[Congressional Record (Bound Edition), Volume 150 (2004), Part 7]
[Senate]
[Pages 9375-9435]
[From the U.S. Government Publishing Office, www.gpo.gov]




    INDIVIDUALS WITH DISABILITIES EDUCATION IMPROVEMENT ACT OF 2003

  The PRESIDING OFFICER. Under the previous order, the Senate will 
resume consideration of S. 1248, which the clerk will report.
  The assistant legislative clerk read as follows:

       A bill (S. 1248) to reauthorize the Individuals with 
     Disabilities Education Act, and for other purposes.

  Pending:

       Gregg (for Santorum) amendment No. 3149, to provide for a 
     paperwork reduction demonstration.


                           Amendment No. 3150

  Mr. GREGG. Senator Kennedy and I have a number of technical and 
conforming amendments that have been cleared on both sides of the aisle 
and put into a managers' package. Therefore, I send an amendment to the 
desk and ask for its immediate consideration.
  The PRESIDING OFFICER. Without objection, the pending amendment is 
set aside.
  The clerk will report.
  The legislative clerk read as follows:

       The Senator from New Hampshire [Mr. Gregg], for himself and 
     Mr. Kennedy, proposes an amendment numbered 3150.

  Mr. GREGG. I ask unanimous consent that the reading of the amendment 
be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

              (Purpose: To provide a manager's amendment)

       On page 382, line 21, strike ``or the post-surgical'' and 
     all that follows through page 383, line 2, and insert ``or 
     the replacement of such device.''.
       On page 398, line 21, strike ``or the post-surgical'' and 
     all that follows through page 399, line 2, and insert ``or 
     the replacement of such device.''.
       On page 408, between lines 11 and 12, insert the following:

     ``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 Act to the extent that such 
     grants continue to be available to States and local 
     educational agencies under this Act.
       On page 451, line 19, strike the comma after ``consult''.
       On page 453, line 25, strike ``affirmations'' and insert 
     ``affirmation''.
       On page 503, line 2, strike ``educational''.
       On page 503, line 11, strike ``educational''.
       On page 504, line 9, strike ``educational''.
       On page 504, line 21, strike ``educational''.
       On page 509, line 24, strike ``prereferral''.
       On page 515, strike lines 10 through 15, and insert the 
     following:
       ``(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;''.
       On page 553, lines 13 and 14, strike ``statute of 
     limitations'' and insert ``timeline''.
       On page 553, line 14, strike ``statute of limitations'' and 
     insert ``timeline''.
       On page 615, line 13, insert ``and supervised'' after 
     ``appropriately trained''.
       On page 664, lines 11 and 12, strike ``administrators, 
     principals, and teachers'' and insert ``personnel''.
       On page 669, line 10, strike ``and'' after the semicolon.
       On page 669, line 17, strike the period and insert ``; 
     and''.
       On page 669, between lines 17 and 18, insert the following:
       ``(C) encourage collaborative and consultative models of 
     providing early intervention, special education, and related 
     services.
       On page 671, line 8, strike ``and administrators'' and 
     insert ``, administrators, and, in appropriate cases, related 
     services personnel''.
       On page 672, line 11, strike ``providing'' and insert 
     ``provide''.
       On page 672, line 14, strike ``and'' after the semicolon.
       On page 672, line 17, strike the period and insert ``; 
     and''.
       On page 672, between lines 17 and 18, insert the following:
       ``(D) Train early intervention, preschool, and related 
     services providers, and other relevant school personnel, in 
     conducting effective individualized family service plan 
     (IFSP) meetings.
       On page 702, line 24, insert ``early childhood providers,'' 
     after ``ability of''.
       On page 702, line 25, insert ``related services 
     personnel,'' after ``administrators,''.
       On page 720, lines 5 and 6, strike ``alternate'' and insert 
     ``alternative''.
       On page 720, lines 22 and 23, strike ``Students With 
     Significant Disabilities'' and insert ``Students Who Are Held 
     to Alternate Achievement Standards''.
       On page 721, strike lines 1 through 3, and insert the 
     following:
       ``(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 alternate achievement 
     standards;
       On page 721, strike lines 6 through 8, and insert the 
     following:
       ``(3) the alignment of alternate assessments and 
     alternative achievement standards to State academic content 
     standards in reading, mathematics, and science; and
       On page 753, line 16, insert ``(as appropriate when 
     vocational goals are discussed)'' after ``participation''.
       On page 756, line 6, insert ``vocational'' after 
     ``school''.
       On page 756, line 7, insert ``vocational'' after 
     ``school''.
       On page 764, line 13, strike ``(C)'' and insert ``(A)''.
       On page 766, after line 20, insert the following:

     SEC. 302. 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. 303. REGIONAL ADVISORY COMMITTEES.

       Section 206(d)(3) of the Education Sciences Reform Act of 
     2002 (20 U.S.C. 9605(d)(3)) is amended by striking 
     ``Academy'' and inserting ``Institute''.
       On page 777, after line 15, insert the following:

                        TITLE __--MISCELLANEOUS

     SEC. __01. GAO REVIEW OF CHILD MEDICATION USAGE.

       (a) Review.--The Comptroller General shall conduct a review 
     of--
       (1) the extent to which personnel in schools actively 
     influence parents in pursuing a diagnosis of attention 
     deficit disorder and attention deficit hyperactivity 
     disorder;
       (2) the policies and procedures among public schools in 
     allowing school personnel to distribute controlled 
     substances; and
       (3) the extent to which school personnel have required a 
     child to obtain a prescription for substances covered by 
     section 202(c) of the Controlled Substances Act (21 U.S.C. 
     812(c)) to treat attention deficit disorder, attention 
     deficit hyperactivity disorder, or other attention deficit-
     related illnesses or disorders, in order to attend school or 
     be evaluated for services under the Individuals with 
     Disabilities Education Act.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall prepare 
     and submit to

[[Page 9376]]

     Congress a report that contains the results of the review 
     under subsection (a).

  Mr. GREGG. I ask unanimous consent that the Senate consider and agree 
to amendment No. 3150.
  The PRESIDING OFFICER. The question is on agreeing to the amendment.
  The amendment (No. 3150) was agreed to.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. KENNEDY. A very brief word on the technical amendment, the 
managers' amendment. We give assurance to all of our colleagues that it 
is a technical amendment. All the matters that are in that managers' 
amendment are directly related to provisions in the legislation. I give 
the assurance to our colleagues that is the nature and description of 
the managers' amendment, and we appreciate their willingness to accept 
it.
  We have several of our colleagues on their way over who wish to 
address the Senate on this issue. Then we will hopefully move along to 
final passage somewhere in the noon area.
  Mr. GREGG. Mr. President, for Members' information, we expect to have 
a vote on final passage around 12:10. In fact, we may have a unanimous 
consent, although I will withhold that for a moment.
  I ask unanimous consent that the time between now and 12:10 be 
equally divided between the sides.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. GREGG. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. GREGG. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. GREGG. Mr. President, I ask unanimous consent that once Senator 
Santorum's amendment is modified and we agree to it, at 12:10 today the 
Senate proceed to a vote on passage of H.R. 1350, with all provisions 
of the original agreement in place, and I ask for the yeas and nays.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Is there a sufficient second?
  There is a sufficient second.
  The yeas and nays were ordered.
  Mr. GREGG. I yield the floor.


                             Stay Put Rule

  Mr. McCAIN. I would like to commend the bill managers for reaching a 
bipartisan compromise on this important issue. Recognizing the 
substantial challenges the current law has posed to many schools and 
school districts, this bill seeks to strike a very difficult balance 
between the interests of disabled children and their families and the 
schools and school districts. However, despite the substantial 
improvements this legislation makes over current law, issues of concern 
remain among a number of interested parties, including education groups 
in Arizona.
  I am also concerned about some of the unintended consequences that 
have arisen as a result of the Federal restrictions placed on school 
districts concerning the manner in which they are allowed to discipline 
students with special needs. For example, an Arizona school district 
recently identified a number of students involved in the sale and 
distribution of illegal drugs on school property, a very serious 
incident that placed the other students and the teachers at that school 
at great risk. All of the students involved in the incident were 
expelled, with the exception of one student who has a mild disability.
  I recognize the Senator from New Hampshire already has worked to 
include language in this bill to reverse the ``stay put rule,'' which 
schools, school districts, and the Arizona Superintendent of Education, 
Tom Horne, have expressed substantial frustration over. I want to 
commend the sponsor's efforts and hope to work with him to ensure that 
schools are not prevented from taking action to discipline children as 
appropriate, including those enrolled in IDEA. I know this issue is 
also of concern to my colleague from Arizona.
  Mr. KYL. I would also like to congratulate the senior Senator from 
New Hampshire for his success in getting this legislation this far 
through hard work and bipartisanship. We recognize that securing 
consensus necessitated compromise on a position we all share: that 
schools should be able to maintain a single standard for discipline. 
Like Senator McCain, I am very pleased that this legislation repeals 
the ``stay-put rule,'' a major priority of Superintendent Horne and 
other education leaders in our state.
  Mr. McCAIN. I thank the Senator. IDEA is centered on an 
individualized approach to educating children with special needs. 
Disciplining those students whose actions endanger other students and 
faculty also should be done on an individual basis--a one size-fits-all 
Federal approach to discipline disregards the individual nature of the 
actions of the students involved, and is not the best approach.
  Another issue that concerns schools and administrators in Arizona is 
Section 616, regarding monitoring, technical assistance, and 
enforcement. It would allow the Secretary of Education to refer a case 
to the Department of Justice if the Secretary determines the State has 
shown a ``significant lack of progress'' or is in ``substantial 
noncompliance'' or ``egregious noncompliance'' with IDEA. Schools from 
across Arizona are concerned that the language in this bill is too 
vague and could lead to excessively burdensome litigation if a State is 
labeled to be ``significantly noncompliant'' or ``egregiously 
noncompliant.''
  Mr. KYL. I certainly understand the concern that this provision could 
have unintended consequences. I hope that in conference this language 
can be clarified to focus on the achievement of outcomes through the 
development of a sound remedial plan, overseen by the Department of 
Education. Many of us have expressed concern over the cumbersome 
litigation sometimes associated with IDEA. This language could make the 
status quo worse--tying up critical personnel and diverting scarce 
resources, without ensuring positive outcomes.
  Mr. McCAIN. I have also heard substantial concern from groups in 
Arizona regarding language that may compel states to pay for lawsuits 
against State or local education entities. I know these concerns also 
have been expressed to my colleague from Arizona.
  Mr. KYL. The Chairman of the Committee on Health, Education, Labor 
and Pensions, perhaps drawing on his experience as a Governor, has been 
eloquent in detailing the burdens this Federal statute has placed on 
States. I trust that as the final bill language is crafted, he and his 
colleagues will be striving to ensure that the need to provide parents 
with appropriate mechanisms for vindicating their due process rights 
will be balanced appropriately against the imperative not to impose 
excessive new burdens on state governments.
  Mr. GREGG. I understand your concerns and will take them to 
conference.
  Mr. McCAIN. I thank the sponsor of this important legislation and 
greatly appreciate his willingness to ensure that these important 
issues are addressed as this measure continues through the legislative 
process.
  Mrs. LINCOLN. Mr. President, first I commend my colleagues on the 
Senate Health, Education, Labor, and Pensions Committee for all of your 
hard work on this important piece of legislation and for bringing a 
bipartisan bill before the full Senate.
  When the Individuals with Disabilities in Education Act, or IDEA, was 
enacted in 1975 it brought with it the promise that children with 
disabilities would have access to the same quality education as 
nondisabled students. Over the last 30 years, IDEA has advanced the 
inclusion of students with disabilities into general education 
classrooms and has given nearly 6 million students nationwide access to 
services that address their special needs.
  When Congress passed IDEA nearly 30 years ago, they committed to 
providing states with 40 percent of the funding necessary to implement 
this law. Much

[[Page 9377]]

to my dismay, Congress has failed our schools and the students they 
serve by providing them with a meager 19 percent of the funding as of 
fiscal year 2004. It was my hope that this current reauthorization 
would include mandatory full funding for IDEA because I believe that 
schools have waited long enough for the Federal Government to fulfill 
the promise made to them so many years ago.
  I was proud to support an amendment proposed by my colleague from 
Iowa yesterday, which would have provided mandatory full funding of 
IDEA. Unfortunately, the amendment failed by a small margin. I 
supported another amendment, however, offered by my colleague from New 
Hampshire to provide full discretionary funding for IDEA, which passed 
the Senate. I am proud that the Senate made full funding for IDEA a 
priority, and I look forward to working with my colleagues throughout 
the appropriations process to make full funding a reality.
  There are several important aspects of this bill, which will improve 
the educational experience of students, parents, and teachers. I am 
pleased that this bill will reduce the paperwork burden on teachers. I 
have heard from many special education teachers in my State of Arkansas 
that spend an inordinate amount of time on paperwork and this 
legislation would provide them with welcome relief so that they can 
focus on student performance.
  This bill will also streamline discipline procedures, which I believe 
will make schools safer and provide school administrators with 
increased flexibility. Additionally, it will improve parental 
involvement by creating parent and community information centers with 
the objective of encouraging parents and schools to work together and 
resolve disputes in a smooth and efficient way. I am also pleased that 
this bill provides more resources to schools to better train teachers 
and parents. This provision is of particular importance to Arkansas 
where school districts are trying to give financial assistance to 
teachers for continuing education but are struggling because they face 
tough budget times.
  I would also like to reinforce that every single child's learning 
experience is impacted by their community and school environment. Let 
us not forget that children with disabilities contribute an 
extraordinary amount to that learning environment. Students with 
disabilities deserve every opportunity to achieve educational success 
so that they can take on productive jobs and lead independent lives. 
IDEA is a critical law in ensuring that these opportunities are 
available, and I believe the bill before the Senate today will help 
educators, parents, and students achieve success in the classroom and 
beyond.
  Mr. CRAIG. Mr. President, regulations applying IDEA are complex, and 
I applaud the work of my colleagues in trying to make these regulations 
a little easier for students, parents, and schools. This bill is a 
clear signal that the Senate is concerned about the welfare of our 
children with special needs.
  S. 1248 helps our students by providing early access to services and 
support while working to reduce the misidentification of nondisabled 
children. This bill aims to make things easier for parents by allowing 
parents and schools to make changes to a student's individualized 
education plan, IEP, without calling an entire IEP meeting. S. 1248 
should also help to relieve the burden on schools that are often 
associated with special education regulations. It includes provisions 
to improve discipline and school safety, reduce paperwork, and simplify 
funding for grants to State agencies.
  Mr. President, as you know, when IDEA was signed into law, Congress 
committed to contribute up to 40 percent of the costs associated with 
special education. We have failed miserably in this. One important 
provision in this bill is a plan to authorize the Congress to fund its 
40 percent portion completely by the year 2011. I am pleased to report 
our success in the Senate and pledge my commitment to seeing the 
Federal Government contributes its full share.
  Mr. HATCH. Mr. President, I rise today to express my support for S. 
1248, the IDEA Reauthorization Act.
  A concerned Utah parent called one of the school districts yesterday 
to ask for help. Her son is being released from a 24-hour mental health 
facility. He is not ready for a regular class setting, but there isn't 
room for him to be accommodated in a self-contained setting even though 
that school district is trying to provide a quality education for all 
students, including those with special needs.
  ``We love them, even though sometimes they burn us out,'' said one of 
our outstanding (and overworked) special education teachers. She is 
dedicated to these children who are guaranteed an education under IDEA, 
the Individuals with Disabilities in Education Act.
  All students identified for special education present unique 
challenges. There are students with specific learning disabilities that 
are mild to moderate. Of these, many will be successfully educated and 
have futures filled with higher education or specialized technical 
training, careers, and families. Even many of the students with 
profound, significant disabilities will become wage earners, thanks to 
a great nation that understands and upholds the right of all students 
to an education. Utah is particularly successful with those students 
because of strong family and community-based support. Though they may 
never be able to live in complete independence, they realize an 
excellent measure of accomplishment and contribution.
  Of major concern are students such as the young teen who just walked 
out the front door of the mental health facility. He is among a growing 
number of students with severe emotional problems. Their disabilities 
may prevent them from becoming wage earners, good parents, and 
responsible citizens. Many will end up in prison. Unfortunately, there 
is a lot of lost potential here. But they will not be lost if we can 
tap into their potential.
  With this important reauthorization, I have had the benefit of input 
from various groups and individuals, including my own Disability 
Advisory Committee in Utah, made up of State and local officials and 
representatives from organizations specializing in disability advocacy. 
The Utah State Legislature has been in the forefront of the debate 
about the Federal funding of education as they continue to take the 
responsibility of providing an education to every child in my State.
  Funding special education is an important priority. I believe that 
the Federal Government's responsibility is to do its utmost, through 
the appropriations process, to direct funds to the States, who are 
certainly in the best position to decide how best to utilize these 
funds. Although appropriations for IDEA part B grants to states have 
increased significantly over the last 9 years, funding still falls 
short of the amount that would be necessary to provide maximum grants 
to all States.
  I agree that we need to put IDEA on the path of full funding with the 
goal of reaching the Federal Government's promise of 40 percent. While 
funding since 1996 has quadrupled, we are only halfway there. For this 
reason, I supported Chairman Judd Gregg's funding amendment, passed by 
a vote of 96-1 yesterday, that sets increasing discretionary 
authorizations for special education grants to States so that Congress 
will be on track to meet 100 percent of the full funding commitment by 
2011.
  I am heartened that we have the support of the appropriators to reach 
the commitment. I am satisfied that the President will keep education 
as one of his highest priorities. Be assured that I will be keeping a 
watchful eye on this funding as we review it every year. If we fall 
short, I will be prepared to revisit this issue. It is not fair for 
States and localities to be saddled with Federal mandates they can ill 
afford. Congress should live up to its commitment, which I believe we 
have with passage of the Gregg amendment and assurances of our 
appropriators.
  While I am on the topic of the unwise burdens the Federal Government 
imposes on States, I would be remiss if I did not emphasize the 
tremendous costs of overregulation. Paperwork saps valuable time away 
from educators and diverts their number one

[[Page 9378]]

focus: educating Utah's students. Senator Rick Santorum's amendment 
will give States the opportunity to reduce paperwork burdens associated 
with IDEA requirements and increase the resources available for 
improving results for children with disabilities. That is why I 
strongly support it.
  Indeed, reduction in paperwork is also a priority for the teachers. 
We need to encourage individuals to become qualified special education 
teachers. Take for example Utah--which is unquestionably a great place 
to live. Even there, it is difficult to find teachers to fill these 
crucial positions. It is even more difficult in rural districts.
  I am confident that under IDEA reauthorization, we can address these 
deficiencies by reducing paperwork, providing resources for recruitment 
of new teachers and for training, and making classrooms safer.
  The IDEA reauthorization, albeit imperfect, provides a pathway to 
success for our greatest asset: all of America's children.
  Mr. DODD. Mr. President, I rise today in support of the legislation 
before us to reauthorize the Individuals with Disabilities Education 
Act--IDEA. I want to start by thanking my fellow committee members and 
their staff for all of their hard work in putting together the 
bipartisan legislation we are considering today. While we may still 
have some disagreements about the bill, getting to this point in a 
bipartisan way is no small achievement, and I know we are all better 
for it.
  Today, nothing pleases me more than to introduce, with my many of my 
colleagues, the Individuals with Disabilities Education Improvement Act 
of 2003. This bill will ensure that students with disabilities get the 
services they are entitled to while providing school systems with a 
greater degree of flexibility in implementing the law.
  The Individuals with Disabilities Education Improvement Act of 2003 
emphasizes accountability and improved results, improves monitoring and 
enforcement of the law, and works to reduce litigation by providing new 
opportunities for parents and schools to address concerns and disputes. 
The bill reduces paperwork by streamlining State and local paperwork 
requirements and clarifying that no information is required in an 
individualized education plan--IEP--beyond what Federal law requires. 
Like No Child Left Behind, this bill increases and improves 
opportunities for parental involvement and supports teachers in 
becoming ``highly qualified'' to do their jobs.
  The Individuals with Disabilities Education Improvement Act provides 
earlier access to services and supports for infants, toddlers and 
preschoolers with disabilities. It also properly puts added emphasis on 
transition services so that special education students leave the system 
ready to be full productive citizens, whether they choose to go on to 
college or a job.
  These are the things that the Senate bill does. Sadly, there is one 
glaring provision missing. This bill does not contain a provision to 
provide mandatory full-funding of IDEA; A provision that my colleagues 
Senator Harkin and Hagel tried to get incorporated into the bill 
yesterday.
  Almost 30 years ago, Congress passed the Individuals with 
Disabilities Education Act to help States provide all children with 
disabilities with a free, appropriate public education in the least 
restrictive environment possible. Since that time, this law has made an 
incredible difference in the lives of millions of American children and 
their families.
  When we passed the law, we not only promised to bring special 
education students into the regular school system, we made a commitment 
to cover 40 percent of the State cost of servicing students with 
special needs over time. Thirty years later, we have yet to make good 
on this commitment. Today the Federal Government supports just over 18 
percent of the cost of the program. That is not even half of the 40 
percent we promised 29 years ago.
  In order to rectify this situation, Senators Harkin and Hagel put 
together an amendment mandating full funding of the Individuals with 
Disabilities Education Act. This amendment failed yesterday 56-41. This 
saddens and frustrates me. Had it passed, I believe this amendment 
would have proven to have been the most important provision in this 
bill.
  States and municipalities are bearing more than their share of 
responsibility for meeting disabled students' needs. In Connecticut, 
the State typically covers 32 percent of the costs of special 
education, local school districts cover 61 percent of the costs of 
special education, and the Federal Government covers only 7 percent.
  Certainly States and municipalities are paying more than their share 
of special education costs. They need our help. Senator Harkin's and 
Hagel's amendment provided an opportunity to give them the help that 
they need.
  Only mandatory full-funding of IDEA would demonstrate this body's 
commitment to universal access to education for all children, while 
helping entire communities ease their tax burden. As I have said 
before, I cannot accept the argument that because our economy is 
faltering, or we are a Nation at war, we cannot provide our children 
and their families with the critical educational resources they need. 
Investment in education is no less important in a weak economy or while 
our Nation is at war.
  Education needs to be viewed as a national priority. In fact, 
education is the key to a healthy democracy, and absolutely essential 
to our long-term national and economic security.
  Like Senators Harkin and Hagel, I support the idea of mandatory full-
funding because it is good for students, families, schools, 
municipalities, states and the average American taxpayer. The funding 
fight on IDEA has been a long one over the years and I believe that 
schools have already waited to long.
  Fundamentally, this is a good bill--one that will help guarantee the 
full potential of all our children while assisting school districts in 
their efforts to deliver special education services in an efficient 
manner. That is why I will support the underlying bill. Thank you.
 Mr. COLEMAN. Mr. President, I strongly support the Individuals 
with Disabilities Education Act--IDEA--reauthorization legislation that 
the Senate is considering today. I want to note for the record that I 
would have voted for this important legislation but for a death in the 
family that required me to be home.
  First of all, I commend Chairman Judd Gregg and Senator Ted Kennedy 
for working in a bipartisan manner to craft this important reform 
legislation. Children with disabilities ought to have the same access 
to a quality education as any other student. Since its enactment in 
1975, IDEA has helped do this by ensuring that children with 
disabilities have access to a quality education. S. 1248 will make 
needed improvements to IDEA by improving services for these children, 
expanding parental involvement, and providing much needed support for 
special education teachers.
  Under current law, IDEA's complicated regulations have detracted from 
the success of the program. For too long, IDEA has focused on the 
process rather than the outcome. That is why I support simplifying the 
law's burdensome due-process requirements, which have created excessive 
amounts of paperwork for teachers. This duplicative paperwork has taken 
teachers' valuable time away from teaching in the classroom, and 
sometimes has even driven special education teachers out of the 
classroom. I believe that this legislation will reduce the paperwork 
burden for teachers and thus allow teachers to do their job--teaching 
children.
  This legislation also helps reduce misidentification of non-disabled 
children. Misidentification of special education students has fueled 
growing IDEA cost. S. 1248 provides reform by allowing for the 
development of new approaches to determine whether students have 
specific learning disabilities by clarifying that schools are not 
limited to using IQ-achievement tests and by providing funds for 
training school personnel to prevent over-identification and 
misidentification of children.

[[Page 9379]]

  I am, however, disappointed by the failure to pass an important 
amendment, which I co-authored. This amendment would have provided for 
annual increases in IDEA funding of $2.2 billion, allowing the program 
to reach full federal funding levels by 2011. When IDEA was enacted in 
1975, the Federal Government promised to pay 40 percent of the costs of 
educating children with disabilities. Currently, however, the Federal 
Government contributes only 19 percent, placing an unfair and serious 
financial burden on States and local school districts. Due to Congress' 
failure to fully fund IDEA, school districts, especially those in rural 
areas, are forced to take funds from their general budgets to operate 
special education programs. As a result, schools have been forced to 
cut important educational programs and delay infrastructure 
improvements. I have met with teachers and students from rural 
Minnesota and know how tight school budgets there are already. This 
amendment would have brought much needed fiscal relief to Minnesota 
schools.
  But, I do commend my Republican colleagues and the President for 
their support of IDEA funding. The most dramatic increases in IDEA 
funding have all occurred under Republican control of Congress and, in 
recent years, a Republican White House. Since FY 2001, IDEA funding 
will have increased by $4.7 billion or 75 percent. The Republican 
Congress has already increased funding for IDEA by 224 percent since 
1996. If the President's FY 05 budget is enacted, it will have 
increased by 376 percent. I encourage my colleagues to support 
increased funding so that we keep our promise to fully fund 
IDEA.
  Ms. MIKULSKI. Mr. President, I will vote for the IDEA Improvement Act 
to reauthorize special education--even though I am disappointed that 
the Senate didn't pass the Harkin-Hagel full-funding amendment. This is 
a down payment. There are some good policy changes in this bill, and I 
think we should move the reauthorization process forward. But I will 
continue to fight for full funding of special education. It is the 
single most important thing we can do for children.
  I am going to vote for this bill because it takes some big steps 
forward, and it is a good compromise. As a member of the HELP 
Committee, I am proud to say that we reached bipartisan agreements on 
some very complicated policy issues. It simplifies complicated rules 
and procedures and makes it easier for schools and parents to 
navigate--not litigate. And it allows schools to help students who need 
special attention, but not necessarily special education. I have talked 
to Marylanders about this. The women of Delta Sigma Theta Sorority see 
their children being racially sidelined--pushed into special education, 
when what they really need is special attention. I am so pleased that 
we are doing something in this bill to stop racial sidelining.
  Yet, I have some concerns about the bill. My biggest concern is that 
this bill doesn't fully fund special education. I have heard from 
teachers, principals, and school superintendents who want to know where 
the resources will come from. This year, the Bush budget provides a $1 
billion increase for special ed. That may sound like a lot, but at that 
pace, we will never reach full funding. The Federal Government is 
supposed to pay 40 percent of the cost of special education. Yet, it 
has never paid more than 19 percent. In Maryland, the Federal 
Government only pays an average of 11 percent. That means local 
districts must make up the difference by skimping on special ed, by 
cutting from other education programs, or by raising taxes.
  I don't want to force States and local school districts to forage for 
funds, cut back on teacher training, or delay school repairs because 
the Federal Government has failed to live up to its commitment to 
special education. Full funding would free up money in local budgets 
for hiring more teachers, buying new textbooks and technology, and 
repairing old school buildings. It would give teachers the training and 
support they need. It would help students with disabilities and their 
families by providing enough funding for special education programs so 
parents can have one less thing to worry about, and students get the 
opportunities they deserve.
  Everywhere I go in Maryland, I hear about special education. I hear 
about it in urban, rural, and suburban communities; from Democrats and 
Republicans; and from parents and teachers. They tell me that the 
Federal Government is not living up to its promise, that special 
education costs about 18% of the average school budget, that schools 
are suffering, and that parents are worried.
  Parents of children with special needs are under a lot of stress. 
They are worried about their jobs. They are terrified of losing their 
healthcare when costs keep ballooning. Many are holding down more than 
one job just to make ends meet. Or they are trying to find daycare for 
their kids, and elder care for their own parents. They are racing from 
carpools to work and back again. The Federal Government shouldn't add 
to their worries by not living up to its obligations. With the Federal 
Government not paying its share of special ed, these parents have real 
questions in their minds: Will my child have a good teacher? Will the 
classes have up-to-date textbooks? Will they be learning what they need 
to know?
  Parents of disabled children face such a tough burden already. Caring 
for a child with special needs can be exhausting. School should not be 
one of the many things they worry about--particularly when the laws are 
already on the books to guarantee their child a public school 
education. The bottom line is the Federal Government is shortchanging 
these parents by not paying its share of special ed costs.
  I have heard from parents. They have other concerns, too, besides the 
money. They are concerned that this bill rolls back the guarantee of a 
quality education, by getting rid of short-term goals on education 
plans and scaling back safeguards. I agree that we need to simplify 
this law to make it easier for schools and parents to navigate. I am 
glad that this bill makes some crucial improvements. Yet, I want to do 
what is best for families and schools. Ninety percent of school 
districts are out of compliance with the Federal law. I know schools 
and teachers want to do what is best for students with special needs--
and if they had the resources, they would. But we need to protect the 
rights of families to fight for what is best for their children--for 
the times when the school falls short. Instead of rolling back 
protections for students, we should provide the resources so that 
schools can give students the services they need to succeed with their 
classmates in public schools.
  Special education has made such a huge difference in the lives of 
students with disabilities. I will vote for this bill because it is so 
important to reauthorize special education. But I will keep fighting 
for full funding because I don't want special education to be a hollow 
promise.
  Mr. SMITH. Mr. President, I rise today to commend my colleagues on 
the passage of the Individuals with Disabilities Education Improvement 
Act, to reauthorize programs under the Individuals with Disability 
Education Act--IDEA.
  In 1975, Congress enacted legislation to help States meet their 
obligation to provide education to all American children including 
those with disabilities. Children, regardless of their disability, 
deserve and ought to receive a quality education. IDEA assists States 
in meeting this goal by providing important federal funds.
  In 2002, approximately 6.5 million children with disabilities 
benefitted from IDEA. Nevertheless, much work remains for Congress to 
fulfill its promise of fully funding 40 percent of the estimated 
implementation costs. With passage of this important legislation, we 
have advanced yet another step toward meeting the needs of America's 
children with disabilities.
  As I travel across Oregon and talk to school administrators about the 
challenges they face, they routinely tell me about the financial burden 
of IDEA. They also tell me of their firm belief in the spirit of this 
legislation and want

[[Page 9380]]

to provide the best education possible for their special needs 
students. This requires adequate Federal funding.
  For many years, Congress did not fulfill its promise, with 
significant consequences to schools and students across the country. 
IDEA spending was one of the few appropriations that did not grow 
during the 1980s. In fact, in some cases, the Federal government 
actually covered less of the States' average per pupil expenditure than 
the previous year.
  What many may not realize is that when we provide funding for 
students with special needs, we benefit all students. Across the 
Nation, and particularly in Oregon, States are struggling to provide 
funding for our schools. When schools are forced to make up the Federal 
portion of IDEA funds, they are forced to take funding from other 
important education programs. When we fulfill our cost sharing 
commitment to IDEA programs, there are more dollars available for 
teacher training, new books, and computers for all students. In effect, 
schools are forced to choose some students over others, and it is a 
choice they should not have to make.
  I am proud to report that IDEA funding is back on track--and has 
increased by almost 225 percent since 1996. If the President's budget 
is approved this year, funding for IDEA will have increased by almost 
400 percent. This clearly demonstrates both Congress' and the 
President's continued commitment toward full funding.
  For children with disabilities, IDEA has opened the door to greater 
educational opportunities. It has served as the cornerstone for greater 
participation in our society for people with disabilities. The only way 
to ensure that our promise to provide every opportunity for students 
with disabilities, and help them achieve their full potential, is to 
give our schools the dollars they need. I look forward to President 
Bush signing this legislation into law.
  Mr. DOMENICI. Mr. President, today I rise in support of final passage 
of the Individuals with Disabilities Education Improvement Act, IDEA. I 
would like to thank the leadership for their hard work on this issue 
and for making it a priority. This legislation is critical for children 
with disabilities.
  We have a special responsibility to vulnerable populations such as 
disabled children. We must ensure that all children, including those 
with special needs, are given the best education possible. By 
reauthorizing this law today, educational opportunities and outcomes 
for children with disabilities have been strengthened greatly. We have 
established high expectations for real educational results for disabled 
children.
  The purpose of the Individuals with Disabilities Education Act is to 
ensure that all children with disabilities have available to them a 
free appropriate public education that includes special education and 
related services to meet their unique needs. More than two decades ago, 
when I was just in my first term as a Senator, we said to our schools, 
``When it comes to disabled children, exclusion from public education 
is unacceptable.'' But the Federal Government has never paid its proper 
share of the cost of the special education mandate it imposed on States 
and schools.
  With the reauthorization of IDEA today, the Senate has reaffirmed its 
funding commitment to children with disabilities. But more than just 
increasing the funding for this program, the Senate has ensured better 
results for students with special needs, reduced the paperwork burden 
for teachers and school officials, and maximized parental involvement 
and choice.
  Prior to the passage of IDEA in 1975, many students with disabilities 
were provided an inadequate education or none at all. Our society has 
made great advancements in the way that we deal with the disabled. We 
have finally realized that disabled children need better results, and 
that parents need better information and options.
  The IDEA reauthorization signals another important step for education 
reform in the United States. This law will undoubtedly improve academic 
results for children with disabilities, and it is for this reason that 
I am supporting this legislation. I would also ask that the leadership 
on both sides continue to work together to get this bill to the 
President. Unnecessary delay could disrupt the delivery of important 
legislative gains for children with special needs and the school 
districts that provide their educational opportunities.
  Mr. SCHUMER. Mr. President, I just want to take a few minutes to 
express my deep disappointment that the Senate has once again failed to 
keep our promises to adequately fund our schools. The Senate's 
inability to pass the Harkin-Hagel amendment yesterday is an outrage. 
The amendment would have put us on a 6-year track to finally fulfill 
the Federal Government's promise to fully fund the Individuals with 
Disabilities Act--a promise made to our schoolchildren and our local 
districts 30 years ago.
  The key with the Harkin-Hagel amendment--which I was very proud to 
cosponsor--was that it made the funding mandatory. It would have 
finally mandated that within 6 years, the Government fulfill its 
promise to cover 40 percent of the costs of educating special needs 
children in this country. Nationally, at current spending levels, the 
Federal Government only covers about 19 percent of the costs--and in 
New York, the figures are much lower than that. Some districts in New 
York spend nearly one-fifth of their overall school budgets providing 
quality special education programs. Yet for many districts, Federal 
funding only covers 8 or 9 percent of these costs.
  I have talked to school superintendents all over the State about the 
budget crunches they are in--crunches that are exacerbated by the 
economy, tight State budgets, and year after year of being shortchanged 
by the Federal Government. Last month, the Campaign for Fiscal Equity 
in New York reported that New York State will need $9.5 billion more 
for education funding over the next 4 years, but it has not yet been 
revealed where that money will come from. Schools across the State are 
struggling to balance their budgets--and are often forced to raise 
local property taxes to fund the Federal mandates we place on them.
  The administration's proposal would increase IDEA funding by only $1 
billion this year. At that rate of increase, we won't reach full 
funding until 2028--50 years after we promised it to our districts. 
Under the administration's budget, New York State will receive 
approximately $729 million in fiscal year 2005 funding. If we were at 
full funding, New York would be getting $1.49 billion next year. Under 
the Harkin-Hagel amendment, New York could expect $807 million in 
fiscal year 2005, and steady, solid increases in the subsequent 5 years 
to get the State to the full amount.
  My office did an analysis, using data from the Congressional Research 
Service, the National Education Association, and the Department of 
Education, comparing the administration's fiscal year 2005 funding 
proposal to what various regions of the State would be receiving in 
2005 under full funding. The shortfalls were shocking:
  New York City will be shortchanged $303 million under the 
administration's budget. Under full funding, they could expect $565 
million, but they are only going to get $262 million.
  Schools in Western New York, which includes Buffalo, will be 
shortchanged $58 million. They should be getting $108 million, but will 
only see $50 million.
  In Central New York, the region which includes Syracuse and the 
surrounding counties, schools will be shortchanged $43 million. They 
will get $37 million instead of $80 million.
  In the Lower Hudson Valley, just north of the city, schools will get 
$45 million instead of $96 million.
  Schools in the Rochester/Finger Lakes region will get $43 million 
instead of $93 million.
  Schools in the Southern Tier of the State will be shortchanged $13 
million. They will see $11 million instead of the $24 million they were 
promised by Congress in 1975.
  The Senate had a real opportunity yesterday to make a difference in 
the lives of the families we are here to protect and represent. But I 
am ashamed

