educational program of the child, 
     the State shall establish procedures for appointing the 
     parent of the child, or if the parent is not available, 
     another appropriate individual, to represent the educational 
     interests of the child throughout the period of eligibility 
     of the child under this part.
       ``(n) Electronic mail.--A parent of a child with a 
     disability may elect to receive notices required under this 
     section by an electronic mail (e-mail) communication, if the 
     agency makes such option available.
       ``(o) Separate Complaint.--Nothing in this section shall be 
     construed to preclude a parent from filing a separate due 
     process complaint on an issue separate from a due process 
     complaint already filed.

     ``SEC. 616. MONITORING, TECHNICAL ASSISTANCE, AND 
                   ENFORCEMENT.

       ``(a) Federal and State Monitoring.--
       ``(1) In general.--The Secretary shall--

[[Page H9916]]

       ``(A) monitor implementation of this part through--
       ``(i) oversight of the exercise of general supervision by 
     the States, as required in section 612(a)(11); and
       ``(ii) the State performance plans, described in subsection 
     (b);
       ``(B) enforce this part in accordance with subsection (e); 
     and
       ``(C) require States to--
       ``(i) monitor implementation of this part by local 
     educational agencies; and
       ``(ii) enforce this part in accordance with paragraph (3) 
     and subsection (e).
       ``(2) Focused monitoring.--The primary focus of Federal and 
     State monitoring activities described in paragraph (1) shall 
     be on--
       ``(A) improving educational results and functional outcomes 
     for all children with disabilities; and
       ``(B) ensuring that States meet the program requirements 
     under this part, with a particular emphasis on those 
     requirements that are most closely related to improving 
     educational results for children with disabilities.
       ``(3) Monitoring priorities.--The Secretary shall monitor 
     the States, and shall require each State to monitor the local 
     educational agencies located in the State (except the State 
     exercise of general supervisory responsibility), using 
     quantifiable indicators in each of the following priority 
     areas, and using such qualitative indicators as are needed to 
     adequately measure performance in the following priority 
     areas:
       ``(A) Provision of a free appropriate public education in 
     the least restrictive environment.
       ``(B) State exercise of general supervisory authority, 
     including child find, effective monitoring, the use of 
     resolution sessions, mediation, voluntary binding 
     arbitration, and a system of transition services as defined 
     in sections 602(34) and 637(a)(9).
       ``(C) Disproportionate representation of racial and ethnic 
     groups in special education and related services, to the 
     extent the representation is the result of inappropriate 
     identification.
       ``(4) Permissive areas of review.--The Secretary shall 
     consider other relevant information and data, including data 
     provided by States under section 618.
       ``(b) State Performance Plans.--
       ``(1) Plan.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of the Individuals with Disabilities Education 
     Improvement Act of 2004, each State shall have in place a 
     performance plan that evaluates that State's efforts to 
     implement the requirements and purposes of this part and 
     describes how the State will improve such implementation.
       ``(B) Submission for approval.--Each State shall submit the 
     State's performance plan to the Secretary for approval in 
     accordance with the approval process described in subsection 
     (c).
       ``(C) Review.--Each State shall review its State 
     performance plan at least once every 6 years and submit any 
     amendments to the Secretary.
       ``(2) Targets.--
       ``(A) In general.--As a part of the State performance plan 
     described under paragraph (1), each State shall establish 
     measurable and rigorous targets for the indicators 
     established under the priority areas described in subsection 
     (a)(3).
       ``(B) Data collection.--
       ``(i) In general.--Each State shall collect valid and 
     reliable information as needed to report annually to the 
     Secretary on the priority areas described in subsection 
     (a)(3).
       ``(ii) Rule of construction.--Nothing in this title shall 
     be construed to authorize the development of a nationwide 
     database of personally identifiable information on 
     individuals involved in studies or other collections of data 
     under this part.
       ``(C) Public reporting and privacy.--
       ``(i) In general.--The State shall use the targets 
     established in the plan and priority areas described in 
     subsection (a)(3) to analyze the performance of each local 
     educational agency in the State in implementing this part.
       ``(ii) Report.--

       ``(I) Public report.--The State shall report annually to 
     the public on the performance of each local educational 
     agency located in the State on the targets in the State's 
     performance plan. The State shall make the State's 
     performance plan available through public means, including by 
     posting on the website of the State educational agency, 
     distribution to the media, and distribution through public 
     agencies.
       ``(II) State performance report.--The State shall report 
     annually to the Secretary on the performance of the State 
     under the State's performance plan.

       ``(iii) Privacy.--The State shall not report to the public 
     or the Secretary any information on performance that would 
     result in the disclosure of personally identifiable 
     information about individual children or where the available 
     data is insufficient to yield statistically reliable 
     information.
       ``(c) Approval Process.--
       ``(1) Deemed approval.--The Secretary shall review 
     (including the specific provisions described in subsection 
     (b)) each performance plan submitted by a State pursuant to 
     subsection (b)(1)(B) and the plan shall be deemed to be 
     approved by the Secretary unless the Secretary makes a 
     written determination, prior to the expiration of the 120-day 
     period beginning on the date on which the Secretary received 
     the plan, that the plan does not meet the requirements of 
     this section, including the specific provisions described in 
     subsection (b).
       ``(2) Disapproval.--The Secretary shall not finally 
     disapprove a performance plan, except after giving the State 
     notice and an opportunity for a hearing.
       ``(3) Notification.--If the Secretary finds that the plan 
     does not meet the requirements, in whole or in part, of this 
     section, the Secretary shall--
       ``(A) give the State notice and an opportunity for a 
     hearing; and
       ``(B) notify the State of the finding, and in such 
     notification shall--
       ``(i) cite the specific provisions in the plan that do not 
     meet the requirements; and
       ``(ii) request additional information, only as to the 
     provisions not meeting the requirements, needed for the plan 
     to meet the requirements of this section.
       ``(4) Response.--If the State responds to the Secretary's 
     notification described in paragraph (3)(B) during the 30-day 
     period beginning on the date on which the State received the 
     notification, and resubmits the plan with the requested 
     information described in paragraph (3)(B)(ii), the Secretary 
     shall approve or disapprove such plan prior to the later of--
       ``(A) the expiration of the 30-day period beginning on the 
     date on which the plan is resubmitted; or
       ``(B) the expiration of the 120-day period described in 
     paragraph (1).
       ``(5) Failure to respond.--If the State does not respond to 
     the Secretary's notification described in paragraph (3)(B) 
     during the 30-day period beginning on the date on which the 
     State received the notification, such plan shall be deemed to 
     be disapproved.
       ``(d) Secretary's Review and Determination.--
       ``(1) Review.--The Secretary shall annually review the 
     State performance report submitted pursuant to subsection 
     (b)(2)(C)(ii)(II) in accordance with this section.
       ``(2) Determination.--
       ``(A) In general.--Based on the information provided by the 
     State in the State performance report, information obtained 
     through monitoring visits, and any other public information 
     made available, the Secretary shall determine if the State--
       ``(i) meets the requirements and purposes of this part;
       ``(ii) needs assistance in implementing the requirements of 
     this part;
       ``(iii) needs intervention in implementing the requirements 
     of this part; or
       ``(iv) needs substantial intervention in implementing the 
     requirements of this part.
       ``(B) Notice and opportunity for a hearing.--For 
     determinations made under clause (iii) or (iv) of 
     subparagraph (A), the Secretary shall provide reasonable 
     notice and an opportunity for a hearing on such 
     determination.
       ``(e) Enforcement.--
       ``(1) Needs assistance.--If the Secretary determines, for 2 
     consecutive years, that a State needs assistance under 
     subsection (d)(2)(A)(ii) in implementing the requirements of 
     this part, the Secretary shall take 1 or more of the 
     following actions:
       ``(A) Advise the State of available sources of technical 
     assistance that may help the State address the areas in which 
     the State needs assistance, which may include assistance from 
     the Office of Special Education Programs, other offices of 
     the Department of Education, other Federal agencies, 
     technical assistance providers approved by the Secretary, and 
     other federally funded nonprofit agencies, and require the 
     State to work with appropriate entities. Such technical 
     assistance may include--
       ``(i) the provision of advice by experts to address the 
     areas in which the State needs assistance, including explicit 
     plans for addressing the area for concern within a specified 
     period of time;
       ``(ii) assistance in identifying and implementing 
     professional development, instructional strategies, and 
     methods of instruction that are based on scientifically based 
     research;
       ``(iii) designating and using distinguished 
     superintendents, principals, special education 
     administrators, special education teachers, and other 
     teachers to provide advice, technical assistance, and 
     support; and
       ``(iv) devising additional approaches to providing 
     technical assistance, such as collaborating with institutions 
     of higher education, educational service agencies, national 
     centers of technical assistance supported under part D, and 
     private providers of scientifically based technical 
     assistance.
       ``(B) Direct the use of State-level funds under section 
     611(e) on the area or areas in which the State needs 
     assistance.
       ``(C) Identify the State as a high-risk grantee and impose 
     special conditions on the State's grant under this part.
       ``(2) Needs intervention.--If the Secretary determines, for 
     3 or more consecutive years, that a State needs intervention 
     under subsection (d)(2)(A)(iii) in implementing the 
     requirements of this part, the following shall apply:
       ``(A) The Secretary may take any of the actions described 
     in paragraph (1).
       ``(B) The Secretary shall take 1 or more of the following 
     actions:
       ``(i) Require the State to prepare a corrective action plan 
     or improvement plan if the Secretary determines that the 
     State should be able to correct the problem within 1 year.
       ``(ii) Require the State to enter into a compliance 
     agreement under section 457 of the General Education 
     Provisions Act, if the Secretary has reason to believe that 
     the State cannot correct the problem within 1 year.
       ``(iii) For each year of the determination, withhold not 
     less than 20 percent and not more than 50 percent of the 
     State's funds under section 611(e), until the Secretary 
     determines the State has sufficiently addressed the areas in 
     which the State needs intervention.
       ``(iv) Seek to recover funds under section 452 of the 
     General Education Provisions Act.
       ``(v) Withhold, in whole or in part, any further payments 
     to the State under this part pursuant to paragraph (5).
       ``(vi) Refer the matter for appropriate enforcement action, 
     which may include referral to the Department of Justice.

[[Page H9917]]

       ``(3) Needs substantial intervention.--Notwithstanding 
     paragraph (1) or (2), at any time that the Secretary 
     determines that a State needs substantial intervention in 
     implementing the requirements of this part or that there is a 
     substantial failure to comply with any condition of a State 
     educational agency's or local educational agency's 
     eligibility under this part, the Secretary shall take 1 or 
     more of the following actions:
       ``(A) Recover funds under section 452 of the General 
     Education Provisions Act.
       ``(B) Withhold, in whole or in part, any further payments 
     to the State under this part.
       ``(C) Refer the case to the Office of the Inspector General 
     at the Department of Education.
       ``(D) Refer the matter for appropriate enforcement action, 
     which may include referral to the Department of Justice.
       ``(4) Opportunity for hearing.--
       ``(A) Withholding funds.--Prior to withholding any funds 
     under this section, the Secretary shall provide reasonable 
     notice and an opportunity for a hearing to the State 
     educational agency involved.
       ``(B) Suspension.--Pending the outcome of any hearing to 
     withhold payments under subsection (b), the Secretary may 
     suspend payments to a recipient, suspend the authority of the 
     recipient to obligate funds under this part, or both, after 
     such recipient has been given reasonable notice and an 
     opportunity to show cause why future payments or authority to 
     obligate funds under this part should not be suspended.
       ``(5) Report to congress.--The Secretary shall report to 
     the Committee on Education and the Workforce of the House of 
     Representatives and the Committee on Health, Education, 
     Labor, and Pensions of the Senate within 30 days of taking 
     enforcement action pursuant to paragraph (1), (2), or (3), on 
     the specific action taken and the reasons why enforcement 
     action was taken.
       ``(6) Nature of withholding.--
       ``(A) Limitation.--If the Secretary withholds further 
     payments pursuant to paragraph (2) or (3), the Secretary may 
     determine--
       ``(i) that such withholding will be limited to programs or 
     projects, or portions of programs or projects, that affected 
     the Secretary's determination under subsection (d)(2); or
       ``(ii) that the State educational agency shall not make 
     further payments under this part to specified State agencies 
     or local educational agencies that caused or were involved in 
     the Secretary's determination under subsection (d)(2).
       ``(B) Withholding until rectified.--Until the Secretary is 
     satisfied that the condition that caused the initial 
     withholding has been substantially rectified--
       ``(i) payments to the State under this part shall be 
     withheld in whole or in part; and
       ``(ii) payments by the State educational agency under this 
     part shall be limited to State agencies and local educational 
     agencies whose actions did not cause or were not involved in 
     the Secretary's determination under subsection (d)(2), as the 
     case may be.
       ``(7) Public attention.--Any State that has received notice 
     under subsection (d)(2) shall, by means of a public notice, 
     take such measures as may be necessary to bring the pendency 
     of an action pursuant to this subsection to the attention of 
     the public within the State.
       ``(8) Judicial review.--
       ``(A) In general.--If any State is dissatisfied with the 
     Secretary's action with respect to the eligibility of the 
     State under section 612, such State may, not later than 60 
     days after notice of such action, file with the United States 
     court of appeals for the circuit in which such State is 
     located a petition for review of that action. A copy of the 
     petition shall be transmitted by the clerk of the court to 
     the Secretary. The Secretary thereupon shall file in the 
     court the record of the proceedings upon which the 
     Secretary's action was based, as provided in section 2112 of 
     title 28, United States Code.
       ``(B) Jurisdiction; review by united states supreme 
     court.--Upon the filing of such petition, the court shall 
     have jurisdiction to affirm the action of the Secretary or to 
     set it aside, in whole or in part. The judgment of the court 
     shall be subject to review by the Supreme Court of the United 
     States upon certiorari or certification as provided in 
     section 1254 of title 28, United States Code.
       ``(C) Standard of review.--The findings of fact by the 
     Secretary, if supported by substantial evidence, shall be 
     conclusive, but the court, for good cause shown, may remand 
     the case to the Secretary to take further evidence, and the 
     Secretary may thereupon make new or modified findings of fact 
     and may modify the Secretary's previous action, and shall 
     file in the court the record of the further proceedings. Such 
     new or modified findings of fact shall be conclusive if 
     supported by substantial evidence.
       ``(f) State Enforcement.--If a State educational agency 
     determines that a local educational agency is not meeting the 
     requirements of this part, including the targets in the 
     State's performance plan, the State educational agency shall 
     prohibit the local educational agency from reducing the local 
     educational agency's maintenance of effort under section 
     613(a)(2)(C) for any fiscal year.
       ``(g) Rule of Construction.--Nothing in this section shall 
     be construed to restrict the Secretary from utilizing any 
     authority under the General Education Provisions Act to 
     monitor and enforce the requirements of this title.
       ``(h) Divided State Agency Responsibility.--For purposes of 
     this section, where responsibility for ensuring that the 
     requirements of this part are met with respect to children 
     with disabilities who are convicted as adults under State law 
     and incarcerated in adult prisons is assigned to a public 
     agency other than the State educational agency pursuant to 
     section 612(a)(11)(C), the Secretary, in instances where the 
     Secretary finds that the failure to comply substantially with 
     the provisions of this part are related to a failure by the 
     public agency, shall take appropriate corrective action to 
     ensure compliance with this part, except that--
       ``(1) any reduction or withholding of payments to the State 
     shall be proportionate to the total funds allotted under 
     section 611 to the State as the number of eligible children 
     with disabilities in adult prisons under the supervision of 
     the other public agency is proportionate to the number of 
     eligible individuals with disabilities in the State under the 
     supervision of the State educational agency; and
       ``(2) any withholding of funds under paragraph (1) shall be 
     limited to the specific agency responsible for the failure to 
     comply with this part.
       ``(i) Data Capacity and Technical Assistance Review.--The 
     Secretary shall--
       ``(1) review the data collection and analysis capacity of 
     States to ensure that data and information determined 
     necessary for implementation of this section is collected, 
     analyzed, and accurately reported to the Secretary; and
       ``(2) provide technical assistance (from funds reserved 
     under section 611(c)), where needed, to improve the capacity 
     of States to meet the data collection requirements.

     ``SEC. 617. ADMINISTRATION.

       ``(a) Responsibilities of Secretary.--The Secretary shall--
       ``(1) cooperate with, and (directly or by grant or 
     contract) furnish technical assistance necessary to, a State 
     in matters relating to--
       ``(A) the education of children with disabilities; and
       ``(B) carrying out this part; and
       ``(2) provide short-term training programs and institutes.
       ``(b) Prohibition Against Federal Mandates, Direction, or 
     Control.--Nothing in this title shall be construed to 
     authorize an officer or employee of the Federal Government to 
     mandate, direct, or control a State, local educational 
     agency, or school's specific instructional content, academic 
     achievement standards and assessments, curriculum, or program 
     of instruction.
       ``(c) Confidentiality.--The Secretary shall take 
     appropriate action, in accordance with section 444 of the 
     General Education Provisions Act, to ensure the protection of 
     the confidentiality of any personally identifiable data, 
     information, and records collected or maintained by the 
     Secretary and by State educational agencies and local 
     educational agencies pursuant to this part.
       ``(d) Personnel.--The Secretary is authorized to hire 
     qualified personnel necessary to carry out the Secretary's 
     duties under subsection (a), under section 618, and under 
     subpart 4 of part D, without regard to the provisions of 
     title 5, United States Code, relating to appointments in the 
     competitive service and without regard to chapter 51 and 
     subchapter III of chapter 53 of such title relating to 
     classification and general schedule pay rates, except that no 
     more than 20 such personnel shall be employed at any time.
       ``(e) Model Forms.--Not later than the date that the 
     Secretary publishes final regulations under this title, to 
     implement amendments made by the Individuals with 
     Disabilities Education Improvement Act of 2004, the Secretary 
     shall publish and disseminate widely to States, local 
     educational agencies, and parent and community training and 
     information centers--
       ``(1) a model IEP form;
       ``(2) a model individualized family service plan (IFSP) 
     form;
       ``(3) a model form of the notice of procedural safeguards 
     described in section 615(d); and
       ``(4) a model form of the prior written notice described in 
     subsections (b)(3) and (c)(1) of section 615 that is 
     consistent with the requirements of this part and is 
     sufficient to meet such requirements.

     ``SEC. 618. PROGRAM INFORMATION.

       ``(a) In General.--Each State that receives assistance 
     under this part, and the Secretary of the Interior, shall 
     provide data each year to the Secretary of Education and the 
     public on the following:
       ``(1)(A) The number and percentage of children with 
     disabilities, by race, ethnicity, limited English proficiency 
     status, gender, and disability category, who are in each of 
     the following separate categories:
       ``(i) Receiving a free appropriate public education.
       ``(ii) Participating in regular education.
       ``(iii) In separate classes, separate schools or 
     facilities, or public or private residential facilities.
       ``(iv) For each year of age from age 14 through 21, stopped 
     receiving special education and related services because of 
     program completion (including graduation with a regular 
     secondary school diploma), or other reasons, and the reasons 
     why those children stopped receiving special education and 
     related services.
       ``(v)(I) Removed to an interim alternative educational 
     setting under section 615(k)(1).
       ``(II) The acts or items precipitating those removals.
       ``(III) The number of children with disabilities who are 
     subject to long-term suspensions or expulsions.
       ``(B) The number and percentage of children with 
     disabilities, by race, gender, and ethnicity, who are 
     receiving early intervention services.
       ``(C) The number and percentage of children with 
     disabilities, by race, gender, and ethnicity, who, from birth 
     through age 2, stopped receiving early intervention services 
     because of program completion or for other reasons.
       ``(D) The incidence and duration of disciplinary actions by 
     race, ethnicity, limited English proficiency status, gender, 
     and disability category, of children with disabilities, 
     including suspensions of 1 day or more.

[[Page H9918]]

       ``(E) The number and percentage of children with 
     disabilities who are removed to alternative educational 
     settings or expelled as compared to children without 
     disabilities who are removed to alternative educational 
     settings or expelled.
       ``(F) The number of due process complaints filed under 
     section 615 and the number of hearings conducted.
       ``(G) The number of hearings requested under section 615(k) 
     and the number of changes in placements ordered as a result 
     of those hearings.
       ``(H) The number of mediations held and the number of 
     settlement agreements reached through such mediations.
       ``(2) The number and percentage of infants and toddlers, by 
     race, and ethnicity, who are at risk of having substantial 
     developmental delays (as defined in section 632), and who are 
     receiving early intervention services under part C.
       ``(3) Any other information that may be required by the 
     Secretary.
       ``(b) Data Reporting.--
       ``(1) Protection of identifiable data.--The data described 
     in subsection (a) shall be publicly reported by each State in 
     a manner that does not result in the disclosure of data 
     identifiable to individual children.
       ``(2) Sampling.--The Secretary may permit States and the 
     Secretary of the Interior to obtain the data described in 
     subsection (a) through sampling.
       ``(c) Technical Assistance.--The Secretary may provide 
     technical assistance to States to ensure compliance with the 
     data collection and reporting requirements under this title.
       ``(d) Disproportionality.--
       ``(1) In general.--Each State that receives assistance 
     under this part, and the Secretary of the Interior, shall 
     provide for the collection and examination of data to 
     determine if significant disproportionality based on race and 
     ethnicity is occurring in the State and the local educational 
     agencies of the State with respect to--
       ``(A) the identification of children as children with 
     disabilities, including the identification of children as 
     children with disabilities in accordance with a particular 
     impairment described in section 602(3);
       ``(B) the placement in particular educational settings of 
     such children; and
       ``(C) the incidence, duration, and type of disciplinary 
     actions, including suspensions and expulsions.
       ``(2) Review and revision of policies, practices, and 
     procedures.--In the case of a determination of significant 
     disproportionality with respect to the identification of 
     children as children with disabilities, or the placement in 
     particular educational settings of such children, in 
     accordance with paragraph (1), the State or the Secretary of 
     the Interior, as the case may be, shall--
       ``(A) provide for the review and, if appropriate, revision 
     of the policies, procedures, and practices used in such 
     identification or placement to ensure that such policies, 
     procedures, and practices comply with the requirements of 
     this title;
       ``(B) require any local educational agency identified under 
     paragraph (1) to reserve the maximum amount of funds under 
     section 613(f) to provide comprehensive coordinated early 
     intervening services to serve children in the local 
     educational agency, particularly children in those groups 
     that were significantly overidentified under paragraph (1); 
     and
       ``(C) require the local educational agency to publicly 
     report on the revision of policies, practices, and procedures 
     described under subparagraph (A).

     ``SEC. 619. PRESCHOOL GRANTS.

       ``(a) In General.--The Secretary shall provide grants under 
     this section to assist States to provide special education 
     and related services, in accordance with this part--
       ``(1) to children with disabilities aged 3 through 5, 
     inclusive; and
       ``(2) at the State's discretion, to 2-year-old children 
     with disabilities who will turn 3 during the school year.
       ``(b) Eligibility.--A State shall be eligible for a grant 
     under this section if such State--
       ``(1) is eligible under section 612 to receive a grant 
     under this part; and
       ``(2) makes a free appropriate public education available 
     to all children with disabilities, aged 3 through 5, residing 
     in the State.
       ``(c) Allocations to States.--
       ``(1) In general.--The Secretary shall allocate the amount 
     made available to carry out this section for a fiscal year 
     among the States in accordance with paragraph (2) or (3), as 
     the case may be.
       ``(2) Increase in funds.--If the amount available for 
     allocations to States under paragraph (1) for a fiscal year 
     is equal to or greater than the amount allocated to the 
     States under this section for the preceding fiscal year, 
     those allocations shall be calculated as follows:
       ``(A) Allocation.--
       ``(i) In general.--Except as provided in subparagraph (B), 
     the Secretary shall--

       ``(I) allocate to each State the amount the State received 
     under this section for fiscal year 1997;
       ``(II) allocate 85 percent of any remaining funds to States 
     on the basis of the States' relative populations of children 
     aged 3 through 5; and
       ``(III) allocate 15 percent of those remaining funds to 
     States on the basis of the States' relative populations of 
     all children aged 3 through 5 who are living in poverty.

       ``(ii) Data.--For the purpose of making grants under this 
     paragraph, the Secretary shall use the most recent population 
     data, including data on children living in poverty, that are 
     available and satisfactory to the Secretary.
       ``(B) Limitations.--Notwithstanding subparagraph (A), 
     allocations under this paragraph shall be subject to the 
     following:
       ``(i) Preceding years.--No State's allocation shall be less 
     than its allocation under this section for the preceding 
     fiscal year.
       ``(ii) Minimum.--No State's allocation shall be less than 
     the greatest of--

       ``(I) the sum of--

       ``(aa) the amount the State received under this section for 
     fiscal year 1997; and
       ``(bb) \1/3\ of 1 percent of the amount by which the amount 
     appropriated under subsection (j) for the fiscal year exceeds 
     the amount appropriated for this section for fiscal year 
     1997;

       ``(II) the sum of--

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

       ``(III) the sum of--

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

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

       ``(C) Ratable reductions.--If the amount available for 
     allocations under this paragraph is insufficient to pay those 
     allocations in full, those allocations shall be ratably 
     reduced, subject to subparagraph (B)(i).
       ``(3) Decrease in funds.--If the amount available for 
     allocations to States under paragraph (1) for a fiscal year 
     is less than the amount allocated to the States under this 
     section for the preceding fiscal year, those allocations 
     shall be calculated as follows:
       ``(A) Allocations.--If the amount available for allocations 
     is greater than the amount allocated to the States for fiscal 
     year 1997, each State shall be allocated the sum of--
       ``(i) the amount the State received under this section for 
     fiscal year 1997; and
       ``(ii) an amount that bears the same relation to any 
     remaining funds as the increase the State received under this 
     section for the preceding fiscal year over fiscal year 1997 
     bears to the total of all such increases for all States.
       ``(B) Ratable reductions.--If the amount available for 
     allocations is equal to or less than the amount allocated to 
     the States for fiscal year 1997, each State shall be 
     allocated the amount the State received for fiscal year 1997, 
     ratably reduced, if necessary.
       ``(d) Reservation for State Activities.--
       ``(1) In general.--Each State may reserve not more than the 
     amount described in paragraph (2) for administration and 
     other State-level activities in accordance with subsections 
     (e) and (f).
       ``(2) Amount described.--For each fiscal year, the 
     Secretary shall determine and report to the State educational 
     agency an amount that is 25 percent of the amount the State 
     received under this section for fiscal year 1997, 
     cumulatively adjusted by the Secretary for each succeeding 
     fiscal year by the lesser of--
       ``(A) the percentage increase, if any, from the preceding 
     fiscal year in the State's allocation under this section; or
       ``(B) the percentage increase, if any, from the preceding 
     fiscal year in the Consumer Price Index For All Urban 
     Consumers published by the Bureau of Labor Statistics of the 
     Department of Labor.
       ``(e) State Administration.--
       ``(1) In general.--For the purpose of administering this 
     section (including the coordination of activities under this 
     part with, and providing technical assistance to, other 
     programs that provide services to children with disabilities) 
     a State may use not more than 20 percent of the maximum 
     amount the State may reserve under subsection (d) for any 
     fiscal year.
       ``(2) Administration of part c.--Funds described in 
     paragraph (1) may also be used for the administration of part 
     C.
       ``(f) Other State-Level Activities.--Each State shall use 
     any funds the State reserves under subsection (d) and does 
     not use for administration under subsection (e)--
       ``(1) for support services (including establishing and 
     implementing the mediation process required by section 
     615(e)), which may benefit children with disabilities younger 
     than 3 or older than 5 as long as those services also benefit 
     children with disabilities aged 3 through 5;
       ``(2) for direct services for children eligible for 
     services under this section;
       ``(3) for activities at the State and local levels to meet 
     the performance goals established by the State under section 
     612(a)(15);
       ``(4) to supplement other funds used to develop and 
     implement a statewide coordinated services system designed to 
     improve results for children and families, including children 
     with disabilities and their families, but not more than 1 
     percent of the amount received by the State under this 
     section for a fiscal year;
       ``(5) to provide early intervention services (which shall 
     include an educational component that promotes school 
     readiness and incorporates preliteracy, language, and 
     numeracy skills) in accordance with part C to children with 
     disabilities who are eligible for services under this section 
     and who previously received services under part C until such 
     children enter, or are eligible under State law to enter, 
     kindergarten; or
       ``(6) at the State's discretion, to continue service 
     coordination or case management for families who receive 
     services under part C.
       ``(g) Subgrants to Local Educational Agencies.--

[[Page H9919]]

       ``(1) Subgrants required.--Each State that receives a grant 
     under this section for any fiscal year shall distribute all 
     of the grant funds that the State does not reserve under 
     subsection (d) to local educational agencies in the State 
     that have established their eligibility under section 613, as 
     follows:
       ``(A) Base payments.--The State shall first award each 
     local educational agency described in paragraph (1) the 
     amount that agency would have received under this section for 
     fiscal year 1997 if the State had distributed 75 percent of 
     its grant for that year under section 619(c)(3), as such 
     section was then in effect.
       ``(B) Allocation of remaining funds.--After making 
     allocations under subparagraph (A), the State shall--
       ``(i) allocate 85 percent of any remaining funds to those 
     local educational agencies on the basis of the relative 
     numbers of children enrolled in public and private elementary 
     schools and secondary schools within the local educational 
     agency's jurisdiction; and
       ``(ii) allocate 15 percent of those remaining funds to 
     those local educational agencies in accordance with their 
     relative numbers of children living in poverty, as determined 
     by the State educational agency.
       ``(2) Reallocation of funds.--If a State educational agency 
     determines that a local educational agency is adequately 
     providing a free appropriate public education to all children 
     with disabilities aged 3 through 5 residing in the area 
     served by the local educational agency with State and local 
     funds, the State educational agency may reallocate any 
     portion of the funds under this section that are not needed 
     by that local educational agency to provide a free 
     appropriate public education to other local educational 
     agencies in the State that are not adequately providing 
     special education and related services to all children with 
     disabilities aged 3 through 5 residing in the areas the other 
     local educational agencies serve.
       ``(h) Part C Inapplicable.--Part C does not apply to any 
     child with a disability receiving a free appropriate public 
     education, in accordance with this part, with funds received 
     under this section.
       ``(i) State Defined.--In this section, the term `State' 
     means each of the 50 States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.
       ``(j) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary.

            ``PART C--INFANTS AND TODDLERS WITH DISABILITIES

     ``SEC. 631. FINDINGS AND POLICY.

       ``(a) Findings.--Congress finds that there is an urgent and 
     substantial need--
       ``(1) to enhance the development of infants and toddlers 
     with disabilities, to minimize their potential for 
     developmental delay, and to recognize the significant brain 
     development that occurs during a child's first 3 years of 
     life;
       ``(2) to reduce the educational costs to our society, 
     including our Nation's schools, by minimizing the need for 
     special education and related services after infants and 
     toddlers with disabilities reach school age;
       ``(3) to maximize the potential for individuals with 
     disabilities to live independently in society;
       ``(4) to enhance the capacity of families to meet the 
     special needs of their infants and toddlers with 
     disabilities; and
       ``(5) to enhance the capacity of State and local agencies 
     and service providers to identify, evaluate, and meet the 
     needs of all children, particularly minority, low-income, 
     inner city, and rural children, and infants and toddlers in 
     foster care.
       ``(b) Policy.--It is the policy of the United States to 
     provide financial assistance to States--
       ``(1) to develop and implement a statewide, comprehensive, 
     coordinated, multidisciplinary, interagency system that 
     provides early intervention services for infants and toddlers 
     with disabilities and their families;
       ``(2) to facilitate the coordination of payment for early 
     intervention services from Federal, State, local, and private 
     sources (including public and private insurance coverage);
       ``(3) to enhance State capacity to provide quality early 
     intervention services and expand and improve existing early 
     intervention services being provided to infants and toddlers 
     with disabilities and their families; and
       ``(4) to encourage States to expand opportunities for 
     children under 3 years of age who would be at risk of having 
     substantial developmental delay if they did not receive early 
     intervention services.

     ``SEC. 632. DEFINITIONS.

       ``In this part:
       ``(1) At-risk infant or toddler.--The term `at-risk infant 
     or toddler' means an individual under 3 years of age who 
     would be at risk of experiencing a substantial developmental 
     delay if early intervention services were not provided to the 
     individual.
       ``(2) Council.--The term `council' means a State 
     interagency coordinating council established under section 
     641.
       ``(3) Developmental delay.--The term `developmental delay', 
     when used with respect to an individual residing in a State, 
     has the meaning given such term by the State under section 
     635(a)(1).
       ``(4) Early intervention services.--The term `early 
     intervention services' means developmental services that--
       ``(A) are provided under public supervision;
       ``(B) are provided at no cost except where Federal or State 
     law provides for a system of payments by families, including 
     a schedule of sliding fees;
       ``(C) are designed to meet the developmental needs of an 
     infant or toddler with a disability, as identified by the 
     individualized family service plan team, in any 1 or more of 
     the following areas:
       ``(i) physical development;
       ``(ii) cognitive development;
       ``(iii) communication development;
       ``(iv) social or emotional development; or
       ``(v) adaptive development;
       ``(D) meet the standards of the State in which the services 
     are provided, including the requirements of this part;
       ``(E) include--
       ``(i) family training, counseling, and home visits;
       ``(ii) special instruction;
       ``(iii) speech-language pathology and audiology services, 
     and sign language and cued language services;
       ``(iv) occupational therapy;
       ``(v) physical therapy;
       ``(vi) psychological services;
       ``(vii) service coordination services;
       ``(viii) medical services only for diagnostic or evaluation 
     purposes;
       ``(ix) early identification, screening, and assessment 
     services;
       ``(x) health services necessary to enable the infant or 
     toddler to benefit from the other early intervention 
     services;
       ``(xi) social work services;
       ``(xii) vision services;
       ``(xiii) assistive technology devices and assistive 
     technology services; and
       ``(xiv) transportation and related costs that are necessary 
     to enable an infant or toddler and the infant's or toddler's 
     family to receive another service described in this 
     paragraph;
       ``(F) are provided by qualified personnel, including--
       ``(i) special educators;
       ``(ii) speech-language pathologists and audiologists;
       ``(iii) occupational therapists;
       ``(iv) physical therapists;
       ``(v) psychologists;
       ``(vi) social workers;
       ``(vii) nurses;
       ``(viii) registered dietitians;
       ``(ix) family therapists;
       ``(x) vision specialists, including ophthalmologists and 
     optometrists;
       ``(xi) orientation and mobility specialists; and
       ``(xii) pediatricians and other physicians;
       ``(G) to the maximum extent appropriate, are provided in 
     natural environments, including the home, and community 
     settings in which children without disabilities participate; 
     and
       ``(H) are provided in conformity with an individualized 
     family service plan adopted in accordance with section 636.
       ``(5) Infant or toddler with a disability.--The term 
     `infant or toddler with a disability'--
       ``(A) means an individual under 3 years of age who needs 
     early intervention services because the individual--
       ``(i) is experiencing developmental delays, as measured by 
     appropriate diagnostic instruments and procedures in 1 or 
     more of the areas of cognitive development, physical 
     development, communication development, social or emotional 
     development, and adaptive development; or
       ``(ii) has a diagnosed physical or mental condition that 
     has a high probability of resulting in developmental delay; 
     and
       ``(B) may also include, at a State's discretion--
       ``(i) at-risk infants and toddlers; and
       ``(ii) children with disabilities who are eligible for 
     services under section 619 and who previously received 
     services under this part until such children enter, or are 
     eligible under State law to enter, kindergarten or elementary 
     school, as appropriate, provided that any programs under this 
     part serving such children shall include--

       ``(I) an educational component that promotes school 
     readiness and incorporates pre-literacy, language, and 
     numeracy skills; and
       ``(II) a written notification to parents of their rights 
     and responsibilities in determining whether their child will 
     continue to receive services under this part or participate 
     in preschool programs under section 619.

     ``SEC. 633. GENERAL AUTHORITY.

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

     ``SEC. 634. ELIGIBILITY.

       ``In order to be eligible for a grant under section 633, a 
     State shall provide assurances to the Secretary that the 
     State--
       ``(1) has adopted a policy that appropriate early 
     intervention services are available to all infants and 
     toddlers with disabilities in the State and their families, 
     including Indian infants and toddlers with disabilities and 
     their families residing on a reservation geographically 
     located in the State, infants and toddlers with disabilities 
     who are homeless children and their families, and infants and 
     toddlers with disabilities who are wards of the State; and
       ``(2) has in effect a statewide system that meets the 
     requirements of section 635.

     ``SEC. 635. REQUIREMENTS FOR STATEWIDE SYSTEM.

       ``(a) In General.--A statewide system described in section 
     633 shall include, at a minimum, the following components:
       ``(1) A rigorous definition of the term `developmental 
     delay' that will be used by the State in carrying out 
     programs under this part in order to appropriately identify 
     infants and toddlers with disabilities that are in need of 
     services under this part.
       ``(2) A State policy that is in effect and that ensures 
     that appropriate early intervention services based on 
     scientifically based research,

[[Page H9920]]

     to the extent practicable, are available to all infants and 
     toddlers with disabilities and their families, including 
     Indian infants and toddlers with disabilities and their 
     families residing on a reservation geographically located in 
     the State and infants and toddlers with disabilities who are 
     homeless children and their families.
       ``(3) A timely, comprehensive, multidisciplinary evaluation 
     of the functioning of each infant or toddler with a 
     disability in the State, and a family-directed identification 
     of the needs of each family of such an infant or toddler, to 
     assist appropriately in the development of the infant or 
     toddler.
       ``(4) For each infant or toddler with a disability in the 
     State, an individualized family service plan in accordance 
     with section 636, including service coordination services in 
     accordance with such service plan.
       ``(5) A comprehensive child find system, consistent with 
     part B, including a system for making referrals to service 
     providers that includes timelines and provides for 
     participation by primary referral sources and that ensures 
     rigorous standards for appropriately identifying infants and 
     toddlers with disabilities for services under this part that 
     will reduce the need for future services.
       ``(6) A public awareness program focusing on early 
     identification of infants and toddlers with disabilities, 
     including the preparation and dissemination by the lead 
     agency designated or established under paragraph (10) to all 
     primary referral sources, especially hospitals and 
     physicians, of information to be given to parents, especially 
     to inform parents with premature infants, or infants with 
     other physical risk factors associated with learning or 
     developmental complications, on the availability of early 
     intervention services under this part and of services under 
     section 619, and procedures for assisting such sources in 
     disseminating such information to parents of infants and 
     toddlers with disabilities.
       ``(7) A central directory that includes information on 
     early intervention services, resources, and experts available 
     in the State and research and demonstration projects being 
     conducted in the State.
       ``(8) A comprehensive system of personnel development, 
     including the training of paraprofessionals and the training 
     of primary referral sources with respect to the basic 
     components of early intervention services available in the 
     State that--
       ``(A) shall include--
       ``(i) implementing innovative strategies and activities for 
     the recruitment and retention of early education service 
     providers;
       ``(ii) promoting the preparation of early intervention 
     providers who are fully and appropriately qualified to 
     provide early intervention services under this part; and
       ``(iii) training personnel to coordinate transition 
     services for infants and toddlers served under this part from 
     a program providing early intervention services under this 
     part and under part B (other than section 619), to a 
     preschool program receiving funds under section 619, or 
     another appropriate program; and
       ``(B) may include--
       ``(i) training personnel to work in rural and inner-city 
     areas; and
       ``(ii) training personnel in the emotional and social 
     development of young children.
       ``(9) Policies and procedures relating to the establishment 
     and maintenance of qualifications to ensure that personnel 
     necessary to carry out this part are appropriately and 
     adequately prepared and trained, including the establishment 
     and maintenance of qualifications that are consistent with 
     any State-approved or recognized certification, licensing, 
     registration, or other comparable requirements that apply to 
     the area in which such personnel are providing early 
     intervention services, except that nothing in this part 
     (including this paragraph) shall be construed to prohibit the 
     use of paraprofessionals and assistants who are appropriately 
     trained and supervised in accordance with State law, 
     regulation, or written policy, to assist in the provision of 
     early intervention services under this part to infants and 
     toddlers with disabilities.
       ``(10) A single line of responsibility in a lead agency 
     designated or established by the Governor for carrying out--
       ``(A) the general administration and supervision of 
     programs and activities receiving assistance under section 
     633, and the monitoring of programs and activities used by 
     the State to carry out this part, whether or not such 
     programs or activities are receiving assistance made 
     available under section 633, to ensure that the State 
     complies with this part;
       ``(B) the identification and coordination of all available 
     resources within the State from Federal, State, local, and 
     private sources;
       ``(C) the assignment of financial responsibility in 
     accordance with section 637(a)(2) to the appropriate 
     agencies;
       ``(D) the development of procedures to ensure that services 
     are provided to infants and toddlers with disabilities and 
     their families under this part in a timely manner pending the 
     resolution of any disputes among public agencies or service 
     providers;
       ``(E) the resolution of intra- and interagency disputes; 
     and
       ``(F) the entry into formal interagency agreements that 
     define the financial responsibility of each agency for paying 
     for early intervention services (consistent with State law) 
     and procedures for resolving disputes and that include all 
     additional components necessary to ensure meaningful 
     cooperation and coordination.
       ``(11) A policy pertaining to the contracting or making of 
     other arrangements with service providers to provide early 
     intervention services in the State, consistent with the 
     provisions of this part, including the contents of the 
     application used and the conditions of the contract or other 
     arrangements.
       ``(12) A procedure for securing timely reimbursements of 
     funds used under this part in accordance with section 640(a).
       ``(13) Procedural safeguards with respect to programs under 
     this part, as required by section 639.
       ``(14) A system for compiling data requested by the 
     Secretary under section 618 that relates to this part.
       ``(15) A State interagency coordinating council that meets 
     the requirements of section 641.
       ``(16) Policies and procedures to ensure that, consistent 
     with section 636(d)(5)--
       ``(A) to the maximum extent appropriate, early intervention 
     services are provided in natural environments; and
       ``(B) the provision of early intervention services for any 
     infant or toddler with a disability occurs in a setting other 
     than a natural environment that is most appropriate, as 
     determined by the parent and the individualized family 
     service plan team, only when early intervention cannot be 
     achieved satisfactorily for the infant or toddler in a 
     natural environment.
       ``(b) Policy.--In implementing subsection (a)(9), a State 
     may adopt a policy that includes making ongoing good-faith 
     efforts to recruit and hire appropriately and adequately 
     trained personnel to provide early intervention services to 
     infants and toddlers with disabilities, including, in a 
     geographic area of the State where there is a shortage of 
     such personnel, the most qualified individuals available who 
     are making satisfactory progress toward completing applicable 
     course work necessary to meet the standards described in 
     subsection (a)(9).
       ``(c) Flexibility To Serve Children 3 Years of Age Until 
     Entrance Into Elementary School.--
       ``(1) In general.--A statewide system described in section 
     633 may include a State policy, developed and implemented 
     jointly by the lead agency and the State educational agency, 
     under which parents of children with disabilities who are 
     eligible for services under section 619 and previously 
     received services under this part, may choose the 
     continuation of early intervention services (which shall 
     include an educational component that promotes school 
     readiness and incorporates preliteracy, language, and 
     numeracy skills) for such children under this part until such 
     children enter, or are eligible under State law to enter, 
     kindergarten.
       ``(2) Requirements.--If a statewide system includes a State 
     policy described in paragraph (1), the statewide system shall 
     ensure that--
       ``(A) parents of children with disabilities served pursuant 
     to this subsection are provided annual notice that contains--
       ``(i) a description of the rights of such parents to elect 
     to receive services pursuant to this subsection or under part 
     B; and
       ``(ii) an explanation of the differences between services 
     provided pursuant to this subsection and services provided 
     under part B, including--

       ``(I) types of services and the locations at which the 
     services are provided;
       ``(II) applicable procedural safeguards; and
       ``(III) possible costs (including any fees to be charged to 
     families as described in section 632(4)(B)), if any, to 
     parents of infants or toddlers with disabilities;

       ``(B) services provided pursuant to this subsection include 
     an educational component that promotes school readiness and 
     incorporates preliteracy, language, and numeracy skills;
       ``(C) the State policy will not affect the right of any 
     child served pursuant to this subsection to instead receive a 
     free appropriate public education under part B;
       ``(D) all early intervention services outlined in the 
     child's individualized family service plan under section 636 
     are continued while any eligibility determination is being 
     made for services under this subsection;
       ``(E) the parents of infants or toddlers with disabilities 
     (as defined in section 632(5)(A)) provide informed written 
     consent to the State, before such infants or toddlers reach 3 
     years of age, as to whether such parents intend to choose the 
     continuation of early intervention services pursuant to this 
     subsection for such infants or toddlers;
       ``(F) the requirements under section 637(a)(9) shall not 
     apply with respect to a child who is receiving services in 
     accordance with this subsection until not less than 90 days 
     (and at the discretion of the parties to the conference, not 
     more than 9 months) before the time the child will no longer 
     receive those services; and
       ``(G) there will be a referral for evaluation for early 
     intervention services of a child who experiences a 
     substantiated case of trauma due to exposure to family 
     violence (as defined in section 320 of the Family Violence 
     Prevention and Services Act).
       ``(3) Reporting requirement.--If a statewide system 
     includes a State policy described in paragraph (1), the State 
     shall submit to the Secretary, in the State's report under 
     section 637(b)(4)(A), a report on the number and percentage 
     of children with disabilities who are eligible for services 
     under section 619 but whose parents choose for such children 
     to continue to receive early intervention services under this 
     part.
       ``(4) Available funds.--If a statewide system includes a 
     State policy described in paragraph (1), the policy shall 
     describe the funds (including an identification as Federal, 
     State, or local funds) that will be used to ensure that the 
     option described in paragraph (1) is available to eligible 
     children and families who provide the consent described in 
     paragraph (2)(E), including fees (if any) to be charged to 
     families as described in section 632(4)(B).
       ``(5) Rules of construction.--
       ``(A) Services under part b.--If a statewide system 
     includes a State policy described in paragraph (1), a State 
     that provides services in accordance with this subsection to 
     a child with a

[[Page H9921]]

     disability who is eligible for services under section 619 
     shall not be required to provide the child with a free 
     appropriate public education under part B for the period of 
     time in which the child is receiving services under this 
     part.
       ``(B) Services under this part.--Nothing in this subsection 
     shall be construed to require a provider of services under 
     this part to provide a child served under this part with a 
     free appropriate public education.