[[Page 9381]]

that only 56 of us stepped up to the plate. For all the rhetoric we 
have heard over the last several years about the importance of making a 
true commitment to our kids, it is nothing more than schoolyard banter 
if we don't fund our promises.
  We can make no better investment than providing a high-quality 
education for all of our kids--ensuring they have access to the best 
teachers, cutting-edge curricula and books, and access to the special 
services they need to learn, advance and become productive members of 
society.
  Yesterday we had a chance to make it right. Our schools simply asked 
for the funding they were promised to provide kids with the services 
they need, and 41 Members of this body said no. We will be back. We 
will keep coming back, and we will keep fighting the fight until our 
kids and our schools get what they were promised and what they deserve.
  Mr. ENSIGN. Mr. President, I believe that this legislation is the 
next step toward ensuring that all children with disabilities receive 
the education and services they deserve. I am pleased to lend my 
support to the passage of S. 1248, the Individuals with Disabilities 
Education Improvement Act of 2003. This legislation has been carefully 
crafted to balance the concerns and wishes of students, parents, 
teachers, principals, and superintendents.
  As a new member to the Health, Education, Labor and Pensions 
Committee, it has been a pleasure to be involved in this 
reauthorization from the very beginning. I have worked hard to ensure 
that the needs of the children, parents, teachers, and administrators 
in my home State of Nevada have been met. I have heard from Nevadans 
the problems they face when dealing with the complexities of IDEA and 
believe this bill addresses many, if not all, of their concerns.
  During one of my rural tours, I had the opportunity to stop in 
Minden, NV, which is located in the Douglas County School District. As 
part of my time there, I went to a school to meet with parents, 
teachers, students, and the superintendent of the school district. 
While many topics and issues were discussed during that time, the one 
that has stuck out the most in my mind is IDEA. The superintendent told 
me stories and gave examples of the difficult time he and his staff 
have had in dealing with the complexities of IDEA, especially the 
regulations related to discipline. It finally got so bad the Nevada 
State Department of Education had to put out a handbook to describe the 
regulations.
  Just recently, the superintendent for Washoe County School District 
was in town, and he shared with me many issues of importance for his 
schools, including funding for IDEA. He told me that while additional 
funding for No Child Left Behind programs would be nice, funding for 
IDEA was much more important to the financial well-being of his 
district. We talked about the recent press regarding charges that No 
Child Left Behind is an unfunded mandate, but he replied that there is 
no greater unfunded mandate and burden on the financial state of 
districts than IDEA.
  It is with these experiences in mind that I come to the floor today 
to discuss S. 1248, the Individuals with Disabilities Education 
Improvement Act of 2003. I am particularly pleased to see that this 
legislation focuses on the goal of improving the academic achievement 
and long-term goals of these students rather than burdensome 
administrative checklists. In 1954, the United States Congress made it 
clear that ``all children'' included racial minorities, and in 1975 we 
expanded this to include children with disabilities by ensuring that 
all children receive a free and appropriate public education. This 
legislation complements the work done with the No Child Left Behind 
Act, and helps ensure that no child is left behind.
  Unfortunately, the focus of IDEA has moved away from providing 
students with disabilities a quality education and towards ensuring 
that teachers, schools, and districts are simply in compliance with the 
law. The current accountability provisions in IDEA focus more on 
compliance in terms of paperwork and lawsuits, rather than on student 
performance and outcomes. I believe that S. 1248 changes the direction 
that IDEA is moving by simplifying the paperwork requirements, giving 
States greater flexibility, and making the process of disciplining 
students with individualized education plans, commonly known as IEPs, 
easier.
  Changes contained in S. 1248 will simplify the IEP process for 
parents and teachers, while maintaining the flexibility both parties 
need to include additional information, outcomes, and goals for 
individual students. The IEP process had become a burdensome and time-
consuming endeavor for all parties that often produced little for the 
child involved. Rather than focusing on short-term objectives for every 
child, the Senate bill requires that IEPs contain only long-term goals 
and objectives that are focused on the child's academic achievement and 
functional performance goals for the school year. This change 
recognizes that not all children will make great strides on the 
academic side of the equation, but may excel in their functional 
achievements. I know that some parents in Nevada have expressed concern 
over this change, but I believe this will be more beneficial to 
individual children by eliminating a one-size-fits-all approach for 
IEPs.
  Another area of great concern to parents, teachers, and 
administrators has been the discipline provisions contained in IDEA. 
The Senate version simplifies the framework for schools to administer 
IDEA but also ensures the rights and the safety of all children. In 
Nevada I have heard from numerous school principals, superintendents, 
and teachers about the difficulties they have when it comes to 
disciplining a disabled student. They have complained not only about 
the dual-discipline system created by IDEA but also about the 
incredibly complex rules and regulations they must follow if a disabled 
student does violate school rules. The Senate language will allow 
schools to suspend a child with a disability who violates a code of 
conduct and withhold services during the suspension. Schools would be 
allowed to discipline a child with a disability in the same manner as a 
child without a disability for school code violations so long as the 
violation was not related to the child's disability. An agreement has 
also been reached with regards to offenses related to weapons and drugs 
for children with disabilities. While this language is a great 
improvement on current law, I still have concerns about the complexity 
of these provisions and the continued burden faced by teachers and 
principals in completing paperwork and fighting lawsuits related to 
discipline.
  That said, this legislation also makes great strides in other areas, 
such as providing special education teachers the initial training they 
need and the ongoing educational support and assistance required in the 
classroom every day. Parents will no longer be faced with reams of 
paper every time they go to a meeting with their child's teacher. 
Children will be taught by highly qualified teachers and receive the 
services they need to succeed in school. Students will also be provided 
with important transition services as they leave high school and enter 
either the workforce or postsecondary education opportunities.
  I have heard from many parents in Nevada who believe their child's 
teachers and principals are overburdened with paperwork related to 
their child's education. They also have felt bombarded with notices 
explaining to them their right to sue school districts if they do not 
believe their son or daughter has received the services necessary for 
he or she to succeed. This legislation, I believe, strikes that 
delicate balance between parents who believe they are getting too much 
information and those who believe they are not getting enough. I am 
always careful not to have too great an impact on the important 
relationship between a parent and a teacher from Washington, DC.
  The issue of Federal funding for IDEA has been an issue of huge 
concern not only to my constituents, but to every school district in 
the country.

[[Page 9382]]

Every school district in Nevada has contacted me with a very legitimate 
concern in that the Federal Government has never lived up to the 
promise it made in 1975 to provide 40 percent of the excess cost to 
educate a child with a disability. Currently, the Government is 
providing funding that pays for about 20 percent of the excess cost to 
educate children with disabilities. I completely agree that the Federal 
Government must live up to its promise to provide this crucial funding 
to our schools. IDEA is truly an unfunded mandate. However, I believe 
we must continue to fund these programs on the discretionary side of 
the budget and not move funding to the mandatory side of the budget. 
Moving funding to the mandatory side of the budget places it in the 
same category as Medicare and Social Security and above other education 
programs. I do not believe it is right to make IDEA an entitlement and 
elevate it above other, equally important, Federal education programs.
  Not only would IDEA funding be placed in a higher category than other 
education programs, but moving funding to the mandatory side of the 
budget has the potential to increase the deficit. We cannot afford to 
continue deficit spending and place the burden of our unrestricted 
spending on the backs of our children. I believe we must work to make 
IDEA funding a true priority both during the budget process and the 
appropriations process. We should work to increase funding at large 
levels every year to reach the 40-percent marker.
  In addition, funding for IDEA has substantially increased over the 
past 4 years. In fact, assuming the President's $1 billion increase for 
this year is approved, funding has increased by $4.7 billion, or 75 
percent, since 2001. Since 1996, when Republican's took over control of 
Congress, funding for IDEA has increased by 224 percent, yes, 224 
percent. If the President's $1 billion increase is approved for this 
year, funding will have increased by 376 percent in less than 10 years. 
Nevada has seen funding nearly double in the past 4 years. Since 2001, 
funding has increased by 84 percent, one of the largest increases in 
the country. While I recognize we are only at half of our promised 
level of funding, it is clear that Congress is making great strides to 
living up to its promise.
  I hope we can continue the great progress we have made on this 
important legislation and appoint conferees to work out our differences 
with the House-passed legislation. This issue is too important to fall 
victim to partisan politics. We cannot allow children with disabilities 
to be held hostage because of the partisan atmosphere of the Senate.
  Finally, I thank both Senator Gregg and Senator Kennedy for their 
hard work on this legislation and dedication to this important issue. I 
look forward to working with both of them on future reauthorizations in 
the HELP Committee this year.
  Mr. PRYOR. Mr. President, I rise today to commend my colleagues, the 
senior Senator from Massachusetts, Mr. Kennedy, and the senior Senator 
from New Hampshire, Mr. Gregg, for their work on a very important piece 
of legislation that is so vital to many parents, teachers, school 
administrators, and most importantly, children in the State of Arkansas 
and across this country. It is especially important that on issues such 
as this we have bipartisan cooperation, and I thank my colleagues for 
ensuring that cooperation and the quick action we have seen on the 
Individuals with Disabilities Education Act yesterday and today.
  I have heard from many of my constituents about IDEA, and they have 
expressed a wide range of concerns about various aspects of the 
legislation, from discipline, to due process, to funding, to 
individualized education programs. And we all know that no one got 
everything they wanted from this reauthorization. But that is the 
nature of compromise. That is the nature of legislating in this body. 
It is my hope that we can find more opportunities to work in the 
bipartisan manner that Senator Kennedy and Senator Gregg demonstrated 
in managing this bill.
  Just to remind my colleagues, though I know they do not need 
reminding, because so many of them hear the same concerns I do from 
their home States, we cannot overstate how important IDEA is to so many 
and how it touches the lives of our children every day. I would like to 
relate the comments of one of my constituents, Tracey Smith, of 
Springdale, AR.
  Ms. Smith's son, Kyle, is an 8-year-old who has been the beneficiary 
of IDEA since 2000. Kyle's family moved from Texas to Arkansas during 
the middle of a school year, and Ms. Smith called me to talk about how 
IDEA has helped Kyle and to talk about some of her concerns with the 
pending reauthorization. She stressed how important yearly IEPs were 
for her son and how short-term goals were so vital to her son's long-
term achievement. It is important that IEPs continue to be revisited on 
a yearly basis, and I am encouraged that we have managed to ensure this 
important aspect of special education will remain in the Senate 
legislation.
  Furthermore, Ms. Smith was nervous that people in Washington, who do 
not experience on a day-to-day basis the trials parents and children 
have to face, would not understand how changes we make affect their 
daily lives. IDEA has provided much-needed flexibility for parents, and 
this legislation continues in that manner. As Ms. Smith told me:

       As a parent I appreciate and value the freedom that IDEA 
     gives parents and educators to address an individual child's 
     needs.

  And that is what this is about, individual children and individual 
parents. It is about addressing their educational needs and concerns, 
addressing their daily struggles in the hopes that we can make their 
lives a little more normal, even if it is only for 1 day. I admire 
parents like Tracey Smith, and I commend her for having the courage to 
remind us of the effect we have on persons we may not always know.
  I know there will be many issues related to civil rights, discipline, 
due process, and highly qualified teachers to address in the conference 
with the House of Representatives. I hope they are resolved in the same 
bipartisan manner in which this bill was crafted in the Senate and with 
parents and children in mind. We have worked hard to ensure civil 
rights protections for children and parents, and I hope they are not 
diminished. We have worked hard to craft discipline provisions that 
protect all of our children while understanding disabled children have 
special needs, and I hope we can continue to ensure the safety of our 
schools. We have worked hard to include protections for due process, 
and I hope any differences are resolved to ensure parents know and 
understand their rights under the law without giving unfair advantage 
to any one party. We have worked hard to make sure our children have 
proper instruction, and I hope we continue to ensure proper instruction 
without discouraging individuals from entering the field of special 
education. Most of all, I hope we have a finished product that all 
parents, educators, and, most importantly, children can benefit from.
  This is a bipartisan bill, and I am pleased with the progress we have 
made in the past couple of days in regards to funding, ensuring 
services to our military families and homeless and foster children, and 
reducing burdensome paperwork for our teachers. I am, however, 
disappointed that we failed to make full funding mandatory. Senators 
Harkin and Hagel have worked very hard to ensure the Federal Government 
lives up to the promises we made to our disabled children, parents, and 
schools almost 30 years ago. I was very pleased to join in that worthy 
cause, and I will continue to work with my friends on both sides of the 
aisle until we meet our commitments. As we in this body are all aware, 
funding is not always the answer, and it is never the only answer. But 
many times we see that inadequately funding the mandates we force on 
States and local districts are such a large piece of the puzzle. We 
cannot honestly say we are doing all we can to advance education for 
disabled children unless we meet those funding commitments. It doesn't 
do us any good to educate some and

[[Page 9383]]

leave others behind. Instead of providing opportunity for many of our 
children, we are closing doors to them. Instead of educating and 
instructing future productive citizens, we are, in some cases, 
neglecting those who will become dependent on Government and those who 
will live a life of despair.
  I believe fully funding IDEA is not just a commitment we have made, 
but also an investment in our children. By appropriating the necessary 
funds to fully fund IDEA, we can provide our teachers the tools and 
resources they need to do what they do best--educate all of our 
children to the extent that they not only participate in but contribute 
to society. It is an investment we should and we can afford to make. 
Several of my colleagues made the point that by making full funding 
mandatory, Congress would somehow lose the ability to revisit and 
change the adjustments we have made in this legislation. I disagree. I 
would ask my colleagues, when has Congress failed to address 
problematic aspects of any piece of legislation when it was so 
warranted? When has the Congress given up oversight of any area of 
responsibility? I would venture to guess that mandatory funding of IDEA 
would not prevent this body from revisiting IDEA if and when it becomes 
necessary.
  We have made progress toward living up to our commitments in recent 
years. We should be proud of that progress. In fact, when IDEA was 
brought into existence in 1975, Congress funded less than 7 percent of 
the excess costs to schools for special education. In 2004, we funded 
close to 19 percent of excess costs. We have made progress, no one 
denies that, but as the Senator from Iowa, Mr. Harkin, so eloquently 
pointed out: We should not be concerned with what we have done. We 
should be concerned with what we will do now to reach our commitments. 
I commend this body for realizing we need to do more for special 
education. But if we continue to make piecemeal increases in IDEA, we 
will never reach full funding under current law. I hope in the coming 
months and years we can make progress toward fulfilling the 40 percent 
commitment. We can do better. We can do more. And I commend and thank 
my colleagues on both sides of the aisle for their leadership and 
commitment to this issue.
  Mr. DURBIN. Mr. President, in 1975, Congress made the historic 
decision to require all public schools to accept and educate children 
with disabilities in the least restrictive environment. That law still 
serves as the basis for the Individuals with Disabilities Education 
Act.
  As part of the original law, Congress acknowledged that the Federal 
Government would need to contribute 40 percent of the extra costs of 
educating students with disabilities. Sadly, we do not seem to have a 
very good track record. Today--30 years after that critically important 
legislation was enacted--the Federal Government pays less than 20 
percent of the additional cost.
  I commend my colleagues, Senators Hagel and Harkin, for offering the 
amendment to move the Federal share to 40 percent over 6 years. This 
amendment is an appropriate and overdue response to our schools who are 
living up to their end of the bargain, and I was pleased to support it. 
Unfortunately, the amendment failed by a slim margin.
  National organizations--ranging from teachers' groups to the 
disability rights movement to education advocacy groups--have urged 
this body to support the Hagel-Harkin amendment. There is broad and 
deep recognition that mandatory full funding is the right thing to do 
and that this is the right time to do it. Our schools need this 
funding.
  I got a letter this week from the Superintendent of the Orion 
Community Unit Schools asking me to support IDEA. He says, ``Please 
understand that reauthorization is imperative for the financial 
stability of the public schools in Illinois.'' The Orion school 
district is in the top 5 percent of Illinois schools academically. It 
has cut its budget each of the last 2 years by 3.4 percent. And yet 
Orion has been placed on the financial early warning list.
  Two years ago, this Congress enacted the No Child Left Behind Act. 
The purpose of that law is to close the achievement gap. For too many 
of our children, especially those who have disabilities, we had become 
complacent about lowered expectations. I voted for that law because I 
believe every child, including those with disabilities, can succeed.
  But lower teacher ratios, qualified teachers, specialists, tutoring, 
early intervention--all of these proven means to improved academic 
achievement require resources. It is hard for me to understand how we 
can say that we as a nation expect 100 percent proficiency in basic 
academic skills, but we can not afford to fully fund No Child Left 
Behind. We expect all but the most severely cognitively disabled 
students to meet Adequate Yearly Progress, but we cannot afford to 
fully fund IDEA. We expect our schools and teachers to work effectively 
with children who face every adversity, but we can't afford to provide 
federal education funding at promised levels. Meanwhile we find somehow 
that we can afford to hand out tax breaks to the wealthiest and most 
advantaged among us.
  Congress meant what it said in 1975 with the enactment of IDEA. 
Children with disabilities have the right to a free and appropriate 
education. And we meant what we said in 2001. Every child is expected 
to learn. Both laws affirm that access to a quality education is a 
civil right in this country.
  I am disappointed that we were not able to pass the Hagel-Harkin 
amendment. But I strongly support the underlying bill. This 
reauthorization will do much for students with disabilities, their 
families, and the schools they learn in. But it is up to the Congress 
of 2004 to fulfill the promise of the Congress of 1974. It is time for 
this body to put its money where its mouth is.
  Mrs. CLINTON. Mr. President, I am proud to be a cosponsor of S. 1248, 
and would like to thank Chairman Gregg and Senator Kennedy for working 
in such a cooperative and bipartisan way on this important legislation.
  I strongly believe in every child's right to a free, appropriate 
public education, and I appreciate the leadership you both have shown 
in working to ensure that this reauthorization bill protects that 
right. I believe the bill before us today is better than the House bill 
due largely to your commitment.
  This bill ensures that children with special needs receive a free, 
appropriate public education while supporting teachers and other school 
staff, strengthening monitoring and enforcement, involving parents more 
thoroughly in the education of their children, resolving disputes 
equitably, and improving the transition between school and beyond.
  I am particularly pleased that this bill includes several provisions 
that I supported. The first I sponsored with Senator Sessions, and it 
is embodied in S. 1321. This provision will channel $25 million 
directly to local school districts to help children with emotional and 
behavioral disabilities. This program will support investments in 
positive behavioral supports, whole school interventions, and improve 
the quality of interim alternative educational settings. These funds 
will help schools invest in professional development, provide for early 
interventions, and fund whole-school interventions that train school 
administrators, support staff, and parents to help students with 
disabilities succeed.
  This bill also includes provisions of the Personnel Excellence for 
Children with Disabilities Act, which I was proud to cosponsor. This 
act creates two new grant programs to support personnel preparation--
one to help schools recruit and retain new special education teachers, 
and another to better prepare general education teachers to work with 
children with special needs.
  New York faces a major shortage of qualified special education 
teachers, and I believe it is critical to dedicate resources to 
recruiting, retaining, and providing ongoing professional development 
for all teachers--general education and special education. These funds 
will go a long way to achieving this goal.

[[Page 9384]]

  In addition, I am pleased that the Senate adopted an amendment that I 
offered yesterday to include the Department of Education as a key 
partner in the planning and execution of the National Children's Study. 
This study will be the most comprehensive examination of children's 
health ever conducted in this country. It is critical that schools, 
where children spend more time than anywhere other than their homes, be 
included in this analysis. By including the Department of Education we 
will gain valuable insight into the role that environmental factors 
play in contributing to developmental disabilities.
  While I am so pleased with all of the provisions I have mentioned, I 
am deeply disappointed that Senator Harkin's amendment to provide 
mandatory full funding for IDEA failed yesterday. This amendment has 
strong bi-partisan support, thanks to the leadership of Senator Hagel 
on the Republican side, and it represents the only true mechanism to 
ensure that Congress keeps the promise it made in 1975. Back then, 
Congress vowed to provide 40 percent of the cost of educating children 
with special needs. To date, we have never even come close. By relying 
on discretionary funding we are virtually guaranteeing that we will 
never achieve the 40 percent threshold. And it is our children and 
local taxpayers who pay the price. So I will continue to work with 
Senator Harkin, Senator Hagel, Senator Kennedy and my other colleagues 
to ensure that one day we achieve the victory we were not able to 
yesterday.
  In one of my first experiences out of school, I was tasked by the 
Children's Defense Fund with reconciling census data with school 
enrollment. This project developed out of a realization that many 
children who were living in a given community were not enrolled in 
school. As I went door to door and talked to the families, I quickly 
realized that the children left out were the ones with special needs.
  The Individuals with Disabilities Education Act of 1975 fixed that 
problem. It promised every child--regardless of their needs--a free, 
appropriate public education. Today, we are strengthening that law and, 
more importantly, that promise.
  As a Senator from New York, I continue to hear stories about how 
critical IDEA is for children with disabilities. One parent recently 
came to my office to visit with his son who suffered brain trauma and 
now has cerebral palsy and other developmental disabilities. Kevin 
attends elementary school in the Port Washington School District in 
Long Island. Because of his special needs, he receives daily one-on-one 
instruction from a licensed teacher's assistant, 10 hours of speech 
therapy and three sessions of occupational therapy each week. This 
investment would have been unheard of 30 years ago. But today, Kevin is 
able to keep up with his courses in a mainstream 5th grade classroom 
setting. His success is possible because of IDEA and Kevin is on course 
to successfully pass the 5th grade and graduate into 6th.
  Kevin's story should remind us all why this bill is so important. 
Simply put, it ensures that both teachers and parents have the tools 
they need to help children with disabilities succeed. So I urge all of 
my colleagues to join me in supporting S. 1248. And as this bill moves 
forward I hope my colleagues will continue to maintain the best 
interest of our children and uphold the spirit and intent of the 
original law.
  Mr. DASCHLE. Mr. President, by reauthorizing IDEA, the Individuals 
with Disabilities Education Act, today, the Senate reaffirms America's 
commitment to ensure that every child is given the opportunity to 
develop his other God-given talents and abilities to their fullest 
potential.
  I commend our colleagues, Senator Gregg and Senator Kennedy, for 
their diligence and bipartisan leadership. This bill demonstrates that 
the Senate can indeed do good and important work when both sides are 
willing to listen to each other and make principled compromises.
  IDEA is more than simply an education program; it is one of our 
Nation's most important civil rights programs. Because of this law, 
America now provides real educational opportunities for children who, 
in an earlier time, might never even have attended a school.
  It is not only the children who benefit; all Americans benefit when 
we develop the potential of every American.
  This bill strengthens America's commitment to ensure that every 
student has access to a free and appropriate education. It holds 
accountable for helping each child achieve his or her potential at the 
same time it reduces the paperwork burden on schools and increases 
local flexibility.
  This bill makes it easier for parents to participate in their 
children's education and improves the process for resolving disputes.
  It provides resources to make sure that special education teachers 
and other personnel are well trained and well supported.
  It strengthens early intervention and preschool services, to make 
sure that children with disabilities get the best possible start in 
school. It also creates a stronger bridge between high school and post-
secondary education or employment, to help young people with 
disabilities become full contributing members of American society.
  We know that schools often face challenges in meeting IDEA's 
requirements. We also know that man parents of children with 
disabilities consider the law complicated, and they sometimes don't 
know where to turn for help. It is my hope that improvements in this 
bill will make the law easier to understand and follow for everyone 
involved--parents, teachers and school administrators. I also hope that 
Democrats and Republicans will continue to work together to make 
additional improvements and changes in the future.
  But even the best laws cannot work if they are not funded. I am 
greatly disappointed that our Republican colleagues have refused to 
adequately fund this law.
  It has been 29 years since the Federal Government promised to provide 
40 percent of the cost of special education in America, yet we still 
provide only 19 percent of those costs. But schools have to provide the 
services--even if Congress doesn't provide the funds. This places 
tremendous pressure on local school districts to shortchange other 
education programs, and can create unnecessary tensions between 
families of children with special needs, and other families.
  The bipartisan Harkin-Hagel amendment would have guaranteed full 
funding for IDEA. When we first considered that idea, the Republican 
leadership told us, ``That's a great idea--but first we have to reform 
the program.'' So we worked with our colleagues to make those reforms. 
Yet most of our Republican colleagues still refused to support full 
funding.
  Unfortunately, the Republicans' idea of meeting us halfway seems to 
be to create a program but not fund it--to pass an authorization bill 
but then refuse to pay for it. They would rather spend the money on 
more tax breaks for millionaires. I think that is a shame. I urge the 
President and our Republican colleagues to reconsider their priorities 
and work with us in good faith to honor the Federal Government's 
promise to provide 40 percent of all special education funding. As I 
have said before, real reforms require real resources.
  I have spoken with many teachers and parents in South Dakota who tell 
me that, in an ideal world, every child would have an individual 
education plan. Every child has strengths and abilities, just as every 
child faces challenges. And every child benefits when the adults in his 
or her life work together to develop those strengths and abilities, and 
help them deal with their challenges. This bill provides a blueprint to 
make sure that young people in greatest need of such individualized 
attention and instruction get those opportunities. It is a bipartisan 
victory for those children, their families, and all Americans.
  There are significant differences between the House and Senate bills 
that will need to be resolved if Congress is to complete action on this 
legislation. Senator Kennedy has informed me that he hopes to work out 
a preconference

[[Page 9385]]

agreement on several key issues. I will support him in this effort and 
look forward to working with the majority leader to make progress on 
this important legislative issue.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. KENNEDY. Mr. President, I yield myself 10 minutes.
  Today, the Senate moves a large step closer to guaranteeing that 
children with disabilities can obtain the education they need in order 
to reach their full potential. Today is a victory for disabled 
children, a victory for the parents of these children, and a victory 
for our country. Today we renew our commitment to the education of 
every child in the nation.
  We know that disabled does not mean unable. Children with 
disabilities have the same dreams as every other child in America--to 
grow up and lead a happy and productive life. We know that IDEA helps 
them fulfill that dream.
  IDEA says children cannot be cast aside or locked away just because 
they have a disability. Those days are gone in America--hopefully 
forever.
  Children with disabilities have rights like every other child in 
America, including the right to join other children in public schools 
so they can learn and prepare themselves for the future.
  This law is about disabled children and their rights. It is about 
their hope and dream of living independent and productive lives. It is 
about parents who love their children and fight for them every day 
against a world that's too often inflexible and unwilling to help them 
meet their children's needs. It is about teachers who see the potential 
in a disabled child, but don't have the support or training they need 
to keep it alive.
  That is what this law is about. It is our statement as a nation that 
these children matter and that we will do our part to help their 
parents and teachers and communities meet their education goals. That 
is why the government should make an iron-clad commitment to provide 
the resources for special education. That is why it is important to 
develop a solid education plan for each child, to chart the progress, 
and to hold schools accountable when they fall short. It sounds like No 
Child Left Behind, and it is--``No Child'' means ``No Disabled Child 
too.''
  Later this month, we observe the 50th anniversary of the Supreme 
Court's historic decision in Brown v. the Board of Education, which 
struck down school segregation by race and said that all children have 
equal access to education under the Constitution. But it was not until 
the passage of the Education for the Handicapped Act in 1975 that the 
Brown decision had real meaning for children with disabilities.
  Only then did we finally end school segregation by disability, and 
open the doors of public schools to disabled children. Only then did 
the nation's four million disabled children begin to have the same 
opportunities as other children to develop their talents, share their 
gifts, and lead productive lives.
  We must never go back to the days when disabled children were 
excluded from public education, when few if any preschool children with 
disabilities received services, and when the disabled were passed off 
to institutions and substandard schools where they were out of sight 
and out of mind.
  We've made tremendous progress since those dark days. Today, six and 
a half million children with disabilities receive special education 
services. Almost all of them--96 percent--are learning alongside their 
non-disabled peers. The number of young children with early development 
problems who receive childhood services has tripled since 1975.
  The opportunities for further progress are boundless. We know far 
more about disability today than a quarter century ago. We understand 
the various disabilities of children, and how to help them all to learn 
and achieve. We are learning more each day about the enabling power of 
technology to help disabled children lead independent lives--it lets 
them communicate, explore the world on the Internet, move in ways we 
couldn't have imagined 5 years ago, much less in 1975 when the law was 
first enacted.
  This legislation builds on the enormous progress we have already made 
by recognizing that in several key areas, we must do better.
  We must do better in bringing the law's promise to all disabled 
students in all schools. That means fully enforcing the law in every 
school district in the country.
  A GAO analysis of compliance shows that from educational services to 
transition support, students are not getting what they are entitled to.
  Even when noncompliance is identified, the Federal response is 
intolerably slow. Some States violated the law for more than a decade 
before the Department of Education intervened.
  This failure has real world consequences for real children struggling 
to get an education. I have with me today almost 2,000 letters from 
parents across the Nation whose disabled children have been denied 
their educational rights under IDEA.
  This legislation will improve enforcement of IDEA at every level. It 
requires a State-Federal partnership to design a better monitoring 
system to hold States more accountable.
  We must also improve services for children nearing graduation, so 
they can leave school with the skills and continuing support they need 
to succeed. For persons with disabilities, the adult world offers 
little help to meet the challenges of daily life.
  It is vital for these steps to be taken in school, so that all 
children with disabilities can be reached before they enter the job 
market and the confusing maze of adult services.
  At best, only a little over half of students leaving special 
education have jobs or are continuing their education 5 years later. 
Often, they are transferred into the welfare system, with no 
recognition of their potential.
  Our bill places a major focus on early planning for that all-
important transition, and better coordination with other Federal 
programs such as vocational rehabilitation and our Ticket to Work 
program, to link students to more options and maximize prospects for 
their independence. Welfare can't be the only option for students with 
disabilities when they graduate from school.
  Finally, we must do more to help special education teachers--to 
recruit them, to train them, and to support them in this challenging 
field. They are the men and women we depend on everyday to stand up and 
say to our children: You can do it. You can succeed.
  We also help special education teachers by reducing the unnecessary 
paperwork that distracts teachers from focusing on students. It creates 
better ways for parents, teachers, and school administrators to work 
together to meet children's needs without resorting to litigation, and 
provides more flexibility to parents to develop their child's education 
program by teleconferencing and video conferencing.
  The legislation authorizes new funds to improve the quality of 
alternative placements, and to provide better behavioral supports 
through whole school interventions.
  The legislation provides more flexibility for schools to discipline 
students, with safeguards so that discipline is not used as an excuse 
to halt educational services, and is not used to exclude or segregate 
disabled children because of the failure of the school to provide for 
the educational needs of the child.
  Our ultimate goal should be to support disabled children, not punish 
them for what they can't control.
  I thank the many persons who have brought us successfully to this 
day.
  First and foremost, I commend the thousands of parents who met with 
Members and staff, sent letters, made a phone call, and participated in 
other ways in making this legislation possible. They have been citizen 
leaders at their very best, and have opened our eyes to their cause and 
let us into their lives, and we are proud of all they have 
accomplished.
  Here in the Senate, I commend Chairman Gregg for his leadership on 
this legislation over the years, and for all he has done to bring this 
important reauthorization before the Senate. All of

[[Page 9386]]

us are grateful to Annie White on his staff as well, for her dedication 
to making this bipartisan process work--and work, and work, and work.
  I commend the majority leader for scheduling the consideration of 
this legislation as soon as it was ready for action by the full Senate. 
Because of his willingness to act so quickly, we have a realistic 
opportunity to enact this important legislation into law this year. I 
also commend the distinguished minority leader for making consideration 
of this legislation possible and for his leadership on this and so many 
other issues of importance to the Nation and giving it the priority he 
has.
  I also commend Senator Sessions and John Little with his staff for 
their bipartisan effort in dealing with the discipline issue, which has 
needlessly plagued the debate on IDEA for so long.
  Senator Clinton deserves great credit for her work to ensure that new 
funds are provided to improve the quality of alternative student 
placements, to provide more effective behavioral supports for students, 
and to see that all schools are safe schools.
  Senator Harkin is always at the forefront of the movement for equal 
rights for all persons with disabilities, including children, and he 
has led the effort for full funding of IDEA.
  Mr. President, I yield myself 4 more minutes.
  Senator Dodd and Senator Jeffords worked effectively on this 
legislation to improve early childhood programs. They have been two 
pioneers in the development of the legislation since the very 
beginning, and they have been absolutely tireless in pursuing positive, 
constructive, responsive changes in these programs. They are both 
leaders on children's programs in the Senate.
  Senator Reed improved the training and recruitment of special 
education teachers. Senator Bingaman fought for strong enforcement of 
civil rights protections for every disabled student. Senator Mikulski 
strengthened support for students making the transition from schools to 
careers. Senator Murray improved the provisions on enforcement and the 
monitoring of the law and for caring for those children who are moving, 
who are in transition.
  I commend as well, the many members of our staffs, who have worked 
long and hard and well for the past 2 years. Our thanks go to Bethany 
Little, formerly with Senator Murray's staff; Jamie Fasteau, with 
Senator Murray's staff; Carmel Martin, formerly with Senator Bingaman's 
staff; Michael Yudin, with Senator Bingaman; Catherine Brown, with 
Senator Clinton; Justin King, with Senator Jeffords; Mary Giliberti and 
Eric Fatemi, with Senator Harkin; Rebecca Litt, with Senator Mikulski; 
Elyse Wasch, with Senator Reed; Maryellen McGuire, with Senator Dodd; 
Denzie McGoire and Bill Lucia, with Senator Gregg; Todd Haiken, with 
Senator Bingaman; and Denis Borum, formerly with Senator Reed.
  Our thanks also go out to the hundreds of disability and education 
advocates across the country who worked so hard on this legislation.
  I especially thank Jeremy Buzzell, Michael Dannenberg, Charlotte 
Burrows, Jim Manley, Jane Oates, Roberto Rodriguez, Kent Mitchell, 
Danica Petroshius and Michael Myers on my staff for their skillful work 
and dedication, and above all Connie Garner for all she has done for 
children with disabilities and their families and for never letting us 
forget what this debate and this law is really about.
  This bill represents our best bipartisan effort, and I look forward 
to its immediate and imminent passage and strong support from both 
sides of the aisle. As we move forward today to reconcile our 
differences with the House of Representatives, I hope we retain that 
same bipartisan spirit and quickly resolve our differences in this 
Congress and have this signed into law to benefit the children, the 
parents, and our country.
  Mr. President, I reserve the remainder of the time.
  The PRESIDING OFFICER. The Senator from New Hampshire.
  Mr. GREGG. Mr. President, first, I thank the Senator from 
Massachusetts for his help, assistance, and tireless effort in making 
sure this bill moved forward, and in an extremely constructive way. We 
have had considerable success in this committee in passing out of the 
committee a number of major pieces of legislation that have been 
bipartisan. Even in this time, as we head into a Presidential election, 
when there is a bit of tension and some slowdown in legislative 
activity due to the differences of opinion, which are being highlighted 
both substantively and politically, we have been able to make progress 
not only on special education but on other bills, such as the pension 
bill, which we passed and, hopefully fairly soon, on the bioshield 
bill, which is a critical piece of legislation. And that is in the last 
couple months.
  The special education bill is one this committee has attended to over 
the years and has tried to improve. It is a very intense piece of 
legislation in the sense that the parents and children who are affected 
by it are immediately impacted by everything we do. Clearly, the school 
systems, which try to respond to the needs of these children, and often 
have very complicated and difficult issues to resolve, are also 
immediately impacted.
  Therefore, I am glad we have been able to reach what is clearly a 
bipartisan and very positive and aggressive bill in moving forward on 
the issue of giving special needs children adequate education and 
appropriate education, to which they have a right and which, obviously, 
we all want to accomplish.
  The bill has received strong support from across the board. It is 
supported by the Council of Chief State School Officers, the American 
Association of School Administrators, Great City Schools, the National 
Association of State Directors of Special Education, the Council for 
Exceptional Children, the National Center for Learning Disabilities, 
the Association for the Education and Rehabilitation of the Blind and 
Visually Impaired.
  I think it is important to note those different groups that represent 
different constituencies because sometimes there is tension between 
those groups as to how special needs children should be addressed and 
how they should be educated.
  As Senator Kennedy has so effectively highlighted, the bill creates a 
number of initiatives with which we are trying to address improvement 
of the educational system as it reaches out to these children. The 
first area that is the most fundamental area of change is what the 
children are learning. Unfortunately, the present law that has evolved 
over time has become an inputs exercise. In fact, there are something 
like 819 items which must be checked off in every school district for 
every child relative to the special needs of that child and how they 
are educated. We came to the conclusion that this was not getting to 
the bottom line.
  The bottom line is, are these children learning? Is their life 
improving? Are they being given the tools they need in order to 
participate in society? The bill moves significantly from being an 
inputs-tested bill to being an outputs-tested bill, to looking at 
improvement in academic results as being the primary mode under which 
we evaluate whether the bill is working relative to the children it is 
supposed to impact.
  Secondly, it is the teacher who is the key player in this effort. 
Teachers who undertake teaching special needs children are 
extraordinary people. They are giving of themselves in an immense way. 
I had the chance, when I headed up a center that dealt with children 
who had severe disabilities, to constantly be amazed at the commitment 
of these individuals who are basically, 24 hours a day--at least in our 
institution--trying to assist the children as they work through their 
personal problems but also work toward learning more. What we have 
tried to do is give teachers some new tools and relieve them of some of 
the bureaucratic burden. That is especially important.
  It is estimated that the average special needs teacher may spend as 
much as a day and a half each week just doing paperwork. We tried to 
reduce

[[Page 9387]]

that and give the teachers the professional support they need and the 
assistance to make sure they are qualified to deal with these children 
who have very complex and difficult issues.
  Thirdly, we attempt to facilitate a better relationship between 
parents and the schools. Unfortunately, there is a natural tension. It 
has developed over time. Sometimes it becomes quite aggravated. It not 
only goes to the schools, it goes to the parents of other children in 
the school and the property-tax payers in the community. There is no 
reason a parent of a special needs child should find themselves in a 
confrontational situation as they try to get what is the appropriate 
education for their children. We have developed a whole series of 
initiatives to try to, for better or worse, create dispute resolution 
in a more comfortable manner rather than a confrontational and 
litigious manner. This is important to the parent and to the school 
system. It will mean resources, instead of being focused on hiring 
attorneys and confrontation in the courtroom or confrontation in a 
formal legal setting, can be focused on actually educating the child in 
the classroom. That is the bottom line.
  Fourth, the bill gives schools the tools they need to ensure that all 
the children are safe. As Senator Kennedy mentioned, discipline has 
always been a very difficult issue relative to IDEA, relative to 
special needs children. Disruption in the classroom is one of the 
primary concerns you hear when talking with teachers and faculty in 
relation to how special needs children are handled and dealt with in 
the classroom. In this bill we try to address that. We have made 
significant progress.
  I need to especially point out the work of Senator Sessions who 
focused on this issue, and in a very constructive way moved the process 
forward, so we have an excellent piece of legislation in this area.
  Lastly, we do have, as part of the amendments which passed yesterday, 
a glide path to full funding under the discretionary accounts, which is 
the proper way it should be done. In the history of dramatic increases 
in funding in this account, as was mentioned by Senator Bond, a 376-
percent increase is the fastest growing funding increase of any 
spending item in the Federal budget on a percentage basis over the last 
few years. The commitment is there and now the authorization is locked 
in to get us to full funding in 6 to 7 years.
  This is a good piece of legislation. I expect it to receive very 
strong support. It didn't come about through luck and just out of the 
blue. It came about because a lot of people spent a lot of time over a 
significant period in constructing it and listening and bringing the 
people who were involved to the table to discuss it.
  I especially thank some of those folks because most of this work is 
done by our staff, and they do an extraordinary job. Let me mention a 
couple. Senator Kennedy has mentioned them also on his side of the 
aisle.
  Specifically with Senator Sessions, there was John Little of his 
staff who worked so hard on the discipline issue. Senator Alexander and 
his staff; Kristin Bannerman, worked very hard on providing State and 
school districts greater flexibility. Of course, from Senator Kennedy 
and his staff there is Michael Myers, who is staff director, and Connie 
Garner, who was already mentioned, who has been a major player. And 
Jeremy Buzzell, we very much appreciate his effort.
  On my staff, I have some extraordinary people who have done 
incredible work and deserve a great amount of accolades for this bill 
getting to this point: Annie White, who is truly a specialist in this 
area; Denzel McGuire, an extraordinary leader on all educational 
issues; and Bill Lucia, who is equally strong on these issues. I have 
had the very good fortune to have an exceptional staff--and, of course, 
my staff director Sharon Soderstrom, who does an exceptional job on all 
issues. We are very lucky to have these folks working for us.
  As a result of their efforts, we have been able to produce what I 
believe is an exceptional and a positive work product which is 
consistent with the efforts of this committee generally, as I 
mentioned.
  I thought I might read some of the things we have been able to pass 
out of this committee this year, this Congress, to reflect on how 
constructive we have been, even in a time of some considerable 
partisanship. We have done the genetics nondiscrimination bill; the 
generics drug bill, which reduces the cost of generics; special 
education; the community services block grant; the Workforce Investment 
Act, if we can get that to conference; we have the trauma care bill; 
the medical devices bill; the child abuse prevention and treatment 
bill; the childcare block grant; the Smallpox Emergency Personnel 
Protection Act; pediatric drug research authority; Organ Donation and 
Recovery Act; and the Birth Defects Act. That is just a few of the 
pieces of legislation we have been able to produce out of this 
committee in a bipartisan effort.
  I certainly appreciate the assistance of Senator Kennedy undertaking 
and accomplishing this very strong record.
  I reserve the remainder of my time.
  The PRESIDING OFFICER. Who yields time?
  Mr. KENNEDY. Mr. President, how much time do I have?
  The PRESIDING OFFICER. The Senator has 16 minutes.
  Mr. KENNEDY. Mr. President, I yield myself 3 minutes. We have other 
speakers coming, but I want to read into the Record what difference 
this law has made, which really tells the story.
  This is a letter from Lyssa Bookman from Galloway, OH. This is a 
letter we received, actually, a few weeks ago. I pointed out earlier 
that we have over 3,000 letters on this legislation, very thoughtful 
letters, enormously compelling, extremely moving; in many instances, 
inspiring. I will just read from this letter:

       IDEA is necessary for all children. My personal experience 
     started long before my daughter was of school age. She was 
     diagnosed with Leukemia at nine months old. Due to her 
     treatments she has long-term cognitive side effects. I have 
     had to beg to get any services for her. I have never had to 
     hire an attorney but have had to tell the building principal 
     and superintendent of schools that they left me with no 
     choice but to file suit against the district of the IDEA 
     laws. As soon as I mentioned it I had what I was after. All 
     my daughter needs is extra time to complete tests and 
     assignments. If the law was not in place, I would not have a 
     leg to stand on and my daughter would have been miserable in 
     school. Homeschooling would have been my only option. She is 
     now a fifth grade student in a gifted class with a 504 plan 
     giving the slight modification of extra time. Without IDEA, 
     she would not be able to handle the pressures placed on a 
     gifted student. Learning disabilities and giftedness can go 
     hand in hand and with IDEA the giftedness can shine and the 
     disability overcome. IDEA gives the disabled child that 
     chance to shine and takes one worry out of the parents' 
     minds. Thank you for your efforts for the kids. They are the 
     future.

  I have another letter from Cathie Davis of Tennessee. She writes:

       We moved to Monroe County, Tennessee where we will remain 
     until Angel graduates high school. Angel was the first 
     hearing impaired special needs student to enter their school 
     system and they have gone above and beyond to see to it that 
     Angel receives the best education possible. They provided her 
     with an interpreter, Joyce Boyles who has been with her since 
     the second grade. Mrs. Boyles put together a group they call 
     singing hands as a way of teaching the other students how to 
     communicate with Angel as opposed to only teaching Angel to 
     communicate with them. These students (all hearing) along 
     with Angel have been invited to perform at many events 
     throughout the State of Tennessee, signing the words to songs 
     such as ``I'm Proud to be an American'' by Lee Greenwood. 
     Angel has made all ``A's'' and ``B's'' on the sliding grade 
     scale and as of this year, without the aid of any Special Ed 
     classes and on a regular grading scale, she has maintained a 
     ``C'' average.

  Mr. President, this is the kind of mail we have received. There are 
others, obviously, who have not had as much success under the old bill. 
We tried to address those issues in the current legislation.
  Here is another parent who wrote. Her name is Denice Cronin, from 
Houston, TX. She wrote:

       IDEA gave me the rights to ask for testing outside of the 
     school by an unbiased professional, paid for by the school. 
     Based on these findings, the school adjusted their style of

[[Page 9388]]

     teaching and Bonnie again excelled. I still had to seek 
     outside teachings to ensure her success. The Texas Reading 
     Institute of Texas saved my daughter's sanity, as well as my 
     son's.
       Today, she is a healthy 7th grade A-B student, still 
     classified as learning disabled. She attends, completes and 
     excels in the ``normal'' classroom. She even passes the TAKs 
     instead of taking the ``alternative testing.'' Should she run 
     into a setback, we have the rights and laws in place, due to 
     IDEA, to protect and ensure she continues to receive a ``fair 
     and complete education''.

  In the past, these children were stored away in back rooms, even if 
they were lucky enough to get into the school some years ago. We 
mentioned several who have been able to benefit from the bill. We are 
convinced that with the changes we have made in the legislation, many 
more families will be able to do so as well.
  Mr. President, I withhold the remainder of my time and suggest the 
absence of a quorum, and I ask unanimous consent that the time during 
the quorum call be equally divided.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. KENNEDY. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. KENNEDY. Mr. President, I understand the Senator from 
Pennsylvania is expected momentarily. Let me read a hopeful letter from 
Carolyn Wright, from Spokane, WA, which we received earlier this year:

       My son, Aaron, attends his neighborhood elementary school. 
     He is in the same first-grade class as the boy who lives next 
     door. Sometimes after school Aaron and the neighbor boy play 
     together. They play Nintendo, sometimes ``boxing,'' or they 
     play catch.
       None of that is unusual except that Aaron has Down 
     Syndrome. If it weren't for the Individuals with Disabilities 
     Education Act (IDEA) Aaron would not be in class with his 
     neighbor. He would not get his chance to hold the flag during 
     the Pledge of Allegiance. He would not have the opportunity 
     to tell his friends that he has a cat or to learn that 
     ``Joey'' has a dog. IDEA has helped Aaron be a part of his 
     school community.
       Math is a difficult subject for Aaron so he has a different 
     curriculum than other first graders and he is taught in the 
     special education classroom along with other students who 
     struggle with math. However, Aaron likes to read so he joins 
     the first-grade reading group to improve his reading skills. 
     Each area of Aaron's curriculum has been addressed so that he 
     is in the least restrictive environment possible that will 
     facilitate his learning.
       Whenever Aaron's Individualized Education Plan (IEP) needs 
     revision, my husband and I are included in the discussion 
     with the multi-disciplinary team. Placement options are 
     discussed along with specific skill areas that need to be 
     addressed, keeping in mind Aaron's position as a member of 
     the community as well as his place in school. As part of the 
     IEP team we determine what curriculum will best meet Aaron's 
     needs.
       We are very grateful to have IDEA. Because of IDEA Aaron is 
     a member of his neighborhood community and he is learning the 
     skills he needs to be independent. He may never be able to 
     live entirely independently but he will have a job and he 
     will contribute to society.

  That is what this legislation is all about, Mr. President. We wish 
Aaron great luck. We believe there are many other ``Aarons'' in the 
country who will continue to benefit. We hope to do it in a better way.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. SANTORUM. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                    Amendment No. 3149, As Modified

  Mr. SANTORUM. Mr. President, I send a modification to amendment No. 
3149 to the desk.
  The PRESIDING OFFICER. Without objection, the amendment is so 
modified.
  The amendment (No. 3149), as modified, is as follows:

       Amend section 609 of the Individuals with Disabilities 
     Education Act, as amended by section 101 of the bill, to read 
     as follows:

     ``SEC. 609. PAPERWORK REDUCTION.

       ``(a) Report to Congress.--The Comptroller General shall 
     conduct a review of Federal, State, and local requirements 
     relating to the education of children with disabilities to 
     determine which requirements result in excessive paperwork 
     completion burdens for teachers, related services providers, 
     and school administrators, and shall report to Congress not 
     later than 18 months after the date of enactment of the 
     Individuals with Disabilities Education Improvement Act of 
     2003 regarding such review along with strategic proposals for 
     reducing the paperwork burdens on teachers.
       ``(b) Paperwork Reduction Demonstration.--
       ``(1) Pilot program.--
       ``(A) Purpose.--The purpose of this subsection 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 Act, 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.
       ``(B) Authorization.--
       ``(i) In general.--In order to carry out the purpose of 
     this subsection, the Secretary is authorized to grant waivers 
     of statutory requirements of, or regulatory requirements 
     relating to, this part 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.
       ``(ii) Exception.--The Secretary shall not waive any 
     statutory requirements of, or regulatory requirements 
     relating to, applicable civil rights requirements.
       ``(iii) Rule of construction.--Nothing in this subsection 
     shall be construed to--

       ``(I) affect the right of a child with a disability to 
     receive a free appropriate public education under this part; 
     and
       ``(II) permit a State or local educational agency to waive 
     procedural safeguards under section 615.

       ``(C) 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--

       ``(I) a list of any statutory requirements of, or 
     regulatory requirements relating to, this part that the State 
     desires the Secretary to waive or change, 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.

       ``(D) Termination of waiver.--The Secretary shall terminate 
     a State's waiver under this subsection if the Secretary 
     determines that the State--
       ``(i) has failed to make satisfactory progress in meeting 
     the indicators described in section 616; or
       ``(ii) has failed to appropriately implement its waiver.
       ``(2) Report.--Beginning 2 years after the date of 
     enactment of the Individuals with Disabilities Education 
     Improvement Act of 2003, 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 
     paragraph (1), including any specific recommendations for 
     broader implementation of such waivers, in--
       ``(A) 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;
       ``(B) enhancing longer-term educational planning;
       ``(C) improving positive outcomes for children with 
     disabilities;
       ``(D) promoting collaboration between IEP Team members; and
       ``(E) ensuring satisfaction of family members.

  Mr. SANTORUM. I thank the Chair.
  I ask unanimous consent that Senator Thomas be added as a cosponsor 
to my amendment.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. SANTORUM. Mr. President, I first and foremost thank Senator Gregg 
and Senator Kennedy for their willingness to work with me on this 
amendment. This is an amendment that comes from the many visits I had 
in public schools across Pennsylvania where I heard from special 
education teachers, in particular, and administrators about the 
enormous amount of paperwork that special education teachers have to 
deal with and how it is a point of great dissatisfaction among those 
teachers, as well as a factor in what they believe is limiting their 
time and limiting the quality of the

[[Page 9389]]

education children who are covered under IDEA receive. As a result, I 
wanted to create an opportunity for States to, through a pilot, do some 
innovation and, working with the Department of Education, try to reduce 
the amount of paperwork our teachers have to go through.
  This is a serious problem in trying to recruit and retain special 
education teachers. In fact, the most recent figure I have is that in 
the 1999-2000 school year, there were 12,000 special education 
openings. The principal reason for that was the enormous paperwork 
burden, the frustration that comes with having to deal with the 
``bureaucracy'' and ``redtape,'' as it has been put to me on more than 
one occasion. These positions, for the most part, were left vacant or 
filled by substitutes who did not have the qualifications necessary to 
teach these students who have special needs.
  I suggest we are trying to address a problem that is out there, not 
trying to limit the quality of the education of children with special 
needs, but actually getting more qualified teachers into the classrooms 
to deal with this population that does have extraordinary needs, in 
some cases, but without the extraordinary amount of paperwork that 
comes with meeting those needs.
  We have worked closely with the NEA. In fact, the NEA has endorsed 
this amendment. They say:

       Paperwork reduction in IDEA is one of the highest 
     priorities of our members. We commend you for your 
     acknowledgment that excessive paperwork not only takes 
     valuable instruction time away from students, but is a 
     critical component of the retention crisis we face in the 
     field of special education.

  This is an important issue for teachers and should be an important 
issue for those parents and children in the special education system.
  This is a way to keep qualified teachers, to have them spend more 
quality time and better time with children in the classroom. What we 
have done is set up a pilot program. The pilot program, under the 
modification I just sent to the desk, is for 15 States. The goal is to 
increase instructional time and to improve the results of children with 
special needs.
  Again, the idea here is to create an opportunity for innovation, an 
opportunity for States to not waive any provisions of this act. 
Particularly I know the concern Senator Kennedy and many have that the 
Secretary of Education cannot waive in a request from the States any 
applicable civil rights requirements. I had some parents meet with me 
last week, and they were very concerned about this amendment and how it 
would affect their child and their ability to get what was entitled to 
them as far as education under IDEA.
  Let me make it clear: Nothing in this demonstration can create a 
waiver of any applicable civil rights requirements, and nothing in this 
demonstration will affect the right of a child with a disability to 
receive free appropriate public education. That, to me, is something at 
the heart, something I know the parents want and, obviously, the NEA 
should be concerned about it, as I am sure they are. I want to make it 
clear that what we are talking about is things that do not really add 
to the bottom line: quality of kids' education.
  I am excited that Senator Kennedy and Senator Gregg have agreed. I 
understand the House has a similar amendment to this amendment that has 
a 10-State demonstration project. We have talked with the House, with 
Senator Kennedy, and Senator Gregg. I think we have an agreement that 
this 15-State demonstration is a good number and is a number we can all 
agree will stay in conference.
  This program will be part of this new authorization and will create 
an opportunity for States--I am certainly hopeful that Pennsylvania 
will be one of the States that will be participating in this 
demonstration--to be innovative to improve the quality of education for 
children with disabilities and be a plus for them as well as teachers 
and school districts as a whole.
  I yield the floor.
  Mr. GREGG. Mr. President, reducing the paperwork burdens within IDEA 
is one of the Senate's top priorities in reauthorizing this important 
law.
  We want to empower teachers to spend more time with their students in 
the classroom, rather than spending endless hours filling out forms 
that do not lead to a better education for students.
  This bill already contains a number of excellent provisions aimed at 
cutting down on unnecessary paperwork for both teachers and parents. 
For instance, S. 1248 streamlines state and local requirements to 
ensure that paperwork focuses on improved educational and functional 
results for children with disabilities.
  It clarifies that no information is required in an IEP beyond what 
Federal law requires.
  It eliminates the requirements that IEPs must include benchmarks and 
short-term objectives that generate more paperwork, but requires a 
description of how progress is measured, including quarterly reports to 
parents.
  It reduces the number of times that procedural safeguards notices 
must be sent out to parents to once per year, unless their parent 
registers a complaint or requests a copy.
  It ensures that State regulations are consistent with IDEA and that 
any state-imposed requirements or paperwork reporting are clearly 
identified to local educational agencies.
  And it requires the Secretary to develop model forms, review 
paperwork requirements and provide Congress with proposals to reduce 
the paperwork burden on teachers.
  This is a great start on reducing paperwork for teachers, parents, 
and administrators.
  However, we need to do more.
  The amount of paperwork special education teachers are required to 
complete is burdensome, takes valuable time away from the classroom, 
and undermines the goal of providing the best quality education 
possible to all children.
  Let me give you some statistics to illustrate this problem.
  According to a recent study by the Council for Exceptional Children, 
a majority of special educators estimate that they spend a day or more 
each week on paperwork, and 83 percent report spending half to one and 
a half days per week in IEP-related meetings.
  Special education teachers spend an average of 5 hours per week on 
paperwork, compared to general education teachers who spend an average 
of 2 hours per week on paperwork. The average length of an 
individualized education program, or IEP, one of the biggest sources of 
paperwork, is between 8 and 16 pages. Fifty-three percent of special 
education teachers report that, to a great extent, their routine duties 
and paperwork interfere with their interaction with their students.
  Special educators spend more time on paperwork than grading papers, 
communicating with parents, sharing expertise with colleagues, 
supervising paraprofessionals and attending individualized education 
program meetings combined.
  While special educators spend the majority of their time on paperwork 
filling out compliance and documentation-related paperwork, general 
educators spend most of their time completing instructionally relevant 
paperwork such as tracking students' academic progress across the 
curriculum.
  With these overwhelming paperwork burdens on teachers, we need to ask 
ourselves what kind of effect they are having on our special education 
system.
  Special education teachers feel excessive paperwork interferes with 
their ability to serve children with disabilities more effectively. The 
study of personnel needs in special education, SPENSE, sponsored by 
OSEP reveals that special education teachers often cite required forms 
and administrative paperwork as an area of dissatisfaction with their 
working conditions.
  The excessive amount of paperwork currently inherent in the process 
overwhelms and burdens teachers, robbing them of time to educate their 
students. It also makes it more difficult for school districts to 
retain and recruit highly qualified special education teachers.
  Studies from the Department of Education show that the nation is 
facing a

[[Page 9390]]

significant shortage of special education teachers, and many special 
educators leaving the field cite the burden of unnecessary paperwork as 
one of the primary reasons for their departure.
  Simply put, teachers, schools, local educational agencies, and States 
should be relieved of irrelevant and unnecessary paperwork burdens that 
do not lead to improved educational outcomes for children with 
disabilities.
  Therefore, I support the amendment of the Senator from Pennsylvania, 
which authorizes a pilot program allowing States to demonstrate 
innovative and creative measures to reduce the paperwork burden.
  The Secretary of Education would be authorized to grant waivers of 
paperwork requirements to 15 States based on proposals submitted by 
States for reducing paperwork.
  The goal is to increase instructional time and resources and improve 
results for students with disabilities.
  This pilot program is not meant to decrease any of the rights 
children have under the Act, but is intended to allow those States who 
choose to participate to think creatively and innovatively about how to 
best meet the demands of the Act while reducing the paperwork burden so 
school personnel can focus on educating children with disabilities.
  In fact, we clearly state that the Secretary of Education may not 
waive any applicable civil rights requirements or procedural safeguards 
under Section 615, and nothing in the demo will affect the right of a 
child with a disability to receive a free appropriate public education, 
FAPE.
  The amendment also includes a rigorous reporting requirement to 
ensure that the Secretary reports to Congress about the success of this 
program in reducing unnecessary paperwork while preserving the rights 
of children served under the Act.
  The National Education Association, made up of 2.7 million teachers, 
supports this amendment. The NEA says that paperwork reduction in IDEA 
is one of the highest priorities of its members.
  I urge my colleagues to pass this amendment, so that our Nation's 
teachers can spend more time on providing high quality education 
services to our Nation's children with disabilities--rather than on 
filling out mounds of unnecessary paperwork.
  Mr. BINGAMAN. Mr. President, I am very pleased that Senator Santorum 
and I were able to reach agreement on this amendment. The Paperwork 
Reduction Demo would provide up to 15 States with the opportunity to 
develop innovative methods of reducing burdensome paperwork so that 
teachers can spend more time teaching and improving educational and 
functional outcomes for children with disabilities. At the same time, 
it protects a child's right to a free appropriate public education, and 
the procedural safeguards necessary to ensure this right.
  IDEA is sometimes seen as a controversial piece of legislation. It is 
a unique blend of civil rights law and State grant program, and as a 
result, often pits the constitutional rights of children with 
disabilities to a free appropriate public education against the 
flexibility teachers need to teach. I believe this amendment strikes a 
good, fair balance.
  As we reauthorize IDEA, it is important to note that next week, this 
country will be celebrating 50 years of public school desegregation. In 
the landmark decision of Brown v. Board of Education, Chief Justice 
Warren wrote that ``in the field of public education, the doctrine of 
`separate but equal' has no place.'' This decision literally opened the 
doors of our public schools to all children, regardless of race.
  The doors to a public education, however, did not open quite so 
quickly for children with disabilities. Twenty years after the decision 
in Brown, children with disabilities were still being segregated.
  In the 1970s schools in America educated only one in five students 
with disabilities. More than 1 million students were excluded from 
public schools, and another 3.5 million did not receive appropriate 
services. Many States had laws excluding certain students, including 
those who were blind, deaf, or labeled. ``emotionally disturbed'' or 
``mentally retarded.'' The likelihood of exclusive was significantly 
greater for children with disabilities living in low-income, ethnic and 
racial minority, or rural communities.
  Parents, however, began asserting their children's rights to attend 
public schools, using the same equal protection arguments used on 
behalf of the African American children in Brown: the 14th amendment of 
the U.S. Constitution guarantees their children and equal protection 
under the law. Congress responded, and in 1975, enacted the Education 
for All Handicapped Children Act, now known as IDEA.
  Recognizing the Constitution's guarantee of equal protection under 
the law, Congress created the statutory right to a free appropriate 
public education in the least restrictive environment.
  I believe we all recognize the challenges of providing teachers with 
enough flexibility so they can do their job while ensuring that the 
constitutional protections afforded to children with disabilities 
remain intact.
  We also must continue to hold our States accountable for educational 
outcomes of our children. I think this amendment meets that challenge, 
and I am pleased to support it.
  I think the underlying bill, S. 1248, also achieves the goal of 
balancing the interests of our teachers and schools with the interests 
of improving achievement for and protecting the right of children with 
disabilities and their families.
  This bill makes it simpler for teachers and schools to teach children 
with disabilities in many ways. For example, the bill: simplifies the 
discipline provisions and makes it easier for schools to administer the 
law; provides new opportunities for schools and parents to resolve 
disputes equitably; substantially reduces paperwork in many ways, 
including, of course, by allowing a number of States to waive paperwork 
burdens in accordance with this amendment; increases local flexibility 
and control of resources by allowing school districts that are in 
compliance with the law to use from 8 percent up to 25 percent of their 
Federal funds for local priorities; and authorizes local school 
districts to use up to 15 percent of their Federal IDEA funds to 
support students without disabilities in grades K-12 who require 
additional academic and behavioral supports to succeed in the general 
education curriculum.
  The bill also makes significant improvements for children and their 
families. For example, it; emphasizes the goal of improving academic 
achievement and functional performance within a child's IEP; ensures 
that children with disabilities are included in the accountability 
requirements of No Child Left Behind provides the Secretary of 
Education and the States with greater authority and tools to implement, 
monitor, and enforce the law; provides resources to States to support 
teacher preparation and professional development program; improves 
parental involvement; improves transition services to help students 
begin planning for life after high school; provides earlier access to 
services; improves early intervention and preschool programs; and 
ensures positive behavioral interventions and supports are in place for 
a child whose behavior impedes the child's ability to learn.
  We must ensure that children with disabilities have access to, and 
succeed in, the general education curriculum. I am disappointed that 
this body did not approve full funding of IDEA, but I believe this bill 
goes a long way in providing the tools, resources, and the flexibility 
to achieve this goal. I am pleased to support this bill and this 
amendment.
  Mr. KENNEDY. Mr. President, I rise today in support of this amendment 
because it will give States the flexibility they need to reduce special 
education paperwork.
  We have heard from many teachers that they must take too much time 
out of their busy days to complete IDEA paperwork requirements. 
Teachers would rather spend that time in the classroom teaching their 
students.
  We have heard these concerns loud and clear, and we have responded 
with

[[Page 9391]]

changes to make things easier for both parents and teachers. This bill 
reduces paperwork and meetings by: Streamlining educational planning 
and procedural requirements; simplifying the Federal application 
process; encouraging the use of technology; clarifying that no 
paperwork is required beyond what is in the Federal law; and requiring 
the Department of Education to develop model forms.
  These changes will go a long way to simplifying the work of special 
education teachers and giving them more time to do what they do best--
teach children. These changes will also make it possible for more 
parents to participate in their child's education.
  This amendment will give a limited number of States the opportunity 
to do even more to address paperwork by giving them flexibility to 
waive paperwork requirements. But today the Senate needs to make it 
absolutely clear that this flexibility does not include waiving Civil 
Rights protections for disabled students.
  Civil Rights are the very heart of the IDEA. The right to go to a 
public school, the right to learn alongside one's peers, the right to 
an appropriate education, and the right to due process, are fundamental 
to this law and we cannot allow waivers to trade these rights in 
exchange for less paperwork.
  In July 2002, President Bush's Commission on Excellence in Special 
Education gave Congress and the President its recommendations for 
improving results for disabled students. This commission offered many 
suggestions for reducing paperwork in special education and allowing 
these waivers was one of them.
  But the chair of the President's commission was absolutely clear that 
paperwork reduction should not threaten civil rights. Listen to what 
the chair, Governor Terry Branstad of Iowa, had to say when he 
testified before the House on the IDEA and the commission's report:

     `` . . . [A]s we are trying to reduce the paperwork, 
     streamline it, and make it more efficient, we . . . want to . 
     . . protect their civil rights.''

  We must ensure that States live up to the full intent of the 
commission's recommendation--to balance paperwork reduction with civil 
rights protections.
  The chair of the President's commission is not alone in his concern 
for protecting civil rights while reducing paperwork. The National 
Council on Disability--the Federal agency responsible for advising 
President and Congress on issues affecting the disabled--says that, if 
not done carefully, waivers may have unintended consequences. According 
to the National Council on Disability:

     Waivers threaten educational quality because instruction and 
     achievement are measured by documenting progress.

     Waivers threaten civil rights because compliance with the law 
     must be documented.

  Let me first speak to the issue of paperwork and educational quality. 
Ask any teacher how he or she begins the day before the students 
arrive. They begin by reviewing a lesson plan that sets the goals for 
the day and describes how those goals will be reached. They develop 
tests for their students to see if they are meeting those goals. These 
lesson plans, goals, and tests are based on a thoughtful and 
comprehensive curriculum. This is all paperwork--paperwork that is 
necessary to ensure quality instruction for every student.
  Quality instruction for disabled students is no different. Special 
education paperwork ensures that schools think carefully about how best 
to educate a disabled student, then document their plan, and then 
document progress. Does any of that paperwork sound unnecessary?
  If States interpret these waivers as a license to set aside these 
important pieces of a disabled child's education, we have completely 
undermined the focus on academic and functional achievement in this 
bill.
  Just like the National Council on Disability, I also have expressed 
my great concern about protecting civil rights if States are given too 
much flexibility. In my opening statement, I addressed the issue of 
noncompliance with this law. All across this country, nearly 30 years 
after this law was first passed, many disabled children still are 
denied their right to a public education. Year after year, the majority 
of States fail to implement the IDEA and are found out of compliance 
with its most basic requirements.
  Reports from the Department of Education show just how rampant 
noncompliance with the IDEA is. From 2000 to 2003: 76 percent of States 
did not appropriately resolve complaints; 71 percent of States lacked 
effective systems to monitor and enforce the law; 71 percent of States 
did not educated disabled children with their peers; and 65 percent of 
States did not appropriately prepare students for post-school 
employment and independent living.
  These States already blatantly disregard the requirements of the 
IDEA. Imagine what would happen if these States are given waivers 
without the clear limitations set forth in this amendment, if they 
could feel free to waive any requirement in the name of paperwork 
reduction. The impact of unlimited paperwork waivers on disabled 
students in States like these could be devastating.
  Even with detailed requirements for education plans and other 
paperwork under current law, look at what is happening to disabled 
children all across the nation.
  The Richer family from Oregon writes that their school made the 
decision to shorten their son's school day by 3 hours--without asking 
the parents first. The same school district completed their son's 
education plan and assigned him to a classroom without including his 
parents in the decision.
  The Johnson family from new Jersey writes that it took 18 months to 
get an appropriate educational plan written for their child, and the 
school still will not provide the speech therapy and counseling 
services written on that plan.
  These are true stories, just like the hundreds of other true stories 
that parents have sent to me. This is why it must be made absolutely 
clear that these waivers are not a free pass out of accountability or a 
way to erode individualized education plans that are the cornerstone of 
the IDEA.
  Look at any other field--the legal field, the medical field, or 
business. In these fields, if it wasn't documented, it wasn't done. 
Insurers don't pay doctors when they don't document the care they 
provided. Clients don't pay lawyers if they do not document the hours 
spent on a case. And businesses don't provide their services without a 
contract. In every part of life, documentation is the way we guarantee 
that people did what they promised to do. It is not too much to ask 
that schools do the same so we can be sure they are complying with the 
law and giving every disabled child an appropriate education.
  I know that we demand a lot of our teachers. We ask them to not only 
educate our children to become productive citizens, but also to be 
counselors, mentors, and role models. And, yes, we ask them to do 
paperwork on top of that.
  Should the Senate do everything it can to make it easier for special 
education teachers to focus on the needs of students instead of 
focusing on paperwork? Absolutely--but not at the cost of educational 
accountability and civil rights for students with disabilities. Not if 
it undermines the foundations of the IDEA. Without the limitations set 
forth in this amendment, waivers may have the unintended consequence of 
allowing States to experiment with the civil rights of millions of 
disabled students for years to come.
  I do not object to giving States the chance to creatively address the 
issue of paperwork. This amendment offers States an exciting 
opportunity to make sure that teachers have more time to plan, take 
professional development courses, or provide extra help to students. 
Giving teachers more time means giving them a chance to do what they 
love most: focus on the needs of students.
  But the needs of disabled students cannot be met without first 
guaranteeing that they have the full protection of the law. This 
amendment provides that guarantee, while still encouraging paperwork 
reduction, and I urge my colleagues to support it.