     ``SEC. 636. INDIVIDUALIZED FAMILY SERVICE PLAN.

       ``(a) Assessment and Program Development.--A statewide 
     system described in section 633 shall provide, at a minimum, 
     for each infant or toddler with a disability, and the 
     infant's or toddler's family, to receive--
       ``(1) a multidisciplinary assessment of the unique 
     strengths and needs of the infant or toddler and the 
     identification of services appropriate to meet such needs;
       ``(2) a family-directed assessment of the resources, 
     priorities, and concerns of the family and the identification 
     of the supports and services necessary to enhance the 
     family's capacity to meet the developmental needs of the 
     infant or toddler; and
       ``(3) a written individualized family service plan 
     developed by a multidisciplinary team, including the parents, 
     as required by subsection (e), including a description of the 
     appropriate transition services for the infant or toddler.
       ``(b) Periodic Review.--The individualized family service 
     plan shall be evaluated once a year and the family shall be 
     provided a review of the plan at 6-month intervals (or more 
     often where appropriate based on infant or toddler and family 
     needs).
       ``(c) Promptness After Assessment.--The individualized 
     family service plan shall be developed within a reasonable 
     time after the assessment required by subsection (a)(1) is 
     completed. With the parents' consent, early intervention 
     services may commence prior to the completion of the 
     assessment.
       ``(d) Content of Plan.--The individualized family service 
     plan shall be in writing and contain--
       ``(1) a statement of the infant's or toddler's present 
     levels of physical development, cognitive development, 
     communication development, social or emotional development, 
     and adaptive development, based on objective criteria;
       ``(2) a statement of the family's resources, priorities, 
     and concerns relating to enhancing the development of the 
     family's infant or toddler with a disability;
       ``(3) a statement of the measurable results or outcomes 
     expected to be achieved for the infant or toddler and the 
     family, including pre-literacy and language skills, as 
     developmentally appropriate for the child, and the criteria, 
     procedures, and timelines used to determine the degree to 
     which progress toward achieving the results or outcomes is 
     being made and whether modifications or revisions of the 
     results or outcomes or services are necessary;
       ``(4) a statement of specific early intervention services 
     based on peer-reviewed research, to the extent practicable, 
     necessary to meet the unique needs of the infant or toddler 
     and the family, including the frequency, intensity, and 
     method of delivering services;
       ``(5) a statement of the natural environments in which 
     early intervention services will appropriately be provided, 
     including a justification of the extent, if any, to which the 
     services will not be provided in a natural environment;
       ``(6) the projected dates for initiation of services and 
     the anticipated length, duration, and frequency of the 
     services;
       ``(7) the identification of the service coordinator from 
     the profession most immediately relevant to the infant's or 
     toddler's or family's needs (or who is otherwise qualified to 
     carry out all applicable responsibilities under this part) 
     who will be responsible for the implementation of the plan 
     and coordination with other agencies and persons, including 
     transition services; and
       ``(8) the steps to be taken to support the transition of 
     the toddler with a disability to preschool or other 
     appropriate services.
       ``(e) Parental Consent.--The contents of the individualized 
     family service plan shall be fully explained to the parents 
     and informed written consent from the parents shall be 
     obtained prior to the provision of early intervention 
     services described in such plan. If the parents do not 
     provide consent with respect to a particular early 
     intervention service, then only the early intervention 
     services to which consent is obtained shall be provided.

     ``SEC. 637. STATE APPLICATION AND ASSURANCES.

       ``(a) Application.--A State desiring to receive a grant 
     under section 633 shall submit an application to the 
     Secretary at such time and in such manner as the Secretary 
     may reasonably require. The application shall contain--
       ``(1) a designation of the lead agency in the State that 
     will be responsible for the administration of funds provided 
     under section 633;
       ``(2) a certification to the Secretary that the 
     arrangements to establish financial responsibility for 
     services provided under this part pursuant to section 640(b) 
     are current as of the date of submission of the 
     certification;
       ``(3) information demonstrating eligibility of the State 
     under section 634, including--
       ``(A) information demonstrating to the Secretary's 
     satisfaction that the State has in effect the statewide 
     system required by section 633; and
       ``(B) a description of services to be provided to infants 
     and toddlers with disabilities and their families through the 
     system;
       ``(4) if the State provides services to at-risk infants and 
     toddlers through the statewide system, a description of such 
     services;
       ``(5) a description of the uses for which funds will be 
     expended in accordance with this part;
       ``(6) a description of the State policies and procedures 
     that require the referral for early intervention services 
     under this part of a child under the age of 3 who--
       ``(A) is involved in a substantiated case of child abuse or 
     neglect; or
       ``(B) is identified as affected by illegal substance abuse, 
     or withdrawal symptoms resulting from prenatal drug exposure;
       ``(7) a description of the procedure used to ensure that 
     resources are made available under this part for all 
     geographic areas within the State;
       ``(8) a description of State policies and procedures that 
     ensure that, prior to the adoption by the State of any other 
     policy or procedure necessary to meet the requirements of 
     this part, there are public hearings, adequate notice of the 
     hearings, and an opportunity for comment available to the 
     general public, including individuals with disabilities and 
     parents of infants and toddlers with disabilities;
       ``(9) a description of the policies and procedures to be 
     used--
       ``(A) to ensure a smooth transition for toddlers receiving 
     early intervention services under this part (and children 
     receiving those services under section 635(c)) to preschool, 
     school, other appropriate services, or exiting the program, 
     including a description of how--
       ``(i) the families of such toddlers and children will be 
     included in the transition plans required by subparagraph 
     (C); and
       ``(ii) the lead agency designated or established under 
     section 635(a)(10) will--

       ``(I) notify the local educational agency for the area in 
     which such a child resides that the child will shortly reach 
     the age of eligibility for preschool services under part B, 
     as determined in accordance with State law;
       ``(II) in the case of a child who may be eligible for such 
     preschool services, with the approval of the family of the 
     child, convene a conference among the lead agency, the 
     family, and the local educational agency not less than 90 
     days (and at the discretion of all such parties, not more 
     than 9 months) before the child is eligible for the preschool 
     services, to discuss any such services that the child may 
     receive; and
       ``(III) in the case of a child who may not be eligible for 
     such preschool services, with the approval of the family, 
     make reasonable efforts to convene a conference among the 
     lead agency, the family, and providers of other appropriate 
     services for children who are not eligible for preschool 
     services under part B, to discuss the appropriate services 
     that the child may receive;

       ``(B) to review the child's program options for the period 
     from the child's third birthday through the remainder of the 
     school year; and
       ``(C) to establish a transition plan, including, as 
     appropriate, steps to exit from the program;
       ``(10) a description of State efforts to promote 
     collaboration among Early Head Start programs under section 
     645A of the Head Start Act, early education and child care 
     programs, and services under part C; and
       ``(11) such other information and assurances as the 
     Secretary may reasonably require.
       ``(b) Assurances.--The application described in subsection 
     (a)--
       ``(1) shall provide satisfactory assurance that Federal 
     funds made available under section 643 to the State will be 
     expended in accordance with this part;
       ``(2) shall contain an assurance that the State will comply 
     with the requirements of section 640;
       ``(3) shall provide satisfactory assurance that the control 
     of funds provided under section 643, and title to property 
     derived from those funds, will be in a public agency for the 
     uses and purposes provided in this part and that a public 
     agency will administer such funds and property;
       ``(4) shall provide for--
       ``(A) making such reports in such form and containing such 
     information as the Secretary may require to carry out the 
     Secretary's functions under this part; and
       ``(B) keeping such reports and affording such access to the 
     reports as the Secretary may find necessary to ensure the 
     correctness and verification of those reports and proper 
     disbursement of Federal funds under this part;
       ``(5) provide satisfactory assurance that Federal funds 
     made available under section 643 to the State--
       ``(A) will not be commingled with State funds; and
       ``(B) will be used so as to supplement the level of State 
     and local funds expended for infants and toddlers with 
     disabilities and their families and in no case to supplant 
     those State and local funds;
       ``(6) shall provide satisfactory assurance that such fiscal 
     control and fund accounting procedures will be adopted as may 
     be necessary to ensure proper disbursement of, and accounting 
     for, Federal funds paid under section 643 to the State;
       ``(7) shall provide satisfactory assurance that policies 
     and procedures have been adopted to ensure meaningful 
     involvement of underserved groups, including minority, low-
     income, homeless, and rural families and children with 
     disabilities who are wards of the State, in the planning and 
     implementation of all the requirements of this part; and
       ``(8) shall contain such other information and assurances 
     as the Secretary may reasonably require by regulation.
       ``(c) Standard for Disapproval of Application.--The 
     Secretary may not disapprove such an application unless the 
     Secretary determines, after notice and opportunity for a 
     hearing, that the application fails to comply with the 
     requirements of this section.
       ``(d) Subsequent State Application.--If a State has on file 
     with the Secretary a policy, procedure, or assurance that 
     demonstrates that the State meets a requirement of this 
     section, including any policy or procedure filed under this 
     part (as in effect before the date of enactment of

[[Page H9922]]

     the Individuals with Disabilities Education Improvement Act 
     of 2004), the Secretary shall consider the State to have met 
     the requirement for purposes of receiving a grant under this 
     part.
       ``(e) Modification of Application.--An application 
     submitted by a State in accordance with this section shall 
     remain in effect until the State submits to the Secretary 
     such modifications as the State determines necessary. This 
     section shall apply to a modification of an application to 
     the same extent and in the same manner as this section 
     applies to the original application.
       ``(f) Modifications Required by the Secretary.--The 
     Secretary may require a State to modify its application under 
     this section, but only to the extent necessary to ensure the 
     State's compliance with this part, if--
       ``(1) an amendment is made to this title, or a Federal 
     regulation issued under this title;
       ``(2) a new interpretation of this title is made by a 
     Federal court or the State's highest court; or
       ``(3) an official finding of noncompliance with Federal law 
     or regulations is made with respect to the State.

     ``SEC. 638. USES OF FUNDS.

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

     ``SEC. 639. PROCEDURAL SAFEGUARDS.

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

     ``SEC. 640. PAYOR OF LAST RESORT.

       ``(a) Nonsubstitution.--Funds provided under section 643 
     may not be used to satisfy a financial commitment for 
     services that would have been paid for from another public or 
     private source, including any medical program administered by 
     the Secretary of Defense, but for the enactment of this part, 
     except that whenever considered necessary to prevent a delay 
     in the receipt of appropriate early intervention services by 
     an infant, toddler, or family in a timely fashion, funds 
     provided under section 643 may be used to pay the provider of 
     services pending reimbursement from the agency that has 
     ultimate responsibility for the payment.
       ``(b) Obligations Related to and Methods of Ensuring 
     Services.--
       ``(1) Establishing financial responsibility for services.--
       ``(A) In general.--The Chief Executive Officer of a State 
     or designee of the officer shall ensure that an interagency 
     agreement or other mechanism for interagency coordination is 
     in effect between each public agency and the designated lead 
     agency, in order to ensure--
       ``(i) the provision of, and financial responsibility for, 
     services provided under this part; and
       ``(ii) such services are consistent with the requirements 
     of section 635 and the State's application pursuant to 
     section 637, including the provision of such services during 
     the pendency of any such dispute.
       ``(B) Consistency between agreements or mechanisms under 
     part b.--The Chief Executive Officer of a State or designee 
     of the officer shall ensure that the terms and conditions of 
     such agreement or mechanism are consistent with the terms and 
     conditions of the State's agreement or mechanism under 
     section 612(a)(12), where appropriate.
       ``(2) Reimbursement for services by public agency.--
       ``(A) In general.--If a public agency other than an 
     educational agency fails to provide or pay for the services 
     pursuant to an agreement required under paragraph (1), the 
     local educational agency or State agency (as determined by 
     the Chief Executive Officer or designee) shall provide or pay 
     for the provision of such services to the child.
       ``(B) Reimbursement.--Such local educational agency or 
     State agency is authorized to claim reimbursement for the 
     services from the public agency that failed to provide or pay 
     for such services and such public agency shall reimburse the 
     local educational agency or State agency pursuant to the 
     terms of the interagency agreement or other mechanism 
     required under paragraph (1).
       ``(3) Special rule.--The requirements of paragraph (1) may 
     be met through--
       ``(A) State statute or regulation;
       ``(B) signed agreements between respective agency officials 
     that clearly identify the responsibilities of each agency 
     relating to the provision of services; or
       ``(C) other appropriate written methods as determined by 
     the Chief Executive Officer of the State or designee of the 
     officer and approved by the Secretary through the review and 
     approval of the State's application pursuant to section 637.
       ``(c) Reduction of Other Benefits.--Nothing in this part 
     shall be construed to permit the State to reduce medical or 
     other assistance available or to alter eligibility under 
     title V of the Social Security Act (relating to maternal and 
     child health) or title XIX of the Social Security Act 
     (relating to medicaid for infants or toddlers with 
     disabilities) within the State.

     ``SEC. 641. STATE INTERAGENCY COORDINATING COUNCIL.

       ``(a) Establishment.--
       ``(1) In general.--A State that desires to receive 
     financial assistance under this part shall establish a State 
     interagency coordinating council.
       ``(2) Appointment.--The council shall be appointed by the 
     Governor. In making appointments to the council, the Governor 
     shall ensure that the membership of the council reasonably 
     represents the population of the State.
       ``(3) Chairperson.--The Governor shall designate a member 
     of the council to serve as the chairperson of the council, or 
     shall require the council to so designate such a member. Any 
     member of the council who is a representative of the lead 
     agency designated under section 635(a)(10) may not serve as 
     the chairperson of the council.
       ``(b) Composition.--
       ``(1) In general.--The council shall be composed as 
     follows:

[[Page H9923]]

       ``(A) Parents.--Not less than 20 percent of the members 
     shall be parents of infants or toddlers with disabilities or 
     children with disabilities aged 12 or younger, with knowledge 
     of, or experience with, programs for infants and toddlers 
     with disabilities. Not less than 1 such member shall be a 
     parent of an infant or toddler with a disability or a child 
     with a disability aged 6 or younger.
       ``(B) Service providers.--Not less than 20 percent of the 
     members shall be public or private providers of early 
     intervention services.
       ``(C) State legislature.--Not less than 1 member shall be 
     from the State legislature.
       ``(D) Personnel preparation.--Not less than 1 member shall 
     be involved in personnel preparation.
       ``(E) Agency for early intervention services.--Not less 
     than 1 member shall be from each of the State agencies 
     involved in the provision of, or payment for, early 
     intervention services to infants and toddlers with 
     disabilities and their families and shall have sufficient 
     authority to engage in policy planning and implementation on 
     behalf of such agencies.
       ``(F) Agency for preschool services.--Not less than 1 
     member shall be from the State educational agency responsible 
     for preschool services to children with disabilities and 
     shall have sufficient authority to engage in policy planning 
     and implementation on behalf of such agency.
       ``(G) State medicaid agency.--Not less than 1 member shall 
     be from the agency responsible for the State medicaid 
     program.
       ``(H) Head start agency.--Not less than 1 member shall be a 
     representative from a Head Start agency or program in the 
     State.
       ``(I) Child care agency.--Not less than 1 member shall be a 
     representative from a State agency responsible for child 
     care.
       ``(J) Agency for health insurance.--Not less than 1 member 
     shall be from the agency responsible for the State regulation 
     of health insurance.
       ``(K) Office of the coordinator of education of homeless 
     children and youth.--Not less than 1 member shall be a 
     representative designated by the Office of Coordinator for 
     Education of Homeless Children and Youths.
       ``(L) State foster care representative.--Not less than 1 
     member shall be a representative from the State child welfare 
     agency responsible for foster care.
       ``(M) Mental health agency.--Not less than 1 member shall 
     be a representative from the State agency responsible for 
     children's mental health.
       ``(2) Other members.--The council may include other members 
     selected by the Governor, including a representative from the 
     Bureau of Indian Affairs (BIA), or where there is no BIA-
     operated or BIA-funded school, from the Indian Health Service 
     or the tribe or tribal council.
       ``(c) Meetings.--The council shall meet, at a minimum, on a 
     quarterly basis, and in such places as the council determines 
     necessary. The meetings shall be publicly announced, and, to 
     the extent appropriate, open and accessible to the general 
     public.
       ``(d) Management Authority.--Subject to the approval of the 
     Governor, the council may prepare and approve a budget using 
     funds under this part to conduct hearings and forums, to 
     reimburse members of the council for reasonable and necessary 
     expenses for attending council meetings and performing 
     council duties (including child care for parent 
     representatives), to pay compensation to a member of the 
     council if the member is not employed or must forfeit wages 
     from other employment when performing official council 
     business, to hire staff, and to obtain the services of such 
     professional, technical, and clerical personnel as may be 
     necessary to carry out its functions under this part.
       ``(e) Functions of Council.--
       ``(1) Duties.--The council shall--
       ``(A) advise and assist the lead agency designated or 
     established under section 635(a)(10) in the performance of 
     the responsibilities set forth in such section, particularly 
     the identification of the sources of fiscal and other support 
     for services for early intervention programs, assignment of 
     financial responsibility to the appropriate agency, and the 
     promotion of the interagency agreements;
       ``(B) advise and assist the lead agency in the preparation 
     of applications and amendments thereto;
       ``(C) advise and assist the State educational agency 
     regarding the transition of toddlers with disabilities to 
     preschool and other appropriate services; and
       ``(D) prepare and submit an annual report to the Governor 
     and to the Secretary on the status of early intervention 
     programs for infants and toddlers with disabilities and their 
     families operated within the State.
       ``(2) Authorized activity.--The council may advise and 
     assist the lead agency and the State educational agency 
     regarding the provision of appropriate services for children 
     from birth through age 5. The council may advise appropriate 
     agencies in the State with respect to the integration of 
     services for infants and toddlers with disabilities and at-
     risk infants and toddlers and their families, regardless of 
     whether at-risk infants and toddlers are eligible for early 
     intervention services in the State.
       ``(f) Conflict of Interest.--No member of the council shall 
     cast a vote on any matter that is likely to provide a direct 
     financial benefit to that member or otherwise give the 
     appearance of a conflict of interest under State law.

     ``SEC. 642. FEDERAL ADMINISTRATION.

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

     ``SEC. 643. ALLOCATION OF FUNDS.

       ``(a) Reservation of Funds for Outlying Areas.--
       ``(1) In general.--From the sums appropriated to carry out 
     this part for any fiscal year, the Secretary may reserve not 
     more than 1 percent for payments to Guam, American Samoa, the 
     United States Virgin Islands, and the Commonwealth of the 
     Northern Mariana Islands in accordance with their respective 
     needs for assistance under this part.
       ``(2) Consolidation of funds.--The provisions of Public Law 
     95-134, permitting the consolidation of grants to the 
     outlying areas, shall not apply to funds those areas receive 
     under this part.
       ``(b) Payments to Indians.--
       ``(1) In general.--The Secretary shall, subject to this 
     subsection, make payments to the Secretary of the Interior to 
     be distributed to tribes, tribal organizations (as defined 
     under section 4 of the Indian Self-Determination and 
     Education Assistance Act), or consortia of the above entities 
     for the coordination of assistance in the provision of early 
     intervention services by the States to infants and toddlers 
     with disabilities and their families on reservations served 
     by elementary schools and secondary schools for Indian 
     children operated or funded by the Department of the 
     Interior. The amount of such payment for any fiscal year 
     shall be 1.25 percent of the aggregate of the amount 
     available to all States under this part for such fiscal year.
       ``(2) Allocation.--For each fiscal year, the Secretary of 
     the Interior shall distribute the entire payment received 
     under paragraph (1) by providing to each tribe, tribal 
     organization, or consortium an amount based on the number of 
     infants and toddlers residing on the reservation, as 
     determined annually, divided by the total of such children 
     served by all tribes, tribal organizations, or consortia.
       ``(3) Information.--To receive a payment under this 
     subsection, the tribe, tribal organization, or consortium 
     shall submit such information to the Secretary of the 
     Interior as is needed to determine the amounts to be 
     distributed under paragraph (2).
       ``(4) Use of funds.--The funds received by a tribe, tribal 
     organization, or consortium shall be used to assist States in 
     child find, screening, and other procedures for the early 
     identification of Indian children under 3 years of age and 
     for parent training. Such funds may also be used to provide 
     early intervention services in accordance with this part. 
     Such activities may be carried out directly or through 
     contracts or cooperative agreements with the Bureau of Indian 
     Affairs, local educational agencies, and other public or 
     private nonprofit organizations. The tribe, tribal 
     organization, or consortium is encouraged to involve Indian 
     parents in the development and implementation of these 
     activities. The above entities shall, as appropriate, make 
     referrals to local, State, or Federal entities for the 
     provision of services or further diagnosis.
       ``(5) Reports.--To be eligible to receive a payment under 
     paragraph (2), a tribe, tribal organization, or consortium 
     shall make a biennial report to the Secretary of the Interior 
     of activities undertaken under this subsection, including the 
     number of contracts and cooperative agreements entered into, 
     the number of infants and toddlers contacted and receiving 
     services for each year, and the estimated number of infants 
     and toddlers needing services during the 2 years following 
     the year in which the report is made. The Secretary of the 
     Interior shall include a summary of this information on a 
     biennial basis to the Secretary of Education along with such 
     other information as required under section 611(h)(3)(E). The 
     Secretary of Education may require any additional information 
     from the Secretary of the Interior.
       ``(6) Prohibited uses of funds.--None of the funds under 
     this subsection may be used by the Secretary of the Interior 
     for administrative purposes, including child count, and the 
     provision of technical assistance.
       ``(c) State Allotments.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), from the funds remaining for each fiscal year after the 
     reservation and payments under subsections (a), (b), and (e), 
     the Secretary shall first allot to each State an amount that 
     bears the same ratio to the amount of such remainder as the 
     number of infants and toddlers in the State bears to the 
     number of infants and toddlers in all States.
       ``(2) Minimum allotments.--Except as provided in paragraph 
     (3), no State shall receive an amount under this section for 
     any fiscal year that is less than the greater of--
       ``(A) \1/2\ of 1 percent of the remaining amount described 
     in paragraph (1); or
       ``(B) $500,000.
       ``(3) Ratable reduction.--
       ``(A) In general.--If the sums made available under this 
     part for any fiscal year are insufficient to pay the full 
     amounts that all States are eligible to receive under this 
     subsection for such year, the Secretary shall ratably reduce 
     the allotments to such States for such year.
       ``(B) Additional funds.--If additional funds become 
     available for making payments under this subsection for a 
     fiscal year, allotments that were reduced under subparagraph 
     (A) shall be increased on the same basis the allotments were 
     reduced.
       ``(4) Definitions.--In this subsection--
       ``(A) the terms `infants' and `toddlers' mean children 
     under 3 years of age; and

[[Page H9924]]

       ``(B) the term `State' means each of the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.
       ``(d) Reallotment of Funds.--If a State elects not to 
     receive its allotment under subsection (c), the Secretary 
     shall reallot, among the remaining States, amounts from such 
     State in accordance with such subsection.
       ``(e) Reservation for State Incentive Grants.--
       ``(1) In general.--For any fiscal year for which the amount 
     appropriated pursuant to the authorization of appropriations 
     under section 644 exceeds $460,000,000, the Secretary shall 
     reserve 15 percent of such appropriated amount to provide 
     grants to States that are carrying out the policy described 
     in section 635(c) in order to facilitate the implementation 
     of such policy.
       ``(2) Amount of grant.--
       ``(A) In general.--Notwithstanding paragraphs (2) and (3) 
     of subsection (c), the Secretary shall provide a grant to 
     each State under paragraph (1) in an amount that bears the 
     same ratio to the amount reserved under such paragraph as the 
     number of infants and toddlers in the State bears to the 
     number of infants and toddlers in all States receiving grants 
     under such paragraph.
       ``(B) Maximum amount.--No State shall receive a grant under 
     paragraph (1) for any fiscal year in an amount that is 
     greater than 20 percent of the amount reserved under such 
     paragraph for the fiscal year.
       ``(3) Carryover of amounts.--
       ``(A) 1st succeeding fiscal year.--Pursuant to section 
     421(b) of the General Education Provisions Act, amounts under 
     a grant provided under paragraph (1) that are not obligated 
     and expended prior to the beginning of the first fiscal year 
     succeeding the fiscal year for which such amounts were 
     appropriated shall remain available for obligation and 
     expenditure during such first succeeding fiscal year.
       ``(B) 2d succeeding fiscal year.--Amounts under a grant 
     provided under paragraph (1) that are not obligated and 
     expended prior to the beginning of the second fiscal year 
     succeeding the fiscal year for which such amounts were 
     appropriated shall be returned to the Secretary and used to 
     make grants to States under section 633 (from their 
     allotments under this section) during such second succeeding 
     fiscal year.

     ``SEC. 644. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this part, there are 
     authorized to be appropriated such sums as may be necessary 
     for each of the fiscal years 2005 through 2010.

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

     ``SEC. 650. FINDINGS.

       ``Congress finds the following:
       ``(1) The Federal Government has an ongoing obligation to 
     support activities that contribute to positive results for 
     children with disabilities, enabling those children to lead 
     productive and independent adult lives.
       ``(2) Systemic change benefiting all students, including 
     children with disabilities, requires the involvement of 
     States, local educational agencies, parents, individuals with 
     disabilities and their families, teachers and other service 
     providers, and other interested individuals and organizations 
     to develop and implement comprehensive strategies that 
     improve educational results for children with disabilities.
       ``(3) State educational agencies, in partnership with local 
     educational agencies, parents of children with disabilities, 
     and other individuals and organizations, are in the best 
     position to improve education for children with disabilities 
     and to address their special needs.
       ``(4) An effective educational system serving students with 
     disabilities should--
       ``(A) maintain high academic achievement standards and 
     clear performance goals for children with disabilities, 
     consistent with the standards and expectations for all 
     students in the educational system, and provide for 
     appropriate and effective strategies and methods to ensure 
     that all children with disabilities have the opportunity to 
     achieve those standards and goals;
       ``(B) clearly define, in objective, measurable terms, the 
     school and post-school results that children with 
     disabilities are expected to achieve; and
       ``(C) promote transition services and coordinate State and 
     local education, social, health, mental health, and other 
     services, in addressing the full range of student needs, 
     particularly the needs of children with disabilities who need 
     significant levels of support to participate and learn in 
     school and the community.
       ``(5) The availability of an adequate number of qualified 
     personnel is critical--
       ``(A) to serve effectively children with disabilities;
       ``(B) to assume leadership positions in administration and 
     direct services;
       ``(C) to provide teacher training; and
       ``(D) to conduct high quality research to improve special 
     education.
       ``(6) High quality, comprehensive professional development 
     programs are essential to ensure that the persons responsible 
     for the education or transition of children with disabilities 
     possess the skills and knowledge necessary to address the 
     educational and related needs of those children.
       ``(7) Models of professional development should be 
     scientifically based and reflect successful practices, 
     including strategies for recruiting, preparing, and retaining 
     personnel.
       ``(8) Continued support is essential for the development 
     and maintenance of a coordinated and high quality program of 
     research to inform successful teaching practices and model 
     curricula for educating children with disabilities.
       ``(9) Training, technical assistance, support, and 
     dissemination activities are necessary to ensure that parts B 
     and C are fully implemented and achieve high quality early 
     intervention, educational, and transitional results for 
     children with disabilities and their families.
       ``(10) Parents, teachers, administrators, and related 
     services personnel need technical assistance and information 
     in a timely, coordinated, and accessible manner in order to 
     improve early intervention, educational, and transitional 
     services and results at the State and local levels for 
     children with disabilities and their families.
       ``(11) Parent training and information activities assist 
     parents of a child with a disability in dealing with the 
     multiple pressures of parenting such a child and are of 
     particular importance in--
       ``(A) playing a vital role in creating and preserving 
     constructive relationships between parents of children with 
     disabilities and schools by facilitating open communication 
     between the parents and schools; encouraging dispute 
     resolution at the earliest possible point in time; and 
     discouraging the escalation of an adversarial process between 
     the parents and schools;
       ``(B) ensuring the involvement of parents in planning and 
     decisionmaking with respect to early intervention, 
     educational, and transitional services;
       ``(C) achieving high quality early intervention, 
     educational, and transitional results for children with 
     disabilities;
       ``(D) providing such parents information on their rights, 
     protections, and responsibilities under this title to ensure 
     improved early intervention, educational, and transitional 
     results for children with disabilities;
       ``(E) assisting such parents in the development of skills 
     to participate effectively in the education and development 
     of their children and in the transitions described in section 
     673(b)(6);
       ``(F) supporting the roles of such parents as participants 
     within partnerships seeking to improve early intervention, 
     educational, and transitional services and results for 
     children with disabilities and their families; and
       ``(G) supporting such parents who may have limited access 
     to services and supports, due to economic, cultural, or 
     linguistic barriers.
       ``(12) Support is needed to improve technological resources 
     and integrate technology, including universally designed 
     technologies, into the lives of children with disabilities, 
     parents of children with disabilities, school personnel, and 
     others through curricula, services, and assistive 
     technologies.

            ``Subpart 1--State Personnel Development Grants

     ``SEC. 651. PURPOSE; DEFINITION OF PERSONNEL; PROGRAM 
                   AUTHORITY.

       ``(a) Purpose.--The purpose of this subpart is to assist 
     State educational agencies in reforming and improving their 
     systems for personnel preparation and professional 
     development in early intervention, educational, and 
     transition services in order to improve results for children 
     with disabilities.
       ``(b) Definition of Personnel.--In this subpart the term 
     `personnel' means special education teachers, regular 
     education teachers, principals, administrators, related 
     services personnel, paraprofessionals, and early intervention 
     personnel serving infants, toddlers, preschoolers, or 
     children with disabilities, except where a particular 
     category of personnel, such as related services personnel, is 
     identified.
       ``(c) Competitive Grants.--
       ``(1) In general.--Except as provided in subsection (d), 
     for any fiscal year for which the amount appropriated under 
     section 655, that remains after the Secretary reserves funds 
     under subsection (e) for the fiscal year, is less than 
     $100,000,000, the Secretary shall award grants, on a 
     competitive basis, to State educational agencies to carry out 
     the activities described in the State plan submitted under 
     section 653.
       ``(2) Priority.--In awarding grants under paragraph (1), 
     the Secretary may give priority to State educational agencies 
     that--
       ``(A) are in States with the greatest personnel shortages; 
     or
       ``(B) demonstrate the greatest difficulty meeting the 
     requirements of section 612(a)(14).
       ``(3) Minimum amount.--The Secretary shall make a grant to 
     each State educational agency selected under paragraph (1) in 
     an amount for each fiscal year that is--
       ``(A) not less than $500,000, nor more than $4,000,000, in 
     the case of the 50 States, the District of Columbia, and the 
     Commonwealth of Puerto Rico; and
       ``(B) not less than $80,000 in the case of an outlying 
     area.
       ``(4) Increase in amount.--The Secretary may increase the 
     amounts of grants under paragraph (4) to account for 
     inflation.
       ``(5) Factors.--The Secretary shall determine the amount of 
     a grant under paragraph (1) after considering--
       ``(A) the amount of funds available for making the grants;
       ``(B) the relative population of the State or outlying 
     area;
       ``(C) the types of activities proposed by the State or 
     outlying area;
       ``(D) the alignment of proposed activities with section 
     612(a)(14);
       ``(E) the alignment of proposed activities with the State 
     plans and applications submitted under sections 1111 and 
     2112, respectively, of the Elementary and Secondary Education 
     Act of 1965; and
       ``(F) the use, as appropriate, of scientifically based 
     research activities.
       ``(d) Formula Grants.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), for the first fiscal year for which the amount 
     appropriated under section 655, that remains after the 
     Secretary reserves funds under subsection (e) for the fiscal 
     year, is equal to or greater than $100,000,000, and for each 
     fiscal year thereafter, the Secretary shall allot to each 
     State educational agency, whose

[[Page H9925]]

     application meets the requirements of this subpart, an amount 
     that bears the same relation to the amount remaining as the 
     amount the State received under section 611(d) for that 
     fiscal year bears to the amount of funds received by all 
     States (whose applications meet the requirements of this 
     subpart) under section 611(d) for that fiscal year.
       ``(2) Minimum allotments for states that received 
     competitive grants.--
       ``(A) In general.--The amount allotted under this 
     subsection to any State educational agency that received a 
     competitive multi-year grant under subsection (c) for which 
     the grant period has not expired shall be not less than the 
     amount specified for that fiscal year in the State 
     educational agency's grant award document under that 
     subsection.
       ``(B) Special rule.--Each such State educational agency 
     shall use the minimum amount described in subparagraph (A) 
     for the activities described in the State educational 
     agency's competitive grant award document for that year, 
     unless the Secretary approves a request from the State 
     educational agency to spend the funds on other activities.
       ``(3) Minimum allotment.--The amount of any State 
     educational agency's allotment under this subsection for any 
     fiscal year shall not be less than--
       ``(A) the greater of $500,000 or \1/2\ of 1 percent of the 
     total amount available under this subsection for that year, 
     in the case of each of the 50 States, the District of 
     Columbia, and the Commonwealth of Puerto Rico; and
       ``(B) $80,000, in the case of an outlying area.
       ``(4) Direct benefit.--In using grant funds allotted under 
     paragraph (1), a State educational agency shall, through 
     grants, contracts, or cooperative agreements, undertake 
     activities that significantly and directly benefit the local 
     educational agencies in the State.
       ``(e) Continuation Awards.--
       ``(1) In general.--Notwithstanding any other provision of 
     this subpart, from funds appropriated under section 655 for 
     each fiscal year, the Secretary shall reserve the amount that 
     is necessary to make a continuation award to any State 
     educational agency (at the request of the State educational 
     agency) that received a multi-year award under this part (as 
     this part was in effect on the day before the date of 
     enactment of the Individuals with Disabilities Education 
     Improvement Act of 2004), to enable the State educational 
     agency to carry out activities in accordance with the terms 
     of the multi-year award.
       ``(2) Prohibition.--A State educational agency that 
     receives a continuation award under paragraph (1) for any 
     fiscal year may not receive any other award under this 
     subpart for that fiscal year.

     ``SEC. 652. ELIGIBILITY AND COLLABORATIVE PROCESS.

       ``(a) Eligible Applicants.--A State educational agency may 
     apply for a grant under this subpart for a grant period of 
     not less than 1 year and not more than 5 years.
       ``(b) Partners.--
       ``(1) In general.--In order to be considered for a grant 
     under this subpart, a State educational agency shall 
     establish a partnership with local educational agencies and 
     other State agencies involved in, or concerned with, the 
     education of children with disabilities, including--
       ``(A) not less than 1 institution of higher education; and
       ``(B) the State agencies responsible for administering part 
     C, early education, child care, and vocational rehabilitation 
     programs.
       ``(2) Other partners.--In order to be considered for a 
     grant under this subpart, a State educational agency shall 
     work in partnership with other persons and organizations 
     involved in, and concerned with, the education of children 
     with disabilities, which may include--
       ``(A) the Governor;
       ``(B) parents of children with disabilities ages birth 
     through 26;
       ``(C) parents of nondisabled children ages birth through 
     26;
       ``(D) individuals with disabilities;
       ``(E) parent training and information centers or community 
     parent resource centers funded under sections 671 and 672, 
     respectively;
       ``(F) community based and other nonprofit organizations 
     involved in the education and employment of individuals with 
     disabilities;
       ``(G) personnel as defined in section 651(b);
       ``(H) the State advisory panel established under part B;
       ``(I) the State interagency coordinating council 
     established under part C;
       ``(J) individuals knowledgeable about vocational education;
       ``(K) the State agency for higher education;
       ``(L) public agencies with jurisdiction in the areas of 
     health, mental health, social services, and juvenile justice;
       ``(M) other providers of professional development that work 
     with infants, toddlers, preschoolers, and children with 
     disabilities; and
       ``(N) other individuals.
       ``(3) Required partner.--If State law assigns 
     responsibility for teacher preparation and certification to 
     an individual, entity, or agency other than the State 
     educational agency, the State educational agency shall--
       ``(A) include that individual, entity, or agency as a 
     partner in the partnership under this subsection; and
       ``(B) ensure that any activities the State educational 
     agency will carry out under this subpart that are within that 
     partner's jurisdiction (which may include activities 
     described in section 654(b)) are carried out by that partner.

     ``SEC. 653. APPLICATIONS.

       ``(a) In General.--
       ``(1) Submission.--A State educational agency that desires 
     to receive a grant under this subpart shall submit to the 
     Secretary an application at such time, in such manner, and 
     including such information as the Secretary may require.
       ``(2) State plan.--The application shall include a plan 
     that identifies and addresses the State and local needs for 
     the personnel preparation and professional development of 
     personnel, as well as individuals who provide direct 
     supplementary aids and services to children with 
     disabilities, and that--
       ``(A) is designed to enable the State to meet the 
     requirements of section 612(a)(14) and section 635(a) (8) and 
     (9);
       ``(B) is based on an assessment of State and local needs 
     that identifies critical aspects and areas in need of 
     improvement related to the preparation, ongoing training, and 
     professional development of personnel who serve infants, 
     toddlers, preschoolers, and children with disabilities within 
     the State, including--
       ``(i) current and anticipated personnel vacancies and 
     shortages; and
       ``(ii) the number of preservice and inservice programs; and
       ``(C) is integrated and aligned, to the maximum extent 
     possible, with State plans and activities under the 
     Elementary and Secondary Education Act of 1965, the 
     Rehabilitation Act of 1973, and the Higher Education Act of 
     1965.
       ``(3) Requirement.--The State application shall contain an 
     assurance that the State educational agency will carry out 
     each of the strategies described in subsection (b)(4).
       ``(b) Elements of State Personnel Development Plan.--Each 
     State personnel development plan under subsection (a)(2) 
     shall--
       ``(1) describe a partnership agreement that is in effect 
     for the period of the grant, which agreement shall specify--
       ``(A) the nature and extent of the partnership described in 
     section 652(b) and the respective roles of each member of the 
     partnership, including the partner described in section 
     652(b)(3) if applicable; and
       ``(B) how the State educational agency will work with other 
     persons and organizations involved in, and concerned with, 
     the education of children with disabilities, including the 
     respective roles of each of the persons and organizations;
       ``(2) describe how the strategies and activities described 
     in paragraph (4) will be coordinated with activities 
     supported with other public resources (including part B and 
     part C funds retained for use at the State level for 
     personnel and professional development purposes) and private 
     resources;
       ``(3) describe how the State educational agency will align 
     its personnel development plan under this subpart with the 
     plan and application submitted under sections 1111 and 2112, 
     respectively, of the Elementary and Secondary Education Act 
     of 1965;
       ``(4) describe those strategies the State educational 
     agency will use to address the professional development and 
     personnel needs identified under subsection (a)(2) and how 
     such strategies will be implemented, including--
       ``(A) a description of the programs and activities to be 
     supported under this subpart that will provide personnel with 
     the knowledge and skills to meet the needs of, and improve 
     the performance and achievement of, infants, toddlers, 
     preschoolers, and children with disabilities; and
       ``(B) how such strategies will be integrated, to the 
     maximum extent possible, with other activities supported by 
     grants funded under section 662;
       ``(5) provide an assurance that the State educational 
     agency will provide technical assistance to local educational 
     agencies to improve the quality of professional development 
     available to meet the needs of personnel who serve children 
     with disabilities;
       ``(6) provide an assurance that the State educational 
     agency will provide technical assistance to entities that 
     provide services to infants and toddlers with disabilities to 
     improve the quality of professional development available to 
     meet the needs of personnel serving such children;
       ``(7) describe how the State educational agency will 
     recruit and retain highly qualified teachers and other 
     qualified personnel in geographic areas of greatest need;
       ``(8) describe the steps the State educational agency will 
     take to ensure that poor and minority children are not taught 
     at higher rates by teachers who are not highly qualified; and
       ``(9) describe how the State educational agency will 
     assess, on a regular basis, the extent to which the 
     strategies implemented under this subpart have been effective 
     in meeting the performance goals described in section 
     612(a)(15).
       ``(c) Peer Review.--
       ``(1) In general.--The Secretary shall use a panel of 
     experts who are competent, by virtue of their training, 
     expertise, or experience, to evaluate applications for grants 
     under section 651(c)(1).
       ``(2) Composition of panel.--A majority of a panel 
     described in paragraph (1) shall be composed of individuals 
     who are not employees of the Federal Government.
       ``(3) Payment of fees and expenses of certain members.--The 
     Secretary may use available funds appropriated to carry out 
     this subpart to pay the expenses and fees of panel members 
     who are not employees of the Federal Government.
       ``(d) Reporting Procedures.--Each State educational agency 
     that receives a grant under this subpart shall submit annual 
     performance reports to the Secretary. The reports shall--
       ``(1) describe the progress of the State educational agency 
     in implementing its plan;
       ``(2) analyze the effectiveness of the State educational 
     agency's activities under this subpart and of the State 
     educational agency's strategies for meeting its goals under 
     section 612(a)(15); and
       ``(3) identify changes in the strategies used by the State 
     educational agency and described in

[[Page H9926]]

     subsection (b)(4), if any, to improve the State educational 
     agency's performance.

     ``SEC. 654. USE OF FUNDS.