[[Page 9392]]

  Mr. President, I thank the Senator from Pennsylvania for offering the 
amendment that will reduce the paperwork for teachers and also ensure 
the protection of the rights of disabled children.
  This amendment draws a clear line between unnecessary paperwork about 
the process and necessary documentation and ensuring every disabled 
child's right to a free and appropriate public education.
  The Senator from Pennsylvania has made it clear that States will not 
be allowed to waive the civil rights of disabled students or waive 
procedural safeguards guaranteed under law.
  This is a good amendment. It balances the needs of both the teachers 
and students. I thank him for his work on this amendment and also for 
his accommodation and willingness to work this out. It has been very 
helpful.
  I will wait for my colleague, the chairman, before urging the 
adoption of the amendment, but I expect it will be done momentarily.
  I suggest the absence of a quorum, with the time to be evenly 
divided.
  The PRESIDING OFFICER. Without objection, the clerk will call the 
roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. SANTORUM. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. SANTORUM. Mr. President, I have been informed by Senator Gregg's 
staff that he does not seek any time.
  Mr. President, I urge the adoption of my amendment.
  The PRESIDING OFFICER. The question is on agreeing to amendment No. 
3149, as modified.
  The amendment (No. 3149), as modified, was agreed to.
  Mr. KENNEDY. Mr. President, I move to reconsider the vote, and I move 
to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. KENNEDY. Mr. President, how much time remains?
  The PRESIDING OFFICER. There is 6 minutes 6 seconds on the majority 
side and 5 minutes on the minority side.
  Mr. KENNEDY. I will be glad to yield the 5 minutes to the Senator 
from Minnesota.
  The PRESIDING OFFICER. The Senator from Minnesota is recognized for 5 
minutes.
  Mr. DAYTON. Mr. President, I thank the Senator from Massachusetts. He 
has been such a dedicated champion for the needs of special education 
throughout the country for all these years. I wish his dedication was 
reflected fully in this legislation on which we are going to be voting 
shortly.
  In an era when we are talking so much about accountability in 
education, the teachers, administrators, and local school boards 
throughout our country who are supposed to be accountable for results, 
for ``making acceptable progress'' and improving student test scores, 
we, too, in the Senate have a role and responsibility to aid and assist 
them in making that progress.
  I regrettably believe this legislation falls seriously short of our 
responsibility to them and to the students they are helping and 
supporting and without our full involvement and aid are less likely to 
succeed.
  In this important area of special education, we in the Senate, the 
Congress, and the Federal Government have very special responsibilities 
because it was Congress who established these rights for every American 
child to a quality public education a quarter century ago and mandated 
every school district with the responsibility to provide it.
  I was not here when that legislation passed, but its language implied 
that schools would be reluctant, perhaps even resistant, to assume 
their responsibilities. That was over a quarter century ago.
  I speak from my personal knowledge about Minnesota, and I assume it 
is true throughout our country, our public schools, our teachers, 
administrators, support personnel, and policymakers are the 
legislation's allies. In Minnesota, our educators are fully committed 
and deeply dedicated to providing the best possible special education 
to every student with special needs and in fact every student who comes 
through their doors. They are doing so, as I have personally witnessed 
in hundreds of special education classes throughout Minnesota, with 
amazing skills, heart-warming personal devotion and often extraordinary 
success. They are doing so increasingly in spite of, not because of, 
the Senate.
  This legislation fails our responsibility to the students of this 
Nation with special needs, to their dedication and to their cause, 
which is our cause. Yesterday an amendment failed which would have 
fulfilled in 6 years a promise the U.S. Congress made over a quarter 
century ago when it passed the initial legislation to fund 40 percent 
of the costs of special education.
  In the year 2001, when we had all of these surpluses we were told 
would exist throughout the decade, the Senate did pass such an 
amendment, but the House of Representatives and the administration 
refused to accept it and so it was not put into that law.
  I have tried 5 times in the last 3 years, with amendments, to have us 
realize our long-broken promise in 1 year, in a succeeding fiscal year, 
and those amendments have failed.
  I was shocked and appalled that this body rejected Senator Harkin's 
amendment to bring us up to that promised 40-percent level in 6 years. 
Today it is less than half of that promise. That cost Minnesota schools 
$250 million a year. That is money that is badly needed to fulfill 
their responsibilities to children with special needs and it is money 
then that often has to be taken out of regular school programs because 
they have a legal responsibility and liability to provide those special 
education services. So it means all of the students in Minnesota get 
shortchanged because this Senate will not keep its promise. The 
majority decided to provide an additional $39 billion over the next 10 
years in tax advantages to companies for their foreign operations, tax 
preferences to expand their foreign businesses and take more jobs away 
from the United States and put them overseas. That was deemed worthy of 
$39 billion.
  The PRESIDING OFFICER. The time of the Senator has expired.
  Mr. DAYTON. I ask unanimous consent for an additional 2 minutes to 
conclude my remarks.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. DAYTON. Mr. President, at that same time, where there is $39 
billion around somewhere for giant corporations and wealthy investors 
who do not need it, there is not a willingness to provide even in 6 
years the promised 40-percent level for students with special needs. It 
is not that we do not have the money; we do not have the right 
priorities; we do not have the will. It is terribly unfair for us to be 
telling the school districts they have to run tests every year and 
include children with special needs and be measured and publicized and 
in some cases publicly embarrassed because they are not making 
acceptable progress toward goals that have been established when we do 
not provide the money to enable them to do it. Shame on us, not them. 
It is irresponsible and it is inexcusable. This money is badly needed 
in Minnesota, and I assume elsewhere in the country.
  In terms of reform, the paperwork that burdens the reporting 
requirements is driving Minnesota teachers out of special education and 
out of the classroom entirely. Those who remain spend less than half of 
their time actually working with students because they are so busy 
filling out the forms the Federal Government has imposed on them, as 
well as some by the State and the school districts for sure. I commend 
Senator Santorum for offering a pilot program for 15 States, but it is 
the job of the Senate to determine those reforms. I have heard for over 
3 years the reason we are not providing money for special education is 
because we have to ``reform it first''. So now we are passing a bill 
that has minimal reforms and a pilot program and no additional money.
  I think it is a terrible disservice to No Child Left Behind, which is 
being proven once again to be a nice phrase

[[Page 9393]]

but with no real meaning or commitment behind it. I think we will 
regret that.
  I yield the floor.
  The PRESIDING OFFICER (Mr. Graham of South Carolina). Who yields 
time?
  Mr. GREGG. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. GREGG. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. GREGG. Mr. President, I yield back the balance of our time and I 
ask unanimous consent that we proceed to the bill.
  The PRESIDING OFFICER. All time having been yielded back, under the 
previous order the committee substitute amendment, as amended, is 
agreed to.
  The committee amendment in the nature of a substitute, as amended, 
was agreed to.
  The bill was ordered to be engrossed for a third reading and was read 
the third time.
  The PRESIDING OFFICER. Under the previous order, the Committee on 
Health, Education, Labor and Pensions is discharged from further 
consideration of H.R. 1350 and the Senate will proceed to its 
consideration.
  The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 1350) to reauthorize the Individuals with 
     Disabilities Education Act, and for other purposes.

  The PRESIDING OFFICER. Under the previous order, all after the 
enacting clause is stricken and the text of S. 1248, as amended, is 
inserted in lieu thereof.
  The question is on the engrossment of the amendment and third reading 
of the bill.
  The amendment was ordered to be engrossed, and the bill to be read a 
third time.
  The bill was read a third time.
  The PRESIDING OFFICER. Under the previous order, the question is, 
Shall the bill, H.R. 1350, as amended, pass?
  The yeas and nays have been ordered.
  The clerk will call the roll.
  The assistant legislative clerk called the roll.
  Mr. McCONNELL. I announce that the Senator from Minnesota (Mr. 
Coleman) is necessarily absent.
  Mr. REID. I announce that the Senator from Massachusetts (Mr. Kerry) 
is necessarily absent.
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 95, nays 3, as follows:

                      [Rollcall Vote No. 94 Leg.]

                                YEAS--95

     Akaka
     Alexander
     Allard
     Allen
     Baucus
     Bayh
     Bennett
     Biden
     Bingaman
     Bond
     Boxer
     Breaux
     Brownback
     Bunning
     Burns
     Byrd
     Campbell
     Cantwell
     Carper
     Chafee
     Chambliss
     Clinton
     Cochran
     Collins
     Conrad
     Cornyn
     Corzine
     Craig
     Crapo
     Daschle
     Dayton
     DeWine
     Dodd
     Dole
     Domenici
     Dorgan
     Durbin
     Edwards
     Ensign
     Enzi
     Feingold
     Feinstein
     Fitzgerald
     Frist
     Graham (FL)
     Graham (SC)
     Grassley
     Gregg
     Hagel
     Harkin
     Hatch
     Hollings
     Hutchison
     Inhofe
     Inouye
     Johnson
     Kennedy
     Kohl
     Kyl
     Landrieu
     Lautenberg
     Levin
     Lieberman
     Lincoln
     Lott
     Lugar
     McCain
     McConnell
     Mikulski
     Miller
     Murkowski
     Murray
     Nelson (FL)
     Nelson (NE)
     Nickles
     Pryor
     Reed
     Reid
     Roberts
     Rockefeller
     Santorum
     Sarbanes
     Schumer
     Sessions
     Shelby
     Smith
     Snowe
     Specter
     Stevens
     Sununu
     Talent
     Thomas
     Voinovich
     Warner
     Wyden

                                NAYS--3

     Jeffords
     Leahy
     Stabenow

                             NOT VOTING--2

     Coleman
     Kerry
       
  The bill H.R. 1350, as amended, was passed, as follows:

                               H.R. 1350

       Resolved, That the bill from the House of Representatives 
     (H.R. 1350) entitled ``An Act to reauthorize the Individuals 
     with Disabilities Education Act, and for other purposes.'', 
     do pass with the following amendment:
       Strike out all after the enacting clause and insert:

     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--AMENDMENTS TO THE REHABILITATION ACT OF 1973

       TITLE III--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

   TITLE IV--COMMISSION ON UNIVERSAL DESIGN AND THE ACCESSIBILITY OF 
                 CURRICULUM AND INSTRUCTIONAL MATERIALS

                         TITLE V--MISCELLANEOUS

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

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

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

                      ``PART A--GENERAL PROVISIONS

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

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

                      ``Part A--General Provisions

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

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

``Subpart 2--Scientifically Based Research, Technical Assistance, Model 
        Demonstration Projects, and Dissemination of Information

``Sec. 660. Purpose.
``Sec. 661. Administrative provisions.
``Sec. 662. Research coordination to improve results for children with 
              disabilities.
``Sec. 663. Technical assistance, demonstration projects, dissemination 
              of information, and implementation of scientifically 
              based research.
``Sec. 664. Personnel development to improve services and results for 
              children with disabilities.
``Sec. 665. Studies and evaluations.

[[Page 9394]]

``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. Accessibility of instructional materials.
``Sec. 676. Authorization of appropriations.

   ``Subpart 4--Interim Alternative Educational Settings, Behavioral 
                Supports, and Whole School Interventions

``Sec. 681. Purpose.
``Sec. 682. Definition of eligible entity.
``Sec. 683. Program authorized.
``Sec. 684. Program evaluations.
``Sec. 685. Authorization of appropriations.
       ``(c) Findings.--Congress finds the following:
       ``(1) Disability is a natural part of the human experience 
     and in no way diminishes the right of individuals to 
     participate in or contribute to society. Improving 
     educational results for children with disabilities is an 
     essential element of our national policy of ensuring equality 
     of opportunity, full participation, independent living, and 
     economic self-sufficiency for individuals with disabilities.
       ``(2) Before the date of the enactment of the Education for 
     All Handicapped Children Act of 1975 (Public Law 94-142), the 
     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 Act 
     has been successful in ensuring children with disabilities 
     and the families of such children access to a free 
     appropriate public education and in improving educational 
     results for children with disabilities.
       ``(4) However, the implementation of this Act has been 
     impeded by low expectations, and an insufficient focus on 
     applying replicable research on proven methods of teaching 
     and learning for children with disabilities.
       ``(5) Over 25 years of research and experience has 
     demonstrated that the education of children with disabilities 
     can be made more effective by--
       ``(A) having high expectations for such children and 
     ensuring their access to the general education curriculum in 
     the regular classroom to the maximum extent possible in order 
     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 Act 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 they are sent;
       ``(D) providing appropriate special education and related 
     services, and aids and supports in the regular classroom, to 
     such children, whenever appropriate;
       ``(E) supporting high-quality, intensive 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 prereferral 
     interventions to reduce the need to label children as 
     disabled in order to address their learning and behavioral 
     needs;
       ``(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 more diverse society.
       ``(B) America's ethnic profile is rapidly changing. In the 
     year 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.
       ``(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) This poses a special challenge for special education 
     in the referral of, assessment of, and 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 
     Caucasian 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 minority individuals, 
     organizations, and Historically Black Colleges and 
     Universities to participate fully in awards for grants and 
     contracts, boards of organizations receiving funds under this 
     Act, and peer review panels, and in the training of 
     professionals in the area of special education is essential 
     if we are 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 employment, 
     further education, 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, coordinated, multidisciplinary, interagency system 
     of early intervention services for infants and toddlers with 
     disabilities and their families;
       ``(3) to ensure that educators and parents have the 
     necessary tools to improve educational results for children 
     with disabilities by supporting systemic-change activities; 
     coordinated research and personnel preparation; coordinated 
     technical assistance, dissemination, and support; and 
     technology development and media services; and
       ``(4) to assess, and ensure the effectiveness of, efforts 
     to educate children with disabilities.

     ``SEC. 602. DEFINITIONS.

       ``Except as otherwise provided, as used in this Act:
       ``(1) Assistive technology device.--The term `assistive 
     technology device' means any item, piece of equipment, or 
     product system, whether acquired commercially off the shelf, 
     modified, or customized, that is used to increase, maintain, 
     or improve functional capabilities of a child with a 
     disability. The term does not include a medical device that 
     is surgically implanted, or the repalcement 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--

[[Page 9395]]

       ``(A) the evaluation of the needs of such child, including 
     a functional evaluation of the child in the child's customary 
     environment;
       ``(B) purchasing, leasing, or otherwise providing for the 
     acquisition of assistive technology devices by such child;
       ``(C) selecting, designing, fitting, customizing, adapting, 
     applying, maintaining, repairing, or replacing of assistive 
     technology devices;
       ``(D) coordinating and using other therapies, 
     interventions, or services with assistive technology devices, 
     such as those associated with existing education and 
     rehabilitation plans and programs;
       ``(E) training or technical assistance for such child, or, 
     where appropriate, the family of such child; and
       ``(F) training or technical assistance for professionals 
     (including individuals providing education and rehabilitation 
     services), employers, or other individuals who provide 
     services to, employ, or are otherwise substantially involved 
     in the major life functions of such child.
       ``(3) Child with a disability.--
       ``(A) In general.--The term `child with a disability' means 
     a child--
       ``(i) with mental retardation, hearing impairments 
     (including deafness), speech or language impairments, visual 
     impairments (including blindness), serious emotional 
     disturbance (hereinafter referred to as `emotional 
     disturbance'), orthopedic impairments, autism, traumatic 
     brain injury, other health impairments, or specific learning 
     disabilities; and
       ``(ii) who, by reason thereof, needs special education and 
     related services.
       ``(B) Child aged 3 through 9.--The term `child with a 
     disability' for a child aged 3 through 9 (or any subset of 
     that age range, including ages 3 through 5), may, at the 
     discretion of the State and the local educational agency, 
     include a child--
       ``(i) experiencing developmental delays, as defined by the 
     State and as measured by appropriate diagnostic instruments 
     and procedures, in 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 subject.--The term `core academic 
     subject' has the meaning given the term in section 9101(11) 
     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 
     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 of this title;
       ``(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;
       ``(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.--The term `highly qualified' means 
     the following:
       ``(A) All special education teachers.--When used with 
     respect to any public elementary school or secondary school 
     special education teacher teaching in a State, means that the 
     teacher holds at least a bachelor's degree and that--
       ``(i) the teacher has obtained full State certification as 
     a special education teacher through a State-approved special 
     education teacher preparation program (including 
     certification obtained through alternative routes to 
     certification) or other comparably rigorous methods, or 
     passed the State teacher special education 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 certification or licensure 
     requirements waived on an emergency, temporary, or 
     provisional basis; and
       ``(iii) the teacher demonstrates knowledge of special 
     education and the teaching skills necessary to teach children 
     with disabilities.
       ``(B) New elementary school special education teachers.--
     When used with respect to a special education elementary 
     school teacher who is new to the profession, means that the 
     teacher demonstrated, by passing a rigorous State test, 
     subject knowledge and teaching skills in reading, writing, 
     mathematics, and other areas of the basic elementary school 
     curriculum (which may consist of passing a State-required 
     certification or licensing test or tests in reading, writing, 
     mathematics, and other areas of the basic elementary school 
     curriculum).
       ``(C) New middle school and secondary school special 
     education teachers.--When used with respect to a special 
     education middle school or secondary school teacher who is 
     new to the profession, means that the teacher has 
     demonstrated a high level of competency in each of the 
     academic subjects in which the teacher teaches by--
       ``(i) passing a rigorous State academic subject test in 
     each of the academic subjects in which the teacher teaches 
     (which may consist of a passing level of performance on a 
     State-required certification or licensing test or tests in 
     each of the academic subjects in which the teacher teaches); 
     or
       ``(ii) successful completion, in each of the academic 
     subjects in which the teacher teaches, of an academic major, 
     graduate degree, coursework equivalent to an undergraduate 
     academic major, or advanced certification or credentialing.
       ``(D) Veteran special education teachers.--When used with 
     respect to an elementary school, middle school, or secondary 
     school special education teacher who is not new to the 
     profession, means that the teacher has--
       ``(i) met the applicable standard in subparagraph (B) or 
     (C), which includes an option for a test; or
       ``(ii) has demonstrated competence in all the academic 
     subjects in which the teacher teaches based on a high 
     objective uniform State standard of evaluation for special 
     education teachers that--

       ``(I) is set by the State for both grade-appropriate 
     academic subject matter knowledge and special education 
     teaching skills;
       ``(II) is aligned with challenging State academic content 
     and student academic achievement standards and developed in 
     consultation with special education teachers, core content 
     specialists, teachers, principals, and school administrators;
       ``(III) provides objective, coherent information about the 
     teachers' attainment of knowledge of core content knowledge 
     in the academic subjects in which a teacher teaches;
       ``(IV) is applied uniformly to all special education 
     teachers who teach in the same academic subject and the same 
     grade level throughout the State;
       ``(V) takes into consideration, but is not based primarily 
     on, the time the teacher has been teaching in the academic 
     subject;
       ``(VI) is made available to the public on request; and
       ``(VII) may involve multiple objective measures of teacher 
     competency.

       ``(E) Teachers providing consultative services.--
       ``(i) In general.--Notwithstanding subparagraphs (B) 
     through (D), when used with respect to a special education 
     teacher who provides only consultative services to a highly 
     qualified regular education teacher (as the term highly 
     qualified is defined in section 9101(23) of the Elementary 
     and Secondary Education Act of 1965), means that the teacher 
     meets the requirements of subparagraph (A).
       ``(ii) Consultative services.--As used in clause (i), the 
     term `consultative services' means services that adjust the 
     learning environment, modify instructional methods, adapt 
     curricula, use positive behavior supports and interventions, 
     and select and implement appropriate accommodations to meet 
     the needs of individual children.
       ``(F) Exception.--Notwithstanding subparagraphs (B) through 
     (D), when used with respect to a special education teacher 
     who teaches more than 1 subject, primarily to middle school 
     and secondary school-aged children with significant cognitive 
     disabilities, means that the teacher has demonstrated subject 
     knowledge and teaching skills in reading, mathematics, and 
     other areas of the basic elementary school curriculum by--
       ``(i) passing a rigorous State test (which may consist of 
     passing a State-required certification or licensing test or 
     tests in those areas); or
       ``(ii) demonstrating competency in all the academic 
     subjects in which the teacher teaches,

[[Page 9396]]

     based on a high objective uniform State standard as described 
     in subparagraph (D)(ii).
       ``(11) Indian.--The term `Indian' means an individual who 
     is a member of an Indian tribe.
       ``(12) 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).
       ``(13) Individualized education program.--The term 
     `individualized education program' or `IEP' means a written 
     statement for each child with a disability that is developed, 
     reviewed, and revised in accordance with section 614(d).
       ``(14) Individualized family service plan.--The term 
     `individualized family service plan' has the meaning given 
     such term in section 636.
       ``(15) Infant or toddler with a disability.--The term 
     `infant or toddler with a disability' has the meaning given 
     such term in section 632.
       ``(16) Institution of higher education.--The term 
     `institution of higher education'--
       ``(A) has the meaning given such term in section 101 (a) 
     and (b) 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.
       ``(17) Limited english proficient.--The term `limited 
     English proficient' has the meaning given the term in section 
     9101(25) of the Elementary and Secondary Education Act of 
     1965.
       ``(18) Local educational agency.--
       ``(A) The term `local educational agency' means a public 
     board of education or other public authority legally 
     constituted within a State for either administrative control 
     or direction of, or to perform a service function for, public 
     elementary 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) The term includes--
       ``(i) an educational service agency, as defined in 
     paragraph (5); and
       ``(ii) any other public institution or agency having 
     administrative control and direction of a public elementary 
     school or secondary school.
       ``(C) 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 Act with the smallest student 
     population, except that the school shall not be subject to 
     the jurisdiction of any State educational agency other than 
     the Bureau of Indian Affairs.
       ``(19) Native language.--The term `native language', when 
     used with respect to an individual of limited English 
     proficiency, means the language normally used by the 
     individual, or in the case of a child, the language normally 
     used by the parents of the child.
       ``(20) 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.
       ``(21) Outlying area.--The term `outlying area' means the 
     United States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands.
       ``(22) Parent.--
       ``(A) In general.--The term `parent'--
       ``(i) means--

       ``(I) a natural or adoptive parent of a child;
       ``(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 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
       ``(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; and

       ``(ii) in the case of a homeless child who is not in the 
     physical custody of a parent or guardian, includes a related 
     or unrelated adult with whom the child is living or other 
     adult jointly designated by the child and the local 
     educational agency liaison for homeless children and youths 
     (designated pursuant to section 722(g)(1)(J)(ii) of the 
     McKinney-Vento Homeless Assistance Act), in addition to other 
     individuals permitted by law.
       ``(B) Foster parent.--Unless State law prohibits a foster 
     parent from acting as a parent, the term `parent' includes a 
     foster parent if--
       ``(i) the natural or adoptive parents' authority to make 
     educational decisions on the child's behalf has been 
     extinguished under State law; and
       ``(ii) the foster parent--

       ``(I) has an ongoing, long-term parental relationship with 
     the child;
       ``(II) is willing to make the educational decisions 
     required of parents under this Act; and
       ``(III) has no interest that would conflict with the 
     interests of the child.

       ``(23) Parent organization.--The term `parent organization' 
     has the meaning given such term in section 671(g).
       ``(24) Parent training and information center.--The term 
     `parent training and information center' means a center 
     assisted under section 671 or 672.
       ``(25) Related services.--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 health services, counseling services, including 
     rehabilitation counseling, orientation and mobility services, 
     travel training instruction, 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. The term does not include a 
     medical device that is surgically implanted, or the 
     replacement of such device.
       ``(26) Secondary school.--The term `secondary school' means 
     a nonprofit institutional day or residential school that 
     provides secondary education, as determined under State law, 
     except that it does not include any education beyond grade 
     12.
       ``(27) Secretary.--The term `Secretary' means the Secretary 
     of Education.
       ``(28) 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.
       ``(29) Specific learning disability.--
       ``(A) In general.--The term `specific learning disability' 
     means a disorder in 1 or more of the 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.
       ``(30) 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.
       ``(31) 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.
       ``(32) 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).
       ``(33) Transition services.--The term `transition services' 
     means a coordinated set of activities for a child with a 
     disability (as defined in paragraph (3)(A)) 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 training, 
     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.
       ``(34) Child with a disability in a military family.--The 
     term `child with a disability in a military family' means a 
     child with a disability who has a parent who is a member of 
     the Armed Forces, including a member of the National Guard or 
     Reserves.
       ``(35) 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.
       ``(36) Ward of the state.--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.

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

       ``(a) Establishment.--There shall be, within the Office of 
     Special Education and Rehabilitative Services in the 
     Department of Education, an Office of Special Education 
     Programs, which shall be the principal agency in such 
     Department for administering and carrying out this Act and 
     other programs and activities concerning the education of 
     children with disabilities.
       ``(b) Director.--The Office established under subsection 
     (a) shall be headed by a Director who

[[Page 9397]]

     shall be selected by the Secretary and shall report directly 
     to the Assistant Secretary for Special Education and 
     Rehabilitative Services.
       ``(c) Voluntary and Uncompensated Services.--
     Notwithstanding section 1342 of title 31, United States Code, 
     the Secretary is authorized to accept voluntary and 
     uncompensated services in furtherance of the purposes of this 
     Act.

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

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

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

       ``(a) In General.--If the Secretary determines that a 
     program authorized under this Act 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 Act makes positive efforts to employ 
     and advance in employment qualified individuals with 
     disabilities in programs assisted under this Act.

     ``SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

       ``(a) In General.--In carrying out the provisions of this 
     Act, the Secretary shall issue regulations under this Act 
     only to the extent that such regulations are necessary to 
     ensure that there is compliance with the specific 
     requirements of this Act.
       ``(b) Protections Provided to Children.--The Secretary may 
     not implement, or publish in final form, any regulation 
     prescribed pursuant to this Act that--
       ``(1) violates or contradicts any provision of this Act; 
     and
       ``(2) procedurally or substantively lessens the protections 
     provided to children with disabilities under this Act, 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 the Congress in 
     legislation.
       ``(c) Public Comment Period.--The Secretary shall provide a 
     public comment period of not more than 90 days on any 
     regulation proposed under part B or part C of this Act on 
     which an opportunity for public comment is otherwise required 
     by law.
       ``(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 Act; or
       ``(2) establish a rule that is required for compliance 
     with, and eligibility under, this Act without following the 
     requirements of section 553 of title 5, United States Code.
       ``(e) Explanation and Assurances.--Any written response by 
     the Secretary under subsection (d) regarding a policy, 
     question, or interpretation under part B of this Act 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 Act.--
       ``(1) In general.--The Secretary shall, on a quarterly 
     basis, publish in the Federal Register, and widely 
     disseminate to interested entities through various additional 
     forms of communication, a list of correspondence from the 
     Department of Education received by individuals during the 
     previous quarter that describes the interpretations of the 
     Department of Education of this Act or the regulations 
     implemented pursuant to this Act.
       ``(2) Additional information.--For each item of 
     correspondence published in a list under paragraph (1), the 
     Secretary shall--
       ``(A) identify the topic addressed by the correspondence 
     and shall include such other summary information as the 
     Secretary determines to be appropriate; and
       ``(B) ensure that all such correspondence is issued, where 
     applicable, in compliance with the requirements of section 
     553 of title 5, United States Code.

     ``SEC. 608. STATE ADMINISTRATION.

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

     ``SEC. 609. PAPERWORK REDUCTION.

       ``(a) Report to Congress.--The Comptroller General shall 
     conduct a review of Federal, State, and local requirements 
     relating to the education of children with disabilities to 
     determine which requirements result in excessive paperwork 
     completion burdens for teachers, related services providers, 
     and school administrators, and shall report to Congress not 
     later than 18 months after the date of enactment of the 
     Individuals with Disabilities Education Improvement Act of 
     2003 regarding such review along with strategic proposals for 
     reducing the paperwork burdens on teachers.
       ``(b) Paperwork Reduction Demonstration.--
       ``(1) Pilot program.--
       ``(A) Purpose.--The purpose of this subsection 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 Act, 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.
       ``(B) Authorization.--
       ``(i) In general.--In order to carry out the purpose of 
     this subsection, the Secretary is authorized to grant waivers 
     of statutory requirements of, or regulatory requirements 
     relating to, this part 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.
       ``(ii) Exception.--The Secretary shall not waive any 
     statutory requirements of, or regulatory requirements 
     relating to, applicable civil rights requirements.
       ``(iii) Rule of construction.--Nothing in this subsection 
     shall be construed to--

       ``(I) affect the right of a child with a disability to 
     receive a free appropriate public education under this part; 
     and
       ``(II) permit a State or local educational agency to waive 
     procedural safeguards under section 615.

       ``(C) 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--

       ``(I) a list of any statutory requirements of, or 
     regulatory requirements relating to, this part that the State 
     desires the Secretary to waive or change, 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.

       ``(D) Termination of waiver.--The Secretary shall terminate 
     a State's waiver under this subsection if the Secretary 
     determines that the State--
       ``(i) has failed to make satisfactory progress in meeting 
     the indicators described in section 616; or
       ``(ii) has failed to appropriately implement its waiver.
       ``(2) Report.--Beginning 2 years after the date of 
     enactment of the Individuals with Disabilities Education 
     Improvement Act of 2003, 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 
     paragraph (1), including any specific recommendations for 
     broader implementation of such waivers, in--
       ``(A) 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;
       ``(B) enhancing longer-term educational planning;
       ``(C) improving positive outcomes for children with 
     disabilities;
       ``(D) promoting collaboration between IEP Team members; and
       ``(E) ensuring satisfaction of family members.

[[Page 9398]]



     ``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 Act to the extent that such 
     grants continue to be available to States and local 
     educational agencies under this Act.

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

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

       ``(a) Grants to States.--
       ``(1) Purpose of grants.--The Secretary shall make grants 
     to States and the outlying areas, and provide funds to the 
     Secretary of the Interior, to assist them to provide special 
     education and related services to children with disabilities 
     in accordance with this part.
       ``(2) Maximum amount.--The maximum amount available for 
     awarding grants under this section for any fiscal year is--
       ``(A) the total number of children with disabilities in the 
     2002-2003 school year in the States who received special 
     education and related services and who were--
       ``(i) aged 3 through 5, if the State was eligible for a 
     grant under section 619; and
       ``(ii) aged 6 through 21; multiplied by
       ``(B) 40 percent of the average per-pupil expenditure in 
     public elementary schools and secondary schools in the United 
     States; adjusted by;
       ``(C) the rate of change in the sum of--
       ``(i) 85 percent of the change in the nationwide total of 
     the population described in subsection (d)(3)(A)(i)(II); and
       ``(ii) 15 percent of the change in the nationwide total of 
     the population described in subsection (d)(3)(A)(i)(III).
       ``(b) Outlying Areas and Freely Associated States.--
       ``(1) 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--
       ``(A) to provide assistance to the outlying areas in 
     accordance with their respective populations of individuals 
     aged 3 through 21; and
       ``(B) 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.
       ``(2) Special rule.--The provisions of Public Law 95-134, 
     permitting the consolidation of grants by the outlying areas, 
     shall not apply to funds provided to the outlying areas or 
     the freely associated States under this section.
       ``(3) Definition.--As used in this subsection, the term 
     `freely associated States' means the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.
       ``(c) Secretary of the Interior.--From the amount 
     appropriated for any fiscal year under subsection (i), the 
     Secretary shall reserve 1.226 percent to provide assistance 
     to the Secretary of the Interior in accordance with 
     subsection (i).
       ``(d) Allocations to States.--
       ``(1) In general.--After reserving funds for studies and 
     evaluations under section 665, 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--
       ``(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 not more than the maximum 
     amount the State was eligible to reserve for State 
     administration for fiscal year 2003 or $800,000 (adjusted by 
     the cumulative rate of inflation since fiscal year 2003 as 
     measured by the percentage increase, if any, in the Consumer 
     Price Index For All Urban Consumers, published by the Bureau 
     of Labor Statistics of the Department of Labor), whichever is 
     greater; and
       ``(ii) each outlying area may reserve not more than 5 
     percent of the amount the outlying area receives under 
     subsection (b) for any fiscal year or $35,000, whichever is 
     greater.
       ``(B) 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.
       ``(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 as of the date 
     of submission of the certification.
       ``(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 2004 and 2005, not more than 10 percent of the 
     amount that remains after subtracting the amount reserved 
     under paragraph (1) from the amount of the State's allocation 
     under subsection (d) for fiscal years 2004 and 2005, 
     respectively. For fiscal years 2006, 2007, 2008, and 2009, 
     the State may reserve the maximum amount the State was 
     eligible to reserve under the preceding sentence for fiscal 
     year 2005 (adjusted by the cumulative rate of inflation since 
     fiscal year 2005 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 under paragraph (1) is not greater 
     than $800,000 (as adjusted pursuant to paragraph (1)(A)(i)), 
     the State may reserve for the

[[Page 9399]]

     purpose of carrying out State-level activities for each of 
     the fiscal years 2004 and 2005, not more than 12 percent of 
     the amount that remains after subtracting the amount reserved 
     under paragraph (1) from the amount of the State's allocation 
     under subsection (d) for fiscal years 2004 and 2005, 
     respectively. For each of the fiscal years 2006, 2007, 2008, 
     and 2009, each such State may reserve for such purpose the 
     maximum amount the State was eligible to reserve under the 
     preceding sentence for fiscal year 2005 (adjusted by the 
     cumulative rate of inflation since fiscal year 2005 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).
       ``(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 and support personnel;
       ``(iii) To support the State protection and advocacy system 
     to advise and assist parents in the areas of--

       ``(I) dispute resolution and due process;
       ``(II) voluntary mediation; and
       ``(III) the opportunity to resolve complaints.

       ``(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 development and use of technology, 
     including universally designed technologies and assistive 
     technology devices, to maximize 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.
       ``(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) in addressing the needs of high-need 
     children and the unanticipated enrollment of other children 
     eligible for services under this part, each State shall 
     reserve for each of the fiscal years 2004 through 2009, 2 
     percent of the amount that remains after subtracting the 
     amount reserved under paragraph (1) from the amount of the 
     State's allocation under subsection (d) for each of the 
     fiscal years 2004 through 2009, respectively, to--
       ``(i) establish a high-cost fund; and
       ``(ii) make disbursements from the high-cost fund to local 
     educational agencies in accordance with this paragraph.
       ``(B) Required disbursements from the fund.--
       ``(i) In general.--Each State educational agency shall make 
     disbursements from the fund established under subparagraph 
     (A) to local educational agencies to pay the percentage, 
     described in subparagraph (D), of the costs of providing a 
     free appropriate public education to high-need children.
       ``(ii) Special rule.--If funds reserved for a fiscal year 
     under subparagraph (A) are insufficient to pay the percentage 
     described in subparagraph (D) to assist all the local 
     educational agencies having applications approved under 
     subparagraph (C), then the State educational agency shall 
     ratably reduce the amount paid to each local educational 
     agency that receives a disbursement for that fiscal year.
       ``(C) Application.--A local educational agency that desires 
     a disbursement under this subsection shall submit an 
     application to the State educational agency at such time, in 
     such manner, and containing such information as the State 
     educational agency may require. Such application shall 
     include assurances that funds provided under this paragraph 
     shall not be used to pay costs that otherwise would be 
     reimbursable as medical assistance for a child with a 
     disability under the State medicaid program under title XIX 
     of the Social Security Act.
       ``(D) Disbursements.--
       ``(i) In general.--A State educational agency shall make a 
     disbursement to a local educational agency that submits an 
     application under subparagraph (C) in an amount that is equal 
     to 75 percent of the costs that are in excess of 4 times the 
     average per-pupil expenditure in the United States or in the 
     State where the child resides (whichever average per-pupil 
     expenditure is lower) associated with educating each high 
     need child served by such local educational agency in a 
     fiscal year for whom such agency desires a disbursement.
       ``(ii) Appropriate costs.--The costs associated with 
     educating a high need child under clause (i) are only those 
     costs associated with providing direct special education and 
     related services to such child that are identified in such 
     child's appropriately developed 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) Permissible disbursements from remaining funds.--A 
     State educational agency may make disbursements to local 
     educational agencies from any funds that are remaining in the 
     high cost fund after making the required disbursements under 
     subparagraph (D) for a fiscal year for the following 
     purposes:
       ``(i) To pay the costs associated with serving children 
     with disabilities who moved into the areas served by such 
     local agencies after the budget for the following school year 
     had been finalized to assist the local educational agencies 
     in providing a free appropriate public education for such 
     children in such year.
       ``(ii) To compensate local educational agencies for 
     extraordinary costs, as determined by the State, of any 
     children eligible for services under this part due to--

       ``(I) unexpected enrollment or placement of children 
     eligible for services under this part; or
       ``(II) a significant underestimate of the average cost of 
     providing services to children eligible for services under 
     this part.

       ``(G) 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--
       ``(i) be allocated to local educational agencies pursuant 
     to subparagraphs (D) or (F) for the next fiscal year; or
       ``(ii) be allocated to local educational agencies in the 
     same manner as funds are allocated to local educational 
     agencies under subsection (f).
       ``(H) 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 indicate a limit on what is expected to 
     be spent on the education of a child with a disability.
       ``(I) Medicaid services not affected.--Disbursements 
     provided under this subsection shall not be used to pay costs 
     that otherwise would be reimbursable as medical assistance 
     for a child with a disability under the State medicaid 
     program under title XIX of the Social Security Act.
       ``(J) Definitions.--In this paragraph:
       ``(i) Average per-pupil expenditure.--The term `average 
     per-pupil expenditure' has the meaning given the term in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965.
       ``(ii) High-need child.--The term `high-need', when used 
     with respect to a child with a disability, means a child with 
     a disability for whom a free appropriate public education in 
     a fiscal year costs more than 4 times the average per-pupil 
     expenditure for such fiscal year.
       ``(K) Special rule for risk pool and high-need assistance 
     programs in effect as of january 1, 2003.--Notwithstanding 
     the provisions of subparagraphs (A) through (J), a State may 
     use funds reserved pursuant to this paragraph for 
     administering and implementing a placement-neutral cost-
     sharing and reimbursement program of high-need, low-
     incidence, emergency, 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 operative on January 1, 2003.
       ``(4) Inapplicability of certain prohibitions.--A State may 
     use funds the State reserves under paragraphs (1), (2), and 
     (3) 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 Act; 
     and
       ``(B) will be allocated among the activities described in 
     this section to meet State priorities based on input from 
     local educational agencies.
       ``(6) 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

[[Page 9400]]

     readiness and incorporates pre-literacy, 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.
       ``(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.--
       ``(A) Procedure.--For each fiscal year for which funds are 
     allocated to States under subsection (d), each State shall 
     allocate funds under paragraph (1) as follows:
       ``(i) 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.
       ``(ii) Allocation of remaining funds.--After making 
     allocations under clause (i), 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.--For the purpose of this section--
       ``(1) 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 local educational agencies; divided by
       ``(B) the aggregate number of children in average daily 
     attendance to whom those local educational agencies provided 
     free public education during that preceding year; and
       ``(2) the term `State' means each of the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.
       ``(h) Use of Amounts by Secretary of the Interior.--
       ``(1) Provision of amounts for assistance.--
       ``(A) In general.--The Secretary of Education shall provide 
     amounts to the Secretary of the Interior to meet the need for 
     assistance for the education of children with disabilities on 
     reservations aged 5 through 21 who are 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 (c) for that fiscal 
     year.
       ``(B) Calculation of number of children.--In the case of 
     Indian students aged 3 through 5 who are enrolled in programs 
     affiliated with the Bureau of Indian Affairs (hereafter in 
     this subsection referred to as `BIA') schools, and that are 
     required by the States in which such schools are located to 
     attain or maintain State accreditation, and which schools had 
     such accreditation prior to the date of enactment of the 
     Individuals with Disabilities Education Act Amendments of 
     1991, the school shall be allowed to count those children for 
     the purpose of distribution of the funds provided under this 
     paragraph to the Secretary of the Interior. The Secretary of 
     the Interior shall be responsible for meeting all of the 
     requirements of this part for these children, in accordance 
     with paragraph (2).
       ``(C) Additional requirement.--With respect to all other 
     children aged 3 through 21 on reservations, the State 
     educational agency shall be responsible for ensuring that all 
     of the requirements of this part are implemented.
       ``(2) Submission of information.--The Secretary of 
     Education may provide the Secretary of the Interior amounts 
     under paragraph (1) for a fiscal year only if the Secretary 
     of the Interior submits to the Secretary of Education 
     information that--
       ``(A) demonstrates that the Department of the Interior 
     meets the appropriate requirements, as determined by the 
     Secretary of Education, of sections 612 (including monitoring 
     and evaluation activities) and 613;
       ``(B) includes a description of how the Secretary of the 
     Interior will coordinate the provision of services under this 
     part with local educational agencies, tribes and tribal 
     organizations, and other private and Federal service 
     providers;
       ``(C) includes an assurance that there are public hearings, 
     adequate notice of such hearings, and an opportunity for 
     comment afforded to members of tribes, tribal governing 
     bodies, and affected local school boards before the adoption 
     of the policies, programs, and procedures described in 
     subparagraph (A);
       ``(D) includes an assurance that the Secretary of the 
     Interior will provide such information as the Secretary of 
     Education may require to comply with section 618;
       ``(E) includes an assurance that the Secretary of the 
     Interior and the Secretary of Health and Human Services have 
     entered into a memorandum of agreement, to be provided to the 
     Secretary of Education, for the coordination of services, 
     resources, and personnel between their respective Federal, 
     State, and local offices and with State and local educational 
     agencies and other entities to facilitate the provision of 
     services to Indian children with disabilities residing on or 
     near reservations (such agreement shall provide for the 
     apportionment of responsibilities and costs including, but 
     not limited to, child find, evaluation, diagnosis, 
     remediation or therapeutic measures, and (where appropriate) 
     equipment and medical or personal supplies as needed for a 
     child to remain in school or a program); and
       ``(F) includes an assurance that the Department of the 
     Interior will cooperate with the Department of Education in 
     its exercise of monitoring and oversight of this application, 
     and any agreements entered into between the Secretary of the 
     Interior and other entities under this part, and will fulfill 
     its duties under this part.
       ``(3) Applicability.--Section 616(a) shall apply to the 
     information described in this paragraph.
       ``(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 the above to provide for the coordination of 
     assistance for special education and related services for 
     children with disabilities aged 3 through 5 on reservations 
     served by elementary 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 (c).
       ``(B) Distribution of funds.--The Secretary of the Interior 
     shall distribute the total amount of the payment under 
     subparagraph (A) by allocating to each tribe or tribal 
     organization an amount based on the number of children with 
     disabilities ages 3 through 5 residing on reservations as 
     reported annually, divided by the total of those children 
     served by all tribes or tribal organizations.
       ``(C) Submission of information.--To receive a payment 
     under this paragraph, the tribe or tribal organization shall 
     submit such figures to the Secretary of the Interior as 
     required to determine the amounts to be allocated under 
     subparagraph (B). This information shall be compiled and 
     submitted to the Secretary of Education.
       ``(D) Use of funds.--The funds received by a tribe or 
     tribal organization shall be used to assist in child find, 
     screening, and other procedures for the early identification 
     of children aged 3 through 5, parent training, and the 
     provision of direct services. These activities may be carried 
     out directly or through contracts or cooperative agreements 
     with the BIA, local educational agencies, and other public or 
     private nonprofit organizations. The tribe or tribal 
     organization is encouraged to involve Indian parents in the 
     development and implementation of these activities. The above 
     entities shall, as appropriate, make referrals to local, 
     State, or Federal entities for the provision of services or 
     further diagnosis.
       ``(E) Biennial report.--To be eligible to receive a grant 
     pursuant to subparagraph (A), the tribe or tribal 
     organization shall provide to the Secretary of the Interior a 
     biennial report of activities undertaken under this 
     paragraph, including the number of contracts and cooperative 
     agreements entered into, the number of children contacted and 
     receiving services for each year, and the estimated number of 
     children needing services during the 2 years following the 
     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

[[Page 9401]]

     implement a plan for the coordination of services for all 
     Indian children with disabilities residing on reservations 
     covered under this Act. Such plan shall provide for the 
     coordination of services benefiting these children from 
     whatever source, including tribes, the Indian Health Service, 
     other BIA divisions, and other Federal agencies. In 
     developing the plan, the Secretary of the Interior shall 
     consult with all interested and involved parties. 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 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)(20), the Secretary of the 
     Interior shall establish, under the BIA, an advisory board 
     composed of individuals involved in or concerned with the 
     education and provision of services to Indian infants, 
     toddlers, children, and youth with disabilities, including 
     Indians with disabilities, Indian parents or guardians of 
     such children, teachers, service providers, State and local 
     educational officials, representatives of tribes or tribal 
     organizations, representatives from State Interagency 
     Coordinating Councils under section 641 in States having 
     reservations, and other members representing the various 
     divisions and entities of the BIA. The chairperson shall be 
     selected by the Secretary of the Interior. The advisory board 
     shall--
       ``(A) assist in the coordination of services within the BIA 
     and with other local, State, and Federal agencies in the 
     provision of education for infants, toddlers, and children 
     with disabilities;
       ``(B) advise and assist the Secretary of the Interior in 
     the performance of the Secretary's responsibilities described 
     in this subsection;
       ``(C) develop and recommend policies concerning effective 
     inter- and intra-agency collaboration, including 
     modifications to regulations, and the elimination of barriers 
     to inter- and intra-agency programs and activities;
       ``(D) provide assistance and disseminate information on 
     best practices, effective program coordination strategies, 
     and recommendations for improved educational programming for 
     Indian infants, toddlers, and children with disabilities; and
       ``(E) provide assistance in the preparation of information 
     required under paragraph (2)(D).
       ``(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(3); 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 Act requires that 
     children be classified by their disability so long as each 
     child who has a disability listed in section 602 and who, by 
     reason of that disability, needs special education and 
     related services is regarded as a child with a disability 
     under this part.
       ``(4) Individualized education program.--An individualized 
     education program, or an individualized family service plan 
     that meets the requirements of section 636(d), is developed, 
     reviewed, and revised for each child with a disability in 
     accordance with section 614(d).
       ``(5) Least restrictive environment.--
       ``(A) In general.--To the maximum extent appropriate, 
     children with disabilities, including children in public or 
     private institutions or other care facilities, are educated 
     with children who are not disabled, and special classes, 
     separate schooling, or other removal of children with 
     disabilities from the regular educational environment occurs 
     only when the nature or severity of the disability of a child 
     is such that education in regular classes with the use of 
     supplementary aids and services cannot be achieved 
     satisfactorily.
       ``(B) Additional requirement.--
       ``(i) In general.--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 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) and (b) of section 614.
       ``(8) Confidentiality.--Agencies in the State comply with 
     section 617(c) (relating to the confidentiality of records 
     and information).
       ``(9) Transition from part c to preschool programs.--
     Children participating in early-intervention programs 
     assisted under part C, and who will participate in preschool 
     programs assisted under this part, experience a smooth and 
     effective transition to those preschool programs in a manner 
     consistent with section 637(a)(8). By the third birthday of 
     such a child, an individualized education program or, if 
     consistent with sections 614(d)(2)(B) and 636(d), an 
     individualized family service plan, has been developed and is 
     being implemented for the child. The local educational agency 
     will participate in transition planning conferences arranged 
     by the designated lead agency under section 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 
     children) by the local educational agency shall be equal to a 
     proportionate amount of Federal funds made available under 
     this part.
       ``(II) Such services may be provided to children with 
     disabilities on the premises of private, including religious, 
     schools, to the extent consistent with law.
       ``(III) 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,

[[Page 9402]]

     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 schools 
     and secondary schools. Such child find process shall be 
     conducted in a comparable time period as for other students 
     attending public schools in the local educational agency.
       ``(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, may not be considered in 
     determining whether a local education agency has met its 
     obligations under clause (i).

       ``(iii) Consultation.--To ensure timely and meaningful 
     consultation, a local educational agency, or where 
     appropriate, a State educational agency, shall consult with 
     representatives of children with disabilities who are 
     parentally placed in private schools, during the design and 
     development of special education and related services for 
     these children, including consultation 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 share of 
     Federal funds available to serve parentally placed private 
     school children with disabilities under this paragraph, 
     including the determination of how the proportionate share of 
     those funds were calculated;
       ``(III) the consultation process among the school district, 
     private school officials, and parents of parentally placed 
     private school children with disabilities, including how such 
     process will operate throughout the school year to ensure 
     that parentally placed children with disabilities identified 
     through the child find process can meaningfully participate 
     in special education and related services;
       ``(IV) how, where, and by whom special education and 
     related services will be provided for parentally placed 
     private school children, including a discussion of alternate 
     service delivery mechanisms, how such services will be 
     apportioned if funds are insufficient to serve all children, 
     and how and when these decisions will be made; and
       ``(V) how, if the local educational agency disagrees with 
     the views of the private school officials on the provision of 
     services 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 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 officials 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) Direct services.--To the extent practicable, the 
     local educational agency shall provide direct services to 
     children with disabilities parentally placed in private 
     schools.
       ``(II) Directly or through contracts.--A public agency may 
     provide special education and related services directly or 
     through contracts with public and private agencies, 
     organizations, and institutions.
       ``(III) 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 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.--
       ``(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 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)(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; or
       ``(bb) the parents had not received notice, pursuant to 
     section 615, of the notice requirement in clause (iii)(I); 
     and

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

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

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

       ``(B) Limitation.--Subparagraph (A) shall not limit the 
     responsibility of agencies in the State other than the State 
     educational agency to provide, or pay for some or all of the 
     costs of, a free appropriate public education for any child 
     with a disability in the State.
       ``(C) Exception.--Notwithstanding subparagraphs (A) and 
     (B), the Governor (or another individual pursuant to State 
     law), consistent with State law, may assign to any public 
     agency in the State the responsibility of ensuring that the 
     requirements of this part are met with respect to children 
     with disabilities who are convicted as adults under State law 
     and incarcerated in adult prisons.

[[Page 9403]]

       ``(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(25) relating to related services, 602(32) relating to 
     supplementary aids and services, and 602(33) 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 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 standards.--
       ``(A) In general.--The State educational agency has 
     established and maintains standards to ensure that personnel 
     necessary to carry out this part are appropriately and 
     adequately prepared and trained, including that those 
     personnel have the content knowledge and skills to serve 
     children with disabilities.
       ``(B) Related services personnel and paraprofessionals.--
     The standards under subparagraph (A) include standards 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) Standards for special education teachers.--
       ``(i) In general.--The standards described in subparagraph 
     (A) shall ensure that each person employed as a special 
     education teacher in the State who teaches in an elementary, 
     middle, or secondary school is highly qualified not later 
     than the end of the 2006-2007 school year.
       ``(ii) Compliance.--Notwithstanding paragraphs (2) and (3) 
     of section 1119(a) of the Elementary and Secondary Education 
     Act of 1965, for purposes of determining compliance with such 
     paragraphs--

       ``(I) the Secretary, the State educational agency, and 
     local educational agencies shall apply the definition of 
     highly qualified in section 602(10) to special education 
     teachers; and
       ``(II) the State shall ensure that all special education 
     teachers teaching in core academic subjects within the State 
     are highly qualified (as defined in section 602(10)) not 
     later than the end of the 2006-2007 school year.

       ``(iii) Parents' right to know.--In carrying out section 
     1111(h)(6) of the Elementary and Secondary Education Act of 
     1965 with respect to special education teachers, a local 
     educational agency shall--

       ``(I) include in a response to a request under such section 
     any additional information needed to demonstrate that the 
     teacher meets the applicable requirements of section 602(10) 
     relating to certification or licensure as a special education 
     teacher; and
       ``(II) apply the definition of highly qualified in section 
     602(10) in carrying out section 1111(h)(6)(B)(ii).

       ``(D) 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.
       ``(E) Rule of construction.--Notwithstanding any other 
     individual right of action that a parent or student may 
     maintain under this part, nothing in this subsection 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 Act, as stated in 
     section 601(d);
       ``(ii) are the same as the State's definition of adequate 
     yearly progress, including the State's objectives for 
     progress by children with disabilities, under section 
     1111(b)(2)(C) of the Elementary and Secondary Education Act 
     of 1965;
       ``(iii) address graduation rates and drop out 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).
       ``(16) Participation in assessments.--
       ``(A) In general.-- All children with disabilities are 
     included in all general State and districtwide assessment 
     programs and accountability systems, including assessments 
     and accountability systems described under section 1111 of 
     the Elementary and Secondary Education Act of 1965, with 
     appropriate accommodations, 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 (B) 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 and academic achievement standards; and
       ``(II) if the State has adopted alternate academic 
     achievement standards permitted under section 1111(b)(1) of 
     the Elementary and Secondary Education Act of 1965, measure 
     the

[[Page 9404]]

     achievement of children with disabilities against those 
     standards.

       ``(iii) Conduct of alternative 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) State advisory panel.--
       ``(A) In general.--The State has established and maintains 
     an advisory panel for the purpose of providing policy 
     guidance with respect to special education and related 
     services for children with disabilities in the State.
       ``(B) Membership.--Such advisory panel shall consist of 
     members appointed by the Governor, or any other official 
     authorized under State law to make such appointments, that is 
     representative of the State population and that is composed 
     of individuals involved in, or concerned with, the education 
     of children with disabilities, including--
       ``(i) parents of children with disabilities ages birth 
     through 26, including not less than 1 foster parent of a 
     child with disabilities who is a ward of the State, not less 
     than 1 grandparent or other relative who is acting in the 
     place of a natural or adoptive parent, and not less than 1 
     representative of children with disabilities in military 
     families;
       ``(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;
       ``(vi) administrators of programs for children with 
     disabilities;
       ``(vii) representatives of other State agencies involved in 
     the financing or delivery of related services to children 
     with disabilities;
       ``(viii) representatives of private schools and public 
     charter schools;
       ``(ix) at least 1 representative of a vocational, 
     community, or business organization concerned with the 
     provision of transition services to children with 
     disabilities; and
       ``(x) representatives from the State juvenile and adult 
     corrections agencies.
       ``(xi) representatives from the State child welfare agency; 
     and
       ``(xii) a representative of wards of the State who are in 
     foster care, such as an attorney for children in foster care, 
     a guardian ad litem, a court appointed special advocate, or a 
     judge.
       ``(C) Special rule.--A majority of the members of the panel 
     shall be individuals with disabilities ages birth through 26 
     or parents of such individuals.
       ``(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.
       ``(21) Suspension and expulsion rates.--
       ``(A) In general.--The State educational agency examines 
     data to determine if significant discrepancies are occurring 
     in the rate of long-term suspensions and expulsions of 
     children with disabilities--
       ``(i) among local educational agencies in the State; or
       ``(ii) compared to such rates for nondisabled children 
     within such agencies.
       ``(B) Review and revision of policies.--If such 
     discrepancies are occurring, the State educational agency 
     reviews and, if appropriate, revises (or requires the 
     affected State or local educational agency to revise) its 
     policies, procedures, and practices relating to the 
     development and implementation of IEPs, the use of behavioral 
     interventions, and procedural safeguards, to ensure that such 
     policies, procedures, and practices comply with this Act.
       ``(22) Access to instructional materials.--
       ``(A) In general.--The State adopts the national 
     Instructional Materials Accessibility Standard described in 
     section 675(a) for the purposes of providing instructional 
     materials to blind persons or other persons with print 
     disabilities in a timely manner after the publication of the 
     standard in the Federal Register.
       ``(B) Preparation and delivery of files.--Not later than 2 
     years after the date of enactment of the Individuals with 
     Disabilities Education Improvement Act of 2004, a State 
     educational 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 675(b), 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 675(a)(4)(C).
       ``(C) Assistive technology.--In carrying out subparagraph 
     (B), the State educational agency, to the maximum extent 
     possible, shall work collaboratively with the State agency 
     responsible for assistive technology programs.
       ``(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).

[[Page 9405]]

       ``(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 Act 
     are amended (or the regulations developed to carry out this 
     Act are amended), there is a new interpretation of this Act 
     by a Federal court or a State's highest court, or there is an 
     official finding of noncompliance with Federal law or 
     regulations, 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 which shall be subject to 
     the requirements of such subsection.
       ``(2) Payments.--
       ``(A) Determination of amounts.--If the Secretary arranges 
     for services pursuant to this subsection, the Secretary, 
     after consultation with the appropriate public and private 
     school officials, shall pay to the provider of such services 
     for a fiscal year an amount per child that does not exceed 
     the amount determined by dividing--
       ``(i) the total amount received by the State under this 
     part for such fiscal year; by
       ``(ii) the number of children with disabilities served in 
     the prior year, as reported to the Secretary by the State 
     under section 618.
       ``(B) Withholding of certain amounts.--Pending final 
     resolution of any investigation or complaint that 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 at 
     least 45 days after receiving written notice thereof, to 
     submit written objections and to appear before the Secretary 
     or the Secretary's designee to show cause why such action 
     should not be taken.
       ``(B) Review of action.--If a State educational agency is 
     dissatisfied with the Secretary's final action after a 
     proceeding under subparagraph (A), such agency may, not later 
     than 60 days after notice of such action, file with the 
     United States court of appeals for the circuit in which such 
     State is located a petition for review of that action. A copy 
     of the petition shall be forthwith transmitted by the clerk 
     of the court to the Secretary. The Secretary thereupon shall 
     file in the court the record of the proceedings on which the 
     Secretary based the Secretary's action, as provided in 
     section 2112 of title 28, United States Code.
       ``(C) Review of findings of fact.--The findings of fact by 
     the Secretary, if supported by substantial evidence, shall be 
     conclusive, but the court, for good cause shown, may remand 
     the case to the Secretary to take further evidence, and the 
     Secretary may thereupon make new or modified findings of fact 
     and may modify the Secretary's previous action, and shall 
     file in the court the record of the further proceedings. Such 
     new or modified findings of fact shall likewise be conclusive 
     if supported by substantial evidence.
       ``(D) Jurisdiction of court of appeals; review by united 
     states supreme court.--Upon the filing of a petition under 
     subparagraph (B), the United States court of appeals shall 
     have jurisdiction to affirm the action of the Secretary or to 
     set it aside, in whole or in part. The judgment of the court 
     shall be subject to review by the Supreme Court of the United 
     States upon certiorari or certification as provided in 
     section 1254 of title 28, United States Code.

     ``SEC. 613. LOCAL EDUCATIONAL AGENCY ELIGIBILITY.

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

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

       ``(iv) the termination of costly expenditures for long-term 
     purchases, such as the acquisition of equipment or the 
     construction of school facilities.
       ``(C) Treatment of federal funds in certain fiscal years.--
       ``(i) 8 percent rule.--Notwithstanding clauses (ii) and 
     (iii) of subparagraph (A), a local educational agency may 
     treat as local funds, for the purposes of such clauses, not 
     more than 8 percent of the amount of funds the local 
     educational agency receives under this part.
       ``(ii) 40 percent rule.--Notwithstanding clauses (ii) and 
     (iii) of subparagraph (A), for any fiscal year for which 
     States are allocated the maximum amount of grants pursuant to 
     section 611(a)(2), a local educational agency may treat as 
     local funds, for the purposes of such clauses, not more than 
     40 percent of the amount of funds the local educational 
     agency receives under this part, subject to clause (iv).
       ``(iii) Early intervening services.--

       ``(I) 8 percent rule.--If a local educational agency 
     exercises authority pursuant to clause (i), the 8 percent 
     funds shall be counted toward the percentage and amount of 
     funds that may be used to provide early intervening 
     educational services pursuant to subsection (f).
       ``(II) 40 percent rule.--If a local educational agency 
     exercises authority pursuant to clause (ii), the local 
     educational agency shall use an amount of the 40 percent 
     funds from clause (ii) that represents 15 percent of the 
     total amount of funds the local educational agency receives 
     under this part, to provide early intervening educational 
     services pursuant to subsection (f).

       ``(iv) Special rule.--Funds treated as local funds pursuant 
     to clause (i) or (ii) may be considered non-Federal or local 
     funds for the purposes of--

       ``(I) clauses (ii) and (iii) of subparagraph (A); and
       ``(II) the provision of the local share of costs for title 
     XIX of the Social Security Act.

       ``(v) Report.--For each fiscal year in which a local 
     educational agency exercises its authority pursuant to this 
     subparagraph and treats Federal funds as local funds, the 
     local educational agency shall report to the State 
     educational agency the amount of funds so treated and the 
     activities that were funded with such funds.
       ``(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

[[Page 9406]]

     Elementary and Secondary Education Act of 1965, except that 
     the amount so used in any such program shall not exceed--
       ``(i) the number of children with disabilities 
     participating in the schoolwide program; multiplied by
       ``(ii)(I) the amount received by the local educational 
     agency under this part for that fiscal year; divided by
       ``(II) the number of children with disabilities in the 
     jurisdiction of that agency.
       ``(3) Personnel development.--The local educational agency 
     shall ensure that all personnel necessary to carry out this 
     part are appropriately and adequately prepared, consistent 
     with the requirements of section 612(a)(14) of this Act 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).
       ``(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 on the same basis, including proportional 
     distribution based on relative enrollment of children with 
     disabilities, and at the same time, as the local educational 
     agency distributes State, local, or a combination of State 
     and local, funds to those charter schools under the State's 
     charter school law.
       ``(6) Purchase of instructional materials.--Not later than 
     2 years after the date of enactment of the Individuals with 
     Disabilities Education Improvement Act of 2004, a local 
     educational 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).
       ``(7) Information for state educational agency.--The local 
     educational agency shall provide the State educational agency 
     with information necessary to enable the State educational 
     agency to carry out its duties under this part, including, 
     with respect to paragraphs (15) and (16) of section 612(a), 
     information relating to the performance of children with 
     disabilities participating in programs carried out under this 
     part.
       ``(8) Public information.--The local educational agency 
     shall make available to parents of children with disabilities 
     and to the general public all documents relating to the 
     eligibility of such agency under this part.
       ``(9) Records regarding migratory children with 
     disabilities.--The local educational agency shall cooperate 
     in the Secretary's efforts under section 1308 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6398) to ensure the linkage of records pertaining to 
     migratory children with a disability for the purpose of 
     electronically exchanging, among the States, health and 
     educational information regarding such children.
       ``(b) Exception for Prior Local Plans.--
       ``(1) In general.--If a local educational agency or State 
     agency has on file with the State educational agency policies 
     and procedures that demonstrate that such local educational 
     agency, or such State agency, as the case may be, meets any 
     requirement of subsection (a), including any policies and 
     procedures filed under this part as in effect before the 
     effective date of the 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 Act are amended (or the regulations 
     developed to carry out this Act are amended), there is a new 
     interpretation of this Act by Federal or State courts, or 
     there is an official finding of noncompliance with Federal or 
     State law or regulations, 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.--
       ``(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 treated as 
     local funds 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 do not meet the 
     definition of a child with a disability under section 602(3) 
     but who need additional academic and behavioral support to 
     succeed in a general education environment.

[[Page 9407]]

       ``(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 and behavioral interventions, 
     including scientifically based literacy instruction, and, 
     where appropriate, instruction on the use of adaptive and 
     instructional software;
       ``(B) providing educational and behavioral evaluations, 
     services, and supports, including scientifically based 
     literacy instruction; and
       ``(C) developing and implementing interagency financing 
     structures for the provision of such services and supports.
       ``(3) Construction.--Nothing in this subsection shall be 
     construed to either limit or create a right to a free 
     appropriate public education under this part.
       ``(4) Reporting.--Each local educational agency that 
     develops and maintains coordinated, early intervening 
     services with funds made available for this subsection, shall 
     annually report to the State educational agency on--
       ``(A) the number of children served under this subsection; 
     and
       ``(B) the number of children served under this subsection 
     who are subsequently referred to special education.
       ``(5) Coordination with certain projects under 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.
       ``(6) Report to congress.--Not later than 1 year after the 
     date of enactment of the Individuals with Disabilities 
     Education Improvement Act of 2004, the Comptroller General 
     shall conduct a study on the types of services provided to 
     children served under this subsection, and shall submit a 
     report to Congress regarding the study.
       ``(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 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 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) Treatment of federal funds in certain fiscal years.--
     If a State educational agency pays or reimburses local 
     educational agencies within the State for not less than 80 
     percent of the non-Federal share of the costs of special 
     education and related services, or the State is the sole 
     provider of free appropriate public education or direct 
     services pursuant to section 612(b), then the State 
     educational agency, notwithstanding sections 612(a) (17) and 
     (18) and 612(b), may treat funds allocated pursuant to 
     section 611 as general funds available to support the 
     educational purposes described in paragraph (2) (A) and (B).
       ``(2) Conditions.--A State educational agency may use funds 
     in accordance with paragraph (1) subject to the following 
     conditions:
       ``(A) 8 percent rule.--A State educational agency may treat 
     not more than 8 percent of the funds the State educational 
     agency receives under this part as general funds to support 
     any educational purpose described in the Elementary and 
     Secondary Education Act of 1965, needs-based student or 
     teacher higher education programs, or the non-Federal share 
     of costs of title XIX of the Social Security Act.
       ``(B) 40 percent rule.--For any fiscal year for which 
     States are allocated the maximum amount of grants pursuant to 
     section 611(a)(2), a State educational agency may treat not 
     more than 40 percent of the amount of funds the State 
     educational agency receives under this part as general funds 
     to support any educational purpose described in the 
     Elementary and Secondary Education Act of 1965, needs-based 
     student or teacher higher education programs, or the non-
     Federal share of costs of title XIX of the Social Security 
     Act, subject to subparagraph (C).
       ``(C) Requirement.--A State educational agency may exercise 
     its authority pursuant to subparagraph (B) only if the State 
     educational agency uses an amount of the 40 percent funds 
     from subparagraph (B) that represents 15 percent of the total 
     amount of funds the State educational agency receives under 
     this part, to provide, or to pay or reimburse local 
     educational agencies for providing, early intervening 
     services pursuant to subsection (f).
       ``(2) Prohibition.--Notwithstanding subsection (a), 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, then the Secretary shall prohibit the State 
     educational agency from treating funds allocated under this 
     part as general funds pursuant to paragraph (1).
       ``(3) Report.--For each fiscal year for which a State 
     educational agency exercises its authority pursuant to 
     paragraph (1) and treats Federal funds as general funds, the 
     State educational agency shall report to the Secretary the 
     amount of funds so treated and the activities that were 
     funded with such funds.

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

       ``(a) Evaluations and Reevaluations.--
       ``(1) Initial evaluations.--
       ``(A) In general.--A State educational agency, other State 
     agency, or local educational agency shall conduct a full and 
     individual initial evaluation in accordance with this 
     paragraph and subsection (b), before the initial provision of 
     special education and related services to a child with a 
     disability under this part.
       ``(B) 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.--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 has established a timeframe within which the evaluation 
     must be conducted, within such timeframe; and
       ``(ii) to determine the educational needs of such child.
       ``(D) Parental consent.--
       ``(i) In general.--The agency proposing to conduct an 
     initial evaluation to determine if the child qualifies as a 
     child with a disability as defined in section 602(3) (A) or 
     (B) shall obtain an informed consent from the parent of such 
     child before the evaluation is conducted. Parental consent 
     for evaluation shall not be construed as consent for 
     placement for receipt of special education and related 
     services.
       ``(ii) Refusal.--If the parents of such child refuse 
     consent for the evaluation, the agency may continue to pursue 
     an evaluation by utilizing the mediation and due process 
     procedures under section 615, except to the extent 
     inconsistent with State law relating to parental consent.
       ``(iii) Refusal or failure to consent.--If the parent of a 
     child does not provide informed consent to the receipt of 
     special education and related services, or the parent fails 
     to respond to a request to provide the consent, 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 informed consent.
       ``(iv) Exception for wards of the state.--The agency shall 
     not be required to obtain an informed consent from the 
     parents of a child for an initial evaluation to determine 
     whether the child is a child with a disability if such child 
     is a ward of the State and is not residing with the child's 
     parent and consent has been given by an

[[Page 9408]]

     individual who has appropriate knowledge of the child's 
     educational needs, including the judge appointed to the 
     child's case or the child's attorney, guardian ad litem, or 
     court appointed special advocate.
       ``(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 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 curriculum, or 
     for preschool children, to participate in appropriate 
     activities;
       ``(B) not use any single procedure, 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) tests and other evaluation materials used to assess a 
     child under this section--
       ``(i) are selected and administered so as not to be 
     discriminatory on a racial or cultural basis;
       ``(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 tests;
       ``(B) the child is assessed in all areas of suspected 
     disability; and
       ``(C) assessment tools and strategies that provide relevant 
     information that directly assists persons in determining the 
     educational needs of the child are provided.
       ``(D) assessments of children with disabilities, including 
     homeless children with disabilities, children with 
     disabilities who are wards of the State, and children with 
     disabilities in military families, who transfer from 1 school 
     district to another school district in the same academic 
     year, are--
       ``(i) coordinated with such children's prior and subsequent 
     schools as necessary to ensure timely completion of full 
     evaluations; and
       ``(ii) completed within time limits--

       ``(I) established for all students by Federal law or State 
     plans; and
       ``(II) that computes the commencement of time from the date 
     on which such children are first referred for assessments in 
     any local educational agency.

       ``(4) Determination of eligibility.--Upon completion of 
     administration of tests and other evaluation materials--
       ``(A) the determination of whether the child is a child 
     with a disability as defined in section 602(3) shall be made 
     by a team of qualified professionals and the parent of the 
     child in accordance with paragraph (5); and
       ``(B) a copy of the evaluation report and the documentation 
     of determination of eligibility 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 scientifically based instruction in reading;
       ``(B) lack of instruction in mathematics; 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(29), 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).
       ``(c) Additional Requirements for Evaluation and 
     Reevaluations.--
       ``(1) Review of existing evaluation data.--As part of an 
     initial evaluation (if appropriate) and as part of any 
     reevaluation under this section, the IEP Team described in 
     subsection (d)(1)(B) and other qualified professionals, as 
     appropriate, shall--
       ``(A) review existing evaluation data on the child, 
     including evaluations and information provided by the parents 
     of the child, current classroom-based assessments, and 
     observations, and teacher and related services providers 
     observations; and
       ``(B) on the basis of that review, and input from the 
     child's parents, identify what additional data, if any, are 
     needed to determine--
       ``(i) whether the child has a particular category of 
     disability, as described in section 602(3), or, in case of a 
     reevaluation of a child, whether the child continues to have 
     such a disability;
       ``(ii) the present levels of performance and educational 
     needs of the child;
       ``(iii) whether the child needs special education and 
     related services, or in the case of a reevaluation of a 
     child, whether the child continues to need special education 
     and related services; and
       ``(iv) whether any additions or modifications to the 
     special education and related services are needed to enable 
     the child to meet the measurable annual goals set out in the 
     individualized education program of the child and to 
     participate, as appropriate, in the general curriculum.
       ``(2) Source of data.--The local educational agency shall 
     administer such tests and other evaluation materials and 
     procedures 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 the local educational agency 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 is or continues to be a child 
     with a disability, the local educational agency--
       ``(A) shall notify the child's parents of--
       ``(i) that determination and the reasons for the 
     determination; and
       ``(ii) the right of such parents to request an assessment 
     to determine whether the child is or continues to be a child 
     with a disability; and
       ``(B) shall not be required to conduct such an assessment 
     unless requested 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 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.--As used in this title:
       ``(A) Individualized education program.--
       ``(i) In general.--The term `individualized education 
     program' or `IEP' means a written statement for each child 
     with a disability that is developed, reviewed, and revised in 
     accordance with this section and that includes--

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

       ``(aa) how the child's disability affects the child's 
     involvement and progress in the general curriculum; or
       ``(bb) for preschool children, as appropriate, how the 
     disability affects the child's participation in appropriate 
     activities;

       ``(II) a statement of measurable annual goals, 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 curriculum; and
       ``(bb) meet each of the child's other educational needs 
     that result from the child's disability;

[[Page 9409]]

       ``(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, 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 
     curriculum in accordance with subclause (I) and to 
     participate in extracurricular and other nonacademic 
     activities; and
       ``(cc) to be educated and participate with other children 
     with disabilities and nondisabled children in the activities 
     described in this paragraph;

       ``(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 14, 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 by the child to reach those goals, including services 
     to be provided by other agencies when needed; and
       ``(cc) beginning at least 1 year before the child reaches 
     the age of majority under State law, a statement that the 
     child has been informed of 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) at least 1 regular education teacher of such child 
     (if the child is, or may be, participating in the regular 
     education environment);
       ``(iii) at least 1 special education teacher, or where 
     appropriate, at least 1 special education provider of such 
     child;
       ``(iv) a representative of the local educational agency 
     who--

       ``(I) is qualified to provide, or supervise the provision 
     of, specially designed instruction to meet the unique needs 
     of children with disabilities;
       ``(II) is knowledgeable about the general 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.
       ``(viii) if the child is a ward of the State, another 
     individual with appropriate knowledge of the child's 
     educational needs, such as a foster parent, a relative with 
     whom the child lives who acts as a parent to the child, an 
     attorney for the child, a guardian ad litem, a court 
     appointed special advocate, a judge, or an education 
     surrogate.
       ``(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 that member, the parent of a child with a 
     disability, and the local educational agency agree that the 
     attendance of such member is not necessary because no 
     modification to the member's area of the curriculum or 
     related services is 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) that member, the parent, and the local educational 
     agency consent to the excusal; and
       ``(II) the member submits 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.
       ``(2) Requirement that program be in effect.--
       ``(A) In general.--At the beginning of each school year, 
     each local educational agency, State educational agency, or 
     other State agency, as the case may be, shall have in effect, 
     for each child with a disability in its jurisdiction, an 
     individualized education program, as defined in paragraph 
     (1)(A).
       ``(B) Program for child aged 3 through 5.--In the case of a 
     child with a disability aged 3 through 5 (or, at the 
     discretion of the State educational agency, a 2-year-old 
     child with a disability who will turn age 3 during the school 
     year), an individualized family service plan that contains 
     the material described in section 636, and that is developed 
     in accordance with this section, may serve as the IEP of the 
     child if using that plan as the IEP is--
       ``(i) consistent with State policy; and
       ``(ii) agreed to by the agency and the child's parents.
       ``(C) Program for children who transfer school districts.--
       ``(i) In general.--In the case of a child with a 
     disability, including a homeless child with a disability, a 
     child with a disability who is a ward of the State, or a 
     child with a disability in a military family, 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 or another State, the local educational agency, State 
     educational agency, or other State agency, as the case may 
     be, shall immediately provide such child with a free 
     appropriate public education, including comparable services 
     identified in the previously held IEP and in consultation 
     with the parents until such time as the local educational 
     agency, State educational agency, or other State agency, as 
     the case may be, adopts the previously held IEP or develops, 
     adopts, and implements a new IEP that is consistent with 
     Federal and State law.
       ``(ii) Transmittal of records.--To facilitate the 
     transition for a child described in clause (i), the new 
     school in which the child enrolls shall immediately request 
     the child's records from the previous schools in which the 
     child was enrolled and the previous schools in which the 
     child was enrolled shall immediately transmit to the new 
     school, upon such request, the IEP and supporting documents 
     and any other records relating to the provision of special 
     education or related services to the child.
       ``(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, provide for 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--

       ``(I) 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; and
       ``(II) consider, when appropriate, instructional services 
     related to functional performance skills, orientation and 
     mobility, and skills in the use of assistive technology 
     devices, including low vision devices;

       ``(iv) consider the communication needs of the child, and 
     in the case of a child who is deaf or hard of hearing, 
     consider the child's language and communication needs, 
     opportunities for direct communications with peers and 
     professional personnel in the child's language and 
     communication mode, academic level, and full range of needs, 
     including opportunities for direct instruction in the child's 
     language and communication mode; and
       ``(v) consider whether the child requires assistive 
     technology devices and services.
       ``(C) Requirement with respect to regular education 
     teacher.--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

[[Page 9410]]

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

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

       ``(B) Requirement with respect to regular education 
     teacher.--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) Three-year iep.--
       ``(A) Development of 3-year iep.--The local educational 
     agency may offer a child with a disability who has reached 
     the age of 18, the option of developing a comprehensive 3-
     year IEP. With the consent of the parent, when appropriate, 
     the IEP Team shall develop an IEP, as described in paragraphs 
     (1) and (3), that is designed to serve the child for the 
     final 3-year transition period, which includes a statement 
     of--
       ``(i) measurable goals that will enable the child to be 
     involved in and make progress in the general education 
     curriculum and that will meet the child's transitional and 
     postsecondary needs that result from the child's disability; 
     and
       ``(ii) measurable annual goals for measuring progress 
     toward meeting the postsecondary goals described in clause 
     (i).
       ``(B) Review and revision of 3-year iep.--
       ``(i) Requirement.--Each year the local educational agency 
     shall ensure that the IEP Team--

       ``(I) provides an annual review of the child's IEP to 
     determine the child's current levels of progress and 
     determine whether the annual goals for the child are being 
     achieved; and
       ``(II) revises the IEP, as appropriate, to enable the child 
     to continue to meet the measurable transition goals set out 
     in the IEP.