       ``(a) Professional Development Activities.--A State 
     educational agency that receives a grant under this subpart 
     shall use the grant funds to support activities in accordance 
     with the State's plan described in section 653, including 1 
     or more of the following:
       ``(1) Carrying out programs that provide support to both 
     special education and regular education teachers of children 
     with disabilities and principals, such as programs that--
       ``(A) provide teacher mentoring, team teaching, reduced 
     class schedules and case loads, and intensive professional 
     development;
       ``(B) use standards or assessments for guiding beginning 
     teachers that are consistent with challenging State student 
     academic achievement and functional standards and with the 
     requirements for professional development, as defined in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965; and
       ``(C) encourage collaborative and consultative models of 
     providing early intervention, special education, and related 
     services.
       ``(2) Encouraging and supporting the training of special 
     education and regular education teachers and administrators 
     to effectively use and integrate technology--
       ``(A) into curricula and instruction, including training to 
     improve the ability to collect, manage, and analyze data to 
     improve teaching, decisionmaking, school improvement efforts, 
     and accountability;
       ``(B) to enhance learning by children with disabilities; 
     and
       ``(C) to effectively communicate with parents.
       ``(3) Providing professional development activities that--
       ``(A) improve the knowledge of special education and 
     regular education teachers concerning--
       ``(i) the academic and developmental or functional needs of 
     students with disabilities; or
       ``(ii) effective instructional strategies, methods, and 
     skills, and the use of State academic content standards and 
     student academic achievement and functional standards, and 
     State assessments, to improve teaching practices and student 
     academic achievement;
       ``(B) improve the knowledge of special education and 
     regular education teachers and principals and, in appropriate 
     cases, paraprofessionals, concerning effective instructional 
     practices, and that--
       ``(i) provide training in how to teach and address the 
     needs of children with different learning styles and children 
     who are limited English proficient;
       ``(ii) involve collaborative groups of teachers, 
     administrators, and, in appropriate cases, related services 
     personnel;
       ``(iii) provide training in methods of--

       ``(I) positive behavioral interventions and supports to 
     improve student behavior in the classroom;
       ``(II) scientifically based reading instruction, including 
     early literacy instruction;
       ``(III) early and appropriate interventions to identify and 
     help children with disabilities;
       ``(IV) effective instruction for children with low 
     incidence disabilities;
       ``(V) successful transitioning to postsecondary 
     opportunities; and

       ``(VI) using classroom-based techniques to assist children 
     prior to referral for special education;

       ``(iv) provide training to enable personnel to work with 
     and involve parents in their child's education, including 
     parents of low income and limited English proficient children 
     with disabilities;
       ``(v) provide training for special education personnel and 
     regular education personnel in planning, developing, and 
     implementing effective and appropriate IEPs; and
       ``(vi) provide training to meet the needs of students with 
     significant health, mobility, or behavioral needs prior to 
     serving such students;
       ``(C) train administrators, principals, and other relevant 
     school personnel in conducting effective IEP meetings; and
       ``(D) train early intervention, preschool, and related 
     services providers, and other relevant school personnel, in 
     conducting effective individualized family service plan 
     (IFSP) meetings.
       ``(4) Developing and implementing initiatives to promote 
     the recruitment and retention of highly qualified special 
     education teachers, particularly initiatives that have been 
     proven effective in recruiting and retaining highly qualified 
     teachers, including programs that provide--
       ``(A) teacher mentoring from exemplary special education 
     teachers, principals, or superintendents;
       ``(B) induction and support for special education teachers 
     during their first 3 years of employment as teachers; or
       ``(C) incentives, including financial incentives, to retain 
     special education teachers who have a record of success in 
     helping students with disabilities.
       ``(5) Carrying out programs and activities that are 
     designed to improve the quality of personnel who serve 
     children with disabilities, such as--
       ``(A) innovative professional development programs (which 
     may be provided through partnerships that include 
     institutions of higher education), including programs that 
     train teachers and principals to integrate technology into 
     curricula and instruction to improve teaching, learning, and 
     technology literacy, which professional development shall be 
     consistent with the definition of professional development in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965; and
       ``(B) the development and use of proven, cost effective 
     strategies for the implementation of professional development 
     activities, such as through the use of technology and 
     distance learning.
       ``(6) Carrying out programs and activities that are 
     designed to improve the quality of early intervention 
     personnel, including paraprofessionals and primary referral 
     sources, such as--
       ``(A) professional development programs to improve the 
     delivery of early intervention services;
       ``(B) initiatives to promote the recruitment and retention 
     of early intervention personnel; and
       ``(C) interagency activities to ensure that early 
     intervention personnel are adequately prepared and trained.
       ``(b) Other Activities.--A State educational agency that 
     receives a grant under this subpart shall use the grant funds 
     to support activities in accordance with the State's plan 
     described in section 653, including 1 or more of the 
     following:
       ``(1) Reforming special education and regular education 
     teacher certification (including recertification) or 
     licensing requirements to ensure that--
       ``(A) special education and regular education teachers 
     have--
       ``(i) the training and information necessary to address the 
     full range of needs of children with disabilities across 
     disability categories; and
       ``(ii) the necessary subject matter knowledge and teaching 
     skills in the academic subjects that the teachers teach;
       ``(B) special education and regular education teacher 
     certification (including recertification) or licensing 
     requirements are aligned with challenging State academic 
     content standards; and
       ``(C) special education and regular education teachers have 
     the subject matter knowledge and teaching skills, including 
     technology literacy, necessary to help students with 
     disabilities meet challenging State student academic 
     achievement and functional standards.
       ``(2) Programs that establish, expand, or improve 
     alternative routes for State certification of special 
     education teachers for highly qualified individuals with a 
     baccalaureate or master's degree, including mid-career 
     professionals from other occupations, paraprofessionals, and 
     recent college or university graduates with records of 
     academic distinction who demonstrate the potential to become 
     highly effective special education teachers.
       ``(3) Teacher advancement initiatives for special education 
     teachers that promote professional growth and emphasize 
     multiple career paths (such as paths to becoming a career 
     teacher, mentor teacher, or exemplary teacher) and pay 
     differentiation.
       ``(4) Developing and implementing mechanisms to assist 
     local educational agencies and schools in effectively 
     recruiting and retaining highly qualified special education 
     teachers.
       ``(5) Reforming tenure systems, implementing teacher 
     testing for subject matter knowledge, and implementing 
     teacher testing for State certification or licensing, 
     consistent with title II of the Higher Education Act of 1965.
       ``(6) Funding projects to promote reciprocity of teacher 
     certification or licensing between or among States for 
     special education teachers, except that no reciprocity 
     agreement developed under this paragraph or developed using 
     funds provided under this subpart may lead to the weakening 
     of any State teaching certification or licensing requirement.
       ``(7) Assisting local educational agencies to serve 
     children with disabilities through the development and use of 
     proven, innovative strategies to deliver intensive 
     professional development programs that are both cost 
     effective and easily accessible, such as strategies that 
     involve delivery through the use of technology, peer 
     networks, and distance learning.
       ``(8) Developing, or assisting local educational agencies 
     in developing, merit based performance systems, and 
     strategies that provide differential and bonus pay for 
     special education teachers.
       ``(9) Supporting activities that ensure that teachers are 
     able to use challenging State academic content standards and 
     student academic achievement and functional standards, and 
     State assessments for all children with disabilities, to 
     improve instructional practices and improve the academic 
     achievement of children with disabilities.
       ``(10) When applicable, coordinating with, and expanding 
     centers established under, section 2113(c)(18) of the 
     Elementary and Secondary Education Act of 1965 to benefit 
     special education teachers.
       ``(c) Contracts and Subgrants.--A State educational agency 
     that receives a grant under this subpart--
       ``(1) shall award contracts or subgrants to local 
     educational agencies, institutions of higher education, 
     parent training and information centers, or community parent 
     resource centers, as appropriate, to carry out its State plan 
     under this subpart; and
       ``(2) may award contracts and subgrants to other public and 
     private entities, including the lead agency under part C, to 
     carry out the State plan.
       ``(d) Use of Funds for Professional Development.--A State 
     educational agency that receives a grant under this subpart 
     shall use--
       ``(1) not less than 90 percent of the funds the State 
     educational agency receives under the grant for any fiscal 
     year for activities under subsection (a); and
       ``(2) not more than 10 percent of the funds the State 
     educational agency receives under the grant for any fiscal 
     year for activities under subsection (b).
       ``(e) Grants to Outlying Areas.--Public Law 95-134, 
     permitting the consolidation of grants to the outlying areas, 
     shall not apply to funds received under this subpart.

     ``SEC. 655. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subpart such sums as may be necessary for each of the fiscal 
     years 2005 through 2010.

[[Page H9927]]

     ``SUBPART 2--PERSONNEL PREPARATION, TECHNICAL ASSISTANCE, 
                   MODEL DEMONSTRATION PROJECTS, AND DISSEMINATION 
                   OF INFORMATION

     ``SEC. 661. PURPOSE; DEFINITION OF ELIGIBLE ENTITY.

       ``(a) Purpose.--The purpose of this subpart is--
       ``(1) to provide Federal funding for personnel preparation, 
     technical assistance, model demonstration projects, 
     information dissemination, and studies and evaluations, in 
     order to improve early intervention, educational, and 
     transitional results for children with disabilities; and
       ``(2) to assist State educational agencies and local 
     educational agencies in improving their education systems for 
     children with disabilities.
       ``(b) Definition of Eligible Entity.--
       ``(1) In general.--In this subpart, the term `eligible 
     entity' means--
       ``(A) a State educational agency;
       ``(B) a local educational agency;
       ``(C) a public charter school that is a local educational 
     agency under State law;
       ``(D) an institution of higher education;
       ``(E) a public agency not described in subparagraphs (A) 
     through (D);
       ``(F) a private nonprofit organization;
       ``(G) an outlying area;
       ``(H) an Indian tribe or a tribal organization (as defined 
     under section 4 of the Indian Self-Determination and 
     Education Assistance Act); or
       ``(I) a for-profit organization, if the Secretary finds it 
     appropriate in light of the purposes of a particular 
     competition for a grant, contract, or cooperative agreement 
     under this subpart.
       ``(2) Special rule.--The Secretary may limit which eligible 
     entities described in paragraph (1) are eligible for a grant, 
     contract, or cooperative agreement under this subpart to 1 or 
     more of the categories of eligible entities described in 
     paragraph (1).

     ``SEC. 662. PERSONNEL DEVELOPMENT TO IMPROVE SERVICES AND 
                   RESULTS FOR CHILDREN WITH DISABILITIES.

       ``(a) In General.--The Secretary, on a competitive basis, 
     shall award grants to, or enter into contracts or cooperative 
     agreements with, eligible entities to carry out 1 or more of 
     the following objectives:
       ``(1) To help address the needs identified in the State 
     plan described in section 653(a)(2) for highly qualified 
     personnel, as defined in section 651(b), to work with infants 
     or toddlers with disabilities, or children with disabilities, 
     consistent with the qualifications described in section 
     612(a)(14).
       ``(2) To ensure that those personnel have the necessary 
     skills and knowledge, derived from practices that have been 
     determined, through scientifically based research, to be 
     successful in serving those children.
       ``(3) To encourage increased focus on academics and core 
     content areas in special education personnel preparation 
     programs.
       ``(4) To ensure that regular education teachers have the 
     necessary skills and knowledge to provide instruction to 
     students with disabilities in the regular education 
     classroom.
       ``(5) To ensure that all special education teachers are 
     highly qualified.
       ``(6) To ensure that preservice and in-service personnel 
     preparation programs include training in--
       ``(A) the use of new technologies;
       ``(B) the area of early intervention, educational, and 
     transition services;
       ``(C) effectively involving parents; and
       ``(D) positive behavioral supports.
       ``(7) To provide high-quality professional development for 
     principals, superintendents, and other administrators, 
     including training in--
       ``(A) instructional leadership;
       ``(B) behavioral supports in the school and classroom;
       ``(C) paperwork reduction;
       ``(D) promoting improved collaboration between special 
     education and general education teachers;
       ``(E) assessment and accountability;
       ``(F) ensuring effective learning environments; and
       ``(G) fostering positive relationships with parents.
       ``(b) Personnel Development; Enhanced Support for Beginning 
     Special Educators.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support activities--
       ``(A) for personnel development, including activities for 
     the preparation of personnel who will serve children with 
     high incidence and low incidence disabilities, to prepare 
     special education and general education teachers, principals, 
     administrators, and related services personnel (and school 
     board members, when appropriate) to meet the diverse and 
     individualized instructional needs of children with 
     disabilities and improve early intervention, educational, and 
     transitional services and results for children with 
     disabilities, consistent with the objectives described in 
     subsection (a); and
       ``(B) for enhanced support for beginning special educators, 
     consistent with the objectives described in subsection (a).
       ``(2) Personnel development.--In carrying out paragraph 
     (1)(A), the Secretary shall support not less than 1 of the 
     following activities:
       ``(A) Assisting effective existing, improving existing, or 
     developing new, collaborative personnel preparation 
     activities undertaken by institutions of higher education, 
     local educational agencies, and other local entities that 
     incorporate best practices and scientifically based research, 
     where applicable, in providing special education and general 
     education teachers, principals, administrators, and related 
     services personnel with the knowledge and skills to 
     effectively support students with disabilities, including--
       ``(i) working collaboratively in regular classroom 
     settings;
       ``(ii) using appropriate supports, accommodations, and 
     curriculum modifications;
       ``(iii) implementing effective teaching strategies, 
     classroom-based techniques, and interventions to ensure 
     appropriate identification of students who may be eligible 
     for special education services, and to prevent the 
     misidentification, inappropriate overidentification, or 
     underidentification of children as having a disability, 
     especially minority and limited English proficient children;
       ``(iv) effectively working with and involving parents in 
     the education of their children;
       ``(v) utilizing strategies, including positive behavioral 
     interventions, for addressing the conduct of children with 
     disabilities that impedes their learning and that of others 
     in the classroom;
       ``(vi) effectively constructing IEPs, participating in IEP 
     meetings, and implementing IEPs;
       ``(vii) preparing children with disabilities to participate 
     in statewide assessments (with or without accommodations) and 
     alternate assessments, as appropriate, and to ensure that all 
     children with disabilities are a part of all accountability 
     systems under the Elementary and Secondary Education Act of 
     1965; and
       ``(viii) working in high need elementary schools and 
     secondary schools, including urban schools, rural schools, 
     and schools operated by an entity described in section 
     7113(d)(1)(A)(ii) of the Elementary and Secondary Education 
     Act of 1965, and schools that serve high numbers or 
     percentages of limited English proficient children.
       ``(B) Developing, evaluating, and disseminating innovative 
     models for the recruitment, induction, retention, and 
     assessment of new, highly qualified teachers to reduce 
     teacher shortages, especially from groups that are 
     underrepresented in the teaching profession, including 
     individuals with disabilities.
       ``(C) Providing continuous personnel preparation, training, 
     and professional development designed to provide support and 
     ensure retention of special education and general education 
     teachers and personnel who teach and provide related services 
     to children with disabilities.
       ``(D) Developing and improving programs for 
     paraprofessionals to become special education teachers, 
     related services personnel, and early intervention personnel, 
     including interdisciplinary training to enable the 
     paraprofessionals to improve early intervention, educational, 
     and transitional results for children with disabilities.
       ``(E) In the case of principals and superintendents, 
     providing activities to promote instructional leadership and 
     improved collaboration between general educators, special 
     education teachers, and related services personnel.
       ``(F) Supporting institutions of higher education with 
     minority enrollments of not less than 25 percent for the 
     purpose of preparing personnel to work with children with 
     disabilities.
       ``(G) Developing and improving programs to train special 
     education teachers to develop an expertise in autism spectrum 
     disorders.
       ``(H) Providing continuous personnel preparation, training, 
     and professional development designed to provide support and 
     improve the qualifications of personnel who provide related 
     services to children with disabilities, including to enable 
     such personnel to obtain advanced degrees.
       ``(3) Enhanced support for beginning special educators.--In 
     carrying out paragraph (1)(B), the Secretary shall support 
     not less than 1 of the following activities:
       ``(A) Enhancing and restructuring existing programs or 
     developing preservice teacher education programs to prepare 
     special education teachers, at colleges or departments of 
     education within institutions of higher education, by 
     incorporating an extended (such as an additional 5th year) 
     clinical learning opportunity, field experience, or 
     supervised practicum into such programs.
       ``(B) Creating or supporting teacher-faculty partnerships 
     (such as professional development schools) that--
       ``(i) consist of not less than--

       ``(I) 1 or more institutions of higher education with 
     special education personnel preparation programs;
       ``(II) 1 or more local educational agencies that serve high 
     numbers or percentages of low-income students; or
       ``(III) 1 or more elementary schools or secondary schools, 
     particularly schools that have failed to make adequate yearly 
     progress on the basis, in whole and in part, of the 
     assessment results of the disaggregated subgroup of students 
     with disabilities;

       ``(ii) may include other entities eligible for assistance 
     under this part; and
       ``(iii) provide--

       ``(I) high-quality mentoring and induction opportunities 
     with ongoing support for beginning special education 
     teachers; or
       ``(II) inservice professional development to beginning and 
     veteran special education teachers through the ongoing 
     exchange of information and instructional strategies with 
     faculty.

       ``(c) Low Incidence Disabilities; Authorized Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support activities, consistent with the 
     objectives described in subsection (a), that benefit children 
     with low incidence disabilities.
       ``(2) Authorized activities.--Activities that may be 
     carried out under this subsection include activities such as 
     the following:
       ``(A) Preparing persons who--
       ``(i) have prior training in educational and other related 
     service fields; and
       ``(ii) are studying to obtain degrees, certificates, or 
     licensure that will enable the persons to assist children 
     with low incidence disabilities to achieve the objectives set 
     out in their individualized education programs described in 
     section 614(d), or to assist infants and toddlers with low 
     incidence disabilities to achieve the outcomes

[[Page H9928]]

     described in their individualized family service plans 
     described in section 636.
       ``(B) Providing personnel from various disciplines with 
     interdisciplinary training that will contribute to 
     improvement in early intervention, educational, and 
     transitional results for children with low incidence 
     disabilities.
       ``(C) Preparing personnel in the innovative uses and 
     application of technology, including universally designed 
     technologies, assistive technology devices, and assistive 
     technology services--
       ``(i) to enhance learning by children with low incidence 
     disabilities through early intervention, educational, and 
     transitional services; and
       ``(ii) to improve communication with parents.
       ``(D) Preparing personnel who provide services to visually 
     impaired or blind children to teach and use Braille in the 
     provision of services to such children.
       ``(E) Preparing personnel to be qualified educational 
     interpreters, to assist children with low incidence 
     disabilities, particularly deaf and hard of hearing children 
     in school and school related activities, and deaf and hard of 
     hearing infants and toddlers and preschool children in early 
     intervention and preschool programs.
       ``(F) Preparing personnel who provide services to children 
     with significant cognitive disabilities and children with 
     multiple disabilities.
       ``(G) Preparing personnel who provide services to children 
     with low incidence disabilities and limited English 
     proficient children.
       ``(3) Definition.--In this section, the term `low incidence 
     disability' means--
       ``(A) a visual or hearing impairment, or simultaneous 
     visual and hearing impairments;
       ``(B) a significant cognitive impairment; or
       ``(C) any impairment for which a small number of personnel 
     with highly specialized skills and knowledge are needed in 
     order for children with that impairment to receive early 
     intervention services or a free appropriate public education.
       ``(4) Selection of recipients.--In selecting eligible 
     entities for assistance under this subsection, the Secretary 
     may give preference to eligible entities submitting 
     applications that include 1 or more of the following:
       ``(A) A proposal to prepare personnel in more than 1 low 
     incidence disability, such as deafness and blindness.
       ``(B) A demonstration of an effective collaboration between 
     an eligible entity and a local educational agency that 
     promotes recruitment and subsequent retention of highly 
     qualified personnel to serve children with low incidence 
     disabilities.
       ``(5) Preparation in use of braille.--The Secretary shall 
     ensure that all recipients of awards under this subsection 
     who will use that assistance to prepare personnel to provide 
     services to visually impaired or blind children that can 
     appropriately be provided in Braille, will prepare those 
     individuals to provide those services in Braille.
       ``(d) Leadership Preparation; Authorized Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support leadership preparation activities 
     that are consistent with the objectives described in 
     subsection (a).
       ``(2) Authorized activities.--Activities that may be 
     carried out under this subsection include activities such as 
     the following:
       ``(A) Preparing personnel at the graduate, doctoral, and 
     postdoctoral levels of training to administer, enhance, or 
     provide services to improve results for children with 
     disabilities.
       ``(B) Providing interdisciplinary training for various 
     types of leadership personnel, including teacher preparation 
     faculty, related services faculty, administrators, 
     researchers, supervisors, principals, and other persons whose 
     work affects early intervention, educational, and 
     transitional services for children with disabilities, 
     including children with disabilities who are limited English 
     proficient children.
       ``(e) Applications.--
       ``(1) In general.--An eligible entity that wishes to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under this section shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require.
       ``(2) Identified state needs.--
       ``(A) Requirement to address identified needs.--An 
     application for assistance under subsection (b), (c), or (d) 
     shall include information demonstrating to the satisfaction 
     of the Secretary that the activities described in the 
     application will address needs identified by the State or 
     States the eligible entity proposes to serve.
       ``(B) Cooperation with state educational agencies.--An 
     eligible entity that is not a local educational agency or a 
     State educational agency shall include in the eligible 
     entity's application information demonstrating to the 
     satisfaction of the Secretary that the eligible entity and 1 
     or more State educational agencies or local educational 
     agencies will cooperate in carrying out and monitoring the 
     proposed project.
       ``(3) Acceptance by states of personnel preparation 
     requirements.--The Secretary may require eligible entities to 
     provide in the eligible entities' applications assurances 
     from 1 or more States that such States intend to accept 
     successful completion of the proposed personnel preparation 
     program as meeting State personnel standards or other 
     requirements in State law or regulation for serving children 
     with disabilities or serving infants and toddlers with 
     disabilities.
       ``(f) Selection of Recipients.--
       ``(1) Impact of project.--In selecting eligible entities 
     for assistance under this section, the Secretary shall 
     consider the impact of the proposed project described in the 
     application in meeting the need for personnel identified by 
     the States.
       ``(2) Requirement for eligible entities to meet state and 
     professional qualifications.--The Secretary shall make grants 
     and enter into contracts and cooperative agreements under 
     this section only to eligible entities that meet State and 
     professionally recognized qualifications for the preparation 
     of special education and related services personnel, if the 
     purpose of the project is to assist personnel in obtaining 
     degrees.
       ``(3) Preferences.--In selecting eligible entities for 
     assistance under this section, the Secretary may give 
     preference to eligible entities that are institutions of 
     higher education that are--
       ``(A) educating regular education personnel to meet the 
     needs of children with disabilities in integrated settings;
       ``(B) educating special education personnel to work in 
     collaboration with regular educators in integrated settings; 
     and
       ``(C) successfully recruiting and preparing individuals 
     with disabilities and individuals from groups that are 
     underrepresented in the profession for which the institution 
     of higher education is preparing individuals.
       ``(g) Scholarships.--The Secretary may include funds for 
     scholarships, with necessary stipends and allowances, in 
     awards under subsections (b), (c), and (d).
       ``(h) Service Obligation.--
       ``(1) In general.--Each application for assistance under 
     subsections (b), (c), and (d) shall include an assurance that 
     the eligible entity will ensure that individuals who receive 
     a scholarship under the proposed project agree to 
     subsequently provide special education and related services 
     to children with disabilities, or in the case of leadership 
     personnel to subsequently work in the appropriate field, for 
     a period of 2 years for every year for which the scholarship 
     was received or repay all or part of the amount of the 
     scholarship, in accordance with regulations issued by the 
     Secretary.
       ``(2) Special rule.--Notwithstanding paragraph (1), the 
     Secretary may reduce or waive the service obligation 
     requirement under paragraph (1) if the Secretary determines 
     that the service obligation is acting as a deterrent to the 
     recruitment of students into special education or a related 
     field.
       ``(3) Secretary's responsibility.--The Secretary--
       ``(A) shall ensure that individuals described in paragraph 
     (1) comply with the requirements of that paragraph; and
       ``(B) may use not more than 0.5 percent of the funds 
     appropriated under subsection (i) for each fiscal year, to 
     carry out subparagraph (A), in addition to any other funds 
     that are available for that purpose.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for each of the fiscal years 2005 
     through 2010.

     ``SEC. 663. TECHNICAL ASSISTANCE, DEMONSTRATION PROJECTS, 
                   DISSEMINATION OF INFORMATION, AND 
                   IMPLEMENTATION OF SCIENTIFICALLY BASED 
                   RESEARCH.

       ``(a) In General.--The Secretary shall make competitive 
     grants to, or enter into contracts or cooperative agreements 
     with, eligible entities to provide technical assistance, 
     support model demonstration projects, disseminate useful 
     information, and implement activities that are supported by 
     scientifically based research.
       ``(b) Required Activities.--Funds received under this 
     section shall be used to support activities to improve 
     services provided under this title, including the practices 
     of professionals and others involved in providing such 
     services to children with disabilities, that promote academic 
     achievement and improve results for children with 
     disabilities through--
       ``(1) implementing effective strategies for addressing 
     inappropriate behavior of students with disabilities in 
     schools, including strategies to prevent children with 
     emotional and behavioral problems from developing emotional 
     disturbances that require the provision of special education 
     and related services;
       ``(2) improving the alignment, compatibility, and 
     development of valid and reliable assessments and alternate 
     assessments for assessing adequate yearly progress, as 
     described under section 1111(b)(2)(B) of the Elementary and 
     Secondary Education Act of 1965;
       ``(3) providing training for both regular education 
     teachers and special education teachers to address the needs 
     of students with different learning styles;
       ``(4) disseminating information about innovative, 
     effective, and efficient curricula designs, instructional 
     approaches, and strategies, and identifying positive academic 
     and social learning opportunities, that--
       ``(A) provide effective transitions between educational 
     settings or from school to post school settings; and
       ``(B) improve educational and transitional results at all 
     levels of the educational system in which the activities are 
     carried out and, in particular, that improve the progress of 
     children with disabilities, as measured by assessments within 
     the general education curriculum involved; and
       ``(5) applying scientifically based findings to facilitate 
     systemic changes, related to the provision of services to 
     children with disabilities, in policy, procedure, practice, 
     and the training and use of personnel.
       ``(c) Authorized Activities.--Activities that may be 
     carried out under this section include activities to improve 
     services provided under this title, including the practices 
     of professionals and others involved in providing such 
     services to children with disabilities, that promote academic 
     achievement and improve results for children with 
     disabilities through--
       ``(1) applying and testing research findings in typical 
     settings where children with disabilities

[[Page H9929]]

     receive services to determine the usefulness, effectiveness, 
     and general applicability of such research findings in such 
     areas as improving instructional methods, curricula, and 
     tools, such as textbooks and media;
       ``(2) supporting and promoting the coordination of early 
     intervention and educational services for children with 
     disabilities with services provided by health, 
     rehabilitation, and social service agencies;
       ``(3) promoting improved alignment and compatibility of 
     general and special education reforms concerned with 
     curricular and instructional reform, and evaluation of such 
     reforms;
       ``(4) enabling professionals, parents of children with 
     disabilities, and other persons to learn about, and 
     implement, the findings of scientifically based research, and 
     successful practices developed in model demonstration 
     projects, relating to the provision of services to children 
     with disabilities;
       ``(5) conducting outreach, and disseminating information, 
     relating to successful approaches to overcoming systemic 
     barriers to the effective and efficient delivery of early 
     intervention, educational, and transitional services to 
     personnel who provide services to children with disabilities;
       ``(6) assisting States and local educational agencies with 
     the process of planning systemic changes that will promote 
     improved early intervention, educational, and transitional 
     results for children with disabilities;
       ``(7) promoting change through a multistate or regional 
     framework that benefits States, local educational agencies, 
     and other participants in partnerships that are in the 
     process of achieving systemic-change outcomes;
       ``(8) focusing on the needs and issues that are specific to 
     a population of children with disabilities, such as providing 
     single-State and multi-State technical assistance and in-
     service training--
       ``(A) to schools and agencies serving deaf-blind children 
     and their families;
       ``(B) to programs and agencies serving other groups of 
     children with low incidence disabilities and their families;
       ``(C) addressing the postsecondary education needs of 
     individuals who are deaf or hard-of-hearing; and
       ``(D) to schools and personnel providing special education 
     and related services for children with autism spectrum 
     disorders;
       ``(9) demonstrating models of personnel preparation to 
     ensure appropriate placements and services for all students 
     and to reduce disproportionality in eligibility, placement, 
     and disciplinary actions for minority and limited English 
     proficient children; and
       ``(10) disseminating information on how to reduce 
     inappropriate racial and ethnic disproportionalities 
     identified under section 618.
       ``(d) Balance Among Activities and Age Ranges.--In carrying 
     out this section, the Secretary shall ensure that there is an 
     appropriate balance across all age ranges of children with 
     disabilities.
       ``(e) Linking States to Information Sources.--In carrying 
     out this section, the Secretary shall support projects that 
     link States to technical assistance resources, including 
     special education and general education resources, and shall 
     make research and related products available through 
     libraries, electronic networks, parent training projects, and 
     other information sources, including through the activities 
     of the National Center for Education Evaluation and Regional 
     Assistance established under part D of the Education Sciences 
     Reform Act of 2002.
       ``(f) Applications.--
       ``(1) In general.--An eligible entity that wishes to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under this section shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require.
       ``(2) Standards.--To the maximum extent feasible, each 
     eligible entity shall demonstrate that the project described 
     in the eligible entity's application is supported by 
     scientifically valid research that has been carried out in 
     accordance with the standards for the conduct and evaluation 
     of all relevant research and development established by the 
     National Center for Education Research.
       ``(3) Priority.--As appropriate, the Secretary shall give 
     priority to applications that propose to serve teachers and 
     school personnel directly in the school environment.

     ``SEC. 664. STUDIES AND EVALUATIONS.

       ``(a) Studies and Evaluations.--
       ``(1) Delegation.--The Secretary shall delegate to the 
     Director of the Institute of Education Sciences 
     responsibility to carry out this section, other than 
     subsections (d) and (f).
       ``(2) Assessment.--The Secretary shall, directly or through 
     grants, contracts, or cooperative agreements awarded to 
     eligible entities on a competitive basis, assess the progress 
     in the implementation of this title, including the 
     effectiveness of State and local efforts to provide--
       ``(A) a free appropriate public education to children with 
     disabilities; and
       ``(B) early intervention services to infants and toddlers 
     with disabilities, and infants and toddlers who would be at 
     risk of having substantial developmental delays if early 
     intervention services were not provided to the infants and 
     toddlers.
       ``(b) Assessment of National Activities.--
       ``(1) In general.--The Secretary shall carry out a national 
     assessment of activities carried out with Federal funds under 
     this title in order--
       ``(A) to determine the effectiveness of this title in 
     achieving the purposes of this title;
       ``(B) to provide timely information to the President, 
     Congress, the States, local educational agencies, and the 
     public on how to implement this title more effectively; and
       ``(C) to provide the President and Congress with 
     information that will be useful in developing legislation to 
     achieve the purposes of this title more effectively.
       ``(2) Scope of assessment.--The national assessment shall 
     assess activities supported under this title, including--
       ``(A) the implementation of programs assisted under this 
     title and the impact of such programs on addressing the 
     developmental needs of, and improving the academic 
     achievement of, children with disabilities to enable the 
     children to reach challenging developmental goals and 
     challenging State academic content standards based on State 
     academic assessments;
       ``(B) the types of programs and services that have 
     demonstrated the greatest likelihood of helping students 
     reach the challenging State academic content standards and 
     developmental goals;
       ``(C) the implementation of the professional development 
     activities assisted under this title and the impact on 
     instruction, student academic achievement, and teacher 
     qualifications to enhance the ability of special education 
     teachers and regular education teachers to improve results 
     for children with disabilities; and
       ``(D) the effectiveness of schools, local educational 
     agencies, States, other recipients of assistance under this 
     title, and the Secretary in achieving the purposes of this 
     title by--
       ``(i) improving the academic achievement of children with 
     disabilities and their performance on regular statewide 
     assessments as compared to nondisabled children, and the 
     performance of children with disabilities on alternate 
     assessments;
       ``(ii) improving the participation of children with 
     disabilities in the general education curriculum;
       ``(iii) improving the transitions of children with 
     disabilities at natural transition points;
       ``(iv) placing and serving children with disabilities, 
     including minority children, in the least restrictive 
     environment appropriate;
       ``(v) preventing children with disabilities, especially 
     children with emotional disturbances and specific learning 
     disabilities, from dropping out of school;
       ``(vi) addressing the reading and literacy needs of 
     children with disabilities;
       ``(vii) reducing the inappropriate overidentification of 
     children, especially minority and limited English proficient 
     children, as having a disability;
       ``(viii) improving the participation of parents of children 
     with disabilities in the education of their children; and
       ``(ix) resolving disagreements between education personnel 
     and parents through alternate dispute resolution activities, 
     including mediation.
       ``(3) Interim and final reports.--The Secretary shall 
     submit to the President and Congress--
       ``(A) an interim report that summarizes the preliminary 
     findings of the assessment not later than 3 years after the 
     date of enactment of the Individuals with Disabilities 
     Education Improvement Act of 2004; and
       ``(B) a final report of the findings of the assessment not 
     later than 5 years after the date of enactment of such Act.
       ``(c) Study on Ensuring Accountability for Students Who Are 
     Held to Alternative Achievement Standards.--The Secretary 
     shall carry out a national study or studies to examine--
       ``(1) the criteria that States use to determine--
       ``(A) eligibility for alternate assessments; and
       ``(B) the number and type of children who take those 
     assessments and are held accountable to alternative 
     achievement standards;
       ``(2) the validity and reliability of alternate assessment 
     instruments and procedures;
       ``(3) the alignment of alternate assessments and 
     alternative achievement standards to State academic content 
     standards in reading, mathematics, and science; and
       ``(4) the use and effectiveness of alternate assessments in 
     appropriately measuring student progress and outcomes 
     specific to individualized instructional need.
       ``(d) Annual Report.--The Secretary shall provide an annual 
     report to Congress that--
       ``(1) summarizes the research conducted under part E of the 
     Education Sciences Reform Act of 2002;
       ``(2) analyzes and summarizes the data reported by the 
     States and the Secretary of the Interior under section 618;
       ``(3) summarizes the studies and evaluations conducted 
     under this section and the timeline for their completion;
       ``(4) describes the extent and progress of the assessment 
     of national activities; and
       ``(5) describes the findings and determinations resulting 
     from reviews of State implementation of this title.
       ``(e) Authorized Activities.--In carrying out this section, 
     the Secretary may support objective studies, evaluations, and 
     assessments, including studies that--
       ``(1) analyze measurable impact, outcomes, and results 
     achieved by State educational agencies and local educational 
     agencies through their activities to reform policies, 
     procedures, and practices designed to improve educational and 
     transitional services and results for children with 
     disabilities;
       ``(2) analyze State and local needs for professional 
     development, parent training, and other appropriate 
     activities that can reduce the need for disciplinary actions 
     involving children with disabilities;
       ``(3) assess educational and transitional services and 
     results for children with disabilities from minority 
     backgrounds, including--
       ``(A) data on--
       ``(i) the number of minority children who are referred for 
     special education evaluation;
       ``(ii) the number of minority children who are receiving 
     special education and related services

[[Page H9930]]

     and their educational or other service placement;
       ``(iii) the number of minority children who graduated from 
     secondary programs with a regular diploma in the standard 
     number of years; and
       ``(iv) the number of minority children who drop out of the 
     educational system; and
       ``(B) the performance of children with disabilities from 
     minority backgrounds on State assessments and other 
     performance indicators established for all students;
       ``(4) measure educational and transitional services and 
     results for children with disabilities served under this 
     title, including longitudinal studies that--
       ``(A) examine educational and transitional services and 
     results for children with disabilities who are 3 through 17 
     years of age and are receiving special education and related 
     services under this title, using a national, representative 
     sample of distinct age cohorts and disability categories; and
       ``(B) examine educational results, transition services, 
     postsecondary placement, and employment status for 
     individuals with disabilities, 18 through 21 years of age, 
     who are receiving or have received special education and 
     related services under this title; and
       ``(5) identify and report on the placement of children with 
     disabilities by disability category.
       ``(f) Study.--The Secretary shall study, and report to 
     Congress regarding, the extent to which States adopt policies 
     described in section 635(c)(1) and on the effects of those 
     policies.

     ``SEC. 665. INTERIM ALTERNATIVE EDUCATIONAL SETTINGS, 
                   BEHAVIORAL SUPPORTS, AND SYSTEMIC SCHOOL 
                   INTERVENTIONS.

       ``(a) Program Authorized.--The Secretary may award grants, 
     and enter into contracts and cooperative agreements, to 
     support safe learning environments that support academic 
     achievement for all students by--
       ``(1) improving the quality of interim alternative 
     educational settings; and
       ``(2) providing increased behavioral supports and research-
     based, systemic interventions in schools.
       ``(b) Authorized Activities.--In carrying out this section, 
     the Secretary may support activities to--
       ``(1) establish, expand, or increase the scope of 
     behavioral supports and systemic interventions by providing 
     for effective, research-based practices, including--
       ``(A) training for school staff on early identification, 
     prereferral, and referral procedures;
       ``(B) training for administrators, teachers, related 
     services personnel, behavioral specialists, and other school 
     staff in positive behavioral interventions and supports, 
     behavioral intervention planning, and classroom and student 
     management techniques;
       ``(C) joint training for administrators, parents, teachers, 
     related services personnel, behavioral specialists, and other 
     school staff on effective strategies for positive behavioral 
     interventions and behavior management strategies that focus 
     on the prevention of behavior problems;
       ``(D) developing or implementing specific curricula, 
     programs, or interventions aimed at addressing behavioral 
     problems;
       ``(E) stronger linkages between school-based services and 
     community-based resources, such as community mental health 
     and primary care providers; or
       ``(F) using behavioral specialists, related services 
     personnel, and other staff necessary to implement behavioral 
     supports; or
       ``(2) improve interim alternative educational settings by--
       ``(A) improving the training of administrators, teachers, 
     related services personnel, behavioral specialists, and other 
     school staff (including ongoing mentoring of new teachers) in 
     behavioral supports and interventions;
       ``(B) attracting and retaining a high quality, diverse 
     staff;
       ``(C) providing for referral to counseling services;
       ``(D) utilizing research-based interventions, curriculum, 
     and practices;
       ``(E) allowing students to use instructional technology 
     that provides individualized instruction;
       ``(F) ensuring that the services are fully consistent with 
     the goals of the individual student's IEP;
       ``(G) promoting effective case management and collaboration 
     among parents, teachers, physicians, related services 
     personnel, behavioral specialists, principals, 
     administrators, and other school staff;
       ``(H) promoting interagency coordination and coordinated 
     service delivery among schools, juvenile courts, child 
     welfare agencies, community mental health providers, primary 
     care providers, public recreation agencies, and community-
     based organizations; or
       ``(I) providing for behavioral specialists to help students 
     transitioning from interim alternative educational settings 
     reintegrate into their regular classrooms.
       ``(c) Definition of Eligible Entity.--In this section, the 
     term ``eligible entity'' means--
       ``(1) a local educational agency; or
       ``(2) a consortium consisting of a local educational agency 
     and 1 or more of the following entities:
       ``(A) Another local educational agency.
       ``(B) A community-based organization with a demonstrated 
     record of effectiveness in helping children with disabilities 
     who have behavioral challenges succeed.
       ``(C) An institution of higher education.
       ``(D) A community mental health provider.
       ``(E) An educational service agency.
       ``(d) Applications.--Any eligible entity that wishes to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under this section shall--
       ``(1) submit an application to the Secretary at such time, 
     in such manner, and containing such information as the 
     Secretary may require; and
       ``(2) involve parents of participating students in the 
     design and implementation of the activities funded under this 
     section.
       ``(e) Report and Evaluation.--Each eligible entity 
     receiving a grant under this section shall prepare and submit 
     annually to the Secretary a report on the outcomes of the 
     activities assisted under the grant.

     ``SEC. 667. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out this subpart (other than section 662) such sums 
     as may be necessary for each of the fiscal years 2005 through 
     2010.
       ``(b) Reservation.--From amounts appropriated under 
     subsection (a) for fiscal year 2005, the Secretary shall 
     reserve $1,000,000 to carry out the study authorized in 
     section 664(c). From amounts appropriated under subsection 
     (a) for a succeeding fiscal year, the Secretary may reserve 
     an additional amount to carry out such study if the Secretary 
     determines the additional amount is necessary.

``Subpart 3--Supports To Improve Results for Children With Disabilities

     ``SEC. 670. PURPOSES.

       ``The purposes of this subpart are to ensure that--
       ``(1) children with disabilities and their parents receive 
     training and information designed to assist the children in 
     meeting developmental and functional goals and challenging 
     academic achievement goals, and in preparing to lead 
     productive independent adult lives;
       ``(2) children with disabilities and their parents receive 
     training and information on their rights, responsibilities, 
     and protections under this title, in order to develop the 
     skills necessary to cooperatively and effectively participate 
     in planning and decision making relating to early 
     intervention, educational, and transitional services;
       ``(3) parents, teachers, administrators, early intervention 
     personnel, related services personnel, and transition 
     personnel receive coordinated and accessible technical 
     assistance and information to assist such personnel in 
     improving early intervention, educational, and transitional 
     services and results for children with disabilities and their 
     families; and
       ``(4) appropriate technology and media are researched, 
     developed, and demonstrated, to improve and implement early 
     intervention, educational, and transitional services and 
     results for children with disabilities and their families.

     ``SEC. 671. PARENT TRAINING AND INFORMATION CENTERS.

       ``(a) Program Authorized.--
       ``(1) In general.--The Secretary may award grants to, and 
     enter into contracts and cooperative agreements with, parent 
     organizations to support parent training and information 
     centers to carry out activities under this section.
       ``(2) Definition of parent organization.--In this section, 
     the term `parent organization' means a private nonprofit 
     organization (other than an institution of higher education) 
     that--
       ``(A) has a board of directors--
       ``(i) the majority of whom are parents of children with 
     disabilities ages birth through 26;
       ``(ii) that includes--

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

       ``(iii) the parent and professional members of which are 
     broadly representative of the population to be served, 
     including low-income parents and parents of limited English 
     proficient children; and
       ``(B) has as its mission serving families of children with 
     disabilities who--
       ``(i) are ages birth through 26; and
       ``(ii) have the full range of disabilities described in 
     section 602(3).
       ``(b) Required Activities.--Each parent training and 
     information center that receives assistance under this 
     section shall--
       ``(1) provide training and information that meets the needs 
     of parents of children with disabilities living in the area 
     served by the center, particularly underserved parents and 
     parents of children who may be inappropriately identified, to 
     enable their children with disabilities to--
       ``(A) meet developmental and functional goals, and 
     challenging academic achievement goals that have been 
     established for all children; and
       ``(B) be prepared to lead productive independent adult 
     lives, to the maximum extent possible;
       ``(2) serve the parents of infants, toddlers, and children 
     with the full range of disabilities described in section 
     602(3);
       ``(3) ensure that the training and information provided 
     meets the needs of low-income parents and parents of limited 
     English proficient children;
       ``(4) assist parents to--
       ``(A) better understand the nature of their children's 
     disabilities and their educational, developmental, and 
     transitional needs;
       ``(B) communicate effectively and work collaboratively with 
     personnel responsible for providing special education, early 
     intervention services, transition services, and related 
     services;
       ``(C) participate in decisionmaking processes and the 
     development of individualized education programs under part B 
     and individualized family service plans under part C;
       ``(D) obtain appropriate information about the range, type, 
     and quality of--
       ``(i) options, programs, services, technologies, practices 
     and interventions based on scientifically based research, to 
     the extent practicable; and
       ``(ii) resources available to assist children with 
     disabilities and their families in school and at home;

[[Page H9931]]

       ``(E) understand the provisions of this title for the 
     education of, and the provision of early intervention 
     services to, children with disabilities;
       ``(F) participate in activities at the school level that 
     benefit their children; and
       ``(G) participate in school reform activities;
       ``(5) in States where the State elects to contract with the 
     parent training and information center, contract with State 
     educational agencies to provide, consistent with 
     subparagraphs (B) and (D) of section 615(e)(2), individuals 
     who meet with parents to explain the mediation process to the 
     parents;
       ``(6) assist parents in resolving disputes in the most 
     expeditious and effective way possible, including encouraging 
     the use, and explaining the benefits, of alternative methods 
     of dispute resolution, such as the mediation process 
     described in section 615(e);
       ``(7) assist parents and students with disabilities to 
     understand their rights and responsibilities under this 
     title, including those under section 615(m) upon the 
     student's reaching the age of majority (as appropriate under 
     State law);
       ``(8) assist parents to understand the availability of, and 
     how to effectively use, procedural safeguards under this 
     title, including the resolution session described in section 
     615(e);
       ``(9) assist parents in understanding, preparing for, and 
     participating in, the process described in section 
     615(f)(1)(B);
       ``(10) establish cooperative partnerships with community 
     parent resource centers funded under section 672;
       ``(11) network with appropriate clearinghouses, including 
     organizations conducting national dissemination activities 
     under section 663 and the Institute of Education Sciences, 
     and with other national, State, and local organizations and 
     agencies, such as protection and advocacy agencies, that 
     serve parents and families of children with the full range of 
     disabilities described in section 602(3); and
       ``(12) annually report to the Secretary on--
       ``(A) the number and demographics of parents to whom the 
     center provided information and training in the most recently 
     concluded fiscal year;
       ``(B) the effectiveness of strategies used to reach and 
     serve parents, including underserved parents of children with 
     disabilities; and
       ``(C) the number of parents served who have resolved 
     disputes through alternative methods of dispute resolution.
       ``(c) Optional Activities.--A parent training and 
     information center that receives assistance under this 
     section may provide information to teachers and other 
     professionals to assist the teachers and professionals in 
     improving results for children with disabilities.
       ``(d) Application Requirements.--Each application for 
     assistance under this section shall identify with specificity 
     the special efforts that the parent organization will 
     undertake--
       ``(1) to ensure that the needs for training and information 
     of underserved parents of children with disabilities in the 
     area to be served are effectively met; and
       ``(2) to work with community based organizations, including 
     community based organizations that work with low-income 
     parents and parents of limited English proficient children.
       ``(e) Distribution of Funds.--
       ``(1) In general.--The Secretary shall--
       ``(A) make not less than 1 award to a parent organization 
     in each State for a parent training and information center 
     that is designated as the statewide parent training and 
     information center; or
       ``(B) in the case of a large State, make awards to multiple 
     parent training and information centers, but only if the 
     centers demonstrate that coordinated services and supports 
     will occur among the multiple centers.
       ``(2) Selection requirement.--The Secretary shall select 
     among applications submitted by parent organizations in a 
     State in a manner that ensures the most effective assistance 
     to parents, including parents in urban and rural areas, in 
     the State.
       ``(f) Quarterly Review.--
       ``(1) Meetings.--The board of directors of each parent 
     organization that receives an award under this section shall 
     meet not less than once in each calendar quarter to review 
     the activities for which the award was made.
       ``(2) Continuation award.--When a parent organization 
     requests a continuation award under this section, the board 
     of directors shall submit to the Secretary a written review 
     of the parent training and information program conducted by 
     the parent organization during the preceding fiscal year.

     ``SEC. 672. COMMUNITY PARENT RESOURCE CENTERS.