       ``(ii) Comprehensive review.--If the review under clause 
     (i) determines that the child is not making sufficient 
     progress toward the goals described in subparagraph (A), the 
     local educational agency shall ensure that the IEP Team 
     provides a review, within 30 calendar days, of the IEP under 
     paragraph (4).
       ``(iii) Preference.--At the request of the child, or when 
     appropriate, the parent, the IEP Team shall conduct a review 
     of the child's 3-year IEP under paragraph (4) rather than an 
     annual review under subparagraph (B)(i).
       ``(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 that program.
       ``(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)(V) (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 their age, before they will be released from prison.
       ``(B) Additional requirement.--If a child with a disability 
     is convicted as an adult under State law and incarcerated in 
     an adult prison, the child's IEP Team may modify the child's 
     IEP or placement notwithstanding the requirements of sections 
     612(a)(5)(A) and 614(d)(1)(A) if the State has demonstrated a 
     bona fide security or compelling penological interest that 
     cannot otherwise be accommodated.
       ``(e) Educational Placements.--Each local educational 
     agency or State educational agency shall ensure that the 
     parents of each child with a disability are members of any 
     group that makes decisions on the educational placement of 
     their child. Decisions regarding the educational placement of 
     a child with a disability who is a homeless child shall 
     comply with the requirements described under section 
     722(g)(3) of the McKinney-Vento Homeless Assistance Act.
       ``(f) Alternative Means of Meeting Participation.--When 
     conducting IEP Team meetings and placement meetings pursuant 
     to this section, 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, including children with 
     disabilities who are wards of the State, and their parents 
     are guaranteed procedural safeguards with respect to the 
     provision of free appropriate public education by such 
     agencies.
       ``(b) Types of Procedures.--The procedures required by this 
     section shall include--
       ``(1) an opportunity for the parents of a child with a 
     disability to examine all records relating to such child and 
     to participate in meetings with respect to the 
     identification, evaluation, and educational placement of the 
     child, and the provision of a free appropriate public 
     education to such child, and to obtain an independent 
     educational evaluation of the child;
       ``(2) procedures to protect the rights of the child 
     whenever the parents of the child are not known, the agency 
     cannot, after reasonable efforts, locate the parents, the 
     child is a ward of the State, or the child is a homeless 
     child who is not in the physical custody of a parent or 
     guardian 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 accordance with subsection (o);
       ``(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 either party to present complaints 
     with respect to any matter relating to the identification, 
     evaluation, or educational placement of the child, or the 
     provision of a free appropriate public education to such 
     child;
       ``(7)(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; and
       ``(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) a requirement that the local educational agency shall 
     send a prior written notice pursuant to subsection (c)(1) in 
     response to a parent's due process complaint notice under 
     paragraph (7) if the local educational agency has not sent 
     such a prior written notice to the parent regarding the 
     subject matter contained in the parent's due process 
     complaint notice; and
       ``(9) 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.
       ``(10) procedures to protect the rights of the child 
     whenever the child is a ward of the State, including 
     procedures that preserve the rights of the natural or 
     adoptive parent to make the decisions required of parents 
     under this Act (unless such rights have been extinguished 
     under State law) but that permit a child who is represented 
     in juvenile court by an attorney, guardian ad litem, or 
     another individual, to have such attorney, guardian ad litem, 
     or other individual present in any meetings, mediation 
     proceedings, or hearings provided under this Act.
       ``(c) Notification Requirements.--
       ``(1) Content of prior written notice.--The prior written 
     notice of the local educational agency 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;
       ``(C) a description of any other options that the agency 
     considered and the reasons why those options were rejected;

[[Page 9411]]

       ``(D) a description of each evaluation procedure, test, 
     record, or report the agency used as a basis for the proposed 
     or refused action;
       ``(E) a description of any other factors that are relevant 
     to the agency's proposal or refusal;
       ``(F) a statement that the parents of a child with a 
     disability have protection under the procedural safeguards of 
     this part and, if this notice is not an initial referral for 
     evaluation, the means by which a copy of a description of the 
     procedural safeguards can be obtained; and
       ``(G) sources for parents to contact to obtain assistance 
     in understanding the provisions of this part.
       ``(2) Due process complaint notice.--
       ``(A) In general.--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.
       ``(B) Timing.--The party sending a hearing officer 
     notification under subparagraph (A) shall send the 
     notification within 20 days of receiving the complaint.
       ``(C) Determination.--Within 5 days of receipt of the 
     notification provided under subparagraph (B), 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 both 
     parties in writing of such determination.
       ``(D) Parent's amended notice of complaint.--
       ``(i) In general.--A parent may amend the parent's due 
     process complaint notice only if--

       ``(I) the public agency 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, but may do so 
     only 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.
       ``(d) Procedural Safeguards Notice.--
       ``(1) In general.--A copy of the procedural safeguards 
     available to the parents of a child with a disability shall 
     be given to the parents only 1 time a year, except that a 
     copy also shall be given to the parents--
       ``(A) upon initial referral or parental request for 
     evaluation;
       ``(B) upon registration of a complaint under subsection 
     (b)(6); and
       ``(C) upon request by a parent.
       ``(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) attorney's fees.
       ``(e) Mediation.--
       ``(1) In general.--Any State educational agency or local 
     educational agency that receives assistance under this part 
     shall ensure that procedures are established and implemented 
     to allow parties to disputes involving 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 who choose not to 
     use the mediation process, an opportunity to meet, at a time 
     and location convenient to the parents, with a disinterested 
     party who is under contract with--
       ``(i) a parent training and information center 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 mediation agreement.--An agreement reached by 
     the parties to the dispute in the mediation process shall be 
     set forth in a written mediation agreement that 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, and the parties to the mediation process 
     may be required to sign a confidentiality pledge prior to the 
     commencement of such process.
       ``(f) Impartial Due Process Hearing.--
       ``(1) In general.--
       ``(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) Opportunity to resolve complaint.--
       ``(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 IEP Team--

       ``(I) within 15 days of receiving notice of the parents' 
     complaint;
       ``(II) which shall include a representative of the public 
     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 specific issues that form the basis of the 
     complaint, and the local educational agency is provided the 
     opportunity to resolve the complaint,

     unless the parents and the local educational agency agree in 
     writing to waive such meeting, 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 15 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 an 
     agreement is reached to resolve the complaint at such 
     meeting, the agreement shall be set forth in a written 
     settlement agreement that is--

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

       ``(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 a fundamental understanding of this Act, 
     Federal and State regulations pertaining to this Act, and 
     interpretations of this Act by State and Federal 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) Rule of construction.--Nothing in this section shall 
     be construed to preclude a parent

[[Page 9412]]

     from filing a separate due process complaint on an issue 
     separate from a due process complaint already filed.
       ``(D) Timeline for requesting hearing.--A parent or public 
     agency shall request an impartial due process hearing within 
     2 years of 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 requesting such a hearing under this part, in 
     such time as the State law allows.
       ``(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) failure of the local educational agency to provide 
     prior written or procedural safeguards notices;
       ``(ii) false representations that the local educational 
     agency was attempting to resolve the problem forming the 
     basis of the complaint; or
       ``(iii) the local educational agency's withholding of 
     information from parents.
       ``(F) 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) compromised the child's right to an appropriate 
     public education;
       ``(II) seriously hampered the parents' opportunity to 
     participate in the process; or
       ``(III) caused a deprivation of educational benefits.

       ``(iii) Rule of construction.--Nothing in this paragraph 
     shall be construed to preclude a hearing officer from 
     ordering a local educational agency to comply with procedural 
     requirements under this section.
       ``(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.
       ``(g) Appeal.--If the hearing required by subsection (f) is 
     conducted by a local educational agency, any party aggrieved 
     by the findings and decision rendered in such a hearing may 
     appeal such findings and decision to the State educational 
     agency. Such State educational agency shall conduct an 
     impartial review of such decision. The officer conducting 
     such review shall make an independent decision upon 
     completion of such review.
       ``(h) Safeguards.--Any party to a hearing conducted 
     pursuant to subsection (f) or (k), or an appeal conducted 
     pursuant to subsection (g), shall be accorded--
       ``(1) the right to be accompanied and advised by counsel 
     and by individuals with special knowledge or training with 
     respect to the problems of children with disabilities;
       ``(2) the right to present evidence and confront, cross-
     examine, and compel the attendance of witnesses;
       ``(3) the right to a written, or, at the option of the 
     parents, electronic verbatim record of such hearing; and
       ``(4) the right to a 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)(20).
       ``(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 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 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 or to cause unnecessary delay or needless increase in 
     the cost of litigation.

       ``(ii) Rule of construction.--Nothing in this subparagraph 
     shall be construed to affect section 432 of the District of 
     Columbia Appropriations Act, 2004.
       ``(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.
       ``(4) Parents representing their children in court.--
     Subject to subsection (m), and notwithstanding any other 
     provision of Federal law regarding attorney representation 
     (including the Federal Rules of Civil Procedure), a parent of 
     a child with a disability may represent the child in any 
     action under this part in Federal or State court, without the 
     assistance of an attorney.
       ``(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 such child, or, if applying for initial 
     admission to a public school, shall, with the consent of the 
     parents, be placed in the public school program until all 
     such proceedings have been completed.

[[Page 9413]]

       ``(k) Placement in Alternative Educational Setting.--
       ``(1) Authority of school personnel.--
       ``(A) In general.--School personnel under this section may 
     order a change in the placement of a child with a disability 
     who violates a code of student conduct 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).
       ``(B) 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 (C), the relevant 
     disciplinary procedures applicable to children without 
     disabilities may be applied to the child in the same manner 
     in which the procedures would be applied to children without 
     disabilities, except as provided in section 612(a)(1).
       ``(C) Manifestation determination.--
       ``(i) In general.--Except as provided in subparagraphs (A) 
     and (D), 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 IEP Team shall review all 
     relevant information in the student's file, any information 
     provided by the parents, and teacher observations, to 
     determine--

       ``(I) if the conduct in question was the result of the 
     child's disability; or
       ``(II) if the conduct in question resulted from the failure 
     to implement the IEP or to implement behavioral interventions 
     as required by section 614(d)(3)(B)(i).

       ``(ii) Manifestation.--If the IEP Team determines 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.
       ``(D) Special circumstances.--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 or a school function under the jurisdiction of a State 
     or local educational agency; or
       ``(iii) has committed serious bodily injury upon another 
     person while at school or at a school function under the 
     jurisdiction of a State or local educational agency,

     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.
       ``(E) 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.
       ``(F) Services.--A child with a disability who is removed 
     from the child's current placement under subparagraph (B) or 
     (D) shall--
       ``(i) continue to receive educational services pursuant to 
     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 behavioral intervention services as 
     described in section 614(d)(3)(B)(i), and a functional 
     behavioral assessment (but only if the local educational 
     agency did not conduct such an assessment before the 
     violation occurred), designed to address the behavior 
     violation so that the violation does not recur.
       ``(2) Determination of setting.--The alternative 
     educational setting 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 disciplinary 
     action, 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.--If a parent of a child with a disability 
     disagrees with a decision as described in subparagraph (A), 
     the hearing officer may determine whether the decision 
     regarding such action was appropriate.
       ``(ii) Change of placement order.--A hearing officer under 
     this section may 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 a parent requests a 
     hearing regarding a disciplinary procedure described in 
     paragraph (1)(B) or challenges the interim alternative 
     educational setting or manifestation determination--
       ``(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)(B), 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.
       ``(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 (unless the parent is illiterate or has a disability 
     that prevents compliance with the requirements contained in 
     this clause) to personnel of the appropriate educational 
     agency that the child is in need of special education and 
     related services;
       ``(ii) the parent of the child has requested an evaluation 
     of the child pursuant to section 614;
       ``(iii) the teacher of the child, or other personnel of the 
     local educational agency, has expressed concern about a 
     pattern of behavior demonstrated by the child, to the 
     director of special education of such agency or to other 
     administrative personnel of the agency; or
       ``(iv) the child has engaged in a pattern of behavior that 
     should have alerted personnel of the local educational agency 
     that the child may be in need of special education and 
     related services.
       ``(C) Exception.--A local educational agency shall not be 
     deemed to have knowledge that the child has a disability if 
     the parent of the child has not agreed to allow an evaluation 
     of the child pursuant to section 614.
       ``(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 paragraph (1), the 
     evaluation shall be conducted in an expedited manner. If the 
     child is determined to be a child with a disability, taking 
     into consideration information from the evaluation conducted 
     by the agency and information provided by the parents, the 
     agency shall provide special education and related services 
     in accordance with 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) 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.--For purposes of this subsection, the 
     following definitions apply:
       ``(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, 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, 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.

[[Page 9414]]

       ``(m) Transfer of Parental Rights at Age of Majority.--
       ``(1) In general.--A State that receives amounts from a 
     grant under this part may provide that, when a child with a 
     disability reaches the age of majority under State law 
     (except for a child with a disability who has been determined 
     to be incompetent under State law)--
       ``(A) the public agency shall provide any notice required 
     by this section to both the individual and the parents;
       ``(B) all other rights accorded to parents under this part 
     transfer to the child;
       ``(C) the agency shall notify the individual and the 
     parents of the transfer of rights; and
       ``(D) all rights accorded to parents under this part 
     transfer to children who are incarcerated in an adult or 
     juvenile Federal, State, or local correctional institution.
       ``(2) Special rule.--If, under State law, a child with a 
     disability who has reached the age of majority under State 
     law, who has not been determined to be incompetent, but who 
     is determined not to have the ability to provide informed 
     consent with respect to the educational program of the child, 
     the State shall establish procedures for appointing the 
     parent of the child, or if the parent is not available, 
     another appropriate individual, to represent the educational 
     interests of the child throughout the period of eligibility 
     of the child under this part.
       ``(n) E-Mail.--A parent of a child with a disability may 
     elect to receive notices required under this section by e-
     mail communication, if the public agency makes such option 
     available.
       ``(o) Surrogate Parent.--
       ``(1) Assignment.--The assignment of a surrogate under 
     subsection (b)(2) shall take place not more than 30 days 
     after either of the following takes place:
       ``(A) The child is referred to the local educational agency 
     for an initial evaluation to determine if the child is a 
     child with a disability.
       ``(B) There is a determination made by the agency that the 
     child needs a surrogate parent because the child's parent 
     cannot be identified, the child becomes a ward of the State, 
     or, despite reasonable efforts to do so, the agency cannot 
     discover the whereabouts of the parent of the child.
       ``(2) Requirements of surrogate.--An individual may not be 
     assigned to act as a surrogate for the parents under 
     subsection (b)(2) unless the individual--
       ``(A) signs a written form agreeing to make the educational 
     decisions required of parents under this Act;
       ``(B)(i) has the knowledge and skills necessary to ensure 
     adequate representation of the child; or
       ``(ii) agrees to be trained as an educational surrogate; 
     and
       ``(C) has no interests that would conflict with the 
     interests of the child.
       ``(3) Foster parent as surrogate.--A foster parent of a 
     child may be assigned to act as a surrogate for the parents 
     of such child under subsection (b)(2) if the foster parent--
       ``(A) has an ongoing, long-term parental relationship with 
     the child;
       ``(B) agrees to make the educational decisions required of 
     parents under this Act;
       ``(C) agrees to be trained as an educational surrogate; and
       ``(D) has no interest that would conflict with the 
     interests of the child.

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

       ``(a) Federal and State Monitoring.--
       ``(1) In general.--The Secretary shall--
       ``(A) monitor implementation of this Act through--
       ``(i) oversight of the States' exercise of general 
     supervision, as required in section 612(a)(11); and
       ``(ii) the system of indicators, described in subsection 
     (b)(2); and
       ``(B) enforce this Act in accordance with subsection (c); 
     and
       ``(C) require States to monitor implementation of this Act 
     by local educational agencies and enforce this Act in 
     accordance with paragraph (3) of this subsection and 
     subsection (c).
       ``(2) Focused monitoring.--The primary focus of Federal and 
     State monitoring activities described in paragraph (1) shall 
     be on improving educational results and functional outcomes 
     for all children with disabilities, while ensuring compliance 
     with program requirements, with a particular emphasis on 
     those requirements that are most closely related to improving 
     educational results for children with disabilities.
       ``(3) Monitoring priorities.--The Secretary shall monitor, 
     and shall require States to monitor, the following priority 
     areas:
       ``(A) Provision of a free appropriate public education in 
     the least restrictive environment.
       ``(B) Provision of transition services, as defined in 
     section 602(33).
       ``(C) State exercise of general supervisory authority, 
     including the effective use of complaint resolution and 
     mediation.
       ``(D) Overrepresentation of racial and ethnic groups in 
     special education and related services, to the extent the 
     overrepresentation is the result of inappropriate policies, 
     procedures, and practices.
       ``(4) Permissive areas of review.--The Secretary may 
     examine other relevant information and data, including data 
     provided by States under section 618, and data from the 
     State's compliance plan under subsection (b)(2)(C).
       ``(b) Indicators.--
       ``(1) System.--The Secretary shall implement and administer 
     a system of required indicators as described in paragraph (2) 
     that measures the progress of States in improving their 
     performance under this Act.
       ``(2) Indicators.--
       ``(A) In general.--Using the performance indicators 
     established by States under section 612(a)(15), the Secretary 
     shall review--
       ``(i) the performance of children with disabilities in the 
     State on assessments, including alternate assessments, 
     dropout rates, and graduation rates, which for purposes of 
     this paragraph means the number and percentage of students 
     with disabilities who graduate with a regular diploma within 
     the number of years specified in a student's IEP; and
       ``(ii) the performance of children with disabilities in the 
     State on assessments, including alternate assessments, 
     dropout rates, and graduation rates, as compared to the 
     performance and rates for all children.
       ``(B) Secretary's assessment.--Based on that review and a 
     review of the State's compliance plan under subparagraph (C), 
     the Secretary shall assess the State's progress in improving 
     educational results for children with disabilities.
       ``(C) State compliance plan.--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 compliance plan developed in 
     collaboration with the Secretary. Each State's compliance 
     plan shall--
       ``(i) include benchmarks to measure continuous progress on 
     the priority areas described in subsection (a)(3);
       ``(ii) describe strategies the State will use to achieve 
     the benchmarks; and
       ``(iii) be approved by the Secretary.
       ``(D) Public reporting and privacy.--
       ``(i) In general.--After the Secretary approves a State's 
     compliance plan under subparagraph (C), the State shall use 
     the benchmarks in the plan and the indicators described in 
     this subsection to analyze the progress of each local 
     educational agency in the State on those benchmarks and 
     indicators.
       ``(ii) Report.--The State shall report annually to the 
     public on each local educational agency's progress under 
     clause (i), except where doing so would result in the 
     disclosure of personally identifiable information about 
     individual children or where the available data is 
     insufficient to yield statistically reliable information.
       ``(3) Data collection and analysis.--The Secretary shall--
       ``(A) review the data collection and analysis capacity of 
     States to ensure that data and information determined 
     necessary for implementation of this subsection is collected, 
     analyzed, and accurately reported to the Secretary; and
       ``(B) provide technical assistance to improve the capacity 
     of States to meet these data collection requirements.
       ``(c) Compliance and Enforcement.--
       ``(1) In general.--The Secretary shall examine relevant 
     State information and data annually, to determine whether the 
     State is making satisfactory progress toward improving 
     educational results for children with disabilities using the 
     indicators described in subsection (b)(2)(A) and the 
     benchmarks established in the State compliance plan under 
     subsection (b)(2)(C), and is in compliance with the 
     provisions of this Act.
       ``(2) Lack of satisfactory progress by a state.--
       ``(A) In general.--If after examining data, as provided in 
     subsection (b)(2) (A) and (C), the Secretary determines that 
     a State failed to make satisfactory progress in meeting the 
     indicators described in subsection (b)(2)(A) or has failed to 
     meet the benchmarks described in subsection (b)(2)(C) for 2 
     consecutive years after the State has developed its 
     compliance plan, the Secretary shall notify the State that 
     the State has failed to make satisfactory progress, and shall 
     take 1 or more of the following actions:
       ``(i) Direct the use of State level funds for technical 
     assistance, services, or other expenditures to ensure that 
     the State resolves the area or areas of unsatisfactory 
     progress.
       ``(ii) Withhold not less than 20, but not more than 50, 
     percent of the State's funds for State administration and 
     activities for the fiscal year under section 611(e), after 
     providing the State the opportunity to show cause why the 
     withholding should not occur, until the Secretary determines 
     that sufficient progress has been made in improving 
     educational results for children with disabilities.
       ``(B) Additional secretarial action.--If, at the end of the 
     5th year after the Secretary has approved the compliance plan 
     that the State has developed under subsection (b)(2)(C), the 
     Secretary determines that a State failed to meet the 
     benchmarks in the State compliance plan and make satisfactory 
     progress in improving educational results for children with 
     disabilities pursuant to the indicators described in 
     subsection (b)(2)(A), the Secretary shall take 1 or more of 
     the following actions:
       ``(i) Seek to recover funds under section 452 of the 
     General Education Provisions Act.
       ``(ii) After providing reasonable notice and an opportunity 
     for a hearing to the State educational agency involved, 
     withhold, in whole or in part, any further payments to the 
     State under this part pursuant to subsection (c)(5).
       ``(iii) After providing reasonable notice and an 
     opportunity for a hearing to the State educational agency 
     involved, refer the matter for appropriate enforcement 
     action, which may include referral to the Department of 
     Justice.
       ``(iv) Pending the outcome of any hearing to withhold 
     payments under clause (ii), the Secretary may suspend 
     payments to a recipient,

[[Page 9415]]

     suspend the authority of the recipient to obligate Federal 
     funds, or both, after such recipient has been given 
     reasonable notice and an opportunity to show cause why future 
     payments or authority to obligate Federal funds should not be 
     suspended.
       ``(C) Substantial noncompliance.--Notwithstanding 
     subparagraph (B), at any time that the Secretary determines 
     that a State is not in substantial compliance with any 
     provision of this part or that there is a substantial failure 
     to comply with any condition of a local agency's or State 
     agency's eligibility under this part, the Secretary shall 
     take 1 or more of the following actions:
       ``(i) Request that the State prepare a corrective action 
     plan or improvement plan if the Secretary determines that the 
     State should be able to correct the problem within 1 year.
       ``(ii) Identify the State as a high-risk grantee and impose 
     special conditions on the State's grant under this part.
       ``(iii) Require the State to enter into a compliance 
     agreement under section 457 of the General Education 
     Provisions Act, if the Secretary has reason to believe that 
     the State cannot correct the problem within 1 year.
       ``(iv) Recovery of funds under section 452 of the General 
     Education Provisions Act.
       ``(v) After providing reasonable notice and an opportunity 
     for a hearing to the State educational agency involved, 
     withhold, in whole or in part, any further payments to the 
     State under this part.
       ``(vi) After providing reasonable notice and an opportunity 
     for a hearing to the State educational agency involved, refer 
     the matter for appropriate enforcement action, which may 
     include referral to the Department of Justice.
       ``(vii) Pending the outcome of any hearing to withhold 
     payments under clause (v), the Secretary may suspend payments 
     to a recipient, suspend the authority of the recipient to 
     obligate Federal funds, or both, after such recipient has 
     been given reasonable notice and an opportunity to show cause 
     why future payments or authority to obligate Federal funds 
     should not be suspended.
       ``(3) Egregious noncompliance.--At any time that the 
     Secretary determines that a State is in egregious 
     noncompliance or is willfully disregarding the provisions of 
     this Act, the Secretary shall take such additional 
     enforcement actions as the Secretary determines to be 
     appropriate from among those actions specified in paragraph 
     (2)(C), and, additionally, may impose 1 or more of the 
     following sanctions upon that State:
       ``(A) Institute a cease and desist action under section 456 
     of the General Education Provisions Act.
       ``(B) Refer the case to the Office of the Inspector 
     General.
       ``(4) Report to congress.--The Secretary shall report to 
     Congress within 30 days of taking enforcement action pursuant 
     to paragraph (2) (B) or (C), or (3), on the specific action 
     taken and the reasons why enforcement action was taken.
       ``(5) Nature of withholding.--If the Secretary withholds 
     further payments under paragraphs (2)(B)(ii) and (2)(C)(v), 
     the Secretary may determine that such withholding will be 
     limited to programs or projects, or portions thereof, 
     affected by the failure, or that the State educational agency 
     shall not make further payments under this part to specified 
     local educational agencies or State agencies affected by the 
     failure. Until the Secretary is satisfied that there is no 
     longer any failure to make satisfactory progress as specified 
     in paragraph (2)(B), or to comply with the provisions of this 
     part, as specified in paragraph (2)(C), payments to the State 
     under this part shall be withheld in whole or in part, or 
     payments by the State educational agency under this part 
     shall be limited to local educational agencies and State 
     agencies whose actions did not cause or were not involved in 
     the failure, as the case may be. Any State educational 
     agency, State agency, or local educational agency that has 
     received notice under paragraph (2)(B) or (2)(C) shall, by 
     means of a public notice, take such measures as may be 
     necessary to bring the pendency of an action pursuant to this 
     subsection to the attention of the public within the 
     jurisdiction of such agency.
       ``(6) Judicial review.--
       ``(A) In general.--If any State is dissatisfied with the 
     Secretary's final action with respect to the eligibility of 
     the State under section 612, such State may, not later than 
     60 days after notice of such action, file with the United 
     States court of appeals for the circuit in which such State 
     is located a petition for review of that action. A copy of 
     the petition shall be forthwith transmitted by the clerk of 
     the court to the Secretary. The Secretary thereupon shall 
     file in the court the record of the proceedings upon which 
     the Secretary's action was based, as provided in section 2112 
     of title 28, United States Code.
       ``(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 likewise be conclusive 
     if supported by substantial evidence.
       ``(d) 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.
       ``(e) State and Local Monitoring.--
       ``(1) In general.--The State educational agency shall 
     monitor and enforce implementation of this Act, implement a 
     system of monitoring the benchmarks in the State's compliance 
     plan under subsection (b)(2)(C), and require local 
     educational agencies to monitor and enforce implementation of 
     this Act.
       ``(2) Additional enforcement options.--If a State 
     educational agency determines that a local educational agency 
     is not meeting the requirements of this part, including the 
     benchmarks in the State's compliance plan, the State 
     educational agency shall prohibit the local educational 
     agency from treating funds received under this part as local 
     funds under section 613(a)(2)(C) for any fiscal year.

     ``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) Confidentiality.--The Secretary shall take 
     appropriate action, in accordance with section 444 of the 
     General Education Provisions Act (20 U.S.C. 1232g), to assure 
     the protection of the confidentiality of any personally 
     identifiable data, information, and records collected or 
     maintained by the Secretary and by State and local 
     educational agencies pursuant to this part.
       ``(c) Personnel.--The Secretary is authorized to hire 
     qualified personnel necessary to carry out the Secretary's 
     duties under subsection (a) and under sections 618, 661, and 
     664, 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 not more than 20 such 
     personnel shall be employed at any 1 time.
       ``(d) Model Forms.--Not later than the date that the 
     Secretary publishes final regulations under this Act, 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 
     section 615 (b)(3) and (c)(1) 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--
       ``(1)(A) the number and percentage of children with 
     disabilities, by race, ethnicity, limited English proficiency 
     status, gender, and disability category, who are receiving a 
     free appropriate public education;
       ``(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, ethnicity, limited English proficiency 
     status, gender, and disability category, who are 
     participating in regular education;
       ``(D) the number and percentage of children with 
     disabilities, by race, ethnicity, limited English proficiency 
     status, gender, and disability category, who are in separate 
     classes, separate schools or facilities, or public or private 
     residential facilities;
       ``(E) the number and percentage of children with 
     disabilities, by race, ethnicity, limited English proficiency 
     status, gender, and disability category, who, for each year 
     of age from age 14 through 21, stopped receiving special 
     education and related services because of program

[[Page 9416]]

     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;
       ``(F) 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;
       ``(G)(i) the number and percentage of children with 
     disabilities, by race, ethnicity, limited English proficiency 
     status, gender, and disability category, who are removed to 
     an interim alternative educational setting under section 
     615(k)(1);
       ``(ii) the acts or items precipitating those removals; and
       ``(iii) the number of children with disabilities who are 
     subject to long-term suspensions or expulsions;
       ``(H) 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;
       ``(I) 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;
       ``(J) the number of due process complaints filed under 
     section 615 and the number of hearings conducted;
       ``(K) the number of hearings requested under section 615(k) 
     and the number of changes in placements ordered as a result 
     of those hearings;
       ``(L) the number of hearings requested under section 
     615(k)(3)(B)(ii) and the number of changes in placements 
     ordered as a result of those hearings; and
       ``(M) 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; and
       ``(3) any other information that may be required by the 
     Secretary.
       ``(b) Data Reporting.--The data described in subsection (a) 
     shall be reported by each State at the school district and 
     State level in a manner that does not result in the 
     disclosure of data identifiable to individual children.
       ``(c) Technical Assistance.--The Secretary may provide 
     technical assistance to States to ensure compliance with the 
     data collection and reporting requirements under this Act.
       ``(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 is 
     occurring in the State with respect to--
       ``(A) the identification of children as children with 
     disabilities, including the identification of children as 
     children with disabilities in accordance with a particular 
     impairment described in section 602(3);
       ``(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 provide for the 
     review and, if appropriate, revision of the policies, 
     procedures, and practices used in such identification or 
     placement to ensure that such policies, procedures, and 
     practices comply with the requirements of this Act.

     ``SEC. 619. PRESCHOOL GRANTS.

       ``(a) In General.--The Secretary shall provide grants under 
     this section to assist States to provide special education 
     and related services, in accordance with this part--
       ``(1) to children with disabilities aged 3 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) 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) 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) If the amount available for allocations under this 
     paragraph is equal to or less than the amount allocated under 
     this section to the States for fiscal year 1997, each State 
     shall be allocated the amount the State received for that 
     year, 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 of this Act, if the State educational agency is the lead 
     agency for the State under that part.
       ``(f) Other State-Level Activities.--Each State shall use 
     any funds 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);

[[Page 9417]]

       ``(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; or
       ``(5) to provide early intervention services (which shall 
     include an educational component that promotes school 
     readiness and incorporates pre-literacy, 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.
       ``(g) Subgrants to Local Educational Agencies.--
       ``(1) Subgrants required.--Each State that receives a grant 
     under this section for any fiscal year shall distribute all 
     of the grant funds that 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 that agency with State and local funds, the State 
     educational agency may reallocate any portion of the funds 
     under this section that are not needed by that local 
     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 of this Act does not 
     apply to any child with a disability receiving a free 
     appropriate public education, in accordance with this part, 
     with funds received under this section.
       ``(i) Definition.--For the purpose of this section, the 
     term `State' means each of the 50 States, the District of 
     Columbia, and the Commonwealth of Puerto Rico.
       ``(j) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated 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 which 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 high quality 
     early intervention services and expand and improve existing 
     early intervention services being provided to infants and 
     toddlers with disabilities and their families; and
       ``(4) to encourage States to expand opportunities for 
     children under 3 years of age who would be at risk of having 
     substantial developmental delay if they did not receive early 
     intervention services.

     ``SEC. 632. DEFINITIONS.

       ``As used in this part:
       ``(1) At-risk infant or toddler.--The term `at-risk infant 
     or toddler' means an individual under 3 years of age who 
     would be at risk of experiencing a substantial developmental 
     delay if early intervention services were not provided to the 
     individual.
       ``(2) Council.--The term `council' means a State 
     interagency coordinating council established under section 
     641.
       ``(3) Developmental delay.--The term `developmental delay', 
     when used with respect to an individual residing in a State, 
     has the meaning given such term by the State under section 
     635(a)(1).
       ``(4) Early intervention services.--The term `early 
     intervention services' means developmental services that--
       ``(A) are provided under public supervision;
       ``(B) are provided at no cost except where Federal or State 
     law provides for a system of payments by families, including 
     a schedule of sliding fees;
       ``(C) are designed to meet the developmental needs of an 
     infant or toddler with a disability in any 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) teachers of the deaf;
       ``(iv) occupational therapists;
       ``(v) physical therapists;
       ``(vi) psychologists;
       ``(vii) social workers;
       ``(viii) nurses;
       ``(ix) nutritionists;
       ``(x) family therapists;
       ``(xi) orientation and mobility specialists;
       ``(xii) vision specialists, including opthamologists and 
     optometrists; and
       ``(xiii) 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 which 
     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.

     ``SEC. 633. GENERAL AUTHORITY.

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

     ``SEC. 634. ELIGIBILITY.

       ``In order to be eligible for a grant under section 633, a 
     State shall demonstrate to the Secretary that the State--
       ``(1) has adopted a policy that appropriate early 
     intervention services are available to all infants and 
     toddlers with disabilities in the State and their families, 
     including Indian infants and toddlers with disabilities and 
     their families residing on a reservation geographically 
     located in the State, infants or toddlers with disabilities 
     who are homeless children, infants or toddlers with 
     disabilities who are wards of the State, and infants or 
     toddlers with disabilities who have a parent who is a member 
     of the Armed Forces, including a member of the National Guard 
     or Reserves; and

[[Page 9418]]

       ``(2) has in effect a statewide system that meets the 
     requirements of section 635.

     ``SEC. 635. REQUIREMENTS FOR STATEWIDE SYSTEM.

       ``(a) In General.--A statewide system described in section 
     633 shall include, at a minimum, the following components:
       ``(1) A definition of the term `developmental delay' that--
       ``(A) will be used by the State in carrying out programs 
     under this part; and
       ``(B) covers, at a minimum, all infants and toddlers with--
       ``(i) a developmental delay of 35 percent or more in 1 of 
     the developmental areas described in section 632(5)(A)(i); or
       ``(ii) a developmental delay of 25 percent or more in 2 or 
     more of the developmental areas described in section 
     632(5)(A)(i).
       ``(2) A State policy that is in effect and that ensures 
     that appropriate early intervention services are available to 
     all infants and toddlers with disabilities and their 
     families, including Indian infants and toddlers and their 
     families residing on a reservation geographically located in 
     the State.
       ``(3) A timely, comprehensive, multidisciplinary evaluation 
     of the functioning of each infant or toddler with a 
     disability in the State, and a family-directed identification 
     of the needs of each family of such an infant or toddler, to 
     appropriately assist in the development of the infant or 
     toddler.
       ``(4) For each infant or toddler with a disability in the 
     State, an individualized family service plan in accordance 
     with section 636, including service coordination services in 
     accordance with such service plan.
       ``(5) A comprehensive child find system, consistent with 
     part B, including a system for making referrals to service 
     providers that includes timelines and provides for 
     participation by primary referral sources.
       ``(6) A public awareness program focusing on early 
     identification of infants and toddlers with disabilities, 
     including the preparation and dissemination by the lead 
     agency designated or established under paragraph (10) to all 
     primary referral sources, especially hospitals, physicians, 
     homeless family shelters, medicaid and State child health 
     insurance program enrollment offices, health and mental 
     health clinics, public schools in low-income areas serving 
     low-income children, staff in State and local child welfare 
     agencies, judges, and base commanders or their designees, of 
     information for parents on the availability of early 
     intervention services, and procedures for determining the 
     extent to which such sources disseminate such information to 
     parents of infants and toddlers.
       ``(7) A central directory that includes information on 
     early intervention services, resources, and experts available 
     in the State and research and demonstration projects being 
     conducted in the State.
       ``(8) A comprehensive system of personnel development, 
     including the training of paraprofessionals and the training 
     of primary referral sources with respect to the basic 
     components of early intervention services available in the 
     State, which comprehensive system may include--
       ``(A) implementing innovative strategies and activities for 
     the recruitment and retention of early education service 
     providers;
       ``(B) promoting the preparation of early intervention 
     providers who are fully and appropriately qualified to 
     provide early intervention services under this part;
       ``(C) training personnel to work in rural and inner-city 
     areas; and
       ``(D) training personnel to coordinate transition services 
     for infants and toddlers served under this part from an early 
     intervention program under this part to preschool or other 
     appropriate services.
       ``(9) Policies and procedures relating to the establishment 
     and maintenance of standards to ensure that personnel 
     necessary to carry out this part are appropriately and 
     adequately prepared and trained, including the establishment 
     and maintenance of standards which are consistent with any 
     State-approved or recognized certification, licensing, 
     registration, or other comparable requirements which apply to 
     the area in which such personnel are providing early 
     intervention services, 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) to the maximum extent appropriate, 
     early intervention services are provided in natural 
     environments unless a specific outcome cannot be met 
     satisfactorily for the infant or toddler in a natural 
     environment.
       ``(17) A procedure to ensure that early intervention 
     services and evaluations are available to infants or toddlers 
     with disabilities who are--
       ``(A) homeless children; and
       ``(B) wards of the State or in foster care, or both.
       ``(b) Flexibility To Serve Children 3 Years of Age to Under 
     6 Years of Age.--
       ``(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--
       ``(A) 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 
     this subsection for such infants or toddlers;
       ``(B) 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;
       ``(C) that parents of children served pursuant to this 
     subsection are provided with annual notice--
       ``(i) of such parents' right to elect services pursuant to 
     this subsection or under part B; and
       ``(ii) fully explaining the differences between receiving 
     services pursuant to this subsection and receiving services 
     under part B, including--

       ``(I) the types of services available under both 
     provisions;
       ``(II) applicable procedural safeguards under both 
     provisions, including due-process protections and mediation 
     or other dispute resolution options; 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;

       ``(D) that the conference under section 
     637(a)(9)(A)(ii)(II), the review under section 637(a)(9)(B), 
     and the establishment of a transition plan under section 
     637(a)(9)(C) occur not less than 90 days (and at the 
     discretion of the parties to the conference, not more than 9 
     months) before each of the following:
       ``(i) the time the child will first be eligible for 
     services under part B, including under section 619; and
       ``(ii) if the child is receiving services in accordance 
     with this subsection, the time the child will no longer 
     receive those services;
       ``(E) 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;
       ``(F) that services provided pursuant to this subsection 
     include an educational component that promotes school 
     readiness and incorporates preliteracy, language, and 
     numeracy skills and are provided in accordance with an 
     individualized family service plan under section 636; and
       ``(G) the referral for evaluation for early intervention 
     services of a child below the age of 3 who experiences a 
     substantiated case of exposure to violence or trauma.
       ``(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--
       ``(A) the 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

[[Page 9419]]

       ``(B) the number of children who are eligible for services 
     under section 619 who instead continue to receive early 
     intervention services under this part.
       ``(4) Rule of construction.--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)(A), including fees to be charged to families as 
     described in section 632(4)(B).
       ``(c) Construction.--Nothing in subsection (a)(5) shall be 
     construed to alter the responsibility of a State under title 
     XIX of the Social Security Act with respect to early and 
     periodic screening, diagnostic, and treatment services (as 
     defined in section 1905(r) of such Act).

     ``SEC. 636. INDIVIDUALIZED FAMILY SERVICE PLAN.

       ``(a) Assessment and Program Development.--A statewide 
     system described in section 633 shall provide, at a minimum, 
     for each infant or toddler with a disability, and the 
     infant's or toddler's family, to receive--
       ``(1) a multidisciplinary assessment of the unique 
     strengths and needs of the infant or toddler and the 
     identification of services appropriate to meet such needs;
       ``(2) a family-directed assessment of the resources, 
     priorities, and concerns of the family and the identification 
     of the supports and services necessary to enhance the 
     family's capacity to meet the developmental needs of the 
     infant or toddler; and
       ``(3) a written individualized family service plan 
     developed by a multidisciplinary team, including the parents, 
     as required by subsection (e), including a description of the 
     appropriate transition services for the child.
       ``(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 outcomes expected to be 
     achieved for the infant or toddler and the family, including, 
     as appropriate, preliteracy and language skills, and the 
     criteria, procedures, and timelines used to determine the 
     degree to which progress toward achieving the outcomes is 
     being made and whether modifications or revisions of the 
     outcomes or services are necessary;
       ``(4) a statement of specific early intervention services 
     necessary to meet the unique needs of the infant or toddler 
     and the family, including the frequency, intensity, and 
     method of delivering services;
       ``(5) a statement of the natural environments in which 
     early intervention services 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 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 evaluation for early 
     intervention services 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(b)) to preschool, 
     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 at least 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; and
       ``(10) such other information and assurances as the 
     Secretary may reasonably require.
       ``(11) a description of policies and procedures to ensure 
     that infants or toddlers with disabilities who are homeless 
     children and their families and infants or toddlers with 
     disabilities who are wards of the State have access to 
     multidisciplinary evaluations and early intervention 
     services.
       ``(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 the 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

[[Page 9420]]

     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 part 
     C, as in effect before the date of enactment of 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 Act, or a Federal 
     regulation issued under this Act;
       ``(2) a new interpretation of this Act is made by a Federal 
     court or the State's highest court; or
       ``(3) an official finding of noncompliance with Federal law 
     or regulations is made with respect to the State.

     ``SEC. 638. USES OF FUNDS.

       ``In addition to using funds provided under section 633 to 
     maintain and implement the statewide system required by such 
     section, a State may use such funds--
       ``(1) for direct early intervention services for infants 
     and toddlers with disabilities, and their families, under 
     this part that are not otherwise funded through other public 
     or private sources;
       ``(2) to expand and improve on services for infants and 
     toddlers and their families under this part that are 
     otherwise available;
       ``(3) to provide a free appropriate public education, in 
     accordance with part B, to children with disabilities from 
     their third birthday to the beginning of the following school 
     year;
       ``(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 to the 
     beginning of the following school year, 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 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 State 
     educational 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 dispute.
       ``(B) Consistency between agreements or mechanisms under 
     parts b and d.--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).
       ``(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.

[[Page 9421]]

       ``(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:
       ``(A) Parents.--At least 20 percent of the members shall be 
     parents of infants or toddlers with disabilities or children 
     with disabilities aged 12 or younger, with knowledge of, or 
     experience with, programs for infants and toddlers with 
     disabilities. At least 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, not less than one other member 
     shall be a foster parent of a child with a disability, not 
     less than one other member shall be a grandparent or other 
     relative acting in the place of a natural or adoptive parent 
     of a child with a disability, and not less than 1 other 
     member shall be a representative of children with 
     disabilities in military families.
       ``(B) Service providers.--At least 20 percent of the 
     members shall be public or private providers of early 
     intervention services.
       ``(C) State legislature.--At least 1 member shall be from 
     the State legislature.
       ``(D) Personnel preparation.--At least 1 member shall be 
     involved in personnel preparation.
       ``(E) Agency for early intervention services.--At least 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.--At least 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.--At least 1 member shall be 
     from the agency responsible for the State medicaid program.
       ``(H) Head start agency.--At least 1 representative from a 
     Head Start agency or program in the State.
       ``(I) Child care agency.--At least 1 representative from a 
     State agency responsible for child care.
       ``(J) Agency for health insurance.--At least 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 representative 
     designated by the Office of Coordinator for Education of 
     Homeless Children and Youths.
       ``(L) State child welfare agency.--Not less than 1 
     representative from the State child welfare agency 
     responsible for foster care.
       ``(M) Representative of foster children.--Not less than 1 
     individual who represents the interests of children in foster 
     care and understands such children's education needs, such as 
     an attorney for children in foster care, a guardian ad litem, 
     a court appointed special advocate, a judge, or an education 
     surrogate for children in foster care.
       ``(2) Other members.--The council may include other members 
     selected by the Governor, including a representative from the 
     Bureau of Indian Affairs, or where there is no BIA-operated 
     or BIA-funded school, from the Indian Health Service or the 
     tribe or tribal council.
       ``(c) Meetings.--The council shall meet at least quarterly 
     and in such places as 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.
       ``(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 BIA, local 
     educational agencies, and other public or private nonprofit 
     organizations. The tribe, tribal organization, or consortium 
     is encouraged to involve Indian parents in the development 
     and implementation of these activities. The above entities 
     shall, as appropriate, make referrals to local, State, or 
     Federal entities for the provision of services or further 
     diagnosis.
       ``(5) Reports.--To be eligible to receive a grant under 
     paragraph (2), a tribe, tribal organization, or consortium 
     shall make a biennial report to the Secretary of the Interior 
     of activities undertaken under this subsection, including

[[Page 9422]]

     the number of contracts and cooperative agreements entered 
     into, the number of children contacted and receiving services 
     for each year, and the estimated number of children needing 
     services during the 2 years following the year in which the 
     report is made. The Secretary of the Interior shall include a 
     summary of this information on a biennial basis to the 
     Secretary of Education along with such other information as 
     required under section 611(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.--For the purpose of this subsection--
       ``(A) the terms `infants' and `toddlers' mean children 
     under 3 years of age; and
       ``(B) the term `State' means each of the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.
       ``(d) Reallotment of Funds.--If a State elects not to 
     receive its allotment under subsection (c), the Secretary 
     shall reallot, among the remaining States, amounts from such 
     State in accordance with such subsection.
       ``(e) Reservation for State Bonus Grants.--The Secretary 
     shall reserve 10 percent of the amount by which the amount 
     appropriated under section 644 for any fiscal year exceeds 
     $434,159,000 to make allotments to States that are carrying 
     out the policy described in section 635(b), in accordance 
     with the formula described in subsection (c)(1) without 
     regard to subsections (c) (2) and (3).

     ``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 2004 through 2009.

  ``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 them to lead productive 
     and independent adult lives.
       ``(2) Systemic change benefiting all students, including 
     children with disabilities, requires the involvement of 
     States, local educational agencies, parents, individuals with 
     disabilities and their families, teachers and other service 
     providers, and other interested individuals and organizations 
     to develop and implement comprehensive strategies that 
     improve educational results for children with disabilities.
       ``(3) State educational agencies, in partnership with local 
     educational agencies, parents of children with disabilities, 
     and other individuals and organizations, are in the best 
     position to improve education for children with disabilities 
     and to address their special needs.
       ``(4) An effective educational system serving students with 
     disabilities should--
       ``(A) maintain high academic 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 to serve effectively children with 
     disabilities, to assume leadership positions in 
     administration and direct services, to provide teacher 
     training, and 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) A comprehensive research agenda should be established 
     and pursued to promote the highest quality and rigor in 
     special education research, and to address the full range of 
     issues facing children with disabilities, parents of children 
     with disabilities, school personnel, and others.
       ``(10) 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.
       ``(11) Parents, teachers, administrators, and related 
     services personnel need technical assistance and information 
     in a timely, coordinated, and accessible manner in order to 
     improve early intervention, educational, and transitional 
     services and results at the State and local levels for 
     children with disabilities and their families.
       ``(12) Parent training and information activities assist 
     parents of a child with a disability in dealing with the 
     multiple pressures of parenting such a child and are of 
     particular importance in--
       ``(A) 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 Act to ensure 
     improved early intervention, educational, and transitional 
     results for children with disabilities;
       ``(E) assisting such parents in the development of skills 
     to participate effectively in the education and development 
     of their children and in the transitions described in section 
     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.
       ``(13) 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 Preparation and Professional Development 
                                 Grants

     ``SEC. 651. PURPOSE; DEFINITION; 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.--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.--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.

[[Page 9423]]

       ``(4) Increases.--The Secretary may increase the amounts 
     under in paragraph (3) to account for inflation.
       ``(5) Factors.--The Secretary shall set the amount of each 
     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 
     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 application meets the 
     requirements of this subpart, an amount that bears the same 
     relation to the amount appropriated 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 that received a competitive multi-
     year grant under subsection (c) for which the grant period 
     has not expired shall be at least the amount specified for 
     that fiscal year in the State's grant award document under 
     that subsection.
       ``(B) Special rule.--Each such State shall use the minimum 
     amount described in subparagraph (A) for the activities 
     described in its competitive grant award document for that 
     year, unless the Secretary approves a request from the State 
     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.
       ``(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 (at 
     the request of the State) 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 to 
     carry out activities in accordance with the terms of the 
     multi-year award.
       ``(2) Prohibition.--A State 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 
     institutions of higher education and the State agencies 
     responsible for administering part C, 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 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 that 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 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 Preparation and 
     Professional Development Plan.--Each professional 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 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 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 will align its professional 
     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 what strategies the State will use to 
     address the professional development and personnel needs 
     identified under subsection (a)(2) and how those strategies 
     will be implemented, including--
       ``(A) a description of the preservice and inservice 
     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 shall be integrated, to the 
     maximum extent possible, with other activities supported by 
     grants funded under this part, including those under section 
     664;
       ``(5) provide an assurance that the State 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 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 will recruit and retain highly 
     qualified teachers and other qualified personnel in 
     geographic areas of greatest need;
       ``(8) describe the steps the State 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 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).

[[Page 9424]]

       ``(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 
     describe the progress of the State in implementing its plan 
     and analyze the effectiveness of the State's activities under 
     this subpart.

     ``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(34) 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 
     with limited English proficiency;
       ``(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 recruitment 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(34) 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 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 they 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) Developing or assisting local educational agencies to 
     serve children with disabilities through the development and 
     use of proven, innovative strategies to deliver intensive 
     professional development programs that are both cost 
     effective and easily accessible, such as strategies that 
     involve delivery through the use of technology, peer 
     networks, and distance learning.
       ``(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 and functional achievement 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.--Each such State educational 
     agency--
       ``(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

[[Page 9425]]

     lead agency under part C, to carry out such 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 75 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 25 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 2004 through 2009.

``Subpart 2--Scientifically Based Research, Technical Assistance, Model 
        Demonstration Projects, and Dissemination of Information

     ``SEC. 660. PURPOSE.

       ``The purpose of this subpart is--
       ``(1) to provide Federal funding for scientifically based 
     research, technical assistance, model demonstration projects, 
     and information dissemination 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.

     ``SEC. 661. ADMINISTRATIVE PROVISIONS.

       ``(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 this subpart (other than activities 
     assisted under section 665 and subpart 3) in order to enhance 
     the provision of early intervention, educational, related and 
     transitional services to children with disabilities under 
     parts B and C. The plan shall be coordinated with the plan 
     developed pursuant to section 177(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 and 
     Professional Development grants under subpart 1 and for 
     grants under this subpart.
       ``(2) Public comment.--The Secretary shall provide a public 
     comment period of at least 60 days on the plan.
       ``(3) Distribution of funds.--In implementing the plan, the 
     Secretary shall, to the extent appropriate, ensure that funds 
     are awarded to recipients under this subpart, subpart 3, and 
     subpart 4 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 this 
     subpart, subpart 3, and subpart 4, 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) Eligible Applicants.--
       ``(1) In general.--Except as otherwise provided in this 
     subpart, the following entities are eligible to apply for a 
     grant, contract, or cooperative agreement under this subpart:
       ``(A) A State educational agency.
       ``(B) A local educational agency.
       ``(C) A public charter school that is a local educational 
     agency under State law.
       ``(D) An institution of higher education.
       ``(E) Any other public agency.
       ``(F) A private nonprofit organization.
       ``(G) An outlying area.
       ``(H) An Indian tribe or a tribal organization (as defined 
     under section 4 of the Indian Self-Determination and 
     Education Assistance Act).
       ``(I) A for-profit organization.
       ``(2) Special rule.--The Secretary may limit the entities 
     eligible for an award of a grant, contract, or cooperative 
     agreement to 1 or more categories of eligible entities 
     described in paragraph (1).
       ``(c) Special Populations.--
       ``(1) Application requirement.--In making an award of a 
     grant, contract, or cooperative agreement under this subpart, 
     subpart 3, and subpart 4, the Secretary shall, as 
     appropriate, require an applicant to meet the criteria set 
     forth by the Secretary under this subpart and demonstrate how 
     the applicant will address the needs of children with 
     disabilities from minority backgrounds.
       ``(2) Outreach and technical assistance.--Notwithstanding 
     any other provision of this Act, the Secretary shall reserve 
     at least 1 percent of the total amount of funds made 
     available to carry out this subpart, subpart 3, or subpart 4 
     for 1 or both of the following activities:
       ``(A) To provide outreach and technical assistance to 
     Historically Black Colleges and Universities, and to 
     institutions of higher education with minority enrollments of 
     at least 25 percent, to promote the participation of such 
     colleges, universities, and institutions in activities under 
     this subpart.
       ``(B) To enable 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.
       ``(d) Priorities.--The Secretary, in making an award of a 
     grant, contract, or cooperative agreement under this subpart, 
     subpart 3, or subpart 4, may, without regard to the 
     rulemaking procedures under section 553(a) 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 charter schools; or
       ``(J) children who are gifted and talented;
       ``(K) children with disabilities served by local 
     educational agencies that receive payments under title VIII 
     of the Elementary and Secondary Education Act of 1965;
       ``(L) children with disabilities who are homeless children 
     or children with disabilities who are wards of the State;
       ``(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 
     universally designed technologies, assistive technology 
     devices, and assistive technology services to maximize 
     children with disabilities' access to and participation in 
     the general education curriculum;
       ``(7) any activity that is authorized in this subpart or 
     subpart 3; and
       ``(8) projects that provide training in educational 
     advocacy to individuals with responsibility for the needs of 
     wards of the State, including foster parents, grandparents 
     and other relatives acting in the place of a natural or 
     adoptive parent, attorneys for children in foster care, 
     guardians ad litem, court appointed special advocates, 
     judges, education surrogates, and children's caseworkers.
       ``(e) Applicant and Recipient Responsibilities.--
       ``(1) Development and assessment of projects.--The 
     Secretary shall require that an applicant for, and a 
     recipient of, a grant, contract, or cooperative agreement for 
     a project under this subpart, subpart 3, or subpart 4--
       ``(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 this subpart, subpart 3, or subpart 4 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).
       ``(f) Application Management.--
       ``(1) Standing panel.--
       ``(A) In general.--The Secretary shall establish and use a 
     standing panel of experts who are competent, by virtue of 
     their training, expertise, or experience, to evaluate 
     applications under this subpart (other than applications for 
     assistance under section 665), subpart 3, and subpart 4 that, 
     individually, request more than $75,000 per year in Federal 
     financial assistance.
       ``(B) Membership.--The standing panel shall include, at a 
     minimum--
       ``(i) individuals who are representatives of institutions 
     of higher education that plan, develop, and carry out high 
     quality programs of personnel preparation;
       ``(ii) individuals who design and carry out scientifically 
     based research targeted to the improvement of special 
     education programs and services;
       ``(iii) individuals who have recognized experience and 
     knowledge necessary to integrate and apply scientifically 
     based research findings to improve educational and 
     transitional results for children with disabilities;
       ``(iv) individuals who administer programs at the State or 
     local level in which children with disabilities participate;
       ``(v) individuals who prepare parents of children with 
     disabilities to participate in making decisions about the 
     education of their children;
       ``(vi) individuals who establish policies that affect the 
     delivery of services to children with disabilities;
       ``(vii) parents of children with disabilities ages birth 
     through 26 who are benefiting, or have

[[Page 9426]]

     benefited, from coordinated research, personnel preparation, 
     and technical assistance; and
       ``(viii) individuals with disabilities.
       ``(C) Term.--Unless approved by the Secretary due to 
     extenuating circumstances related to shortages of experts in 
     a particular area of expertise or for a specific competition, 
     no individual shall serve on the standing panel for more than 
     3 consecutive years.
       ``(2) Peer review panels for particular competitions.--
       ``(A) Composition.--The Secretary shall ensure that each 
     sub panel selected from the standing panel that reviews 
     applications under this subpart (other than section 665), 
     subpart 3, and subpart 4 includes--
       ``(i) individuals with knowledge and expertise on the 
     issues addressed by the activities authorized by the relevant 
     subpart; and
       ``(ii) to the extent practicable, parents of children with 
     disabilities ages birth through 26, individuals with 
     disabilities, and persons from diverse backgrounds.
       ``(B) Federal employment limitation.--A majority of the 
     individuals on each sub panel that reviews an application 
     under this subpart (other than an application under section 
     665), subpart 3, and subpart 4 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 made available under this subpart, 
     subpart 3, and subpart 4 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 made available to carry out 
     this subpart, subpart 3, or subpart 4 to pay non-Federal 
     entities for administrative support related to management of 
     applications submitted under this subpart.
       ``(4) Availability of certain products.--The Secretary 
     shall ensure that recipients of grants, cooperative 
     agreements, or contracts under this subpart, subpart 3, and 
     subpart 4 make available in formats that are accessible to 
     individuals with disabilities any products developed under 
     such grants, cooperative agreements, or contracts that the 
     recipient is making available to the public.
       ``(g) Program Evaluation.--The Secretary may use funds made 
     available to carry out this subpart, subpart 3, and subpart 4 
     to evaluate activities carried out under this subpart.
       ``(h) Minimum Funding Required.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall ensure that, for each fiscal year, at least the 
     following amounts are provided under this subpart and subpart 
     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 total amount appropriated 
     to carry out this subpart, subpart 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.
       ``(i) 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 this subpart 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. 662. RESEARCH COORDINATION TO IMPROVE RESULTS FOR 
                   CHILDREN WITH DISABILITIES.

       ``The Secretary shall coordinate research carried out under 
     this subpart with research carried out under part E of the 
     Education Sciences Reform Act of 2002.

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

       ``(a) In General.--From amounts made available under 
     section 675, the Secretary, on a competitive basis, shall 
     award grants to, or enter into contracts or cooperative 
     agreements with, eligible entities to provide technical 
     assistance, carry out model demonstration projects, 
     disseminate useful information, and implement activities that 
     are supported by scientifically based research.
       ``(b) Required Activities.--The Secretary shall support 
     activities to improve services provided under this Act, 
     including the practices of professionals and others involved 
     in providing such services to children with disabilities, 
     that promote academic achievement and functional performance 
     to improve educational results and functional outcomes for 
     children with disabilities through--
       ``(1) implementing effective strategies that are conducive 
     to learning and for addressing inappropriate behavior of 
     students with disabilities in schools, including strategies 
     to prevent children with emotional and behavioral problems 
     from developing emotional disturbances that require the 
     provision of special education and related services;
       ``(2) improving the alignment, compatibility, and 
     development of valid and reliable assessment methods, 
     including alternate assessment methods and evaluation 
     methods, for assessing adequately yearly progress as 
     described in section 1111(b)(2) of the Elementary and 
     Secondary Education Act of 1965;
       ``(3) providing information to both regular education 
     teachers and special education teachers to address the 
     different learning styles and disabilities of students;
       ``(4) disseminating information on innovative, effective, 
     and efficient curricula, materials (including those that are 
     universally designed), instructional approaches, and 
     strategies that--
       ``(A) support effective transitions between educational 
     settings or from school to post-school settings;
       ``(B) support effective inclusion of students with 
     disabilities in general education settings, especially 
     students with low-incidence disabilities; and
       ``(C) improve educational and transitional results at all 
     levels of the educational system in which the activities are 
     carried out and, in particular, that improve the progress of 
     children with disabilities, as measured by assessments within 
     the general education curriculum involved; and
       ``(5) demonstrating and applying scientifically-based 
     findings to facilitate systematic changes related to the 
     provision of services to children with disabilities.
       ``(c) Authorized Activities.--Activities that may be 
     carried out under this section include activities to improve 
     services provided under this Act, including the practices of 
     professionals and others involved in providing such services 
     to children with disabilities, that promote increased 
     academic achievement and enhanced functional outcomes for 
     children with disabilities through--
       ``(1) supporting and promoting the coordination of early 
     intervention, education, and transitional services for 
     children with disabilities with services provided by health, 
     rehabilitation, and social service agencies;
       ``(2) promoting improved alignment and compatibility of 
     general and special education reforms concerned with 
     curriculum and instructional reform, and evaluating of such 
     reforms;
       ``(3) enabling professionals, parents of children with 
     disabilities, and other persons, to learn about, and 
     implement, the findings of scientifically based research and 
     effective practices relating to the provision of services to 
     children with disabilities;
       ``(4) 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;
       ``(5) 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;
       ``(6) promoting change through a multi-State or regional 
     framework that benefits States, local educational agencies, 
     and other participants in partnerships that are in the 
     process of achieving systemic change;
       ``(7) 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) to address 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;
       ``(8) demonstrating models of personnel preparation to 
     ensure appropriate placements and services for all students 
     with disabilities and to reduce disproportionality in 
     eligibility, placement, and disciplinary actions for minority 
     and limited English proficient children: and
       ``(9) disseminating information on how to reduce racial and 
     ethnic disproportionalities.
       ``(d) Balance Among Disabilities and Age Ranges.--In 
     carrying out this section, the Secretary shall ensure that 
     there is an appropriate balance across all age ranges and 
     disabilities.
       ``(e) Linking States to Information Sources.--In carrying 
     out this section, the Secretary may support projects that 
     link States to technical assistance resources, including 
     special education and general education resources, and may 
     make research and related products available through 
     libraries, electronic networks, parent training projects, and 
     other information sources.
       ``(f) Applications.--
       ``(1) In general.--An eligible entity that desires to 
     receive a grant, or to 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) Contents.--The Secretary may, as appropriate, require 
     eligible entities to demonstrate that the projects described 
     in their applications are supported by scientifically based 
     research that has been carried out in conjunction with the 
     standards for the conduct and evaluation of all research and 
     development established by the National Center for Education 
     Research under sections 133 and 134 of the Education Sciences 
     Reform Act of 2002.

[[Page 9427]]

       ``(3) Priority.--As appropriate, the Secretary shall give 
     priority to applications that propose to serve teachers and 
     school personnel directly in the school environment or that 
     strengthen State and local agency capacity to improve 
     instructional practices of personnel to improve educational 
     results for children with disabilities in the school 
     environment.

     ``SEC. 664. 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 for 1 or more of the 
     following:
       ``(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, toddlers, or children with disabilities, consistent 
     with the standards 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; Authorized Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support activities to prepare personnel, 
     including activities for the preparation of personnel who 
     will serve children with high-incidence and low-incidence 
     disabilities, consistent with the objectives described in 
     subsection (a).
       ``(2) Authorized activities.--Activities that may be 
     carried out under this subsection include the following:
       ``(A) Supporting collaborative personnel preparation 
     activities undertaken by institutions of higher education, 
     local educational agencies, and other local entities--
       ``(i) to improve and reform their existing programs, to 
     support effective existing programs, to support the 
     development of new programs, and to prepare teachers, 
     principals, administrators, and related services personnel--

       ``(I) to meet the diverse needs of children with 
     disabilities for early intervention, educational, and 
     transitional services; and
       ``(II) to work collaboratively in regular classroom 
     settings; and

       ``(ii) to incorporate best practices and scientifically 
     based research about preparing personnel--

       ``(I) so the personnel will have the knowledge and skills 
     to improve educational results for children with 
     disabilities; and
       ``(II) to implement effective teaching strategies and 
     interventions to prevent the misidentification, 
     overidentification, or underidentification of children as 
     having a disability, especially minority and limited English 
     proficient children.

       ``(B) Developing, evaluating, and disseminating innovative 
     models for the recruitment, induction, retention, and 
     assessment of highly qualified teachers to reduce teachers 
     shortages.
       ``(C) Providing continuous personnel preparation, training, 
     and professional development designed to provide support and 
     ensure retention of 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) Demonstrating models for the preparation of, and 
     interdisciplinary training of, early intervention, special 
     education, and general education personnel, to enable the 
     personnel to acquire the collaboration skills necessary to 
     work within teams and to improve results for children with 
     disabilities, particularly within the general education 
     curriculum.
       ``(F) Promoting effective parental involvement practices to 
     enable the personnel to work with parents and involve parents 
     in the education of such parents' children.
       ``(G) Promoting the transferability, across State and local 
     jurisdictions, of licensure and certification of teachers, 
     principals, and administrators working with such children.
       ``(H) Developing and disseminating models that prepare 
     teachers with strategies, including positive behavioral 
     interventions, for addressing the conduct of children with 
     disabilities that impedes their learning and that of others 
     in the classroom.
       ``(I) Developing and improving programs to enhance the 
     ability of early childhood providers, general education 
     teachers, principals, school administrators, related services 
     personnel, and school board members to improve results for 
     children with disabilities.
       ``(J) 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.
       ``(K) Preparing personnel to work 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.
       ``(L) Developing, evaluating, and disseminating innovative 
     models for the recruitment, induction, retention, and 
     assessment of new, highly qualified teachers, especially from 
     groups that are underrepresented in the teaching profession, 
     including individuals with disabilities.
       ``(M) Developing and improving programs to train special 
     education teachers to develop an expertise in autism spectrum 
     disorders.
       ``(c) Low Incidence Disabilities; Authorized Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support activities, consistent with the 
     objectives described in subsection (a), that benefit children 
     with low incidence disabilities.
       ``(2) Authorized activities.--Activities that may be 
     carried out under this subsection include activities such as 
     the following:
       ``(A) Preparing persons who--
       ``(i) have prior training in educational and other related 
     service fields; and
       ``(ii) are studying to obtain degrees, certificates, or 
     licensure that will enable 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 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.
       ``(3) Definition.--As used in this section, the term `low 
     incidence disability' means--
       ``(A) a visual or hearing impairment, or simultaneous 
     visual and hearing impairments;
       ``(B) a significant cognitive impairment; or
       ``(C) any impairment for which a small number of personnel 
     with highly specialized skills and knowledge are needed in 
     order for children with that impairment to receive early 
     intervention services or a free appropriate public education.
       ``(4) Selection of recipients.--In selecting recipients 
     under this subsection, the Secretary may give preference to 
     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 with an 
     eligible entity and a local educational agency that promotes 
     recruitment and subsequent retention of highly qualified 
     personnel to serve children with disabilities.
       ``(5) Preparation in use of braille.--The Secretary shall 
     ensure that all recipients of assistance under this 
     subsection who will use that assistance to prepare personnel 
     to provide services to visually impaired or blind children 
     that can appropriately be provided in Braille will prepare 
     those individuals to provide those services in Braille.
       ``(d) Leadership Preparation; Authorized Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support leadership preparation activities 
     that are consistent with the objectives described in 
     subsection (a).
       ``(2) Authorized activities.--Activities that may be 
     carried out under this subsection include activities such as 
     the following:

[[Page 9428]]

       ``(A) Preparing personnel at the graduate, doctoral, and 
     postdoctoral levels of training to administer, enhance, or 
     provide services to improve results for children with 
     disabilities.
       ``(B) Providing interdisciplinary training for various 
     types of leadership personnel, including teacher preparation 
     faculty, administrators, researchers, supervisors, 
     principals, related services personnel, and other persons 
     whose work affects early intervention, educational, and 
     transitional services for children with disabilities.
       ``(e) Enhanced Support and Training for Beginning Special 
     Educators; Authorized Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support personnel 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--
       ``(A) enhancing and restructuring an existing program or 
     developing a preservice teacher education program, to prepare 
     special education teachers, at colleges or departments of 
     education within the institution of higher education, by 
     incorporating an additional 5th year clinical learning 
     opportunity, field experience, or supervised practicum into a 
     program of preparation and coursework for special education 
     teachers; or
       ``(B) Creating or supporting professional development 
     schools that provide--
       ``(i) high quality mentoring and induction opportunities 
     with ongoing support for beginning special education 
     teachers; or
       ``(ii) inservice professional development to veteran 
     special education teachers through the ongoing exchange of 
     information and instructional strategies.
       ``(3) Eligible partnerships.--Eligible recipients of 
     assistance under this subsection are partnerships--
       ``(A) that shall consist of--
       ``(i) 1 or more institutions of higher education with 
     special education personnel preparation programs; and
       ``(ii) 1 or more local educational agencies; and
       ``(iii) in the case of activities assisted under paragraph 
     (2)(B), an elementary school or secondary school; and
       ``(B) that may include other entities eligible for 
     assistance under this part, such as a State educational 
     agency.
       ``(4) Priority.--In awarding grants or entering into 
     contracts or cooperative agreements under this subsection, 
     the Secretary shall give priority to partnerships that 
     include local educational agencies that serve--
       ``(A) high numbers or percentages of low-income students; 
     or
       ``(B) schools that have failed to make adequate yearly 
     progress toward enabling children with disabilities to meet 
     academic achievement standards.
       ``(f) Training To Support General Educators; Authorized 
     Activities.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall support personnel 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--
       ``(A) high quality professional development for general 
     educators that develops the knowledge and skills, and 
     enhances the ability, of general educators to--
       ``(i) use classroom-based techniques to identify students 
     who may be eligible for special education services, and 
     deliver instruction in a way that meets the individualized 
     needs of children with disabilities through appropriate 
     supports, accommodations, and curriculum modifications;
       ``(ii) use classroom-based techniques, such as 
     scientifically based reading instruction;
       ``(iii) work collaboratively with special education 
     teachers and related services personnel;
       ``(iv) implement strategies, such as positive behavioral 
     interventions--

       ``(I) to address the behavior of children with disabilities 
     that impedes the learning of such children and others; or
       ``(II) to prevent children from being misidentified as 
     children with disabilities;

       ``(v) prepare children with disabilities to participate in 
     statewide assessments (with or without accommodations) and 
     alternate assessments, as appropriate;
       ``(vi) develop effective practices for ensuring that all 
     children with disabilities are a part of all accountability 
     systems under the Elementary and Secondary Education Act of 
     1965;
       ``(vii) work with and involve parents of children with 
     disabilities in their child's education;
       ``(viii) understand how to effectively construct IEPs, 
     participate in IEP meetings, and implement IEPs; and
       ``(ix) in the case of principals and superintendents, be 
     instructional leaders and promote improved collaboration 
     between general educators, special education teachers, and 
     related services personnel; and
       ``(B) release and planning time for the activities 
     described in this subsection.
       ``(3) Eligible partnerships.--Eligible recipients of 
     assistance under this subsection are partnerships--
       ``(A) that consist of--
       ``(i) 1 or more institutions of higher education with 
     special education personnel preparation programs; and
       ``(ii) 1 or more local educational agencies; and
       ``(B) that may include other entities eligible for 
     assistance under this part, such as a State educational 
     agency.
       ``(g) Applications.--
       ``(1) In general.--Any eligible entity that desires to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under this section shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require.
       ``(2) Identified state needs.--
       ``(A) Requirement to address identified needs.--Any 
     application under subsection (b), (c), (d), (e), or (f) shall 
     include information demonstrating to the satisfaction of the 
     Secretary that the activities described in the application 
     will address needs identified by the State or States the 
     applicant proposes to serve, consistent with the needs 
     identified in the State plan described in section 653(a)(2).
       ``(B) Cooperation with state educational agencies.--Any 
     applicant that is not a local educational agency or a State 
     educational agency shall include in the application 
     information demonstrating to the satisfaction of the 
     Secretary that the applicant and 1 or more State educational 
     agencies or local educational agencies have engaged in a 
     cooperative effort to carry out and monitor the project to be 
     assisted.
       ``(3) Acceptance by states of personnel preparation 
     requirements.--The Secretary may require applicants to 
     provide 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 for serving children with disabilities or serving 
     infants and toddlers with disabilities.
       ``(h) Selection of Recipients.--
       ``(1) Impact of project.--In selecting award recipients 
     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 applicants to meet state and 
     professional standards.--The Secretary shall make grants and 
     enter into contracts and cooperative agreements under this 
     section only to eligible applicants that meet State and 
     professionally recognized standards for the preparation of 
     special education and related services personnel, if the 
     purpose of the project is to assist personnel in obtaining 
     degrees.
       ``(3) Preferences.--In selecting recipients under this 
     section, the Secretary may give preference to 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.
       ``(i) Service Obligation.--Each application for funds under 
     subsections (b), (c), (d), and (e) shall include an assurance 
     that the applicant will ensure that individuals who receive 
     assistance under the proposed project will subsequently 
     provide special education and related services to children 
     with disabilities for a period of 1 year 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.
       ``(j) Scholarships.--The Secretary may include funds for 
     scholarships, with necessary stipends and allowances, in 
     awards under subsections (b), (c), (d), and (e).
       ``(k) 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 2004 
     through 2009.

     ``SEC. 665. STUDIES AND EVALUATIONS.