       ``(a) Program Authorized.--
       ``(1) In general.--The Secretary may award grants to, and 
     enter into contracts and cooperative agreements with, local 
     parent organizations to support community parent resource 
     centers that will help ensure that underserved parents of 
     children with disabilities, including low income parents, 
     parents of limited English proficient children, and parents 
     with disabilities, have the training and information the 
     parents need to enable the parents to participate effectively 
     in helping their children with disabilities--
       ``(A) to meet developmental and functional goals, and 
     challenging academic achievement goals that have been 
     established for all children; and
       ``(B) to be prepared to lead productive independent adult 
     lives, to the maximum extent possible.
       ``(2) Definition of local parent organization.--In this 
     section, the term `local parent organization' means a parent 
     organization, as defined in section 671(a)(2), that--
       ``(A) has a board of directors the majority of whom are 
     parents of children with disabilities ages birth through 26 
     from the community to be served; and
       ``(B) has as its mission serving parents of children with 
     disabilities who--
       ``(i) are ages birth through 26; and
       ``(ii) have the full range of disabilities described in 
     section 602(3).
       ``(b) Required Activities.--Each community parent resource 
     center assisted under this section shall--
       ``(1) provide training and information that meets the 
     training and information needs of parents of children with 
     disabilities proposed to be served by the grant, contract, or 
     cooperative agreement;
       ``(2) carry out the activities required of parent training 
     and information centers under paragraphs (2) through (9) of 
     section 671(b);
       ``(3) establish cooperative partnerships with the parent 
     training and information centers funded under section 671; 
     and
       ``(4) be designed to meet the specific needs of families 
     who experience significant isolation from available sources 
     of information and support.

     ``SEC. 673. TECHNICAL ASSISTANCE FOR PARENT TRAINING AND 
                   INFORMATION CENTERS.

       ``(a) Program Authorized.--
       ``(1) In general.--The Secretary may, directly or through 
     awards to eligible entities, provide technical assistance for 
     developing, assisting, and coordinating parent training and 
     information programs carried out by parent training and 
     information centers receiving assistance under section 671 
     and community parent resource centers receiving assistance 
     under section 672.
       ``(2) Definition of eligible entity.--In this section, the 
     term `eligible entity' has the meaning given the term in 
     section 661(b).
       ``(b) Authorized Activities.--The Secretary may provide 
     technical assistance to a parent training and information 
     center or a community parent resource center under this 
     section in areas such as--
       ``(1) effective coordination of parent training efforts;
       ``(2) dissemination of scientifically based research and 
     information;
       ``(3) promotion of the use of technology, including 
     assistive technology devices and assistive technology 
     services;
       ``(4) reaching underserved populations, including parents 
     of low-income and limited English proficient children with 
     disabilities;
       ``(5) including children with disabilities in general 
     education programs;
       ``(6) facilitation of transitions from--
       ``(A) early intervention services to preschool;
       ``(B) preschool to elementary school;
       ``(C) elementary school to secondary school; and
       ``(D) secondary school to postsecondary environments; and
       ``(7) promotion of alternative methods of dispute 
     resolution, including mediation.
       ``(c) Collaboration With the Resource Centers.--Each 
     eligible entity receiving an award under subsection (a) shall 
     develop collaborative agreements with the geographically 
     appropriate regional resource center and, as appropriate, the 
     regional educational laboratory supported under section 174 
     of the Education Sciences Reform Act of 2002, to further 
     parent and professional collaboration.

     ``SEC. 674. TECHNOLOGY DEVELOPMENT, DEMONSTRATION, AND 
                   UTILIZATION; MEDIA SERVICES; AND INSTRUCTIONAL 
                   MATERIALS.

       ``(a) Program Authorized.--
       ``(1) In general.--The Secretary, on a competitive basis, 
     shall award grants to, and enter into contracts and 
     cooperative agreements with, eligible entities to support 
     activities described in subsections (b) and (c).
       ``(2) Definition of eligible entity.--In this section, the 
     term `eligible entity' has the meaning given the term in 
     section 661(b).
       ``(b) Technology Development, Demonstration, and Use.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support activities to promote the 
     development, demonstration, and use of technology.
       ``(2) Authorized activities.--The following activities may 
     be carried out under this subsection:
       ``(A) Conducting research on and promoting the 
     demonstration and use of innovative, emerging, and 
     universally designed technologies for children with 
     disabilities, by improving the transfer of technology from 
     research and development to practice.
       ``(B) Supporting research, development, and dissemination 
     of technology with universal design features, so that the 
     technology is accessible to the broadest range of individuals 
     with disabilities without further modification or adaptation.
       ``(C) Demonstrating the use of systems to provide parents 
     and teachers with information and training concerning early 
     diagnosis of, intervention for, and effective teaching 
     strategies for, young children with reading disabilities.
       ``(D) Supporting the use of Internet-based communications 
     for students with cognitive disabilities in order to maximize 
     their academic and functional skills.
       ``(c) Educational Media Services.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support--
       ``(A) educational media activities that are designed to be 
     of educational value in the classroom setting to children 
     with disabilities;
       ``(B) providing video description, open captioning, or 
     closed captioning, that is appropriate for use in the 
     classroom setting, of--
       ``(i) television programs;
       ``(ii) videos;
       ``(iii) other materials, including programs and materials 
     associated with new and emerging

[[Page H9932]]

     technologies, such as CDs, DVDs, video streaming, and other 
     forms of multimedia; or
       ``(iv) news (but only until September 30, 2006);
       ``(C) distributing materials described in subparagraphs (A) 
     and (B) through such mechanisms as a loan service; and
       ``(D) providing free educational materials, including 
     textbooks, in accessible media for visually impaired and 
     print disabled students in elementary schools and secondary 
     schools.
       ``(2) Limitation.--The video description, open captioning, 
     or closed captioning described in paragraph (1)(B) shall be 
     provided only when the description or captioning has not been 
     previously provided by the producer or distributor, or has 
     not been fully funded by other sources.
       ``(d) Applications.--
       ``(1) In general.--Any eligible entity that wishes to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under subsection (b) or (c) shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require.
       ``(2) Special rule.--For the purpose of an application for 
     an award to carry out activities described in subsection 
     (c)(1)(D), such eligible entity shall--
       ``(A) be a national, nonprofit entity with a proven track 
     record of meeting the needs of students with print 
     disabilities through services described in subsection 
     (c)(1)(D);
       ``(B) have the capacity to produce, maintain, and 
     distribute in a timely fashion, up-to-date textbooks in 
     digital audio formats to qualified students; and
       ``(C) have a demonstrated ability to significantly leverage 
     Federal funds through other public and private contributions, 
     as well as through the expansive use of volunteers.
       ``(e) National Instructional Materials Access Center.--
       ``(1) In general.--The Secretary shall establish and 
     support, through the American Printing House for the Blind, a 
     center to be known as the `National Instructional Materials 
     Access Center' not later than 1 year after the date of 
     enactment of the Individuals with Disabilities Education 
     Improvement Act of 2004.
       ``(2) Duties.--The duties of the National Instructional 
     Materials Access Center are the following:
       ``(A) To receive and maintain a catalog of print 
     instructional materials prepared in the National 
     Instructional Materials Accessibility Standard, as 
     established by the Secretary, made available to such center 
     by the textbook publishing industry, State educational 
     agencies, and local educational agencies.
       ``(B) To provide access to print instructional materials, 
     including textbooks, in accessible media, free of charge, to 
     blind or other persons with print disabilities in elementary 
     schools and secondary schools, in accordance with such terms 
     and procedures as the National Instructional Materials Access 
     Center may prescribe.
       ``(C) To develop, adopt and publish procedures to protect 
     against copyright infringement, with respect to the print 
     instructional materials provided under sections 612(a)(23) 
     and 613(a)(6).
       ``(3) Definitions.--In this subsection:
       ``(A) Blind or other persons with print disabilities.--The 
     term `blind or other persons with print disabilities' means 
     children served under this Act and who may qualify in 
     accordance with the Act entitled `An Act to provide books for 
     the adult blind', approved March 3, 1931 (2 U.S.C. 135a; 46 
     Stat. 1487) to receive books and other publications produced 
     in specialized formats.
       ``(B) National instructional materials accessibility 
     standard.--The term `National Instructional Materials 
     Accessibility Standard' means the standard established by the 
     Secretary to be used in the preparation of electronic files 
     suitable and used solely for efficient conversion into 
     specialized formats.
       ``(C) Print instructional materials.--The term `print 
     instructional materials' means printed textbooks and related 
     printed core materials that are written and published 
     primarily for use in elementary school and secondary school 
     instruction and are required by a State educational agency or 
     local educational agency for use by students in the 
     classroom.
       ``(D) Specialized formats.--The term `specialized formats' 
     has the meaning given the term in section 121(d)(3) of title 
     17, United States Code.
       ``(4) Applicability.--This subsection shall apply to print 
     instructional materials published after the date on which the 
     final rule establishing the National Instructional Materials 
     Accessibility Standard was published in the Federal Register.
       ``(5) Liability of the secretary.--Nothing in this 
     subsection shall be construed to establish a private right of 
     action against the Secretary for failure to provide 
     instructional materials directly, or for failure by the 
     National Instructional Materials Access Center to perform the 
     duties of such center, or to otherwise authorize a private 
     right of action related to the performance by such center, 
     including through the application of the rights of children 
     and parents established under this Act.
       ``(6) Inapplicability.--Subsections (a) through (d) shall 
     not apply to this subsection.

     ``SEC. 675. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subpart such sums as may be necessary for each of the fiscal 
     years 2005 through 2010.

                    ``Subpart 4--General Provisions

     ``SEC. 681. COMPREHENSIVE PLAN FOR SUBPARTS 2 AND 3.

       ``(a) Comprehensive Plan.--
       ``(1) In general.--After receiving input from interested 
     individuals with relevant expertise, the Secretary shall 
     develop and implement a comprehensive plan for activities 
     carried out under subparts 2 and 3 in order to enhance the 
     provision of early intervention services, educational 
     services, related services, and transitional services to 
     children with disabilities under parts B and C. To the extent 
     practicable, the plan shall be coordinated with the plan 
     developed pursuant to section 178(c) of the Education 
     Sciences Reform Act of 2002 and shall include mechanisms to 
     address early intervention, educational, related service and 
     transitional needs identified by State educational agencies 
     in applications submitted for State personnel development 
     grants under subpart 1 and for grants under subparts 2 and 3.
       ``(2) Public comment.--The Secretary shall provide a public 
     comment period of not less than 45 days on the plan.
       ``(3) Distribution of funds.--In implementing the plan, the 
     Secretary shall, to the extent appropriate, ensure that funds 
     awarded under subparts 2 and 3 are used to carry out 
     activities that benefit, directly or indirectly, children 
     with the full range of disabilities and of all ages.
       ``(4) Reports to congress.--The Secretary shall annually 
     report to Congress on the Secretary's activities under 
     subparts 2 and 3, including an initial report not later than 
     12 months after the date of enactment of the Individuals with 
     Disabilities Education Improvement Act of 2004.
       ``(b) Assistance Authorized.--The Secretary is authorized 
     to award grants to, or enter into contracts or cooperative 
     agreements with, eligible entities to enable the eligible 
     entities to carry out the purposes of such subparts in 
     accordance with the comprehensive plan described in 
     subsection (a).
       ``(c) Special Populations.--
       ``(1) Application requirement.--In making an award of a 
     grant, contract, or cooperative agreement under subpart 2 or 
     3, the Secretary shall, as appropriate, require an eligible 
     entity to demonstrate how the eligible entity will address 
     the needs of children with disabilities from minority 
     backgrounds.
       ``(2) Required outreach and technical assistance.--
     Notwithstanding any other provision of this title, the 
     Secretary shall reserve not less than 2 percent of the total 
     amount of funds appropriated to carry out subparts 2 and 3 
     for either or both of the following activities:
       ``(A) Providing outreach and technical assistance to 
     historically Black colleges and universities, and to 
     institutions of higher education with minority enrollments of 
     not less than 25 percent, to promote the participation of 
     such colleges, universities, and institutions in activities 
     under this subpart.
       ``(B) Enabling historically Black colleges and 
     universities, and the institutions described in subparagraph 
     (A), to assist other colleges, universities, institutions, 
     and agencies in improving educational and transitional 
     results for children with disabilities, if the historically 
     Black colleges and universities and the institutions of 
     higher education described in subparagraph (A) meet the 
     criteria established by the Secretary under this subpart.
       ``(d) Priorities.--The Secretary, in making an award of a 
     grant, contract, or cooperative agreement under subpart 2 or 
     3, may, without regard to the rulemaking procedures under 
     section 553 of title 5, United States Code, limit 
     competitions to, or otherwise give priority to--
       ``(1) projects that address 1 or more--
       ``(A) age ranges;
       ``(B) disabilities;
       ``(C) school grades;
       ``(D) types of educational placements or early intervention 
     environments;
       ``(E) types of services;
       ``(F) content areas, such as reading; or
       ``(G) effective strategies for helping children with 
     disabilities learn appropriate behavior in the school and 
     other community based educational settings;
       ``(2) projects that address the needs of children based on 
     the severity or incidence of their disability;
       ``(3) projects that address the needs of--
       ``(A) low achieving students;
       ``(B) underserved populations;
       ``(C) children from low income families;
       ``(D) limited English proficient children;
       ``(E) unserved and underserved areas;
       ``(F) rural or urban areas;
       ``(G) children whose behavior interferes with their 
     learning and socialization;
       ``(H) children with reading difficulties;
       ``(I) children in public charter schools;
       ``(J) children who are gifted and talented; or
       ``(K) children with disabilities served by local 
     educational agencies that receive payments under title VIII 
     of the Elementary and Secondary Education Act of 1965;
       ``(4) projects to reduce inappropriate identification of 
     children as children with disabilities, particularly among 
     minority children;
       ``(5) projects that are carried out in particular areas of 
     the country, to ensure broad geographic coverage;
       ``(6) projects that promote the development and use of 
     technologies with universal design, assistive technology 
     devices, and assistive technology services to maximize 
     children with disabilities' access to and participation in 
     the general education curriculum; and
       ``(7) any activity that is authorized in subpart 2 or 3.
       ``(e) Eligibility for Financial Assistance.--No State or 
     local educational agency, or other public institution or 
     agency, may receive a grant or enter into a contract or 
     cooperative agreement under subpart 2 or 3 that relates 
     exclusively to programs, projects, and activities  pertaining 
     to children aged 3 through 5, inclusive, unless the State 
     is eligible to receive a grant under section 619(b).

     ``SEC. 682. ADMINISTRATIVE PROVISIONS.

       ``(a) Applicant and Recipient Responsibilities.--
       ``(1) Development and assessment of projects.--The 
     Secretary shall require that an

[[Page H9933]]

     applicant for, and a recipient of, a grant, contract, or 
     cooperative agreement for a project under subpart 2 or 3--
       ``(A) involve individuals with disabilities or parents of 
     individuals with disabilities ages birth through 26 in 
     planning, implementing, and evaluating the project; and
       ``(B) where appropriate, determine whether the project has 
     any potential for replication and adoption by other entities.
       ``(2) Additional responsibilities.--The Secretary may 
     require a recipient of a grant, contract, or cooperative 
     agreement under subpart 2 or 3 to--
       ``(A) share in the cost of the project;
       ``(B) prepare any findings and products from the project in 
     formats that are useful for specific audiences, including 
     parents, administrators, teachers, early intervention 
     personnel, related services personnel, and individuals with 
     disabilities;
       ``(C) disseminate such findings and products; and
       ``(D) collaborate with other such recipients in carrying 
     out subparagraphs (B) and (C).
       ``(b) Application Management.--
       ``(1) Standing panel.--
       ``(A) In general.--The Secretary shall establish and use a 
     standing panel of experts who are qualified, by virtue of 
     their training, expertise, or experience, to evaluate each 
     application under subpart 2 or 3 that requests more than 
     $75,000 per year in Federal financial assistance.
       ``(B) Membership.--The standing panel shall include, at a 
     minimum--
       ``(i) individuals who are representatives of institutions 
     of higher education that plan, develop, and carry out high 
     quality programs of personnel preparation;
       ``(ii) individuals who design and carry out scientifically 
     based research targeted to the improvement of special 
     education programs and services;
       ``(iii) individuals who have recognized experience and 
     knowledge necessary to integrate and apply scientifically 
     based research findings to improve educational and 
     transitional results for children with disabilities;
       ``(iv) individuals who administer programs at the State or 
     local level in which children with disabilities participate;
       ``(v) individuals who prepare parents of children with 
     disabilities to participate in making decisions about the 
     education of their children;
       ``(vi) individuals who establish policies that affect the 
     delivery of services to children with disabilities;
       ``(vii) individuals who are parents of children with 
     disabilities ages birth through 26 who are benefiting, or 
     have benefited, from coordinated research, personnel 
     preparation, and technical assistance; and
       ``(viii) individuals with disabilities.
       ``(C) Term.--No individual shall serve on the standing 
     panel for more than 3 consecutive years.
       ``(2) Peer-review panels for particular competitions.--
       ``(A) Composition.--The Secretary shall ensure that each 
     subpanel selected from the standing panel that reviews an 
     application under subpart 2 or 3 includes--
       ``(i) individuals with knowledge and expertise on the 
     issues addressed by the activities described in the 
     application; and
       ``(ii) to the extent practicable, parents of children with 
     disabilities ages birth through 26, individuals with 
     disabilities, and persons from diverse backgrounds.
       ``(B) Federal employment limitation.--A majority of the 
     individuals on each subpanel that reviews an application 
     under subpart 2 or 3 shall be individuals who are not 
     employees of the Federal Government.
       ``(3) Use of discretionary funds for administrative 
     purposes.--
       ``(A) Expenses and fees of non-federal panel members.--The 
     Secretary may use funds available under subpart 2 or 3 to pay 
     the expenses and fees of the panel members who are not 
     officers or employees of the Federal Government.
       ``(B) Administrative support.--The Secretary may use not 
     more than 1 percent of the funds appropriated to carry out 
     subpart 2 or 3 to pay non-Federal entities for administrative 
     support related to management of applications submitted under 
     subpart 2 or 3, respectively.
       ``(c) Program Evaluation.--The Secretary may use funds made 
     available to carry out subpart 2 or 3 to evaluate activities 
     carried out under subpart 2 or 3, respectively.
       ``(d) Minimum Funding Required.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall ensure that, for each fiscal year, not less than the 
     following amounts are provided under subparts 2 and 3 to 
     address the following needs:
       ``(A) $12,832,000 to address the educational, related 
     services, transitional, and early intervention needs of 
     children with deaf-blindness.
       ``(B) $4,000,000 to address the postsecondary, vocational, 
     technical, continuing, and adult education needs of 
     individuals with deafness.
       ``(C) $4,000,000 to address the educational, related 
     services, and transitional needs of children with an 
     emotional disturbance and those who are at risk of developing 
     an emotional disturbance.
       ``(2) Ratable reduction.--If the sum of the amount 
     appropriated to carry out subparts 2 and 3, and part E of the 
     Education Sciences Reform Act of 2002 for any fiscal year is 
     less than $130,000,000, the amounts listed in paragraph (1) 
     shall be ratably reduced for the fiscal year.''.
        TITLE II--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

     SEC. 201. NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH.

       (a) Amendment.--The Education Sciences Reform Act of 2002 
     (20 U.S.C. 9501 et seq.) is amended--
       (1) by redesignating part E as part F; and
       (2) by inserting after part D the following:

        ``PART E--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

     ``SEC. 175. ESTABLISHMENT.

       ``(a) Establishment.--There is established in the Institute 
     a National Center for Special Education Research (in this 
     part referred to as the `Special Education Research Center').
       ``(b) Mission.--The mission of the Special Education 
     Research Center is--
       ``(1) to sponsor research to expand knowledge and 
     understanding of the needs of infants, toddlers, and children 
     with disabilities in order to improve the developmental, 
     educational, and transitional results of such individuals;
       ``(2) to sponsor research to improve services provided 
     under, and support the implementation of, the Individuals 
     with Disabilities Education Act (20 U.S.C. 1400 et seq.); and
       ``(3) to evaluate the implementation and effectiveness of 
     the Individuals with Disabilities Education Act in 
     coordination with the National Center for Education 
     Evaluation and Regional Assistance.
       ``(c) Applicability of Education Sciences Reform Act of 
     2002.--Parts A and F, and the standards for peer review of 
     applications and for the conduct and evaluation of research 
     under sections 133(a) and 134, respectively, shall apply to 
     the Secretary, the Director, and the Commissioner in carrying 
     out this part.

     ``SEC. 176. COMMISSIONER FOR SPECIAL EDUCATION RESEARCH.

       ``The Special Education Research Center shall be headed by 
     a Commissioner for Special Education Research (in this part 
     referred to as the `Special Education Research Commissioner') 
     who shall have substantial knowledge of the Special Education 
     Research Center's activities, including a high level of 
     expertise in the fields of research, research management, and 
     the education of children with disabilities.

     ``SEC. 177. DUTIES.

       ``(a) General Duties.--The Special Education Research 
     Center shall carry out research activities under this part 
     consistent with the mission described in section 175(b), such 
     as activities that--
       ``(1) improve services provided under the Individuals with 
     Disabilities Education Act in order to improve--
       ``(A) academic achievement, functional outcomes, and 
     educational results for children with disabilities; and
       ``(B) developmental outcomes for infants or toddlers with 
     disabilities;
       ``(2) identify scientifically based educational practices 
     that support learning and improve academic achievement, 
     functional outcomes, and educational results for all students 
     with disabilities;
       ``(3) examine the special needs of preschool aged children, 
     infants, and toddlers with disabilities, including factors 
     that may result in developmental delays;
       ``(4) identify scientifically based related services and 
     interventions that promote participation and progress in the 
     general education curriculum and general education settings;
       ``(5) improve the alignment, compatibility, and development 
     of valid and reliable assessments, including alternate 
     assessments, as required by section 1111(b) of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6311(b));
       ``(6) examine State content standards and alternate 
     assessments for students with significant cognitive 
     impairment in terms of academic achievement, individualized 
     instructional need, appropriate education settings, and 
     improved post-school results;
       ``(7) examine the educational, developmental, and 
     transitional needs of children with high incidence and low 
     incidence disabilities;
       ``(8) examine the extent to which overidentification and 
     underidentification of children with disabilities occurs, and 
     the causes thereof;
       ``(9) improve reading and literacy skills of children with 
     disabilities;
       ``(10) examine and improve secondary and postsecondary 
     education and transitional outcomes and results for children 
     with disabilities;
       ``(11) examine methods of early intervention for children 
     with disabilities, including children with multiple or 
     complex developmental delays;
       ``(12) examine and incorporate universal design concepts in 
     the development of standards, assessments, curricula, and 
     instructional methods to improve educational and transitional 
     results for children with disabilities;
       ``(13) improve the preparation of personnel, including 
     early intervention personnel, who provide educational and 
     related services to children with disabilities to increase 
     the academic achievement and functional performance of 
     students with disabilities;
       ``(14) examine the excess costs of educating a child with a 
     disability and expenses associated with high cost special 
     education and related services;
       ``(15) help parents improve educational results for their 
     children, particularly related to transition issues;
       ``(16) address the unique needs of children with 
     significant cognitive disabilities; and
       ``(17) examine the special needs of limited English 
     proficient children with disabilities.
       ``(b) Standards.--The Special Education Research 
     Commissioner shall ensure that activities assisted under this 
     section--
       ``(1) conform to high standards of quality, integrity, 
     accuracy, validity, and reliability;
       ``(2) are carried out in accordance with the standards for 
     the conduct and evaluation of all research and development 
     established by the National Center for Education Research; 
     and
       ``(3) are objective, secular, neutral, and nonideological, 
     and are free of partisan political influence, and racial, 
     cultural, gender, regional, or disability bias.
       ``(c) Plan.--The Special Education Research Commissioner 
     shall propose to the Director a research plan, developed in 
     collaboration with the

[[Page H9934]]

     Assistant Secretary for Special Education and Rehabilitative 
     Services, that--
       ``(1) is consistent with the priorities and mission of the 
     Institute and the mission of the Special Education Research 
     Center;
       ``(2) is carried out, updated, and modified, as 
     appropriate;
       ``(3) is consistent with the purposes of the Individuals 
     with Disabilities Education Act;
       ``(4) contains an appropriate balance across all age ranges 
     and types of children with disabilities;
       ``(5) provides for research that is objective and uses 
     measurable indicators to assess its progress and results; and
       ``(6) is coordinated with the comprehensive plan developed 
     under section 681 of the Individuals with Disabilities 
     Education Act.
       ``(d) Grants, Contracts, and Cooperative Agreements.--
       ``(1) In general.--In carrying out the duties under this 
     section, the Director may award grants to, or enter into 
     contracts or cooperative agreements with, eligible 
     applicants.
       ``(2) Eligible applicants.--Activities carried out under 
     this subsection through contracts, grants, or cooperative 
     agreements shall be carried out only by recipients with the 
     ability and capacity to conduct scientifically valid 
     research.
       ``(3) Applications.--An eligible applicant that wishes to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under this section shall submit an application to 
     the Director at such time, in such manner, and containing 
     such information as the Director may require.
       ``(e) Dissemination.--The Special Education Research Center 
     shall--
       ``(1) synthesize and disseminate, through the National 
     Center for Education Evaluation and Regional Assistance, the 
     findings and results of special education research conducted 
     or supported by the Special Education Research Center; and
       ``(2) assist the Director in the preparation of a biennial 
     report, as described in section 119.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this part such 
     sums as may be necessary for each of fiscal years 2005 
     through 2010.''.
       (b) Conforming Amendments.--
       (1) Amendments to the table of contents.--The table of 
     contents in section 1 of the Act entitled ``An Act to provide 
     for improvement of Federal education research, statistics, 
     evaluation, information, and dissemination, and for other 
     purposes'', approved November 5, 2002 (116 Stat. 1940; Public 
     Law 107-279), is amended--
       (A) by redesignating the item relating to part E as the 
     item relating to part F; and
       (B) by inserting after the item relating to section 174 the 
     following:

        ``Part E--National Center for Special Education Research

``Sec. 175. Establishment.
``Sec. 176. Commissioner for Special Education Research.
``Sec. 177. Duties.''.

       (2) Education sciences reform act of 2002.--The Education 
     Sciences Reform Act of 2002 (20 U.S.C. 9501 et seq.) is 
     amended--
       (A) in section 111(b)(1)(A) (20 U.S.C. 9511(b)(1)(A)), by 
     inserting ``and special education'' after ``early childhood 
     education'';
       (B) in section 111(c)(3) (20 U.S.C. 9511(c)(3))--
       (i) in subparagraph (B), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (C), by striking the period and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(D) the National Center for Special Education Research 
     (as described in part E).'';
       (C) in section 115(a) (20 U.S.C. 9515(a)), by striking 
     ``including those'' and all that follows through ``such as'' 
     and inserting ``including those associated with the goals and 
     requirements of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 6301 et seq.), the Individuals with 
     Disabilities Education Act (20 U.S.C. 1400 et seq.), and the 
     Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), such 
     as''; and
       (D) in section 116(c)(4)(A)(ii) (20 U.S.C. 
     9516(c)(4)(A)(ii), by inserting ``special education 
     experts,'' after ``early childhood experts,''.
       (3) Elementary and secondary education act of 1965.--
     Section 1117(a)(3) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6317(a)(3)) is amended by striking 
     ``part E'' and inserting ``part D''.

     SEC. 202. NATIONAL BOARD FOR EDUCATION SCIENCES.

       Section 116(c)(9) of the Education Sciences Reform Act of 
     2002 (20 U.S.C. 9516(c)(9)) is amended by striking the third 
     sentence and inserting the following: ``Meetings of the Board 
     are subject to section 552b of title 5, United States Code 
     (commonly referred to as the Government in the Sunshine 
     Act).''.

     SEC. 203. REGIONAL ADVISORY COMMITTEES.

       Section 206(d)(3) of the Educational Technical Assistance 
     Act of 2002 (20 U.S.C. 9605(d)(3)) is amended by striking 
     ``Academy'' and inserting ``Institute''.
                  TITLE III--MISCELLANEOUS PROVISIONS

     SEC. 301. AMENDMENT TO CHILDREN'S HEALTH ACT OF 2000.

       Section 1004 of the Children's Health Act of 2000 (42 
     U.S.C. 285g note) is amended--
       (1) in subsection (b), by striking ``Agency'' and inserting 
     ``Agency, and the Department of Education''; and
       (2) in subsection (c)--
       (A) in paragraph (2), by striking ``and'' after the 
     semicolon;
       (B) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(4) be conducted in compliance with section 444 of the 
     General Education Provisions Act (20 U.S.C. 1232g), including 
     the requirement of prior parental consent for the disclosure 
     of any education records, except without the use of authority 
     or exceptions granted to authorized representatives of the 
     Secretary of Education for the evaluation of Federally-
     supported education programs or in connection with the 
     enforcement of the Federal legal requirements that relate to 
     such programs.''.

     SEC. 302. EFFECTIVE DATES.

       (a) Parts A, B, and C, and subpart 1 of part D.--
       (1) In general.--Except as provided in paragraph (2), parts 
     A, B, and C, and subpart 1 of part D, of the Individuals with 
     Disabilities Education Act, as amended by title I, shall take 
     effect on July 1, 2005.
       (2) Highly qualified definition.--Subparagraph (A), and 
     subparagraphs (C) through (F), of section 602(10) of the 
     Individuals with Disabilities Education Act, as amended by 
     title I, shall take effect on the date of enactment of this 
     Act for purposes of the Elementary and Secondary Education 
     Act of 1965.
       (b) Subparts 2, 3, and 4 of part D.--Subparts 2, 3, and 4 
     of part D of the Individuals with Disabilities Education Act, 
     as amended by title I, shall take effect on the date of 
     enactment of this Act.
       (c) Education Sciences Reform Act of 2002.--
       (1) National center for special education research.--
     Sections 175, 176, and 177 (other than section 177(c)) of the 
     Education Sciences Reform Act of 2002, as enacted by section 
     201(a)(2) of this Act, shall take effect on the date of 
     enactment of this Act.
       (2) Plan.--Section 177(c) of the Education Sciences Reform 
     Act of 2002, as enacted by section 201(a)(2) of this Act, 
     shall take effect on October 1, 2005.

      SEC. 303. TRANSITION.

       (a) Orderly Transition.--
       (1) In general.--The Secretary of Education (in this 
     section referred to as ``the Secretary'') shall take such 
     steps as are necessary to provide for the orderly transition 
     from the Individuals with Disabilities Education Act, as such 
     Act was in effect on the day preceding the date of enactment 
     of this Act, to the Individuals with Disabilities Education 
     Act and part E of the Education Sciences Reform Act of 2002, 
     as amended by this Act.
       (2) Limitation.--The Secretary's authority in paragraph (1) 
     shall terminate 1 year after the date of enactment of this 
     Act.
       (b) Multi-year Awards.--Notwithstanding any other provision 
     of law, the Secretary may use funds appropriated under part D 
     of the Individuals with Disabilities Education Act to make 
     continuation awards for projects that were funded under 
     section 618, and part D, of the Individuals with Disabilities 
     Education Act (as such section and part were in effect on 
     September 30, 2004), in accordance with the terms of the 
     original awards.
       (c) Research.--Notwithstanding section 302(b) or any other 
     provision of law, the Secretary may award funds that are 
     appropriated under the Department of Education Appropriations 
     Act, 2005 for special education research under either of the 
     headings ``Special Education'' or ``Institute of Education 
     Sciences'' in accordance with sections 672 and 674 of the 
     Individuals with Disabilities Education Act, as such sections 
     were in effect on October 1, 2004.

      SEC. 304. REPEALER.

       Section 644 of the Individuals with Disabilities Education 
     Act, as such section was in effect on the day before the 
     enactment of this Act, is repealed.

     SEC. 305. IDEA TECHNICAL AMENDMENTS TO OTHER LAWS.

       (a) Title 10.--Section 2164(f) of title 10, United States 
     Code is amended--
       (1) in paragraph (1)(B)--
       (A) by striking ``infants and toddlers'' each place the 
     term appears and inserting ``infants or toddlers'';
       (B) by striking ``part H'' and inserting ``part C''; and
       (C) by striking ``1471'' and inserting ``1431''; and
       (2) in paragraph (3)--
       (A) in subparagraph (A)--
       (i) by striking ``602(a)(1)'' and inserting ``602''; and
       (ii) by striking ``1401(a)(1)'' and inserting ``1401'';
       (B) by striking subparagraph (B);
       (C) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (D) in subparagraph (B) (as so redesignated)--
       (i) by striking ``and toddlers'' and inserting ``or 
     toddlers'';
       (ii) by striking ``672(1)'' and inserting ``632''; and
       (iii) by striking ``1472(1)'' and inserting ``1432''.
       (b) Defense Dependents Education Act of 1978.--Section 
     1409(c)(2) of the Defense Dependents Education Act of 1978 
     (20 U.S.C. 927(c)(2)) is amended--
       (1) by striking ``677'' and inserting ``636''; and
       (2) by striking ``part H'' and inserting ``part C''.
       (c) Higher Education Act of 1965.--The Higher Education Act 
     of 1965 (20 U.S.C. 1001 et seq.) is amended--
       (1) in section 465(a)(2)(C) (20 U.S.C. 1087ee(a)(2)(C), by 
     striking ``Individuals With'' and inserting ``Individuals 
     with'' and;
       (2) in section 469(c) (20 U.S.C. 1087ii(c)), by striking 
     ``602(a)(1) and 672(1)'' and inserting ``602 and 632''.
       (d) Education of the Deaf Act.--The matter preceding 
     subparagraph (A) of section 104(b)(2) of the Education of the 
     Deaf Act (20 U.S.C.

[[Page H9935]]

     4304(b)(2)) is amended by striking ``618(a)(1)(A)'' and 
     inserting ``618(a)(1)''.
       (e) Goals 2000: Educate America Act.--Section 3(a)(9) of 
     the Goals 2000: Educate America Act (20 U.S.C. 5802(a)(9)) is 
     amended by striking ``602(a)(17)'' and inserting ``602''.
       (f) School-to-Work Opportunities Act of 1994.--Section 
     4(15) of the School-to-Work Opportunities Act of 1994 (20 
     U.S.C. 6103(15)) is amended--
       (1) by striking ``602(a)(17)'' and inserting ``602''; and
       (2) by striking ``1401(17)'' and inserting ``1401''.
       (g) Elementary and Secondary Education Act of 1965.--The 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6301 et seq.) is amended--
       (1) in section 1111(b)(2)(I)(ii) (20 U.S.C. 
     6311(b)(2)(I)(ii)), by striking ``612(a)(17)(A)'' and 
     inserting ``612(a)(16)(A)'';
       (2) in section 5208 (20 U.S.C. 7221g), by striking 
     ``602(11)'' and inserting ``602''; and
       (3) in section 5563(b)(8)(C) (20 U.S.C. 7273b(b)(8)(C)), by 
     striking ``682'' and inserting ``671''.
       (h) Rehabilitation Act of 1973.--The Rehabilitation Act of 
     1973 (29 U.S.C. 701 et seq.) is amended--
       (1) in section 101(a)(11)(D)(ii) (29 U.S.C. 
     721(a)(11)(D)(ii)), by striking ``(as added by section 101 of 
     Public Law 105-17)'';
       (2) in section 105(b)(1)(A)(ii) (29 U.S.C. 
     725(b)(1)(A)(ii)), by striking ``682(a) of the Individuals 
     with Disabilities Education Act (as added by section 101 of 
     the Individuals with Disabilities Education Act Amendments of 
     1997; Public Law 105-17)'' and inserting ``671 of the 
     Individuals with Disabilities Education Act'';
       (3) in section 105(c)(6) (29 U.S.C. 725(c)(6))--
       (A) by striking ``612(a)(21)'' and inserting 
     ``612(a)(20)'';
       (B) by striking ``Individual with'' and inserting 
     ``Individuals with''; and
       (C) by striking ``(as amended by section 101 of the 
     Individuals with Disabilities Education Act Amendments of 
     1997; Public Law 105-17)'';
       (4) in section 302(f)(1)(D)(ii) (29 U.S.C. 772 
     (f)(1)(D)(ii)), by striking ``(as amended by section 101 of 
     the Individuals with Disabilities Education Act Amendments of 
     1997 (Public Law 105-17))'';
       (5) in section 303(c)(6) (29 U.S.C. 773(c)(6))--
       (A) by striking ``682(a)'' and inserting ``671''; and
       (B) by striking ``(as added by section 101 of the 
     Individuals with Disabilities Education Act Amendments of 
     1997; Public Law 105-17)''; and
       (6) in section 303(c)(4)(A)(ii) (29 U.S.C. 
     773(c)(4)(A)(ii)), by striking ``682(a) of the Individuals 
     with Disabilities Education Act (as added by section 101 of 
     the Individuals with Disabilities Education Act Amendments of 
     1997; Public Law 105-17)'' and inserting ``671 of the 
     Individuals with Disabilities Education Act''.
       (i) Public Health Service Act.--The Public Health Service 
     Act (42 U.S.C. 201 et seq.) is amended--
       (1) in section 399A(f) (42 U.S.C. 280d(f), by striking 
     ``part H'' and inserting ``part C'';
       (2) in section 399(n)(3) (42 U.S.C. 280c-6(n)(3)), by 
     striking ``part H'' and inserting ``part C'';
       (3) in section 399A(b)(8) (42 U.S.C. 280d(b)(8)), by 
     striking ``part H'' and inserting ``part C'';
       (4) in section 562(d)(3)(B) (42 U.S.C. 290ff-1(d)(3)(B)), 
     by striking ``and H'' and inserting ``and C''; and
       (5) in section 563(d)(2) (42 U.S.C. 290ff-2(d)(2)), by 
     striking ``602(a)(19)'' and inserting ``602''.
       (j) Social Security Act.--The Social Security Act (42 
     U.S.C. 301 et seq.) is amended--
       (1) in section 1903(c) (42 U.S.C. 1396b(c)), by striking 
     ``part H'' and inserting ``part C''; and
       (2) in section 1915(c)(5)(C)(i) (42 U.S.C. 
     1396n(c)(5)(C)(i)), by striking ``(as defined in section 
     602(16) and (17) of the Education of the Handicapped Act (20 
     U.S.C. 1401(16), (17))'' and inserting ``(as such terms are 
     defined in section 602 of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1401))''.
       (k) Domestic Volunteer Service Act of 1973.--Section 211(a) 
     of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 
     5011(a)) is amended--
       (1) by striking ``part H'' and inserting ``part C''; and
       (2) by striking ``1471'' and inserting ``1431''.
       (l) Head Start Act.--The Head Start Act (42 U.S.C. 9831 et 
     seq.) is amended--
       (1) in section 640(a)(5)(C)(iv) (42 U.S.C. 
     9835(a)(5)(C)(iv)), by striking ``1445'' and inserting 
     ``1444'';
       (2) in section 640(d) (42 U.S.C. 9835(d))--
       (A) by striking ``U.S.C'' and inserting ``U.S.C.''; and
       (B) by striking ``1445'' and inserting ``1444'';
       (3) in section 641(d)(3) (42 U.S.C. 9836(d)(3)), by 
     striking ``U.S.C 1431-1445'' and inserting ``U.S.C. 1431-
     1444''; and
       (4) in section 642(c) (42 U.S.C. 9837(c)), by striking 
     ``1445'' and inserting ``1444''.
       (m) National and Community Service Act of 1990.--Section 
     101(21)(B) of the National and Community Service Act of 1990 
     (42 U.S.C. 12511(21)(B)) is amended--
       (1) by striking ``602(a)(1)'' and inserting ``602''; and
       (2) by striking ``1401(a)(1)'' and inserting ``1401''.
       (n) Developmental Disabilities Assistance and Bill of 
     Rights Act of 2000.--The Developmental Disabilities 
     Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15001 et 
     seq.) is amended--
       (1) in section 125(c)(5)(G)(i) (42 U.S.C. 
     15025(c)(5)(G)(i)), by striking ``subtitle C'' and inserting 
     ``part C''; and
       (2) in section 154(a)(3)(E)(ii)(VI) (42 U.S.C. 
     15064(a)(3)(E)(ii)(VI))--
       (A) by striking ``682 or 683'' and inserting ``671 or 
     672''; and
       (B) by striking ``(20 U.S.C. 1482, 1483)''.
       (o) District of Columbia School Reform Act of 1995.--The 
     District of Columbia School Reform Act of 1995 (Public Law 
     104-134) is amended--
       (1) in section 2002(32)--
       (A) by striking ``602(a)(1)'' and inserting ``602''; and
       (B) by striking ``1401(a)(1)'' and inserting ``1401'';
       (2) in section 2202(19), by striking ``Individuals With'' 
     and inserting ``Individuals with''; and
       (3) in section 2210--
       (A) in the heading for subsection (c), by striking ``With 
     Disabilities'' and inserting ``with Disabilities''; and
       (B) in subsection (c), by striking ``Individuals With'' and 
     inserting ``Individuals with''.

     SEC. 306. COPYRIGHT.

       Section 121 of title 17, United States Code, is amended--
       (1) by redesignating subsection (c) as subsection (d);
       (2) by inserting after subsection (b) the following:
       ``(c) Notwithstanding the provisions of section 106, it is 
     not an infringement of copyright for a publisher of print 
     instructional materials for use in elementary or secondary 
     schools to create and distribute to the National 
     Instructional Materials Access Center copies of the 
     electronic files described in sections 612(a)(23)(C), 
     613(a)(6), and section 674(e) of the Individuals with 
     Disabilities Education Act that contain the contents of print 
     instructional materials using the National Instructional 
     Material Accessibility Standard (as defined in section 
     674(e)(3) of that Act), if--
       ``(1) the inclusion of the contents of such print 
     instructional materials is required by any State educational 
     agency or local educational agency;
       ``(2) the publisher had the right to publish such print 
     instructional materials in print formats; and
       ``(3) such copies are used solely for reproduction or 
     distribution of the contents of such print instructional 
     materials in specialized formats.''; and
       (3) in subsection (d), as redesignated by this section--
       (A) in paragraph (2), by striking ``and'' after the 
     semicolon; and
       (B) by striking paragraph (3) and inserting the following:
       ``(3) `print instructional materials' has the meaning given 
     under section 674(e)(3)(C) of the Individuals with 
     Disabilities Education Act; and
       ``(4) `specialized formats' means--
       ``(A) braille, audio, or digital text which is exclusively 
     for use by blind or other persons with disabilities; and
       ``(B) with respect to print instructional materials, 
     includes large print formats when such materials are 
     distributed exclusively for use by blind or other persons 
     with disabilities.''.

       And the Senate agree to the same.

     From the Committee on Education and the Workforce, of 
     reconsideration of the House bill and the Senate amendment, 
     and modifications committed to conference:
     John Boehner,
     Michael N. Castle,
     Vernon J. Ehlers,
     Ric Keller,
     Joe Wilson,
     George Miller,
     Lynn C. Woolsey,
     Major R. Owens,
     From the Committee on Energy and Commerce, for consideration 
     of sec. 101 and title V of the Senate amendment, and 
     modifications committed to conference:
     Joe Barton,
     Michael Bilirakis,
     John D. Dingell,
     From the Committee on the Judiciary, for consideration of 
     sec. 205 of the House bill, and sec. 101 of the Senate 
     amendment, and modifications committed to conference:
     F. James Sensenbrenner, Jr.,
     Lamar Smith,
     John Conyers,
                                Managers on the Part of the House.

     Judd Gregg,
     Bill Frist,
     Michael B. Enzi,
     Lamar Alexander,
     Christopher Bond,
     Mike DeWine,
     Pat Roberts,
     Jeff Sessions,
     John Ensign,
     Lindsey Graham,
     John Warner,
     Edward Kennedy,
     Christopher J. Dodd,
     Tom Harkin,
     Barbara A. Mikulski,
     Jeff Bingaman,
     Pat Murray,
     Jack Reed,
     John Edwards,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 1350), an Act to 
     reauthorize the Individuals with Disabilities Education Act, 
     and for other purposes, submit the following joint statement 
     to the House and the Senate in explanation of the effect of 
     the action agreed upon by managers and recommended in the 
     accompanying conference report:

[[Page H9936]]

                            Recommendations

     Enacting Clause, Short Title, and Organization
       (1) The House bill and Senate amendment have different 
     titles and different organization systems.
     HR
       (2) The House bill includes this technical language as part 
     of its structure to keep section 604 as current law. The 
     Senate amendment replaces the entire existing law.
     HR/LC

     Title I, Part A
       (3) There are no significant differences between the House 
     bill and Senate amendment.
     HR/LC
       (4) The House bill and Senate amendment have different 
     sections and headings in Part A and Part D. In Part D the 
     Senate amendment has a subpart IV that is not in the House 
     bill.
     LC
       (5) There are no significant differences between House 
     (c)(1) and Senate (c)(1).
     LC
       (6) The Senate amendment goes into greater detail on how 
     the needs of special education students were not being met 
     prior to PL 94-142.
     HR
       (7) The House bill does not include the Senate findings on 
     implementation or providing services.
     HR
       (8) There are no significant differences between the House 
     bill and Senate amendment.
     LC
       (9) The House bill does not include these Senate findings.
     HR
       (10) There are no significant differences between the House 
     bill and Senate amendment.
     LC
       (11) There are no significant differences between the House 
     and Senate amendments.
     LC
       (12) There are minor wording differences between the House 
     bill and the Senate amendment regarding full participation of 
     minority individuals.
     SR
       (13) The House bill does not include this Senate finding.
     HR
       (14) The House bill refers to ``system improvement 
     activities'' while the Senate bill refers to ``systemic-
     change activities.''
     SR
       (15) The Senate amendment, but not the House bill, includes 
     a clarification that certain medical devices are not required 
     to be provided under the Act.
     HR
       (16) There are no significant differences between the House 
     bill and Senate amendment.
     LC
       (17) The Senate amendment, but not the House bill, adds 
     this new definition.
     HR
       (18) There are no differences between the House bill and 
     Senate amendment.
     LC
       (19) The Senate amendment, not the House bill, has greater 
     detail in citing ESEA programs. There are also minor wording 
     differences between the bills in describing the impact of 
     State or local funds.
     HR
       (20) The House bill and Senate amendment are largely 
     similar except the House bill includes language designed to 
     place a limitation on the extent of the services provided 
     under the Act. The Senate amendment does not include this 
     provision.
     HR
       (21) The House bill applies the requirements for a highly 
     qualified teacher in NCLB to special education teachers. The 
     Senate amendment mirrors the NCLB definition of a highly 
     qualified teacher, with these exceptions:
       1. Requires all special education teachers to be certified 
     as special education teachers.
       2. Exempts teachers who only provide consultative services 
     from demonstrating subject knowledge/competency.
       3. Requires middle/high school teachers, who primarily 
     teach children with significant cognitive disabilities to 
     demonstrate knowledge of elementary curriculum rather than 
     high level competition in each of the subjects they teach.
     HR with an amendment to read as follows:
       ``(10) Highly qualified.--
       ``(A) In general.--For any special education teacher, the 
     term ``highly qualified'' has the meaning given the term in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965, except that such term also--
       ``(i) includes the requirements described in subparagraph 
     (B); and
       ``(ii) includes the option for teachers to meet the 
     requirements of section 9101 of such Act by meeting the 
     requirements of subparagraph (C) or (D).
       ``(B) Requirements for special education teachers.--When 
     used with respect to any public elementary school or 
     secondary school special education teacher teaching in a 
     State, such term means that--
       ``(i) the teacher has obtained full State certification as 
     a special education teacher (including certification obtained 
     through alternative routes to certification), or passed the 
     State special education teacher licensing examination, and 
     holds a license to teach in the State as a special education 
     teacher, except that when used with respect to any teacher 
     teaching in a public charter school, the term means that the 
     teacher meets the requirements set forth in the State's 
     public charter school law;
       ``(ii) the teacher has not had special education 
     certification or licensure requirements waived on an 
     emergency, temporary, or provisional basis; and
       ``(iii) the teacher holds at least a bachelor's degree.
       ``(C) Special education teachers teaching to alternate 
     achievement standards.--When used with respect to a special 
     education teacher who teaches core academic subjects 
     exclusively to children who are assessed against alternate 
     achievement standards established under the regulations 
     promulgated under section 1111(b)(1) of such Act, such term 
     means the teacher, whether new or not new to the profession, 
     may either--
       ``(i) meet the applicable requirements of section 9101 of 
     such Act for any elementary, middle, or secondary school 
     teacher who is new or not new to the profession; or
       ``(ii) meet the requirement of subparagraph (B) or (C) of 
     section 9101(23) of such Act as applied to an elementary 
     school teacher, or, in the case of instruction above the 
     elementary level, has subject matter knowledge appropriate to 
     the level of instruction being provided, as determined by the 
     State, needed to effectively teach to those standards.
       ``(D) Special education teachers teaching multiple 
     subjects.--When used with respect to a special education 
     teacher who teaches 2 or more core academic subjects 
     exclusively to children with disabilities, such term means 
     that the teacher may--
       ``(i) meet the applicable requirements of section 9101 of 
     the Elementary and Secondary Education Act of 1965 for any 
     elementary, middle, or secondary school teacher who is new or 
     not new to the profession;
       ``(ii) in the case of a teacher who is not new to the 
     profession, demonstrate competence in all the core academic 
     subjects in which the teacher teaches in the same manner as 
     is required for an elementary, middle, or secondary school 
     teacher who is not new to the profession under section 
     9101(23)(C)(ii) of such Act, which may include a single, high 
     objective uniform State standard of evaluation covering 
     multiple subjects; or
       ``(iii) in the case of a new special education teacher who 
     teaches multiple subjects and who is highly qualified in 
     mathematics, language arts, or science, demonstrate 
     competence in the additional core academic subjects in which 
     the teacher teaches in the same manner as is required for an 
     elementary, middle, or secondary school teacher under section 
     9101(23)(C)(ii) of such Act, which may include a single, high 
     objective uniform state standard of evaluation covering 
     multiple subjects, not later than 2 years after the date of 
     employment.
       ``(E) Rule of construction.--Notwithstanding any other 
     individual right of action that a parent or student may 
     maintain under this part, nothing in this section or part 
     shall be construed to create a right of action on behalf of 
     an individual student or class of students for the failure of 
     a particular State educational agency or local educational 
     agency employee to be highly qualified.
       ``(F) Definition for purposes of the esea.--A teacher who 
     is highly qualified under this paragraph shall be considered 
     highly qualified for purposes of the Elementary and Secondary 
     Education Act of 1965.''

       Report language: ``The Conference Committee intends to 
     clarify that, for the purposes of the Elementary and 
     Secondary Education Act of 1965 and the Individuals with 
     Disabilities Education Act, a special education teacher who 
     provides only consultative services to a highly qualified 
     teacher (as such term is defined in section 9101 (23) of the 
     Elementary and Secondary Education Act of 1965) should be 
     considered a highly qualified special education teacher if 
     such teacher meets the requirements of section 602(10)(A) of 
     this legislation. Such consultative services do not include 
     instruction in core academic subjects, but may include 
     adjustments to the learning environment, modifications of 
     instructional methods, adaptation of curricula, the use of 
     positive behavioral supports and interventions, or the use of 
     appropriate accommodations to meet the needs of individual 
     children.''
       Report language: ``Under the Elementary and Secondary 
     Education Act of 1965, each state was charged with developing 
     a `high, objective, uniform state standard of evaluation' 
     (HOUSSE) to provide teachers with another avenue through 
     which to demonstrate the subject mastery requirements of the 
     ``highly qualified'' definition. Some states have developed 
     HOUSSE standards for special education teachers. With the 
     passage of this legislation, the Conference committee intends 
     to clarify that under the Elementary and Secondary Education 
     Act of 1965, states may allow special education teachers to 
     utilize a HOUSSE which applies to all teachers or adapt a 
     HOUSSE to accommodate special education teachers, including a 
     HOUSSE that consists of a single evaluation to cover multiple 
     subjects. Such adaptations or accommodations must not, 
     however, establish a lesser standard for the content 
     knowledge requirements of special education teachers compared 
     to the standards for general education teachers. The 
     Conference committee

[[Page H9937]]

     encourages all states to explore these options.''
       Report language: ``It is the conferees' intent that any new 
     special education teacher teaching one core academic subject 
     shall demonstrate competency by passing a rigorous State 
     academic subject test in that subject, or successful 
     completion in that subject of an academic major, a graduate 
     degree, coursework equivalent to an undergraduate academic 
     major, or advanced certification or credentialing. Any 
     special education teacher who is not new to the profession 
     and who teaches one core academic subject must, by the end of 
     the 2005-2006 school year, pass a rigorous State academic 
     subject test in that subject, complete in that subject an 
     academic major, a graduate degree, coursework equivalent to 
     an undergraduate academic major, or advanced certification or 
     credentialing, or complete a high objective uniform State 
     standard of evaluation.''
       Report language: ``The bill requires special education 
     teachers to have obtained full State certification as special 
     education teachers, but it does not prevent general education 
     and other teachers who are highly qualified in particular 
     subjects from providing instruction in core academic subjects 
     to children with disabilities in those subjects. For example, 
     a reading specialist who is highly qualified in reading 
     instruction, but who is not certified as a special education 
     teacher, would not be prohibited by this provision from 
     providing reading instruction to children with 
     disabilities.''
       Report language: ``In special cases where such children 
     also receive instruction in one or more core academic 
     subjects at an instructional level above the basic elementary 
     school curriculum, the Conferees fully intend for such 
     instruction to be provided by a highly qualified teacher 
     demonstrating a high level of competency in each of the core 
     academic subjects taught. Such instruction could be provided 
     by a highly qualified teacher in the general education 
     classroom or by such teacher providing instruction in a self-
     contained classroom. Such competency shall be demonstrated 
     consistent with the requirements of this section and with 
     those of section 9101 of the Elementary and Secondary 
     Education Act of 1965.''

       (22) There are no significant differences between the House 
     bill and the Senate amendment.
     LC
       (23) The Senate amendment, but not the House bill, adds 
     this new definition.
     HR
       (24) There are no significant differences between the House 
     bill and the Senate amendment.
     LC
       (25) There are no significant differences between the House 
     bill and the Senate amendment. Both the House bill and the 
     Senate amendment include this definition of outlying area.
     LC
       (26) The Senate amendment, but not the House bill, includes 
     extensive language regarding the different types of people 
     that can be deemed a parent of a child with a disability.
     SR with an amendment to read as follows:
       ``(22) Parent.--The term `parent' means--
       ``(i) a natural, adoptive or foster parent of a child 
     (unless prohibited by State law);
       ``(ii) a guardian (but not the State if the child is a ward 
     of the State)
       ``(iii) an individual acting in the place of a natural or 
     adoptive parents, including a grandparent, stepparent or 
     other relative with whom the child lives or an individual who 
     is legally responsible for the child's welfare; or
       ``(iv) except as used in sections 615(b)(2) and 639(a)(5), 
     an individual assigned under either of those sections to be a 
     surrogate parent.''

       (27) The House bill and Senate amendment are largely 
     similar except the Senate amendment includes an exception 
     regarding certain medical devices and the Senate amendment 
     includes interpreting services, school health services, and 
     travel training instruction as listed related services. The 
     Senate amendment, but not the House bill, includes an 
     exception for medical devices that are surgically implemented 
     or its replacement.
     HR with an amendment:
       Strike ``school health services'' and insert ``school nurse 
     services designed to enable the child to receive FAPE as 
     described in the IEP'' and strike ``travel training 
     instruction,''.

       Report language: ``The Conferees intend that `orientation 
     and mobility services' include travel training instruction.''

       (28) There are no significant differences between the House 
     bill and the Senate amendment.
     LC
       (29) There are no differences between the House bill and 
     the Senate amendment.
     LC
       (30) There are no significant differences between the House 
     bill and the Senate amendment.
     LC
       (31) The House bill focuses on ``academic and developmental 
     achievement'' and the Senate amendment focuses on ``academic 
     and functional achievement.''
     HR
       (32) The Senate amendment, but not the House bill, includes 
     these definitions for military children, homeless children, 
     and wards of the State.
     SR with an amendment to read as follows:
       ``(34) Homeless children.--The term `homeless children' has 
     the meaning given the term `homeless children and youths' in 
     section 725 of the McKinney-Vento Homeless Assistance Act.
       ``(35) Ward of the state.--
       ``(A) The term `ward of the state' means a child who, as 
     defined by the State where the child resides, is a foster 
     child, a ward of the State or is in the custody of a public 
     child welfare agency; and
       ``(B) Not withstanding subparagraph (A), the term does not 
     include a foster child who has a foster parent covered by the 
     definition of ``parent'' in section 602 (22).''

       (33) There are no differences between the House bill and 
     the Senate amendment.
     LC
       (34) Neither the House bill nor Senate amendment make 
     changes to current law.
     HR
       (35) The House bill includes this technical language as 
     part of its structure to keep section 604 as current law. The 
     Senate amendment replaces the entire existing law.
     LC
       (36) There are no differences between the House bill and 
     the Senate amendment.
     LC
       (37) The House bill, but not the Senate amendment, provides 
     examples of jobs in which recipients of funds should try to 
     employ people with disabilities.
     HR
       (38) There are minor wording differences between the House 
     bill and the Senate amendment.
     HR
       (39) The House bill requires a public comment period of 60 
     days while the Senate amendment limits the comment period to 
     90 days.
     SR with an amendment:
       Strike ``60'' and insert ``75''.

       (40) There are minor wording differences between the House 
     bill and the Senate amendment, but the content is the same.
     HR
       (41) The House and Senate have the same language, but the 
     Senate amendment places this in (f) (see note 43).
     HR
       (42) The House bill and Senate amendment are similar with 
     minor wording differences, except that the Senate amendment 
     and not the House bill includes a provision that any letters 
     are provided as guidance and are not legally binding.
     HR
       (43) The House and Senate have similar language, but the 
     House bill places this in (e) (see note 41).
     HR
       (44) The House bill includes this technical language as 
     part of its structure to keep parts of current law. The 
     Senate amendment replaces the entire existing law.
     LC
       (45) The House bill and Senate amendment contain similar 
     provisions regarding State support and facilitation of 
     regulations. But the House bill, not the Senate amendment, 
     requires States to minimize the number of regulations under 
     the Act while the Senate amendment, not the House bill, 
     requires States to identify in writing any rule, regulation, 
     or policy that is generated by the State, not the Act or its 
     regulations.
     HR with an amendment:
     Insert paragraph (2) of House bill.

       (46) The Senate amendment allows up to 15 States to 
     participate in a paperwork reduction pilot. The House bill 
     allows the participation of up to 10 States in note 263.
     HR
       (47) The House bill contains a request for GAO to report on 
     the paperwork burden of the Act every 2 years, with an 
     initial 2 year deadline.
     HR
       (48) The House bill also includes requests for GAO to 
     report on disability definitions in the States, distance 
     learning for professional development programs, and the 
     impact of the Act on limited English proficient students. The 
     Senate amendment does not include these reports.
     HR
       (49a) The Senate amendment, but not the House bill, 
     specifies that the Freely Associated States shall continue to 
     be eligible for competitive grants administered by the 
     Secretary.
     HR
     Part B
       (49) The House bill includes this technical language as 
     part of its structure to keep parts of current law. The 
     Senate amendment replaces the entire existing law.
     LC
       (50) There are no differences between the House bill and 
     the Senate amendment.
     LC
       (51) The House bill places a cap on the maximum grant that 
     is based on the number of students in the State. The Senate 
     amendment bases the formula for the maximum

[[Page H9938]]

     total cap on the number of children with disabilities in the 
     02-03 school year and adjusts the formula by the change in 
     the population and poverty rates in the State.
     SR with an amendment:
       Rewrite (a)(2) to read as follows:
       ``(2) Maximum amounts.--The maximum amount of the grant a 
     State may receive under this section for any fiscal year is--
       ``(A) for fiscal years 2005 and 2006 is--
       ``(i) the number of children with disabilities in the State 
     who are receiving special education and related services--

       ``(I) aged 3 through 5 if the State is eligible for a grant 
     under section 619; and
       ``(II) aged 6 through 21; multiplied by--

       ``(ii) 40 percent of the APPE in public elementary and 
     secondary schools in the United States; and
       ``(B) for fiscal year 2007 and subsequent fiscal years--
       ``(i) the number of children with disabilities in the 2004-
     2005 school year in the State who received special education 
     and related services--

       ``(I) aged 3 through 5 if the State is eligible for a grant 
     under section 619; and
       ``(II) aged 6 through 21; multiplied by--

       ``(ii) 40 percent of the APPE in public elementary and 
     secondary schools in the United States; adjusted by;
       ``(iii) the rate of annual change in the sum of--

       ``(I) 85 percent of such State's population described in 
     subsection (d)(3)(A)(i)(II); and
       ``(II) 15 percent of such State's population described in 
     subsection (d)(3)(A)(i)(III).''

       (52) The Senate amendment includes the Freely Associated 
     States as eligible entities under this Act. The House bill 
     does not.
     HR
       (53) There are no differences between the House bill and 
     Senate amendment.
     LC
       (54) The Senate amendment allows funds to be allocated to 
     the Freely Associated States and for studies and evaluations 
     under Part B. The FAS's are not eligible entities under the 
     House bill, and the House bill allocates funds for studies 
     and evaluations in Part D.
     HR with amendment:
       Insert:
       ``(i) Technical assistance.--

       ``(A) In general.--The Secretary may reserve not more than 
     \1/2\ of 1 percent of the amounts appropriated under this 
     Part for each fiscal year to provide technical assistance 
     activities authorized under section 616.
       ``(B) Maximum amount.--The maximum amount the Secretary may 
     reserve under (A) for any fiscal year is $25,000,000, 
     increased by the cumulative rate of inflation since fiscal 
     year 2004.''

       (55) The House bill and Senate amendment have different 
     language to recalculate the 1999 base amount if a State that 
     served 3-5 year olds in that year does not serve them in a 
     subsequent year.
     HR
       (56) There are minor technical differences between the 
     House and Senate amendments, but the content is the same.
     HR
       (57) There are minor technical and wording differences 
     between the House and Senate amendments, but the content is 
     the same.
     HR
       (58) There are no differences between the House bill and 
     Senate amendment.
     HR/LC
       (59) There are minor technical and wording differences 
     between the House and Senate amendments, but the content is 
     the same.
     HR/LC
       (60) The House bill limits the amount of funds for State-
     level activities to 25% of its FY 97 State grant, adjusted by 
     inflation or the percent increase of the Federal 
     appropriation, and allows these funds to be used without 
     regard to commingling or supplantation requirements. The 
     Senate amendment allows States in FY 04 and 05 to reserve 10% 
     off their State grant for State-level activities, after 
     reserving funds for administration. After FY 05, this figure 
     is then increased by the inflation rate. Small States are 
     allowed to reserve 12% until FY 05, and then adjust that 
     level by inflation (see note (62)). Both House and Senate 
     allow commingling. See note (66).
     HR
       (61) The House bill allows States to use up to 20% of its 
     State set-aside for administration, or $750,000. The Senate 
     amendment allows States to use their FY 03 level for 
     administration, or $800,000, adjusted for inflation each 
     year.
       The Senate amendment, but not the House bill, also requires 
     States to certify that they meet the requirements of 
     designating financial responsibilities for services.
     SR with an amendment to read as follows:
       ``(1) State administration.--
       ``(A) In general.--For the purpose of administering this 
     part, including paragraph (3), section 619, and the 
     coordination of activities under this part with, and 
     providing technical assistance to, other programs that 
     provide services to children with disabilities--
       ``(i) each State may reserve for each fiscal year not more 
     than the maximum amount the State was eligible to reserve for 
     State administration under this part for fiscal year 2004 or 
     $800,000 (adjusted in accordance with subparagraph (B)), 
     whichever is greater; and
       ``(ii) each outlying area may reserve for each fiscal year 
     not more than 5 percent of the amount the outlying area 
     receives under subsection (b) for the fiscal year or $35,000, 
     whichever is greater.
       ``(B) Cumulative annual adjustments.--For each fiscal year 
     beginning with fiscal year 2005, the Secretary shall 
     cumulatively adjust (i) the maximum amount the State was 
     eligible to reserve for State administration under this part 
     for fiscal year 2004, and (ii) $800,000, by the rate of 
     inflation as measured by the percentage increase, if any, 
     from the preceding fiscal year in the Consumer Price Index 
     For All Urban Consumers, published by the Bureau of Labor 
     Statistics of the Department of Labor.
       ``(C) Part c.--Funds reserved under subparagraph (A) may be 
     used for the administration of part C, if the State 
     educational agency is the lead agency for the State under 
     that part.
       ``(D) Certification.--Prior to expenditure of funds under 
     this paragraph, the State shall provide assurances to the 
     Secretary that the arrangements to establish responsibility 
     for services pursuant to section 612(a)(12(A) are current.''

       (62) The Senate amendment allows States in FY 04 and 05 to 
     reserve 10% off their State grant for State-level activities, 
     after reserving funds for administration. After FY 05, this 
     figure is then increased by the inflation rate. Small States 
     are allowed to reserve 12% until FY 05, and then adjust that 
     level by inflation. The House bill limits the amount of funds 
     for State-level activities to 25% of its FY 97 State grant, 
     adjusted by inflation or the percent increase of the Federal 
     appropriation, and allows these funds to be used without 
     regard to commingling or supplantation requirements. See note 
     (66).
     SR with an amendment to read as follows:
       ``(2) Other state-level activities.--
       ``(A) State-level activities.--
       ``(i) In general.--For the purpose of carrying out State-
     level activities, each State may reserve for each of the 
     fiscal years 2005 and 2006 not more than 10 percent from the 
     amount of the State's allocation under subsection (d) for 
     fiscal year 2005 and 2006, respectively. For fiscal year 2007 
     and each subsequent fiscal year, the State may reserve the 
     maximum amount the State was eligible to reserve under the 
     preceding sentence for fiscal year 2006 (adjusted by the 
     cumulative rate of inflation since fiscal year 2006 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.
       ``(ii) Small state adjustment.--Notwithstanding clause (i), 
     in the case of a state for which the maximum amount reserved 
     for State administration is not greater than $850,000 the 
     State may reserve for the purpose of carrying out State-level 
     activities for each of the fiscal years 2005 and 2006, not 
     more than 10.5 percent from the amount of the State's 
     allocation under subsection (d) for fiscal year 2005 and 
     2006, respectively. For fiscal year 2007 and each subsequent 
     fiscal year, such State may reserve the maximum amount the 
     State was eligible to reserve under the preceding sentence 
     for fiscal year 2006 (adjusted by the cumulative rate of 
     inflation since fiscal year 2006 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).''.

       (63) The Senate amendment establishes a list of required 
     activities that States must support with their State-level 
     funds to support. The House bill has no similar requirement.
     SR with an amendment to read as follows:
       ``(B) Required activities.--Funds reserved under 
     subparagraph (A) shall be used to carry out the following 
     activities:
       ``(i) For monitoring, enforcement and complaint 
     investigation.
       ``(ii) To establish and implement the mediation, processes 
     required by section 615(e)(1), including providing for the 
     costs of mediators, support personnel.''

       (64) The Senate amendment establishes a list of authorized 
     activities that States may conduct with State-level funds. 
     The House bill includes Senate activities (i), (ii), (vii), 
     and (viii) in note 67 and adds monitoring and complaint 
     investigation, mediation and voluntary binding arbitration, 
     support to meet State goals in 612(a)(15), prereferral 
     services, and subgrants to LEAs designated as in need of 
     improvement due to the scores of students with disabilities. 
     Activities (iii)-(vi), (ix), and (x) in the Senate amendment 
     are not included in the House bill.
     SR with an amendment to read as follows:
       ``(C) Authorized activities.--Funds reserved under 
     subparagraph (A) may be used to carry out the following 
     activities:
       ``(i) For support and direct services, including technical 
     assistance, personnel preparation, and professional 
     development and training.
       ``(ii) To support paperwork reduction activities, including 
     expanding the use of technology in the IEP process.
       ``(iii) To assist local educational agencies in providing 
     positive behavioral interventions and supports and mental 
     health services for children with disabilities.
       ``(iv) To improve the use of technology in the classroom by 
     children with disabilities to enhance learning.
       ``(v) To support the use of technology, including 
     universally designed technology and assistive technology 
     devices, to maximize

[[Page H9939]]

     accessibility to the general curriculum for children with 
     disabilities.
       ``(vi) Development and implementation of transition 
     programs, including coordination of services with agencies 
     involved in supporting the transition of students with 
     disabilities to post-secondary activities.
       ``(vii) To assist local educational agencies in meeting 
     personnel shortages.
       ``(viii) To support capacity building activities and 
     improve the delivery of services by local educational 
     agencies to improve results for children with disabilities.
       ``(ix) Alternative programming for children 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.
       ``(x) To support the development and provision of 
     appropriate accommodations for children with disabilities, or 
     the development and provision of alternate assessments that 
     are valid and reliable for assessing the performance of 
     children with disabilities, in accordance with sections 
     1111(b) and 6111 of the Elementary and Secondary Education 
     Act of 1965.
       ``(xi) To provide technical assistance to schools and local 
     educational agencies, and direct services, including 
     supplemental educational services, to students with 
     disabilities, in schools or local educational agencies 
     identified as being in need of improvement under section 1116 
     of the Elementary and Secondary Education Act of 1965 on the 
     basis, in whole, of the assessment results of the 
     disaggregated subgroup of students with disabilities, 
     including providing professional development to special and 
     regular education teachers, that teach students with 
     disabilities, based on scientifically based research to 
     improve educational instruction, in order to improve academic 
     achievement to meet the goals in section 1111.''

       (65) The House bill allows States to reserve up to 40% of 
     its state-level funds to establish a fund for high cost 
     special education services. The Senate requires States to 
     reserve 2% of their State grant (after reserving funds for 
     administration) to establish a LEA risk pool and distribute 
     those funds to LEAs. The Senate requires the State to pay 75% 
     of the costs that exceed 4 times the national APPE for every 
     student in each LEA that applies. This amount is ratably 
     reduced if there are not sufficient funds. The Senate 
     amendment requires LEA applications to ensure that the State 
     funds do not supplant State medicaid payments for appropriate 
     services. The Senate amendment also allows pre-existing State 
     programs to override the required elements established in the 
     Senate amendment.
     HR with an amendment to read as follows:
       ``(3) Local educational agency risk pool.--
       ``(A) In general.--For the purpose of assisting local 
     educational agencies (and charter schools that are local 
     educational agencies, and consortia of local educational 
     agencies) in addressing the needs of high-need children, each 
     State shall reserve for each fiscal year 10 percent from the 
     amount of the State's reservation for state-level activities 
     under paragraph (2)(A), to--
       ``(i) establish a high-cost fund, but only during the 
     initial fiscal year of the fund;
       ``(ii) make disbursements from the high-cost fund to local 
     educational agencies in accordance with this paragraph; and
       ``(iii) support innovative and effective ways of cost-
     sharing by the State, by a local educational agency, or among 
     a consortia of local educational agencies, as determined by 
     the State in coordination with representatives from local 
     educational agencies (including charter schools that are 
     local educational agencies, and consortia of local 
     educational agencies).
       ``(B) Limitation on uses of funds.--
       ``(i) The funds used pursuant to subparagraph (A)(i) to 
     establish a high-cost fund shall not exceed five percent of 
     the reservation in the initial fiscal year of the fund.
       ``(ii) The funds used pursuant to subparagraph (A)(iii) to 
     support the innovative and effective ways of cost-sharing 
     among a consortia of local educational agencies shall be not 
     more than five percent of the reservation.
       ``(C) State plan for high-cost fund.--
       ``(i) The State educational agency shall establish a plan, 
     including the State's definition of a `high need' child with 
     a disability, which is developed in consultation with local 
     educational agencies (including charter schools that are 
     local educational agencies, and consortia of local 
     educational agencies) within 90 days of the reservation of 
     funds under this subsection.
       ``(ii) Such plan shall--

       ``(I) Establish, in coordination with representatives from 
     local educational agencies (including charter schools that 
     are local educational agencies, and consortia of local 
     educational agencies), the definition of a `high need' child 
     with a disability that, at a minimum--

       ``(aa) addresses the financial impact the specific `high 
     need' child with a disability has on that child's local 
     educational agency budget, and
       ``(bb) ensures that the cost of any such `high need' child 
     with a disability is greater than three times the average per 
     pupil expenditure (as defined in ESEA) in a local educational 
     agency during the preceding school year for an elementary or 
     secondary school student, as may be appropriate;

       ``(II) Establish eligibility criteria for the participation 
     of local educational agencies (including charter schools that 
     are local educational agencies, and consortia of local 
     educational agencies) that, at a minimum, takes into account 
     the number and percentage of `high need' children with 
     disabilities in a local educational agency;
       ``(III) Develop a funding mechanism that provides 
     distributions each fiscal year to eligible local educational 
     agencies (including charter schools that are local 
     educational agencies, and consortia of local educational 
     agencies) that meet the criteria developed by the State under 
     subclause (II); and
       ``(IV) Establish an annual schedule by which the State 
     educational agency shall make its distributions from the fund 
     each fiscal year.

       ``(iii) The State shall make its final plan publicly 
     available at least 30 days prior to the beginning of the 
     school year, including dissemination of such information on 
     the State website.
       ``(D) Disbursements from the high-cost fund.--
       ``(i) In general.--Each State educational agency shall make 
     all annual disbursements from the fund established under 
     subparagraph (A)(i) in accordance with the plan published 
     pursuant to subparagraph (C).
       ``(ii) Use of disbursements.--Each State educational agency 
     shall make annual disbursements to eligible local educational 
     agencies in accordance with its plan under (C)(ii).
       ``(iii) Appropriate costs.--The costs associated with 
     educating a high need child under clause (ii) are only those 
     costs associated with providing direct special education and 
     related services to such child that are identified in such 
     child's IEP.
       ``(E) Legal fees.--The disbursements under subparagraph (D) 
     shall not support legal fees, court costs, or other costs 
     associated with a cause of action brought on behalf of such 
     child to ensure a free appropriate public education for such 
     child.
       ``(F) Assurance of a free appropriate public education.--
     Nothing in this section shall be construed--
       ``(i) to limit or condition the right of a child with a 
     disability who is assisted under this part to receive a free 
     appropriate public education pursuant to section 612(a)(1) in 
     a least restrictive environment pursuant to section 
     612(a)(5); or
       ``(ii) to authorize a State educational agency or local 
     educational agency to establish a limit on what may be spent 
     on the education of a child with a disability.
       ``(G) Medicaid services not affected.--Disbursements 
     provided under this subsection shall not be used to pay costs 
     that otherwise would be reimbursed as medical assistance for 
     a child with a disability under the State medicaid program 
     under title XIX of the Social Security Act.
       ``(H) Special rule for risk pool and high-need assistance 
     programs in effect as of january 1, 2004.--Notwithstanding 
     the provisions of subparagraphs (A) through (G), a State may 
     use funds reserved pursuant to this paragraph for 
     implementing a placement neutral cost-sharing and 
     reimbursement program of high-need, low-incidence, 
     catastrophic, or extraordinary aid to local educational 
     agencies that provides services to students eligible under 
     this part based on eligibility criteria for such programs 
     that were created not later than January 1, 2004 and are 
     currently in operation, provided such program meets the 
     minimum definition of a `high need' child with a disability 
     in subparagraph (C)(2)(I).
       ``(I) Remaining funds.--Funds reserved under subparagraph 
     (A) in any fiscal year but not expended in that fiscal year 
     pursuant to subparagraph (D) or subparagraph (F) shall be 
     allocated to local educational agencies in the same manner as 
     funds are allocated to local educational agencies under 
     subsection (f).''

       (66) The Senate amendment allows State-level funds to be 
     used without regard to commingling or supplantation 
     requirements. See note (60), which includes identical 
     language from the House bill.
     HR with an amendment:
       Strike ``, and (3)'' and insert ``and'' before (2) in 
     paragraph (4).

       (67) The House bill establishes a list of authorized 
     activities that States may conduct with State-level funds. 
     The Senate amendment only includes House activities (A), (D), 
     (F), and (H) in note 64 and adds positive behavioral supports 
     and mental health services, use of technology, transition 
     programs, alternative programming for expelled students, and 
     support for appropriate accommodations and alternate 
     assessments.
     HR
       (68) The House bill, but not the Senate amendment, requires 
     States to use any increase in State-level funds that exceeds 
     the rate of inflation to be used to provide subgrants to LEAs 
     designated as in need of improvement due to the scores of 
     students with disabilities to improve results for students 
     with disabilities in those LEAs.
     HR
       (69) There are minor wording differences between the House 
     and Senate amendments, and the House bill includes a 
     requirement that the report include information on the 
     percentage of funds distributed by formula to LEAs.
     HR
       (70) The Senate amendment allows States to use State-level 
     funds under Part B and the 619 program to support a State 
     policy to

[[Page H9940]]

     allow children to remain in Part C instead of moving to the 
     619 program until kindergarten. The House bill does not 
     include this provision.
     HR
       (71) There are minor wording differences between the House 
     and Senate amendments, but the content is the same.
     LC
       (72) There are minor wording differences between the House 
     and Senate amendments. Note: the reference to subsection (e) 
     in (2) of the House bill should be a reference to subsection 
     (d).
     LC
       (73) There are no differences between the House bill and 
     Senate amendment.
     LC
       (74) The House bill places a cap on the amount of funds for 
     State-level activities to the FY 03 level, except that the 
     amount may increase by the rate of inflation for the purpose 
     of making subgrants to LEAs designated as in need of 
     improvement due to the assessment scores of students with 
     disabilities.
       HR with an amendment:
       Add the following language to section 611(e) as paragraph 
     (5):
       ``(5) Special rule for increased funds.--The State may use 
     funds it reserves as a result of inflationary increases under 
     section 611 (e)(1)(B) to carry out activities authorized by 
     sections 611(e)(2)(C)(i), (iii), (vii), and (viii).''
       (75) There are no differences between the House bill and 
     Senate amendment.
     LC
       (76) The House bill and the Senate amendment are the same, 
     except the House bill includes a requirement that the BIA 
     distribute 80% of its funds to BIA schools by July 1 of the 
     fiscal year and 20% of the funds by September 30 of the 
     fiscal year.
     SR
       (77) There are minor wording differences between the House 
     bill and Senate amendment, but the content is the same.
     LC
       (78) There are no significant differences between the House 
     and Senate amendments, except the House bill requires an 
     annual report from the Secretary of the Interior while the 
     Senate amendment requires a biennial report.
     HR
       (79) There are minor wording differences between the House 
     and Senate amendments but the content is the same.
     LC
       (80) There are no significant differences between the House 
     and Senate amendments, except for differences in section 
     numbers between the two bills.
     LC
       (81) There are no significant differences between the House 
     and Senate amendments, except for differences in section 
     numbers between the two bills.
     LC
       (82) The House bill and Senate amendment establish slightly 
     different patterns toward reaching the 40% goal.
     HR
       (83) There are no differences between the House bill and 
     Senate amendment.
     LC
       (84) The House bill requires State plans to ``reasonably 
     demonstrate'' that the plan meets the requirements of the 
     law. The Senate amendment requires States to ``provide 
     assurances'' that the plan meets the requirements of the law.
     HR
       (85) The House bill includes this technical language as 
     part of its structure to keep section 612(a)(12) as current 
     law. The Senate amendment replaces the entire existing law.
     LC
       (86) There are no differences between the House bill and 
     Senate amendment.
     LC
       (87) The Senate amendment exempts States from FAPE 
     requirements if the State provides services to children 
     through the part C program that are eligible for the 619 
     program. The House bill has similar language as part C.
     HR
       (88) The Senate amendment, but not the House bill, includes 
     language regarding children with disabilities who are 
     homeless or are wards of the State.
     HR
       (89) The House bill and Senate amendment have the same 
     definition of least restrictive environment. The House bill 
     requires that if a State distributes funds through a 
     mechanism based on the child's setting, such formula cannot 
     result in violations of the LRE requirements. The House bill 
     also requires States to modify funding mechanisms that do not 
     comply with that requirement. The Senate amendment prohibits 
     a funding mechanism that violates the LRE requirements and 
     requires States to revise any funding mechanism that violates 
     that requirement.
     HR
       Report language: The conferees are concerned that some 
     States continue to use funding mechanisms that provide 
     financial incentives for, and disincentives against, certain 
     placements. It is the intent of the changes to Section 
     612(a)(5)(B) to prevent State funding mechanisms from 
     affecting appropriate placement decisions for students with 
     disabilities.
       ``The law requires that each public agency shall ensure 
     that a continuum of alternative placements (instruction in 
     regular classes, special classes, special schools, home 
     instruction, and instruction in hospitals and institutions) 
     is available to meet the needs of children with disabilities 
     for special education and related services. State funding 
     mechanisms are in place to ensure funding is available to 
     support the requirements of this provision, not to provide an 
     incentive or disincentive for placement. Part B's LRE 
     principle is intended to ensure that a child with a 
     disability is served in a setting where the child can be 
     educated successfully in the least restrictive environment. 
     Through the Individual Education Plan (IEP) process the Team 
     shall make placement decisions that are individually 
     determined on the basis of each child's abilities and needs. 
     The new provisions in this section were added to prohibit 
     States from maintaining funding mechanisms that violate 
     appropriate placement decisions, not to require States to 
     change funding mechanisms that support appropriate placements 
     decisions.''

       (90) The House bill and Senate amendment are substantially 
     the same except the House bill, but not the Senate amendment, 
     requires that children with disabilities also be evaluated in 
     accordance with section 614 (c).
     SR
       (91) The House bill and Senate amendment are similar, with 
     the Senate amendment adding a clause referring to the Senate 
     language allowing a child to stay in the Part C program until 
     kindergarten, instead of moving to the Section 619 program at 
     age 3.
     HR
       (92) The House bill and Senate amendment include similar 
     requirement, except the Senate amendment requires a written 
     explanation by LEAs when they disagree with private school 
     officials, a written affirmation from private school 
     officials about consultation, and the provision of direct 
     services (to the extent practicable) private schools. Also, 
     the Senate amendment does not include the supplement, not 
     supplant language included in the House bill. The House bill 
     also contains specific sections regarding thorough child find 
     when calculating the proportionate share of Federal funds and 
     regarding services to be provided by employees of a public 
     agency or through a contract by a public agency.
     SR with an amendment to read as follows:
       ``(10) Children in private schools.--
       ``(A) Children enrolled in private schools by their 
     parents.--
       ``(i) In general.--To the extent consistent with the number 
     and location of children with disabilities in the State who 
     are enrolled by their parents in private elementary and 
     secondary schools in the school district served by a local 
     educational agency, provision is made for the participation 
     of those children in the program assisted or carried out 
     under this part by providing for such children special 
     education and related services in accordance with the 
     following requirements, unless the Secretary has arranged for 
     services to those children under subsection (f):

       ``(I) Amounts to be expended for the provision of those 
     services (including direct services to parentally-placed 
     children) by the local educational agency shall be equal to a 
     proportionate amount of Federal funds made available under 
     this part.
       ``(II) In calculating the proportionate share of Federal 
     funds, the local educational Agency, after timely and 
     meaningful consultation with representatives of private 
     schools as described in clause (iii), shall conduct a 
     thorough and complete child-find process to determine the 
     number of parentally-placed children with disabilities 
     attending private schools located in the district.
       ``(III) Such services to children with disabilities 
     parentally-placed may be provided to children with 
     disabilities on the premises of private, including religious, 
     schools, to the extent consistent with law.
       ``(IV) State and local funds may supplement and in no case 
     shall supplant the proportionate amount of Federal funds 
     required to be expended under this paragraph.
       ``(V) Each local educational agency shall maintain in its 
     records and provide to the State educational agency the 
     number of children evaluated under this paragraph, the number 
     of children determined to be children with disabilities, and 
     the number of children served under this subsection.

       ``(ii) Child-find requirement.--

       ``(I) In general.--The requirements of paragraph (3) of 
     this subsection (relating to child find) shall apply with 
     respect to children with disabilities in the State who are 
     enrolled in private, including religious, elementary and 
     secondary schools.
       ``(II) Equitable participation.--The child-find process 
     shall be designed to ensure the equitable participation of 
     parentally-placed private school children and an accurate 
     count of such children.
       ``(III) Activities.--In carrying out this clause, the local 
     educational agency, or where applicable, the State 
     educational agency, shall undertake activities similar to 
     those activities undertaken for its public school children.
       ``(IV) Cost.--The cost of carrying out this clause, 
     including individual evaluations,

[[Page H9941]]

     may not be considered in determining whether a local 
     educational agency has met its obligations under clause (i).
       ``(V) Completion period.--Such child-find process shall be 
     completed in a time period comparable to that for other 
     students attending public schools in the local educational 
     agency.

       ``(iii) Consultation.--To ensure timely and meaningful 
     consultation, a local educational agency, or where 
     appropriate, a state educational agency, shall consult with 
     private school representatives and representatives of parents 
     of parentally-placed private school children with 
     disabilities during the design and development of special 
     education and related services for these children including--

       ``(I) the child-find process and how parentally-placed 
     private school children suspected of having a disability can 
     participate equitably, including how parents, teachers, and 
     private school officials will be informed of the process;
       ``(II) the determination of the proportionate share of 
     Federal funds available to serve parentally-placed private 
     school children with disabilities under this paragraph, 
     including the determination of how those funds were 
     calculated;
       ``(III) the consultation process among the local 
     educational agency private school officials, and 
     representatives of parents of parentally-placed private 
     school children with disabilities including how such process 
     will operate throughout the school year to ensure that 
     parentally-placed children with disabilities identified 
     through the child find process can meaningfully participate 
     in special education and related services;
       ``(IV) how, where, and by whom special education and 
     related services will be provided for parentally-placed 
     private school children, including a discussion of types of 
     services, including direct services and alternate service 
     delivery mechanisms, how such services will be apportioned if 
     funds are insufficient to serve all children, and how and 
     when these decisions will be made; and
       ``(V) how, if the local educational agency disagrees with 
     the views of the private school officials on the provision of 
     services or the types of services, whether provided directly 
     or through a contract, the local educational agency shall 
     provide to the private school officials a written explanation 
     of the reasons why the local educational agency chose not to 
     provide services directly or through a contract.

       ``(iv) Written affirmation.--When timely and meaningful 
     consultation as required by this section has occurred, the 
     local educational agency shall obtain a written affirmation 
     signed by the representatives of participating private 
     schools, and if such representatives do not provide such 
     affirmation within a reasonable period of time, the local 
     educational agency shall forward the documentation of the 
     consultation process to the State educational agency.
       ``(v) Compliance.--

       ``(I) In general.--A private school official shall have the 
     right to complain to the State educational agency that the 
     local educational agency did not engage in consultation that 
     was meaningful and timely, or did not give due consideration 
     to the views of the private school official.
       ``(II) Procedure.--If the private school official wishes to 
     complain, the official shall provide the basis of the 
     noncompliance with this section by the local educational 
     agency to the State educational agency, and the local 
     educational agency shall forward the appropriate 
     documentation to the State educational agency. If the private 
     school official is dissatisfied with the decision of the 
     State educational agency, such official may complain to the 
     Secretary by providing the basis of the noncompliance with 
     this section by the local educational agency to the 
     Secretary, and the State educational agency shall forward the 
     appropriate documentation to the Secretary.

       ``(vi) Provision of equitable services.--

       ``(I) Directly or through contracts. The provision of 
     services under this Act shall be provided--

       ``(aa) by employees of a public agency; or
       ``(bb) through contract by the public agency with an 
     individual, association, agency, organization, or other 
     entity.

       ``(II) Secular, Neutral, Nonideological.--Special education 
     and related services provided to children with disabilities 
     attending private schools, including materials and equipment, 
     shall be secular, neutral, and nonideological.

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

       ``(I) if--

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

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

       ``(iv) Exception.--Notwithstanding the notice requirement 
     in clause (iii)(I), the cost of reimbursement--

       ``(I) shall not be reduced or denied for failure to provide 
     such notice if--

       ``(aa) the school prevented the parent from providing such 
     notice; or
       ``(bb) the parents had not received notice, pursuant to 
     section 615, of the notice requirement in clause (iii)(I); or
       ``(cc) compliance with clause (iii)(I) would likely result 
     in physical harm to the child; and

       ``(II) may, in the discretion of a court or a hearing 
     officer, not be reduced or denied for failure to provide such 
     notice if--

       ``(aa) the parent is illiterate or cannot write in English; 
     or
       ``(bb) compliance with clause (iii)(I) would likely result 
     in serious emotional harm to the child.''

       (93) There are no differences between the House bill and 
     Senate amendment.
     SR with an amendment:
       Add an (11)(A)(iii):
       ``(iii) in carrying out this part with respect to homeless 
     children and youth, the requirements of subtitle B of the 
     McKinney-Vento Homeless Assistance Act are met.''

       (94) The House bill did not make any changes to current law 
     in this section. The Senate amendment includes minor 
     technical changes to current law regarding authority to claim 
     reimbursement, methods of determining responsibility, and 
     updated section numbers.
     HR
       (95) The House bill includes this technical language as 
     part of its structure to keep section 612(a)(12) as current 
     law. The Senate amendment replaces the entire existing law.
     LC
       (96) There are no differences between the House bill and 
     Senate amendment.
     LC
       (97) The House bill requires the State plan to include 
     standards to ensure that all special education teachers are 
     highly qualified in core academic subjects; that standards 
     for all related services personnel and paraprofessionals are 
     set to ensure the providers are qualified to provide 
     services, and that the SEA develops innovative strategies for 
     professional development. The Senate amendment requires all 
     special education teachers to be highly qualified by the end 
     of the 2006-2007 school year, requires States to inform 
     parents about the qualifications of the teachers, requires 
     States to adopt policies to recruit, train, and retain highly 
     qualified personnel, and establishes that those requirements 
     do not create a right to action.

[[Page H9942]]

     HR with an amendment:
       Strike references to ``standards'' and replace with 
     ``qualifications'' throughout and strike ``not later than the 
     end of the 2006-2007 school year.'' in (C)(i) and in 
     (ii)(II).

       Report language: ``Conferees are cognizant of the 
     difficulties that some local educational agencies have 
     experienced in recruiting and retaining qualified related 
     services providers and have provided greater flexibility to 
     State educational agencies to establish appropriate personnel 
     standards.
       ``Conferees are concerned that language in current law 
     regarding the qualifications of related services providers 
     has established an unreasonable standard for State 
     educational agencies to meet, and as a result, has led to a 
     shortage of the availability of related services for students 
     with disabilities.
       ``Conferees intend for State educational agencies to 
     establish rigorous qualifications for related services 
     providers to ensure that students with disabilities receive 
     the appropriate quality and quantity of care. State 
     educational agencies are encouraged to consult with local 
     educational agencies, other State agencies, the disability 
     community, and professional organizations to determine the 
     appropriate qualifications for related service providers, 
     including the use of consultative, supervisory, and 
     collaborative models to ensure that students with 
     disabilities receive the services described in their 
     individual IEP's.''