       ``(a) Studies and Evaluations.--
       ``(1) Delegation.--The Secretary shall delegate to the 
     Director of the Institute for 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 on a 
     competitive basis, assess the progress in the implementation 
     of this Act, including the effectiveness of State and local 
     efforts to provide--
       ``(A) a free appropriate public education to children with 
     disabilities; and
       ``(B) early intervention services to infants and toddlers 
     with disabilities, and infants and toddlers who would be at 
     risk of having substantial developmental delays if early 
     intervention services were not provided to them.
       ``(b) National Assessment.--
       ``(1) In general.--The Secretary shall carry out a national 
     assessment of activities carried out with Federal funds under 
     this Act in order--
       ``(A) to determine the effectiveness of this Act in 
     achieving its purposes;
       ``(B) to provide timely information to the President, 
     Congress, the States, local educational agencies, and the 
     public on how to implement this Act 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 Act more effectively.
       ``(2) Consultation.--The Secretary shall plan, review, and 
     conduct the national assessment under this subsection in 
     consultation with researchers, State practitioners, local 
     practitioners, parents of children with disabilities, and 
     other appropriate individuals.
       ``(3) Scope of assessment.--The national assessment shall 
     assess the--
       ``(A) implementation of programs assisted under this Act 
     and the impact of those programs

[[Page 9429]]

     on addressing the developmental, educational, and 
     transitional needs of, and improving the academic achievement 
     and functional outcomes of, children with disabilities to 
     enable the children to reach challenging developmental goals 
     and challenging State academic content standards based on 
     State academic assessments, including alternate assessments;
       ``(B) types of programs and services that have demonstrated 
     the greatest likelihood of helping students reach the 
     challenging State academic content standards and 
     developmental goals;
       ``(C) implementation of the personnel preparation and 
     professional development activities assisted under this Act 
     and the impact on instruction, student academic achievement, 
     and teacher qualifications to enhance the ability of special 
     education teachers and regular education teachers to improve 
     results for children with disabilities; and
       ``(D) effectiveness of schools, local educational agencies, 
     States, and other recipients of assistance under this Act, in 
     achieving the purposes of this Act in--
       ``(i) improving the academic achievement of children with 
     disabilities and their performance on regular statewide 
     assessments, and the performance of children with 
     disabilities on alternate assessments;
       ``(ii) improving the participation rate 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) coordinating services provided under this Act with 
     each other, with other educational and pupil services 
     (including preschool services), and with health and social 
     services funded from other sources;
       ``(viii) improving the participation of parents of children 
     with disabilities in the education of their children;
       ``(ix) resolving disagreements between education personnel 
     and parents through alternative dispute resolution activities 
     including mediation; and
       ``(x) reducing the misidentification of children, 
     especially minority and limited English proficient children.
       ``(4) Interim and final reports.--The Secretary shall 
     submit to the President and Congress--
       ``(A) an interim report that summarizes the preliminary 
     findings of the national 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 the 
     Individuals with Disabilities Education Improvement Act of 
     2004.
       ``(c) Study on Ensuring Accountability for Students Who Are 
     Held to Alternative Achivement 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 alternate 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 section 662;
       ``(2) analyzes and summarizes the data reported by the 
     States and the Secretary of the Interior under section 618;
       ``(3) summarizes the studies and evaluations conducted 
     under this section and the timeline for their completion;
       ``(4) describes the extent and progress of the national 
     assessment; and
       ``(5) describes the findings and determinations resulting 
     from reviews of State implementation of this Act.
       ``(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 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 of children with disabilities served under this Act, 
     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 Act, using a national, representative 
     sample of distinct age cohorts and disability categories; and
       ``(B) examine educational results, transition services, 
     postsecondary placement, and employment status of individuals 
     with disabilities, 18 through 21 years of age, who are 
     receiving or have received special education and related 
     services under this Act; and
       ``(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(b)(1) and on the effects of those 
     policies.
       ``(g) Reservation for Studies and Evaluations.--
       ``(1) In general.--Except as provided in paragraph (2) and 
     notwithstanding any other provision of this Act, the 
     Secretary may reserve not more than \1/2\ of 1 percent of the 
     amount appropriated under parts B and C for each fiscal year 
     to carry out this section, of which not more than $3,000,000 
     shall be available to carry out subsection (c).
       ``(2) Maximum amount.--The maximum amount the Secretary may 
     reserve under paragraph (1) for any fiscal year is 
     $40,000,000, increased by the cumulative rate of inflation 
     since fiscal year 2003.

``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 on their rights, responsibilities, 
     and protections under this Act, in order to develop the 
     skills necessary to cooperatively and effectively participate 
     in planning and decision making relating to early 
     intervention, educational, and transitional services;
       ``(2) parents, teachers, administrators, early intervention 
     personnel, related services personnel, and transition 
     personnel receive coordinated and accessible technical 
     assistance and information to assist them in improving early 
     intervention, educational, and transitional services and 
     results for children with disabilities and their families; 
     and
       ``(3) appropriate technology and media are researched, 
     developed, and demonstrated, to improve and implement early 
     intervention, educational, and transitional services and 
     results for children with disabilities and their families.

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

       ``(a) Program Authorized.--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.
       ``(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) 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 options, programs, services, technologies, and 
     research based practices and interventions, and resources 
     available to assist children with disabilities and their 
     families in school and at home;
       ``(E) understand the provisions of this Act for the 
     education of, and the provision of early

[[Page 9430]]

     intervention services to, children with disabilities; and
       ``(F) participate in school reform activities;
       ``(4) 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;
       ``(5) 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);
       ``(6) assist parents and students with disabilities to 
     understand their rights and responsibilities under this Act, 
     including those under section 615(m) on the student's 
     reaching the age of majority;
       ``(7) assist parents to understand the availability of, and 
     how to effectively use, procedural safeguards under this Act;
       ``(8) assist parents in understanding, preparing for, and 
     participating in, the process described in section 
     615(f)(1)(B);
       ``(9) establish cooperative partnerships with community 
     parent resource centers funded under section 672;
       ``(10) network with appropriate clearinghouses, including 
     organizations conducting national dissemination activities 
     under section 663, 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
       ``(11) 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.
       ``(e) Distribution of Funds.--
       ``(1) In general.--The Secretary shall--
       ``(A) make at least 1 award to a parent organization in 
     each State for a parent training and information center which 
     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 at least once in each calendar quarter to review the 
     activities for which the award was made.
       ``(2) Continuation award.--When an 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 
     organization during the preceding fiscal year.
       ``(g) Definition of Parent Organization.--As used in this 
     section, the term `parent organization' means a private 
     nonprofit organization (other than an institution of higher 
     education) that--
       ``(1) has a board of directors--
       ``(A) the majority of whom are parents of children with 
     disabilities ages birth through 26;
       ``(B) that includes--
       ``(i) individuals working in the fields of special 
     education, related services, and early intervention; and
       ``(ii) individuals with disabilities;
       ``(C) the parent and professional members of which are 
     broadly representative of the population to be served; and
       ``(2) has as its mission serving families of children and 
     youth with disabilities who--
       ``(A) are ages birth through 26; and
       ``(B) have the full range of disabilities described in 
     section 602(3).

     ``SEC. 672. COMMUNITY PARENT RESOURCE CENTERS.

       ``(a) In General.--The Secretary may award grants to, and 
     enter into contracts and cooperative agreements with, local 
     parent organizations to support parent training and 
     information centers that will help ensure that underserved 
     parents of children with disabilities, including low income 
     parents, parents of children with limited English 
     proficiency, and parents with disabilities, have the training 
     and information the parents need to enable the parents to 
     participate effectively in helping their children with 
     disabilities--
       ``(1) to meet developmental and functional goals, and 
     challenging academic achievement goals that have been 
     established for all children; and
       ``(2) to be prepared to lead productive independent adult 
     lives, to the maximum extent possible.
       ``(b) Required Activities.--Each 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.
       ``(c) Definition.--As used in this section, the term `local 
     parent organization' means a parent organization, as defined 
     in section 671(g), that--
       ``(1) 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
       ``(2) has as its mission serving parents of children with 
     disabilities who--
       ``(A) are ages birth through 26; and
       ``(B) have the full range of disabilities described in 
     section 602(3).

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

       ``(a) In General.--The Secretary may make an award to 1 
     parent organization (as defined in section 671(g)) that 
     receives assistance under section 671 to enable the parent 
     organization to provide technical assistance for developing, 
     assisting, and coordinating parent training and information 
     programs carried out by parent training and information 
     centers receiving assistance under sections 671 and 672.
       ``(b) Authorized Activities.--The Secretary may provide 
     technical assistance to a parent training and information 
     center under this section in areas such as--
       ``(1) effective national coordination of parent training 
     efforts, which includes encouraging collaborative efforts 
     among award recipients under sections 671 and 672;
       ``(2) dissemination of information, scientifically based 
     research, and research based practices and interventions;
       ``(3) promotion of the use of technology, including 
     universally designed technologies, assistive technology 
     devices, and assistive technology services;
       ``(4) reaching underserved populations;
       ``(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) Regional Parent Centers.--The recipient of the award 
     described in section 673(a) shall establish no fewer than 4 
     regional centers from the parent training and information 
     centers and community parent resource centers receiving 
     assistance under sections 671 and 672 for the purpose of 
     carrying out the authorized activities described in 
     subsection (b). These regional centers shall be selected on 
     the basis of the center's--
       ``(1) willingness to be a regional parent center;
       ``(2) demonstrated expertise in the delivery of required 
     parent training and information center activities described 
     in section 671(b);
       ``(3) demonstrated capacity to deliver the authorized 
     activities described in subsection (b);
       ``(4) history of collaboration with other parent training 
     and information centers, community parent resource centers, 
     regional resource centers, clearinghouses, and other 
     projects; and
       ``(5) geographic location.
       ``(d) Collaboration With the Resource Centers.--The 
     recipient of the award described in subsection (a), in 
     conjunction with the regional parent centers described in 
     subsection (c), shall develop collaborative agreements with 
     the geographically appropriate Regional Resource Center to 
     further parent and professional collaboration.

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

       ``(a) 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).
       ``(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:

[[Page 9431]]

       ``(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; Optional Activities.--
       ``(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 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 only 
     be provided 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.--Any eligible entity that wishes to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under this section shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for each of the fiscal years 2004 
     through 2009.

     ``SEC. 675. ACCESSIBILITY OF INSTRUCTIONAL MATERIALS.

       ``(a) Instructional Materials Accessibility Standard.--
       ``(1) Accessibility standard.--Not later than 180 days 
     after the date of enactment of the Individuals with 
     Disabilities Education Improvement Act of 2004, the Secretary 
     shall, by rulemaking, promulgate an Instructional Materials 
     Accessibility Standard which shall constitute the technical 
     standards to be used by publishers for the preparation of 
     electronic files for States under section 612(a)(22).
       ``(2) Relationship to other laws.--For purposes of this 
     section:
       ``(A) Authorized entity.--Notwithstanding the provisions of 
     section 106 of title 17, United States Code, it is not an 
     infringement of copyright for an authorized entity to 
     reproduce or to distribute copies of the electronic files 
     described in section 612(a)(22)(B), containing the contents 
     of the print instructional materials using the Instructional 
     Materials Accessibility Standard, if such copies are used 
     solely for reproduction or distribution of the contents of 
     such print instructional materials in specialized formats 
     designed exclusively for use by the blind or other persons 
     with print disabilities.
       ``(B) Publisher.--Notwithstanding the provisions of section 
     of 106 of title 17, United States Code, it is not an 
     infringement of copyright for a publisher to create and 
     distribute copies of the electronic files described in 
     section 612(a)(22)(B), containing the contents of the print 
     instructional materials using the Instructional Material 
     Accessibility Standard, if such copies are used solely for 
     reproduction or distribution of the contents of such print 
     instructional materials in specialized formats designed 
     exclusively for use by the blind or other persons with print 
     disabilities.
       ``(C) Copies.--Copies of the electronic files containing 
     the contents of the print instructional materials using the 
     Instructional Materials Accessibility Standard shall be made 
     in compliance with the provisions of section 121(b) of title 
     17, United States Code, regarding the reproduction and 
     distribution of copyrighted print instructional materials in 
     specialized formats.
       ``(3) Definitions.--In this section:
       ``(A) Instructional materials accessibility standard.--The 
     term `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, and for the purposes of this section, 
     includes synthesized speech, digital audio, and large print.
       ``(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 pupils in the classroom.
       ``(E) Authorized entity.--The term `authorized entity' has 
     the meaning given the term in section 121(c)(1) of title 17, 
     United States Code.
       ``(4) Applicability.--This section shall apply to print 
     instructional materials published and copyrighted after the 
     date on which the final rule establishing the Instructional 
     Materials Accessibility Standard is published in the Federal 
     Register.
       ``(b) National Instructional Materials Access Center.--
       ``(1) Establishment.--Not later than 2 years after the date 
     of enactment of the Individuals with Disabilities Education 
     Improvement Act of 2004, the Secretary shall establish a 
     center, to be known as the National Instructional Materials 
     Access Center, which shall coordinate the acquisition and 
     distribution of print instructional materials prepared in the 
     Instructional Materials Accessibility Standard described in 
     subsection (a)(2).
       ``(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 made available under section 
     612(a)(22) and section 613(a)(6).
       ``(B) To provide authorized entities with access to such 
     print instructional materials, free of charge, 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 and otherwise to 
     administratively assure compliance with title 17, United 
     States Code, with respect to the print instructional 
     materials provided under section 612(a)(22) and section 
     613(a)(6).
       ``(3) Contract authorized.--To assist in carrying out 
     paragraph (1), the Secretary shall award, on a competitive 
     basis, a contract renewable on a biennial basis with a 
     nonprofit organization, or with a consortium of such 
     organizations, determined by the Secretary to be best 
     qualified to carry out the responsibilities described in 
     paragraph (2). The contractor shall report directly to the 
     Assistant Secretary for Special Education and Rehabilitative 
     Services.
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     such sums as may be necessary.

     ``SEC. 676. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out 
     sections 671, 672, 673, and 663 such sums as may be necessary 
     for each of the fiscal years 2004 through 2009.

   ``Subpart 4--Interim Alternative Educational Settings, Behavioral 
                Supports, and Whole School Interventions

     ``SEC. 681. PURPOSE.

       ``The purpose of this subpart is to authorize resources to 
     foster a safe learning environment that supports academic 
     achievement for all students by improving the quality of 
     interim alternative educational settings, providing more 
     behavioral supports in schools, and supporting whole school 
     interventions.

     ``SEC. 682. DEFINITION OF ELIGIBLE ENTITY.

       ``In this subpart, 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 mental health provider; or
       ``(E) an educational service agency.

     ``SEC. 683. PROGRAM AUTHORIZED.

       ``The Secretary is authorized to award grants, on a 
     competitive basis, to eligible entities to enable the 
     eligible entities--
       ``(1) to establish or expand behavioral supports and whole 
     school behavioral interventions by providing for effective, 
     research-based practices, including--
       ``(A) comprehensive, early screening efforts for students 
     at risk for emotional and behavioral difficulties;
       ``(B) training for school staff on early identification, 
     prereferral, and referral procedures;
       ``(C) training for administrators, teachers, related 
     services personnel, behavioral specialists, and other school 
     staff in whole school positive behavioral interventions and 
     supports, behavioral intervention planning, and classroom and 
     student management techniques;
       ``(D) 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;
       ``(E) developing or implementing specific curricula, 
     programs, or interventions aimed at addressing behavioral 
     problems;

[[Page 9432]]

       ``(F) stronger linkages between school-based services and 
     community-based resources, such as community mental health 
     and primary care providers; or
       ``(G) 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);
       ``(B) attracting and retaining a high quality, diverse 
     staff;
       ``(C) providing for on-site counseling services;
       ``(D) using 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.

     ``SEC. 684. PROGRAM EVALUATIONS.

       ``(a) Report and Evaluation.--Each eligible entity 
     receiving a grant under this subpart shall prepare and submit 
     annually to the Secretary a report on the outcomes of the 
     activities assisted under the grant.
       ``(b) Best Practices on Website.--The Secretary shall make 
     available on the Department's website information for 
     parents, teachers, and school administrators on best 
     practices for interim alternative educational settings, 
     behavior supports, and whole school intervention.

     ``SEC. 685. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subpart $50,000,000 for fiscal year 2004 and such sums as may 
     be necessary for each of the 5 succeeding fiscal years.''.

         TITLE II--AMENDMENTS TO THE REHABILITATION ACT OF 1973

     SEC. 201. FINDINGS.

       Section 2(a) of the Rehabilitation Act of 1973 (29 U.S.C. 
     701(a)) is amended--
       (1) in paragraph (5), by striking ``and'' at the end;
       (2) in paragraph (6), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(7) there is a substantial need to improve and expand 
     services for students with disabilities under this Act.''.

     SEC. 202. DEFINITIONS.

       Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 705) 
     is amended--
       (1) by redesignating paragraphs (35) through (39) as 
     paragraphs (36), (37), (38), (40), and (41), respectively;
       (2) in subparagraph (A)(ii) of paragraph (36) (as 
     redesignated in paragraph (1)), by striking ``paragraph 
     (36)(C)'' and inserting ``paragraph (37)(C)'';
       (3) by inserting after paragraph (34) the following:
       ``(35)(A) The term `student with a disability' means an 
     individual with a disability who--
       ``(i) is not younger than 14 and not older than 21;
       ``(ii) has been determined to be eligible under section 
     102(a) for assistance under this title; and
       ``(iii)(I) is eligible for, and is receiving, special 
     education under part B of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1411 et seq.); or
       ``(II) is an individual with a disability, for purposes of 
     section 504.
       ``(B) The term `students with disabilities' means more than 
     1 student with a disability.''; and
       (4) by inserting after paragraph (38) the following:
       ``(39) The term `transition services expansion year' 
     means--
       ``(A) the first fiscal year for which the amount 
     appropriated under section 100(b) exceeds the amount 
     appropriated under section 100(b) for fiscal year 2004 by not 
     less than $100,000,000; and
       ``(B) each fiscal year subsequent to that first fiscal 
     year.''.

     SEC. 203. STATE PLAN.

       (a) Assessment and Strategies.--Section 101(a)(15) of the 
     Rehabilitation Act of 1973 (29 U.S.C. 721(a)(15)) is 
     amended--
       (1) in subparagraph (A)(i)--
       (A) in subclause (II), by striking ``and'' at the end;
       (B) in subclause (III), by adding ``and'' at the end; and
       (C) by adding at the end the following:

       ``(IV) in a transition services expansion year, students 
     with disabilities, including their need for transition 
     services;''; and

       (2) in subparagraph (D)--
       (A) by redesignating clauses (iii), (iv), and (v) as 
     clauses (iv), (v), and (vi), respectively; and
       (B) by inserting after clause (ii) the following:
       ``(iii) in a transition services expansion year, the 
     methods to be used to improve and expand vocational 
     rehabilitation services for students with disabilities, 
     including the coordination of services designed to facilitate 
     the transition of such students from the receipt of 
     educational services in school to the receipt of vocational 
     rehabilitation services under this title or to postsecondary 
     education or employment;''.
       (b) Services for Students With Disabilities.--Section 
     101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a)) 
     is amended by adding at the end the following:
       ``(25) Services for students with disabilities.--The State 
     plan for a transition services expansion year shall provide 
     an assurance satisfactory to the Secretary that the State--
       ``(A) has developed and implemented strategies to address 
     the needs identified in the assessment described in paragraph 
     (15), and achieve the goals and priorities identified by the 
     State, to improve and expand vocational rehabilitation 
     services for students with disabilities on a statewide basis 
     in accordance with paragraph (15); and
       ``(B) from funds reserved under section 110A, shall carry 
     out programs or activities designed to improve and expand 
     vocational rehabilitation services for students with 
     disabilities that--
       ``(i) facilitate the transition of the students with 
     disabilities from the receipt of educational services in 
     school, to the receipt of vocational rehabilitation services 
     under this title, including, at a minimum, those services 
     specified in the interagency agreement required in paragraph 
     (11)(D);
       ``(ii) improve the achievement of post-school goals of 
     students with disabilities, including improving the 
     achievement through participation (as appropriate when 
     vocational goals are discussed) in meetings regarding 
     individualized education programs developed under section 614 
     of the Individuals with Disabilities Education Act (20 U.S.C. 
     1414);
       ``(iii) provide vocational guidance, career exploration 
     services, and job search skills and strategies and technical 
     assistance to students with disabilities;
       ``(iv) support the provision of training and technical 
     assistance to State and local educational agency and 
     designated State agency personnel responsible for the 
     planning and provision of services to students with 
     disabilities; and
       ``(v) support outreach activities to students with 
     disabilities who are eligible for, and need, services under 
     this title.''.

     SEC. 204. SCOPE OF SERVICES.

       Section 103 of the Rehabilitation Act of 1973 (29 U.S.C. 
     723) is amended--
       (1) in subsection (a), by striking paragraph (15) and 
     inserting the following:
       ``(15) transition services for students with disabilities, 
     that facilitate the achievement of the employment outcome 
     identified in the individualized plan for employment, 
     including, in a transition services expansion year, services 
     described in clauses (i) through (iii) of section 
     101(a)(25)(B);''; and
       (2) in subsection (b), by striking paragraph (6) and 
     inserting the following:
       ``(6)(A)(i) Consultation and technical assistance services 
     to assist State and local educational agencies in planning 
     for the transition of students with disabilities from school 
     to post-school activities, including employment.
       ``(ii) In a transition services expansion year, training 
     and technical assistance described in section 
     101(a)(25)(B)(iv).
       ``(B) In a transition services expansion year, services for 
     groups of individuals with disabilities who meet the 
     requirements of clauses (i) and (iii) of section 7(35)(A), 
     including services described in clauses (i), (ii), (iii), and 
     (v) of section 101(a)(25)(B), to assist in the transition 
     from school to post-school activities.''.

     SEC. 205. STANDARDS AND INDICATORS.

       Section 106(a) of the Rehabilitation Act of 1973 (29 U.S.C. 
     726(a)) is amended by striking paragraph (1)(C) and all that 
     follows through paragraph (2) and inserting the following:
       ``(2) Measures.--The standards and indicators shall include 
     outcome and related measures of program performance that--
       ``(A) facilitate the accomplishment of the purpose and 
     policy of this title;
       ``(B) to the maximum extent practicable, are consistent 
     with the core indicators of performance, and corresponding 
     State adjusted levels of performance, established under 
     section 136(b) of the Workforce Investment Act of 1998 (29 
     U.S.C. 2871(b)); and
       ``(C) include measures of the program's performance with 
     respect to the transition to post-school vocational 
     activities, and achievement of the post-school vocational 
     goals, of students with disabilities served under the 
     program.''.

     SEC. 206. RESERVATION FOR EXPANDED TRANSITION SERVICES.

       The Rehabilitation Act of 1973 is amended by inserting 
     after section 110 (29 U.S.C. 730) the following:

     ``SEC. 110A. RESERVATION FOR EXPANDED TRANSITION SERVICES.

       ``(a) Reservation.--From the State allotment under section 
     110 in a transition services expansion year, each State shall 
     reserve an amount calculated by the Commissioner under 
     subsection (b) to carry out programs and activities under 
     sections 101(a)(25)(B) and 103(b)(6).
       ``(b) Calculation.--The Commissioner shall calculate the 
     amount to be reserved for such programs and activities for a 
     fiscal year by each State by multiplying $50,000,000 by the 
     percentage determined by dividing--
       ``(1) the amount allotted to that State under section 110 
     for the prior fiscal year; by
       ``(2) the total amount allotted to all States under section 
     110 for that prior fiscal year.''.

[[Page 9433]]



     SEC. 207. CONFORMING AMENDMENT.

       Section 1(b) of the Rehabilitation Act of 1973 is amended 
     by inserting after the item relating to section 110 the 
     following:

``Sec. 110A. Reservation for expanded transition services.''.

       TITLE III--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

     SEC. 301. 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.
       ``(b) Mission.--The mission of the National Center for 
     Special Education Research (in this part referred to as 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; 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 and toddlers;
       ``(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;
       ``(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 as a method 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; and
       ``(16) address the unique needs of children with 
     significant cognitive disabilities.
       ``(b) Standards.--The Commissioner of Special Education 
     Research 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 conjunction with the standards for 
     the conduct and evaluation of all research and development 
     established by the National Center for Education Research; 
     and
       ``(3) are objective, secular, neutral, and nonideological, 
     and are free of partisan political influence, and racial, 
     cultural, gender, regional, or disability bias.
       ``(c) Plan.--The Commissioner of Special Education Research 
     shall propose to the Director a research plan, developed in 
     collaboration with the 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 purpose 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;
       ``(6) is coordinated with the comprehensive plan developed 
     under section 661 of the Individuals with Disabilities 
     Education Act; and
       ``(7) provides that the research conducted under part D of 
     the Individuals with Disabilities Education Act is relevant 
     to special education practice and policy.
       ``(d) Grants, Contracts, and Cooperative Agreements.--In 
     carrying out the duties under this section, the Director may 
     award grants to, or enter into contracts or cooperative 
     agreements with, eligible entities.
       ``(e) Applications.--An eligible entity that wishes to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under this part shall submit an application to the 
     Director at such time, in such manner, and containing such 
     information as the Director may require.
       ``(f) 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.
       ``(g) 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 2004 
     through 2009.''.
       (b) Conforming Amendments.--
       (1) 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) is amended by inserting ``special education 
     experts,'' after ``early childhood experts,''.
       (2) 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''.
       (c) Transition Provisions.--
       (1) Orderly transition.--Notwithstanding any other 
     provision of law, the Secretary of Education shall take such 
     steps as are necessary to provide for the orderly transition 
     to, and implementation of, part E of the Education Science 
     Reform Act of 2002, as enacted by subsection (a), from 
     research activities carried out under section 672 of the 
     Individuals with Disabilities Education Act (as such section 
     was in effect on the day before the date of enactment of this 
     Act).
       (2) Continuation of awards.--The Secretary of Education 
     shall continue research awards made under section 672 of the 
     Individuals with Disabilities Education Act (as such section 
     was in effect on the day before the date of enactment of this 
     Act) that are in effect on the day before the date of 
     enactment of this Act in accordance with the terms of those 
     awards.
       (d) Effective Dates.--Notwithstanding any other provision 
     of law--
       (1) the amendments made by subsections (a) and (b) of this 
     section shall take effect on October 1, 2004; and
       (2) section 672 of the Individuals with Disabilities 
     Education Act (as such section was in effect on the day 
     before the date of enactment of

[[Page 9434]]

     this Act) shall remain in effect through September 30, 2004.

     SEC. 302. 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. 303. REGIONAL ADVISORY COMMITTEES.

       Section 206(d)(3) of the Education Sciences Reform Act of 
     2002 (20 U.S.C. 9605(d)(3)) is amended by striking 
     ``Academy'' and inserting ``Institute''.

   TITLE IV--COMMISSION ON UNIVERSAL DESIGN AND THE ACCESSIBILITY OF 
                 CURRICULUM AND INSTRUCTIONAL MATERIALS

     SEC. 401. COMMISSION ON UNIVERSAL DESIGN AND THE 
                   ACCESSIBILITY OF CURRICULUM AND INSTRUCTIONAL 
                   MATERIALS.

       (a) Establishment and Purpose.--
       (1) Establishment.--There is established a Commission 
     (hereafter in this section referred to as the ``Commission'') 
     to study, evaluate, and make appropriate recommendations to 
     the Congress and to the Secretary on universal design and 
     accessibility of curriculum and instructional materials for 
     use by all children, with a particular focus on children with 
     disabilities, in elementary schools and secondary schools.
       (2) Purpose.--The purpose of the Commission is--
       (A) to survey the issues related to improving access to 
     curriculum and instructional materials for children with 
     disabilities, with and without assistive technologies;
       (B) to study the benefits, current or potential costs, and 
     challenges of developing and implementing a standard 
     definition of the term universal design as a means to achieve 
     accessibility of curriculum and instructional materials, and 
     as the Commission determines necessary, to recommend a 
     definition for the term universal design, or other terms, 
     taking into consideration educational objectives, investment 
     of resources, state of technology, and effect on development 
     of curriculum and instructional materials;
       (C) to examine issues related to the need for and current 
     availability and accessibility of curriculum and 
     instructional materials for use in elementary schools and 
     secondary schools by children with disabilities, gaps in or 
     conflicts among relevant technical standards, educational 
     quality, availability of instructional materials, technical 
     standards, intellectual property rights, and the economic and 
     technical feasibility of implementing any recommended 
     definitions; and
       (D) to provide the Congress and the Secretary, not later 
     than 24 months after the date of enactment of this Act, the 
     report described in subsection (d).
       (b) Membership.--
       (1) Composition.--The Commission shall be composed of 21 
     members, of which--
       (A) 3 members shall be appointed by the Majority Leader of 
     the Senate;
       (B) 2 members shall be appointed by the Minority Leader of 
     the Senate;
       (C) 3 members shall be appointed by the Speaker of the 
     House of Representatives;
       (D) 2 members shall be appointed by the Minority Leader of 
     the House;
       (E) 8 members shall be appointed by the Secretary including 
     representatives of States, local educational agencies, 
     publishers of instructional material, individuals with 
     disabilities, technical standard setting bodies, and 
     authorized entities as defined in section 121(c)(1) of title 
     17, United States Code; and
       (F) 3 members shall be appointed by the Registrar of 
     Copyrights.
       (2) Expertise of commissioners.--All members of the 
     Commission shall be individuals who have been appointed on 
     the basis of technical qualifications, professional 
     expertise, and demonstrated knowledge and shall include at 
     least 4 representatives of each of the following:
       (A) publishers of instructional materials, including of 
     textbooks, software, and other print, electronic, or digital 
     curricular materials;
       (B) elementary and secondary education, including teachers, 
     special educators, and State and local education officials or 
     administrators;
       (C) researchers in the fields of disabilities, technology, 
     and accessible media;
       (D) experts in intellectual property rights; and
       (E) advocates of children with disabilities, including 
     parents of blind, visually impaired, deaf, hearing impaired, 
     physically challenged, cognitively impaired, or learning 
     disabled, or representatives of organizations that advocate 
     for such children.
       (3) Date.--The appointment of the members of the Commission 
     shall be made not later than 60 days after the date of 
     enactment of this Act.
       (4) Period of appointment and vacancies.--Members shall be 
     appointed for the life of the Commission. Any vacancy in the 
     Commission shall not affect its powers, but shall be filled 
     in the same manner as the original appointment.
       (5) Initial meeting.--Not later than 45 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold the Commission's first meeting.
       (6) Meetings.--The Commission shall meet at the call of the 
     Chairperson.
       (7) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (8) Chairperson and vice chairperson.--The Commission shall 
     select a chairperson and vice chairperson from among the 
     members of the Commission.
       (c) Duties of the Commission.--The Commission shall study 
     and make recommendations to Congress and the Secretary 
     regarding--
       (1) the purposes of the Commission described in subsection 
     (a)(2);
       (2) priority topics for additional research;
       (3) the availability and accessibility of curricula and 
     instructional materials, including print, software, CD-ROM, 
     video, and Internet, for use in elementary schools and 
     secondary schools by children with disabilities, including--
       (A) the numbers of affected children with disabilities, by 
     grade, age, and type of disability;
       (B) the technical and other means by which such materials 
     are made accessible, such as assistive technologies, 
     electronic versions, large print, closed captioning, video 
     description, and Braille, and any conflicts between relevant 
     technical standards by which instructional materials are made 
     accessible;
       (C) the steps taken by State and local educational agencies 
     to support accessibility, including through State adoption 
     and procurement policies, the acquisition and integration of 
     assistive technology, and any State and local requirements or 
     standards;
       (D) timeliness of receipt of such materials by children 
     with disabilities; and
       (E) continued barriers to access to such materials; and
       (4) the potential and likely effects of providing 
     accessible or universally designed materials for all students 
     in elementary schools and secondary schools, with a 
     particular focus on children with disabilities, including--
       (A) an analysis of the current and potential costs to 
     develop and provide accessible instructional materials, with 
     and without specialized formats, to publishers, States, local 
     educational agencies, schools, and others, broken down by--
       (i) type of disability, including physical, sensory, and 
     cognitive disability;
       (ii) type of instructional materials, including by grade 
     and by basal and supplemental materials; and
       (iii) type of media, including print, electronic, software, 
     web-based, audio, and video; and
       (B) an analysis of the effects of any recommended 
     definitions regarding--
       (i) the availability and quality of instructional materials 
     for nondisabled students, and innovation in the development 
     and delivery of these materials;
       (ii) State learning content standards that are media-, 
     skill-, or pedagogically-based and may therefore be 
     compromised;
       (iii) prices of instructional materials and the impact of 
     the definitions on State and local budgets; and
       (iv) intellectual property rights in connection with the 
     development, distribution, and use of curriculum and 
     instructional materials.
       (d) Public Hearings.--As part of the study conducted under 
     this subsection, the Commission shall hold public hearings, 
     including through the use of the Internet or other 
     technologies, for the purposes referred to in subsection (a).
       (e) Report.--
       (1) Interim report.--Not later than 12 months after the 
     establishment of the Commission, the Commission shall provide 
     to the Secretary and Congress an interim report on the 
     Commission's activities during the Commission's first year 
     and any preliminary findings.
       (2) Final report.--Not later than 24 months after the 
     establishment of the Commission, the Commission shall submit 
     a report to the Secretary and Congress that shall contain--
       (A) recommendations determined necessary regarding 
     definitions of the terms described in subsection (a)(2)(B);
       (B) recommendations for additional research; and
       (C) a detailed statement of the findings and conclusions of 
     the Commission resulting from the study of the issues 
     identified in subsection (a)(2)(C).
       (f) Powers of the Commission.--
       (1) Authority of commission.--The Commission may hold such 
     hearings, convene and act at such times and places, take such 
     testimony, and receive such evidence, as the Commission 
     considers necessary to carry out the responsibilities of the 
     Commission.
       (2) Use of mail.--The Commission may use the United States 
     mails in the same manner and under the same conditions as 
     other departments and agencies of the Federal Government.
       (3) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.
       (4) Compensation.--Except as provided in paragraph (5), 
     each member of the Commission who is not an officer or 
     employee of the Federal Government shall serve without 
     compensation. All members of the Commission who are officers 
     or employees of the United States shall serve without 
     compensation in addition to that received for their services 
     as officers or employees of the United States.
       (5) Per diem.--The members of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (6) Employment and compensation of employees.--Except as 
     otherwise provided in this section and consistent with 
     section 3161 of title 5, United States Code, the Chairperson 
     may appoint, fix the compensation of, and terminate an

[[Page 9435]]

     executive director and such additional employees as may be 
     necessary to enable the Commission to perform the 
     Commission's duties.
       (7) Detailing of federal employees.--Any Federal Government 
     employee may be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (8) Temporary and intermittent services.--The Chairperson 
     of the Commission may procure temporary and intermittent 
     services under section 3109(b) of title 5, United States 
     Code, at rates for individuals that do not exceed the daily 
     equivalent of the annual rate of basic pay prescribed for 
     level V of the Executive Schedule under section 5316 of such 
     title.
       (g) Termination of the Commission.--The Commission shall 
     terminate on the date that is 90 days after the date on which 
     the Commission submits its final report under subsection 
     (e)(2).
       (h) Authorization of Appropriations.--
       (1) Authorization.--There are authorized to be appropriated 
     $750,000 for fiscal year 2004, and such sums as necessary for 
     fiscal year 2005 to carry out the provisions of this section.
       (2) Availability.--Any sums appropriated under the 
     authorization contained in this subsection shall remain 
     available, without fiscal year limitation, until expended.

                         TITLE V--MISCELLANEOUS

     SEC. 501. 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. 502. GAO REVIEW OF CHILD MEDICATION USAGE.

       (a) Review.--The Comptroller General shall conduct a review 
     of--
       (1) the extent to which personnel in schools actively 
     influence parents in pursuing a diagnosis of attention 
     deficit disorder and attention deficit hyperactivity 
     disorder;
       (2) the policies and procedures among public schools in 
     allowing school personnel to distribute controlled 
     substances; and
       (3) the extent to which school personnel have required a 
     child to obtain a prescription for substances covered by 
     section 202(c) of the Controlled Substances Act (21 U.S.C. 
     812(c)) to treat attention deficit disorder, attention 
     deficit hyperactivity disorder, or other attention deficit-
     related illnesses or disorders, in order to attend school or 
     be evaluated for services under the Individuals with 
     Disabilities Education Act.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall prepare 
     and submit to Congress a report that contains the results of 
     the review under subsection (a).

  Mr. KENNEDY. I move to reconsider the vote and I move to lay that 
motion on the table.
  The motion to lay on the table was agreed to.

                          ____________________