       (98) The House bill and Senate amendment are the same 
     except the Senate amendment adds a requirement that States 
     establish performance goals for graduation rates.
     HR with an amendment:
       Insert ``which may include elements of the reports required 
     under section 1111(h) of the Elementary and Secondary 
     Education act of 1965.'' at the end of subparagraph (C).

       (99) The House bill and Senate amendment include similar 
     requirements except the Senate amendment adds requirements 
     for alternate assessments, reporting requirements relating to 
     students with disabilities taking alternate assessments, and 
     requirements regarding universal design. Both the House bill 
     and Senate amendment require that alternate assessments have 
     been developed and conducted.
     HR with an amendment:
       Strike ``accountability systems'' throughout.

       (100) The House bill requires States to develop voluntary 
     binding arbitration system. The Senate amendment does not 
     include this requirement.
     HR
       (101) There are no significant differences between the 
     House bill and Senate amendment.
     HR/LC
       (102) There are no significant differences between the 
     House bill and Senate amendment.
     HR/LC with an amendment:
       Strike paragraph (20) and insert the following, and 
     renumber subsequent paragraphs:
       ``(20) Rule of construction.--In complying with paragraphs 
     612(a)(18) and (19), a state may not use funds paid to it 
     under this part to satisfy state-law mandated funding 
     obligations for local educational agencies, including funding 
     based on student attendance or enrollment, or inflation.''

       (103) There are no significant differences between the 
     House bill and Senate amendment.
     HR/LC
       (104) The House bill requires the panel to be comprised of 
     a majority of individuals with disabilities or parents of 
     children with disabilities ages birth through 26. The Senate 
     amendment requires the panel to be comprised of a majority of 
     individuals with disabilities ages birth through 26 or 
     parents of children with disabilities ages birth through 26.
       The Senate amendment, but not the House bill, adds 
     requirements of the types of parents that must be on the 
     panel.
       The Senate amendment, but not the House bill, adds 
     additional parties that must be represented on the panel.
     SR with an amendment:
       Strike clause (v) from the House bill and insert clause (v) 
     from the Senate amendment. Insert ``(xi) a representative 
     from the State child welfare agency responsible for foster 
     care.''

       (105) The House bill, but not the Senate amendment, 
     requires suspension and expulsion rates to be disaggregated 
     by race and ethnicity.
     SR
       (106) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
       (107) The House bill and Senate amendment include similar 
     language requiring States to adopt the national instructional 
     materials accessibility standard and requiring States to 
     modify their contracts to obtain accessible materials.
       The House bill, but not the Senate amendment, has a 
     definition of instructional materials.
       The Senate amendment, not the House bill, includes a 
     requirement for the establishment of a national center for 
     instructional materials.
     HR with an amendment as follows:
       Strike ``675(a)'' and insert ``674(d)(3)(A)'' in 
     subparagraph (A).
     HR with an amendment as follows:
       Insert subparagraph (B) to read as follows, and redesignate 
     the other paragraphs accordingly:
       ``(B) Rights of state educational agency.--Nothing in this 
     paragraph shall be construed to require any State educational 
     agency to participate in the National Instructional Materials 
     Access Center. If a State educational agency chooses not to 
     participate, such agency shall provide an assurance to the 
     Secretary that it will provide instructional materials to 
     blind persons or other persons with print disabilities in a 
     timely manner.''
     HR with an amendment to strike the new (C) and insert the 
         following:
       ``(C) Preparation and delivery of files.--If a State 
     educational agency chooses to participate in the National 
     Instructional Materials Access Center, not later than 2 years 
     after the date of enactment [of the Individuals with 
     Disabilities Education Improvement Act of 2004-not sure we 
     need since we have an enactment clause?], such agency, as 
     part of any print instructional materials adoption process, 
     procurement contract, or other practice or instrument used 
     for purchase of print instructional materials, enters into a 
     written contract with the publisher of the print 
     instructional materials to--
       ``(i) prepare, and on or before delivery of the print 
     instructional materials, provide to the National 
     Instructional Materials Access Center, established pursuant 
     to section 674(d), electronic files containing the contents 
     of the print instructional materials using the Instructional 
     Materials Accessibility Standard; or
       ``(ii) purchase instructional materials from a publisher 
     that are produced in or may be rendered in the specialized 
     formats described in section 674(d)(3)(C).''

       (108) The House bill, but not the Senate amendment, 
     requires States to adopt policies to prevent 
     overidentification by race or ethnicity.
     SR with an amendment:
       Insert ``(c)'' after ``618'' and strike ``the 
     identification of children as''.

       (109) The House bill, but not the Senate amendment, 
     requires States to adopt policies regarding psychotropic 
     medication.
     HR with an amendment to read as follows:
       ``(25) Prohibition on mandatory medication.
       ``(a) In General.--The State educational agency shall 
     prohibit State and local educational personnel from requiring 
     a child to obtain a prescription for substances covered by 
     the Controlled Substances Act as a condition of attending 
     school, receiving an evaluation under section 614 (a) and (c) 
     or receiving services.
       ``(b) Rule of construction.--Nothing in subsection (a) 
     shall be construed to create a Federal prohibition against 
     teachers and other school personnel consulting or sharing 
     classroom-based observations with parents or guardians 
     regarding a student's academic and functional performance, or 
     behavior in the classroom or school, or regarding the need 
     for evaluation for special education or related services 
     under section 612(a)(3).''

       (110) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
       (111) There are no differences between the House bill and 
     Senate amendment.
     HR/LC
       (112) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
       (113) There are no significant differences between the 
     House bill and Senate amendment.
     LC
       (114) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
       (115) There are no differences between the House bill and 
     Senate amendment.
     LC
       (116) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     LC
       (117) There are no differences between the House bill and 
     Senate amendment.
     LC
       (118) The House bill makes no changes to current law in 
     this section. The Senate amendment largely follows current 
     law, except that the Senate amendment makes changes to 
     require the Secretary to determine whether the State has 
     failed or is unwilling to provide for the equitable 
     participation of private school students.
     HR
       (119) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     LC
       (120) The House bill requires the LEA to ``reasonably 
     demonstrate'' that the LEA

[[Page H9943]]

     meets the conditions, while the Senate amendment requires the 
     LEA to ``provide assurances'' that the LEA meets the 
     conditions.
     HR
       (121) There are no differences between the House bill and 
     Senate amendment.
     LC
       (122) The House bill allows LEAs to treat 20% of the 
     increase from one year to the next as local funds to be used 
     for educational programs authorized under ESEA, unless the 
     SEA determines that the LEA has not provided FAPE to its 
     students with disabilities. The Senate amendment allows LEAs 
     to treat 8% of their funds as local funds each year. The 
     Senate amendment allows LEAs to treat not more than 40% of 
     their funds as local funds in any year that the maximum 
     amount for State grants is provided under 611. The Senate 
     amendment requires any LEA that exercises this authority to 
     include that in its calculation of funds reserved for 
     prereferral services.
     SR with an amendment to read as follows:
       ``(C) Adjustment to local fiscal effort in certain fiscal 
     years.--
       ``(i) Amounts in excess.--Notwithstanding clauses (ii) and 
     (iii) of subparagraph (A), for any fiscal year for which the 
     allocation received by a local educational agency under 
     section 611(f) exceeds the amount the local educational 
     agency received for the previous fiscal year, the local 
     educational agency may reduce the level of expenditures 
     otherwise required by subparagraph (A)(iii) by not more than 
     50 percent of the amount of such excess.
       ``(ii) Use of amounts to carry out activities under esea.--
     If a local educational agency exercises the authority under 
     clause (i), the agency shall use an amount of local funds 
     equal to the reduction in expenditures under clause (i) to 
     carry out activities authorized under the Elementary and 
     Secondary Education Act of 1965.
       ``(iii) State prohibition.--Notwithstanding clause (i), if 
     a State educational agency determines that a local 
     educational agency is unable to establish and maintain 
     programs of free appropriate public education that meet the 
     requirements of subsection (a) or the State educational 
     agency has taken action against the local educational agency 
     under section 616, the State educational agency shall 
     prohibit the local educational agency from reducing the level 
     of expenditures under clause (i) for that fiscal year.
       ``(iv) Special rule.--The amount of funds expended by a 
     local educational agency under subsection (f) shall count 
     toward the maximum amount of expenditures such local 
     educational agency may reduce under clause (i).''

       Report language: ``The Conferees intend for school 
     districts to have meaningful flexibility to use local funds 
     that are generated from their reduction in the maintenance of 
     effort. The Conferees do not intend that school districts 
     have to use these local funds for programs exclusively 
     authorized under the Elementary and Secondary Act of 1965. 
     The conferees recognize that most state and local education 
     programs are consistent with the broad flexibility that is 
     provided in Sec 5131 of the Elementary and Secondary 
     Education Act of 1965.
       ``The Conferees intend that in any fiscal year in which the 
     local educational agency or State educational agency reduces 
     expenditures pursuant to section 613(a)(2)(C) or section 
     613(j), the reduced level of effort shall be considered the 
     new base for purposes of determining the required level of 
     fiscal effort for the succeeding year.''
       (123) The Senate amendment, but not the House bill, allows 
     these Federal funds to be treated as local funds in 
     calculating local shares under Medicaid.
       The Senate amendment also requires LEAs to report to SEAs 
     on the amount of funds treated as local funds each year.
     SR
       (124) The House bill and Senate amendment refer to 
     different sections of ESEA regarding programs of personnel 
     development.
     HR
       (125) The House bill and Senate amendment include similar 
     allowable uses of funds for LEAs, except the House bill also 
     allows funds to be used for high cost reserve funds and 
     supplemental services provided under ESEA.
     HR with an amendment:
       Insert subparagraph (C) from House bill.
       (126) The House bill and Senate amendment are essentially 
     the same.
     HR with an amendment:
       Rewrite subparagraph (B) to read as follows:
       ``(B) provides funds under this part to those charter 
     schools on the same basis as it provides those funds to its 
     other public schools, including proportional distribution 
     based on relative enrollment of children with disabilities, 
     and at the same time as such agency distributes other Federal 
     funds to its other schools, consistent with State's charter 
     school law.''

       (127) The House bill and Senate amendment include a similar 
     requirement requiring LEAs to use the national instructional 
     materials accessibility standard when purchasing 
     instructional materials.
     HR with an amendment to read as follows:
       ``(6) Instructional Materials.--``(A) Purchase.--Not later 
     than 2 years after the date of enactment of the Individuals 
     with Disabilities Education Improvement Act of 2004, a local 
     educational agency that chooses to participate in the 
     National Instructional Materials Access Center, such agency, 
     when purchasing print instructional materials, acquires these 
     instructional materials in the same manner as a State 
     educational agency described in section 612(a)(22).
       (B) Rights of local educational agency.--Nothing in this 
     paragraph shall be construed to require any local educational 
     agency to participate in the National Instructional Materials 
     Access Center. If a local educational agency chooses not to 
     participate, such agency shall provide an assurance to the 
     State educational agency that it will provide instructional 
     materials to blind persons or other persons with print 
     disabilities in a timely manner.''

       (128) There are no significant differences between the 
     House and Senate amendments.
     LC
       (129) There are no significant differences between the 
     House bill and Senate amendment.
     LC
       (130) There are no differences between the House bill and 
     Senate amendment.
     HR/LC
       (131) There are no differences between the House bill and 
     Senate amendment.
     LC
       (132) There are no differences between the House bill and 
     Senate amendment.
     LC
       (133) There are no differences between the House bill and 
     Senate amendment.
     LC
       (134) Using different names and different methods of 
     identifying children as eligible for these activities, both 
     the House bill and Senate amendment allow LEAs to use up to 
     15% of their funds to provide services to students before 
     they are identified with a disability.
     HR with an amendment:
       Strike ``who do not meet the definition of a child with a 
     disability under section 602(3)'' and insert ``who have not 
     been identified as needing special education or related 
     services''.

       (135) The House bill and Senate amendment allow similar 
     activities such as professional development evaluations, and 
     behavioral supports. The Senate amendment also allows LEAs to 
     use funds to develop and implement interagency financing 
     structures.
     HR with an amendment:
       Strike paragraph (C)

       (136) There are no differences between the House bill and 
     Senate amendment.
     LC
       (137) The House bill and Senate amendment require similar 
     reporting requirements, with the House bill adding a 
     requirement that LEAs report on children served for two 
     years.
     SR
       Report language: ``The Conferees want to ensure that 
     information is provided on the impact that the early 
     intervening services have on children to determine if these 
     activities have reduced the numbers of referrals to special 
     education. Local educational agencies are required to report 
     on the number of students who are served under this activity 
     for two years to determine if the provision of services under 
     this activity reduces the number of overall referrals to 
     special education and related services. The Conferees intend 
     that the two-year period apply to the two years after the 
     child has received services under this activity.''

       (138) The House bill and Senate amendment allow funds used 
     in the section to be aligned with ESEA activities so long as 
     the IDEA funds supplement, but not supplant, other Federal 
     funds for those activities.
     HR with an amendment:
       Strike ``Certain Projects Under'' from heading.

       (139) The House bill does not include this GAO study.
     SR
       (140) There are no differences between the House bill and 
     Senate amendment.
     LC
       (141) There are no differences between the House bill and 
     Senate amendment.
     LC
       (142) The Senate amendment, but not the House bill, gives 
     States that are the providers of special education or pay for 
     80% or more of the non-federal share of special education 
     costs, the same options that LEAs have to treat a certain 
     portion of its IDEA funds if the State adheres to the 
     requirements of the Act.
     SR with an amendment to read as follows:
       ``(j) State Agency Flexibility.--
       ``(1) Adjustment to state fiscal effort in certain fiscal 
     years.--For any fiscal year for which the allotment received 
     by a State under section 611 exceeds the amount the State 
     received for the previous fiscal year and if the State in 
     school year 2003-2004 or any subsequent school year pays or 
     reimburses all local educational agencies within the State 
     from State revenue 100 percent of the non-Federal share of 
     the costs of special education and related services, the 
     State

[[Page H9944]]

     educational agency, notwithstanding paragraphs (17) and (18) 
     of section 612(a) and section 612(b), may reduce the level of 
     expenditures from State sources for the education of children 
     with disabilities by not more than 50 percent of the amount 
     of such excess.
       ``(2) Prohibition.--Notwithstanding paragraph (1), if the 
     Secretary determines that a State educational agency is 
     unable to establish, maintain, or oversee programs of free 
     appropriate public education that meet the requirements of 
     this part, or that the State needs assistance, intervention, 
     or substantial intervention under section 616(d)(2)(A), the 
     Secretary shall prohibit the State educational agency from 
     exercising the authority in paragraph (1).
       ``(3) Education activities.--If a State educational agency 
     exercises the authority under paragraph (1), the agency shall 
     use funds from State sources, in an amount equal to the 
     amount of the reduction under paragraph (1), to support 
     activities authorized under the Elementary and Secondary 
     Education Act of 1965 or to support need based student or 
     teacher higher education programs.
       ``(4) Report.--For each fiscal year for which a State 
     educational agency exercises the authority under paragraph 
     (1), the State educational agency shall report to the 
     Secretary the amount of expenditures reduced pursuant to such 
     paragraph and the activities that were funded pursuant to 
     paragraph (3).
       ``(5) Limitation.--Notwithstanding paragraph (1), a State 
     educational agency may not reduce the level of expenditures 
     described in paragraph (1) if any local educational agency in 
     the State would, as a result of such reduction, receive less 
     than 100 percent of the amount necessary to ensure that all 
     children with disabilities served by the local educational 
     agency receive a free appropriate public education from the 
     combination of Federal funds received under this title and 
     State funds received from the State educational agency.''

       (143) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR
       (144) The House bill and Senate amendment are similar, with 
     the House bill adding parental consent in the heading.
     SR
       (145) The House bill and Senate amendment have similar 
     language regarding initial evaluations, with the Senate 
     amendment requiring that such evaluations take place within 
     60 days unless the State has an existing established time 
     frame.
     HR with an amendment to read as follows:
       ``(C) Procedures.--
       ``(i) In general.--Such initial evaluation shall consist of 
     procedures--

       ``(I) to determine whether a child is a child with a 
     disability (as defined in section 602(3)) within 60 days of 
     receiving parental consent for the evaluation, or, if the 
     State establishes a timeframe within which the evaluation 
     must be conducted, within such timeframe; and
       ``(II) to determine the educational needs of such child.

       ``(ii) Exception.--The relevant timeframe in subparagraph 
     (i)(I) shall not apply to a local educational agency if--

       ``(I) a child enrolls at a local educational agency after 
     the relevant timeframe in subparagraph (i)(I) has begun and 
     prior to a determination by the child's previous local 
     educational agency as to whether a child is a child with a 
     disability (as defined in section 602(3)), provided that the 
     local educational agency is making sufficient progress to 
     ensure a prompt completion of the evaluation, and the parent 
     and local educational agency agree to a specific time when 
     the evaluation will be completed; or
       ``(II) the parent of a child repeatedly fails or refuses to 
     produce the child for the evaluation.''

       (146a) The House bill provides guidance to parents and LEAs 
     if the parent refuses consent for evaluation or initial 
     services. The Senate amendment provides that the LEA is not 
     in violation of FAPE if the parent refuses services.
     SR with an amendment to read as follows:
       ``(ii) Absence of consent.--

       ``(I) For initial evaluation.--If the parent of such child 
     does not provide consent for an initial evaluation under 
     clause (i)(I), or the parent fails to respond to a request to 
     provide the consent, the local educational agency may pursue 
     the initial evaluation of the child by utilizing the 
     procedures described in section 615, except to the extent 
     inconsistent with State law relating to such parental 
     consent.
       ``(II) For services.--If the parent of such child refuses 
     to consent to services under clause (i)(II), the local 
     educational agency shall not provide special education and 
     related services to the child by utilizing the procedures 
     described in section 615.
       ``(III) Effect on agency obligations.--If the parent of a 
     child refuses to consent to the receipt of special education 
     and related services, or the parent fails to respond to a 
     request to provide the consent--

       ``(aa) the local educational agency shall not be considered 
     to be in violation of the requirement to make available a 
     free appropriate public education to the child for the 
     failure to provide the special education and related services 
     for which the local educational agency requests such consent; 
     and
       ``(bb) the local educational agency shall not be required 
     to convene an IEP meeting or develop an IEP under this 
     section for the child for services for which the local 
     educational agency requests such consent.''

       (146b) The Senate amendment, but not the House bill, allows 
     the school district to not seek parental consent for wards of 
     the State if consent has been given by an appropriate 
     official.
     SR with an amendment to read as follows:
       ``(iv) Exception for Wards of the State.--If the child is a 
     ward of the state and is not residing with the child's 
     parent, the agency shall make reasonable efforts to obtain 
     the informed consent from the parents, as defined in section 
     602(22), of a child for an initial evaluation to determine 
     whether the child is a child with a disability. In cases 
     where--

       ``(I) despite reasonable efforts to do so, the agency 
     cannot discover the whereabouts of the parents of such child;
       ``(II) the rights of the parents have been terminated in 
     accordance with State law; or
       ``(III) the rights of the parents to make educational 
     decisions have been subrogated by a judge in accordance with 
     State law and consent has been given by an individual 
     appointed by the judge to represent the child

     the agency shall not be required to obtain informed consent 
     from the parents of a child for an initial evaluation to 
     determine whether the child is a child with a disability.''
       Report language: ``The conferees intend that in the case of 
     children who are wards of the State, consent may be provided 
     by individuals legally responsible for the child's welfare or 
     appointed by the judge to protect the rights of the child.''

       (147) The House bill, but not the Senate amendment, 
     provides that the screening of a child by a teacher or 
     specialist shall not be considered an evaluation.
     SR
       (148) The House bill and Senate amendment have similar 
     language regarding reevaluations, except the Senate amendment 
     also allows that related services needs to factor in to the 
     need for evaluation.
     HR
       (149) There are no differences between the House bill and 
     Senate amendment.
     HR
       (150) The House bill and Senate amendment have similar 
     requirements regarding the assessments used for evaluations. 
     The House bill requires multiple up-to-date measures, while 
     the Senate amendment requires a variety of assessment tools 
     and strategies.
       The Senate amendment also requires that the LEA not use any 
     single procedure, measure or assessment as the sole criteria, 
     while the House bill requires that the LEA not use any single 
     measure or assessment.
     HR with an amendment:
       Strike ``procedure'' in 2(B).
       (151) The House bill and Senate amendment have similar 
     requirements with the House bill focusing on ``assessments'' 
     and the Senate amendment focusing on ``tests''.
       The Senate amendment, but not the House bill, adds 
     additional requirements for homeless children, wards of the 
     State, and military children.
     HR with an amendment:
       Strike ``tests'' and insert ``assessments'' throughout.
       Strike (D) and insert a new (D) to read as follows:
       ``(D) assessments of children with disabilities who 
     transfer from 1 school district to another school district in 
     the same academic year, are coordinated with such children's 
     prior and subsequent schools as necessary and as 
     expeditiously as possible to ensure prompt completion of full 
     evaluations.''
       Report language: ``The Conferees recognize that the high 
     mobility rates of some children, including homeless children 
     and youth and children and youth in the custody of a state 
     child welfare agency, may cause delays in the assessment 
     process and in the provision of a free appropriate public 
     education. In order to minimize such delays, the Conferees 
     intend that local education agencies ensure that assessments 
     for these children and youth be completed expeditiously, 
     taking into consideration the date on which such children and 
     youth were first referred for assessment in any local 
     educational agency. Such assessments shall be made in 
     collaboration with parents (including foster parents) and, 
     where applicable, surrogate parents, homeless liaisons 
     designated under Section 723(g)(1)(j)(ii) of the McKinney-
     Vento Homeless Assistance Act, court appointed special 
     advocates, a guardian ad litem, or a judge.''

       (152) The House bill and Senate amendment have similar 
     language except the House bill adds the requirement that the 
     evaluation team and the parents determine the educational 
     needs of the child.
     SR
       Report language: ``Conferees intend the evaluation process 
     for determining eligibility of a child under this Act to be a 
     comprehensive process that determines whether the child has a 
     disability, and as a result of that disability, whether the 
     child has a need for special education and related services. 
     As part of the evaluation process, conferees expect the 
     multi-disciplinary evaluation team to address the educational 
     needs of the child in order to fully inform the decisions 
     made

[[Page H9945]]

     by the IEP Team when developing the educational components of 
     the child's IEP. Conferees expect the IEP Team to 
     independently review any determinations made by the 
     evaluation team, and that the IEP Team will utilize the 
     information gathered during the evaluation to appropriately 
     inform the development of the IEP for the child.''
       (153) The House bill and Senate amendment have the similar 
     language except the House bill expands on the definition of 
     reading by referring to ESEA definition of scientifically 
     based reading practices.
     SR with an amendment:
       Strike (A) and insert a new (A) to read as follows:
       ``(A) lack of appropriate instruction in reading, including 
     in the essential components of reading as defined in Sec. 
     1208(3) of ESEA of 1965.''

       (154) The Senate amendment, but not the House bill, 
     requires that the determination of the diagnosis of specific 
     learning disability falls under the evaluation procedures.
     HR
       (156) The House bill specifies that classroom-based 
     assessments should be local or State assessments and requires 
     the evaluation to determine whether the child continues to 
     have educational needs based on the child's academic 
     achievement. The Senate amendment requires the reevaluation 
     to determine the particular category of disability.
     SR with an amendment:
       Insert comma before ``local'' in (c)(1)(A).
       (157) The House bill and Senate amendment have similar 
     language, except for the difference in referring to 
     assessments in the House bill and tests in the Senate 
     amendment, and the inclusion of procedures in the Senate 
     amendment.
     SR
       (158) There are no differences between the House bill and 
     Senate amendment.
     LC
       (159) The House bill and Senate amendment have similar 
     language, except for the House bill requiring the evaluation 
     to determine the educational need of the child.
     SR
       (160) The House bill requires a reevaluation prior to 
     graduation and before determining the child no longer has a 
     disability only if the IEP Team is not in agreement regarding 
     that decision. The Senate amendment requires a reevaluation 
     prior to determining the child no longer has a disability. 
     The Senate amendment requires the LEA to provide a summary of 
     the child's performance to a student that is graduating or 
     exceeding the age eligibility under State law.
     HR
       (161) The House bill and Senate amendment have similar 
     language except the Senate amendment also requires functional 
     performance to be part of the present levels of performance.
     HR
       (162) The House bill establishes requirements for the 
     inclusion of benchmarks or short-term objectives in the 
     child's IEP for students taking alternate assessments aligned 
     to alternate standards.
     SR with an amendment:
       Strike (d)(1)(A)(I)(cc) and replace with new 
     (d)(1)(A)(I)(cc) to read as follows: ``for children with 
     disabilities who take alternate assessments aligned to 
     alternate achievement standards, a description of benchmarks 
     or short-term objectives.''

       (163) The House bill and Senate amendment include similar 
     language regarding annual goals, with the Senate amendment 
     also requiring that the IEP include quarterly reporting on 
     progress towards those annual goals. The House bill includes 
     a regular reporting requirement in (VII), see note 166.
     HR
       (164) The House bill and Senate amendment have similar 
     requirements, with the House bill including a requirement 
     that related services be based on peer-reviewed research to 
     the extent practicable.
     SR
       (165) The House bill requires the IEP team to explain why 
     the regular assessment is not appropriate and how the child 
     will be assessed. The Senate amendment requires the IEP team 
     to explain why the child cannot participate in the regular 
     assessment and why the alternate assessment is appropriate.
     HR
       (166) The House bill requires the IEP team to plan for 
     transition at age 14 and implement a transition plan by age 
     16. The Senate amendment requires all transition planning and 
     services to start at age 14.
     HR with an amendment:
       Strike ``14'' and insert ``16''.

       (167) The House bill requires the IEP to report progress 
     toward the annual goals in the same frequency as LEAs report 
     progress on non-disabled students. Senate has similar 
     requirement in earlier provision (see note 163).
     HR
       (168) There are no significant differences between the 
     House and Senate amendments.
     HR
       (169) There are no differences between the House bill and 
     Senate amendment.
     LC
       (170) Both the House bill and Senate amendment require a 
     regular education teacher to be on the IEP team, but the 
     House bill, and not the Senate amendment, allows the regular 
     education teacher flexibility in which parts of the meetings 
     they attend. The House bill also allows one regular education 
     teacher to serve as a representative if the child has 
     multiple regular education teachers. See note 172 for similar 
     Senate provision.
     HR
       (171) The House bill refers to the general education 
     curriculum while the Senate amendment refers to the general 
     curriculum.
       The Senate amendment, but not the House bill, specifies 
     that a child who is a ward of the State may have an 
     appropriate official at the IEP Team meeting.
     SR
       (172) The Senate amendment allows an IEP team member 
     flexibility in which parts of the meetings they attend so 
     long as the parent and LEA agree and so long as the excused 
     member submits input prior to the IEP meeting. See note 170 
     and 177 for similar House provision.
     HR with an amendment:
       Insert ``to the IEP team'' after ``submits'' in 
     (C)(ii)(II).
     HR with an amendment:
       Strike ``that member,'' in (C)(i) and (C)(ii)(I), and the 
     ``,'' after ``parent'' in (C)(ii)(I), and insert ``in writing 
     to the parent and IEP team'' after ``input'' in (C)(ii)(II).
     HR with an amendment:
       Insert (D) to read as follows:
       ``(D) IEP Team Transition.--In the case of a child who was 
     previously served under Part C, an invitation to the initial 
     IEP meeting to the Part C service coordinator or other 
     representatives of the Part C system to assist with the 
     smooth transition of services.''

       Report language: ``The Conferees recognize that ensuring 
     that a smooth transition from the Part C system to the 
     Preschool Program or to school is vital for a child's 
     educational success. It is the Conferees' intent that during 
     the initial IEP meeting for a child transferring from the 
     Part C program the types of services the child received as 
     part of the IFSP are discussed. The Conferees understand that 
     services provided through the Part B program may differ in 
     frequency, duration, and environment, however, the IEP Team 
     should explain the changes in services in the initial IEP 
     meeting. The Conferees do not intend that a State or district 
     reduce any service a child would be otherwise eligible for 
     under Part B.''

       (173) The House bill, but not the Senate amendment, 
     requires the IEP team to consider the IFSP when developing an 
     IEP.
       The Senate amendment, but not the House bill, requires that 
     IEPs transfer with a child from one district to another, or 
     State to State.
     SR with an amendment:
       Insert (C) to read as follows:
       ``(C) Program for children who transfer school districts.--
       ``(i) In general.--

       ``(I) In the case of a child with a disability who 
     transfers school districts within the same academic year, who 
     enrolls in a new school and who had an IEP that was in effect 
     in the same State, the local educational agency shall provide 
     such child with a free appropriate public education, 
     including services comparable to those described in the 
     previously held IEP, in consultation with the parents until 
     such time as the local educational agency adopts the 
     previously held IEP or develops, adopts, and implements a new 
     IEP that is consistent with Federal and State law.
       ``(II) In the case of a child with a disability who 
     transfers school districts within the same academic year, who 
     enrolls in a new school and who had an IEP that was in effect 
     in another State, the local educational agency shall provide 
     such child with a free appropriate public education, 
     including services comparable to those described in the 
     previously held IEP, in consultation with the parents until 
     such time as the local educational agency conducts an 
     evaluation pursuant to section 614(a)(1), if determined to be 
     necessary by such agency, and develops a new IEP, if 
     appropriate, that is consistent with Federal and State law.

       ``(ii) Transmittal of records.--To facilitate the 
     transition for a child described in clause (i)--

       ``(I) the new school in which the child enrolls shall take 
     reasonable steps to promptly obtain the child's records, 
     including the IEP and supporting documents and any other 
     records relating to the provision of special education or 
     related services to the child, from the previous school in 
     which the child was enrolled pursuant to 34 CFR 99.31(a)(2), 
     and
       ``(II) the previous school in which the child was enrolled 
     shall take reasonable steps to promptly respond to such 
     request from the new school.''

       (174) The House bill and Senate amendment have similar 
     language, in different order, and the Senate amendment adds a 
     requirement that the functional needs of the child are 
     considered.
     HR
       Report language: ``The Conferees understand that the 
     development of a child's IEP involves many considerations and 
     decisions on how best to create an education program that 
     serves the needs of the individual child. The Conferees 
     intend that the uniqueness of

[[Page H9946]]

     each child help guide these decisions, including the child's 
     strengths, characteristics, and background when developing 
     the IEP.''

       (175) The Senate amendment, but not the House bill, 
     requires that IEPs provide behavioral interventions for 
     children whose behavior impedes their own learning or that of 
     others. The Senate amendment also requires the IEP team to 
     consider a larger list of services for blind students.
     SR
       (176) The House bill, but not the Senate amendment, allows 
     for the possibility that the regular education teacher may 
     not be part of the IEP team if appropriately determined.
     HR
       (177) The House bill allows an IEP team member flexibility 
     in which parts of the meetings they attend so long as the 
     parent and LEA agree and so long as the excused member 
     submits written input prior to the IEP meeting. See note 172 
     for similar Senate provision.
     HR
       (178) The House bill encourages consolidation of IEP 
     meetings while the Senate amendment encourages consolidation 
     of reevaluations with the IEP Team meeting.
     HR with an amendment:
       Strike (E) and insert new (E) to read as follows:
       ``(E) Consolidation of iep team meetings.--To the extent 
     possible, the local educational agency shall encourage the 
     consolidation of reevaluation meetings for the child and 
     other IEP Team meetings for the child.''

       (179) The House bill, but not the Senate amendment, 
     specifies that changes to the IEP can be done by amendment, 
     instead of rewriting the entire IEP.
     SR with an amendment:
       Insert ``Upon request, a parent shall be provided an 
     executed copy of the IEP.'' at the end of subparagraph (G).

       (180) The House bill, but not the Senate amendment, allows 
     for the possibility that the regular education teacher may 
     not be part of the IEP team if appropriately determined.
     HR
       (181) Both the House bill and the Senate amendment allow 
     the LEA to offer to parents the ability to develop a 
     comprehensive 3-year IEP, if the parents choose to develop 
     such an IEP. The House bill allows this to be done for all 
     children that receive special education. The Senate amendment 
     restricts this option to students age 18 that stay within the 
     educational system.
     SR with an amendment to read as follows:
       ``(5) Multi-year iep demonstration.--
       ``(A) Pilot program.--
       ``(i) Purpose.--The purpose of this subsection is to 
     provide an opportunity for States to allow parents and local 
     educational agencies the opportunity for long-term planning 
     by offering the option of developing a comprehensive multi-
     year IEP, not to exceed 3 years, that is designed to coincide 
     with the natural transition points for the child.
       ``(ii) Authorization.--In order to carry out the purpose of 
     this subsection, the Secretary is authorized to approve not 
     more than 15 States based on proposals submitted by States to 
     allow parents and local educational agencies the opportunity 
     for long-term planning by offering the option of developing a 
     comprehensive multi-year IEP, not to exceed 3 years, that is 
     designed to coincide with the natural transition points for 
     the child.
       ``(iii) Proposal.--

       ``(I) In general.--A State desiring to participate in the 
     program under this subsection shall submit a proposal to the 
     Secretary at such time and in such manner as the Secretary 
     may reasonably require.
       ``(II) Content.--The proposal shall include--

       ``(aa) assurances that the parent must consent to the 
     option of developing a comprehensive multi-year IEP;
       ``(bb) a list of required elements for each multi-year IEP, 
     including--
       ``(AA) measurable goals pursuant to paragraph 
     (1)(A)(i)(II), coinciding with natural transition points for 
     the child, that will enable the child to be involved in and 
     make progress in the general education curriculum and that 
     will meet the child's other needs that result from the 
     child's disability; and
       ``(BB) measurable annual goals for determining progress 
     toward meeting the goals described in subitem (AA); and
       ``(cc) a description of the process for the review and 
     revision of each multi-year IEP, including--
       ``(AA) a review by the IEP Team of the child's multi-year 
     IEP at each of the child's natural transition points;
       ``(BB) in years other than a child's natural transition 
     points, an annual review of the child's IEP to determine the 
     child's current levels of progress and whether the annual 
     goals for the child are being achieved; and to amend the IEP, 
     as appropriate, to enable the child to continue to meet the 
     measurable goals set out in the IEP;
       ``(CC) if the IEP Team determines on the basis of a review 
     that the child is not making sufficient progress toward the 
     goals described in the multi-year IEP, a local educational 
     agency will ensure that the IEP Team reviews the IEP within 
     30 calendar days; and
       ``(DD) at the request of the parent, the IEP Team shall 
     conduct a review of the child's multi-year IEP rather than or 
     subsequent to an annual review.
       ``(B) Report.--Beginning 2 years after the date of 
     enactment, the Secretary shall submit an annual report to the 
     Committee on Education and the Workforce in the House of 
     Representatives and the Health, Education, Labor and Pensions 
     Committee in the Senate regarding the effectiveness of the 
     program and any specific recommendations for broader 
     implementation of such program including
       ``(i) reducing--

       ``(I) the paperwork burden on teachers, principals, 
     administrators, and related service providers; and
       ``(II) noninstructional time spent by teachers in complying 
     with this part;

       ``(ii) enhancing longer-term educational planning;
       ``(iii) improving positive outcomes for children with 
     disabilities;
       ``(iv) promoting collaboration between IEP Team members; 
     and
       ``(v) ensuring satisfaction of family members.''
       ``(C) Definition.--As used in this paragraph, the term 
     `natural transition points' means those periods that are 
     close in time to the transition of a child with a disability 
     from preschool to elementary grades, from elementary grades 
     to middle or junior high school grades, from middle or junior 
     high school grades to high school grades, and from high 
     school grades to post-secondary activities, but in no case 
     longer than 3 years.''

       (182) There are no significant differences between the 
     House bill and Senate amendment.
     LC
       (183) The Senate amendment, but not the House bill, 
     requires that placements of homeless children with 
     disabilities comply with the McKinney-Vento Homeless 
     Assistance Act.
       The House bill, but not the Senate amendment, allows for 
     alternative means of meeting participation for meetings under 
     section 615.
     SR with an amendment:
       Strike ``and 615'' in (f) and insert ``, 615(e) and 
     (f)(1)(B), and administrative matters under 615 (such as 
     scheduling, exchange of witness lists and status 
     conferences)''.

       (184) The House bill includes a Sense of Congress regarding 
     the need to have a disability diagnosis performed by a 
     physician or licensed health care professional. The Senate 
     amendment does not include this provision.
     HR
       (185) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR
       (186) The Senate amendment, but not the House bill, 
     includes language regarding children who are wards of the 
     State.
     SR
       (187) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
       (188) The House bill and Senate amendment include similar 
     language, except the House bill modifies the need for an 
     independent evaluation to be done as appropriate.
     HR
       (189) The Senate amendment, but not the House bill, 
     includes language regarding homeless children and children 
     who are wards of the State.
     SR with an amendment:
       Rewrite (b)(2) to read as follows:
       ``(b)(2)(A) In General.--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. In the case 
     of--
       ``(i) a child who is a ward of the State, such surrogate 
     may alternatively be appointed by the judge overseeing the 
     child's care provided that the surrogate meets the 
     requirements of this paragraph;
       ``(ii) an unaccompanied homeless youth as defined in Sec 
     725(6) of the McKinney-Vento Homeless Assistance Act, the LEA 
     shall appoint a surrogate in accordance with this paragraph.
       ``(B) Time requirement.--The State shall make reasonable 
     efforts to ensure the assignment of the surrogate not more 
     than 30 days after there is a determination made by the 
     agency that the child needs a surrogate.''

       Report language: ``In light of the fact that unaccompanied 
     homeless youth are a particularly mobile population, once the 
     school district has made a determination that such youth 
     require a surrogate, the Conferees encourage States or local 
     educational agencies where allowed by law to quickly appoint 
     a surrogate or refer the child to the child welfare system if 
     consistent with State law. The Conferees recognize that, 
     because the parents of homeless unaccompanied youth may be 
     unavailable or unwilling to participate in the youth's 
     education, homeless unaccompanied youth face unique problems 
     in obtaining a free appropriate public education. 
     Accordingly, the Conferees intend that the surrogate parent 
     process be available for such

[[Page H9947]]

     youth, to ensure that they are provided with a free 
     appropriate public education. Furthermore, the Conferees 
     intend that appropriate staff members of emergency shelters, 
     transitional shelters, independent living programs, and 
     street outreach programs not be considered to be employees of 
     agencies involved in the education or care of youth, for 
     purposes of the prohibition of certain agency employees from 
     acting as surrogates for parents as set forth in Sec. 
     (b)(2)(A), provided that a such role is temporary until a 
     surrogate can be appointed that meets the requirements and 
     such role in no way conflicts with, or is in derogation of, 
     the provision of a free appropriate public education to these 
     youth.''

       (190) There are minor wording differences between the House 
     and Senate amendments, but the content is the same.
     LC
       (191) There are no differences between the House bill and 
     Senate amendment.
     LC
       (192) The House bill adds a requirement for voluntary 
     binding arbitration that the Senate amendment does not 
     include.
     HR
       (193) The House bill and Senate amendment have similar 
     language regarding the opportunity to present complaints, but 
     the House bill, not the Senate amendment, includes language 
     establishing a 1 year statute of limitations on the right to 
     present complaints. Senate has a 2 year timeline for filing 
     complaints at note 221.
     SR with an amendment to read as follows:
       ``(6) an opportunity to present complaints--
       ``(A) with respect to any matter relating to the 
     identification, evaluation, or educational placement of the 
     child, or the provision of a free appropriate public 
     education to such child; and
       ``(B) which set forth an alleged violation that occurred 
     not more than two years before the date the parent or public 
     agency knew or should have known about the alleged action 
     that forms the basis of the complaint.''

       (194) The Senate amendment, but not the House bill, allows 
     for either party to file a due process complaint.
       The House bill requires the complaint to have a description 
     of the specific issues while the Senate amendment requires a 
     description of the nature of the problem.
     HR
       (195) The Senate amendment, but not the House bill, 
     requires the LEA to send a prior written notice to a parent 
     if the LEA has not already done so, after a parent has filed 
     a due process complaint.
     SR
       (196) The Senate amendment, but not the House bill, 
     requires the SEA to develop model forms for the complaint 
     notice.
     HR
       (197) The Senate amendment, but not the House bill, 
     includes procedures for children who are wards of the State.
     SR
       (198) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
       (199) The Senate amendment, but not the House bill, 
     requires the notice to include what options the agency 
     considered but did not include, and why. The Senate 
     amendment, but not the House bill, requires a description of 
     any other factors relevant to the agency's proposal or 
     refusal.
     SR with an amendment:
       Insert (C) as amended by striking ``any other options that 
     the agency considered'' and inserting ``other options 
     considered by the IEP team'' and insert (E) as amended by 
     striking ``any other'' and inserting ``the''.

       (200) The Senate amendment, but not the House bill, 
     presumes that the complaint is sufficient unless a party 
     submits an objection to the notice, establishes timelines and 
     procedures to support this rule, and requires the other party 
     to receive the notice.
       The Senate amendment, but not the House bill, also allows 
     parents to amend their complaint if the hearing officer or 
     other party consents, with timelines restarting at the time 
     the amendment is filed.
     HR with an amendment:
       Strike ``only'' and insert ``not later than 5 days'' in 
     (2)(D)(i)(II).
     HR with an amendment:
       Insert ``, including the timeline under subsection 
     (f)(1)(B)'' after ``notice'' in (2)(D)(ii).
     HR with an amendment:
       Strike ``20'' and insert ``15'' in paragraph (B).
     HR with an amendment:
       Modify (2)(A) as follows:
       ``(2) Due process complaint notice.--
       ``(A)(i) Parent complaint.--The due process complaint 
     notice required under subsection (b)(7)(A) shall be deemed to 
     be sufficient unless the party receiving the notice notifies 
     the hearing officer and the other party in writing that the 
     receiving party believes the notice has not met the 
     requirements of that subsection.
       ``(ii) Response.--If the local educational agency has not 
     sent a prior written notice to the parent regarding the 
     subject matter contained in the parent's due process 
     complaint notice, such local educational agency shall within 
     10 days send to the parent a response that shall include--

       ``(I) an explanation of why the agency proposed or refused 
     to take the action raised in the complaint;
       ``(II) a description of other options that the IEP team 
     considered and the reasons why those options were rejected;
       ``(III) a description of each evaluation procedure, test, 
     record or report the agency used as the basis for the 
     proposed or refused action; and

       (IV) a description of the factors that are relevant to the 
     agency's proposal or refusal.
       ``(iii) Sufficiency.--A response filed by a local 
     educational agency pursuant to clause (ii) shall not be 
     construed to preclude such local educational agency from 
     asserting that the parent's due process complaint notice was 
     insufficient, where appropriate.''

       (201) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
       (202) The Senate amendment, but not the House bill, 
     requires a notice whenever a due process complaint is filed.
     HR with an amendment:
       Rewrite (d)(1) to read as follows:
       ``(d) Procedural Safeguards Notice.--
       ``(1) In general.--
       ``(A) A copy of the procedural safeguards available to the 
     parents of a child with a disability shall be given to the 
     parents only 1 time a year, except that a copy also shall be 
     given to the parents--
       ``(i) upon initial referral or parental request for 
     evaluation;
       ``(ii) upon the first occurrence of the registration of a 
     complaint under subsection (b)(6); and
       (iii) upon request by a parent.
       ``(B) The local educational agency may place a current copy 
     of the procedural safeguards notice on its Internet website, 
     if such website exists.''

       (203) The House bill and Senate amendment contain similar 
     language, except the House bill requires a description of the 
     safeguards while the Senate amendment requires a full 
     explanation.
     HR
       (204) The Senate amendment, but not the House bill, 
     requires the notice to include time period requirements and a 
     description of the State-level appeal. The House bill does 
     not include a State-level appeal system.
     HR
       (205) The House bill, but not the Senate amendment, 
     requires a description of the voluntary binding arbitration 
     system. The Senate amendment does not include that option.
     HR
       (206) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
       (207) The House bill, but not the Senate amendment, creates 
     a Voluntary Binding Arbitration system in the title of this 
     section.
     HR
       (208) Senate amendment, but not House bill, specifies that 
     a mediation agreement is enforceable in court.
     HR with an amendment:
       Strike (F) and (G) and insert the following (F) and (G):
       ``(F) Written agreement.--In the case that a resolution is 
     reached to resolve the complaint through the mediation 
     process, the parties shall execute a legally binding 
     agreement that--
       ``(I) states that all 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;
       ``(II) is signed by both the parent and a representative of 
     the public agency who has the authority to bind such agency; 
     and
       ``(III) is enforceable in any State court of competent 
     jurisdiction or in a district court of the United States.
       ``(G) Mediation discussions.--Discussions that occur during 
     the mediation process shall be confidential and may not be 
     used as evidence in any subsequent due process hearings or 
     civil proceedings.''

       Report language: ``The conferees intend that the parties to 
     the mediation process may be required to sign a 
     confidentiality pledge prior to the commencement of such 
     process to ensure that all discussions that occur during the 
     mediation process remain confidential irrespective of whether 
     the mediation results in a resolution.''

       (209) The House bill, but not the Senate amendment, 
     requires States to develop a voluntary binding arbitration 
     system for the resolution of disputes.
     HR
       (210) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
       (211) The House bill does not provide for a State-level 
     appeal system, so eliminates the dual-tier language. The 
     Senate amendment maintains the State-level appeal.
     HR
       (212) Both the House bill and Senate amendment require the 
     LEA and parent of a

[[Page H9948]]

     child with a disability to meet within 15 days of a parent's 
     complaint being filed to attempt to resolve the complaint. 
     The Senate amendment requires the meeting to include the IEP 
     team and a person with decision making authority on behalf of 
     the LEA. The House bill requires a meeting with the LEA and 
     the parents. The House bill, but not the Senate amendment, 
     operates within the regulatory 45 day timeline.
     HR with an amendment:
       Strike ``Opportunity to Resolve Complaint'' and insert 
     ``Resolution Session'' in the heading.
     HR with an amendment:
       Strike ``and the IEP Team'' and replace with ``and the 
     relevant member or members of the IEP team with specific 
     knowledge of the facts identified in the complaint'' in 
     (B)(i).
     HR with an amendment:
       Strike ``specific issues'' and insert ``facts'' in 
     subparagraph (B)(i)(IV).
       Report language: ``The Committee intends that the relevant 
     members be determined by the parents and LEA.''
       (216) The Senate amendment, but not the House bill, 
     prevents the LEA from bringing an attorney to the preliminary 
     meeting unless the parent brings their attorney. The House 
     bill defines the resolution session as a non-administrative 
     or judicial meeting, and the Senate amendment requires a 
     written agreement to be signed by both parties if agreement 
     is reached, and such agreement is to be enforceable in court.
     HR with an amendment:
       Strike (iii) and insert the following (iii) and (iv):
       ``(iii) Written settlement agreement.--In the case that a 
     resolution is reached to resolve the complaint at such 
     meeting, the parties shall execute a legally binding 
     agreement that is--

       ``(I) signed by both the parent and a representative of the 
     public agency who has the authority to bind such agency; and
       ``(II) enforceable in any State court of competent 
     jurisdiction or in a district court of the United States.

       ``(iv) Review period.--If the parties execute an agreement 
     pursuant to clause (iii), each party has the opportunity to 
     void such agreement within 3 business days of its 
     execution.''

       (217) The House bill and Senate amendment contain similar 
     timeline requirements with the House bill requiring notice 
     `at least 5 business days prior' and the Senate amendment 
     requiring `not less than 5 business days prior.'
     HR
       (218) The House bill and Senate amendment include similar 
     language regarding who cannot conduct a hearing. The Senate 
     amendment, but not the House bill, adds additional 
     requirements regarding the qualifications of hearing 
     officers.
     HR with an amendment:
       Rewrite (3)(A)(ii) to read as follows:
       ``(ii) possess knowledge of, and the ability to understand, 
     the provisions of this Act, Federal and State regulations 
     pertaining to this Act, and legal interpretations of this Act 
     by Federal and State courts;''

       (219) Both the House bill and Senate amendment include 
     similar requirements about the subject matters that may be 
     brought up during a hearing, but the Senate amendment, not 
     the House bill, clarifies that either the parent or the LEA 
     may request a due process hearing.
     HR
       (220) The Senate amendment, but not the House bill, 
     includes a rule of construction allowing parents to file 
     separate due process hearings on separate issues.
     HR
       Report language: ``The Conferees intend to encourage the 
     consolidation of multiple issues into a single complaint 
     where such issues are known at the time of the filing of the 
     initial complaint.''

       (221) The Senate amendment establishes a 2-year statute of 
     limitations unless State law already has a statute of 
     limitations. The House bill includes a 1-year statute of 
     limitations (see note 193).
     HR/LC
       (222) The Senate amendment, but not the House bill, 
     includes several exceptions to the requirements of a statue 
     of limitations.
     HR with an amendment to read as follows:
       ``(E) Exception to the timeline.--The timeline described in 
     subparagraph (D) shall not apply if the parent was prevented 
     from requesting the hearing due to--
       ``(i) specific misrepresentations by the local educational 
     agency that it had resolved the problem forming the basis of 
     the complaint; or
       ``(ii) the local educational agency's withholding of 
     information from parents that was required to be provided to 
     parents under this part.''

       (223) The Senate amendment, but not the House bill, 
     requires hearing officer decisions to be based on substantive 
     grounds.
     HR with an amendment:
       Strike ``compromised'' and insert ``impeded'' in (F)(ii)(I) 
     and strike ``seriously hampered'' and insert ``significantly 
     impeded'' in (F)(ii)(II).

       (224) The Senate amendment, but not the House bill, allows 
     procedural violations to rise to the level of a substantive 
     violation under certain circumstances.
     HR with an amendment:
       Strike ``compromised'' and insert ``impeded'' in(F)(ii)(I) 
     and strike ``seriously hampered'' and insert ``significantly 
     impeded'' in (F)(ii)(II).

       (225) The Senate amendment, but not the House bill, allows 
     for the existence of a State-level appeal system for due 
     process hearings.
     HR with an amendment:
       Strike (G) and insert the following:
       ``(G) Rule of construction.--Nothing in this section shall 
     be construed to affect the right of a parent to file a 
     complaint with the State educational agency, if such agency 
     offers and conducts such appeals.''
     HR with an amendment:
       Insert ``if the State educational agency offers a state 
     level appeals process'' at the end of the first sentence in 
     (g).

       (226) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
       (227) The House bill, not the Senate amendment, allows for 
     non-attorney advocates to represent parents at due process 
     hearings. The Senate amendment, but not the House bill, 
     allows for individuals with special knowledge to accompany 
     and advise parents at due process hearings.
     HR
       (228) The Senate amendment, but not the House bill, allows 
     for a State-level appeal system, and requires the transmittal 
     of records to the State advisory panel.
     HR
       (229) The House bill includes technical changes to update 
     language after removing the State-level appeal system. The 
     Senate amendment replaces the entire existing law, but makes 
     no changes in this section, except to add a 90 day limit for 
     filing an appeal to court, unless State law provides for a 
     different timeline.
     HR
       (230) The House bill includes technical changes to update 
     language after removing the State-level appeal system.
     HR
       (231) The House bill requires the Governor to establish 
     rates for attorney's fees and make those rates public. The 
     Senate amendment places limitations on whether attorneys' 
     fees can be awarded.
       The Senate amendment clarifies that meetings conducted 
     under the opportunity to resolve provision are not eligible 
     for reimbursement for attorney's fees.
     HR
       (232) The Senate amendment clarifies that the parent's 
     attorney's conduct may result in reduction of attorney's 
     fees.
     HR
       (233) The Senate amendment allows parents to represent 
     their child in court.
     SR
       (234) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
       (235) There are minor technical differences between the 
     House bill and Senate amendment, but the content is the same.
     LC
       (236) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
     (237)-(245)
       HR with an amendment to read as follows:
       ``(k) Placement in Alternative Educational Setting.--
       ``(1) Authority of school personnel.--
       ``(A) Case-by-case determination.--School personnel may 
     consider any unique circumstances on a case-by-case basis 
     when determining whether to order a change in placement for a 
     child with a disability who violates a code of student 
     conduct.
       ``(B) Authority.--School personnel under this section may 
     remove a child with a disability who violates a code of 
     student conduct from their current placement to an 
     appropriate interim alternative educational setting, another 
     setting, or suspension, for not more than 10 school days (to 
     the extent such alternatives are applied to children without 
     disabilities).
       ``(C) Additional authority.--If school personnel seek to 
     order a change in placement that would exceed 10 school days 
     and the behavior that gave rise to the violation of the 
     school code is determined not to be a manifestation of the 
     child's disability pursuant to subparagraph (E), the relevant 
     disciplinary procedures applicable to children without 
     disabilities may be applied to the child in the same manner 
     and for the same duration in which the procedures would be 
     applied to children without disabilities, except as provided 
     in section 612(a)(1) although it may be provided in an 
     interim alternative educational setting.
       ``(D) Services.--A child with a disability who is removed 
     from the child's current placement under subparagraph (G) 
     (irrespective of whether the behavior is determined to be a 
     manifestation of the child's disability) or (C) shall--
       ``(i) continue to receive educational services, as provided 
     in section 612(a)(1), so as to enable the child to continue 
     to participate in

[[Page H9949]]

     the general education curriculum, although in another 
     setting, and to progress toward meeting the goals set out in 
     the child's IEP; and
       ``(ii) receive, as appropriate, a functional behavioral 
     assessment, behavioral intervention services and 
     modifications, that are designed to address the behavior 
     violation so that it does not recur.
       ``(E) Manifestation determination.--
       ``(i) In general.--Except as provided in subparagraph (B), 
     within 10 school days of any decision to change the placement 
     of a child with a disability because of a violation of a code 
     of student conduct, the local educational agency, the parent 
     and relevant members of the IEP Team (as determined by the 
     parent and the local educational agency) shall review all 
     relevant information in the student's file, including the 
     child's IEP, any teacher observations, and any relevant 
     information provided by the parents to determine--

       ``(I) if the conduct in question was caused by, or had a 
     direct and substantial relationship to, the child's 
     disability; or
       ``(II) if the conduct in question was the direct result of 
     the local educational agency's failure to implement the IEP.

       ``(ii) Manifestation.--If the local educational agency, the 
     parent and relevant members of the IEP Team determine that 
     either subclause (I) or (II) of clause (i) is applicable for 
     the child, the conduct shall be determined to be a 
     manifestation of the child's disability.
       ``(F) Determination that behavior was a manifestation.--If 
     the local educational agency, the parent and relevant members 
     of the IEP Team make the determination that the conduct was a 
     manifestation of the child's disability, the IEP Team shall--
       ``(i) conduct a functional behavioral assessment, and 
     implement a behavioral intervention plan for such child, 
     provided that the local educational agency had not conducted 
     such assessment prior to such determination before the 
     behavior that resulted in the change in placement described 
     in subparagraph (C) or (G);
       ``(ii) in the situation where a behavioral intervention 
     plan has been developed, review the behavioral intervention 
     plan if the child already has such a behavioral intervention 
     plan, and modify it, as necessary, to address the behavior; 
     and
       ``(iii) except as provided in subparagraph (G), return the 
     child to the placement from which the child was removed, 
     unless the parent and the local educational agency agree to a 
     change of placement as part of the modification of the 
     behavioral intervention plan.
       ``(G) Special circumstances.--School personnel may remove a 
     student to an interim alternative educational setting for not 
     more than 45 school days without regard to whether the 
     behavior is determined to be a manifestation of the child's 
     disability, in cases where a child--
       ``(i) carries or possesses a weapon to or at school, on 
     school premises, or to or at a school function under the 
     jurisdiction of a State or local educational agency; or
       ``(ii) knowingly possesses or uses illegal drugs, or sells 
     or solicits the sale of a controlled substance, while at 
     school, on school premises, or a school function under the 
     jurisdiction of a State or local educational agency; or
       ``(iii) has inflicted serious bodily injury upon another 
     person while at school, on school premises, or at a school 
     function under the jurisdiction of a State or local 
     educational agency.
       ``(H) Notification.--Not later than the date on which the 
     decision to take disciplinary action is made, the local 
     educational agency shall notify the parents of that decision, 
     and of all procedural safeguards accorded under this section.
       (2) Determination of setting.--The interim alternative 
     educational setting in subparagraph (C) and (G) of paragraph 
     (1) shall be determined by the IEP Team.
       (3) Appeal.--
       ``(A) In general.--The parent of a child with a disability 
     who disagrees with any decision regarding placement, or the 
     manifestation determination under this subsection, or a local 
     educational agency that believes that maintaining the current 
     placement of the child is substantially likely to result in 
     injury to the child or to others, may request a hearing.
       ``(B) Authority of hearing officer.--
       ``(i) In general.--A hearing officer shall hear, and make a 
     determination regarding, an appeal requested under 
     subparagraph (A).
       ``(ii) Change of placement order.--In making the 
     determination under clause (i), the hearing officer may order 
     a change in placement of a child with a disability. In such 
     situations, the hearing officer may--

       ``(I) return a child with a disability to the placement 
     from which the child was removed; or
       ``(II) order a change in placement of a child with a 
     disability to an appropriate interim alternative educational 
     setting for not more than 45 school days if the hearing 
     officer determines that maintaining the current placement of 
     such child is substantially likely to result in injury to the 
     child or to others.

       ``(4) Placement during appeals.--When an appeal under 
     paragraph (3) has been requested by either the parent or the 
     local educational agency--
       ``(A) the child shall remain in the interim alternative 
     educational setting pending the decision of the hearing 
     officer or until the expiration of the time period provided 
     for in paragraph (1)(C), whichever occurs first, unless the 
     parent and the State or local educational agency agree 
     otherwise; and
       ``(B) the State or local educational agency shall arrange 
     for an expedited hearing, which shall occur within 20 school 
     days of the date the hearing is requested and shall result in 
     a determination within 10 school days after the hearing.
       ``(5) Protections for children not yet eligible for special 
     education and related services.--
       ``(A) In general.--A child who has not been determined to 
     be eligible for special education and related services under 
     this part and who has engaged in behavior that violates a 
     code of student conduct, may assert any of the protections 
     provided for in this part if the local educational agency had 
     knowledge (as determined in accordance with this paragraph) 
     that the child was a child with a disability before the 
     behavior that precipitated the disciplinary action occurred.
       ``(B) Basis of knowledge.--A local educational agency shall 
     be deemed to have knowledge that a child is a child with a 
     disability if, before the behavior that precipitated the 
     disciplinary action occurred--
       ``(i) the parent of the child has expressed concern in 
     writing to supervisory or administrative personnel of the 
     appropriate educational agency, or a teacher of the child, 
     that the child is in need of special education and related 
     services;
       ``(ii) the parent of the child has requested an evaluation 
     of the child pursuant to section 614(a)(1)(B); or
       ``(iii) the teacher of the child, or other personnel of the 
     local educational agency, has expressed specific concerns 
     about a pattern of behavior demonstrated by the child, 
     directly to the director of special education of such agency 
     or to other supervisory personnel of the agency.
       ``(C) Exception.--A local educational agency shall not be 
     deemed to have knowledge that the child is a child with a 
     disability if the parent of the child has not allowed an 
     evaluation of the child pursuant to section 614 or has 
     refused services under this part or the child has been 
     evaluated and it was determined that the child was not a 
     child with a disability under this part.
       ``(D) Conditions that apply if no basis of knowledge.--
       ``(i) In General.--If a local educational agency does not 
     have knowledge that a child is a child with a disability (in 
     accordance with subparagraph (B) or (C)) prior to taking 
     disciplinary measures against the child, the child may be 
     subjected to disciplinary measures applied to children 
     without disabilities who engaged in comparable behaviors 
     consistent with clause (ii).
       ``(ii) Limitations.--If a request is made for an evaluation 
     of a child during the time period in which the child is 
     subjected to disciplinary measures under this subsection, the 
     evaluation shall be conducted in an expedited manner. If the 
     child is determined to be a child with a disability, taking 
     into consideration information from the evaluation conducted 
     by the agency and information provided by the parents, the 
     agency shall provide special education and related services 
     in accordance with this part, except that, pending the 
     results of the evaluation, the child shall remain in the 
     educational placement determined by school authorities.''

       Report language: ``The Conferees intend to assure that the 
     manifestation determination is done carefully and thoroughly 
     with consideration of any rare or extraordianry circumstances 
     presented. Additionally, it is the intention of the Conferees 
     that when a student has violated a code of conduct school 
     personnel may consider any unique circumstances on a case-by-
     case basis to determine to whether a change of placement for 
     discipline purposes is appropriate. The Conferees intend that 
     if a change in placement is proposed, the manifestation 
     determination will analyze the child's behavior as 
     demonstrated across settings and across time when determining 
     whether the conduct in question is a direct result of the 
     disability. The Conferees intend that in situations where the 
     local educational agency, the parent and the relevant members 
     of the IEP team determine that the conduct was the direct 
     result of the child's disability, a child with a disability 
     should not be subject to discipline in the same manner as a 
     non-disabled child.
       ``The Conferees intend that in order to determine that the 
     conduct in question was a manifestation of the child's 
     disability, the local educational agency, the parent and the 
     relevant members of the IEP team must determine the conduct 
     in question be the direct result of the child's disability. 
     It is intention of the Conferees that the conduct in question 
     was caused by, or has a direct and substantial relationship 
     to, the child's disability, and is not an attenuated 
     association, such as low self-esteem, to the child's 
     disability.''

       (246) There are no significant differences between the 
     House bill and Senate amendment.
     HR
       (247) The House bill does not include these definitions.
     HR
       (248) The House bill includes this technical language as 
     part of its structure. The Senate amendment adds language 
     regarding the McKinney-Vento Act.

[[Page H9950]]

     HR with an amendment:
       Strike ``or under subtitle B of title VII of the McKinney-
     Vento Homeless Assistance Act or parts B and E of title IV of 
     the Social Security Act''.

       (249) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
       (250) There are no significant differences between the 
     House bill and Senate amendment.
     HR/LC
       (251) The Senate amendment allows parents to receive 
     notices through email. The House bill does not include this 
     provision.
     HR
       (252) The Senate amendment, but not the House bill, 
     includes language requiring the appointment of a surrogate 
     parent if determined necessary by the LEA.
     SR
       (253)-(258):
     SR with an amendment to read as follows:

     ``SEC. 616. MONITORING, TECHNICAL ASSISTANCE, AND 
                   ENFORCEMENT.

       ``(a) Federal and State Monitoring.--
       ``(1) In general.--The secretary shall--
       ``(A) monitor implementation of this part through--
       ``(i) oversight of the exercise of general supervision by 
     the States, as required in section 612(a)(11); and
       ``(ii) the State performance plans, described in subsection 
     (b)
       ``(B) enforce this part in accordance with subsection (e); 
     and
       ``(C) require States to--
       ``(i) monitor implementation of this part by local 
     educational agencies; and
       ``(ii) enforce this part in accordance with paragraph (3) 
     and subsection (e).
       ``(2) Focused monitoring.--The primary focus of Federal and 
     State monitoring activities described in paragraph (1) shall 
     be on--
       ``(A) improving educational results and functional outcomes 
     for all children with disabilities; and
       ``(B) ensuring that States meet the program requirements 
     under this part, with a particular emphasis on those 
     requirements that are most closely related to improving 
     educational results for children with disabilities.
       ``(3) Monitoring priorities.--The Secretary shall monitor 
     the States, and shall require each State to monitor its local 
     educational agencies located in the State (except the State 
     exercise of general supervisory responsibility), using 
     quantifiable indicators, in the following priority areas and 
     using such qualitative indicators as are needed to adequately 
     measure performance in the following priority areas:
       ``(A) Provision of a free appropriate public education in 
     the least restrictive environment.
       ``(B) State exercise of general supervisory authority, 
     including child find, effective monitoring, the use of 
     resolution sessions, mediation, voluntary binding 
     arbitration, and a system of transition services as defined 
     in section 602(33) and 637(a)(9).
       ``(C) Disproportionate representation of racial and ethnic 
     groups in special education and related services, to the 
     extent the representation is the result of inappropriate 
     identification.
       ``(4) Permissive areas of review.--The Secretary shall 
     consider other relevant information and data, including data 
     provided by States under section 618.
       ``(b) State Performance Plans.--
       ``(1) Plan.--
       ``(A) In general.--Not later than 1 year after the date of 
     the enactment of the Individuals with Disabilities Education 
     Improvement Act of 2004, each State shall have in place a 
     performance plan that evaluates that State's efforts to 
     implement the requirements and purposes of this Act and 
     describes how the State will improve such implementation.
       ``(B) Submission for approval.--Each State shall submit the 
     State's performance plan to the Secretary for approval in 
     accordance with the approval process described in subsection 
     (c).
       ``(C) Review.--Each State shall review its State 
     performance plan at least once every 6 years and submit any 
     amendments to the Secretary.
       ``(2) Targets.--
       ``(A) In general.--As a part of the plan described under 
     paragraph (1), each State shall establish measurable and 
     rigorous targets for the indicators established under the 
     priority areas described in subsection (a)(3).
       ``(B) Data collection.--
       ``(i) In general.--Each State shall collect valid and 
     reliable information as needed to report annually to the 
     Secretary on the priority areas described in subsection 
     (a)(3).
       ``(ii) Rule of construction.--Nothing in this Act shall be 
     construed to authorize the development of a nationwide 
     database of personally identifiable information on 
     individuals involved in studies or other collections of data 
     under this Act.
       ``(C) Public reporting and privacy.--
       ``(i) In general.--The State shall use the targets 
     established in the plan and priority areas described in 
     subsection (a)(3) to analyze the performance of each local 
     educational agency in the State in implementing this part.
       ``(ii) Report.--

       ``(I) Public report.--The State shall report annually to 
     the public on the performance of each local educational 
     agency located in the State on the targets in the State's 
     performance plan. The State shall make the State's 
     performance plan available through public means, including 
     posting on the website of the State educational agency, 
     distribution to the media, and distribution through public 
     agencies.
       ``(II) State performance report.--The State shall report 
     annually to the Secretary on the performance of the State 
     under the State's performance plan.

       ``(iii) Privacy.--The State shall not report to the public 
     or the Secretary any information on performance that would 
     result in the disclosure of personally identifiable 
     information about individual children or where the available 
     data is insufficient to yield statistically reliable 
     information.
       ``(c) Approval Process.--
       ``(1) Deemed approval.--The Secretary shall review 
     (including the specific provisions described in subsection 
     (b)) each performance plan submitted by a State pursuant to 
     subsection (b)(1)(B) and the plan shall be deemed to be 
     approved by the Secretary unless the Secretary makes a 
     written determination, prior to the expiration of the 120-day 
     period beginning on the date on which the Secretary received 
     the plan, that the plan does not meet the requirements of 
     this section, including the specific provisions described in 
     subsection (b).
       ``(2) Disapproval.--The Secretary shall not finally 
     disapprove the plan, except after giving the State 
     educational agency notice and an opportunity for a hearing.
       ``(3) Notification.--If the Secretary finds that the plan 
     does not meet the requirements, in whole or in part, of this 
     section, the Secretary shall--
       ``(A) give the State notice and an opportunity for a 
     hearing; and
       ``(B) notify the State of the finding, and in such 
     notification shall--
       ``(i) cite the specific provisions in the plan that do not 
     meet the requirements; and
       ``(ii) request additional information, only as to the 
     provisions not meeting the requirements, needed to make the 
     plan meet the requirements of this section.
       ``(4) Response.--If the State educational agency responds 
     to the Secretary's notification described in paragraph (3)(B) 
     during the 30-day period beginning on the date on which the 
     agency received the notification, and resubmits the plan with 
     the requested information described in paragraph (3)(B)(ii), 
     the Secretary shall approve or disapprove such plan prior to 
     the later of--
       ``(A) the expiration of the 30-day period beginning on the 
     date on which the plan is resubmitted; or
       ``(B) the expiration of the 120-day period described in 
     paragraph (1).
       ``(5) Failure to respond.--If the State educational agency 
     does not respond to the Secretary's notification described in 
     paragraph (3)(B) during the 30-day period beginning on the 
     date on which the agency received the notification, such plan 
     shall be deemed to be disapproved.
       ``(d) Secretary's Review and Determination.--
       ``(1) Review.--The Secretary shall annually review the 
     State performance report submitted pursuant to subsection 
     (b)(2)(C)(ii)(II) in accordance with this section.
       ``(2) Determination.--
       ``(A) In general.--Based on the information provided by the 
     State in the State performance report, information obtained 
     through monitoring visits, and any other public information 
     made available, the Secretary shall determine if the State--
       ``(i) meets the requirements and purposes of this part;
       ``(ii) needs assistance in implementing the requirements of 
     this part;
       ``(iii) needs intervention in implementing the requirements 
     of this part; or
       ``(iv) needs substantial intervention in implementing the 
     requirements of this part.
       ``(B) Notice and opportunity for a hearing.--For any 
     determinations made under subparagraph (A), the Secretary 
     shall provide reasonable notice and an opportunity for a 
     hearing on such determination.
       ``(e) Enforcement.--
     ``(1) Needs assistance.--If the Secretary determines, for 2 
     consecutive years, that a State needs assistance under 
     subsection (d)(2)(ii) in implementing the requirements of 
     this Act, the Secretary shall take 1 or more of the following 
     actions:
       ``(A) Advise the State of available sources of technical 
     assistance that may help the State address the areas in which 
     the State needs assistance, which may include assistance from 
     the Office of Special Education Programs, other offices of 
     the Department of Education, other Federal agencies, 
     technical assistance providers approved by the Secretary, and 
     other federally funded nonprofit agencies, and require the 
     State to partner with appropriate entities. Such technical 
     assistance may include--
       ``(i) the provision of advice by experts to address the 
     areas in which the State needs assistance, including explicit 
     plans for addressing the area for concern within a specified 
     period of time;
       ``(ii) assistance in identifying and implementing 
     professional development, instructional strategies, and 
     methods of instruction that are based on scientifically based 
     research;

[[Page H9951]]

       ``(iii) designating and using distinguished 
     superintendents, principals, special education 
     administrators, special education teachers, and other 
     teachers to provide advice, technical assistance, and 
     support; and
       ``(iv) devising additional approaches to providing 
     technical assistance, such as collaborating with institutions 
     of higher education, educational service agencies, national 
     centers of technical assistance supported under part D, and 
     private providers of scientifically based technical 
     assistance.
       ``(B) Direct the use of State level funds under section 
     611(e) on the area or areas in which the State needs 
     assistance.
       ``(C) Identify the State as a high-risk grantee and impose 
     special conditions on the State's grant under this part.
       ``(2) Needs intervention.--If the Secretary determines, for 
     3 or more consecutive years, that a State needs intervention 
     under subsection (d)(2)(iii) in implementing the requirements 
     of this Act, the following shall apply:
       ``(A) The Secretary may take any of the actions in (1), and
       ``(B) The Secretary shall take 1 or more of the following 
     actions:
       ``(i) Require the State to prepare a corrective action plan 
     or improvement plan if the Secretary determines that the 
     State should be able to correct the problem within 1 year.
       ``(ii) Require the State to enter into a compliance 
     agreement under section 457 of the General Education 
     Provisions Act, if the Secretary has reason to believe that 
     the State cannot correct the problem within 1 year.
       ``(iii) Each year of the determination withhold not less 
     than 20 and not more than 50 percent of the State's funds 
     under section 611(e), until the Secretary determines the 
     State has sufficiently addressed the areas in which the State 
     needs intervention.
       ``(iv) Seek to recover funds under section 452 of the 
     General Education Provisions Act.
       ``(v) Withhold, in whole or in part, any further payments 
     to the State under this part pursuant to paragraph (5).
       ``(vi) Refer the matter for appropriate enforcement action, 
     which may include referral to the Department of Justice.
       ``(3) Needs substantial intervention.--Notwithstanding 
     paragraph (1) or (2), at any time that the Secretary 
     determines that a State needs substantial intervention in 
     implementing the requirements of this Act or that there is a 
     substantial failure to comply with any condition of a State 
     educational agency's or local educational agency's 
     eligibility under this part, the Secretary shall take 1 or 
     more of the following actions:
       ``(A) Recover funds under section 452 of the General 
     Education Provisions Act.
       ``(B) Withhold, in whole or in part, any further payments 
     to the State under this part.
       ``(C) Refer the case to the Office of the Inspector General 
     at the Department of Education.
       ``(D) Refer the matter for appropriate enforcement action, 
     which may include referral to the Department of Justice.
       ``(4) Opportunity for hearing.--
       ``(A) Withholding of funds.--Prior to withholding any funds 
     under this section, the Secretary shall provide reasonable 
     notice and an opportunity for a hearing to the State 
     educational agency involved.
       ``(B) Suspension.--Pending the outcome of any hearing to 
     withhold payments under subsection (b), the Secretary may 
     suspend payments to a recipient, suspend the authority of the 
     recipient to obligate funds under this part, or both, after 
     such recipient has been given reasonable notice and an 
     opportunity to show cause why future payments or authority to 
     obligate funds under this part should not be suspended.
       ``(5) Report to congress.--The Secretary shall report to 
     the Committee on Education and the Workforce in the House of 
     Representatives and the Committee on Health, Education, 
     Labor, and Pensions in the Senate within 30 days of taking 
     enforcement action pursuant to paragraph (1), (2) or (3), on 
     the specific action taken and the reasons why enforcement 
     action was taken.
       ``(6) Nature of withholding.--
       ``(A) Limitation.--If the Secretary withholds further 
     payments pursuant to paragraphs (2) or (3), the Secretary may 
     determine--
       ``(i) that such withholding will be limited to programs or 
     projects, or portions thereof, that affected the Secretary's 
     determination in (d)(2); or
       ``(ii) that the State educational agency shall not make 
     further payments under this part to specified State agencies 
     or local educational agencies that caused or were involved in 
     the Secretary's determination in subsection (d)(2).
       ``(B) Withholding until rectified.--Until the Secretary is 
     satisfied that the conditions that caused the initial 
     withholding has been substantially rectified--
       ``(i) payments to the State under this part shall be 
     withheld in whole or in part; and
       ``(ii) payments by the State educational agency under this 
     part shall be limited to State agencies and local educational 
     agencies whose actions did not cause or were not involved 
     in the Secretary's determination in (d)(2), as the case 
     may be.
       ``(7) Public attention.--Any State educational agency that 
     has received notice under subsection (d)(2) shall, by means 
     of a public notice, take such measures as may be necessary to 
     bring the pendency of an action pursuant to this subsection 
     to the attention of the public within the State.
       ``(8) Judicial review.--
       ``(A) In general.--If any State is dissatisfied with the 
     Secretary's action with respect to the eligibility of the 
     State under section 612, such State may, not later than 60 
     days after notice of such action, file with the United States 
     court of appeals for the circuit in which such State is 
     located a petition for review of that action. A copy of the 
     petition shall be transmitted by the clerk of the court to 
     the Secretary. The Secretary thereupon shall file in the 
     court the record of the proceedings upon which the 
     Secretary's action was based, as provided in section 2112 of 
     title 28, United States Code.
       ``(B) Jurisdiction; review by united states supreme 
     court.--Upon the filing of such petition, the court shall 
     have jurisdiction to affirm the action of the Secretary or to 
     set it aside, in whole or in part. The judgment of the court 
     shall be subject to review by the Supreme Court of the United 
     States upon certiorari or certification as provided in 
     section 1254 of title 28, United States Code.
       ``(C) Standard of review.--The findings of fact by the 
     Secretary, if supported by substantial evidence, shall be 
     conclusive, but the court, for good cause shown, may remand 
     the case to the Secretary to take further evidence, and the 
     Secretary may thereupon make new or modified findings of fact 
     and may modify the Secretary's previous action, and shall 
     file in the court the record of the further proceedings. Such 
     new or modified findings of fact shall be conclusive if 
     supported by substantial evidence.
       ``(f) State Enforcement.--If a State educational agency 
     determines that a local educational agency is not meeting the 
     requirements of this part, including the targets in the 
     State's performance plan, the State educational agency shall 
     prohibit the local educational agency from reducing the local 
     educational agency's maintenance of effort under this part as 
     local funds under section 613(a)(2)(C) for any fiscal year.
       ``(g) Rule of Construction.--Nothing under this section 
     shall be construed to restrict the Secretary from utilizing 
     any authority under the General Education Provisions Act to 
     monitor and enforce the requirements of this Act.''

       Report language: ``The Conferees believe that accurate 
     decision making with regard to enforcement of the IDEA is 
     required in order to: (1) ensure that federal dollars are 
     being spent productively on education, and, (2) to ensure 
     that monitoring and enforcement is administered fairly. It is 
     our expectation that state performance plans, indicators, and 
     targets will be developed with broad stakeholder input and 
     public dissemination.
       ``The Secretary is directed to monitor states using 
     rigorous targets and to request such information from states 
     and stakeholders as is necessary to implement the purposes of 
     IDEA, including the use of on-site monitoring visits and 
     student file reviews, and to enforce the requirements of the 
     IDEA.
       ``Conferees strongly encourage the Secretary to review all 
     relevant and publicly available data, including the data 
     gathered under Section 618, related to the targets and 
     priority areas established for reviewing the efforts of 
     States and local educational agencies to implement the 
     requirements and purposes of IDEA. The Secretary is also 
     authorized to use qualitative measures to inform his 
     decision-making process in determining the efforts of the 
     State or LEA in implementing IDEA.
       ``Conferees recommend that the Secretary diligently 
     investigate any root causes prior to selecting enforcement 
     options, so that enforcement options are appropriately 
     selected and have the greatest likelihood in yielding 
     improvement in that state. However, investigations must not 
     unduly delay the enforcement action.''

       (259) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR
       (260) There are no differences between the House bill and 
     Senate amendment.
     HR
       (261) The House bill prohibits the Federal Government from 
     dictating the content of curriculum or instruction. The 
     Senate amendment does not include that provision.
     SR
       (262) The Senate amendment, but not the House bill, 
     includes authorization for the Secretary to hire personnel to 
     carry out the Secretary's duties under section 664.
     SR
       (263) The House bill allows the Secretary to grant waivers 
     to 10 States to reduce paperwork. The Senate amendment 
     includes this provision in note 46.
     HR
       (264) The Senate amendment requires the development of a 
     model IFSP form, the House bill does not include that 
     provision.
     HR
       (265) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR
       (266) The House bill and Senate amendment contain similar 
     requirements regarding data collection, except the House 
     bill, and not the Senate amendment requires LEAs to submit 
     the same data as States, and requires data on voluntary 
     binding arbitration and children served with early 
     intervening funds

[[Page H9952]]

     under 613(f). The Senate amendment, but not the House bill, 
     requires disaggregation by gender, and by LEP status and 
     gender on several indicators, data collection on students 
     suspended for one day or more, the numbers of students sent 
     to alternate settings due to discipline violations, the 
     number of due process complaints and hearings held, and other 
     data regarding discipline provisions.
     HR with an amendment:
       Strike (L).

       (267) The House bill allows the Secretary to obtain 
     information through sampling. The Senate amendment requires 
     that the data not be able to identify individual children.
     HR with an amendment:
       Include both.

       (268) The Senate amendment allows the Secretary to provide 
     technical assistance to States to collect data. The House 
     bill does not include this provision.
     HR
       (269) The House bill and Senate amendment contain similar 
     language, except the House bill requires data to be examined 
     on ethnicity as well.
       The House bill also requires States to use funds for 
     prereferral services to address disproportionality if any is 
     found and requires the LEA to publicly report on any 
     revisions.
     SR with an amendment:
       Strike ``preferral'' and insert ``early intervening'' in 
     (2)(B).

       Report language: ``The Conferees believe that early 
     intervening services should make use of supplemental 
     instructional materials, where appropriate, to support 
     student learning. Children targeted for early intervening 
     services under IDEA are the very students who are most likely 
     to need additional reinforcement to the core curriculum used 
     in the regular classroom. These are in fact the additional 
     instructional materials that have been developed to 
     supplement and therefore strengthen the efficacy of 
     comprehensive core curriculum. Per the requirements of NCLB, 
     core curriculum must meet standards of scientific rigor. As 
     supplementary materials to these core programs, they are 
     aligned with and designed to reinforce the skills taught in 
     these comprehensive research-based texts.''

       (270) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
       (271) There are no differences between the House bill and 
     Senate amendment.
     LC
       (272) There are no significant differences between the 
     House bill and Senate amendment.
     LC
       (273) There are no significant differences between the 
     House bill and Senate amendment.
     LC
       (274) There are no differences between the House bill and 
     Senate amendment.
     SR with an amendment:
       Strike ``, if the State educational agency is the lead 
     agency for the State under that part'' in (e)(2).

       (275) The House bill, but not the Senate amendment, allows 
     funds to support the implementation of a State plan under 
     Part D if the State receives a grant. The Senate amendment, 
     but not the House bill, allows funds to be used to provide 
     services to children with disabilities under the Part C 
     program until the child attends kindergarten.
     HR with an amendment:
       LC on ``it retains'' versus ``the State reserves''.
     HR with an amendment:
       Insert new paragraph (6) to read as follows:
       ``(6) at the State's discretion, to continue service 
     coordination or case management for families who receive 
     services under part C.''

       (276) There are no significant differences between the 
     House bill and Senate amendment.
     LC
       (277) There are no differences between the House bill and 
     Senate amendment.
     LC
       (278) The House bill authorizes $500 million for FY 04 and 
     such sums thereafter, while the Senate amendment authorizes 
     such sums.
     HR
     Part C
       (279) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR
       (280) The House bill and Senate amendment have virtually 
     the same findings, but the Senate amendments contains 
     additional language on brain development.
     HR
       (281) There are no significant differences between the 
     House and Senate amendments.
     LC
       (282) There are no differences between the House bill and 
     Senate amendment.
     LC
       (283) The House bill requires services to be designed to 
     address family-identified priorities, while the Senate 
     amendment requires services to be designed to meet the 
     developmental needs of the infant or toddler.
     HR with an amendment to read as follows:
       ``(C) are designed to meet the developmental needs of an 
     infant or toddler with a disability as identified by the 
     individualized family service plan team in any 1 or more of 
     the following areas:''.

       (284) The House bill and Senate amendment include minor 
     differences in the services provided with the House bill 
     adding family therapy and the Senate amendment adding sign 
     language and cued language services.
     HR
       Report language: ``Conferees commend the Office of Special 
     Education & Rehabilitative Services for developing updated 
     early intervention materials that set out the full range of 
     options for families with deaf and hard of hearing children 
     who now have the potential to develop age appropriate 
     language in whatever modality their parents choose. Dramatic 
     improvements in hearing technology, both hearing aids and 
     cochlear implants, provide new opportunities for families who 
     wish to pursue spoken language for their child with hearing 
     loss. These new materials and efforts further the goals of 
     the IDEA that early intervention personnel actively provide 
     comprehensive and bias-free information on the range of 
     language options available to a child with hearing loss, 
     including the benefits of early amplification and/or early 
     implantation of a cochlear implant.''

       (285) The House bill and Senate amendment include minor 
     differences in the personnel authorized to provide services 
     with the House bill authorizing registered dietitians and the 
     Senate amendment authorizing nutritionists. The Senate 
     amendment also adds teachers of the deaf as a listed provider 
     while the House bill does not.
     SR
       Report Language: ``The conferees intend that the term 
     `special educators' includes teachers of the deaf. The 
     conferees recognize that with the recent dramatic rise in 
     newborn hearing screening, more infants are being identified 
     with hearing loss early and they need the services of 
     teachers of the deaf who can meet their language and 
     communication needs.''

       (286) The House bill allows the State to use the Part C 
     program to provide services to infants and toddlers up 
     through age 5 if the services include an educational 
     component and parents are advised of their rights to choose 
     to move to the Section 619 program. The Senate amendment 
     contains a similar program for children ages 3-5. See Section 
     635(b) of the Senate amendment.
     HR with an amendment:
       HR on structure of (5)(B) with an amendment to (5)(B)(ii) 
     to read as follows:
       ``(ii) children with disabilities who are eligible for 
     services under section 619 and who previously received 
     services under this part until such children enter, or are 
     eligible under state law to enter, kindergarten; provided 
     that any programs under this part serving these children 
     shall include--

       ``(I) an educational component that promotes school 
     readiness and incorporates pre-literacy, language and 
     numeracy skills, and
       ``(II) a written notification to parents of their rights 
     and responsibilities in determining whether their child will 
     continue to receive services under this part or participate 
     in preschool programs under section 619.''

       (287) The Senate amendment, but not the House bill, 
     includes language regarding homeless children, wards of the 
     State, and military children.
     SR with an amendment:
       Insert ``, infants or toddlers with disabilities who are 
     homeless children, infants or toddlers with disabilities who 
     are wards of the State,'' after ``including Indian infants 
     and toddlers with disabilities and their families residing on 
     a reservation geographically located in the State,''.

       (288) The Senate amendment establishes minimum levels of 
     developmental delay that States must cover. The House bill 
     does not include this language.
     SR with an amendment:
       Amend section 635(a)(1) to read ``A rigorous definition of 
     the term developmental delay that will be used for the state 
     in carrying out programs under this part in order to 
     appropriately identify infants and toddlers that are in need 
     of services under this part''.

       Report language: ``The Conferees intend that States 
     establish rigorous standards for identifying and serving 
     infants and toddlers with developmental delays. The Conferees 
     believe that these standards should encompass a sufficient 
     scope of developmental delays to ensure that these infants 
     and toddlers receive the benefit of Part C services designed 
     to lessen the infant or toddler's need for future or more 
     extensive services.''

       (289) The House bill, but not the Senate amendment, 
     requires that early intervention services be based on 
     scientifically based research.
     SR with an amendment:
       Rewrite (2) to read as follows:
       ``(2) A State policy that is in effect and that ensures 
     that appropriate early intervention services based on 
     scientifically based research, to the extent practicable, are 
     available to all infants and toddlers with disabilities and 
     their families, including Indian infants and toddlers with 
     disabilities and their

[[Page H9953]]

     families and homeless infants and toddlers with disabilities 
     and their families.''
     SR with an amendment:
       Add at the end of (5) ``and that ensures rigorous standards 
     for appropriately identifying infants and toddlers for 
     services under this part that will reduce the need for future 
     services''

       (290) The House bill, but not the Senate amendment, 
     requires an emphasis on informing parents of infants with 
     risk factors on the availability of early intervention 
     services.
       The Senate amendment, but not the House bill, expands the 
     list of places the public awareness program should focus on 
     delivering information.
     SR
       Report Language: ``The Conferees intend that the public 
     awareness program include a broad range of referral sources 
     such as homeless family shelters, clinics and other health 
     service related offices, public schools and officials and 
     staff in the child welfare system.''

       (291) There are no differences between the House bill and 
     Senate amendment.
     LC
       (292) The House bill requires States to focus on three 
     areas of personnel and allows States to focus on rural and 
     inner city areas and emotional and social development areas. 
     The Senate amendment permits States to focus on these areas 
     and rural/urban areas.
     SR
       (293) The Senate amendment, but not the House bill, 
     includes a provision allowing States to allow 
     paraprofessionals to provide services in accordance with 
     State law, regulation, or written policy.
     HR
       (294) There are no differences between the House bill and 
     Senate amendment.
     LC
       (295a) The House bill requires that services be provided in 
     a setting other than the natural environment only when 
     intervention cannot be achieved satisfactorily in that 
     setting. The Senate amendment requires that services be 
     provided in the natural setting unless a specific outcome 
     cannot be met.
     SR with an amendment to read as follows:
       ``(B) the provision of early intervention services for any 
     infant or toddler occurs in a setting other than a natural 
     environment that is most appropriate, as determined by the 
     parent and the individualized family service plan team, only 
     when early intervention cannot be achieved satisfactorily for 
     the infant or toddler in a natural environment.''

       Report language: ``The legislation amends current law to 
     recognize that there may be instances when a child's 
     individualized family service plan cannot be implemented 
     satisfactorily in the natural environment. The Conferees 
     intend that in these instances, the child's parents and the 
     other members of the individualized family service plan team 
     will together make this determination and then identify the 
     most appropriate setting in which early intervention services 
     can be provided.''

       (295b) The Senate amendment, but not the House bill, 
     requires procedures for homeless children and wards of the 
     State.
     SR
       (296) The Senate amendment does not include this 
     requirement.
     SR with an amendment to strike ``consistent with State law 
         within 3 years.''
       (297) Both the House bill and the Senate amendment allow 
     States to continue to provide services to children aged 3-5 
     in the Part C program, if the parent chooses to keep their 
     child in that system. The Senate amendment consolidates its 
     language in this section. The House bill incorporates 
     language in multiple areas.
     HR with an amendment to read as follows:
       ``(b) Flexibility to Serve Children 3 Years of Age Until 
     Entrance Into Elementary School.--
       ``(1) In general.--A statewide system described in section 
     633 may include a State policy, developed and implemented 
     jointly by the lead agency and the State educational agency, 
     under which parents of children with disabilities who are 
     eligible for services under section 619 and previously 
     received services under this part, may choose the 
     continuation of early intervention services (which shall 
     include an educational component that promotes school 
     readiness and incorporates pre-literacy, language, and 
     numeracy skills) for such children under this part until such 
     children enter, or are eligible under State law to enter, 
     kindergarten.
       ``(2) Requirements.--If a statewide system includes a State 
     policy described in paragraph (1), the statewide system shall 
     ensure--
       ``(A) that parents of children served pursuant to this 
     subsection are provided with annual notice that provides--
       ``(i) a description of such parents' right to elect 
     services pursuant to this subsection or under part B; and
       ``(ii) an explanation of the differences between receiving 
     services pursuant to this subsection and receiving services 
     under part B, including--

       ``(I) the types and location of services available under 
     both provisions;
       ``(II) applicable procedural safeguards under both 
     provisions; and
       ``(III) the possible costs, if any (including any fees to 
     be charged to families as described in section 632(4)(B)) to 
     parents under both provisions;

       ``(B) that services provided pursuant to this subsection 
     include an educational component that promotes school 
     readiness and incorporates preliteracy, language, and 
     numeracy skills;
       ``(C) that the State policy will not affect the right of 
     any child served pursuant to this subsection to instead 
     receive a free appropriate public education under part B;
       ``(D) the continuance of all early intervention services 
     outlined in the child's individualized family service plan 
     under section 636 while any eligibility determination is 
     being made for services under this subsection;
       ``(E) that parents of infants or toddlers with disabilities 
     (as defined in section 632(5)(A)) provide informed written 
     consent to the State, before such infants and toddlers reach 
     3 years of age, as to whether such parents intend to choose 
     the continuation of early intervention services pursuant to 
     the subsection for such infants or toddlers; and
       ``(F) that the requirements under section 637(a)(9) are 
     deferred if the child is receiving services in accordance 
     with this subsection until not less than 90 days (and at the 
     discretion of the parties to the conference under section 
     637(a)(9)(A), not more than 9 months) before, the time the 
     child will no longer receive services under this subsection.
       ``(G) the referral for evaluation for early intervention 
     services of a child who experiences a substantiated case of 
     trauma due to exposure to family violence, as defined in 
     section 309(1) of the Family Violence and Protection Services 
     Act.
       ``(3) Reporting requirement.--If a statewide system 
     includes a State policy described in paragraph (1), the State 
     shall submit to the Secretary, in the State's report under 
     section 637(b)(4)(A), a report on the number and percentage 
     of children with disabilities who are eligible for services 
     under section 619 but whose parents choose for such children 
     to continue to receive early intervention services under this 
     part; and
       ``(4) Rules of construction.--
       ``(A) If a statewide system includes a State policy 
     described in paragraph (1), a State that provides services in 
     accordance with this subsection to a child who is eligible 
     for services under section 619, shall not be required to 
     provide such child with a free appropriate public education 
     under part B for the length of time in which such children 
     are receiving services under this part.
       ``(B) Nothing in this subsection shall be construed to 
     require a provider of services under this part to provide a 
     child served under this part with a free appropriate public 
     education.
       ``(5) Available funds.--If a Statewide system includes a 
     State policy described in paragraph (1), the policy shall 
     describe the funds (including an identification as Federal, 
     State, or local funds) that will be used to ensure that the 
     option described in paragraph (1) is available to eligible 
     children and families who provide the consent described in 
     paragraph (2)(E), including fees (if any) to be charged to 
     families as described in section 632(4)(B).''

       (298) The Senate amendment, but not the House bill, 
     includes this rule of construction regarding payment for 
     certain procedures.
     SR
       (299) There are no differences between the House bill and 
     Senate amendment.
     HR
       (300) There are no differences between the House bill and 
     Senate amendment.
     LC
       (301) There are no significant differences between the 
     House bill and Senate amendment, except the House bill refers 
     to major goals while the Senate amendment refers to 
     measurable outcomes.
     SR with an amendment:
       In paragraph (3), strike ``major'' and insert 
     ``measurable'', and strike all references to ``goals'' and 
     insert ``results or outcomes''

       (302) There are no differences between the House bill and 
     Senate amendment.
     LC
       (303) The Senate amendment, but not the House bill requires 
     States to demonstrate that they have in effect the statewide 
     system required in section 633.
       The House bill specifically references effects of fetal 
     exposure to alcohol, the Senate amendment does not.
       The House bill, but not the Senate amendment, requires a 
     description of collaboration efforts with other early 
     childhood programs in the State.
     HR with an amendment:
       Strike ``for evaluation'' after ``require the referral'' 
     and insert ``under this part'' after ``intervention 
     services'' in (6) and insert:
       ``(11) a description of State efforts to promote 
     collaboration between Early Head Start programs, early 
     education and child care programs, and services under part C 
     of this Act.''

       Report language: ``The Conferees intend that every child 
     described in 637(a)(6)(A) and (B) will be screened by a Part 
     C provider or designated primary referral source to determine 
     whether a referral for an evaluation for early intervention 
     services under Part C is warranted. If the screening 
     indicates the need for a referral, the Conferees expect a 
     referral to be made. However, the Conferees do

[[Page H9954]]

     not intend this provision to require every child described in 
     Section 637 (a)(6)(A) and (B) to receive an evaluation or 
     early intervention services under Part C.''
       (304) The House bill gives discretion of up to 6 months to 
     develop a transition plan. The Senate amendment provides up 
     to 9 months.
     HR
       (305) Senate transition plan includes reference to ``as 
     appropriate, steps to exit from the program.''
     HR
       The Senate amendment, but not the House bill, includes a 
     requirement for policies and procedures regarding homeless 
     children and wards of the State.
     SR
       (306) The Senate amendment, but not the House bill, 
     requires assurances regarding homeless children and wards of 
     the State.
     HR
       (307) There are no significant differences between the 
     House bill and Senate amendment.
     LC
       (308) Both the House bill and the Senate amendment allow 
     States to continue to provide services to children aged 3-5 
     in the Part C program, if the parent chooses to keep their 
     child in that system. The Senate amendment requires the 
     written consent of parents to continue to provide early 
     intervention services.
     HR with an amendment to (4) to read as follows:
       ``(4) with the written consent of the parents, to continue 
     to provide early intervention services under this part to 
     children with disabilities from their 3rd birthday until such 
     children enter, or are eligible under State law to enter, 
     kindergarten, in lieu of a free appropriate public education 
     provided in accordance with part B; and''.

       (309) Neither the House bill nor the Senate amendment make 
     any changes in this section to current law.
     HR
       (310) The House bill makes no changes to current law. The 
     Senate amendment adds a provision requiring States to ensure 
     that interagency agreements are in place to ensure that 
     services are paid for by appropriate State agencies.
     HR with an amendment to (b) to read as follows:
       ``(b) Obligations Related to and Methods of Ensuring 
     Services.--
       ``(1) Establishing financial responsibility for services.--
       ``(A) In general.--The Chief Executive Officer of a State 
     or designee of the officer shall ensure that an interagency 
     agreement or other mechanism for interagency coordination is 
     in effect between each public agency and the designated lead 
     agency, in order to ensure--
       ``(i) the provision of, and financial responsibility for, 
     services provided under this part; and
       ``(ii) such services are consistent with the requirements 
     of section 635 and the State's application pursuant to 
     section 637, including the provision of such services during 
     the pendency of any such dispute.
       ``(B) Consistency between agreements or mechanisms under 
     part b.--The Chief Executive Officer of a State or designee 
     of the officer shall ensure that the terms and conditions of 
     such agreement or mechanism are consistent with the terms and 
     conditions of the State's agreement or mechanism under 
     Section 612(a)(12), where appropriate.
       ``(2) Reimbursement for services by public agency.--
       ``(A) In general.--If a public agency other than an 
     educational agency fails to provide or pay for the services 
     pursuant to an agreement required under paragraph (1) the 
     local educational agency or State agency (as determined by 
     the Chief Executive Officer or designee) shall provide or pay 
     for the provision of such services to the child.
       ``(B) Reimbursement.--Such local educational agency or 
     State agency is authorized to claim reimbursement for the 
     services from the public agency that failed to provide or pay 
     for such services and such public agency shall reimburse the 
     local educational agency or State agency pursuant to the 
     terms of the interagency agreement or other mechanism 
     required under paragraph (1).
       ``(3) Special rule.--The requirements of paragraph (1) may 
     be met through--
       ``(A) State statute or regulation;
       ``(B) signed agreements between respective agency officials 
     that clearly identify the responsibilities of each agency 
     relating to the provision of services; or
       ``(C) other appropriate written methods as determined by 
     the Chief Executive Officer of the State or designee of the 
     officer and approved by the Secretary through the review and 
     approval of the State's application pursuant to section 
     637.''

       (311) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR
       (312) There are no differences between the House bill and 
     Senate amendment.
     LC
       (313) The House bill, but not the Senate amendment, 
     requires the addition of representatives from the State 
     mental health agency, child welfare agency, and the Office of 
     the Coordinator of homeless children and youth to the State 
     council.
       The Senate amendment, but not the House bill, requires 
     parents of homeless children and representatives of wards of 
     the State to be on the panel.
       The Senate amendment, but not the House bill, requires the 
     addition of representatives from the State Medicaid agency to 
     the State council, homeless children, the welfare agency, and 
     foster children.
     HR with an amendment:
       Strike 1(A) and replace with 1(A) from House bill and 
     strike 1(M) and insert 1(J) from House bill.

       (314) There are no differences between the House bill and 
     Senate amendment.
     LC
       (315) There are no differences between the House bill and 
     Senate amendment.
     LC
       (316) There are no differences between the House bill and 
     Senate amendment.
     LC
       (317) There are no differences between the House bill and 
     Senate amendment.
     LC
       (318) The House bill requires the BIA to submit an annual 
     report and the Senate amendment requires a biennial report.
     HR
       (319) The Senate amendment includes the authorization of a 
     new State bonus grant to States that develop birth -6 
     programs, otherwise the State formulas are the same.
     HR with an amendment:
       Amend (e) to read as follows:
       ``(e) Reservation for State Incentive Grants.--
       ``(1) The Secretary shall reserve 15 percent of the amount 
     appropriated under section 644 for any fiscal year that such 
     amount exceeds $460,000,000 to make allotments to States that 
     are carrying out the policy described in section 635(b), by 
     allotting to each State an amount that bears the same ratio 
     to the amount of such reservation as the number of infants 
     and toddlers in the State bears to the number of infants and 
     toddlers in all participating States, without regard to 
     subsections (c)(2) and (3).
       ``(2) Maximum.--No State may receive an allotment greater 
     than 20 percent of the reservation pursuant to this 
     subsection.
       ``(3) Carryover of funds by states.--Notwithstanding 
     section 421(b) of the General Education Provisions Act or any 
     other provision of law, a State may carryover funds received 
     from the Secretary under this for one additional fiscal 
     year.''

       (320) The House bill establishes a specific authorization 
     level for the first year and such sums for the life of the 
     authorization. The Senate amendment authorizes such sums for 
     the entire authorization.
     HR
     Part D
       (321) The House bill includes this technical language as 
     part of its structure. The Senate amendment replaces the 
     entire existing law.
     HR/LC
       (322) Except for minor wording differences, there are no 
     differences between the House bill and Senate amendment.
     HR
       (323) The House bill focuses on training for existing 
     personnel while the Senate amendment also allows for 
     education of future personnel and defines the term personnel.
     HR with an amendment:
       Amend title to ``State Personnel Development Grants''.

       (324) The Senate amendment authorizes a formula grant 
     program if the appropriation exceeds $100 million. The House 
     bill keeps the program as a competitive grant.
     HR with an amendment:
       Insert new (4) as follows and renumber accordingly:
       ``(4) direct benefit.--In utilizing the amount provided 
     under paragraph (1) and not reserved pursuant to subsection 
     (e), a State educational agency shall, through grants, 
     contracts, or cooperative agreements, undertake activities 
     that significantly and directly benefit the local educational 
     agencies in the State.''

       (325) The Senate amendment, but not the House bill, 
     requires the inclusion as a partner of a State agency for 
     teacher preparation and certification, if it is outside of 
     the SEA. The Senate amendment also requires the inclusion of 
     the State agency responsible for administering Part C, child 
     care, and VR programs.
     HR with an amendment:
       Strike ``institutions of higher education'' and insert ``at 
     least one institution of higher education'' in (b)(1).
     HR with an amendment:
       Strike ``child care'' and insert ``early education, child 
     care'' in (b)(1).

       Report language: ``This provision requires State 
     educational agencies to establish partnerships with local 
     educational agencies and other State agencies involved in, or 
     concerned with, the education of children with disabilities, 
     including at least one institution of higher education and 
     the State agencies responsible for administering part C, 
     child care, and vocational rehabilitation programs. The 
     Conferees encourage State educational agencies, when 
     establishing such

[[Page H9955]]

     partnerships and where feasible, to establish partnerships 
     with multiple institutions of higher education.''

       (326) The House bill and Senate amendment have similar, but 
     differing descriptions of PTIs (E), the State advisory panel, 
     and personnel.
     HR
       (327) Current law in Senate amendment lists other partners, 
     the House bill lists optional partners.
     HR
       (328) The Senate amendment includes a requirement that the 
     plan assess vacancies and shortages, and the existence of 
     preservice programs.
     HR with an amendment:
       Insert ``and inservice'' after ``preservice'' in 
     (a)(2)(B)(ii).

       (329) The House bill specifically mentions related services 
     personnel, while the Senate amendment does not.
     HR
       (330) The Senate amendment references meeting personnel 
     requirements of Part C, while the House bill does not.
     HR
       (331) The Senate amendment includes a requirement that the 
     State will carry out each of the strategies in the plan. The 
     House bill includes this requirement in (b)(5).
     HR
       (332) The Senate amendment, but not the House bill, 
     includes requirements relating to highly qualified teachers 
     and teacher qualifications for poor and minority students.
     HR with an amendment:
       Amend heading to ``Elements of State Personnel Development 
     Plan''.

       (333) The House bill and Senate amendment have differing 
     provisions on coordination of other public and private 
     resources.
     HR
       (334) The Senate amendment, but not the House bill, 
     requires State plans to include information on integration 
     with other activities (4)(B), provide technical assistance 
     (5) and (6), recruit and retain highly qualified teachers 
     (7), teachers of poor and minority children (8), and meeting 
     performance goals in Section 612(a)(15).
     HR with an amendment:
       Strike ``preservice and inservice''.

       (335) The House bill maintains this program as a 
     competitive grant program. The Senate amendment converts this 
     to a formula grant program if funds exceed $100 million.
     HR
       (336) There are no significant differences between the 
     House bill and Senate amendment, except the Senate language 
     only applies if the program is competitive.
     HR
       (337) The House bill, but not the Senate amendment, 
     includes a requirement that the annual report identify 
     necessary changes to the State plan to improve performance.
     SR with an amendment to read as follows:
       ``(3) identify changes in such strategies, if any, to 
     improve its performance''.

       (338) Similar provisions with the Senate amendment adding 
     as an allowable activity the ability to improve personnel 
     preparation programs, and including functional standards. The 
     Senate amendment also includes principals as eligible 
     personnel, while the House bill includes early intervention 
     and related services personnel. The Senate amendment also 
     includes training in implementing effective IEPs.
     HR
       (339) The House bill and Senate amendment are similar 
     except the Senate amendment refers to `` or more'' of the 
     activities while the House bill does not.
     HR
       (340) There are no significant differences between the 
     House and Senate amendments.
     HR/LC
       (341) The House bill requires that 90% of funds be spent on 
     professional development, while the Senate amendment requires 
     75% be spent on professional development.
     SR
       (342) There are no differences between the House bill and 
     Senate amendment.
     LC
       (343) The House bill maintains this as a competitive grant 
     program and establishes a lower maximum grant award.
     HR
       (344) The House bill authorizes $44 million for the first 
     year while the Senate amendment authorizes ``such sums.''
     HR
       (345) The Senate amendment, but not the House bill, 
     includes a purpose to help SEAs and LEAs improve their 
     educational systems.
     HR with an amendment:
       Add term ``personnel prep'' to paragraph (1) and the term 
     ``for children with disabilities'' in paragraph (2).

       Report language: ``The committee believes that information 
     and assistance to States and LEAs on the effective 
     implementation of responsiveness to intervention models must 
     be developed and made widely available as quickly as 
     possible. Large-scale implementation of improved 
     methodologies for the determination of and appropriate 
     intervention for specific learning disabilities will be 
     crucial to making needed reforms in this area. The Secretary 
     is strongly encouraged to collaborate with leading 
     organizations and researchers in the field of learning 
     disabilities to assist with development and dissemination 
     activities, including information and assistance for 
     educators and parents. Such an entity would have existing 
     capacity for national dissemination activities, proven 
     effectiveness and efficiency in developing and delivering 
     large-scale research-based informational and assistance 
     programs, and have well established relationships with the 
     education and parent communities.''

       (346) The Senate amendment requires the comprehensive plan 
     be coordinated with the ESRA plan and that the Secretary 
     solicit input from interested individuals. The House bill 
     does not include these provisions.
       The Senate amendment also allows public comment of 60 days, 
     while the House bill requires 30 days for public comment.
     HR with an amendment:
       Strike ``60'' and insert ``45'' in paragraph (2).

       (347) The House bill, but not the Senate amendment, allows 
     the Secretary to determine whether to include for-profit 
     entities in the competition.
     HR
       (348) The House bill requires 2% of funds to be reserved 
     for HBCU's, while the Senate amendment requires 1% of funds 
     to be reserved. The Senate amendment, but not the House bill, 
     expands the pool of funds that are eligible to include 
     subparts 3 and 4.
     SR
       (349) The Senate amendment, but not the House bill, adds 
     priorities for geographic diversity universal design and 
     assistive technology, and gifted and talented children.
     SR with an amendment:
       Insert the following definition at note 32:
       ``(34) Universal design.--The term `universal design' has 
     the meaning given that term under paragraph (1) of section 3 
     of the Assistive Technology Act of 1998, (29 USC Sec. 
     3002).''

       The Senate amendment, but not the House bill, includes 
     homeless children and wards of the State and Impact Aid 
     children as being included in the list of children the 
     Department can address the needs with projects under Part D.
     SR on Senate 3(L) and (8)
       (350) There are no differences between the House bill and 
     Senate amendment.
     LC
       (351) The Senate amendment, but not the House bill, 
     requires the Secretary to ensure that products are available 
     in accessible formats for people with disabilities.
     SR
       Report language: ``The Conferees intend that the Secretary 
     shall ensure that recipients of grants under this part make 
     products available in alternate formats, including 
     electronically.''

       (352) The Senate amendment, but not the House bill, expands 
     the pool of funds considered as part of the amount for a 
     ratable reduction, if necessary.
     HR
       (353) The House bill and Senate amendment contain similar 
     provisions creating a National Center for Special Education 
     Research at the Institute for Education Science. However, the 
     Senate amendment contains this language in Title III.
     HR
       (354) The House bill and Senate amendment include similar 
     provisions regarding authorized research activities with the 
     House bill adding a focus on limited English proficient 
     children with disabilities and the Senate amendment adding a 
     focus on transition services. The Senate language is in Title 
     III.
     HR/SR to accept both new activities
       (355) The House bill and Senate amendment contain similar 
     provisions regarding a research plan, with the House bill 
     adds implementation criteria to ensure the plan is carried 
     out. The Senate language is in Title III.
     HR
       (356) The House bill and Senate amendment include similar 
     provisions with the House bill adding as an allowable 
     activity the ability to test and apply research findings in 
     typical classroom settings.
     SR with an amendment:
       Strike ``service'' and insert ``where children with 
     disabilities receive services'' after ``settings'' in (c)(1).

       Report language: ``The conferees recognize that research-
     based structured learning systems that are capable of using 
     fine grained diagnostics to generate prescriptions, and 
     incorporate community members and parents as mentors are 
     highly effective in preventing school failure for children 
     with disabilities. These programs are particularly effective 
     as an early intervention strategy for children with 
     disabilities, especially in reading and mathematics. When 
     aligned to state standards such programs create a high level 
     of accountability for local programs serving children with 
     disabilities.
       ``The HOSTS Language Arts program, which is used widely in 
     Texas, Ohio, Florida, Delaware, Michigan, Louisiana, and 
     other states, is an example of such a program.

[[Page H9956]]

     HOSTS Learning programs have assisted schools in 
     significantly improving student achievement and test results 
     for all children, including children with disabilities. 
     Research conducted by Bowling Green University has 
     specifically demonstrated the efficacy of HOSTS Learning with 
     children with disabilities and with children whose low 
     achievement might otherwise cause them to be mislabeled as 
     disabled.
       ``It has been demonstrated that these programs reduce 
     academic failure, promote the integration of children with 
     disabilities into the mainstream of educational success, 
     decrease the incidence of school dropout, substance abuse, 
     teen pregnancy, crime, and unemployment. This is instrumental 
     in restoring trust in America's schools. Specifically, the 
     conferees believe these intensive, research-based learning 
     systems, that utilize teacher oversight, diagnostic and 
     prescriptive tools, and community engagement, dramatically 
     increase student achievement and implement the 
     recommendations of the National Reading Panel for all 
     children.''
       (357) The House bill and Senate amendment contain similar 
     provisions with the Senate amendment adding activities to 
     ensure the training of highly qualified teachers, and 
     training on technology and transition services.
     HR with an amendment:
       Move Sec. 664 to Note 353 and renumber Sections 
     accordingly.

       (358) The House bill and Senate amendment include similar 
     provisions with the Senate amendment adding activities to 
     allow programs to support continuous personnel preparation, 
     parental involvement, rural and high poverty schools, and 
     highly qualified teachers.
     HR with an amendment to read as follows:
       ``(b) Personnel Development; Enhanced Support for Beginning 
     Special Educators.--
       (1) In general.--In carrying out this section, the 
     Secretary shall support activities
       ``(A) for personnel development, including activities for 
     the preparation of personnel who will serve children with 
     high-incidence and low-incidence disabilities, to prepare 
     special education and general education teachers, principals, 
     administrators, and related services personnel (and school 
     board members, when appropriate) to meet the diverse and 
     individualized instructional needs of children with 
     disabilities and improve early intervention, educational, and 
     transitional services and results for children with 
     disabilities, consistent with the objectives described in 
     subsection (a); and
       ``(B) for enhanced support for beginning special educators, 
     consistent with the objectives described in subsection (a).
       ``(2) Personnel development.--In carrying out paragraph 
     (1)(A) the Secretary shall support not less than 1 of the 
     following activities:
       ``(A) Support effective existing, improve existing, or 
     develop new collaborative personnel preparation activities 
     undertaken by institutions of higher education, local 
     educational agencies, and other local entities that 
     incorporate best practices and scientifically based research, 
     where applicable, in providing special education and general 
     education teachers, principals, administrators, and related 
     services personnel with the knowledge and skills to 
     effectively support students with disabilities, including--
       ``(i) Working collaboratively in regular classroom 
     settings.
       ``(ii) Using appropriate supports, accommodations, and 
     curriculum modifications.
       ``(iii) Implementing effective teaching strategies, 
     classroom-based techniques, and interventions to ensure 
     appropriate identification of students who may be eligible 
     for special education services, and to prevent the 
     misidentification, overidentification, or underidentification 
     of children as having a disability, especially minority and 
     limited English proficient children.
       ``(iv) Effectively working with and involving parents in 
     the education of such parents' children.
       ``(v) Utilizing strategies, including positive behavioral 
     interventions, for addressing the conduct of children with 
     disabilities that impedes their learning and that of others 
     in the classroom.
       ``(vi) Effectively constructing IEPs, participating in IEP 
     meetings, and implementing IEPs.
       ``(vii) Preparing children with disabilities to participate 
     in statewide assessments (with or without accommodations) and 
     alternate assessments, as appropriate, and to ensure that all 
     children with disabilities are a part of all accountability 
     systems under the Elementary and Secondary Education Act of 
     1965.
       ``(viii) Working in high need elementary schools and 
     secondary schools, including urban schools, rural schools, 
     and schools operated by an entity described in section 
     7113(d)(1)(A)(ii) of the Elementary and Secondary Education 
     Act of 1965, and schools that serve high numbers or 
     percentages of limited English proficient children.
       ``(B) Developing, evaluating, and disseminating innovative 
     models for the recruitment, induction, retention, and 
     assessment of new, highly qualified teachers to reduce 
     teacher shortages, especially from groups that are 
     underrepresented in the teaching profession, including 
     individuals with disabilities.
       ``(C) Providing continuous personnel preparation, training, 
     and professional development designed to provide support and 
     ensure retention of special education and general education 
     teachers and personnel who teach and provide related services 
     to children with disabilities.
       ``(D) Developing and improving programs for 
     paraprofessionals to become special education teachers, 
     related services personnel, and early intervention personnel, 
     including interdisciplinary training to enable the 
     paraprofessionals to improve early intervention, educational, 
     and transitional results for children with disabilities.
       ``(E) In the case of principals and superintendents, 
     providing activities to promote instructional leadership and 
     improved collaboration between general educators, special 
     education teachers, and related services personnel.
       ``(F) Supporting institutions of higher education with 
     minority enrollments of at least 25 percent for the purpose 
     of preparing personnel to work with children with 
     disabilities.
       ``(G) Developing and improving programs to train special 
     education teachers to develop an expertise in autism spectrum 
     disorders.
       ``(3) Enhanced support for beginning special educators.--In 
     carrying out paragraph (1)(B) the Secretary shall support not 
     less than 1 of the following activities:
       ``(A) Enhancing and restructuring existing programs or 
     developing preservice teacher education programs to prepare 
     special education teachers, at colleges or departments of 
     education within institutions of higher education, by 
     incorporating an extended (such as an additional 5th year) 
     clinical learning opportunity, field experience, or 
     supervised practicum into such programs; or
       ``(B) Creating or supporting teacher-faculty partnerships 
     (such as professional development schools) that--
       ``(i) consist of at least--

       ``(I) 1 or more institutions of higher education with 
     special education personnel preparation programs;
       ``(II) 1 or more local educational agencies that serve high 
     numbers or percentages of low-income students;
       ``(III) 1 or more elementary or secondary schools, 
     particularly schools that have failed to make adequate yearly 
     progress on the basis, in whole and in part, of the 
     assessment results of the disaggregated subgroup of students 
     with disabilities; and

       ``(ii) may include other entities eligible for assistance 
     under this part; and
       ``(iii) provide--

       ``(I) high-quality mentoring and induction opportunities 
     with ongoing support for beginning special education 
     teachers; or
       ``(II) inservice professional development to beginning and 
     veteran special education teachers through the ongoing 
     exchange of information and instructional strategies with 
     faculty.''

       (359) The House bill and Senate amendment include similar 
     provisions with the House bill adding as an allowable 
     activity to focus on LEP students with low-incidence 
     disabilities and the Senate amendment adding a new emphasis 
     on communication and significant cognitive disabilities and 
     multiple disabilities.
     HR/SR to accept both
       (360) The House bill, but not the Senate amendment, adds as 
     an allowable activity services that benefit leadership 
     personnel that serve LEP students.
     SR
       (361) The Senate amendment adds a new program to provide 
     funds to colleges and universities to support and train 
     special education teachers.
     SR
       (362) The Senate amendment adds a new program to provide 
     funds to colleges and universities to support and train 
     general education teachers to work with students with 
     disabilities.
     SR
       (363) The House bill, but not the Senate amendment, adds a 
     required assurance that the State needs personnel in the area 
     of support.
     SR with an amendment:
       Strike (3)(B).

       (364) The Senate amendment but not House bill allows the 
     Secretary to give preferences to underrepresented groups.
     HR
       (365) The House bill requires a service obligation of 2 
     years for every year of assistance provided while the Senate 
     amendment requires 1 year of service for one year of support. 
     The House bill also contains a provision on leadership 
     preparation. The Senate amendment, but not the House bill, 
     allows scholarships for its new general educator program.
     HR with an amendment to read as follows:
       ``(i) Service obligation.--

       ``(I) In general.--Each application for funds under 
     subsections (b), (c), and (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.

[[Page H9957]]

       ``(II) Special rule.--Notwithstanding paragraph (1) of this 
     subsection, the Secretary may reduce or waive the service 
     obligation requirement if the Secretary determines that the 
     service obligation is acting as a deterrent to the 
     recruitment of students into special education or a related 
     field.
       ``(III) Oversight.--The Secretary shall be responsible for 
     ensuring that individuals participating in these programs 
     fulfill their service obligations.''

       (366) The Senate amendment includes a separate 
     authorization for this section, while the House bill contains 
     an authorization for the entire subpart.
     HR
       (367) The House bill and Senate amendment include similar 
     provisions, except the Senate's list of authorized activities 
     falls in subsection (e).
     HR
       (368) The House bill and Senate amendment contain similar 
     provisions, with the House bill requiring a comprehensive 
     plan to be published for public comment and the Senate 
     amendment requiring consultation with specified groups.
       The House bill requires an interim report be published in 2 
     and \1/2\ years while the Senate amendment requires the 
     interim report in 3 years.
     SR with an amendment:
       Amend heading of (b) to ``Assessment of National 
     Activities''.

     HR on 3 years for interim report
       (369) The Senate amendment, but not the House bill, 
     requires a study on alternate assessments and alternative 
     achievement standards.
     HR
       (370) There are no differences between the House bill and 
     Senate amendment.
     LC
       (371) The House bill and Senate amendment include similar 
     provisions, except the House's list of authorized activities 
     is in (b).
       The Senate amendment, but not the House bill, requires a 
     study on the 0-6 program in Part C.
     HR
       (372) The Senate amendment allows the Secretary to reserve 
     funds under Parts B and C to pay for the studies and 
     evaluations, while the House bill requires studies and 
     evaluations to be paid out of the authorizations of 
     appropriations for this subpart.
     SR
       (373) The House bill includes one authorization of 
     appropriations for this subpart, while the Senate amendment 
     included authorizations for each section.
     HR
       (374) There are no significant differences between the 
     House and Senate amendments.
     HR with an amendment:
       Insert a new paragraph (1) to read as follows and renumber 
     accordingly:
       ``(1) children with disabilities and their parents receive 
     training and information designed to assist the children in 
     meeting developmental and functional goals and challenging 
     academic achievement goals, and in preparing to lead 
     productive independent adult lives;''.

       (375) The House bill and Senate amendment contain similar 
     provisions with the House bill adding as a required activity 
     to meet the needs of low-income and limited English 
     proficient students and the Senate amendment adding 
     requirements for the center to explain mediation requirements 
     to parents, assist parents and children of their rights upon 
     reaching their majority, partner with community parent 
     resource centers, and report on the number of parents served 
     through alternative dispute resolution.
     HR with an amendment:
       Insert as a new paragraph (3) to read as follows and 
     renumber accordingly:
       ``(3) ensure that the training and information provided 
     meets the needs of low-income parents and parents of children 
     with limited English proficiency;''.
     HR with an amendment:
       Strike ``research based practices and interventions'' and 
     insert ``practices and interventions based on scientifically 
     based research, to the extent practicable,'' in (3)(D).
     HR with an amendment:
       Insert as a new (F) to read as follows and reorder 
     accordingly:
       ``(F) participate in activities at the school level that 
     benefit their children;''.
     HR with an amendment:
       Insert in paragraph (10) [not renumbered]: ``and the 
     Institute of Education Sciences'' after ``section 663''.
     HR with an amendment:
       Add ``as appropriate under state law'' after ``majority'' 
     in paragraph (6).
     HR with an amendment:
       Insert at the end of paragraph (7) [not renumbered]: ``, 
     including the resolution session described in section 
     615(e);''.

       (376) The House bill allows as an optional activity 
     information to assist parents and children of their rights 
     upon reaching their majority.
     HR
       (377) The Senate amendment, but not the House bill, 
     requires coordination of grantees in a large State.
     HR with an amendment:
       Insert ``, including those that work with low-income 
     parents and parents of children with limited English 
     proficiency'' at the end of (d)(2).

       (378) The House bill, but not the Senate amendment, 
     requires the advising board to advise the governing board of 
     the organization.
     HR
       (379) The House bill, but not the Senate amendment, 
     requires that the board ensure that members include low-
     income parents and parents of limited English proficient 
     students.
       The Senate amendment, but not the House bill, eliminates 
     special governing committees. The House bill, but not the 
     Senate amendment, requires the development of a memorandum 
     explaining the role of the board and the center while the 
     Senate amendment requires the center to develop a specific 
     mission.
     HR with an amendment:
       Insert ``, including low-income parents and parents of 
     children with limited English proficiency'' at the end of 
     (g)(1)(C).

       (380) The Senate amendment, but not the House bill, 
     includes functional goals, and requires that a majority of 
     members are parents of children with disabilities age birth 
     through 26.
     HR
       (381) The Senate amendment limits the national technical 
     assistance grantee to one parent organization while the House 
     bill allows multiple grants and a variety of eligible 
     agencies.
     SR
       (382) The Senate amendment, but not the House bill, 
     includes extra requirements for a national and regional 
     network of parent training and information technical 
     assistance centers.
     SR with amendment:
       Add Senate (d) to House bill.

       (383) The House bill, but not the Senate amendment, adds 
     the support of implementation of research and the uses of 
     technology and the Senate amendment, but not the House bill, 
     adds support of internet based communications for students 
     with cognitive disabilities.
     HR with an amendment as follows:
       Strike ``and'' and insert ``, (c) and (d)'' after 
     ``subsections (b)'' in subsection (a).

       (384) The House bill allows the Secretary to support these 
     activities and the Senate amendment requires the Secretary to 
     support these activities. The Senate amendment also limits 
     the captioning of programs only if captioning has not 
     previously been provided or paid for.
     HR with an amendment as follows:
       Insert ``; and Instructional Materials'' after 
     ``Activities'' in the heading of subsection (c).
     HR with an amendment as follows:
       Strike (1)(D).
     HR with an amendment as follows:
       Insert subsection (e) to read as follows:
       ``(e) National Instructional Materials Access Center.--
       ``(1) In General.--Notwithstanding subsection (d), in 
     carrying out this section, the Secretary shall support, 
     through the American Printing House for the Blind, a center 
     known as the Instructional Materials Access Center not later 
     than one year after the date of enactment.
       ``(2) Responsibilities.--The duties of the National 
     Instructional Materials Access Center are the following:
       ``(A) To receive and maintain a catalog of print 
     instructional materials prepared in the national 
     instructional materials accessibility standard, as 
     established by the Secretary, made available to the center by 
     the textbook publishing industry, State educational agencies, 
     and local educational agencies;
       ``(B) To provide access to print instructional materials, 
     including textbooks, in accessible media, free of charge, to 
     visually impaired and print disabled students in elementary 
     schools and secondary schools, in accordance with such terms 
     and procedures as the National Instructional Materials Access 
     Center may prescribe; and
       ``(C) To develop, adopt and publish procedures to protect 
     against copyright infringement, with respect to the print 
     instructional materials provided under 612(a)(22) and section 
     613(a)(6).
       ``(3) Definitions.--In this section--
       ``(A) National instructional materials accessibility 
     standard.--The term `National Instructional Materials 
     Accessibility Standard' means the technical standards 
     described in paragraph (2), to be used in the preparation of 
     electronic files suitable and used solely for efficient 
     conversion into specialized formats.
       ``(B) Blind or other persons with print disabilities.--The 
     term `blind or other persons with print disabilities' means 
     children served under this Act and who may qualify in 
     accordance with the Act entitled `An Act to provide books for 
     the adult blind,' approved March 3, 1931 (2 U.S.C. 135a; 46 
     Stat. 1487) to receive books and other publications produced 
     in specialized formats.
       ``(C) Specialized formats.--The term `specialized formats' 
     has the meaning given the term in section 121 (c) (3) of 
     title 17, United States Code.

[[Page H9958]]

       ``(D) Print instructional materials.--The term `print 
     instructional materials' means printed textbooks and related 
     printed core materials that are written and published 
     primarily for use in elementary school and secondary school 
     instruction and are required by a State educational agency or 
     local educational agency for use by students in the 
     classroom.
       ``(4) Applicability.--This section shall apply to print 
     instructional materials published after the date on which the 
     final rule establishing the National Instructional Materials 
     Accessibility Standard is published in the Federal Register.
       ``(5) Liability of the secretary.--Nothing in this 
     subsection shall be construed to establish a private right of 
     action against the Secretary of Education for failure to 
     provide instructional materials directly, or for failure by 
     the National Instructional Materials Access Center to perform 
     the functions of such Center, or to otherwise authorize a 
     private right of action related to the performance by 
     the Center, including through the application of the 
     rights of children and parents established under this 
     Act.''
     HR with an amendment as follows:
       Insert ``not'' before ``been fully funded by other 
     sources'' in paragraph (2).

       (385) The House bill, but not the Senate amendment, 
     contains more specific requirements for eligible entities of 
     the distributors of textbooks.
     HR with an amendment as follows:
       Redesignate subsection (e) as subsection (f).

       (386) The House bill lays out set figures for 
     authorizations for the subpart and for each section, while 
     the Senate authorizes such sums for the section.
     HR
       (387) The Senate amendment requires the Secretary to 
     establish an electronic standard for the preparation of 
     electronic files for instructional materials and creates a 
     national center to disseminate instructional materials to 
     some students with disabilities. The House bill does not 
     include this provision.
     SR with an amendment:
       Add at the end of this Act the following technical 
     amendments in the miscellaneous provisions section to amend 
     17 U.S.C. Sec. 121 as follows:
       Redesignate subsection (c) to (d)
       Insert new paragraph (c) to read as follows:
       ``(c) Notwithstanding the provisions of section 106, it is 
     not an infringement of copyright for a publisher of print 
     instructional materials for use in elementary and secondary 
     schools to create and distribute to the National 
     Instructional Materials Access Center copies of the 
     electronic files described in sections 612(a)(22)(B), 
     613(a)(6), and section 674(d) of the Individuals with 
     Disabilities Education Reform Act of 2004, containing the 
     contents of print instructional materials using the 
     Instructional Material Accessibility Standard (as defined in 
     section 674(d) of said Act, when required to do so by any 
     State or local educational agency, if the publisher had the 
     right to publish such print instructional materials in print 
     formats and if such copies are used solely for reproduction 
     or distribution of the contents of such print instructional 
     materials in specialized formats.''
     SR with amendment as follows:
       Amend the definition of ``specialized formats'' in 
     subsection (d) (currently subsection (c)) and add the 
     definition from ``print instructional materials'' as follows:
       `` `Specialized formats' means braille, audio, or digital 
     text which is exclusively for use by blind or other persons 
     with disabilities. With respect to instructional materials, 
     `specialized formats' also means large print formats when 
     they are distributed exclusively for use by blind or other 
     persons with disabilities.
       ``Print Instructional Materials.--The term `print 
     instructional materials' has the meaning given to it under 
     section 674(d)(3)((D) of the Individuals with Disabilities 
     Education Reform Act of 2004.

       (388) The Senate amendment creates a new $50 million 
     competitive program to make grants to LEAs to establish 
     alternative educational settings and provide behavioral 
     supports to students with disabilities. The House bill does 
     not include this program.
     HR with amendment:
       Insert the following at the end of Subpart 2:
     ``SEC. 674. INTERIM ALTERNATIVE EDUCATIONAL SETTINGS, 
         BEHAVIORAL SUPPORTS, AND SYSTEMIC SCHOOL INTERVENTIONS.
       ``(a) Program Authorized.--The Secretary may award grants 
     to, and enter into contracts and cooperative agreements to 
     support safe learning environments that support academic 
     achievement for all students by improving the quality of 
     interim alternative educational settings, and providing 
     increased behavioral supports and research-based, systemic 
     interventions in schools.
       ``(b) Authorized Activities.--In carrying out this section, 
     the Secretary may support activities to
       ``(1) establish, expand or increase the scope of behavioral 
     supports and systemic interventions by providing for 
     effective, research-based practices, including--
       ``(A) training for school staff on early identification, 
     prereferral, and referral procedures;
       ``(B) training for administrators, teachers, related 
     services personnel, behavioral specialists, and other school 
     staff in positive behavioral interventions and supports, 
     behavioral intervention planning, and classroom and student 
     management techniques;
       ``(C) joint training for administrators, parents, teachers, 
     related services personnel, behavioral specialists, and other 
     school staff on effective strategies for positive behavioral 
     interventions and behavior management strategies that focus 
     on the prevention of behavior problems;
       ``(D) developing or implementing specific curricula, 
     programs, or interventions aimed at addressing behavioral 
     problems;
       ``(E) stronger linkages between school based services and 
     community-based resources, such as community mental health 
     and primary care providers; or
       ``(F) using behavioral specialists, related services 
     personnel, and other staff necessary to implement behavioral 
     supports; or
       ``(2) to improve interim alternative educational settings 
     by--
       ``(A) improving the training of administrators, teachers, 
     related services personnel, behavioral specialists, and other 
     school staff (including ongoing mentoring of new teachers) in 
     behavioral supports and interventions;
       ``(B) attracting and retaining a high quality, diverse 
     staff;
       ``(C) providing for referral to counseling services;
       ``(D) utilizing research-based interventions, curriculum, 
     and practices;
       ``(E) allowing students to use instructional technology 
     that provides individualized instruction;
       ``(F) ensuring that the services are fully consistent with 
     the goals of the individual student's IEP;
       ``(G) promoting effective case management and collaboration 
     among parents, teachers, physicians, related services 
     personnel, behavioral specialists, principals, 
     administrators, and other school staff;
       ``(H) promoting interagency coordination and coordinated 
     service delivery among schools, juvenile courts, child 
     welfare agencies, community mental health providers, primary 
     care providers, public recreation agencies, and community-
     based organizations; or
       ``(I) providing for behavioral specialists to help students 
     transitioning from interim alternative educational settings 
     reintegrate into their regular classrooms.
       ``(c) Definition of Eligible Entity.--In this section, the 
     term `eligible entity' means--
       ``(1) a local educational agency; or
       ``(2) a consortium consisting of a local educational agency 
     and 1 or more of the following entities:
       ``(A) another local educational agency;
       ``(B) a community-based organization with a demonstrated 
     record of effectiveness in helping children with disabilities 
     who have behavioral challenges succeed;
       ``(C) an institution of higher education;
       ``(D) a community mental health provider; or
       ``(E) an educational service agency.
       ``(d) Applications.--Any eligible entity that wishes to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under this section shall
       ``(1) submit an application to the Secretary at such time, 
     in such manner, and containing such information as the 
     Secretary may require; and
       ``(2) involve parents of participating students in the 
     design and implementation of the activities funded under this 
     section.
       ``(e) Report and Evaluation.--Each eligible entity 
     receiving a grant under this Act shall prepare and submit 
     annually to the Secretary of Education a report on the 
     outcomes of the activities assisted under the grant.''

       Report language: ``The Conferees intend for this program to 
     have a systemic impact on a school environment rather than 
     provide isolated assistance to children with disabilities. 
     The Conferees believe a systemic, research-based approach can 
     greatly benefit special needs children while also providing 
     an incidental benefit to non-disabled children, school staff, 
     parents and others in the school community.
       ``The Conferees instruct the Department of Education to 
     establish an easily accessible website with information on 
     best practices for interim alternative educational settings, 
     behavior supports, and systemic school interventions to help 
     children with behavioral and emotional disabilities.''
     Title II
       (389) The Senate amendment includes a new $50 million 
     reservation of Rehabilitation Act State grants for States to 
     provide transition services to students with disabilities 
     through the VR system (beginning in the first year the amount 
     appropriated exceeds the FY04 amount by $100,000,000). The 
     House bill does not include this provision.
     SR
     Title V (House bill)
       (390) The House bill includes a sense of Congress that safe 
     and drug free schools are essential for the learning and 
     development of children with disabilities. The Senate 
     amendment does not include this provision.
     HR
       (391) The House bill requires a study on the costs to 
     States of complying with IDEA. The Senate amendment does not 
     include this provision.

[[Page H9959]]

     HR
     Title III
       (392) The House bill and Senate amendment contain similar 
     provisions creating a National Center for Special Education 
     Research at the Institute for Education Science. However, the 
     House bill contains this language in Section 663.
     HR
       (393) The Senate amendment, but not the House bill, 
     contains a separate provision on the mission of the NCSER. 
     The House bill and Senate amendment have differing language 
     on the grant application process.
     HR
       (394) The House bill lists similar authorized activities as 
     the Senate amendment, which contains those activities under 
     the ``duties'' section.
     HR
       (395) The Senate amendment, but not the House bill, 
     contains a ``standards'' section.
     HR
       (396) The Senate amendment contains more detailed plan 
     provisions than the House bill, and contains an 
     implementation provision while the House does not.
     HR
     Title IV
       (397) The Senate amendment creates a commission on 
     universal design and requires reports to be submitted to 
     Congress on universal design and accessibility of 
     instructional materials. The House bill does not include this 
     provision.
     SR
     Title V
       (399) The Senate amendment, but not the House bill, 
     includes an amendment to the Children's Health Act to include 
     the Secretary of Education as a required partner in the 
     longitudinal study and requires that the study be in 
     compliance with FERPA requirements.
     HR
       (398) The Senate amendment, but not the House bill, 
     includes this required study on medication.
     SR
     General
       (400) Add enactment clause
     LC
     From the Committee on Education and the Workforce, for 
     consideration of the House bill and the Senate amendment, and 
     modifications committed to conference:
     John Boehner,
     Michael N. Castle,
     Vernon J. Ehlers,
     Ric Keller,
     Joe Wilson,
     George Miller,
     Lynn C. Woolsey,
     Major R. Owens,
     From the Committee on Energy and Commerce, for consideration 
     of sec. 101 and title V of the Senate amendment, and 
     modifications committed to conference:
     Joe Barton,
     Michael Bilirakis,
     John D. Dingell,
     From the Committee on the Judiciary, for consideration of 
     sec. 205 of the House bill, and sec. 101 of the Senate 
     amendment, and modifications committed to conference:
     F. James Sensenbrenner, Jr.,
     Lamar Smith,
     John Conyers,
                                Managers on the Part of the House.

     Judd Gregg,
     Bill Frist,
     Michael B. Enzi,
     Lamar Alexander,
     Christopher Bond,
     Mike DeWine,
     Pat Roberts,
     Jeff Sessions,
     John Ensign,
     Lindsey Graham,
     John Warner,
     Edward Kennedy,
     Christopher J. Dodd,
     Tom Harkin,
     Barbara A. Mikulski,
     Jeff Bingaman,
     Patty Murray,
     Jack Reed,
     John Edwards,
     Managers on the Part of the Senate.

                          ____________________